Financial Performance Summary

Consolidated FY26 Performance:

  • Revenue from operations: ₹1,855 crores (3% YoY growth)
  • EBITDA: ₹318 crores (9% YoY growth)
  • EBITDA margin: 17.16%
  • PAT from continuing operations: ₹200 crores (2% YoY growth)
  • PAT margin: 10.77%

Consolidated Q4 FY26 Performance:

  • Revenue from operations: ₹511 crores (11% YoY decline)
  • PBT: ₹67 crores vs. ₹65 crores last year
  • PAT from continuing operations: ₹47 crores (flat YoY)
  • PAT margin: 9.11%

Standalone FY26 Performance:

  • Revenue: ₹763 crores (34% YoY decline)
  • EBITDA: ₹163 crores (19% YoY decline)
  • EBITDA margin: 21.3%
  • Net profit: ₹117 crores
  • PAT margin: 15.33%

Standalone Q4 FY26 Performance:

  • Revenue: ₹201 crores (44% YoY decline)
  • EBITDA: ₹50 crores (22% YoY decline)
  • EBITDA margin: 25.03%
  • Net profit: ₹40 crores (13% YoY decline)
  • PAT margin: 19.98%

Operational Highlights

Domestic Business Performance:

  • Product division delivered steady performance with Q4 revenues of ₹109 crores (vs. ₹108 crores YoY)
  • Project business remained subdued with Q4 revenues of ₹92 crores (vs. ₹253 crores YoY)
  • Secured large cooling water pump contracts from DVC and Deepak Chemicals
  • Healthy traction in power, industrial and water sectors

International Business Performance:

  • International revenues rose sharply to ₹1,136 crores in FY26 (vs. ₹668 crores previous year)
  • Strong momentum across Europe, MENA, Australia, Southeast Asia and Africa
  • Gruppo Aturia witnessed strong order inflows from MENA region
  • Sterling and United benefiting from sustained momentum in Australian market
  • WPIL Thailand delivered standout performance, surpassing ₹300 crores in revenue for first time
  • MISA Italy completed all legacy projects
  • Eigenbau South Africa had record performance in both revenue and profitability

Order Book Position

Total Order Book:

  • Approximately ₹6,000 crores as of May 2026
  • Project business: ₹5,000 crores
  • Product business: ₹1,000 crores

Regional Breakdown:

  • South Africa: ZAR 4 billion (approximately ₹3,100 crores)
  • Italy: ₹330 crores
  • Australia: ₹80 crores
  • India: ₹2,000 crores (including ₹500 crores O&M, ₹1,450 crores EPC)

Product Division Order Backlog:

  • ₹5,796 million at end of FY26
  • Provides healthy revenue visibility going forward

Key Contract Wins

South African Contracts:

  • PCI Africa secured large contracts from City of Cape Town for Maccasar project and Lower Umkhomazi project
  • Total South African order book of ZAR 4 billion (approximately ₹3,100 crores)
  • Execution timeframe: 3-4 years (36-48 months)
  • Commercial terms described as "excellent" with strong margins
  • Projects are high-end process-related with minimal civil work

Domestic Contracts:

  • Cooling water pump contracts from DVC and Deepak Chemicals
  • Strengthening presence in Power and Industrial segments

Jal Jeevan Mission (JJM) Update

Current Status:

  • Order backlog from JJM Phase 1: Approximately ₹1,100 crores
  • Total domestic order backlog: ₹1,400 crores (including ₹50 crores O&M)
  • Trade receivables overdue: Approximately ₹350 crores related to JJM
  • Funds yet to be released for completed work

Phase 2 Outlook:

  • Cabinet clearance received in March 2026
  • Funds being released to states (West Bengal allocated ₹2,700 crores, UP also receiving funds)
  • Expected to gain momentum by Q2 FY27
  • Total balance investment for JJM: Approximately ₹5 lakh crores to be spent within 30 months
  • Expected to drive significant pump requirements

Regional Performance Details

South Africa:

  • PCI Africa has approximately ₹1,800 crores worth of business to be executed over 4 years
  • Projects are high-end process and electromechanical with minimal civil work
  • Excellent commercial terms with quick payments (within 7 days)
  • Cash positive operations
  • Strong margin profile expected

Thailand:

  • Joint venture delivered standout performance
  • Revenue growth from ₹50 crores during COVID to ₹300 crores in FY26

Australia:

  • Strong position in mining and LNG sectors
  • Benefiting from huge investments planned in LNG

Financial Position & Capital Structure

Trade Receivables:

  • Increased from ₹820 crores in March 2025 to ₹1,184 crores in March 2026
  • Primary reason: Delayed Jal Jeevan Mission fund releases
  • ₹350 crores clear receivables overdue

Forex Impact:

  • Significant forex gains due to international operations
  • ₹139 crores of exchange difference in consolidated results
  • Beneficial diversification as rupee depreciated more than 11%

Authorized Capital:

  • Board increased authorized capital
  • Signals potential forthcoming fundraising or acquisitions
  • Focus on strategic assets at reasonable valuations

Management Commentary & Outlook

FY27 Outlook:

  • Positive outlook across both domestic and international markets
  • Expect good growth based on execution profile of contracts
  • International revenue expected to maintain 60-65% share
  • South African projects to move into engineering and execution phase in second half
  • Jal Jeevan Mission Phase 2 expected to provide fresh momentum

Margin Guidance:

  • Target EBITDA margin bandwidth: 15% to 20%
  • Expect margin enhancement going forward
  • Domestic operations achieved 21% EBITDA margin in FY26
  • International operations at 13% EBITDA margin
  • South African projects expected to have better margins than Indian projects

Growth Strategy:

  • Focus on geographical diversification
  • Exploring acquisitions in product space, particularly US market entry
  • Seeking market reach rather than product expansion
  • Supporting international operations with engineering and manufacturing resources

Other Business Updates

Rutschi Business Sale:

  • Tax provisioning made for sale proceeds
  • Appeals filed and process ongoing
  • Advisers confident of positive result
  • Expected resolution timeline: Approximately 18 months

NSE Listing:

  • Not yet applied for permanent listing
  • Some capital-related conditions need to be complied with first
  • Current status: Permitted category
  • Hope to apply soon after fundraising

Capex Plans:

  • No significant capex demand requirement
  • Some small brownfield additions needed for Indian product growth
  • Focus on capacity optimization

O&M Business:

  • Several projects transitioned to O&M phase
  • ₹530 crores O&M component in order book
  • FY27 expected to show first reasonable impact of O&M business

Participants in Conference Call

Management:

  • Mr. Prakash Agarwal - Managing Director
  • Mr. Krishna Kumar Ganeriwala - Executive Director

Moderator:

  • Mr. Abhishek Taparia - Emkay Global Financial Services Limited

Analyst Participants:

  • Ravi Naredi (Naredi Investment)
  • Deepak Purswani (Swan Investments)
  • Nikunj Sutriya (Carnelian Capital Asset Management)
  • Disha (Sapphire Capital)
  • Saket Kapoor (Kapoor Company)
  • Jainam Doshi (KRIIS PMS)
  • Balu (Parami Financial Services Private Limited)
  • Tanya Kothari (AUM Capital Markets)
  • Vinay Nadkarni (Hathway Investments Private Limited)