H.G. Infra Engineering Limited (HGINFRA) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to HG Infra Ltd Q4 FY26 Earnings Conference Call hosted by GoIndia Advisors. As a reminder, all participant lines will be in the listener-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note this conference is being recorded. I now hand the conference over to Ms. Sanuni Ajmera from Go India Advisors. Thank you, and over to you, ma'am.

Good afternoon, everybody, and welcome to HG Infra Engineering Limited earnings call to discuss the Quarter 4 and S526 operational and financial performance hosted by Go India Advisors. We have on the call Mr. Harendra Singh, Chairman and Managing Director, and Mr. Rajiv Mishra, CFO from HG Infra Limited. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore moved in conjunction with the risk that the company faces. I now request Mr. Harendra Singh to take us through the company's business outlook, performance, subsequent to which we will open the floor for Q&A. Thank you and over to you, sir.

At HG Infra, we are guided by purpose, built on trust, and driven by a clean vision focused on sustainable and scalable growth for the future. For FY27, our vision is focused on long-term value creation for our shareholders under the tough condition of this year, considering the macro and micro conditions because of the continued headwinds emanating from the West-Asian conflict and with other geopolitical outlook. As we all know, recent geopolitical turmoil and global economic uncertainties have disrupted supply chains, elevated freight, war risk insurance coverage, prolonged shipping timelines, economic energy crisis, and increased volatility in fuel prices. As well as correct threats, other commodity markets and same is pushing up, and the prices are high and hard for infrastructure. And these challenges have resulted in a higher input cost for all metals, HSD, bitumen, cement logistics, and transportation. This year looks extremely vulnerable to geopolitical, macroeconomics, and policy risks. And demand growth looks tepid due to economic slowdown. Losses and margins are likely to take a longer period to recover, resulting in continued volatility in the market due to the deferred and disillusioned story of Indian corporates. Despite these headwinds, India's economic outlook remains resilient and promising. India is now one of the fastest growing major economies and with Wixit's Bharat 2047 vision will require sustained investment into infrastructure across roads, rails, power transmission, and urban development to support the economic growth, connectivity, and urbanization. At HG Infra, we have been contributing to India's infrastructure journey for over two decades, and we are also strengthening our presence beyond roads and railways, into emerging sectors like solar energy, battery energy storage systems, power transmission, and positioning ourselves to support India's next phase of growth and renewable energy transition. Talking regarding the roads, As mentioned ago, recent geopolitical tensions have created uncertainty across global markets and impacted the overall infrastructure sector. Coupled with the muted bidding and the project awarding activity by NHA in both during FY26, the road sector witnessed a relatively subdued order inflow environment and resulting in lower than expected order awards across the industry. Despite these near-term challenges, the long-term outlook for the road sector remains positive. Supported by the government's strong infra push, for FY26, the government allocated approximately 2.72 lakh crore to the Ministry of Highways, demonstrating its continued commitment towards highway development and connectivity enhancement across the country. For FY27, the company expects road sector order inflows of approximately 7,000 to 8,000 crores against a bid pipeline of current 72,000 crores and other bids expected in future. The company is actively pursuing opportunities in HAM and EPC from government and also engage with private sector players for EPC projects, considering the shift in focus by government towards BOT-based project development. As a result, the company has already secured the Pune-Shirul Road project from Belsman worth 3,940 crores on a BOQ EPC basis. Regarding rails and metros, which continue to witness strong growth driven by government's focus on station development, railway electrification, dedicated freight corridors, new railway lines, metro rail expansions, depot and other ROVs construction for overall network modernization. The government also allocated a record 2.78 lakh roads towards railways in FY27, reflecting its continued commitment to strengthen rail infrastructure across the country. HGIL has established a strong presence in the rail and metro segment with 10 ongoing projects in its order book, including two recently secured railway projects from Adani Group at Anupur and Mirzapur Thermal Plants, and another project of Thane Metro in the last quarter. The company continues to actively pursue opportunities directly from government as well as through leading private sector players, providing a strong platform for future growth into this segment. Renewable and green energy always for India's focus, where we are witnessing