PSP Projects Limited (PSPPROJECT) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the PSP Project's Q4 and FY26 earnings call. 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 the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Krishna Patel. Thank you, and over to you.

Thank you, Vitesh, and good evening, everyone. Welcome you all to PSP Project Limited, Team 4, FY26, and FY26 running conference call. To take us through the results and to answer your questions, we have with us the management of the ASU project, which is presented by Mr. Dhanathai Patel, Chairman and MD, Mr. Dhanathai Patel, Chief Executive Officer, and Mr. Dhanathai Patel, Chief Financial Officer. Please note that the discussion that we made today may have today may contain certain forward-looking statements relating to future events and future performance. Numerous factors can cause the actual results to differ materially from those in the forward-looking statements. The audio of this one is called as a copyright material of ESP Projects, cannot be copied, decodcasted, and attributed in press or media without specific or written consent of the company. With this, I would like to now hand over the call to Ms. Pooja Patel, the CEO, for a opening comment.

Thank you and over to you.

Thank you, Krishna, for the introduction. On behalf of the board and management team of ESP Projects Limited, I warmly welcome all of our investors. I think you should be there. I am pleased to share our operational, financial and financial support. Thank you. Given by Accelerated Oak. Thank you very much. We are providing from multi-year. Thank you. Good night. This is an area of Shri Mbazi Mata Temple. is now well diversified. Thank you. Thank you. We have completed over 256 projects and as of year-end, we are executing 94 ongoing projects across Gujarat. And welcome to the call. The world record was established for both. The company currently has bid book of 6,600 crore with 60% from group projects and 40% from external projects. During FY26, we successfully executed and progressed several complex and minor projects. Actually, facility continues to play a critical role in enhancing execution, consistency, and site safety. The last one is the basement, ground floor, and plus 18 upper floors be executed in an exceptional time frame of 148 days, that is less than 5 months. And remain open. Now, let me share certain project level updates, SMC, SMC, SMC, SMC, SMC, SMC, You see what has been completed and all the finishing items of finishing activities of our work and Thank you. Industry update, the outlook of India's construction and EPC sector is structurally and redevelopment driving demand for high quality. Increasing preference for organized financially strong execution focus. of technology-led construction collection, such as NICAS and modular construction, which improves productivity in margin. As we enter FY27, our priorities remain unchanged, timely and quality execution of our We will brief about the consolidated financial performance for the quarter. for the quarter is rupees 1,155, yes, sorry, 1,115. Thank you. Net profit margin is at 1.88%. This is 2,512 crores. It is increased by 5% on YY babies. On account of provision of expected credit loss on English revenue, which is from Kashi project, which was amounting to. 2019 year, though the follow-up for the amount has continued. Depreciation from 19 CR to 26 CR is mainly attributable to additions in Thank you. I'd like to mention few of the important consolidated finishing numbers as of March 30th. Long-term borrowing is 43 CR, including short-term maturity of 90 CR. Short-term borrowing is 274 CR, including short-term maturity of 90 CR. Thank you. We are comprised of 194. Thank you. Thank you. As in March 26th, it's pretty easy.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone phone. 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. The first question is from the line of Shravan Shah from Dholad Capital. Please go ahead.

Yeah, thank you. Before asking this question, Hethelman, if you can repeat the retention money, mobilization advance, and unbilled revenue number, I was not able to get the exact number.

Yeah, sure. Retention money is 240 PR. Mobilization advance, 840 PR.

814? Yes, yes.

814.

Okay, okay.

And Unbuilt Revenue, Unbuilt Revenue, 440 TL.

Okay, thank you. PSR, now just wanted to get a sense on particularly on the guidance front and on the margin front. So, previously, I think we were looking at FY27, 4,500 to 5,000 crore kind of a number and then 20 to 25% kind of a growth for till FY30, so to reach a 9, 10,000 crore revenue. So, is there any change in that number?

No, sir, everyone, we will stick to about 4,500, even before the next year, and the margin is improving from here, in this quarter, also you will find it is improved from the last quarter, if you consider that 30,000. I'll see you in the next one. This will give you a figure of 90% which is for itself, you will find 8% of the EBITDA.

Okay, so from FY27, now if we have to look at, let's say there is no provision or anything, so can we look at now 7-8% kind of a margin, or it will be an 8-9% kind of a margin that one can now look at?

We can trust in a 7-8%.

Okay, okay. And going forward also, so obviously this year we have received a significant order inflow particularly from the group 10,900, so kind of 11,000. So for FY27, how we look at and going forward also broader sense how whatever the revenue we will be doing, will it be one and half times of that minimum that will be bagging the orders that way one can look at?

Yeah, we can consider that minimum 5 to 6,000 crores of water can be included on the group site, and maybe we can get opportunity in some of the counties of common ways and other places which are being announced. Good morning, everyone.

The total beat pipeline that we have talked about, so that number is 6600 crores, so is it, one can look at that, at least for next six months, one year, we may see a lower order inflow from the group, that way one can look at it?

No, it's not like that we will get a lower order inflow because now the company is getting the monthly income. And then when we get, we from our present order book, we can think about larger orders again from the green side, because there was in-house order of 6,000 crores, now it is 4,000 crores.

And now the capex for next year will be the 3-4% that we are looking at that way. So broadly, kind of a 120-150 crore kind of a capex that one can look at?

Yeah, but mostly it will be in the same range because then my experience and the operations and the size of the project we are doing now. If you like this, then...

