Patel Engineering shares surge 6% on strong Q2, debt reduction

Patel Engineering Ltd

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26 Aug, 2025 12:21

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Shares of Patel Engineering jumped over 6 percent on strong Q2FY25 earnings. The company posted a consolidated net profit of Rs 80 crore, marking a robust 151 percent year-on-year increase. Consolidated revenue for the quarter rose 15 percent year-on-year to Rs 1,174.3 crore.

Around 3 PM, Patel Engineering shares traded 3 percent higher at Rs 50. The stock has declined 22 percent year-to-date, underperforming the Nifty 50, which rose 9 percent over the same period.

Operating EBITDA for Q2FY25 reached Rs 116.2 crore, up 15.8 percent from Rs 140 crore a year earlier. The EBITDA margin held steady at 13.8 percent, a slight improvement from 13.7 percent in Q2FY24.

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The company has also reduced its debt significantly, with consolidated gross debt down to Rs 1,437.7 crore as of September 30, from Rs 1,885.5 crore as of March 31. Earnings per share (EPS) nearly doubled, reaching 0.87 for the quarter, compared to 0.46 in Q2FY24.

"Our performance in Q2FY25 highlights continued growth and operational efficiency, with revenue increasing by 14.98 percent and significant gains in profitability, despite it being a monsoon period," said Kavita Shirvaikar, MD of Patel Engineering. "Looking ahead, we remain focused on enhancing our operational capabilities, expanding our project portfolio, and driving innovation in our sector."

CFO of the company, Rahul Agrawal, said, "The quarter has shown substantial financial strength, with improvements in both EBITDA and net profit. This growth reflects our disciplined approach to cost and debt
management. We have maintained a strong balance sheet, which provides us with the flexibility to invest in high potential projects and pursue growth opportunities as they arise."

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