SPML Infra Ltd Q2 FY26 – The Comeback Kid of Civil Infra Tries to Rebuild Its Mojo, One Water Pipeline at a Time

1. At a Glance

SPML Infra Ltd (BSE: 500402, NSE: SPMLINFRA) has been around longer than many of its current engineers. Incorporated in 1981, this infrastructure veteran has weathered everything from delayed tenders to debt pile-ups — and yet, it still refuses to die. With amarket cap of ₹1,428 croreand acurrent price of ₹198, SPML looks like that battered construction worker who’s suddenly found new contracts, new management, and maybe — just maybe — a new lease of life.

The company’s latest quarter (Q2 FY26) clocked₹188 crore in revenueand₹15 crore in PAT, marking a 15% YoY rise in profit even as sales dipped marginally by 0.43%. Not bad for a firm whose total debt once looked taller than its cranes. But SPML’s magic trick this time isn’t just project wins — it’s the ongoing debt-to-equity surgery, with freshpreferential allotmentsand tie-ups that look like a Bollywood comeback montage.

If you thought infrastructure firms are dull, SPML is here to prove that civil engineering can be dramatic, debt-ridden, and somehow still hilarious.

2. Introduction

Let’s start with a confession — SPML Infra has been the poster child of “so near yet so far” for decades. One quarter it’s bagging multi-crore water projects; the next, it’s negotiating with lenders over settlement terms. TheSethi family, long at the helm, has seen this company through the golden era of India’s infra boom and the equally golden era of NPAs.

Fast forward to 2025, and SPML Infra is trying to reinvent itself.New management,fresh capital, andgovernment contracts worth over ₹2,800 crorehave pumped fresh blood into the system. After years of watching L&T and KEC walk away with the spotlight, SPML seems to have dusted off its hard hat and returned to work — quite literally — with renewed vigor.

But it’s not all glory. Despite profit growth of195% YoY, the company’s sales have fallen35%on a trailing twelve-month basis. It’s like they’re earning more by doing less — which, let’s be honest, is the dream job of every Indian employee. And with26.5% of promoter shares pledged, it’s hard to decide whether to cheer the turnaround or keep popcorn ready for the next episode of “Debt Diaries.”

Still, SPML has survived everything from arbitration losses to regulatory blows. So yes — it deserves at least a sarcastic salute.

3. Business Model – WTF Do They Even Do?

If you think SPML builds fancy airports or highways, think again. This company’s real playground iswater,power, andwaste— basically, everything the average citizen ignores until it stops working.

Their business is 95%Construction and EPC Contracts, about 2%Operation & Maintenance, and 3%Interest income(usually from arbitration awards — the infra sector’s version of cashback). SPML works with major government clients likePHED Rajasthan,Bihar State Power,NTPC, andMunicipal Corporation of Delhi. If you’ve ever seen a half-dug road with workers sipping chai, chances are SPML had something to do with it.

Projects range fromwater supply and sewage treatmenttopower transmissionandwaste management. The best part? They don’t just build — they maintain the headache for 10 years after. Imagine constructing a water project and then spending the next decade ensuring it doesn’t leak — that’s SPML’s brand of masochism.

The company’s recent wins include a₹1,438 crore JV in Bharatpur (Rajasthan)and a₹1,073 crore AMRUT 2.0 Indore water project, both with long-term O&M contracts. These are big deals in a space where tenders often arrive slower than monsoon trains.

So yes, SPML Infra is the country’s plumber, electrician, and garbage collector rolled into one — except with balance sheets.

4. Financials Overview

At ₹6.87 annualized EPS, theP/E stands at 29.1x, which is high for a