SPML Infra Share Analysis: SPML 2.0: The Quiet Comeback Is Getting Loud

SPML Infra (Mcap: 1,599 Cr) isn’t a new name in India’s infrastructure space. Founded back in 1981 and headquartered in Kolkata, the company has spent over four decades quietly building critical infrastructure across the country. With 700+ projects executed, it has worked closely with state governments, urban bodies, and PSUs making it a well-entrenched player.

What’s interesting today, though, is not just its past but how the company is evolving.

Financials:

For FY26 (ending March 2026), the company delivered revenue growth of 12% to ₹868 crore, while EBITDA surged an impressive 37% to ₹86 crore with margin expansion of 185bps to 10%, reflecting strong operating leverage kicking in. The bottom line tells an even more compelling story — PAT more than doubled from ₹49 crore in FY25 to ₹76 crore in FY26, with PAT margins expanding 244bps to 9%.

On the business momentum front, the outstanding orderbook stands robust at ₹5,616 crore, backed by an active bid pipeline of ₹4,000–₹5,000 crore, providing strong revenue visibility for the years ahead.

The balance sheet too is in a far healthier shape — Net Debt-to-Equity has declined further to a comfortable 0.4x, and ROE has improved from 6% in FY25 to 8% in FY26. On the debt resolution side, the outstanding NARCL debt now stands at ₹381 crore, which the company plans to fully extinguish through claims and arbitration awards worth over ₹2,000 crore in the next two years — making the path to a truly debt-free balance sheet increasingly credible.

Why SPML Infra deserves your attention:

NTPC Order:

The company has won 1,128 Cr order for 1,000Mwh from NTPC a defining moment in the company’s transition into energy storage. Single largest order win of this scale in BESS till date in the country. We can say that a 40-year-old water EPC company is becoming one of India's most serious BESS players. The order has to be executed in 18 months and execution will begin from June,2026.

SPML moving swiftly in BESS:

With the debt sorted and profitability returning, management is deploying the new capital into battery energy storage manufacturing. The board hiked capex from ₹176.44 cr to ₹238.43 cr (+35%) to fund 2.5 GWh → 5 GWh BESS expansion at a 99,000 sqm plot at Supa-Parner MIDC, Maharashtra — plus a 600-unit-per-year container manufacturing line. Phase 1 (2.5 GWh) is targeted for Q1 FY27, full 5 GWh by FY28. Capex being revised upward 14 months into the program signals the order book is materializing. The strategic logic: BESS integration runs 12-18% margins vs 5-8% for water EPC, working capital cycles are shorter (PSU clients like NTPC pay faster than state governments), and the container line should create recurring revenue beyond project EPC. SPML is going manufacturer + integrator + EPC.

SPML Infra key beneficiary in Water and Renewable Sector:

Union Budget FY27: ₹12.2 lakh crore capex allocation;₹67,670 crores for Jal Jeevan Mission 2.0 (extended to December 2028); ₹1,09,029 crores for energy sector

BESS market to grow from ~$2 billion (2026) to ~$8.6 billion (2031) at 33%+ CAGR; India to need 236 GWh BESS by 2031–32

 Jal Jeevan Mission payments normalising; AMRUT, NABARD, World Bank funded projects unaffected

SPML Infrai is projecting to bid and looking for opportunities in Ken-Betwa River linking (MP), PKC (MP), Wainganga-Nalganga (Maharashtra), river linking in UP

Guidance:

SPML Infra projects ~20%-25% growth in both topline and bottomline for the current year, with momentum expected to continue. The company is targeting new orders worth 4,000-5,000 crore annually, with an execution share of 2,500-3,000 crore. BESS capacity expansion to 5 gigawatts is planned, with operations commencing by June 2026. Management expects to achieve a 50-50 revenue mix between water and power/BESS by 2029-30.

Valuations:

SPML is currently trading at PE(TTM) of 25-29x vs sector PE of 20x-30x, hence modestly valued as compared to peers. EV/EBITDA: ~14x — reasonable for a company delivering 37% EBITDA growth with a ₹5,600 crore orderbook and BESS optionality yet to be priced in. At current valuations, the market is yet to fully price in the BESS transformation — the NTPC order alone represents ~65% of current market cap, making the risk-reward compelling for investors with a 2–3 year horizon.