Earnings call transcript: Engineers India posts stronger Q1 2026 profit

Engineers India, a state-run engineering and consultancy company, announced stronger earnings for the first quarter of 2026. Standalone profit before tax increased by 55% compared to the previous year, while profit after tax also grew by 55%. Despite a dip in total turnover, the company's margins improved significantly due to a shift towards higher-margin consultancy work.

Total turnover fell 6.5% year over year to INR 801 crores, mainly due to a decline in turnkey revenue. However, the consultancy and engineering business, which accounts for 62.3% of total turnover, saw a 22% increase in turnover to INR 499 crores. The better performance was attributed to a richer mix of consultancy work and better project execution efficiency.

The company's stock rose 0.61% to $242.05, near the upper end of its 52-week range. While the earnings per share (EPS) and revenue figures were not disclosed, the operating picture appeared robust, with a 55% profit increase and margin expansion. The main offset was the decline in total turnover, indicating uneven revenue recognition across business lines.

The company remains optimistic about its future, targeting INR 8,000 crores in order inflows for fiscal 2027 and anticipating consultancy revenue to reach INR 2,300 crore to INR 2,400 crore, up from INR 2,000 crores.