Patel Engineering, in a joint venture, secured a ₹958.33 crore irrigation project, with its share at ₹191.67 crore. The project includes a pipeline distribution network and aims to enhance irrigation infrastructure in Maharashtra’s Satara district.
Earlier in the session, shares of Patel Engineering Ltd added 0.19% to ₹41.97 after the company declared the construction of the Pipeline Distribution Network. However, as of 9:40 AM IST, the stock was trading at ₹41.81, down just 0.19%, as it failed to hold on to early gains.
Patel Engineering Ltd. (PEL), along with its Joint Venture (JV) partner, has been awarded a significant irrigation project valued at ₹958.33 crore by the Maharashtra Krishna Valley Development Corporation, Pune. Patel Engineering's share in this substantial contract stands at ₹191.67 crore.
The project involves the construction of a pipeline distribution Network for the Nira Deoghar Right Bank Main Canal from Km 87 to Km 135, as well as its Distributaries and Minors off-taking between Km 65 to Km 135. PEL had previously been declared the lowest bidder (L1) for this project, with the intimation of L1 status received on February 18, 2025.
Located in Village Kalaj, Taluka Phaltan, District Satara, Maharashtra, the project is slated for completion within 36 months. Patel Engineering holds a 20% share in the Joint Venture undertaking this project. The scope of work encompasses excavation and refilling for pipe trenches, providing structures, supplying, jointing, lowering, and laying of pipes, various types of valves, chambers, and outlets. Additionally, it includes testing the pipeline with all valves and outlets, and an Operations, Repairs, and Maintenance period of five years following the completion of works.
Ms. Kavita Shirvaikar, Managing Director, Patel Engineering Limited, said, “We are pleased to have been awarded this project by the Maharashtra Krishna Valley Development Corporation. This project represents a significant step forward in enhancing irrigation infrastructure in the region and will play a crucial role in improving agricultural productivity and water management efficiency. At Patel Engineering Ltd., we view this as more than just a construction project—it is a long-term investment in the prosperity of rural communities and the resilience of our agricultural ecosystem.”
In Q4 FY25, the company reported a 20% year-on-year growth in revenue from operations, reaching ₹1,611.86 crore compared to ₹1,343.18 crore in Q4 FY24. However, profit after tax declined sharply by 75.37% to ₹34.71 crore from ₹140.94 crore in the same quarter last year.
For the full financial year FY25, revenue from operations stood at ₹5,093.36 crore, marking a 12.09% increase from ₹4,544.11 crore in FY24. Despite the growth in revenue, the annual profit after tax declined by 21.70% to ₹236.16 crore, down from ₹301.60 crore in the previous fiscal year.
Patel Engineering Ltd is a 76-year-old company established in 1949 and has a strong presence in the hydropower, tunnelling and irrigation segments. The Company has a consistent track record in the execution of projects in both the domestic and international arenas. PEL has completed over 85 dams, 40 hydroelectric projects and more than 300 km of tunnelling for clients, which are mostly central PSUs or state government organisations.
On a year-to-date basis, the stock is down by 19.45% and in 12 months it is down by 35.60%. In the long term of 3-year period, it has logged returns of 86.47%.
As of March 2025, the company's shareholding pattern was as follows: Promoters held 36.11% of the total equity. Foreign Institutional Investors (FIIs) increased their stake to 5.01% from 4.74% in the previous quarter. Domestic Institutional Investors (DIIs) also raised their holdings to 4.70%, up from 4.51% in the last quarter. The public investors held the largest share at 49.80%, while Others accounted for 4.39% of the shareholding. Notably, in the June 2024 quarter, ace investor Vijay Kedia held a 1.42% stake in the company.
Disclaimer: The article is for informational purposes only and not investment advice.
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