SPML Infra Shares Fall 4% Despite Delivering 55% PAT Increase in Q4 FY26

Synopsis: Reporting a 54.8 percent jump in standalone net profit to Rs. 76 crore on 11.8 percent revenue growth for FY26, a Kolkata-based water and infrastructure EPC company has put up its strongest annual earnings in recent years three years after executing a debt restructuring agreement with the National Asset Reconstruction Company. The improvement in earnings is real, but total trade receivables (current and non-current combined) now equal roughly 63 percent of annual revenue, and debtor days have stretched to 187 the single most important metric for investors to track as execution continues.

Shares of a water infrastructure and EPC company came into focus after the board approved its standalone and consolidated audited financial results for FY26 at a meeting held on May 28, 2026, filed with BSE and NSE the same day.

With a market capitalization of Rs. 1,671.01 crore, the shares of SPML Infra were trading at Rs. 212 per share, down 3.46 percent from its previous close of Rs.219.59. It is trading at a P/E of 23.

FY26 Financial Performance

Standalone revenue from operations grew 11.8 percent to Rs. 868.46 crore in FY26 from Rs. 77,7.06 crore in FY25. Operating profit  before exceptional items and tax  rose 31.8 percent to Rs. 76.25 crore. After accounting for a reversal of current tax expense (arising from the write-off of contract assets matched by an equivalent provision write-back), standalone PAT came in at Rs. 76.25 crore, up 54.8 percent from Rs. 49.28 crore a year ago. Basic EPS for FY26 stands at Rs. 10.36. 

Q4 FY26 was the strongest quarter of the year. Standalone revenue was Rs. 290.51 crore and PAT Rs. 28.37 crore  the PAT figure boosted by a Rs. 6.77 crore tax credit arising from the contract asset write-off noted in the filing. Excluding that credit, Q4 pre-tax profit was Rs. 21.60 crore against Rs. 12.35 crore in Q4 FY25, reflecting genuine operational improvement. Consolidated figures closely mirror the standalone, as the subsidiaries (primarily Bhagalpur Electricity Distribution and SPML Utilities) contribute negligible revenue.

One disclosure in the filing deserves careful reading. During FY26, the company wrote off contract assets worth Rs. 94.58 crore  almost Rs. 95 crore  while simultaneously writing back an equal provision that had been created in an earlier year against those same assets. The net P&L impact is zero, but the substance is significant: assets that had been provisioned as doubtful have now been formally written off the books. For a company still operating under a NARCL debt restructuring framework (the Master Restructuring Agreement was executed in May 2024), this normalisation of the asset base is a step toward cleaner books. 

The debt restructuring also creates ongoing P&L complexity. Other income of Rs. 1.60 crore for FY26 represents the net of two large offsetting items: Rs. 39.68 crore in “unwinding of deferred income” from the gain on sustainable debt adoption, offset by Rs. 38.08 crore in amortisation of discounting on the restructured debt  both non-cash accounting adjustments tied to the NARCL agreement. 

Receivables

Standalone trade receivables  current and non-current combined  stood at Rs. 549.84 crore at March 2026 against annual revenue of Rs. 868.46 crore. Screener’s data shows debtor days at 187, up significantly from the prior year. Working capital days have moved from 61 to 131. For an EPC company, long receivable cycles from government clients are not unusual, but the scale of the buildup relative to revenue warrants close monitoring. The company’s five-year revenue CAGR is negative (-14.7%), and the current recovery in earnings is still fragile enough that any stalling of collections could quickly reverse the cash flow improvement. 

Standalone cash from operating activities was Rs. 70.34 crore for FY26, reasonably close to the reported PAT of Rs. 76.25 crore, a positive signal that the earnings are translating to cash. But the working capital outflow during the year (trade receivables consumed Rs. 114.16 crore in the investing/working capital cycle) was partially offset only by payables expansion. 

Business Overview

SPML Infra Limited, incorporated in 1981 and headquartered in Kolkata, is an EPC company specialising in water treatment, power transmission, waste management, and civil infrastructure projects, with a portfolio spanning over 650 projects across multiple Indian states. The company operates under a NARCL debt restructuring framework following a Master Restructuring Agreement in May 2024. 

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