1. At a Glance – Blink and You’ll Miss the Punch
PSP Projects is that overachieving civil contractor who topped the class, got a trophy for “Fastest Growing,” and then casually invited Adani to sit on the board. Market cap sits around ₹3,032 crore, the stock trades near ₹765, and the valuation screams 116x P/E—which is either confidence or caffeine overdose, depending on your temperament. Q3 FY26 numbers show ₹771 crore revenue with ₹16.1 crore PAT, a wild 164% YoY profit jump, while ROCE has cooled to 8.7% and ROE to 5.4%. The order book stands tall at ₹4,443 crore, and that’s before the Adani pipeline gossip turns into hard contracts. Short-term returns have been grumpy, long-term returns… let’s say “educational.” Curious already? Good. You should be.
2. Introduction – From Gujarat’s Darling to National Headliner
Founded in August 2008, PSP Projects didn’t come from old PSU corridors or colonial-era engineering legacies. It came from Gujarat’s competitive construction ecosystem—where deadlines are sacred and margins are fought like IPL playoffs. Promoter Prahalad S. Patel brought three decades of experience, built a reputation for execution-heavy institutional projects, and scaled patiently. By Q3 FY24, PSP had 219 completed projects and 49 under execution.
Then came the moment that changed dinner-table conversations in Dalal Street homes: Adani Infra entered the chat. A 34.41% stake, joint control, board changes, amended AOA, and suddenly PSP wasn’t just a fast-growing contractor—it became a strategic satellite in India’s largest infrastructure galaxy. Is this the beginning of hypergrowth or hyper-dependence? Hold that thought.
3. Business Model – WTF Do They Even Do?
PSP is a pure-play EPC and construction services company with
a diversified project mix. Translation: they don’t just build buildings; they manage the entire headache.
Core services include:
- Engineering & Design
- Procurement
- Construction & Civil Works
- MEP services
- Operations & Maintenance
- Development & Innovation
They execute industrial, institutional, government, government residential, and residential projects. No fancy toll roads, no annuity BOT drama—just good old concrete, steel, hospitals, colleges, housing, and factories.
A big differentiator is the precast facility commissioned in Gujarat (Dec 2021). Precast means faster execution, better quality control, and less labour drama—music to EPC margins. PSP also dabbles in two mid-scale real estate projects in the USA via subsidiaries, but let’s be honest—that’s pocket change compared to Indian EPC ambitions.
4. Financials Overview – Numbers That Deserve a Drumroll
Annualised EPS Rule Applied:
Q3 EPS = average of Q1, Q2, Q3 × 4
Quarterly Comparison Table (₹ Crore)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 771 | 623 | 694 | 23.8% | 11.1% |
| EBITDA | 52 | 35 | 48 | 48.6% | 8.3% |
| PAT | 16 | 6 | 15 | 164% | 6.7% |
| EPS (₹) | 4.05 | 1.53 | 3.76 | 164% | 7.7% |
Witty Take: Revenue is jogging, profits are sprinting, and margins are… still catching their breath.
5. Valuation Discussion – Expensive or Just Confident?
P/E Method:
- TTM EPS ≈ ₹9.1
- CMP ₹765 → P/E