strong growth supported by the government clean energy target and energy increasing investment into solar, battery, power transmission sector. BES is emerging as a critical enabler of renewable energy integration and with India targeting significant storage capacity additions over the coming years. The company is trending its presence in the energy sector. The company has all recently backed two transmission projects in Uttar Pradesh and Jharkhand with a combined project value of approximately 200 crores, and creating a strong platform for future growth in this renewable and energy infraspace. In addition to its core segment, the company is actively evaluating opportunities in tunnels, water infrastructure, building and other specialized EPC sector to drive long-term growth and diversification. Let me begin with a glimpse of our operational linets. As of quarter 4 FY26, the company's order book stood at 10,147 crores, comprising 5,392 crores from roads and highways, 2,825 crores from railways and metros, 1,527 crores from desks, 86 crores from solar projects, and 318 crores from transmission and distribution. Segment-wise, roads, highways contribute 53%, railways 27%, and remaining 19% is from renewables. The updates on the ongoing EPC projects. Ganga Expressway has already been handed over to clients after reaching 100% completion in this quarter. The UER project has been completed and was opened to traffic in August 25. The completion certificate is anticipated to be received shortly. The Jamshedpur elevated project is running smoothly with a current progress of 52.36%. The Neemlingar Tumkur project is at 62% completion and progressing towards timely completion now. The DLS project is at an initial stage with completion of just 1%. Further to which we have removed the MSRDC projects of Nagpur Chandrapur package 4 and 5 from our order book, Following the receipt of... Respective bid securities without any formal communication from the authority in this regard. Regarding the HAM projects, the Kundal Railroad project has reached 97% completion, where we have applied for PCC, which we are expected to get in this quarter only, quarter 1, after 8, 27. As shared in the previous quarter, provision completion certificates for the project of Raipur-Vishaka-Pardham corridor. OD 5, OD 6, and EP 1 already received, and all projects remain close to completion. The Khamam-Bivarapali project KD 1 and 2 TCC already received, which are at 99.3 and 98.5% completion, respectively, and the COD is expected in Q2 F527 and Q1 F527 for these two projects. The Chennai Terupati Haim project reached at 54% completion. Varanasi Kolkata package 13 has achieved 29.7% progress upon receipt of provincial appointed date, and the appointed date for package 10 in Varanasi Kolkata, Jharkhand, is expected in quarter 1 FY27. Kosi Parigrama package 7 of Ehudya appointed date for the project being declared on 16th of January 26th and the project execution stands at 22.1%. Narrow Sargej project has achieved 42.4% progress and remains on track for timely completion. In HAM projects only, the company received LOA dated February 27, 2026 from NHI for Capital Ring Road Package 3, project in Urissa under HAM mode. With a project cost of 1,582 crore, the land acquisition process is in the advanced stage and the appointed date is expected in Q3 of the year. Turning to the progress of railway projects, The DMRC Metro project is 99.4% completed and progressing for near just targeting completion in quarter 1 FY27. The Bilaspur Himachal project is 97.3% complete and targeted for completion in quarter 2 FY27. The Kanpur Railway Station project is 50.94% completed. The Dulil Nardana Project has achieved 42.4% progress and Gya Tornagar Project has achieved 42.4% progress. At 40.1 and Karanjabamo project at 46.6% respectively. The appointed date for the New Delhi Railway Station project was declared on 6th August 2025 and with initial hiccups into land clearance, now the execution is in full swing and the project is at 11.55% completion. The appointed date for newly awarded Thane Metro project being declared as 11th January 2026 and the project is in construction phase. The company has recently secured two railway projects from Adani Group. One is in Anupur, Madhya Pradesh worth 340 crore and Mirzapur, the other one is Mirzapur, Uthaya Pradesh worth 440 crore. Both the projects are currently under mobilization and both these projects are also in execution phase. Regarding solar projects, as of 31st March 2026, overall physical progress reached approximately 96.3%. The progress of these projects got affected and delayed due to prolonged monsoon conditions and the land equation challenges for the transmission line and certain local issues, which are being resolved progressively. The company is deploying adequate resources to commission all plants within the revised contract timelines over the coming months. Notably, the ministry, MNRE, has extended the Kusum C schemes A and C commissioning deadlines in Rajasthan to March 31, 2027 because of the local developer challenges. Financially, we have got a sanction of around 85% of the project debt required for these projects, and out of this, approximately 93% of the sanctioned project debt has been disbursed. The