Patel Engineering Limited (PATELENG) AI Stock Analysis

• Market Cap: ₹27.83B
• Dividend Yield: N/A
• Average Volume (3M): 274.76K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.44
• Revenue Growth: 12.37%
• EPS Growth: -22.25%
• Country: IN
• Employees: 4,580
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.81
• Shares Outstanding: 992,141,900
• 10 Day Avg. Volume: 172,937
• 30 Day Avg. Volume: 274,758
• PEG Ratio: -0.80
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 12.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹45.00
• Price Target Upside: 56.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹32.00 ▲(11.03% Upside)

Overall score is driven mainly by solid financial performance (strong revenue growth and generally healthy cash generation). This is partially offset by mixed technical signals (negative MACD and trading below key longer-term moving averages). Valuation is supportive due to a low P/E.

Positive Factors

Multi-year Revenue Growth

Sustained revenue growth over multiple years reflects expanding scale and successful contract wins. Higher top-line scale improves bargaining power, supports fixed-cost absorption, and enables bidding for larger infrastructure projects, strengthening medium-term growth durability.

Strong Operating Cash Flow

Consistently strong operating cash generation and positive free cash flow support funding of working capital, capex and debt servicing without relying on equity issuance. This cash resilience underpins sustainable operations and capacity to pursue new contracts.

Established Infrastructure Contracting Model

A long-established model focused on government and large corporate infrastructure contracts provides stable demand, strong client relationships and specialized execution capabilities. This entrenched positioning and sector expertise are durable competitive advantages in construction.

Negative Factors

Net Profit Margin Volatility

Volatile net margins indicate uneven project profitability and cost control across cycles. For a fixed-price/large-contract business, margin swings reduce earnings predictability, weaken free-cash-flow visibility and increase execution risk on future multi-year projects.

Moderate Financial Leverage

A moderate but rising leverage profile elevates refinancing and interest-rate exposure in a cyclical industry. Higher debt can constrain bidding flexibility, increase breakeven pressure on projects, and reduce the balance sheet buffer against delayed payments or cost overruns.

Slowing Free Cash Flow Growth

A slowdown in free-cash-flow growth limits internal funding for new tenders, capex and deleveraging. Persistently weaker FCF growth can force greater reliance on external financing, reducing financial agility and raising vulnerability to project timing or payment delays.

Patel Engineering Limited Business Overview & Revenue Model

Company Description

Patel Engineering Limited, together with its subsidiaries, provides infrastructure and construction services in India and internationally. It undertakes hydro-power and transport projects, water works, urban structures, and micro tunnelling projects; and residential and commercial real estate projects. The company was incorporated in 1949 and is based in Mumbai, India.

How the Company Makes Money

Patel Engineering Limited generates revenue primarily through the execution of large infrastructure contracts awarded by government agencies, public sector undertakings, and private corporations. The company earns money by bidding for and winning contracts related to construction and engineering projects, which include the building of dams, roads, and urban infrastructure. Key revenue streams include fixed-price contracts, where income is derived from the completion of specific project milestones, and cost-plus contracts, where the company is reimbursed for its costs plus a margin. Additionally, PATELENG benefits from strategic partnerships with governmental and non-governmental organizations that help secure funding and increase project opportunities. The company's focus on sustainable engineering practices and innovative construction techniques also positions it favorably for future contracts, particularly as infrastructure needs evolve.

Patel Engineering Limited Financial Statement Overview

Summary

Strong multi-year revenue growth and improving gross margins support the outlook, while net profit margin volatility, moderate leverage, and slowing free-cash-flow growth temper the score.

Income Statement

Patel Engineering Limited has shown a strong revenue growth rate with an upward trajectory over the years, moving from INR 17,842 million in 2021 to INR 50,934 million in 2025. The gross profit margin has also improved, supporting profitability. However, the net profit margin experienced fluctuations, indicating some variability in cost management or other expenses.

Balance Sheet

The company's balance sheet reflects stability with a manageable debt-to-equity ratio, albeit with a slight increase in total debt. The return on equity has been positive, indicating efficient use of shareholders' capital. Nonetheless, the equity ratio indicates a moderate level of financial leverage, which could pose risks if not managed well.

