VMPL
New Delhi [India], May 6: Desco Infratech Limited ("the Company"), a leading player in the infrastructure and energy sector, has announced its financial results for the Half year and year ended 31st March, 2026 reflecting steady operational performance and continued strategic growth.
During the year, the Company's City Gas Distribution (CGD) segment remained a key growth driver, supported by strong execution of pipeline infrastructure projects and increasing opportunities in the clean energy sector. The Company continued to strengthen its presence in the CGD space through efficient project delivery, operational excellence and expansion across multiple geographies, reinforcing its position in India's growing energy infrastructure industry.
Financial Highlights
The Company reported a stable financial performance during the period under review, supported by strong execution of ongoing projects and improved operational efficiencies. Key financial metrics are as follows:
- Revenue from operations stood at ₹ 11,879.26 Lacs
- EBIT stood at ₹ 2,343.48 Lacs
- Net Profit stood at ₹ 1,638.12 Lacs
- Net Worth stood at ₹ 7,084.56 Lacs
- Order Book 345+ Crores as on date
- Tender Pipeline of ₹ 650 Crores
For FY 2025-26, the Company recorded Revenue from Operations of ₹ 11,879.26 Lacs compared to ₹ 5,961.08 Lacs in FY 2024-25, reflecting a strong year-on-year growth of 99.28%. EBIT increased to ₹ 2,343.48 Lacs from ₹ 1,329.27 Lacs, registering a growth of 76.30%. Profit After Tax rose to ₹ 1,638.12 Lacs from ₹ 905.71 Lacs, up 80.87% YoY. Net Worth stood at ₹ 7,084.56 Lacs as against ₹ 5,887.82 Lacs in the previous year, showing a growth of 20.32%. The Debt to Equity ratio remained stable at 0.20 compared to 0.19 in the previous year.
Segment Bifurcation
The CGD segment contributed Revenue of ₹ 8,324.04 Lacs and PAT of ₹ 1,284.24 Lacs with a strong PAT margin of 15.42%. The Power and Renewable EPC segment reported Revenue of ₹ 3,537.22 Lacs and PAT of ₹ 353.88 Lacs with a PAT margin of 10.01%. On a consolidated basis, total Revenue stood at ₹ 11,861.26 Lacs and total PAT at ₹ 1,638.12 Lacs with an overall PAT margin of 13.81%.
The moderation in overall PAT margins is primarily attributable to the Company's expansion into the Power and Renewable EPC segment, which operates at relatively lower margins compared to the CGD business. However, the CGD segment continues to maintain stable and healthy margins, reflecting consistent operational performance. The Company believes that its diversification into the Power and Renewable EPC sector is a strategic growth initiative aimed at strengthening long-term revenue visibility, expanding market presence, and creating a balanced infrastructure portfolio.
The Company continues to maintain a robust order book and is well-positioned to capitalize on emerging opportunities in the infrastructure and energy sectors.
Strengthening Green Energy Portfolio - Desco Bio Green Limited (WOS)
As part of its commitment to sustainable growth, the Company continues to scale operations through its wholly owned subsidiary, Desco Bio Green Limited.
The subsidiary focuses on green and renewable energy solutions, enabling Desco to:
- Diversify into environmentally sustainable business segments
- Align with India's clean energy transition
- Build a future-ready and ESG-focused portfolio
Strategic Acquisition - SHRI GREEN AGRO ENERGIES PRIVATE LIMITED (SGAEPL)
During the period, the Company successfully completed the acquisition of SHRI GREEN AGRO ENERGIES PRIVATE LIMITED. This acquisition aligns with Desco's long-term vision of strengthening its presence in the energy and infrastructure ecosystem.
The acquisition of SGAEPL is also strategically significant as it provides the Company with ready accessible Government Approvals. This is expected to substantially reduce the gestation period involved in commencing operations and executing projects in new geographies. By leveraging the existing regulatory and operational framework of SGAEPL, the Company aims to accelerate project mobilization, improve execution efficiency, and strengthen its pan-India operational capabilities.
This move marks a significant step toward vertical and horizontal integration within the Company's core business segments.
International Expansion - Incorporation in UAE
In line with its global expansion strategy, the Company has incorporated a wholly owned subsidiary, DESCO GLOBAL FZ-LLC, at Ras Al Khaimah Economic Zone (RAKEZ), UAE.
The incorporation of DESCO GLOBAL FZ-LLC is aimed at:
- Expanding the Company's international footprint
- Tapping into global infrastructure and energy markets
- Facilitating cross-border business opportunities
- Enhancing access to international clients and partnerships
The UAE entity will act as a strategic hub for the Company's overseas operations.
Management Commentary
Commenting on the performance and developments, the management of Desco Infratech Limited stated:
"FY 2025-26 has been a transformational year for Desco Infratech Limited, driven by strong execution capabilities, robust business expansion and sustained growth across both CGD and Power and Renewable EPC segment.
The Company reported Revenue from Operations of ₹11,879.26 Lacs as against ₹5,961.08 Lacs in FY 2024-25, registering an exceptional growth of 99.28% YoY. EBIT stood at ₹2,343.48 Lacs, reflecting a growth of 76.30% YoY, while Profit After Tax increased significantly by 80.87% to ₹1,638.12 Lacs.
The CGD segment continued to remain the key growth driver with Revenue of ₹8,324.04 Lacs and PAT of ₹1,284.24 Lacs, delivering a strong PAT Margin of 15.42%. The Power and Renewable EPC segment also demonstrated stable performance with Revenue of ₹3,537.22 Lacs and PAT of ₹353.88 Lacs, delivering PAT margin of 10.01%.
In line with the substantial increase in business operations and project execution during the year, the Company witnessed higher working capital deployment, primarily towards receivables and project mobilization activities. Net Cash Flow from Operating Activities stood at negative ₹1,795.97 Lacs as against negative ₹1,210.71 Lacs in the previous year, reflecting increased operational scale corresponding with the sharp growth in revenue. The management remains focused on improving collection efficiencies, optimizing working capital cycles and maintaining strong financial discipline to support future growth.
The Company remains optimistic about future growth opportunities backed by a strong order pipeline, expanding industry demand, strategic expansion initiatives and continued focus on operational excellence.
Our financial performance reflects the strength of our execution capabilities and the trust of our stakeholders. The acquisition of SGAEPL and our expansion into the UAE through DESCO GLOBAL FZ-LLC mark defining milestones in our growth journey. These initiatives position us strongly to capture emerging opportunities and deliver sustainable long-term value."
Outlook
With a strong pipeline of projects, strategic acquisitions, and international expansion initiatives, Desco Infratech Limited remains confident of sustained growth in the coming periods.
About Desco Infratech Limited
Desco Infratech Limited is engaged in the business of infrastructure development and energy-related services, delivering innovative and reliable solutions across its areas of operation.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same.)
