Bajel Projects Limited (BAJEL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Bajan Projects Ltd. Q4-FI26 Earnings Conference

Call hosted by Antic Stockbroking.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. Thank you very much.

Good afternoon, everyone. Welcome all of you to 4Q FY26 post-result conference call of Bajal Projects Limited, a Bajaj Group company. To discuss results, I am extremely pleased to have with us today, Mr. Shekhar Bajaj, chairman of the company. Mr. Rajesh Ganesh, Managing Director and CEO, Mr. Nitesh Bhandari, CFO, and Mr. Harshal Vyas, Head Corporate Strategy and Communications. As you all have seen, the company has reported very strong set of numbers, and we believe that they are well on track to achieve significant improvement in years to come under a very capable leadership. Now, to discuss results, I invite Mr. Bijaj to give his initial remarks and then go over to management for detailed discussion on the call. Over to you, sir.

Thank you very much. Good afternoon, everyone, and a very warm welcome to the inaugural annual earnings conference call of Bajal Projects Limited. I am Shekhar Bajaj. It is my privilege as Chairman of the Board to open this inaugural earnings call of Bajal Projects Limited and address all of you today as we discuss our operational and financial performance for the quarter and the financial year ending 31st March. March 2026. This is a milestone moment for us. While Bajal has now been listed for over two years, this is the first occasion on which we are formally engaging with the investor and analyst community through an earnings call. We see this as beginning of an outgoing and a transparent dialogue and we look forward to building this relationship in the years to come. This year, the Bajaj group celebrates 100 years. In 1926, my grandfather, late Sri Jamnalanji, laid the foundation of what would become one of India's most endearing business houses, built on the belief that business must serve a larger purpose. Through the freedom struggle, through the license charge, through liberalization, and now at the age of artificial intelligence, that's it. Founding philosophy, the alignment of word and deed has remained our North Star. Every Bajaj company in every era has been measured against this standard. The origin of Bajer. The power transmission and distribution business that today constitutes Bajaj was envisaged and nurtured for many years within Bajaj lecturers by my son Anant. By 2022, the Baja Electrical Limited Board had arrived at a clear conviction. This business has outgrown the confines of a consumer-led parent. Its capital needs, execution rhythm, and strategic horizons were fundamentally distinct, and it deserved an independent platform with its own focus. It's own balance sheet and its own runway. The demerger was born out of belief in what this business could become when given a freedom to charge its own costs. Bajal Project Limited was the result of that conviction. Where Bajal stands today? See you as on. I am pleased to share that Bajal today stands as a focused independent projects and products company with a clear strategic agenda, a robust order book, and a steadily improving margin profile that spans across domestic power transmission, new energies, manufacturing, and select international markets. The financial outcome of the year reflects its trajectory. Standalone revenue from operation grew to 2,792 crores, a 7% increase, while profit after tax expanded to 27 crores, a 74% growth that speaks to the discipline of the selective execution. Abitur grew to 125 crore with a margin improving from 3.4 to 4.4%. In lieu of this strong performance and a marked hundred years of Bajaj, the Board of Directors have recommended a median dividend of 0.60 per equity share, that is 30% Dividend payout and the face value of Rs.2 per share for the financial year 31 March 2026, subject to the approval of the shareholder at the ensuing annual general meeting. But what gives me as chairman the greatest satisfaction is not in any single number or order. It is that Bajal has carried forward intact the values it inherited. Quiet execution, integrity in every dealing, care for the people and the community we operate in. This is the operating philosophy the Bajaj group has run for the last hundred years and hopefully this will be the philosophy that Bajaj will run for the next hundred. With this, I would like to hand over to Rajesh Ganesh, our MDN CEO, to take you through the year's performance and road ahead. Thank you.

