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Patel Engineering Limited (IN:PATELENG)
:PATELENG
India Market
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Patel Engineering Limited (PATELENG) AI Stock Analysis

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IN:PATELENG

Patel Engineering Limited

(PATELENG)

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Neutral 66 (OpenAI - Gpt-5.6Sol)
Rating:66Neutral
Price Target:
₹29.00
▲(3.42% Upside)
Action:Reiterated
Date:06/25/26
The score is driven primarily by improving fundamentals and a de-risking balance sheet, offset by FY2026 margin and cash-flow deterioration that adds execution risk. Technically, the trend is positive with price above major moving averages, but overbought signals temper near-term confidence. Valuation is moderate (P/E ~11.54) but lacks a dividend yield datapoint to strengthen the case.
Positive Factors
Meaningful Deleveraging
The substantial reduction in leverage lowers financial risk and interest burden, improving resilience through project delays or working-capital swings. A stronger equity base also provides Patel Engineering with greater flexibility to pursue infrastructure contracts.
Negative Factors
FY2026 Revenue Contraction
The latest revenue contraction signals weaker project execution or slower contract progress after earlier expansion. In an EPC model, sustained top-line stagnation can reduce fixed-cost absorption, constrain operating leverage, and make future earnings more dependent on new order wins.
Read all positive and negative factors
Positive Factors
Negative Factors
Meaningful Deleveraging
The substantial reduction in leverage lowers financial risk and interest burden, improving resilience through project delays or working-capital swings. A stronger equity base also provides Patel Engineering with greater flexibility to pursue infrastructure contracts.
Read all positive factors

Patel Engineering Limited (PATELENG) vs. iShares MSCI India ETF (INDA)

Patel Engineering Limited Business Overview & Revenue Model

Company Description
Patel Engineering Limited, alongside its various subsidiaries, provides a wide array of construction and infrastructure development services, operating both domestically within India and on an international scale. The company's diverse project und...
How the Company Makes Money
Patel Engineering Limited primarily makes money by executing infrastructure construction contracts awarded by government bodies, public-sector undertakings, and other project owners. Revenue is recognized from ongoing and completed projects under ...

Patel Engineering Limited Financial Statement Overview

Summary
Turnaround and balance-sheet improvement are clear (deleveraging to ~0.27 debt-to-equity and positive profitability), but FY2026 showed softer operating momentum with revenue slightly negative, margin compression versus FY2024–FY2025, and weaker cash conversion. Free cash flow remained positive but dropped sharply year over year, raising near-term execution and funding-flexibility risk.
Income Statement
67
Positive
Balance Sheet
73
Positive
Cash Flow
54
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue51.50B51.03B50.93B45.44B38.91B33.80B
Gross Profit8.33B8.29B13.99B12.52B6.35B9.36B
EBITDA7.31B6.84B7.26B7.96B6.76B6.13B
Net Income2.80B2.61B2.48B2.90B1.83B720.98M
Balance Sheet
Total Assets0.0095.22B95.80B89.96B87.50B85.10B
Cash, Cash Equivalents and Short-Term Investments5.50B5.50B5.16B3.39B4.40B2.62B
Total Debt0.0012.16B16.15B19.10B17.70B22.92B
Total Liabilities-44.42B50.80B58.03B58.34B57.74B60.55B
Stockholders Equity44.42B44.40B37.85B31.54B28.88B23.84B
Cash Flow
Free Cash Flow3.32B1.15B2.73B5.29B5.09B3.56B
Operating Cash Flow3.80B2.25B3.63B6.88B6.93B5.37B
Investing Cash Flow-4.84M-146.56M-148.25M-1.32B-2.17B-1.44B
Financing Cash Flow-2.41B-812.72M-2.83B-4.29B-2.10B-3.40B

Patel Engineering Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price28.04
Price Trends
50DMA
29.59
Negative
100DMA
28.84
Negative
200DMA
28.82
Negative
Market Momentum
MACD
-0.45
Positive
RSI
39.18
Neutral
STOCH
33.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PATELENG, the sentiment is Negative. The current price of 28.04 is below the 20-day moving average (MA) of 28.32, below the 50-day MA of 29.59, and below the 200-day MA of 28.82, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 33.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PATELENG.

Patel Engineering Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
₹25.89B8.921.53%-1.44%-0.65%
65
Neutral
₹32.45B1.310.65%-24.59%39.70%
56
Neutral
₹93.74B13.461.47%-1.81%-12.78%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
₹60.25B29.831.34%-20.64%-12.46%
49
Neutral
₹112.11B21.391.84%-9.92%-21.60%
44
Neutral
₹107.60B74.870.68%-11.87%-73.37%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:PATELENG
Patel Engineering Limited
27.29
-10.13
-27.07%
IN:AFCONS
Afcons Infrastructure Limited
292.55
-143.42
-32.90%
IN:ASHOKA
Ashoka Buildcon Limited
115.60
-71.15
-38.10%
IN:HCC
Hindustan Construction Co. Ltd.
23.00
-5.65
-19.72%
IN:IRCON
IRCON International Ltd.
119.20
-50.27
-29.66%
IN:NCC
NCC Limited
149.30
-55.04
-26.94%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2026