Patel Engineering is targeting a 20% revenue growth annually for the next five years, as it looks to add between Rs 10,000 crore and Rs 15,000 crore to its current order book, which stands at approximately Rs 18,000 crore. Managing Director Kavita Shirvaikar shared the company’s growth outlook, stating that Patel Engineering has identified project opportunities worth around Rs 50,000 crore and is actively participating in the bidding process.
In April this year, the company raised Rs 400 crore through a qualified institutional placement (QIP) at a floor price of Rs 59.50 per share, which will be used to meet the working capital needs for upcoming projects.
Patel Engineering also recently entered into a partnership with Rail Vikas Nigam Ltd. (RVNL) by signing a Memorandum of Understanding (MoU) to jointly pursue hydro and other infrastructure projects. Under the agreement, both companies will collaborate to bid for large-scale hydroelectric and infrastructure projects, with the revenue share varying based on the specifics of each project.
While the company is optimistic about its long-term growth, Shirvaikar noted that revenue growth in fiscal 2025 might be slower due to the long development cycles of hydropower projects, which typically take four to five years to complete. As a result, the company expects a 10% revenue growth for FY25.
Despite these challenges, Patel Engineering is on track to maintain a profit margin of 14-15% for the current fiscal year, Shirvaikar added. Patel Engineering is a well-established infrastructure and construction company in India, with a strong focus on civil engineering projects, particularly in sectors like hydropower, irrigation, water supply, and urban infrastructure.
Founded in 1949, the company has built a reputation for delivering complex and large-scale projects both domestically and internationally. Patel Engineering specializes in dams, tunnels, bridges, highways, and powerhouses, playing a significant role in India’s infrastructure development. Over the years, the company has expanded its operations to include real estate, focusing on residential and commercial developments, while maintaining its leadership in engineering and construction.