Thank you, Mr. Chairman, for setting the context. It's both a privilege and a responsibility to take this company forward in the spirit you have outlined. Let me now walk our investors and analysts through the business, our strategic direction, the operating environment, and our performance for the year. For those of us... Joining for the first time, Bajal Projects Limited was carved out of Vajaj Electricals Limited through the merger of its EPC arm, with the clear objective of creating a focused and sustainable business for power infrastructure. Since our listing on the 19th of December 2023, we have remained committed to building a specialized projects and products organization. One defined by safer and stronger execution capabilities, cost discipline, and a long-term value creation mindset. We have built capabilities across extra high-voltage transmission lines, substations, and monopoles, enabling us to qualify for projects up to 765 KB. We have executed multiple projects across India and internationally. Today, Bajal stands as a specialized power transmission player with a focus on execution. At the heart of this transformation story is RASTA 2030, our six-year strategic roadmap to position Bajal as a future-ready and globally recognized player in the power transmission infrastructure sector. The roadmap rests on a few clear pillars, expanding our presence in high-voltage and technically This is a very complex IPC project. Growing our international business selectively and profitably, improving margins through operational excellence and digitization, diversifying into adjacent infrastructure opportunities, and strengthening organizational capabilities to support long-term scale. Underpinning this is a deliberate shift in our orientation from scale-led growth to quality-led growth. This means better project selection, discipline bidding, execution excellence, and a sharper focus on operating margins. I am pleased to share that this shift is now becoming visible in both our operating performance and the composition of our project portfolio. Before turning to our performance, allow me please to talk about the industry. India's power sector continues to be one of the most attractive markets globally. The country is targeting roughly 900 gigawatts of non-fossil fuel-based installed capacity by 2036, which represents a significant increase from current levels. To enable this transition, the Central Electricity Authority, also called CEA, has outlined a transmission roadmap requiring approximately 1,14,687 kilometers of transmission lines. And, 12,74,185 MVA of transformation capacity. Now, all of this had an estimated investment of around 9 lakh crores through 2032, which translates to roughly about 1 lakh crore per year. Spanning high-capacity 765 kV and 400 kV, extra-high voltage AC corridors, as well as 800 kV and 350 kV HVDC lines. Looking further out, India's National Electricity Plan emphasizes this transmission capex outlay driven by large-scale renewable integration, growing electricity demand, and the modernization of the national grid. Interregional transfer capacity will play an increasingly central role in moving renewable energy from generation-rich regions such as Rajasthan, Gujarat, Ladakh, And the offshore wind corridors of Gujarat and Tamil Nadu to demand centers. Additional structural tailwinds are emerging from green hydrogen corridors, the data center capacity, industrial electrification, EV charging infrastructure, and the need to replace aging grid assets. Why? Ordering activity in FY26 saw a temporary moderation owing to capacity and bandwidth. The medium-term opportunity remains robust and well-hunted. Internationally, the Middle East, Africa, and parts of Southeast Asia are witnessing a parallel investment cycle in high-voltage transmission. The Kingdom of Saudi Arabia in particular has committed significant capital towards grid expansion under its... Vision 2030 framework, and several Middle East, North Africa utilities are actively generating large 500 kV transmission projects. Presenting selective, well-priced opportunities for established EPC players with proven delivery capabilities. Against this backdrop, we see meaningful opportunity for Bajal to participate selectively and profitably in this multi-year growth cycle, leveraging our capabilities, our strategic partnerships, and our disciplined approach to project selection. As I've mentioned in prior interactions, execution is the heartbeat of our organization. During the year, we successfully commissioned 17 power transmission projects, completing 1,168 circuit kilometers across transmission lines and substations, which I believe is roughly 10% of India's total transmission line capacity addition in the entire year of FY26. This was achieved despite significant headwinds, which I'm going to talk about in a moment. The last financial year was characterized by shifting trade policies and heightened geopolitical uncertainty, which has affected growth across regions and sectors. This has also impacted the global supply chains and significantly had an impact on commodity prices. Towards the end of the year, U.S.-Iran war further stretched global supplies with crude oil reaching over $100 a barrel, giving rise to overall inflation. The U.S.-Iran war also resulted in slowdown of our plans in the Middle East, North Africa region. As an ETC company, Bachel remains exposed to the vagaries of market fluctuations in aluminum, zinc, and steel prices. Components made from these commodities incur a significant amount of the company's total procurement cost. Aluminum and zinc prices in the LME witnessed an overall uptrend throughout the year. In the first half, prices were at the mercy of trade tariffs and counter-tariffs imposed by major economies, while geopolitical tensions in Iran supported strong momentum in the second half. Steel prices followed downward trajectory till December, but rose again. Thereafter, post-implementation, post-imposition rather, of safeguard duties on imports supported by surging material costs and front-roated infrastructure demand cycles. Depreciating currency further added to the challenges. We also faced manpower challenges, especially in execution, due to shortage of skilled labor and core activities like foundation erection and stringing. Oil prices going up and non-availability of LPG adversely affected our supply chain operations towards the end of FY26. Higher wages and imposition of new labor code is also expected to increase cost further. Despite all the above challenges, our unexecuted order book stands as on 31st of March 2026 at 3,442 crores. Order outflow for the year stood at roughly 3,100 crores as compared to about 2,000 crores last year, which is a 55% increase year on year. Among the notable milestones of the year was the 700 crore TBCP order from MACPCL for a 420 kb substation and transmission line project in Saswat. We also secured key project wins from PCCI, such as Mansoor Transmission Project and Vindyachal Pool Project, further strengthening our domestic order book in both interstate as well as interstate transmission infrastructure building. Post-March 2026, we have secured orders up to 1,000 crores, plus just over 1,000 crores, including our first order from the Middle East and North Africa region, valued at approximately 400 crores for the construction of a 500 kV over air transmission line. We are currently L1 or in advanced stages of negotiation with customers in orders worth over 2,000 crores. We are also actively pursuing opportunities worth 22,000 crores. We see this trend continue over the financial year, and this should further support our auto growth. FY2526 was also a defining year in shaping our strategic partnerships, both domestic as well as international. On the 10th of March, 2026, we announced a strategic collaboration with NIF, National Investment and Infrastructure Fund, a sovereign-linked fund of the government of India, and Anand Grid Private Limited, NIF-promoted power transmission developer. This tripartite arrangement enables us to jointly deliver high-quality and cost-efficient power transmission projects in India. We also entered into a 50-50 JV. In the Kingdom of Saudi Arabia, with Al-Sharif contracting in Commercial Development Company Limited, establishing a long-term platform for growth in the Middle East, in one of the fastest-growing electricity infrastructure markets globally. To support our growth ambitions, we have been investing in strengthening our manufacturing capability. We want to continue improving our margins by reducing our costs, among other things. The focus area includes bid at better margins, Achieve hedging of commodities, efficiency improvement across manufacturing, supply chain, and execution led by an internal project which we call Project NEED. A specific transformation initiative to improve data systems process and our broader digitization agenda. Our manufacturing facility at Ranjungao near Pune is being expanded to 110,000 to 120,000 metric tons per annum. Once operational, the expanded facility will significantly enhance our captive capability and ability to serve both domestic and international demand. The macroeconomic optimism that characterized FY26 has been considerably tempered as the world enters FY2027. Conditions turned challenging in March 2026 with the widening and intensification of the U.S.-Iran conflict zone. Despite all the challenges, India remains a considerable power sector growth market underpinned by increasing power demand and supply. We remain cautiously optimistic as we enter FY 2027. With that view of the business, the operating environment, and our strategic progress, let me now invite Nitesh, our Chief Financial Officer, to take you through the detailed financial performance for the quarter and for the year. Over to you.

