Engineers India Ltd
Engineers India Ltd
IndustrialsEIL is a CPSU with majority ownership of the GoI operating under the administrative control of MoPNG. The Co. provides consultancy and engineering services and undertakes turnkey contracts. [1]
Engineers India Ltd offers a compelling mix of debt-free balance sheet, strong ROE of 24%, and robust profit CAGR of 26% over 3 years. At a PE of 21x with 83% analyst buy ratings, the stock is reasonably valued for a capital-light PSU engineering consultancy riding India's energy capex cycle.
Key Fundamentals
SmallcapCivil ConstructionConstructionTechnical Indicators
Key Insights
Strengths
3- Company has reduced debt.
- Company is almost debt free.
- Company has been maintaining a healthy dividend payout of 39.1%
Weaknesses
2- The company has delivered a poor sales growth of 4.55% over past five years.
- Earnings include an other income of Rs.242 Cr.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 1d agoEngineers India Ltd offers a compelling mix of debt-free balance sheet, strong ROE of 24%, and robust profit CAGR of 26% over 3 years. At a PE of 21x with 83% analyst buy ratings, the stock is reasonably valued for a capital-light PSU engineering consultancy riding India's energy capex cycle.
- Company is virtually debt-free, providing significant financial flexibility and resilience during cyclical downturns
- ROE of 24% in the last year is well above the 15% threshold for quality companies, with a consistent 3-year average of 23%
- Compounded profit growth of 26% over 3 years significantly outpaces sales growth, indicating improving operating leverage and margin expansion
- 83% of analysts (5 out of 6) rate the stock a Buy with zero Sell ratings, reflecting strong institutional conviction
- Stock CAGR of 32% over 3 years demonstrates strong momentum and re-rating by the market
- TTM sales growth of 27% marks a sharp acceleration from the 5-year CAGR of 5%, signalling an inflection in order execution
- Healthy dividend payout of 39.1% provides income support with a 0.97% yield while still retaining capital for growth
- 10-year ROE of 17% demonstrates the company has sustained profitability across multiple business cycles
- 5-year compounded sales growth of only 5% indicates historically weak topline performance and potential revenue volatility
- Other income of Rs.242 Cr forms a material part of earnings, raising concerns about core operating profit quality
- Price-to-book ratio of 4.62x is elevated for an engineering consultancy, limiting margin of safety for new investors
- PE of 21x is not cheap for a company with only 10% long-term profit CAGR over 10 years
- Dividend yield of 0.97% is below the 1% mark, offering limited income cushion if stock price corrects
- 10-year stock CAGR of only 10% shows prolonged periods of underperformance, suggesting cyclical vulnerability
- 5-year sales CAGR of 5% versus 5-year profit CAGR of 16% gap raises sustainability concerns if margin tailwinds reverse
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- SEBI fines for board non-compliance May 26
EIL fined over ₹30 lakh for non-compliance with SEBI board composition norms. Company has sought waivers citing government control.
- Middle East slowdown risk Jun 17
Activity in the Middle East slowed during recent conflict, and management maintains cautious revenue growth outlook of ~12-13% due to geopolitical risks.
- Buy rating, ₹271 target price Jun 17
Prabhudas Lilladher issued a buy rating with ₹271 target, citing PE of 19.6x/16.1x on FY27/28E. Order book stands at ₹150 billion with FY27 inflow guidance of ₹80 billion.
- Saudi Aramco long-term agreement Jun 17
EIL signed a 5+3 year engineering services agreement with Saudi Aramco, expected to open sizeable opportunities with gradual ramp-up based on execution.
- Strong margin guidance sustained Jun 17
Management expects consultancy EBITDA margins at 22-24%, turnkey at 5-7%, and blended EBITDA margins at 17-18% supported by digitalisation and flexible manpower strategy.
- HCL-EIL copper & rare earth MoA Jun 24
EIL signed MoA with Hindustan Copper on June 22 for consultancy and project management in copper and rare earth elements, supporting diversification beyond hydrocarbons.
- CMD charge extended three months Jun 3
Government extended additional charge of CMD to Shri Praveen M. Khanooja for three months effective June 1, 2026.