maximum of these plants, around 350 crore, is expected to be released post-commissioning of the plant in quarter 1 and quarter 2. To bridge the temporary funding gap and to maintain the project momentum, the company secured additional working capital for temporarily increasing overall leverage. Upon receiving the final solar pending disbursement, existing high debt utilization level will be reduced in quarter 2, 2027. Total equity investment stands as 851 crore, which includes 99.27 crore loan repayment required by lenders due to commissioning delays. However, this amount will be re-sanctioned post-commissioning, lowering the net capital risk investment for FY27. On the operational front, the company has billed 132 crores to disform from 131 commission plans and has realized collection of 114 crores till date. The best projects were in binding agreement with GUNL and NEVN for three battery storage projects with an aggregate capacity of 735 MW transmitting 1470 MWh. The procurement activities for these projects having total capacity of 870 MWh have commenced, and orders for critical long lead items such as power transformers, GIS switchgear systems already being placed. The overseas vendor for the BC block containers has been finalized, and the company has executed the supply contract, long-term service commissioning, and technical agreements with them. In January 26, the company, through its SPV, acquired land for Banasdhanta and Dholera projects, and the execution is full-string in both the projects. Also, the third best project, Chorania, which is to be completed by June 27, is moving in the right place. Connectivity approvals for both Banas Kanta and Dolera project have been received and the execution respectively connectivity agreement is currently under hopeless. Upon commissioning of all these best projects, the company expects to generate annual revenues of approximately 225 crore. Power transmission project. Regarding the transmission project, where first project is going as per the approved project schedule, SPV being incorporated, project design and engineering activities have been completed, and procurement orders for key long lead item being placed. The SPV has successfully achieved financial closure and the procurement activities for all major project components are currently in progress. Overall, the project remains on track with the planned timelines and milestones. Recently, the company has secured two power transmission projects from RECPL in Uttar Pradesh of 310 crore EPC value and in Jharkhand 910 crore EPC value. The projects are expected to contribute 160 crore annually to the top line over next 25 years, once commissioned. Update on monetization of five HAM projects. As in March 26, we successfully transferred 100% of shareholding of KD2 and 49% of KD1, receiving partial consideration of 153.71 crore and 81.69 crore, respectively. The remaining holdback amounts are expected in Q1 and Q2 FY27 following the project's commercial operation date to be declared and completion of few bulge-based items. Subsequently, in April 26, we transferred 100% of our shareholding in Raipur-Vishaka-Batnam OD6 package, receiving a partial consideration of 203 crores with the remainder due in quarter 1 and quarter 2 post-final COD. We expect to complete the equity transfer for project OD5 and EP1 projects during upcoming quarter. Regarding the Kernal HAM projects, we are in discussion with the prospective investor to finalize the non-pinding offer and set project is likely to be monetized by year-end. Regarding equity requirements on HAM projects, the total equity requirements for these 11 HAM projects is around 1913.3 crores. As of March 25, 1210 crores being infused. Out of remaining amount, Sorry, as of March 26, 1210 crore being infused. Of the remaining amount, 414 crore is estimated for infusion in FY27, followed by 1229 crore in FY28 and 50 crore in FY29. Moving on to the financial highlights of quarter 4 and quarters FY26, we have started the last year with expected new orders in source of 10,000 crore, but due to lukewarm bids pipeline, we could Secure only new orders of 300 crores during the year. Moreover, substantial delays in a pointed date in the running order book has further impacted the revenue and the margins due to the lower-than-expected project awards that has affected the order book and the revenue growth. And further, due to the geopolitical uncertainties, prolonged monsoon, higher commodity prices during the year, the last quarter exclusively was deeply affected and resulted in project execution, cost escalation, and profitability. Regarding the standard of financials, revenue for quarter 4 FY26 reached 1,354 crore with an EBITDA of 127 crore at a margin of 9.37%, FAT for the quarter 4 FY26 stood at 99 crore with a FAT margin of 7.35%, compared to 212 crores and a margin of 10.76% in quarter 4 FY25. Riveny for FY26 reached 5,667 crore with an EBITDA of 733 crore and an EBITDA margin of 12.94%. PAT for FY26 stood at 389 crore with a PAT margin of 6.87% compared to 577 crore and a PAT margin of 9.54% in FY25. On a standalone basis, our gross debt stands at 1,627 crore. which comprises of 731 crores in working capital, 400 crores from N3D and 496 crores from term debts.