Thank you, Rajesh. Good afternoon, everyone. It is a pleasure to address all of you on our inaugural earnings call. Let me now take you through the financial performance for the fourth quarter and the full year, followed by an overview of our balance sheet and our credit profile. So, on the financial performance of Q4 FI 2526, FI 20-25-26 has been a year of many firsts for Pajail. And more importantly, a year of consistent and measurable progress. Through the year, our focus remained firmly on improving the quality of our order book and execution portfolio. We have consistently prioritized projects with stronger margin, visibility, better contractual structures, and lower execution risk. Our teams delivered on multiple key transmission projects across India. While maintaining a sharp focus on operational efficiency and working capital management. Talking about the numbers, for the quarter ended March 2026, our stand-alone revenue from operations grew by 26% year-on-year to 1,008 crores. This is the first time Bajail Projects Limited has crossed 1,000 crores in a quarter, a huge milestone for us. EBITDA grew by 39% to Rs. 38 crores, with an EBITDA margin expanding by 30 basis points to 3.7%. Profit after tax for the quarter stood at Rs. 16 crores, translating into a fat margin of 1.6%. Now, for the full year FY25-26. Standalone revenue from operations grew by 7% to Rs. 2,792 crores. EBITDA grew by 38% to 125 crores, jumping from 90 crores last year with an EBITDA margin improving from 100 basis point to 4.4%. Our profit before exceptional items and tax stood at Rs. 42 crores, a growth of 73% year on year. Profit after tax, after the exceptional impact of labour code of Rs. 7.72 crores, stood at Rs. 27 crores, registering a paid margin of almost 1%. On the balance sheet, we continued to exercise prudent capital management and disciplined working capital control. Net working capital stood at 124 days as of 31st of March 2026. And our net debt to EBITDA improved to around 2.8 times. Return on average capital employed for the year stood at 15.8%, an improvement of 300 basis points over the previous year. A clear reflection of improving operational efficiency and disciplined capital allocation. Cash borrowings have reduced from 121 crores last year to 31 crores this year. In December 2025, Crystal reaffirmed our long-term credit rating at Crystal A stable and short-term credit rating at Crystal A1, recognizing the strength of our business model and the resilience of our financial profile. That covers the financial performance for the year. With that, I hand it back to Rajesh for the outlook and the closing remarks.

