EIL Q1 profit rises 28% on higher consultancy earnings, order book at Rs 1.21 lakh crore

New Delhi: Engineers India Ltd (EIL) reported a 28 percent year-on-year (YoY) rise in standalone net profit at Rs 70.1 crore for the first quarter of FY26, supported by strong growth in consultancy revenues and margins, even as turnkey business income grew at a slower pace. Standalone total income rose 37.6 percent YoY to Rs 892.1 crore in Q1 FY26 from Rs 648.31 crore a year ago. Consultancy turnover jumped 17.8 percent YoY to Rs 408.12 crore, driven by higher domestic project execution, while turnkey turnover surged 70 percent YoY to Rs 449 crore, narrowing the revenue gap between the two segments.

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Margin expansion in consultancy, steady turnkey profits

Segment profit from consultancy climbed 30.7 percent YoY to Rs 68.2 crore, with margins at 17 percent, up from 15 percent a year earlier. Turnkey segment profit increased 17.9 percent to Rs 25 crore, with margins stable at 6 percent. Overall segment profit grew 27 percent YoY to Rs 93.2 crore.

Sequential moderation in earnings

On a sequential basis, total income fell 13.6 percent from Rs 1,033.1 crore in Q4 FY25, as both consultancy (-24.8 percent) and turnkey (-0.2 percent) revenues declined. Net profit dropped sharply from Rs 327.3 crore in the previous quarter due to the seasonal nature of project execution and a high Q4 base.

Order book at multi-year high

EIL’s order book stood at Rs 1,21,443 crore as of June 30, 2025, up 25.8 percent from a year earlier, with consultancy contracts accounting for 56 percent and turnkey for 44 percent. However, new business secured in the quarter fell 39.9 percent YoY to Rs 1,429.2 crore, reflecting lower domestic consultancy and turnkey awards compared with the year-ago period.

Overseas business gains traction

Overseas consultancy orders rose sharply during the quarter to Rs 476.5 crore, from Rs 170 crore a year ago, helping offset weaker domestic order inflows. Key wins included project management consultancy services for Saudi Arabian Chevron and Kuwait Gulf Oil Company, and select studies for ADNOC Offshore.

Annual performance trend

In FY25, EIL’s standalone net profit rose 30.3 percent to Rs 465.2 crore, supported by higher consultancy margins (30 percent vs 22 percent in FY24). The company secured record new business worth Rs 8,214.1 crore, split 56 percent turnkey and 44 percent consultancy.

Capital investments

As of June 30, EIL maintained minority stakes in multiple joint ventures, including Ramagundam Fertilizers, upstream oil and gas blocks in Gujarat, and Numaligarh Refinery Ltd, where it invested Rs 34.58 crore in Q1 against a rights issue.

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