Patel Engineering Ltd has reported a sharp decline in net profit, with earnings falling 73% year-on-year in Q4 FY25, primarily due to higher provisions and rising expenses.
Financial Performance Overview
The company’s net profit dropped to ₹34.7 crore, compared to ₹140.9 crore in Q4 FY24. However, total income surged 19% YoY, reaching ₹1,637.2 crore, up from ₹1,374.3 crore in the previous year.
Key Factors Behind Profit Decline
Patel Engineering attributed the decline to exceptional items worth ₹87.1 crore, including impairment provisions for investments and loans. Additionally, expenses rose to ₹1,498.3 crore, marking a 22% increase YoY.
Revenue Growth and Order Book Strength
Despite the profit drop, Patel Engineering achieved a record revenue milestone, surpassing ₹5,000 crore for the first time. The company maintains a healthy order book of ₹15,218 crore, with an additional ₹2,500 crore in new orders.
Stock Performance and Market Sentiment
Following the earnings announcement, Patel Engineering’s shares declined 5.87%, trading at ₹42 per share on the BSE.
Future Outlook
Managing Director Kavita Shirvaikar expressed optimism, citing government initiatives in renewable energy and infrastructure as key growth drivers. Patel Engineering remains focused on hydropower, tunneling, and irrigation projects, reinforcing its long-term expansion strategy.
With strong revenue growth and a robust order pipeline, Patel Engineering aims to navigate cost pressures while sustaining operational efficiency.
