SPML Infra shares jumped 8% after it Turns Debt into Equity

Synopsis: SPML Infra shares jumped 8% after the company converted part of its debt into equity, allotting 11.44 lakh shares to NARCL at Rs. 276, reducing debt burden and strengthening its balance sheet.

This company is a leading infrastructure development company in India, delivering end-to-end solutions in water treatment and transmission, wastewater management and recycling, and solid waste management is now in the spotlight after allotment of new equity shares after converting an existing loan into equity.

With a market capitalisation of Rs. 1,283 cr, the shares of SPML Ltd are currently trading at Rs. 177.60 per share, increasing 8% in today’s market session, making a high of Rs. 185, up from its previous close of Rs. 170.95 per share.

SPML Infra has informed that its board has approved the allotment of 11.44 lakh new equity shares after converting an existing loan into equity. These shares, with a face value of Rs. 2 each, have been issued at a price of Rs. 276 per share (including premium) to National Asset Reconstruction Company Limited (NARCL), which is a non-promoter entity. This decision was approved through a circular resolution dated December 31, 2025.

In simple terms, instead of repaying part of its loan in cash, SPML Infra has converted that loan into shares and given them to NARCL. This helps reduce the company’s debt burden while slightly increasing the number of shares outstanding. 

SPML Infra Limited is a leading listed infrastructure company with a strong track record of executing over 700 projects across India. The company operates under EPC, PPP, and BOOT models, delivering end-to-end solutions in water treatment and transmission, wastewater management and recycling, solid waste management, power transmission and distribution, and civil infrastructure development.

It demonstrates improving fundamentals with a ROCE of 8.91% and ROE of 7.78%, supported by a moderate debt-to-equity ratio of 0.44. The company trades at an attractive PEG ratio of 0.06, reflecting strong growth at a reasonable valuation. It has delivered an impressive 48.6% profit CAGR over the past five years, indicating consistent earnings momentum.

The company reported mixed performance for Q2FY26. Sales remained flat year-on-year at Rs. 188 crore compared with Rs. 189 crore last year. EBITDA declined 31% to Rs. 8.8 crore from Rs. 12.8 crore, while net profit rose 15% to Rs. 15.0 crore from Rs. 13.1 crore. EPS slipped 5% to Rs. 2.10 from Rs. 2.20.

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