FY26 ended with only INR1,300cr new orders vs INR10,000cr target.

On the revenue front, when now as we are saying 17% to 18%, so close to INR7,100 crores kind of revenue that we are looking at versus INR6,000 in FY '25. So just trying to get a further sense on that, that the couple of projects where we are still yet to get appointed date, so roughly around INR7,200 crores is yet to get appointed date and particularly this MSRDC two projects. So how -- if you can help us how much are we looking at revenue from these projects where appointed date is yet to be completed? And also in terms of -- if you can help in terms of the solar, the entire -- mostly the order book, INR800 crores would be completed in this year? And how much are we looking at from railways? So just trying to get a sense that how are we confident that this INR7,100 crores revenue we can get?

So definitely, this is a total order which is INR5,000 odd crores in which around INR6,000 plus crores of project are yet to receive the appointed date. But as far as solar is concerned, by quarter 2, they would all be done INR800 crores. So as far as debt is concerned, we are considering not much, but INR350 crores of this year execution as we have committed to complete those projects by December 26. So this is put together around INR 1,200 crores coming from solar and BESS only. In HAM project, they are project like Khammam-Devarapalle package, KD-1, 2; OD-5, 6; AP-1 and Karnal. They all will be completed and there are around INR800 crores of balance work, which is yet to be done in the year only. In projects like Chennai-Tirupati, and Jamshedpur, Tumkur, as well as -- these are the projects which are going to yield additional INR1,000-plus crores of revenue for the year. And look at the big number is big number is Ganga Expressway which is definitely is going to be completed is INR700 crores, which is balance, which is to be done within the year only. So we are confident that around INR1,000 crores of revenue coming from railways and then solar and BESS and the project which we are talking to, we are very fast and near to completion in these projects. And we have the appointed date as recently as being given in Jamshedpur and Tirupati, so they are big chunk of business to be done within the year. And talking of appointed date, we have the Sarkhej project, we have the financial project done and the land is all available. There is one minor correction in forest clearance which is being done. In quarter 2, it is expected to be there. As well as the Charmin package 10 and 13. So this is the project where we believe that it has been delayed significantly but with the forest clearance already now nearing closure. So we are expecting by quarter 2, the appointed date would be there. And as per the season starts in later half of the year, we are confident to have a good number. So irrespective of the fact, Nagpur-Chandrapur project may not yield anything in the year, but we are confident that these are the numbers which gives us more than INR7,000 crores.

Just broadly in terms of for FY '27 also, given the INR11,000 crores kind of inflow that we are looking at this year, if we get it, the similar kind of a 15% plus kind of revenue growth should be there in FY '27 also?

Yes. Of course, I think with the orders of Nagpur-Chandrapur converting into the appointed date and the other INR11,000 crores more addition, we are confident enough that INR8,000-plus crores can be done in '27.

Just a couple of data points on the balance sheet front, sir. If you can help us with the mobilization advance, unbilled revenue, HAM debtors and solar debtors.

So as far as the mobilization advance is concerned, it is at INR410, but it actually is INR190 crores from the client. So there has been, in the debtor part, which is the incremental solar is INR585 crores, which is to be netted off with INR220 crores because some of the SPVs, the advance has been paid and some of the SPVs there is a debtor balance. So typically, it's INR220 crores less than what has been there. So as far as unbilled is concerned, definitely INR1,300-something crores is almost the same as last quarter. But there is likely to be a significant dip in the realization for the year as all the projects which are nearing completion, which we are hoping last year, all these projects will get convert into the revenue as unbilled and HAM SPV, as well as there's Adani project, which we will be completing. There is some variation items which are being realized now, as well as the other projects which we are talking where the NHAI, old UER, as well as DB89. So all these put together where the unbilled is significant is likely to be realized within this year in quarter 2, especially starts from quarter 2 to quarter 3 and 4.

So just wanted to check on margins if we are guiding for or we are targeting a 40% of the contribution to our books in next 2 to 3 years from the non-road highway segment. So how do we look at the margins going forward? Like would it remain in the range of 15%, 16%? Or we can see some dilution because the segments we are catering to, or we are targeting are a bit competitive in nature? And would it sort of dilute our margins going forward?

As we are expecting that definitely the execution due within the next 2-3 years can come to 60% from roads and other than roads, railway, it can be solar or BESS or even transmission or water. So looking into this sector where the margin in historical past has not been revealed so good, but we are expecting that as we are doing in a few of the railway projects, the margins are equally good at about 12%, 13%. At the EBITDA level, it is around 14%, 15% rather. So in solar, we did well, and the margins are really good. So looking at these opportunity, again, averaging out with the HAM projects likely in railway, roads, which are to be -- we are expecting where the competition, which has been so intense last few years is going to be cooled down. So with that, we are expecting 15-plus margin to 16, that is quite manageable.

