Hold

Last Updated: 17 Feb 2026, 08:04 pm IST | Report Date: Feb 17, 2026

SPML Infra Limited Stock Analysis

Name: SPML Infra Limited (SPMLINFRA) Stock Analysis
Brand: NSE India
Rating: 6.2 (1 reviews)

SPMLINFRA NSE India

SPML Infra Limited (SPMLINFRA) is a India-based company listed on NSE. This AI-powered analysis provides investment insights based on quarterly earnings reports and financial performance metrics.

Share Share Share

SPML Infra delivers a mixed Q3FY26 result with consolidated revenue from operations of Rs. 22,976 lakh for the quarter, representing a meaningful sequential improvement from Rs. 19,014 lakh in Q2FY26 (+20.8% QoQ), though the 9-month consolidated revenue of Rs. 57,795 lakh against the full-year FY25 base of Rs. 77,706 lakh suggests execution pace remains stretched. Profitability has improved materially — consolidated PAT for Q3FY26 stands at Rs. 2,034 lakh with basic EPS of Rs. 7.61 (not annualized), versus Rs. 1,503 lakh in Q2FY26 — signaling genuine operational leverage kicking in. However, earnings quality carries a significant caveat: Other Income includes a complex netting of Rs. 910.62 lakh 'unwinding of deferred income' against Rs. 872.16 lakh 'amortisation of discounting on fair valuation of sustainable debt', producing only Rs. 38.46 lakh net — this NARCL debt restructuring-linked accounting creates opacity in recurring earnings. The company's ongoing debt restructuring with NARCL and the preferential allotment of shares (including 11.44 lakh shares at Rs. 276 to NARCL for loan conversion) reflect a still-stressed balance sheet undergoing repair rather than a clean fundamental recovery.

Based on: Construction - Financial Results (17/2/2026) (Feb 17, 2026)

+ Key Strengths

Strong sequential revenue acceleration: consolidated revenue from operations jumped 20.8% QoQ from Rs. 19,014 lakh in Q2FY26 to Rs. 22,976 lakh in Q3FY26, demonstrating improving project execution velocity

Robust profit expansion with consolidated PAT rising from Rs. 1,504 lakh in Q2FY26 to Rs. 2,034 lakh in Q3FY26 (+35.2% QoQ), with standalone PAT similarly improving from Rs. 1,525 lakh to Rs. 2,047 lakh, indicating operational leverage

EPS trajectory is meaningfully positive with consolidated basic EPS of Rs. 7.61 for Q3FY26 versus Rs. 5.95 for full-year FY25, suggesting annualized earnings power has stepped up substantially versus the prior year

Debt-to-equity reduction via NARCL loan-to-equity conversion: 11.44 lakh shares issued at Rs. 276/share aggregating Rs. 3,158.64 lakh represents balance sheet deleveraging, reducing debt burden without cash outflow

Promoter group commitment evidenced by 37.67 lakh warrants converted to equity at Rs. 118.56/share (Rs. 4,466.67 lakh), demonstrating insider confidence in business recovery

9-month consolidated revenue of Rs. 57,795 lakh is already 74.4% of full-year FY25 revenue of Rs. 77,706 lakh, positioning the company for potential full-year growth if Q4 execution sustains current momentum

- Key Risks

Earnings quality concern: Other Income contains non-cash, restructuring-linked accounting entries (Rs. 910.62 lakh unwinding of deferred income offset by Rs. 872.16 lakh debt amortisation) that inflate gross line items while netting to only Rs. 38.46 lakh — creating complexity and potential misreading of recurring income

Active NARCL debt restructuring (Master Restructuring Agreement dated May 17, 2024) signals the company was in financial distress and continues to operate under externally restructured debt terms, with associated covenants and constraints likely limiting strategic flexibility

Limited review (not full audit) with multiple unreviewed/unaudited entities: 2 subsidiaries with losses of Rs. 36.16 lakh for 9 months, 4 associates and 1 JV not reviewed by auditors, and 7 joint operations excluded due to non-availability of financials — creating consolidated earnings opacity

Finance costs remain elevated at Rs. 530.61 lakh for Q3FY26 standalone (Rs. 1,623 lakh annualized run-rate), consuming a material portion of operating profits and reflecting the legacy debt overhang despite restructuring

Revenue concentration risk: the company operates solely in the EPC segment with no reportable sub-segments, making it entirely dependent on government infrastructure spending cycles, project awards, and execution timelines

Equity dilution pressure: issuance of 49.12 lakh new shares in Q3FY26 alone (to promoters and NARCL) increases share count materially, with paid-up capital rising to Rs. 1,618.47 lakh, potentially capping per-share value appreciation despite earnings growth

Forward Outlook

The report does not provide explicit forward guidance, revenue targets, or a named project pipeline for upcoming quarters. Strategically, Q3FY26 was characterized by two capital structure actions: the conversion of promoter warrants (Rs. 4,466.67 lakh) and NARCL loan conversion to equity (Rs. 3,158.64 lakh), both of which reduce debt and strengthen the balance sheet but also signal that the restructuring process is ongoing rather than concluded. The New Labour Codes notification (November 21, 2025) introduces a regulatory variable the management has assessed as non-material currently, but final Central/State Rules could alter cost structures in future quarters. If Q4FY26 sustains the Rs. 22,000-23,000 lakh quarterly revenue run-rate established in Q3, the company could deliver full-year FY26 consolidated revenue in the Rs. 78,000-80,000 lakh range, roughly flat to marginally ahead of FY25's Rs. 77,706 lakh — a stabilization rather than a breakout growth story. The primary near-term catalyst to watch is any announcement regarding order book additions or new EPC contract wins, which are not disclosed in this filing, making it difficult to assess whether the current revenue run-rate is sustainable beyond Q4FY26.