Now, the consolidated financials revenue for

quarter 426 reached 1427 crore with an EBITDA of 227 crore and an EBITDA margin of 16.64%. PAT for the quarter Fy26 stood at 85 crore with a PAT margin of 5.93% compared to 147 crore at a 10.8% margin in quarter 4 Fy25. Revenue for FY26 reached 5,235 crore with an EBITDA of 1,012 crore and an EBITDA margin of 19.33%. Path for FY26 stood at 3.30 crore with a path margin of 6.3% compared to 505 crore and a margin of 10% at 5.25. Way forward, as we begin our journey from a single state and now today, exhibition footprints expand across India with successful project delivery in more than 14 states spanning north to south and west to east. And over the past 23 plus years, we have earned a reputation of building India's infrastructure with trust, passion and quality, guided by a vision to connect every citizen and community to the nation's progress. We are confidently targeting 11,000 to 12,000 crores of order inflow for FI-27, driven by a clear data-backed strategy to secure approximately 70% for roads and railways, where our execution capability outpaces competitors and 30% from rapidly expanding verticals. Our historical dominance in roads and highways continues to fuel our poor growth. However, recognizing increased competition and margin compression, we are proactively reshaping our portfolio for long-term value creation. We are aggressively entering high-growth, decent margin sectors, best-end transmission, leveraging our deep engineering expertise and proven execution records. This goes beyond diversification. It is targeted expansion into future profit pools, and we remain strongly focused on digitalization and technology-led project execution. Enabling real-time monitoring, improved operational efficiency, enhanced cost control, the better resource utilization. Combined with our disciplined approach to strategic bidding and project management, these initiatives are designed to protect and expand margins, minimize rates, and maximize shareholders' returns. We are positioned for accelerated growth and superior returns, and I diversified pipeline, financial discipline, and bold sector bets positioned as a future-ready multi-sector infrastructure leader, and we committed to deliver outsized value of our investors year after year. I will now hand over the call to our IR advisor and request them to open the floor for question-answer session. Thank you.

Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Shravan Shah with dollar capital. Please go ahead.

Yeah, thank you, sir. So 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 2,000 crore revenue, 15% margin and versus actually, it is a kind of a 646 crore 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 mad performance?

Yeah, I appreciate a concern regarding the revenue. This is a technical matter into one of the few of the best 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 HG's scope, has been taken out into SPV. So that has been one of the reasons. Also, a few other reasons. Because of the disappointed date, which we are expecting of jargon 10, and one or two 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 one few of the projects, which again, where the operational claims are not yet realized, which were supposed to be there in quarter four only. So in quarter one, three of the projects were the settlement agreement being executed, and one or two projects likely within, say, one or two 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 F-27, F-28 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 noise is very, very less now, 86 odd crores, but the BES and the new transmission, so whatever the new we have got, and in the well-spun 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 three projects, the claim settlement is done and maybe one or two will be done. So, can the margin again will start coming back to 15% 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 in the first two months, we have secured almost 5,500 crores of order, which we believe at the start of 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 appointed date of Pune Sherwood, which is a investment project, expected in October. And the project of Orisa Ring Road expected in October. So with that, we are targeting a good amount of percentage growth into this year. We are looking at about 5,500 crore plus of turnover for the year. That's why the margin is concerned. Definitely, there has been big reasons across industry, which also has addressed in the opening remarks. So, there has been few turbulent, same as the metal prices, as the fuel, energy. So, these are all logistics. These are supply chain disruptions, which are causing delay as well as which are causing the margin pressures, the margin and determinants pressure. But with this, whatever correction being done in quarter four, likely the settlement agreement for these all five to seven 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 a range of 14 percent, despite of the fact the margins are under tremendous pressure for the year at the start for the geopolitical situation.