Thank you, Nitesh. Let me now share a brief view on the year ahead before we open the line for questions. As we enter FY26-27, we are optimistic about the sector's trajectory and confident in our strategic direction. The tendering pipeline across transmission, renewable integration, and grid infrastructure remains robust. And we continue to see strong, well-priced opportunities emerging across both domestic and select international markets. In line with our Rata 2030 roadmap, our priorities will remain consistent, exercising disciplined execution, prudent risk management, and creating sustainable long-term value for all our stakeholders. Before I conclude, I'd like to place on record my gratitude to our customers for their continued trust, to our partners for their collaboration, to our bankers, to the board for their guidance, and most importantly, to our Bajal team for their tireless commitment and execution excellence. Thank you. We're now happy to take your questions.

Thank you very much. We'll now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their test run telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Participants, you may press star and 1 to ask a question. Anyone who wishes to ask the question, may press star and 1. First question is from the line of Rahul Kumar Mishra, from Antics Talk, please go ahead.

Hi, thanks for the opportunity and congratulations to the entire team for a healthy set of results for 4QSLS for the entire year. So, I have a couple of questions. So, my first question would be on the margin trajectory. So, we see that over the past few quarters, we have been seeing a consistent improvement in our operating margins, like around 220 bits of margin expansion to 4.8% in the last quarter. However, this quarter, we saw a dip, and during the opening remarks, M.D. Sir has already alluded to the fact that there were some challenges like higher commodity cost supply chain, and this is, I understand, it's not just pertaining to our company, but it has been industry-wide, and so my question is, apart from these, have you seen any other challenges like VR executes? Do we have any legacy order in the current order book?

Okay, could I answer? Thank you very much for the question.

Rajesh, we can take all the questions because there will be a lot of repetition and then answer all of them together. That's a better way to do it. Let's get all the other questions and then you summarize that and give a full answer.

Yes, Mr. Chairman.

The moderator can go for the second question.

Yes, sir. Participants, you may press star and one to ask the question. Next question is from the line of Nishita Sankalesha from Sapphire Capital. Please go ahead.

Yes, thank you for taking my question. So I just wanted to know, you mentioned that we are expanding our manufacturing facility to 110,000 to 120,000 metric ton. So, we just wanted to know what is the KPEGs for that, and when will the... My second question would be on what kind of revenue growth do we see in FY27? If you could give some sort of guidance for that. And the current order book that we have of around 3,400 crores, what is the execution timeline for that? And if we have any order book pipeline, what does our order book pipeline look like? Yeah, that is it for my side. Thank you.

Thank you. Management, the participants will come back in the question queue and will request you to answer the questions one by one if possible.