Apart on this, the recent notification which came out from the NHAI about land clearance on what they've been highlighting that land clearance should be done before tendering or putting on that. So how do we think like in terms of inflows going forward or, say, for a coming year also, that would it be easier for us to get more of such orders from the NHAI? And how do we see the tender pipeline also for the coming year and next 2 years in that terms?

So definitely, this is a good move as such for concessioners and NHIA is concerned because the land should be in place while first to even start tendering and awarding an appointed date. So -- but now as the time is being -- say significant time is being taken in those things, for that 25,000-odd kilometers, which as their PCUs are qualifying for 4-lanes where the land is all available. So they are targeting to see those projects where the DPR is at an advanced stage can be awarded for the year. And subsequently, as to green project, this green expressways or other projects where the land is likely to be as they are looking within there is a significant -- this has been done. So with that advancement, we are expecting those projects as well, which were available in the bidding pipeline last and last year also likely to be awarded this year.

On the working capital, we have seen that in FY '25, there is an increase in working capital. And what sort of working capital do we target for the coming years? If you can just highlight the reason for FY '25 also and the coming years, what we are targeting?

So there has been 2 reasons as far as working capital is concerned. We have gone to for the say, short-term loans, as far as to see the mobilization advance because the mobilization advance is actual is INR190 crores, and we have taken this call to take it from banks. So there's a very short mobilization advance -- in lieu of mobilization advance, there is FTL. So we are being recovered as we are progressing into execution of all these projects. So one thing; also, there's a mean term in that particular because of the solar locking the prices of the module as well as inventory, which has now gone very high, around INR550 crores because of the solar inventory only. So this is going to be consumed within the year. So ultimately, from the -- as we are completing this EPC, we are getting payments from tentative INR2,000 crores-plus crores from banks only through SPV. So this is going to be mellowed down by quarter 2, as well as by year-end, it will come down to a very reasonable number.

Sir, I missed on the appointed date part. So for -- you mentioned that for Nagpur-Chandrapur, both the packages, we are not expecting any revenue. So earlier, you were targeting roughly INR250 crores in FY26. So they are not targeting anything for this?

Since as of now, the land acquisition, where the realignment is being done because of some coal blocks encountered in that alignment, old alignment. So they are not getting the NOC from the coal -- Western Coal Field. So that is the reason behind they are changing some alignment. So this is taking some time. So as soon as they are acquiring 70% of the land, they will be issuing the LOA tentatively by this quarter 2 end, the LOA. And we are not expecting, anything is not being done because of the appointed date. So that's why we have taken out that particular project where the contribution may come or may not.

Secondly, on Varanasi, you mentioned that it should be in Q2 the appointed date. So execution can be around 30-odd percent for the year?

Yes, definitely because with the mobilization already done, we have tracked big amount of aggregate and everything has been done. So we are very suitably poised as soon as this appointed date by this quarter 2 in August and September, we are expecting. Because the forest clearance is now at a very advanced stage of about 70% to 80% land here. So with that, we are expecting that all execution will be where the mobilization done, as well as the project which we are completing very nearby. Therefore, will be done taken up, and we are expecting more than INR700 crores of revenue coming up from this project only.

For Bahuvan, what will be the appoint date target?

UP Marg, likely by year-end because very recently, within 2-3 days, we are going to sign the concession agreement. So 5 months from now, we can expect by this October, November where the financial closure and other things are done. So in quarter 4, we can expect the appointed date.

In terms of overall opportunity, so in terms of highways, are we looking for bidding for BOT projects in FY26?

No, BOT, we are not interested as of now.

Sir, my first question is you had guided for INR11,000 crores to INR12,000 crores worth of projects in FY25, and we have received only INR9,000 crores worth of projects. So can you highlight something on that part?

So initial estimation was supposed to be INR10,000 crores, and we added around INR8,500 crores, is it? We projected at around INR10,000 crores of order addition initially, and we completed at around, say, INR8,500 crores, that is the whole year. There is a loss of this thing around INR1,500-odd crores because of this highway order, not many of the orders or much of the addition has been done.

This year, we are targeting INR11,000 crores, right? And sir, are we seeing any further big opportunities in railway station redevelopment side?

Right. We are expecting that we already have taken two projects. One is in Kanpur as while doing those projects, we understood that the initial phase definitely being brownfield, some permissions, some kind of chartered utility shifting took place time to -- but thereupon, it's quite a good -- reasonably good margin. So that's why in New Delhi, we have participated along with the partner. So looking into these opportunities going further, definitely whatever project comes in.

