Deepak Builders & Engineers India Ltd Q3 FY26: ₹166 Cr Revenue, PAT Crashes 68% YoY, P/E 9.7 While Order Book ₹1,380 Cr – Hidden Infra Gem or Working Capital Trap?
Deepak Builders & Engineers India Ltd is currently trading like a company that accidentally insulted the market. The stock is down nearly 43% in three months and 47% in a year — and yet it trades below book value with a respectable ROCE above 25%. That’s not common. That’s either opportunity… or something investors are scared of.
Latest Q3 FY26 (December 2025) numbers show revenue of ₹166.38 Cr (up 27% YoY), but PAT collapsed 68% YoY to ₹5.17 Cr. OPM fell sharply to 8.99%.
So we have:
Growing revenue
Collapsing margins
Solid order book of ₹1,380 Cr
Working capital stretching like a yoga instructor
Question is: Is this a temporary margin squeeze… or a structural working capital headache?
Let’s bring out the financial microscope.
2. Introduction – From Ludhiana to Listed
Deepak Builders didn’t start as some fancy IPO baby.
It began as a proprietorship in 1984. Then partnership. Then private limited. Then public. Then listed in 2025.
Promoters: Deepak Kumar Singal and Sunita Singal. Sector: Government construction contracts. Location: Ludhiana, Punjab.
This is classic North India infra DNA.
They build hospitals, bridges, railway stations, flyovers, government buildings. Basically, if the government wants something built in Punjab or Haryana, these guys show up with a hard hat and a bid.
IPO raised ₹260 Cr, largely for:
Debt repayment
Working capital
General corporate use
And now comes the twist.
They got:
DGGI search
₹3.5 Cr voluntary deposit
SEBI administrative warning
CFO resignation
Internal auditor resignation
Bro, this isn’t a balance sheet. This is a Netflix series.
But numbers first. Drama later.
3. Business Model – WTF Do They Even Do?
They operate primarily through three verticals:
Construction Projects
Infrastructure Projects
Sale of leftover materials
Main revenue model:
EPC contracts (fixed price, cost overrun risk on them)
Item-rate contracts (paid per work done)
Major clients? Government entities.
That’s good for stability. But bad for payment cycles.
They have in-house design, procurement and machinery teams. So they don’t outsource everything like some “margin evaporator” contractors.
Order Book (June 30, 2024): ₹1,380 Cr Breakup:
66% Railways
25% Industrial
4% Hospitals
Ongoing projects include railway station redevelopment and hospital blocks.
But let me ask you something:
If government payments slow down… and your inventory days hit 312… and your working capital days jump to 243…
