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

Sir, a couple of questions. Obviously, this quarter is the worst quarter on the execution and on the margin front. So first, just wanted to try to understand what went so wrong that in the middle of quarter also, we were confident to kind of achieve a INR2,000 crores revenue, 15% margin and, versus actually, it is kind of a INR646 crores lower revenue and the margin is also way below what we were thinking 9.4%. So just trying to understand, is there any specific project, any one-off, anything what has happened to such a bad performance?

Yeah, I appreciate your concern. Regarding the revenue, this is a technical matter into one of the, few of the BESS projects, where this SPV, they are the only eligible entity, which they may get this mover advantage while importing the battery part from China or overseas. For that reason, this order book, which was into H.G.'s scope has been taken out into SPV. So that has been one of the reasons. Also, a few other reasons because of this appointed date, which we are expecting of Jharkhand 10 and 1 or 2 projects which were impacted. So this has been the big reason for the revenue as we were expecting around at least flat last year's number. But again, the margin has been because of the few technical checks for few of the projects, which, again, where the operational claims are not yet realized, which were supposed to be there in quarter 4 only. So in quarter 1, one of, 3 of the projects where the settlement agreement being executed and 1 or 2 projects likely within, say, 1 or 2 months. So those are the reasons when they are being corrected into the margins.

So sir, now how one can look at the revenue for the entire FY27, FY28 and the margin. And at the same time, also want to understand in terms of the broader, the segment-wise in terms of the HAM, EPC, railway, solar, solar is very, very less now INR86-odd crores, but the BESS and the new transmission. So whatever the new we have got and in the Welspun also the order. So broadly, if you can spell out how we want to kind of execute in FY27, that would help us. And in terms of the margin, as you are saying that 3 projects, the claim settlement is done and maybe 1 or 2 will be done. So can the margin again will start coming back to 15% odd from the Q1 itself and for full year, how one can look at the margin also?

As far as execution is concerned, whatever correction which was supposed to be there in battery projects, so now with, in the first 2 months, we have secured almost INR5,500 crores of order, so which we believe that they are started, this year would be quite a good year for us as far as execution because almost all the projects which we are now working would be in an active phase, except for the project, which was the appointed date of Pune-Shirur, which is Welspun project expected in October and the project of Odisha Ring Road expected in October. So with that, we are targeting a good amount of, say, percentage growth into this year. We are looking at about INR6,500 crores plus of turnover for the year. As far as margin is concerned, definitely, there has been big reasons across industry, which also, as I addressed in the opening remarks. So there has been a few turbulent as the metal prices as the fuel, energy. So these are all logistics. So these are supply chain disruptions, which are causing delay as well as which are causing the margin pressures, the margin are under tremendous pressure. But with this, whatever correction being done in quarter 4, likely the settlement agreement for these all 5 to 7 projects being, likely to be done in the coming quarters only. So with that, we believe that definitely, whatever positive corrections because of the last spillover would be added into this year number. So roughly, we will be around the range of 14% despite of the fact that the margins are under tremendous pressure for the year at the start for the geopolitical situation.

Thank you for the opportunity. A couple of queries. When I look at your net debt to equity at a consolidated level from FY25 to FY26, it has increased 1.3 to 1.4. So just wanted to understand what was the reason for the increase? And what are our plans in terms of reduction in our debt level?

So as far as consol is concerned, definitely with the monetization proceeds, which were delayed a bit because it was expected in quarter 3 and quarter 4 for all these 5 projects being monetized. So this is the big reason when we are seeing a bit of high number into net debt equity in consol as well as if you talk of standalone also, we are expecting this is to be drastically reduced from this INR1,600 plus crores of debt would be in the range of about INR800 crores to INR1,000 crores of debt in first half of this year.

So how much are we looking to monetize in FY27?

These are the 5 projects which we are already SPA executed, a few of the transactions already done and a few more transactions where around INR1,000 crores are likely to be received in this quarter 1 and quarter 2 only.

Okay. So that is how much that we are expecting by in FY27? It will be reduced? Any other proceeds that we are expecting to get this number further down in FY?

