PSP Projects Shows Improved Financial Metrics Amidst Declining Profit After Tax

PSP Projects, a small-cap player in the construction industry, has recently undergone a financial trend adjustment reflecting a notable improvement in its performance metrics for the quarter ending September 2025. The company's evaluation revision highlights several key indicators that showcase its operational strength.
Among the positive developments, PSP Projects reported its highest operating cash flow at Rs 52.71 crore, alongside a robust operating profit to interest ratio of 4.16 times. The net sales reached a peak of Rs 702.87 crore, with a PBDIT of Rs 49.93 crore, indicating strong revenue generation capabilities. Additionally, the operating profit to net sales ratio stood at 7.10%, while profit before tax (PBT) less other income was recorded at Rs 18.28 crore, contributing to a profit after tax (PAT) of Rs 16.17 crore and an earnings per share (EPS) of Rs 4.08.

However, the company faces challenges, particularly with its PAT over the last six months, which has seen a decline of 63.05%. Furthermore, the dividend payout ratio remains at a low 0.00%, indicating limited returns to shareholders.

In terms of market performance, PSP Projects has shown a year-to-date return of 15.06%, outperforming the Sensex, which recorded a 7.44% return in the same period. Over the past year, the stock has delivered a return of 15.79%, significantly higher than the Sensex's 3.64%. Despite recent fluctuations in stock price, PSP Projects continues to demonstrate resilience in a competitive market landscape.