DESCO posts 107% revenue jump

DESCO Infratech’s latest numbers are really a story about a contractor changing shape. The company, listed on the BSE SME platform, reported FY26 revenue of ₹118.8 crore, up 99.3% from ₹59.6 crore a year earlier, while profit after tax rose 80.9% to ₹16.4 crore. But the interesting part is not just the jump. It’s where the growth came from. DESCO is still rooted in city gas distribution work, but it is now building a second business in power and renewable EPC — basically using the same field-execution muscle in a new lane. (scanx.trade) ### What does DESCO actually do? DESCO is an infrastructure execution company from Surat. For years, its core business was city gas distribution — pipeline laying, MDPE networks, and last-mile connections for gas utilities. That kind of work is messy, local, a(scanx.trade)y work is the base it is now building from. (descoinfra.co.in) ### So what changed in FY26? The business stopped looking like a one-engine company. In FY26, DESCO’s city gas segment generated ₹83.24 crore in revenue, but the power and renewable EPC segment added ₹35.37 crore. That second piece is the giveaway. It is no longer a side experiment. It accounted for roughly 30% of total revenue, which means diversification is already visible in the reported mix, not just in management talk. (scanx.trade) ### Why is underground cabling such a logical move? Because the hard part of these contracts is often not the cable itself. It’s the civil execution around it. If a company already knows how to dig, lay assets underground, coordinate crews, restore surfaces, a(scanx.trade)ansion is “capability-led,” built on execution discipline developed in gas infrastructure. (descoinfra.co.in) ### How strong were the profits? Strong, but with a small catch. EBIT rose 76.3% to ₹23.43 crore, and PAT rose 80.9% to ₹16.38 crore. Net worth also increased to ₹70.85 crore, while debt-to-equity stayed low at 0.2(descoinfra.co.in)ightly less profitable. (scanx.trade) ### Is this a one-off spike? Probably not — at least the pipeline suggests otherwise. DESCO said its order book stands above ₹345 crore, with a tender pipeline of ₹650 crore. It also picked up ₹40.43 crore of purchase orders in February from KP Group entities tied to solar infrastructure and cable laying in Gujarat. That matters because it shows the diversification was backed by actual contract wins before the year closed. (scanx.trade) ### Why does the SME-market angle matter? Because on the BSE SME platform, investors often look for one thing above all else — proof that a small contractor can scale without blowing up its balance sheet. DESCO’s FY25 revenue had already doubled to ₹59.45 cror(scanx.trade)ike a small platform for utility infrastructure execution. (theprint.in) ### What’s the real takeaway? The headline is revenue growth, but the deeper story is business-model expansion. DESCO is trying to turn underground utility execution into a reusable operating system across gas, power, and renewables. If that works, growth can stay high. The c(theprint.in)day, but now. (scanx.trade)