My first question is on the Defense side. Is it possible to help with the top line and the investment we have done till date in Defense?
As I said, I think we will -- thank you for the question. As I said, we will update on Defense. I said in the -- on the Defense side, we will update fully as a segment in detail from the first half of next year. So post the September results.
Okay. And if you can just touch on the data center partnership with Google. I believe on the last call, we had talked about the partnership. And I think you had mentioned that you would give more details around spending and other metrics, hopefully, on this call?
It's a little bit too early at this point. Just to give you an idea, we are just currently working through with the relevant agreements, and so there's nothing that we can share which will be complete. And naturally, we have to also work jointly with the counterparty in that case. But we expect to have a much clearer rollout and take up planning from the likes of Google and other partners. Probably, I think given their timelines and what we are aware of, probably say it's about another quarter to 4 months away before we will be able to publicly share the rollout plans.
On Navi Mumbai Airport, we started like 25th of December in terms of ATMs and daily flights and probably it will move to like a 24-hour airport sooner. Earlier, we were doing like, I think, in the start, 5,000 passengers per day. How has the run rate of passengers improved because there seems to be like a challenge on constrained capacity environment at this point? And how are you looking at FY '27 in terms of volumes for Mumbai and Navi Mumbai combined airports?
The volume details and movement, we will confirm and we'll provide between the two airports as part of our annual results. But just to give you an idea, the second phase construction will start just after the monsoons this year itself, 2026. Already the slots are fully taken up by the airlines at Navi Mumbai Airport. So in fact, Phase 2 construction will start. But in terms of the overall system-wide traffic impacts and everything, we will provide much more detailed and clear outlines as part of the annual results because we have a couple of steps to do in relation to capitalization of the asset, in relation to the provision of RAB, which we will do this quarter.
Are you expecting some shift of traffic from Mumbai to Navi Mumbai Airport here? And also a related question, I know that we had like pushed out the Mumbai Airport renovation of Terminal 1 to later date. Is there any update on that?
No, not on that. Our first priority is to stabilize the two airport operations from operations perspective, which we expect to do and start the second phase construction at Navi Mumbai, and then we will look at Terminal 1 post that.
You talked about Adani GCC. Is this for like internal businesses of the Adani group? And is this going to be a meaningful revenue or profit contributor to the business or just a support business for the group? You talked about AI and Agnetic AI, we are like looking to develop capability.
So it is currently internal to the group and because it will become the lab through which the agentic AI will get deployed across the group.
On the 6 GW cell and module line, when do we expect the commissioning of this line?
The new lines would be expected to be ready by 30th September this year.
On the gains that we have booked in this quarter, what is the tax impact for the gain?
It will be taxed at 15%.
On the Airport business, so can you help us with the commission assets in the last 12 months in our Airport business? The assets commissioned in the Airports business over the last 12 months.
There are no commissioning as such on Airports. Airports, the only asset we added was Navi Mumbai Airport.
For this Navi Mumbai Airport, for FY '27, aero and non-aero side, how one should model for this? And related question is, do you expect losses in the interim till the traffic picks up in this airport?
No. Airport is a regulatory asset, so there is no question of any losses. On the aero side, the way to model it is to take the regulatory asset base. Provisionally, it will be high teens close to INR 20,000 crores. And on the regulatory asset, the weighted average rate of return is expected to be around 12% to 14%. The RAB works in the following way. If you take the operating cost efficiently incurred, then capital return, which is depreciation and amortization, then weighted average cost of capital, plus notional tax to be paid will give rate of return on the regulatory asset. So on a regulatory asset, until and unless there is a serious issue, there is not a question of a loss.
I just had a question on the Airport business. I see that the growth slowed from the second quarter to the third quarter, maybe if you can just talk about that. And then also just touch on when we should start seeing any improvements in the integrated resource management, mining, some of the legacy businesses, which obviously have been under pressure. So maybe if you can just give us some context around airports, what happened in 3Q? Obviously, we all know about the Indigo fiasco. I don't know if it had anything to do with that.
No. Actually, the growth is well over 30%. It's just that the numbers that we mentioned, we have taken out a onetime element. There's no specific issue regarding Indigo in relation to the Airports business. Even if you look at segmental part of airport, if you look at individual growth in relation to our presentation deck on Page 23 of the presentation, you'll see that it's gone from INR1,100 crores on a quarterly basis to INR1,568 crores. And the underlying, even if you look at the non-aero, aero breakdowns, they're all plus 25% growth, and we expect that to continue in the Airports.
What I was looking at was the sequential growth. So when I look at the Airport revenues that you had in the second quarter, it had Y-o-Y growth of 43%. We're at 32%. I'm just going to reconcile if there's anything we should take away from the sequential portion, the 42% in 2Q '26 versus 32% in 3Q?