Cash Flow

Cash flow analysis reveals strong operating cash flows, enhancing liquidity. The company has maintained positive free cash flow, which is crucial for funding operations and growth. Despite a decrease in free cash flow growth in recent years, the operating cash flow to net income ratio remains robust, highlighting efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	52.25B	50.93B	45.44B	38.91B	33.80B	19.95B
Gross Profit	13.59B	13.99B	12.52B	6.35B	9.36B	4.92B
EBITDA	8.17B	7.26B	7.96B	6.76B	6.13B	1.26B
Net Income	2.74B	2.48B	2.90B	1.83B	720.98M	-2.91B
Balance Sheet
Total Assets	0.00	95.80B	89.96B	87.50B	85.10B	80.87B
Cash, Cash Equivalents and Short-Term Investments	5.16B	5.16B	3.39B	4.40B	2.62B	1.96B
Total Debt	0.00	16.15B	19.10B	17.70B	22.92B	22.92B
Total Liabilities	-37.77B	58.03B	58.34B	57.74B	60.55B	57.06B
Stockholders Equity	37.77B	37.85B	31.54B	28.88B	23.84B	23.20B
Cash Flow
Free Cash Flow	0.00	2.73B	5.29B	5.09B	3.56B	2.55B
Operating Cash Flow	0.00	3.63B	6.88B	6.93B	5.37B	3.89B
Investing Cash Flow	0.00	-148.25M	-1.32B	-2.17B	-1.44B	68.79M
Financing Cash Flow	0.00	-2.83B	-4.29B	-2.10B	-3.40B	-3.11B

Patel Engineering Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PATELENG, the sentiment is Neutral. The current price of 28.82 is above the 20-day moving average (MA) of 28.37, below the 50-day MA of 29.96, and below the 200-day MA of 36.95, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 71.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PATELENG.

Patel Engineering Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNRCON	74 Outperform	₹43.44B	9.24	―	0.16%	-42.73%	-44.36%
PATELENG	66 Neutral	₹27.83B	9.58	―	―	12.37%	-22.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DBL	60 Neutral	₹75.54B	10.37	―	0.21%	-13.57%	40.24%
HGINFRA	60 Neutral	₹43.87B	10.62	―	0.25%	-8.92%	-22.83%
HCC	45 Neutral	₹51.97B	28.41	―	―	-31.50%	-74.38%

Patel Engineering Limited Corporate Events

Patel Engineering Closes Trading Window Ahead of Q3 FY26 Results

Patel Engineering Limited has announced the closure of its trading window for company securities for all insiders, including directors, designated persons under its insider trading code, and their immediate relatives. The window will remain closed from January 1, 2026 until 48 hours after the declaration of the unaudited financial results for the quarter and nine months ended December 31, 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and related stock exchange circulars, underscoring the company’s compliance with fair disclosure and governance norms for market participants.

Patel Engineering Announces Rights Issue to Raise ₹3,989.67 Million

Patel Engineering Limited has announced a rights issue of equity shares, offering 147,765,820 new shares at a price of ₹27 each, to raise approximately ₹3,989.67 million. This strategic move aims to strengthen the company’s capital base, potentially enhancing its market position and providing additional resources for future projects, thereby impacting stakeholders positively.

Patel Engineering Announces ₹3,989.67 Million Rights Issue

Patel Engineering Limited has announced the approval of a rights issue to raise up to ₹3,989.67 million by issuing fully paid-up equity shares. This move is aimed at strengthening the company’s financial position and supporting its ongoing projects. The rights issue will offer 14,77,65,820 equity shares at a price of ₹27 each, with a record date set for December 4, 2025. This strategic financial decision is expected to enhance the company’s market positioning and provide existing shareholders with an opportunity to increase their stake.

Patel Engineering Announces ₹5,000 Million Rights Issue

Patel Engineering Limited announced the approval of a rights issue to raise up to ₹5,000 million through the issuance of fully paid-up equity shares. The rights issue, priced at ₹27 per share, aims to strengthen the company’s financial position and support its growth initiatives, with a record date set for December 4, 2025. This strategic move is expected to enhance the company’s capital structure and provide existing shareholders with an opportunity to increase their stake.