So, in Q1 also, can we see the similar 10, 11 percent, and then from the 2Q or maybe third quarter onwards, we will announce that.

As a broader understanding, we can just see the entire, because it's a very, very, say, immediately we cannot just see the big correction is going to happen in quarter one.

Okay, got it. And now we said this. I'm sorry to interrupt. Yes, last one.

Now, I would request you to please come back in the queue for further questions. Thank you. The next question comes from the line of Renuka with First Water Capital. Please go ahead.

Yes. Hello. Am I audible?

Yes. Yes, ma'am. Please go ahead.

Yes. 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, you know, Reduction in all of that levels.

So as far as the console is concerned definitely with the monetization proceeds which were delayed a bit because it was expected in quarter three and quarter four for all these five projects being monetized. So this is the big reason when we are seeing a high number into net equity in console as well as if you talk of Sterano also we are expecting this is to be drastically reduced from this 1,600 plus crores of debt would be in a range of about 800 to 1,000 crores of debt. In the first half of this year.

So how much are we looking to monetize in FI27?

These are the five projects which we have already executed, a few of the transactions already done, and a few more transactions where around 1,000 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 NFI 27. It will be reduced. Any other choices that we are expecting to get this number further down?

The debt into SPV was not, because of 99 crores also we deposited back to bank because of the timeline which was not extended by MNRE. Now being extended, so with these re-sanctions being done by the bank, SBI, now around 350 crores of the debt would be released to SPV and in turn SPV will be paying back to HG Infra.

Okay, okay, got it. And in the recent two transmission projects that we had received, can you quantify how much is the EPC value for this project?

It's about 220 crores of roughly EPC, and the equity requirement would be 275 crores in both the projects in a span of three years.

Okay, okay, got it. I'll join back in Vicky. Thank you so much.

Thank you. The next question comes from the line of Farth Dhakkar with JM Financial. Please go ahead.

Thanks for the opportunity. Can you give me a total of how much equity requirement for both the ham and the best projects?

So, overall liquidity required as of now, which is around 1200 crore fees. So, out of 1200 crores, you see in quarters, this FY27, we are estimating around 760 crore, say 414 crore in hand, and 345 crore in basin energy. And transmission also. In FY28, it would be 229 into HAM and 132 in energy. And balance is very small in FY29.

So, 1200 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?

Which we are expecting now. In this year, 203 crores already received in April, and around 900 crores is likely to be received in the first half of the year.

You said 904 crores, right?

Hello.

Yeah, yeah. 904 crores are spending, right?

935 crores to be very specific in first half. So, 203 crores already received and balanced 935 crores additional would be there from June, July, August, September.

Okay. Thank you. Those are my questions.

Thank you. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one. The next question comes from the line of Shravan Shah with Dollar Capital. Please go ahead.

Yeah, sir, on the order inflow

front, you said 11,000 to 12,000 crores. So that will be over and above of 5,600 crores that we have received.

No, no, no. For the entire year, we are expecting 11,000 to 12,000 crores, out of which around 50% of the order already received. Because the order which you are expecting 3900 crores, which was last year, now it has been received. So for the year only. We are considering for the year only.

No, sir, then this is a decent gap which is there because in FI26, so we kind of got 2,500, 3,000 crore delays plus 2,142 crore MSRDC cancellation, so kind of a 7,000 crore additional. So, this number was previously also we were looking at the similar number. So, this year to fill the gap, we actually need a kind of 17,000 crores plus kind of order inflow total to fill the gap of 526 plus MSRDC.