Yeah, we'll do that. Thank you. So I'll answer Rahul's question first on the margin trajectory. So Rahul, last six months, the commodities have been on a bit of a run. I mean, we all know that. Aluminium, steel, zinc, copper, all of them have been on a bit of a run. So it does present a challenging environment. Aluminium, we've managed to by and large hedge. We still have some open exposure, but especially for the new order. But up to end of March, you know, financially, I think we've been completely hedged. But there's no way to hedge the zinc and others. So those have to be dealt with. Now, we are in conversation with our customers to see, given the extraordinary circumstances, if some sort of leeway can be provided. In the meantime, we're also looking at the possibility of tightening costs further, especially improving productivity and things like that in order to keep the... Keep the margin, you know, in order to keep the margin going. So, hopefully that answers what you were asking. On the, on Nishita's question on manufacturing capacity, the overall CapEx outlay Nishita is 170 crores. And what we're trying to do is to increase the capacity of the. 110 to 120. I'm going to do that in three phases. Organizing Bath Ready, which is... And we should be spending a large portion of this. The transmission tower capacity, which currently stands at about 2,000 metric tons per month, I mean, that's going to go up to 6,000 metric tons per month. Now, for that, we'll have to, once the new path is commissioned, then we'll have to flatten out the old one, and we're using that area to put new machines and in the process we are, and that would be ready by the end of this financial year or max by the start of the next financial year. And the third phase is we're setting up a brand new monopole line because we believe that the demand for monopoles in the future will be high. And that's the segment where, you know, we have an inherent strength both in design as well as in manufacturing. So that would be phase three. And the funding of it is 120 crores of this is through term loan. 50 crores is through our own investments. So that's on the, you know, on the revenue growth for FY27, I mean, projection for the year, it's a bit early in the year, but I think we should be in, I mean, our endeavor is obviously to grow the, the focus is not to grow the top line significantly, but I do acknowledge that a certain amount of scale is required for pitch cost option in this business. We're targeting anywhere upwards of 15%, and we're quite confident we should get there. The current order book, as you know, stands slightly south of... In the first, you know, the first 40 days of the current financial year, we've already received orders worth 1,000 crores. Another 2,000 pros. Given this, I think we should be in a position to end the year with an unexecuted autobook of about 4,000 to 5,000 crores. Hopefully, that helps.

Vishuddha, do you have any follow-up question?

Yes. Am I audible?

Yes, you are audible.

Yeah. So, I just wanted to know, so you mentioned that the CAPEX would be phase-wise. So, and from what I understood, phase 1 and phase 2 will be operational by the end of FY27. Is that correct? And majority of it, so around like 130, 140 crores, we'll spend on phase 1 and phase 2. Is that understanding correct?

Well, yeah, more or less, Nishita. I think that I would, you know, I would say 60 to 70 percent perhaps.

Okay, I'm not sure. So, what is the revenue potential that we can get from this expanded manufacturing facility that will be operational by the end of FY27, and how are we going to ramp up this facility?

Well, I mean... Tower capacity, availability of tower manufacturing capacity and monopole capacity is a challenge in the market, Nishita, because as the sector is witnessing quite a bit of demand, there is also demand happening at the supplier's end as well. And there's a lot of substitution happening out there because solar is also growing and solar's windmills are growing. So it's kind of becoming challenging to have a long-term relationship with suppliers who manufacture good quality towers that are needed for our work. So the endeavor here is really to try to in-source as much as possible the raw material that we need as much as possible. Right. So that's the endeavor here. And it's more to ensure that we protect our margins and that we that, you know, that we that we to some extent, you know, insulate ourselves against possible increase in in conversion costs, prices, et cetera, et cetera, due to higher demand. Right. So the big objective is to ensure that we have sufficiently in-house our captive demand.

Okay, okay. Thank you so much.

Thank you. Thank you. Participants, you may press star and 1 to ask the question.

Ladies and gentlemen, you may press star in 1 to ask the question. Next question is from the line of Vyash Sarda, from Antics Talk Broking.

Please, go ahead.

Hello. Thank you for the opportunity. Sir, could you, if you could just throw some light on the industry dynamics, both on the domestic as well as industry fund? And secondly, are you bidding for any H5 or H3DC projects in the coming months, in the coming year? Thank you.

Could we take one more question, and then perhaps I can answer?