Definitely as per the solar project where the debt into SPVs was not, because of INR99 crores also we deposited back to bank because of the time line, which was not extended by MNRE. Now are being extended. So with the re-sanction being done by the bank SBI, now around INR350 crores of the debt would be released to SPV and entire SPV will be paying back to H.G. Infra.

Okay. Got it. And in the recent 2 transmission projects that we had received, can you quantify how much is the EPC value for those projects?

It's INR1,220 crores of roughly EPC and these equity requirement would be INR275 crores in both the projects in a span of 3 years.

Thank you for the opportunity. Can you give me a total of how much equity requirement for both the HAM and the BESS projects?

So overall equity requirement as of now, which is around INR1,200 crores. So out of INR1,200 crores, you see in quarter this FY27, we are estimating around INR760 crores, say INR414 crores in HAM and INR345 crores in BESS and energy and transmission also. In FY 28, it would be INR229 crores into HAM and INR132 crores in energy and balance is very small in FY29.

So INR1,200 crores is for both HAM and solar project, right?

Yes, yes.

And can you quantify how much amount is pending from the monetization, the total amount? Yes, in this year?

So in this year, INR203 crores already received in April and around INR900 crores plus is likely to be received in first half of the year. INR935 crores to be very specific in first half. So INR203 crores already received and balance INR935 crores additional would be there from June, July, August, September.

Yeah. So sir, on the order inflow front, you said INR11,000 crores to INR12,000 crores. So that will be over and above of INR5,600 crores that we have received?

No, no. For the entire year, we are expecting INR11,000 crores to INR12,000 crores, out of which around 50% of the order already received because the order which we were expecting INR3,900 crores, which were last year, now it has been received. So it's for the year only, we are considering for the year.

Okay. Got it. So given that, let's say, by end of FY 27, whatever the number we are saying, INR16,000 crores kind of order book is there. So for next year, FY28, how one can look at in terms of the execution. This year, you said INR6,500 crores?

Once everything stabilized, definitely, we were aiming to look at whatever is the shortfall for the year, which is last year, we have seen negative growth in revenue as well as margin was input pressure. We will try to recover back to the normalcy and expecting around INR8,000 crores of order execution in '28.

Okay. And a couple of, sir, balance sheet data point, if you can share unbilled revenue, mobilization advance, retention money, HAM debtor, solar debtor and ganga debtors?

So, you see the debtor balance is around INR1,560 crores. This INR1,560 crores plus INR190 crores is retention from debtors only old, out of which BESS and transmission do have INR128 crores and Ganga is INR195 crores for Adani and HAM is, HAM SPVs, all 7, 8 and 9 SPVs are there, INR690 crores. And railway around INR218 crores and balance is SPVs of solar around INR280 crores. And as far as unbilled is concerned, a few of the others also is there, balance is others. And on contract assets, this breakup is around INR1,800 crores that has gone very high because of a few of the projects which we are expecting COD where the operation claims and other final bills were likely to be received, but could not be done. But then here, the breakup is into solar INR116 crores and railways is INR449 crores and HAM is INR690 crores. SPV, all SPVs and Ganga is INR139 crores. And rest is NHAI and others, INR178 crores and INR215 crores.

Okay. So total, sir, put together, you said INR1,766 crores, the unbilled revenue?

It's INR1,857 crores to be very specific. BESS in transmission, yes, correct. It's a total of INR1,857 crores, out of which a breakup has been given. So, you can just take the detailed numbers from Rajeev also.

Yes, got it. And mobilization advance will be?

Mobilization advance is INR327 crores.

INR327 crores. And in terms of broader level, the capex for this year and next year, given the new projects are coming?

Not much of a capex being done last year also, not big capex, around INR50 crores of capex hardly would be there for the year for the kind of contracts we do have and the few projects which we likely to get.

Okay. And date you said by 1H, we should be reducing to INR800 to INR1,000 crores or by INR800 crores to INR1,000 crores?