In any case, because of the recent scenario, you cannot guarantee the orders for the year because in the last year also we were expecting a big order inflow from NHA only, but nothing has happened, nothing big has happened rather. So with that, we cannot just guarantee now, if we are estimating at 12,000 crores for the year and if we execute around 6,500 crores, so we would be having around 16,000 odd crores of order backlog, FY27. So, as of now, because of this war situation, because of this geopolitical, any turmoil, we cannot guarantee anything in India also, we would be able to grab this kind of a number. We can always see in quarter 1, after quarter 1 and quarter 2, if any positive, but companies are getting interested into looking into the healthy order positions as well as decent margins so as to sustain and scale both.

Okay, got it. So, given that, let's say, by end of FY27, whatever the number we are saying, 16,000 crore 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 6,500 crore.

Once everything stabilized, definitely we were aiming to look at whatever is the shortfall for the year, which last year, we have seen negative growth in revenue as well as margin was into pressure. We will be trying to recover back to the normalcy and expecting around 8,000 crores of order execution in 28.

Okay, so 8,000 kind of revenue can be doable in F.28. With this, the number, if you get the more info, then would be better. But on the margin for particularly the recent one, whatever we have received, this 5,600, because it has a recent one, 3,900 crore, the well-spun order one. So just trying to understand relatively, obviously, the whatever the commodity inflation is there, that will definitely will have an impact. But structurally, one can look at at least we can have a 13-14% kind of a margin on a sustainable or as we keep on having the new orders, new segments, then we ultimately will kind of move to an 11-12% kind of range over 3-4 years. So, that is the broader understanding of it.

Definitely just margins, which we never want to see that the growth is at a less margin. We would be expecting around 13 to 14% growth year on year, with a growth of about 15% year on year.

Okay. Okay. And a couple of, sir, balances data point, if you can, say, unbilled revenue, mobilization advance, retention money, ham data, solar data, and hunger data.

So, you see the data balance is around 1560 crore rupees. The 1560 crore rupees plus 190 crore is retention from data only, hold. Out of which beds and transmission do have 128 crore rupees, and Ganga is 195 crore rupees for Adani, and HAM SPVs, all 7, 8, 9 SPVs are there, 690 crores, and railway around 218 crores, and balance is SPVs of solar around 280 crore rupees, and as far as unbuild is concerned, and few of the others also is there, balance is others. And on contract assets, this breakup is around 1800 crores. It has gone very high because of 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 116 crore rupees and railway is 449 and IAM is 690 crores. SPV, all SPVs, and Ganga is 139 crore rupees, and rest is RHI and others, 178 crore rupees, and 215 crore rupees.

Okay, so total, sir, put together, you said 1766, the unbuilt revenue.

It's 1857, to be very specific. Sorry, 1857? 70% transmission, you're correct.

Sorry, sir, I didn't get the 1856.

It's a total of 1857, out of which a lot of breakup has been given. So you can just take the detail number from Lagi also.

Yeah, I got it. And mobilization advance will be?

Mobilization advance is 327 crore rupees.

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 50 crores of capex hardly would be there for the year for the kind of a contracts we do have and the few projects which we'd like you to get there.

Okay, and date you said by 1H, we should be reducing to 800-2000 crore or by 800-2000 crore?

Yeah, 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 two and quarter three, likely around 500 crores would be received from these contractor sets also.

So, by September, we are looking at this 1,627 crore date will come to 800 to 1,000 crore, and then further, maybe by March, with the solar date reduction, maybe further, we can expect the further reduction.

Very great.

Okay, and then, sir, lastly, this, the equity breakup in terms of, again, if you can specify, particularly the solar one, you said that equity requirement 731 has increased to 851. Correct me if I am wrong.

So, what has happened, the bank has recalled certain loans because the timeline of the solar project, they were not extended. Now, with the extension being done to 31st March 27th, So again, this 9900 crore rupees is going to be re-sanctioned and would be released. So, put together the total equity requirement in energy, best and all, would be around 345 crore rupees.

