On the margins, though you did clarify it is coming from one of the JV work that we are doing. So, is it fair to say, is the work has concluded and probably we'll have a better margins from quarter one of FY27, or do you think probably the base of 4%, 4.5% EBITDA margin is a new base for us?
PAT looks lower in this quarter, but if we adjust for the onerous contract of INR 54 crores, and we have paid municipal taxes on new building, and we have readjusted after reconciliation of our SPV amounting to INR 35 crores. So, you will see that the PAT is slightly better than the last year than the last quarter. So definitely, now the adjustment for the onerous contract has been done, and we are hopeful that we will definitely improve our margins in the first quarter of '27 year. Thank you.
Should we expect it, like from the current quarter itself, June quarter onwards? Like the top line growth and followed by the margin growth to be start seeing?
Yeah, definitely, QoQ, year wise, definitely there will be improvement. But you know the quarter -- the first quarter will be slightly challenging for us, but we are hopeful to achieve the targets and have a good revenue and good profit, good margins.
In terms of our order inflow, though you did clarify stand alone and, this is FY26 and quarter four. For the JVs can you also share what is the inflows in quarter four and FY26?
JV, we have got one work in recently from railways, which is a bidding work of INR 400 crores right now. And we are expecting that we should get more work in future, definitely.
A lot of cost inflation that we are seeing in terms of the commodity prices and other things. I understand nomination order, which is almost INR 45,000 odd crores, the things are passed through. But in competitive bidding, is it a fixed price contract or there are escalations?
There are different types of contracts. Some are fixed contracts, some are dynamic also, but in most of the contracts we get the price variation, which controls the fluctuation of the market. But definitely, challenges will be there, yeah.
What steps the company is taking, so that fast track execution can be cleared on priority, in terms of like automation or steps that are being taken, which helps the company to enhance the execution capability.
You know, the main challenge that we have seen for us is faster execution. Then only we can have good revenue and good margins. So, our whole team is focusing on it. We are using latest technologies. We are using a pay model, which give us the 5G functions, which gives the progress, financial progress, and planned progress versus the actual progress. We are using drones for the site in inspection, and we are using many kind of softwares with pure dashboards and give us the performance on -- all on our dashboard. So many things are being done at every level, from the supervisory to the top management, and our focus is for the faster execution of the work and timely execution of the work.
Has RVNL been approved together or upgrade corridors specifically for the defense logistics? Because in this war scenario, railways can be -- also be used as a defense logistics. So, anything specifically that can be done by RVNL in that line?
Yeah, definitely, we are doing, but we will not be able to explain here. There will be many strategic projects in pipeline.
I think we have seen an increase in the receivables in financial year '26 numbers, and that has led to lower cash and lower other income. So, is it coming from a big segment or probably anything, any color that can be provided?
Cash flow is a challenge, because we are working for Ministry of Railways, and we have to get money from Ministry of Railways. If you see that our INR 3,400 crores were recoverable from MoR, which we could not get within this year, but we have received now in April. So that was the reason for cash flow negative share.
My question is on the receivable parts on the Krishnapatnam Railway Company, which is standing at INR 1,116 crores, including INR 890 crores of interest. What is the timeline for resolution and how much we can realistically recover on that?
The total receivable, which is due from the Krishnapatnam stands at INR 1,116 crore, which comprises of two components, basically the principal and the interest component. And during the last year gone by, Krishnapatnam has given a -- has a healthy return of around INR 290 core which was due from them. And with the continued good performance of Krishnapatnam Rail Company, we hope that in the coming two years time, mostly their receivables will be wiped out, and the steel will also turn profitable, and due to their good performance they have given a total dividend of INR 50 crore this year, out of which RVNL received its share of INR 25 crore.
What kind of top line growth that can be expected in 2026-27, and how should we take the margin outlook from current? Because what I understand from last con call was you mentioned that 2026-27 as far as execution would be better off and also margins would be comparatively on the brighter side.
Yes. We are definitely expecting a good rise in our revenue, which will be around, say, 15-20%. And even the margins will definitely increase. That I want to assure you. And it will be much better than this year.
In terms of our order book of INR 99,000 crores odd, what is the breakout in nomination and competitive bidding now?
If you see our breakup for nomination and bidding is almost 50%, 50-50 each. Presently, 45,000 works of bidding and INR 45 crores are on nomination basis. So now our business strategy is that we should focus on railway works which we already have in pipeline, which is almost 30,000 works are going on. In addition, we are talking to other PSUs and government for management works on PMC basis. We have got works from NMDC, the Visakhapatnam Port Trust, and other, and we are focusing that we should get more works on PMC.
If I look at our order inflow, including JVs, everything, is it to the tune of maybe like INR 7,000 odd crore for this year? And we have done execution of INR 20,000 odd crore in terms of revenue. And our order book has seen increase. So is there a large part of this change is coming from the scope change or any anything that you can share on this?
Actually, if you see the order book, which we have reviewed it during the last financial year was around INR 6,000 crore, and the execution from the bidding works also stand around INR 6,300 crore. So, the order book inflow and the execution matches, but in the coming years, the execution from the bidding works will increase tremendously because as you've seen in the last year, as compared to financial year '24, '25. In financial year '25, '26, it has increased by almost 129%, which was INR 2,737 crore in the financial year '24, '25, which has increased to INR 6,283 crores in the financial year '25, '26. So, our order book is healthy, and we hope that with increased execution also, the order book will be able to give us a good handsome revenue. And the change of [indiscernible 00:22:23] -- many projects is there, especially in macro projects and other projects, which we are excluding. Even gold projects, we got change of scope as per the requirement of the site and clients decor.
In terms of Vande Bharat order, though you mentioned prototype is December 26 that we plan to supply, and the total order that is there of 126, by when this will get concluded? How are the delivery schedules after prototype is submitted?
Our prototype will be completed by this year only. So, we'll bring two prototypes. The total order, Vande Bharat order book is to be completed in five years time and with a greater increase every year. The first year after prototype, we have to supply, because after supplying the prototype, it takes around three to four months time for the various trials and other work variances by the street. Thereafter, in the first year, five sets will be supplied. Thereafter, it will be increased, and the total 120 sets will be supplied in five years time.
Can we have a presentation, kind of wherein will you give the points or the areas which the company is doing a lot of exciting work and good work. So that we also understand what exactly the company is doing in terms of execution readiness and how well that can be put in use.
Thank you. This is a very good solution, and we will definitely implement it and put it on our website, so that every stakeholder can go through it. And if they have some suggestion, we will be happy to incorporate those.