Yes. We are targeting at this, once this transaction of all HAM projects as well as solar debt being recovered through SPV. So, this is a good number. And again, the unbilled contracts, this unbilled contract assets, which are likely to be built very fast now. Because all the projects are nearing COD and with all settlement agreement and final agreement being signed by the clients. So, we are hoping in quarter 2 and quarter 3, likely around INR500 crores would be received from these contract assets also.

So by September, we are looking at this INR1,627 crores debt will come to INR800 crores to INR1,000 crores and further, maybe by March with the solar debt reduction, maybe further, we can expect the further reduction?

Correct, right.

Okay. And then sir, lastly, this the equity breakup in terms of -- again, if you can specify, particularly the solar one, you said that, that equity requirement, INR731 crores has increased to INR851 crores. Correct me if I'm wrong?

So, what has happened, the bank has recalled certain loans because the time line of these solar projects where they were not extended. Now with the extension being done till 31st March '27, so again, this INR9,900 crores is going to be re-sanctioned and could be released. So put together, the total equity requirement in energy, BESS and all would be around INR345 crores.

Okay. INR345 crores? Okay, for the year, no. So currently, in solar, the number is the same, INR731 crores and then the BESS, how much?

For the year. Equity remains same, whatever additional payment we had given that will be paid back.

Yes, sir. Thanks for the opportunity. Just continuing with the previous. So, the transmission BESS and solar projects, we are funding at what debt equity ratio?

This is around 30-70. See, this is around 27%, 27% equity and rest 73% debt.

Okay. Even the Mirzapur and the Jharkhand project for financial '27 that we received, it is a similar sort of trajectory?

Yes, of course, I think it's having the similar norms.

Okay. No reason I'm asking is because you mentioned we'll be putting INR275 crores equity in these 2 projects. And if we do 70-30 sort of debt-to-equity ratio, then the gross block comes to almost like INR900 crores odd for these 2 projects and the EPC value is almost INR1,200 crores odd, so just?

So, this is the EPC value plus some interest during construction, some soft and hard cost. So overall EPC contract is including GST. Probably it is to be looked into because just 2 days back, we have received these projects. The equity requirement is INR275 crores. It could -- it can maybe just INR25 crores this side, that side.

Okay. So, you mentioned INR375 crores? INR275 crores. Okay, fine. Sure, sir. And second, on this revenue growth trajectory for the next year, almost like 14%, 15% sort of growth that we are projecting. Now is this fair to say probably the growth will be evenly across the quarters because for the quarter 1, almost like 2 months have passed. So, can we say that probably 14%, 15% evenly will be there? Or do you think the trajectory will be more of a third or fourth quarter?

I think latter half of this year would be quite aggressive because we would be seeing some big ticket size projects contributing a lot. And for first half, no doubt for the last year, what we have achieved would be roughly around that because last year, first half was quite good. Later half was quite dull.

Okay. Got it, sir. And last thing, in terms of margin trajectory, though, I mean, like your commentary did mention that like we are seeing inflationary pressure, overall system is facing that. But in terms of our guidance from 13% that we have clocked in FY26, we are projecting almost like 100% -- 100 basis point increase in '27. So, is this, I mean, like any project mix that is changing in revenue? Or what would drive this the margin increase for us?

Just the total projects which we are executing around 70% are from infra, rail and roads majorly. So that bears a decent margin of about 14% to 15%, bearing few -- 1 of the 2 projects. But then again, the other projects which we are operating like battery and transmission and they do have around 10% to 11% projects. So put together around 14% average margins are there in all these projects.

Right, sir. I think the overall guidance we have about INR11,000 crores to INR12,000 crores. This is including the one that we have already received of INR5,500 crores?

This, we are keeping the guidance because in any case, the projects which are there in the pipeline is good, but you cannot guarantee the orders, which were last 1 year, we also have waited for those orders. But again, if we are expecting that INR5,600 crores already done, so we would be definitely having an upper edge to just see this streak continued. And we were expecting INR6,500 crores odd to be added during the balance of the year in 10 months.

Understood, sir. And on the revenue front, because I think last time we had guided some INR7,000 crores odd of revenue. So, is that the similar revenue guidance we have this time?

Yes.

