Revenue surged 47.6% QoQ in Q4FY26 but EBITDA margin crashed to 5.83%.

Can you share a couple of updates in terms of like, what has been the order inflow last quarter, how we have closed the order book, anything that can be provided?

Good afternoon. In this particular quarter, there has been some order inflows from civil engineering and electrical engineering. The total orders won in this quarter is roughly of value of Rs. 1,000 crores and total contracts which are now organized, one stands at around 96 contracts. The residual value of the contracts which we have won through open bidding is around Rs. 60,500 crores and coupled with our orders, which are our legacy railway projects, that is around Rs. 41,000 crores. So, roughly, the order book of RVNL is Rs. 1,01,000 crores, which is unlimited.

In terms of also that usually we do provide the split of this order book, anything on sector wise, how this is panning out, anything that you can provide?

Our order book is spread out on various sectors. The orders which we are having from the civil engineering contracts, which is from the railways, highways, metros, the orders are around Rs. 26,000 crores. Orders which are from the electrical is around Rs. 10,900 crores and orders from signalling and telecom is of value total is around Rs. 14,700 crores. In civil engineering part, our orders are in metro sector of roughly around Rs. 10,000 crores. The highway sector is around Rs. 9,000 crores and the civil engineering sector, which includes traditional railways, irrigation etc., is around Rs. 7,000 crores. And electrical is spread over the overhead electrification that is 2 x 25 conversion in railways. Then RDSS that is a distribution system of the state transports is a major component and the transmission line also comprises of a major segment. And other than that, in the signaling sector, we have got some of the railway contracts for automatic signalling or through modernization form of coverage system and a major contract of BharatNet, in which the capital cost is around Rs. 6,800 and considering the complete O&M cost is spread over a 10-year period, it will be around Rs. 13,000 crores. And we have got a significant order of Vande Bharat manufacturing also, of which the capital cost is Rs. 8,640 crores. That is RVNL's share in the JV. That is the roughly breakup of the different sectoral orders along with the railways, RVNL.

In terms of our revenue profile earlier, at the end of Financial Year '25, we were hinting that we can clock a revenue growth of in the range of 10% odd. So, given, I think what I have seen that the 1st quarter has been a bit of muted for us and also for the industry. So, how do you see this growth number panning out for us for the full year?

Actually, let me say it. I think the situation is very much in control because of course, as expected, the proportion of turnover from railways is coming down. It is in the range of almost 25% down. But kindly appreciate that turnover from bidding has increased by 3 times. So, now, this sort of balancing will happen because the turnover from railways will continuously slide. But it will be compensated by increase in the turnover from bidding project. So, I am sure that because overall, now it is minus 3.42% as of 1st quarter. But now, I can share it that we have gone beyond, gone more than last year as we stand today. So, things will change and things will rise again. This turnover will be not only able to match last year, it will increase it also.

Particularly on the margin front, I think we are noticing there has been a bit of pressure on the margins for this quarter. So, is it fair to say it is primarily a couple of line items, like other expenses they have increased and even, like, the other line item particularly increased, which you are seeing. So, that is more to do with like, the competitive bid projects, they are entering into revenue recognition. So, their margins are a bit lower or anything that can be provided to explain the margin dip, sir?

Actually, when you see the gross margin, there is a slight dip in the gross margin by roughly 13.57%. It is due to mainly the income from MoR has decreased, but the income from projects from bidding has increased by, say, 67%. And net margin decreased, there is a reason for that because some of the onerous contracts where some loss has been recognized, they have been accounted for. And in BharatNet project, there were some pre-bid expenses, they were also accounted for roughly value of Rs. 20 crores and Rs. 40 crores due to the onerous cost. So, this Rs. 60 crores has gone into, which has decreased our PBT, and which ultimately resulted in decrease in PAT.

Sorry, sir, I just missed on that. So, Rs. 60 crores, what was the nature of that?