Sir, I wanted to understand more on what is the right to win here. What is the execution which we do? What is the proportion of bought out components? How does cost escalation pass-throughs work? Or are these more like a fixed price contract? And in a typical scenario, going forward, other than the solar projects which we are executing, what kind of EPC margins are doable? Is it around 10%, 11% or 12%, 13%? What type of margins can we do here?

So what we have understood as far as all battery projects, it's around 12% to 12.5% so that is the EPC level. And the bought items in that also, it is around, say, 65% to 70%, even more in battery. But then again, if you're talking of solar, it's around 70% of the bought-out items and rest is all land and other area, which is civil works. So keeping a margin of about 12% is the range which we would be looking for future bids. And this is a fixed price contract. There is no price escalation, which is to be paid until there is a change in law parameter which is affecting your project.

I missed the number on equity investment in solar as well as battery storage currently. How much we have done and how much we will do in FY26-27?

So in FY26, it's around INR750 crores, out of which around INR360 crores to HAM and INR391 crores is the solar and battery. And subsequently in FY27, it is around INR197-odd crores in HAM and INR460 crores in battery because solar will be all done.

So all in all, in totality how much we will invest in next 2 years in HAM and solar and in battery storage?

As of now, project which we have taken is INR1,360 crores yet to be infused.

And sir, what would be our capex guidance in FY26 precedent?

There is not much of the capex is required because we do have heavy capex ready where these projects which we are talking that we are on 8 projects, mega projects where all completion being done within this year till quarter 2. So any, say, project equivalent to INR6,000 crores to INR8,000 crores where we want to mobilize railway or even highway is adequate capex is available. So hardly, it can be just INR20 crores-INR25 crores for any key critical equipment if required.

Firstly, I wanted to check it out in this year, I mean, in the revenues of INR6,050 crores, what would be the broader breakup in terms of the solar, railway and road project?

So in UP, Ganga Expressway was one of the bigger contributors at around INR1,644 crores and HAM INR1,586 crores. Solar did contribute to INR1,430 crores. So these are major ones with railway INR445 crores and other EPC INR965 crores.

Sir, I mean, this year also the investment in the subsidiaries has increased from INR628 crores to INR1,368 crores. I mean, overall investment on the balance sheet side. So this is primarily into the solar project, which we have invested? Or how should we look into it?

As we were discussing from last Q2 to now, so this is because the typical nature of the project where the commissioning is a period of 6 months maximum. So within that duration, we need to pump in funds from everywhere wherever possible. So it is because of that reason only.

Finally, I just wanted to check it out in terms of the pipeline opportunity on the solar and water and river linking side, if you can throw some light, how should we look into this opportunity going ahead?

The central government is now checking upon the opportunities into river linkages, which is Ken-Betwa as well as the Eastern Rajasthan Canal that is INR80,000-odd crores as well as in Bhadra in Rajasthan and in Vidarbha. So there are many more projects where the central government is interested and they look like they will be approving and going ahead with this opportunity. So, these projects unlike JDM, they are different kind of projects. Also in water projects in Rajasthan also, we have seen in one of the HAM projects where bids are invited with 10 years of O&M HAM projects. So those are the projects which we look forward where we do have some, say, qualification restrictions, but we are looking at the joint venture partner to look further as well as in solar, we are only looking into those bids where the margins are intact around this one. We don't want to go very aggressive into any solar or transmission.

And secondly, on the HAM monetization, so the first 4 projects, full money is already accounted for in the fourth quarter result. Is that right? And the 6 additional HAM projects, sir, which are supposed to be monetized, I'm guessing we are having around INR750 crores invested in that. So that money should come back in this year with some accretion.

Yes, definitely, it has been done. The total equity into these 6 projects is equivalent to INR900 crores plus. And the debt probably is around -- as of now, it is around INR2,100 crores into these 6. So we are looking into this monetization as we are completing PCC of 4 projects already, we have received. So with that, within 6 months, we can do that entire transaction. By the year-end, possibly, we would be looking that this entire money can be taken back.

Sir, we mentioned that we want to be like a future-ready multi-sector construction company. Now one doubt on that strategy that I have is that if I look at all these multi-sector construction companies which are listed currently, none of them are able to even reach 10% sort of a margin. So what gives us the confidence and we have been a company, sir, where 16% margins were the norm. So if we go down that path, will we be able to protect the kind of margins that we had or we will also slide down to barely double-digit sort of EBITDA margin company?

