We interacted with the management of Engineers India (EIL) to discuss the company’s financial and operational performance, expansion into new geographies, and growth outlook. EIL continues to strengthen its margin profile by strategically lifting the share of high-value consultancy (targeting 50-55% of order intake) while being selective in executing lower margin LSTK projects. Diversification into non-O&G continues to scale with clear focus on niche and engineering-intensive infra projects such as airports, data center and institutional infra. Overseas momentum remains strong with good traction for hydrocarbon consultancy projects across the Middle East and Africa. Stabilization of RFP and NRL assets is expected to generate strong cash flow by FY27, supporting the mandated 30% dividend payout. With a healthy domestic hydrocarbon capex cycle, expanding consultancy intensity, and strengthening overseas footprint, EIL remains well positioned for sustained, multi-year growth. The stock is currently trading at PE of 15.1x/12.7x on FY27/28E.
OutlookWe reiterate our ‘BUY’ rating valuing the Consultancy/Turnkey segment at PE of 22x/10x Sep’27E (same as earlier) arriving at SoTP-derived TP of Rs255 (same as earlier).
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