Prabhudas Lilladher has issued a buy rating on Engineers India Limited (EIL) with a target price of ₹271 in its research report dated June 16, 2026. According to the brokerage's analysis, the stock is currently trading at a PE of 19.6x/16.1x on FY27/28E respectively. The recommendation is based on the company's strong order book prospects and diversified business portfolio across non-oil & gas and oil & gas projects.
Management reiterated FY27 order inflow guidance of ₹80 billion despite an uncertain global backdrop, as reported by Prabhudas Lilladher. The current order book stands at ₹150 billion, with consultancy accounting for over ₹100 billion, providing strong medium-term revenue visibility. Infrastructure currently contributes around 20% of the order book and approximately 25% of annual order inflows, reflecting continued diversification beyond hydrocarbons.
While activity in the Middle East slowed during recent conflict, projects largely remained on track and management expects enquiry conversion and execution to accelerate as conditions normalize post US-Iran agreement. EIL recently signed a long-term (5+3 year) engineering services agreement with Saudi Aramco, which is expected to open up sizeable opportunities over time, although initial orders are likely to be smaller and ramp up gradually based on execution performance.
Management expects consultancy EBITDA margins to sustain at 22-24%, turnkey margins at 5-7%, and blended EBITDA margins at 17-18%, supported by digitalisation initiatives and flexible manpower strategy. Despite maintaining a cautious revenue growth outlook of around 12-13% due to geopolitical risks, management remains confident about sustained medium-term growth driven by healthy order pipeline and expanding overseas footprint.
Prabhudas Lilladher believes EIL's long-term growth prospects remain intact given strong order book prospects in non-oil & gas and oil & gas projects, strong traction in overseas consultancy business from Middle East & Africa region, opportunities in energy transition & infrastructure, and lean balance sheet. The brokerage maintains its 'Buy' rating valuing the Consultancy/Turnkey segments at a PE of 22x/10x Mar'28E respectively, arriving at a sum-of-the-parts derived target price of ₹271.
