Strengths
- Historic Backlog: Record ₹7.33 trillion order book provides over 36 months of revenue visibility.
- Recurring PAT Growth: 31% jump in core profitability highlights strong operational execution.
- Order Inflow Momentum: Record ₹1.36 lakh crore quarterly inflow exceeded market estimates by over 30%.
Weaknesses
- Exceptional Charges: Vulnerability to regulatory shifts, as seen in the ₹1,191 crore labor code provision.
- Working Capital: Large-scale EPC projects continue to require heavy capital commitment.
- IT Sector Drag: Slower growth in software-led subsidiaries due to global tech spending rationalization.
Opportunities
- Energy Transition: Growing footprint in Green Hydrogen and Offshore Wind projects.
- Domestic Capex: Anticipated policy thrust in the upcoming Union Budget for manufacturing and digital infrastructure.
- Defense Indigenization: Expanding domestic defense manufacturing pipeline under “Atmanirbhar Bharat.”
Threats
- Geopolitical Conflict: High concentration of international orders in the Middle East poses a regional risk.
- Tariff Pressures: Global trade volatility impacting the cost of imported raw materials and high-tech components.
- Labor Costs: Potential for further wage inflation and compliance costs under new statutory frameworks.