SPML Infra Limited (NSE: SPMLINFRA), a leading player in India’s water and energy infrastructure sector, has reported a significant financial recovery and strategic pivot in its latest fiscal updates.
Key Financial Highlights (Q3 FY26)
- Net Profit Surge: The company reported a consolidated net profit of ₹20.34 crore, marking a 96.67% increase compared to ₹10.34 crore in the same period last year.
- Revenue Growth: Revenue from operations rose by 22.31% YoY, reaching ₹229.76 crore, driven by accelerated project execution in the water segment.
- Margin Expansion: Operating margins improved significantly to 10.79%, reflecting a shift toward higher-margin contracts and better cost discipline.
- Earnings Per Share (EPS): Basic EPS for the quarter rose to ₹2.77, up from ₹1.26 in Q3 FY25.
Debt Restructuring and Capital Infusion
- NARCL Debt Conversion: On December 31, 2025, SPML allotted 11.44 lakh equity shares to the National Asset Reconstruction Company Limited (NARCL) at ₹276 per share. This conversion of debt into equity is part of a broader resolution plan to deleverage the balance sheet.
- Promoter Infusion: The company recently raised ₹44.67 crore through the allotment of 37.67 lakh equity shares to promoter group entities, following the exercise of warrants.
- Liquidity Position: Total bank facilities were recently enhanced to ₹505 crore, supported by a ₹159 crore surety bond limit, reducing the company’s reliance on traditional cash-backed bank guarantees.
Project Pipeline and Order Book
- Order Book Strength: As of early 2026, SPML Infra maintains a robust order book of approximately ₹4,500 crore, with a long-term target of reaching ₹5,000 crore by the end of the fiscal year.
- Major Recent Wins:
- Chennai Metro Water: A ₹344.64 crore contract awarded in February 2026 for a 24×7 continuous water supply system under the AMRUT scheme.
- Rajasthan Water Supply: A ₹1,438 crore project for infrastructure development in rural and urban sectors.
- Indore City: A ₹1,073 crore order for water supply under the AMRUT 2.0 scheme.
Diversification into Green Energy
- BESS Partnership: SPML has entered a strategic 10-year agreement with US-based Energy Vault to manufacture and deploy Battery Energy Storage Systems (BESS) in India.
- Manufacturing Target: The company aims to facilitate multi-gigawatt hour (GWh) deployments, with an initial manufacturing target of 2.5 GWh at its upcoming Pune facility.
- Revenue Mix Goal: Management has set a long-term target to transition its revenue mix from 90% water to a 50-50 split between water and energy (including BESS) by 2029–2030.
Risks and Outlook
- Promoter Pledging: Despite the financial recovery, promoter pledging remains a point of observation at 25.88%.
Arbitration: The company continues to pursue outstanding arbitration claims worth over ₹4,600 crore, which remain a potential source of fut