Q1 2027 SPML Infra Ltd Earnings Call Transcript
Key Points
- Revenue grew 74% YoY to INR286 crore, with EBITDA up 81% and PAT up 87%, reflecting strong execution of new orders.
- Order book stands at approximately INR5,100 crore, with improved quality as only INR1,251 crore relates to legacy projects and the rest carries expected operating margins of 10% or higher.
- BESS manufacturing facility at SupaMIDC, Pune is fully ready for phase 1 (2.5 GW), with IEC/UL certifications underway and NTPC order expected to contribute INR200-300 crore in Q4 FY27.
- Balance sheet strengthened significantly: net worth doubled to over INR1,000 crore, debt-to-equity improved from 1.1x to 0.4x, and credit ratings upgraded to BBB (Stable) by ICRA and CRISIL.
- Strong pipeline of 134 upcoming projects worth ~INR98,725 crore across 11 states, with water infrastructure as a key growth driver, and the company is confident of surpassing INR5,000 crore order intake guidance for FY27.
- Legacy debt reduced by INR325 crore out of INR700 crore, with the remaining INR375 crore fully backed by an arbitration award of ~INR678 crore, reducing financial risk.
- Management maintains guidance of over 25% growth in revenue and profitability for FY27, with no identified constraints to achieving this target.
- Strategic investments in BESS and technology partnership with Energy Vault provide a competitive edge as an early mover in grid-scale energy storage under Make in India.
- Revenue remained largely flat on a QoQ basis, indicating potential execution slowdown or seasonality, though management attributes it to design approval timelines.
- PAT declined 20% QoQ due to a one-time tax reversal in Q4 FY26, which may raise concerns about earnings consistency.
- BESS revenue is contingent on NTPC design approvals, which are expected only by December, and any delay could push revenue to FY28.
- The company still has legacy orders of INR1,251 crore, which may carry lower margins and execution risks, though management expects to complete them by FY29.
- High dependence on government-funded projects (e.g., Jal Jeevan Mission, AMRUT) exposes the company to policy changes and payment delays, despite escrow mechanisms.
- BESS cell imports from China are subject to currency fluctuations and supply chain risks, though the company uses price variation clauses to mitigate.
- The company's growth is heavily reliant on winning new orders in a competitive bidding environment, with no guarantee of maintaining margins above 10% in all cases.
- Despite improved liquidity, the company still has a significant arbitration claims portfolio (INR4,526 crore) with only ~40% expected to convert to awards, indicating potential legal and recovery uncertainties.
Ladies and gentlemen, good day. And welcome to SPML Infra Limited Q1 FY27 earnings conference call, hosted by Arihant Capital Markets Limited.
(Operator Instructions) Please note that this conference is being recorded.
I now hand over the conference to Mr. Rohan Baranwal from Arihant Capital Markets Limited. Thank you and over to you, sir.
Hello, everyone. A very good afternoon and welcome to SPML Infra Limited's quarter-one FY27 earnings conference call, hosted by Arihant Capital.
From the senior management, we have with us on the call today, Mr. Manoj Digga, Executive Director and CFO of the company; Mr. Malay Chakraborti, EVP Projects; Mr. Samir Patel, Chief Operating & Technical Officer, BESS; and Mr. Arun Agarwal, Vice President, Finance & Accounts.
Before we begin the earnings call, we must remind you that the discussions on today's call may include certain forward-looking statements and must be, therefore, moved in conjunction with the
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