No. I think what you will see is that actually that number will again accelerate only because it's a timing of various accounting of regulatory assets. So as the regulatory assets kick in, you will see that you will have the revenue from those regulatory assets come in at different times. And there can be small changes in terms of mid-period determination of regulatory rate of return. Navi Mumbai Airport itself will add on a regulatory basis, a regulatory aero-side EBITDA itself of once we fully account for the timing difference. But on a normalized run rate basis, of about just over INR2,000 crores to the EBITDA line itself against our current EBITDA of around annualized EBITDA of around INR5,200 crores. So just one asset will add about 40%.
And then switching to the legacy businesses. Maybe if you can just help us understand the pluses and minuses of what's going on in those businesses?
The main thing there is that, as you know, that we flagged it last time also, a slight delay in the ramp-up of Kutch Copper. But we expect that now the full utilization should start over the next 2 to 3 months. So you'll start seeing the numbers in the first quarter of the following financial year. And at various utilization rates, say, if it is 70%, then it will add roughly INR2,800 crores of EBITDA; if it is 80%, around INR3,100 crores. And then there's a further refining element to it, where the EBITDA can go up by another 20%. But assuming that secondary refining is not there, then we are confident of utilization rates of between 70% to 80%. So that should give a high INR2,000 crores EBITDA addition in that business. The main variability for us in that business always remains the Integrated Resource Management given the continuing sort of global/domestic interplays. Otherwise, our MDO business is on track. It's grown to 25-odd percent.
You've been very busy on the capital markets front. If you can just give us a sense of what else we should be expecting? And then I think what would be helpful is to have a proforma capital structure. I think you gave the figures for 12/31, but just to understand even with the current financing that was just completed in the last week or so, if you can just give us a sense of what the debt stack looks like at this point?
Yes, we will actually provide a lot more detail, but just basically, our incremental total external debt now is roughly around over INR36,000 crores (that is allocated to our incubating businesses). And overall, just to give you a basic long-term debt number, the gross long-term debt is about INR78,000 crores. So give or take, just under $9 billion. We have some -- still some shareholder loan outstanding of about just under $2 billion. So the external debt of that would be ~INR 62,000 crores. So ~INR 78,000 crores being the total debt, ~INR 16,000 crores being shareholder loans, giving us a total external debt of about ~INR 62,000 crores. Of this INR62,000 crores, majority, INR 37,000 crores is just allocated to the -- is actually Airports, Roads, Kutch Copper and the current PVC under construction. What we can do is we can give you a pro forma also post results.
Firstly, can you discuss like this Airport segment EBITDA grew like 40% year-on-year. There's a mention of nonrecurring items also in that number related to lease income. What is that number?
INR 220 crores, one-off. Non-recurring. This is largely for the specialist hangar development and advance received against that. So that's how it gets accounted for.
Moving on to other segment, like Road segment has been doing EBITDA of like INR1,500 crores to INR2,000 crores in like past 2 years. With the commissioning of Ganga Expressway soon, how do we expect this business to ramp up in FY '27?
Basically, Ganga Expressway should just double the size of EBITDA of this business, which is currently INR1,500 crores EBITDA that is sort of run rate.
Last question on your coal to PVC timelines. Can you discuss where is that project? How much is the capital employed till now? What is the total project capex and the timeline?
I think from a revenue perspective, we should look at calendar year '28. And completion point of view, base completion towards end of this year and then ramp up, which will continue in that business, you can estimate roughly 6 to 9 months. obviously, we'll provide a lot more detail closer to the event. But currently, our capex that has already been expensed on that business is in the vicinity of about INR9,000 crores, so just over one-third of the capex.
One last question on your total capex target for FY '26 and how much has been incurred till -- in first 9 months?
So our total target that we had outlined was roughly INR36,000 crores, and we have already done just about INR25,200 crores.
Sir, are we expecting any contribution from copper side in Q4 as well? Or it will only start from Q1 next year?
Q1 next year.
Ganga Expressway, this provisional completion certificate will come in next 2 months itself? In terms of toll collection and all, it will start from Q1 only, not material in Q4?
It will come in the next month itself. Not material at all in Q4.
The 6 GW cell and module capacity, which is going to be completed by June as your last timeline. So what is the capex required for this?
The total capex for this project is around INR10,000 crores and it is on schedule completion. So we expect it to be ready and producing by September 2026.
Do we have enough order once we have this 10 gigawatt capacity because currently, run rate is about 4 GW. So for at least FY '27. So we can supply -- once we have the capacity, run rate could be 2,000 megawatts per quarter?
It depends on capacity only, we have enough orders. Yes.