Okay, 345 crore rupees for the year. Okay, for the year. No, so currently in solar, the number is the same, 731 crore, and then the BES, how much?

If you think in any case, whatever additional payment we have given, that will be paid back.

Thank you, sir. Mr. Slavan, I would request you to please come back in the queue for further questions. The next question comes in the line of Vishal Perival with PL Capital. Please go ahead.

Yes, sir. Thanks for the opportunity. Just continuing with the previous. So, these Transmission, BES, and Solar projects, we are funding at what debt equity ratio?

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

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

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

Okay. Now, reason I'm asking is because you mentioned we'll be putting 275 crore equity in these two projects. And if you do a 70-30 sort of debt equity ratio, then the gross block comes to almost like 900 crores for these two projects. And the EPC value is almost 1,200 crores.

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 two days back we have received this project. But the equity requirement is 275. It can maybe just 25 crore base this side, that side.

Okay. Sorry, you mentioned 375. 275, 275. 275. Okay, 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 quarter because for the quarter one, almost like two 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 later half of this year would be quite aggressive, because we would be seeing some big ticket-sized 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, and later half was quite done.

Okay, okay. Got it, sir. And last thing, in terms of margin trajectory, though, I mean, like, you know, your commentary did mention that, like, you know, 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, you know, any project mix that is changing in revenue or what could drive this, the margin increase for us?

The total project which we are executing around 70% are from infrarail and roads, majorly, so that bears a decent margin of about 14 to 15%, bearing one of the two projects. But then again, the other projects which we are operating, like battery and transmission, they do have around 10 to 11% projects. So put together around 14% average margins are there in all these projects.

Okay, okay. Sure, sir. I think that's all from my say, and I'll come back in the queue. Okay, thank you.

The next question comes from the line of Aditya Sahu with HTSC Securities. Please go ahead.

Hi, sir. Thanks a lot for the opportunity. I had a drop-down in between. I just had a few follow-up questions. On the EBITDA margin, that would be around 14% to 15%. So, right, if I'm not wrong.

No, no, sir, what you are discussing about, because of this disruption and other issues, you cannot guarantee the margin accurately, but we are expecting around 14% for the entire year is possible. It may be quite, say, not into that range in quarter one and quarter two. After that, the normalcy, once it comes in, then it would be again stable.

Right, sir. I think the overall guidance we have is about 11,000 to 12,000 crores. This is including the one that we have already received, 5,500 crores.

This we are keeping the guidance because in any case, the project which is there in the pipeline is good, but you cannot guarantee the orders which were last one year, we also have waited for those orders. But again, if we are expecting that 5600 already done, so we would be definitely having an upper edge to just see this streak continue. And we are expecting 65 and auto to be added during the balance of the year in 10 months.

And on the revenue front, because I think last time we had guided some 7,000 odd crores of revenue. So is that the similar revenue guidance we have this time?

Yes.

I understood so. And on the debt balance in the debt equity ratio, just a call back number, like, what sort of are you expecting, say, by FY27 in terms of your targeted debt equity ratio you plan to maintain?

Debt number at standalone and console level, as we were discussing, that we are targeting our 800-2000 crores of debt by year-end at standalone basis, and the debt equity ratio for console would be less than 1.

Okay, understood. On the asset monetization, we have, I think, five projects we have for FY27, of which we are expecting 1,000-odd crores to be received by Q2.

Out of these five projects, this is the balance, which is around 1,000 crore to be by Q in first half of this year. And we are targeting to monetize the six project. Very soon, when we are going to receive the PCC for the entire year, we are looking into the further getting up NOC. And by end of this year, we are likely to close this transaction also.

Understood, sir. And on the ham equity requirement, I think I've noted 1,200 crores is the overall equity requirement that we have. So, 27 equity would be 760 crores, 28 to 29. I hope I have got this one right, sir.

Yeah, you are right. I think this is the same number.

