Revenue from operations surged 108.01% to Rs 76.57 crore in Q4 FY26 versus Rs 36.81 crore in Q4 FY25.
Profit before tax stood at Rs 13.61 crore in Q4 FY26, up 77.21% from Rs 7.68 crore in Q4 FY25.
Total expenses increased 115.35% to Rs 62.84 crore in Q4 FY26 as against Rs 29.18 crore in Q4 FY25. Cost of materials consumed stood at Rs 3.91 crore (down 0.76% YoY), employee benefits expense at Rs 5.41 crore (up 49.03% YoY), and finance costs at Rs 0.92 crore (up 24.32% YoY) during the period.
On a standalone basis, the company's net profit surged 75.86% to Rs 10.20 crore on 108.01% increase in revenue from operations to Rs 76.57 crore in Q4 FY26 over Q4 FY25.
Desco Infra said moderation in overall PAT margins is due to its expansion into the power and renewable EPC segment, which operates at relatively lower margins compared to its core city gas distribution (CGD) business. However, the CGD segment continues to deliver stable and healthy margins.
The company said its diversification into the power and renewable EPC space is a strategic move to enhance long-term revenue visibility, expand market presence, and build a balanced infrastructure portfolio. It added that a robust order book positions it well to capitalise on emerging opportunities in the infrastructure and energy sectors.
As part of its green energy push, the company is scaling operations through its wholly owned subsidiary, Desco Bio Green. The arm focuses on renewable energy solutions, supporting diversification into sustainable businesses and aligning with India's clean energy transition.
During the period, the company acquired Shri Green Agro Energies, strengthening its presence in the energy and infrastructure ecosystem. The acquisition provides access to key government approvals, helping reduce project gestation timelines, accelerate execution, and improve operational efficiency across geographies.
In line with its global expansion strategy, Desco has incorporated a wholly owned subsidiary, Desco Global FZ-LLC, at Ras Al Khaimah Economic Zone (RAKEZ), UAE. The entity will serve as a hub for international operations, enabling access to global markets, clients, and partnerships.
Commenting on the performance, the management of Desco Infratech said, FY26 was a transformational year, driven by strong execution, business expansion, and growth across both city gas distribution (CGD) and power and renewable EPC segments.
Revenue from operations nearly doubled to Rs 118.79 crore in FY26 from Rs 59.61 crore in FY25, marking a 99.28% YoY growth. EBIT rose 76.30% to Rs 23.43 crore, while net profit increased 80.87% to Rs 16.38 crore.
The CGD segment remained the key growth driver, reporting revenue of Rs 83.24 crore and PAT of Rs 12.84 crore, with a margin of 15.42%. The power and renewable EPC segment posted revenue of Rs 35.37 crore and PAT of Rs 3.53 crore, with a margin of 10.01%.
The company said higher business activity and project execution led to increased working capital deployment, primarily towards receivables and project mobilisation. Net cash flow from operating activities stood at negative Rs 17.95 crore, compared with negative Rs 12.10 crore in the previous year.
Management said it remains focused on improving collection efficiency, optimising working capital cycles, and maintaining financial discipline to support growth.
The company expressed confidence in future growth, supported by a strong order pipeline, rising demand, and strategic expansion initiatives, including the acquisition of Shri Green Agro Energies and expansion into the UAE through Desco Global FZ-LLC.
On its outlook, the company remains confident of sustained growth going ahead, backed by a strong pipeline of projects, strategic acquisitions, and continued international expansion initiatives.
Desco Infratech is an infrastructure company focused on engineering, planning, & construction, particularly in city gas distribution, renewable energy, water, and power sectors.
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