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Desco Infratech Limited reported strong financial growth for FY 2025–26, driven mainly by its City Gas Distribution segment and improved project execution. The company nearly doubled its revenue and recorded significant increases in profit and EBIT. While margins saw slight moderation due to expansion into the Power and Renewable EPC segment, the move is part of a long-term diversification strategy. Key developments included the acquisition of Shri Green Agro Energies Private Limited and entry into international markets through a UAE subsidiary. The company continues to maintain a strong order book and remains optimistic about future growth.
Desco Infratech Limited reported a steady operational and financial performance for the half year and full year ended March 31, 2026, supported by strong execution across projects and expansion into new business areas. The City Gas Distribution (CGD) segment continued to lead growth, backed by increased pipeline infrastructure work and rising opportunities in the clean energy sector. The company also expanded its presence across multiple regions, strengthening its position in India’s energy infrastructure space. Advertisement
During the period under review, revenue from operations stood at INR 11,879.26 lakh, while EBIT reached INR 2,343.48 lakh. Net profit came in at INR 1,638.12 lakh, and net worth rose to INR 7,084.56 lakh. The company maintained a healthy order book of over INR 345 crore, along with a tender pipeline of INR 650 crore, indicating strong visibility for future projects.
On a year-on-year basis, the company recorded a revenue growth of 99.28%, compared to INR 5,961.08 lakh in the previous financial year. EBIT increased by 76.30% from INR 1,329.27 lakh, while profit after tax rose by 80.87% from INR 905.71 lakh. Net worth also grew by 20.32% from INR 5,887.82 lakh. The debt-to-equity ratio remained largely stable at 0.20.
Segment-wise, the CGD business contributed INR 8,324.04 lakh in revenue and INR 1,284.24 lakh in profit after tax, with a margin of 15.42%. The Power and Renewable EPC segment generated revenue of INR 3,537.22 lakh and profit of INR 353.88 lakh, with a margin of 10.01%. On a consolidated basis, total revenue stood at INR 11,861.26 lakh, with an overall profit margin of 13.81%.
The company indicated that the slight moderation in overall margins was due to its expansion into the Power and Renewable EPC segment, which operates at lower margins compared to CGD. However, it maintained that this diversification is a strategic step to strengthen long-term growth, improve revenue stability, and build a balanced business portfolio.
As part of its sustainability focus, the company continued to scale operations through its wholly owned subsidiary, Desco Bio Green Limited. This arm is focused on green energy solutions, helping the company align with India’s clean energy transition while building an ESG-focused portfolio.
The company also completed the acquisition of Shri Green Agro Energies Private Limited during the period. This move is expected to support faster project execution, as the acquired entity comes with existing government approvals. The company plans to use this advantage to reduce project timelines, expand into new regions, and improve operational efficiency across India.
In addition, Desco entered international markets by incorporating a wholly owned subsidiary, Desco Global FZ-LLC, in Ras Al Khaimah Economic Zone, UAE. This entity will serve as a hub for overseas operations and is aimed at expanding the company’s global footprint, accessing international clients, and exploring cross-border opportunities.
The management stated that the financial year marked a transformational phase for the company, driven by strong execution, business expansion, and growth across both CGD and EPC segments. It highlighted that revenue nearly doubled during the year, while profits also saw significant growth.
The management further noted that increased business activity led to higher working capital requirements, particularly towards receivables and project mobilization. As a result, net cash flow from operating activities remained negative at INR 1,795.97 lakh compared to negative INR 1,210.71 lakh in the previous year. However, the company is focusing on improving collections and optimizing working capital cycles to maintain financial discipline.
With a strong pipeline of projects, strategic acquisitions, and expansion into global markets, the company expects continued growth in the coming periods.
Source PTI
5th Jun, 2025
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