Engineers India Shares Get 'Buy' Upgrade From PL Capital Post Q1 Results

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PL Capital Report

We cut our FY26/27E EPS estimates by -4.4%/-1.4%, factoring in temporary disruption from the Ramagundam Fertilizer shutdown. Engineers India Ltd. reported a strong quarter with 39.5% YoY growth in revenue and Ebitda margin remaining flattish YoY to 8.3% due to unfavorable revenue mix.

Management reiterating FY26 revenue growth of ~20%, driven by its highmargin Consultancy business (~22% margins) and steady LSTK execution (~6% margins).

Temporary Q1 drag from the Ramagundam Fertilizer maintenance shutdown has been resolved, with operations normalized at ~90% utilization and full-year profitability intact.

Diversification momentum remains strong with non-oil and gas verticals scaling to 30–35% of the book and guided to 40–45% in future inflows, driven by key infra projects from data center and institutional infra etc.

International consultancy traction is accelerating, with Rs 9.6 billion YTD intake and a visible Petrochem pipeline across Abu Dhabi, Saudi, UAE, and Kuwait. EIL’s maiden ~Rs300mn MoU with NPCIL for the BSMR project marks a strategic entry into nuclear engineering, strengthening credentials and unlocking long-term opportunities in India’s energy transition.

The stock is trading at a P/E of 18.7x/15.2x on FY26/27E core EPS. We upgrade our rating from ‘Accumulate’ to ‘Buy’ given recent sharp correction in stock price and value the Consultancy/Turnkey segments at a PE of 22x/10x Mar’27E (same as earlier) arriving at a revised SoTP-derived target price of Rs 245 (Rs 250 earlier).

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