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  3. Patel Engineering Board Approves Sale of Entire Stake in Associate ACP Tollways Pvt Ltd for Rs 55 Crore
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India IPO
  • 14 May 2026
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 Patel Engineering Board Approves Sale of Entire Stake in Associate ACP Tollways Pvt Ltd for Rs 55 Crore

Patel Engineering Limited's board has approved the sale of its entire 84,95,040 equity shares in associate company ACP Tollways Pvt Ltd for an agreed consideration of Rs 55 crore. The transaction is contingent on lender approvals, as the shares are pledged with the associate company's lenders, with completion targeted before March 31, 2027. ACP Tollways reported a net worth of Rs. 38.76 crore and a profit of Rs. 18.84 crore as on March 31, 2025, with a carrying value of Rs. 26.03 crore in Patel Engineering's consolidated financials as on March 31, 2026. The transaction is not a related party transaction, and the proposed buyer is not affiliated with the promoter or promoter group.

Patel Engineering Board Approves Sale of Entire Stake in Associate ACP Tollways Pvt Ltd for Rs 55 Crore

Patel Engineering Limited's Board of Directors, via a resolution dated May 14, 2025, approved the proposal to divest the company's entire stake in ACP Tollways Pvt Ltd, an associate company. The divestment involves the sale of 84,95,040 equity shares of face value Rs. 100 each. The transaction is subject to receipt of necessary approvals from lenders of the associate company, to whom these shares are pledged, and further details will be disclosed to the exchanges upon completion of the requisite approval process and documentation.

Transaction Overview

The key parameters of the proposed stake sale, as disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, are summarised below:

Parameter: Details Shares to be Sold: 84,95,040 equity shares of face value Rs. 100 Agreed Consideration: Rs 55 crore Expected Completion: Before March 31, 2027 Agreement Date: Post approval of lenders of the associate company Buyer Relationship: Not part of promoter/promoter group/group companies Related Party Transaction: No

Financial Profile of ACP Tollways Pvt Ltd

As per the disclosures made under Annexure 1 of the regulatory filing, the financial contribution and carrying value of ACP Tollways Pvt Ltd in Patel Engineering's consolidated financials are as follows:

Metric: Details Turnover: Nil Net Worth (as on March 31, 2025): Rs. 38.76 crore (1.02% of consolidated net worth) Profit (as on March 31, 2025): Rs. 18.84 crore (7.78% of consolidated net profit) Carrying Value of Investment (as on March 31, 2026): Rs. 26.03 crore (consolidated financials)

Regulatory Compliance and Next Steps

The intimation has been made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The sale agreement is to be entered into post receipt of lender approvals, as the shares are currently pledged with the associate company's lenders. The transaction does not fall under a related party transaction, nor does it involve a slump sale or a Scheme of Arrangement under Regulation 37A of the LODR Regulations. Patel Engineering has confirmed that the proposed buyer does not belong to its promoter, promoter group, or group companies.

Patel Engineering Limited has announced its audited financial results for the quarter and year ended March 31, 2026. The company reported a consolidated net profit of ₹294.50 crore for FY26, an increase of 21.60% compared to ₹242.17 crore in the previous year. Revenue from operations for the year stood at ₹5,102.74 crore, up from ₹5,093.36 crore in FY25.

Q4 and FY26 Performance

For the fourth quarter of FY26, the company achieved a net profit of ₹71.49 crore, a significant rise of 117.96% from ₹32.80 crore in the corresponding quarter of the previous year. Revenue from operations in Q4 FY26 was ₹1,421.48 crore compared to 16.12B Rupees in Q4 FY25. Operating EBITDA for the quarter stood at ₹215.23 crore with a margin of 15.14%, improving from 13.54% in Q4 FY25. For the full year, the operating EBITDA was ₹684.03 crore with a margin of 13.41%, while the net profit margin improved to 5.77% from 4.75% in FY25.

The following table summarises key financial metrics for Q4 and the full year:

Particulars Q4 FY26 Q4 FY25 FY26 FY25 Revenue from Operations (₹ Cr) 1,421.48 - 5,102.74 5,093.36 Net Profit (₹ Cr) 71.49 32.80 294.50 242.17 Operating EBITDA (₹ Cr) 215.23 - 684.03 - Operating EBITDA Margin (%) 15.14 13.54 13.41 - Net Profit Margin (%) - - 5.77 4.75

Operational Highlights

Patel Engineering secured new project orders worth approximately ₹4,400 crore during FY26. Its order book as of March 31, 2026, stands at ₹15,119 crore. The company achieved a milestone by commissioning the 4th Unit of the Subansiri Lower HEP, adding 1,000 MW to the national grid. Additionally, the company set a national record with 812 meters of TBM tunnelling in a month for the CIDCO TWT-II project.

Financial Health

Patel Engineering improved its debt-equity ratio to 0.27x in FY26 from 0.43x in the previous year. The company also realized approximately ₹185 crore through the monetization of non-core assets. The Board has approved the sale of its entire stake in associate company ACP Tollways Private Limited for ₹55 crore, subject to lender approvals.

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