For sure, I think what you are talking, we have seen all maximum companies with multisector. Multisector is not that we -- prime focus would definitely be the highways only. We are seeing that there is a big amount of work which is to be done in the highway. It's not that case, the highway is not done. So it's the only last 2 years which we have seen because of the last 3, 4 years because of the price -- the cost competition and aggression as well as this slowdown because of this project awarding. But then again, there are strong pipeline in this particular. So roads always will become -- will be our prime product. Apart from that, yes, definitely, if we are not looking into just railway, just metro as urban infra, we already had done UER Delhi, UER project where the urban is involved. Metro, we have -- Gurgaon Solar, we have done. So there are the viaducts, which we are doing, Jamshedpur, we are doing. This is a 9-kilometer viaduct. So with that, this gives us the opportunity into urban infra also without compromising the margin, we are not confident that 100% it is possible to make 16%. But within the range of 15% to 16% over a period of 2, 3 years, it is quite possible.

Just can you help me out with the number that four HAM projects we have monetized. What was the total equity investment we have done for those four HAM projects? And what is the value of the total...?

Just one by one. I think it was INR373 crores, which we added equity inclusive equity in four HAM, out of which INR503 crores already realized and there's around INR20-odd crores, which is likely to come within this year. Around 1.5x.

And one more question that is Rewari Bypass Package 4. So, I think we have got a good valuation on the project. The price to book value is quite higher as compared to other 3 of our HAM projects. Am I correct? What makes that valuation a little higher?

Yes. It all depends upon the project complexity. So wherein it is a price indexing being done because of the WPI and CPI index. So it's one thing as well as the cost of O&M, which we value and the other partner value who is taking over the project. So as we are discussing in these 5 projects also, they are the dynamic parameters, which one project can yield very good, even 2x. And one project can only yield 1.1 to 1.2. So averaging, this is the number which we are looking at.

Sir, are we L1 in any of the projects which we haven't included in the current order book?

No, no. Only the project which we got in April 25, that is the battery project is not added here. That's around INR700 crores. That is not added here.

Sir, I didn't get the number of order pipeline which we have for FY '26 and the amount of bids we have already submitted for.

Around INR16,000-odd crores of bids already done across various sectors, majorly highway and railway. And so we are expecting to be the bids and bid pipeline go down. As far as NHAI concerned, is INR80,000 crores NHAI, and other think it's all rolling kind of a thing. We are not having 100% accurate data.

I just wanted to know like the guidance which you gave start -- like you're targeting INR7,000 crores for FY27, right, if I'm not mistaken, with the margin of 15%, 16%, and we keep that growth momentum going forward. Is my understanding correct despite Chandrapur-Nagpur project not fructifying?

Yes, definitely. As we are concrete on the numbers, the figures are quite confident -- we are confident that we will be doing more than INR7,000 crores for the year FY26.

Do you see any opportunity in airport or runway EPC going forward?

Yes, EPC, definitely there are many airports where the EPC bids are invited like Varanasi, Kota already in the pipeline.

I would like to inquiry about how the company is concentrating on the southern region, particularly the development of Amaravati Capital of Andhra Pradesh. How closely you are monitoring progress of tendering projects either individually or joint venture?

So we have not yet initiated anything in Amravati development as of now because it's not that we are not interested. But definitely, as the time comes, we may look into any bit.

First is that we had entered the water segment around 1, 2 years ago, but we haven't seen any major order wins or any order wins from this segment. And other thing is one of your competitors stated that road project ordering has slowed down due to -- the government is looking to change the bidding norms due to increased participation from low-cost contractors. And the third question is, this intercompany adjustment has been a volatility on the financials.

So your last question can be very well answered. It's only a time gap that definitely the margins which we are reporting at the standalone level, they are the right margins. And any elimination which is being done now intercompany between SPV and EPC is going to be seen being corrected in subsequent years. So the margins are like definitely would be coming back into consol only. The second thing is the water sector as we have done and we have tried because in the recent past, we have seen in JJM, there has been lot many budget issues, a lot of budget issues, the payment being struck. So we dropped the proposal at that point of time, though very ready with bids. But now this water interlinking, river interlinking projects and we -- what is a water resource department this is not drinking project. So there, we look like it is a big infrastructure capex to be done. So these are the one. I think the third is what we were looking at the prequalification where the crowded space of roads, they have taken this water project. It's not that the prequalification is very simple that anyone who has done this water sector projects will only be qualified, and the JV is allowed, we are looking to the JV partnership.

So means can we see this intercompany adjustment not impacting the financials from this financial year?

Definitely not because it's a quarter-on-quarter if you compare any number. This last quarter, the solar contribution was not there. So we have seen a big number impacting Q4 and entire year as well. So this is not going to be there.