So, I also have one more question on the capacity expansion phase. So, since we have announced the CAPEX for FI 27 and 28, so all of that shape us, you know, and help us in execution as well as on the profitability front, where do we see this going forward?

Okay, so let me... Take a stab at the industry dynamic. Well, I did mention in my opening remarks as well that India is one of those markets, is an exciting market for power transmission and distribution, particularly because if you see, you know, the demand for electricity continues to grow. The demand for energy overall continues to grow. And when we see electricity finding application into, you know, into mobility, we see a lot of EV vehicles, we see it coming into people's kitchen, thanks to the LPG availability crisis that we are sort of facing at the moment, and several other things. I mean, even in industrial applications, electricity is finding itself in there. So, from a demand point of view, there's... You know, there's quite a bit of tailwind, industry tailwinds, that we're talking about here. I mean, the government outlay for both intra- as well as interstate projects are close to or greater than 1 lakh crores every year. So that's actually a significant outlay. And the ambitions of the government also in terms of, you know, having 900,000 gigawatts of capacity coming on stream in the next five years is a significant target. More than half of that is actually going to come in renewable energy. So that means grid stabilization becomes a challenge, and hence more amount of work needs to be done in that area too. Overall, generation is not really the bottleneck, I think. So a lot of work is being done. Looking at GCC. Africa and all these markets, we are seeing quite a bit of capacity expansion in line with what we're seeing in India. If you take Saudi Arabia, for example, or UAE or Oman or Egypt markets like that, I mean, there's a considerable amount of work that's happening and there's big plans for grid expansion as well. So overall, I would say from an industry point of view, Bidding for HVDC, well, we do not have HVDC in our portfolio yet, but we are keen, I must say, we are keen, and if an opportunity presents itself, we are sure to grab it, and we are quite keen to add that in our repertoire. On the, on the, on the, well, from a qualification point of view, we are actually completely qualified now. We're qualified for. 65KV, both GIS as well as AIS. So, in that sense, qualification or credentials is no longer a challenge for us. So, we are waiting for the right opportunity when it comes to HPDC, really. On the capacity expansion, as I was mentioning to... It really helps us in our execution, you see, because we have much better control over availability or, you know, over. I mean, it needs to be done to a certain specification. I mean, there is quite a bit of design and engineering involved in this one, and we'd like that to be in our own hands so we have better control over it. It also has quite a bit of bearing on cost. If you're able to build scale, then our objective is to bring down cogs, and this would help.

Thanks, sir.

Thank you. Participants, you may press R&1 to ask a question. Ladies and gentlemen, you must have started on 1 to ask the question.

Next question is from the line of Ashok Jain from Ayush Capital. Please go ahead.

Ashok, may I please unmute your line and proceed with your question, please? Ashok Jan, if you can hear us, may I request to unmute your line and proceed with your question.

Yes, ma'am.

Yeah. Am I audible?

Yes, ma'am.

Yes.

Yeah. So, yeah. Can I proceed?

Yes, ma'am. Go ahead.

Yeah. In the trapper-tight SPV of Bajal project, NIS Anand Britt, who will be funding the selected power transmission project? Since we are already paying finance costs of about 63 crores for fiscal year 2025-26, the additional borrowing burden for project execution and subsequent ownership of these power transmissions assets will draw our EPS further down. My query to you, sir, is how will the dual role of Basel projects turnkey EPC contractors and also a 26% equity stakeholder in the SPV impact the profit and loss balance sheet and cash flow of Basel projects during and after the commissioning of the selected power transmission projects under the Trapatite SPV? We'll be glad if you could throw some light on the same, sir.