All Scores

Date	Report	Score	Sentiment	AI
Feb 17, 2026	Construction - Financial Results (17/2/2026)	6.2	Hold	Claude
SPML Infra delivers a mixed Q3FY26 result with consolidated revenue from operations of Rs. 22,976 lakh for the quarter, representing a meaningful sequential improvement from Rs. 19,014 lakh in Q2FY26 (+20.8% QoQ), though the 9-month consolidated revenue of Rs. 57,795 lakh against the full-year FY25 base of Rs. 77,706 lakh suggests execution pace remains stretched. Profitability has improved materially — consolidated PAT for Q3FY26 stands at Rs. 2,034 lakh with basic EPS of Rs. 7.61 (not annualized), versus Rs. 1,503 lakh in Q2FY26 — signaling genuine operational leverage kicking in. However, earnings quality carries a significant caveat: Other Income includes a complex netting of Rs. 910.62 lakh 'unwinding of deferred income' against Rs. 872.16 lakh 'amortisation of discounting on fair valuation of sustainable debt', producing only Rs. 38.46 lakh net — this NARCL debt restructuring-linked accounting creates opacity in recurring earnings. The company's ongoing debt restructuring with NARCL and the preferential allotment of shares (including 11.44 lakh shares at Rs. 276 to NARCL for loan conversion) reflect a still-stressed balance sheet undergoing repair rather than a clean fundamental recovery. STRENGTHS: Strong sequential revenue acceleration: consolidated revenue from operations jumped 20.8% QoQ from Rs. 19,014 lakh in Q2FY26 to Rs. 22,976 lakh in Q3FY26, demonstrating improving project execution velocity / Robust profit expansion with consolidated PAT rising from Rs. 1,504 lakh in Q2FY26 to Rs. 2,034 lakh in Q3FY26 (+35.2% QoQ), with standalone PAT similarly improving from Rs. 1,525 lakh to Rs. 2,047 lakh, indicating operational leverage / EPS trajectory is meaningfully positive with consolidated basic EPS of Rs. 7.61 for Q3FY26 versus Rs. 5.95 for full-year FY25, suggesting annualized earnings power has stepped up substantially versus the prior year / Debt-to-equity reduction via NARCL loan-to-equity conversion: 11.44 lakh shares issued at Rs. 276/share aggregating Rs. 3,158.64 lakh represents balance sheet deleveraging, reducing debt burden without cash outflow / Promoter group commitment evidenced by 37.67 lakh warrants converted to equity at Rs. 118.56/share (Rs. 4,466.67 lakh), demonstrating insider confidence in business recovery / 9-month consolidated revenue of Rs. 57,795 lakh is already 74.4% of full-year FY25 revenue of Rs. 77,706 lakh, positioning the company for potential full-year growth if Q4 execution sustains current momentum RISKS: Earnings quality concern: Other Income contains non-cash, restructuring-linked accounting entries (Rs. 910.62 lakh unwinding of deferred income offset by Rs. 872.16 lakh debt amortisation) that inflate gross line items while netting to only Rs. 38.46 lakh — creating complexity and potential misreading of recurring income / Active NARCL debt restructuring (Master Restructuring Agreement dated May 17, 2024) signals the company was in financial distress and continues to operate under externally restructured debt terms, with associated covenants and constraints likely limiting strategic flexibility / Limited review (not full audit) with multiple unreviewed/unaudited entities: 2 subsidiaries with losses of Rs. 36.16 lakh for 9 months, 4 associates and 1 JV not reviewed by auditors, and 7 joint operations excluded due to non-availability of financials — creating consolidated earnings opacity / Finance costs remain elevated at Rs. 530.61 lakh for Q3FY26 standalone (Rs. 1,623 lakh annualized run-rate), consuming a material portion of operating profits and reflecting the legacy debt overhang despite restructuring / Revenue concentration risk: the company operates solely in the EPC segment with no reportable sub-segments, making it entirely dependent on government infrastructure spending cycles, project awards, and execution timelines / Equity dilution pressure: issuance of 49.12 lakh new shares in Q3FY26 alone (to promoters and NARCL) increases share count materially, with paid-up capital rising to Rs. 1,618.47 lakh, potentially capping per-share value appreciation despite earnings growth

What is the AI Stock Score?

The AI Stock Score is a composite rating from 0-10 generated by analyzing quarterly earnings reports using three leading AI models (Google Gemini, Anthropic Claude, and OpenAI ChatGPT). Each AI independently evaluates financial performance, growth prospects, risks, and market positioning to provide an objective investment perspective.

How should I interpret Buy/Hold/Sell ratings?

Buy (7.0-10.0): Strong fundamentals and positive outlook. Hold (4.0-6.9): Mixed signals, suitable for existing positions. Sell (0-3.9): Deteriorating fundamentals or significant risks. These are AI-generated opinions for informational purposes only, not investment advice.

How is the composite score calculated?

The composite score is the mathematical average of the latest scores from each AI provider. For example, if Gemini rates 7.5, Claude rates 4.5, and ChatGPT rates 6.0, the composite score would be (7.5+4.5+6.0)/3 = 6.0. This multi-AI approach reduces bias from any single model.

How often are scores updated?

Scores are automatically generated within hours of quarterly earnings results being published on NSE. The system monitors earnings announcements 4 times daily and processes new reports immediately. Check the "Last Updated" date at the top of this page for the most recent analysis timestamp.

Is this financial advice?

No. This is AI-generated analysis for informational and educational purposes only. MarketsHost is not a SEBI-registered Research Analyst or Investment Adviser. AI models can produce inaccurate results. Always consult a qualified financial advisor and conduct your own due diligence before making investment decisions.