SPML Infra Shares Surge as Company Eyes 50% Growth in FY26
SPML Infra has caught the market’s attention after its management shared strong growth expectations for the next financial year. The company is aiming for a 50% increase in both revenue and net profit for FY26, driven by a healthy order book and its strategic entry into the fast-growing battery energy storage space.
Stock Rises on Positive Growth Outlook
SPML Infra’s stock price jumped over 10% after the company announced its aggressive growth plan. The shares hit an intraday high of ₹209.65, eventually closing at ₹205.45, compared to the previous day’s close of ₹190.45. This surge in stock price also pushed the company’s market capitalization to approximately ₹1,460 crore.
The price rally was supported by strong trading volumes, reflecting rising investor confidence in the company’s future prospects.
Strong Order Book Provides Revenue Visibility
The company’s management highlighted that SPML Infra currently has an active order book of ₹3,000 crore. This solid backlog will serve as a key revenue driver in the coming quarters, giving the company a solid base to achieve its projected growth.
With orders coming from both traditional infrastructure and new sectors, the company is well-positioned to maintain steady cash flows and improve profitability.
Margin Expansion a Top Priority
SPML Infra is not just focused on growing revenue—it also aims to significantly improve its profit margins. Management shared that while older projects have operating margins of around 4-5%, newer projects are expected to deliver margins in the 10-15% range.
A major contribution to this improvement is expected from the company’s push into the Battery Energy Storage Systems (BESS) market, where higher margins of over 15% are achievable.
Entering the Energy Storage Sector
SPML Infra is expanding its business by stepping into the promising battery energy storage sector, which is gaining rapid importance as part of India’s renewable energy transition.
The company has outlined an investment of ₹175 crore in this sector, which will be deployed in multiple stages. Importantly, the entire investment will be funded by promoters, reducing the burden on the company’s balance sheet.
To enhance its capabilities, SPML Infra recently secured advanced battery storage technology from Energy Vault for ₹33 crore (approximately $4 million). This acquisition is expected to give SPML Infra a competitive edge in this emerging market.
Strong Position in Water Infrastructure
While diversifying into energy storage, SPML Infra continues to solidify its leadership in the water management sector. Over time, SPML Infra has successfully delivered significant projects for notable clients such as the Delhi Jal Board, Jal Jeevan Mission, the National Mission for Clean Ganga, PHED Rajasthan, and others.
The company remains committed to securing large-scale water projects, with management expecting to bid for contracts worth ₹3,000–₹5,000 crore every year.
Aggressive Bidding Plans
SPML Infra is actively pursuing new project opportunities. The company’s current bidding pipeline is valued at over ₹9,000 crore. Of this, management is aiming to win ₹1,500–₹2,000 crore worth of projects specifically in the battery energy storage space.
This aggressive approach highlights the company’s ambition to grow quickly and diversify its revenue streams across high-growth sectors.
Recent Financial Performance
In the fourth quarter of FY25, SPML Infra reported revenue of ₹189 crore, which was lower than ₹461 crore in the same quarter of the previous year. However, the company posted a net profit of ₹12 crore in Q4 FY25, a strong recovery from the ₹4 crore loss reported in Q4 FY24.
SPML Infra maintains a solid financial position, reflected in its debt-to-equity ratio of 0.48, which suggests the company is operating with manageable debt levels. SPML Infra has reported a Return on Capital Employed (ROCE) of 8.9% and a Return on Equity (ROE) of 7.8%, indicating consistent and stable returns.
Financial Discipline in Focus
SPML Infra’s leadership has emphasized the importance of maintaining strict financial discipline. The company is committed to improving cash flows, ensuring timely project execution, and making efficient use of capital. These efforts will be essential to support its growth plans while keeping financial risks under control.
Key Points to Track
Investors should watch the following:
Achieving success in securing fresh contracts from the ₹9,000 crore worth of projects currently under bidding.
Progress in executing the ₹3,000 crore order book on time.
Expansion in the energy storage business.
Improvement in EBITDA margins.
Effective management of debt and working capital.
Conclusion
SPML Infra is aiming for a transformative year ahead. Backed by a solid project pipeline, expansion into energy storage, and a clear focus on profitability, the company is positioned for meaningful growth. If SPML Infra can deliver on its execution plans and win new contracts as expected, it could deliver substantial gains for investors in the coming quarters.
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