EIL Q3 PAT jumps 242% on turnkey boost; consolidated profit up 219%

New Delhi: Engineers India Limited (EIL) reported a sharp improvement in third-quarter earnings for FY26, driven by a surge in turnkey project revenues and margin expansion, while nine-month performance reflected sustained execution momentum across segments. On a standalone basis, revenue from operations rose 59 percent year-on-year to Rs 1,194 crore in Q3 FY26 compared with Rs 750 crore in Q3 FY25. Profit before tax (PBT) increased 235 percent to Rs 395 crore, while profit after tax (PAT) rose 242 percent to Rs 302 crore during the quarter.

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Sequentially, standalone revenue increased from Rs 900 crore in Q2 FY26 to Rs 1,194 crore in Q3 FY26, reflecting improved project execution. PAT rose sharply from Rs 115 crore in Q2 to Rs 302 crore in Q3, indicating a significant improvement in operating leverage.

For the nine months ended December 31, 2025, standalone revenue stood at Rs 2,951 crore, registering 45 percent growth over the corresponding period last year. Profit before tax for the nine-month period was Rs 639 crore, while PAT stood at Rs 487 crore, reflecting 119 percent growth year-on-year.

Consolidated performance: JV contribution lifts quarterly profit

On a consolidated basis, revenue from operations stood at Rs 1,210 crore in Q3 FY26 compared with Rs 765 crore in Q3 FY25, reflecting growth across consultancy and turnkey businesses.

Consolidated profit attributable to owners rose 219 percent year-on-year to Rs 347 crore for the quarter ended December 2025. On a quarter-on-quarter basis, consolidated profit increased from Rs 83 crore in Q2 FY26 to Rs 347 crore in Q3 FY26.

For the nine-month period, consolidated profit stood at Rs 496 crore, up 65 percent over the corresponding period of the previous financial year.

A key differentiator between standalone and consolidated performance during the quarter was the contribution from joint ventures and associates. In Q3 FY26, EIL reported a share of profit of over Rs 41 crore from joint ventures and associates, compared with a loss in Q2 FY26.

Segment analysis: Turnkey drives margin expansion

Standalone segment revenue highlights a decisive shift in growth drivers. Turnkey project revenue rose to Rs 720 crore in Q3 FY26 from Rs 343 crore in Q3 FY25, more than doubling year-on-year. Consultancy and engineering revenue stood at Rs 474 crore in Q3 FY26 compared with Rs 407 crore in Q3 FY25.

Segment profitability showed even sharper divergence. Turnkey segment profit rose to Rs 273.69 crore in Q3 FY26 from Rs 18.92 crore in Q3 FY25. Consultancy segment profit stood at Rs 104.30 crore, broadly stable year-on-year.

The surge in turnkey profitability was supported by contract price adjustments. Upon mechanical completion of a turnkey project, an upward adjustment in contract price resulted in an increase in revenue and profit in the turnkey segment by over Rs 226 crore and Rs 213 crore respectively during the quarter and nine months ended December 31, 2025.

In addition, settlement of performance obligations in the consultancy and engineering segment resulted in a write-back of over Rs 35 crore during the period.

The company has noted that in turnkey projects, margins do not accrue uniformly during the year and segment performance is more meaningfully assessed on a full-year basis.

Margin profile and cost movement

Standalone operating margin improved sharply in Q3 FY26. Profit before tax margin expanded significantly compared with Q3 FY25, reflecting higher operating leverage and contract adjustments.

Total expenses increased to Rs 856 crore in Q3 FY26 from Rs 669 crore a year earlier, driven primarily by higher technical assistance and subcontracting expenses in line with the growth in turnkey execution.

Employee benefit expenses rose moderately year-on-year, while finance costs remained negligible, indicating a largely debt-light balance sheet.

Order book strengthens revenue visibility

EIL reported that its order book stood at Rs 12,538 crore at the end of Q3, with 60 percent from consultancy and 40 percent from turnkey projects. With the addition of new mega assignments, the order book has further grown to approximately Rs 15,670 crore as on date, marking an all-time high and providing strong revenue visibility.

Q3FY36: EIL's financial performance

EIL’s Q3 performance reflects three key themes: strong acceleration in turnkey revenues, margin expansion aided by contract adjustments, and improved consolidated profitability driven by joint venture contribution.

However, a meaningful portion of the quarter’s profitability was aided by one-time contract price adjustments in turnkey projects, suggesting that margin sustainability will depend on execution trends in subsequent quarters.

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