Understood, sir. And on the debt balance and the debt equity ratio, just a ballpark number, like what sort of are you expecting, say, by FY27 in terms of your targeted debt equity ratio you plan to maintain over here?

That number at standalone and consol level, as we were discussing that we are targeting INR800 crores to INR1,000 crores of debt by year-end at a stand-alone basis and the debt equity ratio for consol would be less than 1.

Okay. Understood, sir. And on the asset monetization, we have, I think I noted it 5 projects we have for FY27, of which we are expecting INR1,000 crores odd to be received by Q2. I hope?

Out of the 5 projects, this is the balance, which is around INR1,000 crores in first half of this year. And we are targeting to monetize the 6 projects very soon when we are going to receive the PCC for the entire year, we are looking into the further getting NOC. And by end of this year, we're likely to close this transaction also.

Understood, sir. And on the HAM equity requirement, I think I noted INR1,200 crores is the overall equity requirement that we have, '27. Equity would be INR760 crores, '28 to '29. I hope I have got this one right, sir?

Yes, you are right, I think it is the same number.

Understood. And just one thing, I think last time you had mentioned Nagpur Chandrapur execution was affected. If you could help me on that one?

No, no, Nagpur Chandrapur projects, which we have taken off from a balance order book because there is no security regarding the bid security being released by client. So with that, I think the clarity is maybe they are going to be rebidded. And once they are going to be bided soon, then we can expect further okay, if those are the projects or any of the projects from Maharashtra, we would be likely in race to bid and receive.

Okay. Because I think we were earlier planning the execution to begin by H2 FY27. So I think that is where we stand even today?

That was the initial indication because the land is the acquisition and everything is going at a very advanced stage, but we are not expecting this to, as a bid security being refund. So, it clearly indicates that it is going to be rebid.

Thank you for the opportunity again. Sir, what would be our current bid pipeline? And have we bid for any projects where the results are yet to come out?

Yes, there are around INR25,000 odd crores of projects already we have bided mostly are from roads, a few from rail and 1 or 2 from transmission and BESS as well. And further, this pipeline, which already is there is around INR70,000 crores plus in roads and around INR30,00 railways, which are visible, which we would be likely to bid in the near future.

Sorry, sir, you said INR70,000 crores for?

This is the road pipeline, which we are going to bid in the near future. INR30,000 crores of order already we had bided majorly into road, majorly from roads and rail.

Okay. And in your initial remarks, you said that we expect around INR225 crores BESS revenue. Is that right?

So this revenue from BESS or transmission and solar, like solar, we already clocked INR130 crores last year. So, this is a revenue which will be coming in SPV as EBITDA. And these are all projects, which INR225 crores in BESS and transmission and solar. This is around INR500 crores to INR550 crores of total top line yearly that we will be getting once commissioned.

Okay. And any rough idea once we get this Welspun appointed date by October, out of this INR3,900 crores, how one can look at this year and the next year in terms of the revenue?

We are roughly, we would be doing around INR750 crores in Welspun order because in initial 2 months also, these 4 months also, there's INR115 crores of utility shifting to be done, some preconstruction phases where they are going to pay us. So, these are not only after the appointed date, the full, that appointed date after the appointed date, the full execution would be done, but the first, say, a few months, we are doing that execution, which is really required and that is going to add into revenue.

Okay. So roughly for the full year, maybe INR900 crores kind of a revenue is doable in FY27?

Yes.

So next year, then it would be close to INR1,800 crores plus kind of a number should be there?

Not exactly INR1,800 crores, but definitely, it would be not less than INR1,600 crores to complete the project in this 36 month, and we are targeting that because it is having the bonus clause fully completed in 36 months, INR50 crores and it being done in INR33 crores, INR75 crores.

Okay. And the new one, this Odisha HAM, so there, do we see any kind of an issue in terms of the land or anything?

No. The projects which are now being awarded by NHAI, they do have a very good, good feature as far as appointed date would be aligned with the contract agreement concession agreement. So, within 6 months, once the LOA or concession agreement signed, we are expecting that all projects do have this beauty of land acquisition, controlled land acquisition.