PSP Projects shares crash 17% intra day on high volumes

Shares of PSP Projects experienced a significant decline, falling by 17% during Monday's trading, marking the lowest point since May 9, 2025. The stock, slipped 17.49% to ₹626.60 on intra day basis. Later, PSP Projects stock closed 15.52% lower at Rs 641.60 on BSE. Market cap of the firm slipped to Rs 2,543.42 crore. 

Heavy trading volumes were noted with 2.09 million equity shares, or 5.3% of the company's total equity, being exchanged on both NSE and BSE. The recent decline follows the stock hitting a 52-week high of ₹842.50 on July 17, 2025.

For Q1FY26, PSP Projects reported revenues of ₹517.8 crore, a 17% decrease year-on-year, influenced by labour shortages and project execution delays due to early monsoons and seasonal factors. This decline missed analyst expectations.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Q1FY26 tanked 66% year-on-year to ₹24.8 crore. Additionally, the adjusted profit after tax stood at a mere ₹37 lakh, reflecting a 99% year-on-year decline.

The company maintains an order book valued at ₹6,514 crore, reflecting an 11% year-on-year increase. Notably, 27% of these orders are from Adani projects, with the remainder stemming from non-Adani ventures.

Management highlighted facing a "labour shortage of 37 per cent in the months of April and May 2025." They expressed optimism that "this shortfall will further reduce starting August 2025."

Employee costs surged to 6.8% of total expenses, compared to the typical 4% to 5%, primarily due to new hires for Adani-related projects. This increase in staffing was essential for handling the new orders. Despite the current challenges, the company's management remains positive about reducing labour shortages and capitalising on its solid order book, as strategic hiring continues to support upcoming projects.