Perfect. And the balance would be for FY29. That would be in that case. Right. Understood. And just one thing, I think last time you had mentioned Nakpur-Chandrapur execution was affected, if you could, you know, help me on that one.

No, no, say Nakpur-Chandrapur projects, which we have taken out from a balance order book, because there is no security regarding the bid security being released by a client. So, with that, I think the clarity is maybe they are going to be rebidded and once they are going to be bidded 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, 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 an acquisition and everything is going at a very advanced stage, but we are not expecting this to, as a better security being referred, so it clearly indicates it is going to be rebuilt.

Understood, understood. Thank you so much, sir. Thank you so much. Thank you.

Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and 1. The next question comes from the line of Parn Thakkar with JM Financial. Please go ahead.

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

Yeah, there are around 25,000 or crores of projects who already have bidded. They mostly are from roads, a few from rails, and one or two from transmission and west as well. And further, this pipeline, which already is there, is around 70,000 plus crores and roads, and around 30,000 and roadway, which are visible, which we would be likely to bid in the near future.

Sorry, sir, you said 70,000 crores.

This is the road pipeline, which we are going to bid for in the near future. 30,000 crores of order, already we had bidded, majorly into roads, majorly from roads and rail.

And in your initial demand, you said that we expect around 225 crores BESSs revenue, is that right?

So this revenue from base or transmission and solar, like solar, we already clocked 130 crore rupees last year. So this is a revenue which will be coming in SPV as a EBITDA. And these are all projects with 225 crores in base and a transmission. This is around 500 to 550 crores of total topline year or yearly that we will be getting once commissioned.

Thank you, sir.

Thank you. The next question comes from the line of Shravan Shah with Dollar Capital. Please go ahead.

I think, sir, just a clarification, I think in the previous answer to the HDFC guy, you said that for FY27, the revenue guidance is 7,000 crores, but actually initially you said 6,500 crores, sir, just to clarify.

Shravan, I think it's a roughly we are targeting at 6,500 plus number, but definitely as we are having a strong number now with balance of what 15,500 crores, and we expect that it would be roughly half of the order would be executed because the maximum of the projects which are likely to be finished within this year, that gives us the surety. Again, the pond ash is one item where the supply is mandated to SPVs in Jharkhand project, which were not earlier in their order. So likely that 500 to 600 crores of order would be done in pond ash transportation also. So this is how we are looking at about 7,000 crores.

Oh, okay. And any rough idea once we get this well-run Audi appointed date by October, out of this 3,900 crore, how one can look at this year and the next year in terms of the revenue?

Good morning, everyone. Good morning, everyone. Roughly, we would be doing around 750 crores in well-span order because in initial two months also, these four months also, there's around 115 crores of utility shifting to be done, sub-pre-construction phases where they are going to pay us. So these are not only after the appointed date, the full execution would be done, but the first, say, 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 a 900 crore kind of a revenue is doable, I mean, for 27.

Yes, yes, yes.

And so next year, then it would be close to 1,800 plus kind of a number should be there.

Not maybe exactly 1,800, but definitely it would be not less than 1,600. To complete the project in just 36 months, and we are targeting that because it is having the bonus clause to be completed in 36 months, 50 goals, and it has been done in 33 goals, it's 75 goals.

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

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

Okay. And then for broader level, how one can look at your own estimates from NHI decide, let's say, for this year, how much kilometer or value and that too also, they are also saying that the BOT would be the preferred more for them amount. So, that is also the case.

They were not expecting that the, say, quite of interest has not been showed by many of the players in BOT segment. So with that, we are expecting that, no doubt, HAM more preferred, but BOT or Glass is EPC.

But roughly, how much kilometer do we think about 3000 odd kilometer or 80?

I am not having a very exact number.

Okay, okay. But if they go for, let's say, BOT tool, but we will not go for it. We will prefer to kind of a subcontract the way we are doing for the...

Yeah, as a product is very clear.

Okay, okay. Got it sir.

Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments.

Thank you for joining us today. We remain confident in our continued success and are here to address any further questions. Please feel free to reach out to us or our IR advisors, Go India advisors. Thank you.

Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.