Yeah, certainly. I'm happy to. Yeah, let me answer that one. So, I mean, thank you for the question. It's actually a very good question. But let me take a couple of steps back and tell you why we did this. I mean, we have no interest in asset ownership. Let me make that very clear. That's not the business that we are in. Now, we've done that because of two reasons. See, one is that NIF is a half owned by the government of India, so it's the sovereign wealth fund of India, and they've got maki LP partners there, like the Canadian Pension Fund, and like, you know, Abu Dhabi sovereign wealth fund, etc, etc, and several of them. It gives us an opportunity to work with these people. You see, I mean, that's one. Second, it gives us a way of increasing or improving the quality of our order pipeline. Yeah, of our unexecuted order book, you see. Now, the arrangement, the tripartite arrangement is very clear. The financing of it is largely going to be done by NIF and Ananskrit. Yeah, and we'll be taking a small equity, and in return, what we're getting is the EPC agreement, back-to-back EPC agreement for executing any of the projects that we've been. Yeah. So, to that extent, I think it's a win-win for all the parties involved. I think it's a big strategic win for us, should we be able to build and win projects successfully. Of course, you know, the proof is in that. But if we do, I mean, these are large-scale projects, and, you know, that would give us a significant boost to our pipeline straightaway. And my opinion is that these are high-quality orders. We should be able to, you know, a lot of the parameters regarding execution and commodity prices could be in our hands. And that could help us. Perhaps, you know, earn better margins or also better terms in terms of EPC execution. So I actually see a positive impact on the P&L as a result of this matter. But yes, I mean, had there been an element of asset ownership, I completely agree with you, but that's not the case. The agreement also quite clearly stipulates that we would be exited out as soon as the... You know, the project is commissioned. So, to that extent, we don't see ourselves managing or maintaining O&M of these assets for the long-term basis.

Okay, sir. Thank you, sir. My second question is, have the losses of the five joint ventures of Employee Welfare Trust of 6.67 crores as per item 8 of our results being fully booked or more are to come in the coming years? Could you kindly elaborate on the same, sir?

Up. Thank you, ma'am. Nitesh Pandari here. These are five employed trusts, and the impact is primarily because of the mark-to-market that we have done as a part of the trust accounting, and 31st March, the equity markets were quite low, and as they improve, as the shares prices come back, we should be able to bring back those numbers back on track. The real impact of the share of profit and loss is 6.68 and 1.5 for the quarter ended 31st March 2026.

Thank you sir. Thank you so much.

Thank you.

Thank you. A reminder to all the participants, you may press star and 1 to ask the question. Next question is from the line of Vedant, from Choice AMC. Please go ahead.

Yeah, hello. Am I audible?

Yes, sir. Go ahead.

Yes, sir. So, my question was regarding working capital and receivables. So, we have seen an increase in debtors' days and receivables meaningfully during FY26, alongside with the rise in the borrowings. So, could you help us understand whether this is largely linked to some execution timings or milestone-based billings in the current order book, or whether payment cycles across CSUs and transmission projects, They are being structurally elongated, right? And additionally, how should we think about normalizing that, normalization of working capital and cash conversion? So higher margin orders started getting executed.

Thank you, Vedang. Vedang, the data has increased by around 590 crores from 1258 crores to 1849 crores. This is primarily on account of higher last quarter billing. The biddings have increased on a year-on-year basis compared to previous year. That is an impact of around 194 crores. Also, one marquee customer held back payments in the last court night of March of around 225 crores. Both of this, most part of both of these have been collected by us in this year. So till date, we have collected most part of it. The other increase is as a part of the EP cycle wherein as you do the projects, the retention, the final retention amount keeps increasing for every project. That's the contextual terms. So that's an increase of around 100 crores. And, yeah, so this is a one-time thing which we, as we talked about, and both the things, I mean, as we said, have been collected back. Does that answer your question?

Yes, sir. Yes, it did. Thank you. Thank you.

Thank you. Next question is from the line of Rahul from Antics Talk Broking. Please go ahead.

Hi, my questions have been answered. Thanks. Thanks a lot.

Thank you very much. As there are no further questions, I will now have the conference over to Mr. Dreena Tiwari for closing comments.

Thank you very much. Let me take this opportunity to thank the entire management of Bejal project, Mr. Bajaj, Mr. Rajesh, Niteshji, and Mr. Harshal for giving us the opportunity to host them. Looking forward to continued strong performance from the company in the future. So, before I close, any final remarks, Mr. Rajesh, you would like to give, and then we can close the call.

None from me, Mr. Tuvali. I'm good.

Thank you. All right. So, we can close the call now, I, operator, and have a great evening and best wishes to all of you, and thank you all participants for attending the conference call.

Thank you very much. Thank you. On behalf of Antic Stockbroking, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.