Adani's ₹1.53T Spree Fuels Small EPC Firms

The Adani Group's substantial ₹1.53 trillion capital expenditure plan for FY26 is set to act as a significant catalyst for smaller, listed engineering, procurement, and construction (EPC) companies. This investment spree by Gautam Adani's conglomerate is projected to fuel growth for at least half a dozen such firms. Many of these companies already rely heavily on Adani for a considerable share of their order books, with some securing over 80% of their new orders from the conglomerate last year.

This increased spending by Adani, which accounted for nearly a third of India's private capex last year, offers a much-needed boost. Companies like PSP Projects Ltd and Diamond Power Infrastructure Ltd received contracts worth ₹9,286.25 crore and ₹2,780 crore respectively from Adani last year, representing 80% and 85% of their total contracts. Similarly, H.G. Infra Engineering Ltd saw 57% of its orders, totaling ₹740 crore, come from Adani.

Further beneficiaries include Power Mech Projects, which received 30% of its orders from the group, and Bondada Engineering Ltd, which secured over ₹1,000 crore (14.2%) from Adani. Sterling and Wilson Renewables Ltd also saw 14% of its orders originate from the conglomerate. These companies are optimistic about continued order flow from Adani, anticipating sustained business for the next few years.

While Adani's order flow provides a strong foundation, the revenue trends for these EPC companies show a mixed performance. Sterling and Wilson saw a 20% revenue rise, Power Mech's revenue increased by 16%, and H.G. Infra's by 3.5%. Bondada Engineering reported an 81% revenue jump, and Diamond Power saw a 71.2% increase. PSP Projects, however, demonstrated faster growth last year with a 25.3% revenue increase, up from minimal growth the previous year. Stock market performance also varied, with some shares rising significantly while others saw declines.