Yes, basically, there is a one-time expenditure in a BharatNet project in which we have done one consultancy work, pre-bid consultancy work for the bidding survey and bidding all that thing. This is a one-time expenditure which has been booked in expenditure, indirect expenditure. Further, a few commercial decisions, maybe it is too early because in most of the bidding projects we have taken on a spread basis, expenditure just started booking in these projects. That is why there may be. We anticipate that there may be some losses at the end of the project, but in due course, we are doing the value addition. We have some change of scope, which we have to get sanctioned from the plan. After that, the picture will improve. But right now, yes, we have recognized the three new projects which are onerous contracts in this quarter.

On account of BharatNet order, how much extra expenses you have booked without commensurating revenue?

Rs. 20 crores, approx. Rs. 20 crores.

Any other one-off expenses are there?

No other one-off expenses. No such other expenses.

And you feel from 2nd quarter, the revenue mix will start improving?

No. We are already ahead now. As of today, we are already ahead in revenue compared to the last year. So, definitely we are making it up by projects taken on bidding. So, revenue-wise, absolutely no issue. We will be exceeding the last year's revenue.

For JV, when the profitability from the JVs will come? Other railway JVs? Kutch railway and all?

Yes, Kutch railway. Basically, Krishnapatnam, this year they have their own profit for the first time. And in other JVs also, the traffic has improved. So, we are hopeful that this year will get dividends. SPRCL has already given a dividend. Even two SPVs have given a dividend this year. So, we are hopeful that with the improvement in traffic, more dividends will come to--

Vande project is in schedule now?

Yes, all the roadblocks have been cleared and now it is in advance designing stage and production has started in Latur factory. And we hope to see the first prototype in June 26. And after that, the regular production will start.

On Vande Bharat, I think you did mention June 26 is first prototype. So, how exactly things work after that? When we start recognising revenue, how much time it takes from a prototype to actually commercially rolling out? So, can you give some background of this?

Yes, first, as we expect the first prototype to roll out by next June, so revenue will also start flowing out. As per the contract condition, 90% of the cost of the train set will be given on production of prototype and after its successful trial balance, 10% will also be released as revenue. And once the trials are successful and proving trials are held and the prototype is cleared for regular production, the regular production will start. So, in the next financial year, that is Financial Year '26-27, along with the prototype, we expect to see the regular production of the train sets also.

This 120 train sets, this order will get conclude by when, like 27 is maybe 6-8 train sets?

2032, 5 years total. There is a break up of year wide. So, we are geared up for that. So, once it is just, our original target for September 25 to roll out the first prototype. But unfortunately, these 10 months got us this one and delayed the whole thing. So, that is why it is now June 26 and definitely in the Financial Year '26-27 itself, things will start in right turn. I am quite sure in Financial Year '26-27, we can expect revenue of at least 6-8 Vande Bharat trains.

Earlier we used to hear that, like, this 120 train sets and plus couple of peers also got 80-odd train sets, these 200 train sets, this pie is almost like 500-1000 odd train sets. So, anything that are more orders are coming or anything that can be shared as of now for Vande Bharat?

I do not think any tenders are now, as of now, in the pipeline. It is because there were some tenders about aluminum purchases and all that, but that could not be finalized. So, I think presently these 200 train sets is what it is in the pipeline.

Any developments that is happening for a couple of JVs that we have formed, any business traction that are we seeing anything, or as of now, they are still at MoU stage and more like a prelim discussion that usually happens before any business pickups. So, it is at that stage only, is that fair to say, or any updates that can be provided?

So, we have entered into couple of MoUs and we are seeing good potential coming from it, like in maintenance of the rolling stock and engines. Indian Railways has come up with some of the bids also for maintenance of the electrical engines at two workshops. So, we have already formed MoU with the two companies and we hope to compete in those projects. Simultaneously, in the nuclear sector also with the Rosatom, we are entering into MoU and we have given a proposal to the Ministry of Railways also. That is an upcoming sector and with the Government of India's focus on nuclear power in a big way, we hope to gain certain business from that sector also. And in the solar sector also, with our success in JV in Uzbekistan and Saudi Arabia, we hope to continue with the momentum in the solar projects also. And in Armenia, we are bidding on solar. With the Jackson, with whom we had a project completed in Uzbekistan and an ongoing project in Saudi Arabia. In Romania, we are going for some solar projects.

As of now, what is the international order book pie in our 1 lakh crores order book?

Which part? Around Rs. 4,000 crores.