PSP Projects soars 16%, stock hits new high on heavy volumes

Till 01:24 PM; a combined 4.65 million equity shares representing 11.73 per cent of total equity of PSP Projects changed hands on the NSE and BSE.

Share price of PSP Projects today

 

Shares of PSP Projects hit a record high of ₹920.35, soaring 16 per cent on the BSE in Monday’s intra-day trade amid heavy volumes. The stock price of the civil construction company surpassed its previous high of ₹842.50 touched on July 17, 2025.

 

In the past five trading days, the market price of PSP Projects has rallied 22 per cent after the company announced its September quarter (Q2FY26) results.

 

At 01:24 PM; PSP Projects was quoting 15.5 per cent higher at ₹914.30, as compared to 0.54 per cent rise in the BSE Sensex. A combined 4.65 million equity shares representing 11.73 per cent of total equity of PSP Projects changed hands on the NSE and BSE.

 

 

PSP Projects’ Q2 results

 

PSP Projects is a construction company offering diversified range of construction and allied services across industrial, institutional, government, government residential and residential projects. The company is an integrated Engineering, Procurement, and Construction (EPC) company across construction value chain from Design, Construction, Mechanical, Electrical, Plumbing (MEP), Interior, operation & maintenance (O&M) Services.

 

In November 2024, the company entered into an agreement with Adani Infra (India) to acquire up to 30.07 per cent stake from the existing promoters.

 

PSP Projects has an outstanding order book of ₹9,883 crore, a year-on-year (YoY) growth of 51 per cent. Of the current outstanding order book, Adani projects comprise 56 per cent and balance are non-Adani projects. As on September 30, 2025, the order inflow reported was ₹4,118 crore (excluding GST).

 

In July to September 2025 quarter (Q2FY26); PSP Projects reported revenue of ₹694 crore from operations for the quarter, reflecting a YoY growth of 20 per cent and quarter-over-quarter (QoQ) growth of 35 per cent.

 

Outlook FY25-26 – PSP Projects

 

PSP Projects aims to accelerate its digital transformation journey and elevate its operational maturity by embracing cutting-edge technologies. The strategic focus is on becoming a truly data-driven enterprise by leveraging AI/ML and the integrated Enterprise Resource Planning (ERP) platform (SAP S/4HANA) to unlock predictive insights, streamline decision-making, and ensure seamless project control across Civil, MEP, and precast manufacturing functions.

 

India’s construction industry is projected to grow by 11.2 per cent, reaching ₹25,310 billion by 2025. This growth momentum is expected to persist, with the sector projected to expand at a compound annual growth rate (CAGR) of 8.8 per cent between 2025 and 2029, reaching an estimated value of ₹39.10 trillion by 2029, the company said in its FY25 annual report.

 

The government has announced multiple infrastructure initiatives such across Jammu and Kashmir, Tamil Nadu and Uttar Pradesh, reinforcing its commitment towards sustained infrastructure growth across India. 

 

Choice Institutional Equities view on PSP Projects

 

With the entry of Adani Group entity (Adani Infra) as a promoter shareholder, analysts at Choice Institutional Equities believe there is better order book visibility. However, in this SPA & Open Offer deal, margin compression is likely to be seen ahead. PSP Projects management has indicated that business from the Adani Group will be executed on a cost-plus basis. In the brokerage view, Adani Group is a cost champion and would strive to get the best deal for their shareholders, which implies potential pressure on PSP Projects’ margin. 

 

In this kind of a structure, the lucrative upside optionality in PSP Projects stock is automatically traded off for downside protection. “In our view, this now makes the stock behave more like a fixed income instrument. We would consider reviewing our outlook on PSP Projects with a more constructive lens if there is credible evidence that the company receives higher volumes of better-margin business from Adani as compared to other opportunities,” analysts said.