TL;DR: EIL is well-positioned with a strong ₹150 billion order book, healthy margin guidance, and new growth vectors in rare earths and Saudi Aramco partnership. Key risks include SEBI compliance issues and geopolitical headwinds in the Middle East. The diversification trend into non-oil & gas (20% of order book) and infrastructure is encouraging. Overall momentum appears positive with improving overseas traction, though near-term execution depends on geopolitical normalization.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 880 | 818 | 790 | 868 | 805 | 624 | 689 | 765 | 1,010 | 870 | 921 | 1,210 | 926 |
| Expenses | 713 | 747 | 691 | 818 | 728 | 573 | 627 | 667 | 709 | 798 | 802 | 858 | 774 |
| Operating Profit | 167 | 71 | 99 | 50 | 77 | 51 | 62 | 98 | 301 | 72 | 120 | 352 | 152 |
| OPM % | 19% | 9% | 12% | 6% | 10% | 8% | 9% | 13% | 30% | 8% | 13% | 29% | 16% |
| Other Income | 45 | 94 | 44 | 30 | 51 | 39 | 47 | 38 | 74 | 36 | 37 | 101 | 101 |
| Interest | 0 | 1 | 0 | 1 | 1 | 1 | 1 | 1 | 0 | 1 | 1 | 1 | 0 |
| Depreciation | 7 | 8 | 8 | 8 | 11 | 10 | 10 | 10 | 11 | 11 | 10 | 10 | 11 |
| PBT | 204 | 156 | 134 | 71 | 117 | 79 | 99 | 126 | 364 | 97 | 146 | 442 | 242 |
| Tax % | 23% | 25% | 24% | 26% | 23% | 26% | 22% | 25% | 23% | 25% | 25% | 21% | 19% |
| Net Profit | 190 | 139 | 127 | 63 | 116 | 92 | 100 | 109 | 280 | 65 | 83 | 347 | 196 |
| EPS in Rs | 3.38 | 2.47 | 2.27 | 1.13 | 2.06 | 1.63 | 1.77 | 1.93 | 4.98 | 1.16 | 1.49 | 6.18 | 3.48 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,741 | 1,541 | 1,480 | 1,824 | 2,476 | 3,237 | 3,144 | 2,913 | 3,330 | 3,281 | 3,088 | 3,928 |
| Expenses | 1,507 | 1,331 | 1,163 | 1,395 | 2,099 | 2,781 | 2,792 | 2,567 | 3,020 | 2,982 | 2,573 | 3,232 |
| Operating Profit | 234 | 210 | 316 | 429 | 377 | 455 | 352 | 346 | 310 | 299 | 514 | 696 |
| OPM % | 13% | 14% | 21% | 24% | 15% | 14% | 11% | 12% | 9% | 9% | 17% | 18% |
| Other Income | 265 | 247 | 222 | 176 | 222 | 255 | 34 | 130 | 164 | 219 | 160 | 242 |
| Interest | 2 | 2 | 5 | 2 | 3 | 4 | 6 | 3 | 3 | 5 | 5 | 2 |
| Depreciation | 20 | 25 | 23 | 24 | 22 | 24 | 24 | 24 | 26 | 35 | 40 | 42 |
| PBT | 477 | 430 | 511 | 579 | 574 | 683 | 356 | 449 | 446 | 478 | 630 | 894 |
| Tax % | 34% | 35% | 35% | 34% | 35% | 36% | 27% | 24% | 23% | 25% | 25% | 23% |
| Net Profit | 313 | 278 | 330 | 383 | 368 | 424 | 249 | 140 | 346 | 445 | 580 | 692 |
| EPS in Rs | 4.64 | 4.13 | 4.9 | 6.07 | 5.83 | 6.71 | 4.43 | 2.48 | 6.16 | 7.92 | 10.32 | 12.3 |
| Div. Payout % | 54% | 48% | 61% | 66% | 69% | 77% | 45% | 121% | 49% | 38% | 39% | 41% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 168 | 168 | 337 | 316 | 316 | 316 | 281 | 281 | 281 | 281 | 281 | 281 |
| Reserves | 2,463 | 2,653 | 2,508 | 2,025 | 2,029 | 2,090 | 1,470 | 1,489 | 1,680 | 1,965 | 2,388 | 2,865 |
| Borrowings | 0 | 0 | 0 | 0 | 0 | 5 | 4 | 4 | 19 | 33 | 22 | 17 |
| Other Liabilities | 1,356 | 1,342 | 1,551 | 2,173 | 2,416 | 2,685 | 2,687 | 2,404 | 2,408 | 2,454 | 2,574 | 2,707 |
| Total Liabilities | 3,988 | 4,164 | 4,396 | 4,514 | 4,761 | 5,096 | 4,441 | 4,177 | 4,388 | 4,733 | 5,265 | 5,869 |
| Fixed Assets | 272 | 242 | 272 | 257 | 248 | 274 | 263 | 263 | 279 | 298 | 295 | 338 |
| CWIP | 19 | 24 | 56 | 52 | 52 | 3 | 1 | 7 | 26 | 36 | 46 | 31 |
| Investments | 138 | 75 | 533 | 242 | 315 | 461 | 1,324 | 1,088 | 1,179 | 1,380 | 1,395 | 1,606 |
| Other Assets | 3,559 | 3,822 | 3,535 | 3,963 | 4,146 | 4,359 | 2,853 | 2,821 | 2,905 | 3,020 | 3,530 | 3,895 |
| Total Assets | 3,988 | 4,164 | 4,396 | 4,514 | 4,761 | 5,096 | 4,441 | 4,177 | 4,388 | 4,733 | 5,265 | 5,869 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 65 | 88 | 236 | 599 | 549 | 376 | 171 | 48 | -113 | 222 | 109 | 319 |
| Investing | 174 | 70 | 197 | 165 | -4 | -229 | 776 | 61 | 322 | 145 | -36 | -101 |
| Financing | -240 | -162 | -284 | -892 | -362 | -334 | -904 | -149 | -176 | -180 | -185 | -269 |
| Net Cash Flow | -1 | -4 | 150 | -129 | 183 | -188 | 43 | -39 | 34 | 187 | -112 | -51 |
| Free Cash Flow | 2 | 88 | 237 | 570 | 517 | 358 | 160 | 23 | -147 | 188 | 68 | 252 |
| CFO/OP | 96 | 115 | 127 | 205 | 204 | 132 | 95 | 54 | 7 | 93 | 47 | 70 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 92 | 89 | 98 | 112 | 63 | 77 | 62 | 48 | 40 | 37 | 53 | 45 |
| Inventory Days | — | — | — | — | — | — | — | — | — | — | — | 0 |
| Days Payable | — | — | — | — | — | — | — | — | — | — | — | 502 |
| Cash Conversion Cycle | 92 | 89 | 98 | 112 | 63 | 77 | 62 | 48 | 40 | 37 | 53 | -457 |
| Working Capital Days | -100 | -117 | -164 | -215 | -198 | -164 | -186 | -179 | -125 | -124 | -101 | -52 |
| ROCE % | 16% | 16% | 18% | 22% | 25% | 29% | 25% | 25% | 24% | 22% | 25% | 31% |
Documents
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Company Information
EIL is a CPSU with majority ownership of the GoI operating under the administrative control of MoPNG. The Co. provides consultancy and engineering services and undertakes turnkey contracts. [1]