Employee costs, sir, is there still, we will be keep on adding the overall strength of the employee, so this kind of a run rate, 36, 37 crore quarterly, how one can look at, will it be kind of in line with the 20-25% kind of a growth in the revenue, the similar kind of a growth that one can look at in the employee costs, or how one can look at?

We presently we are infusing steel, there are few people to be employed in the organization to make up these whole orders through. So, probably even in the same line and we will try to maintain because as then when the regaining goes high, the rampech was still coming little bit down and this year was the case when we have started.

Thank you, and all the best.

Thank you. We have the next question from the line of Vaibhusha, from JM Financial. Please go ahead.

Yeah, hi, sir. Sir, on the SDB money, what is the status right now?

It is as it is what we have been chasing them in the quarter, but they have just started the operation in the last month, was it? We just expected some things. Thank you for happening next year. Please see it.

What is the money that we are expecting, which is setting in our books right now, in receivables?

So, receivables, we have already considered $90,000, which is before we are getting, because the interest part is what they have comprised, but on the resume, it is $90,000.

Okay. Enthal, you mentioned the provision we took off around 29 crores in the plastic project. So what was the issue over that?

See, it was because of the provisions of the tax fund. Like the DEME have received just more than one year. It has to be made for them. So still, we are trying with the organization and this being a religious organization, we are choosing just not by two.

The margins you said around 7-8%, so we are targeting closer to 8-8.5%. So, any reason why we are lowering the guidance?

I am not lowering, I am giving that a little bit conservative. Because if you see this pattern also, if you find this provision of particular, then it is at 8%. So, it can go up in percent, plus or minus.

Okay, so any major provisions are we expecting in next year?

No, we are not expecting because only if accounts equal left is UP and then we are changing at the government level and if that account explodes, then we will get the better idea.

We have not been able to hand over the project to them?

No, no, no. The process is also over. But the process is at the extension of timing because of the existing hospital's renovation, the project's UOT gets delayed. And that is the reason that our accounts are not settled. So, probably we are trying that before March, I was expecting to get closed.

We have two Dharavi projects in the order book. So, what would be the value of each of them, and what is the share of Adani in the overall order book right now?

So, presently, if you see the order, my total outstanding order book is around 13,200 crores, Over which 67%, 9,000 carotis Adani and 4,300 carotis non-Adani, so 33% and 67%.

And Taravi projects, we have two, right, in the book?

Sir, we have two projects in the book.

So, what is the value of each of them?

We are not mentioning project-wise under info. So, we keep that review from not discussed as well now, because we are not considering each and every project on month basis. But it is something you can consider at first relative to 47 minutes, that's right. And the second is 7.5 minutes.

I was not asking the outstanding order book, I was asking the order value.

So that's what I'm saying. I'm not declaring any order as of now by the project of the project. So I'm saying that mine is something less perfect and, you know, 75 million.

Okay. Okay. Thank you, sir. Those are my questions.

Thank you. The next question is from the line of Vishal Parival from PL Capital. Please go ahead.

Yes, sir. Thanks for the opportunity. First, one clarification in terms of our revenue guidance. Earlier in the call, we have mentioned four to four and a half thousand or crore. So, are we changing that to four and a half plus sort of number? And how exactly to look at that?

No, previously also I was expecting that we said we should be having a revenue value of 4,500. Today also we have said it will be around 4,500. Okay, fine.

And then I think in this balance sheet that we have provided, we have seen a good operating cash flow from maybe look like, I mean, led by a mobilization advance that we have received and the cash balance has improved. So these advances that we have of 800 odd crores, are they interest varying on how exactly it is structured in our working?

No, it is not interesting. Any advance coming from the group is on it.

Okay, okay. Great, sir. And one last thing, sorry for harping again. On this ECL provision, I think the 29 odd crore that you mentioned, see what happened, like, you know, though it is one-off, but when it becomes consistent, so I think it becomes kind of cost. So, I mean, like, you know, going ahead also, any guidance or probably anything that can be provided will be helpful, how exactly to look at this ECM provision.

See, it is as per the accounting requirements, we have met this person, otherwise we are still chasing all these things which has not been paid yet.

And in future also, It was helpful and thanks a lot and best wishes, sir.

Thank you. The next question is from the line of Ayush Sabu from Choice in Institutional Equities. Please go ahead.

Can you throw light on the EBITDA margin guidance for FY27 going forward? I mean, do we see any considerable increase in cost?

Your voice is very low. Your voice is very low.

Can you give guidance for the EBITDA margins for FY27? And could there be any significant impact in the ongoing war on our material cost? I mean, do we see any risk for a decrease in EBITDA margins?

See, I have already given a guideline of 7-8% weeks of the year. And on the EBITDA margins here, some of the margins which are all going like S&P or R&D can have a little bit impact on the median margin. Most of the work is from Adhani Group, and in Adhani Group, all these materials are passed through, so we don't see any risk related to war, keep making a bad impact on the war on violence of the lives.

And for that, I'll say this every time.

Yeah. Thank you.

The next question is from the line of Dhananjay Mishra from Sunidhi Securities. Please go ahead.

Hello, am I audible, sir?

Yeah, it is a little louder.

Yeah. Now it's better? So, congrats on very strong execution. We have achieved our 4.26 guidance and exceeded the guidance and also order inflow and order book. Very strong, which provides growth for next three four years, but my question is that earlier, I mean, before Adami project started, we used to make 10, 11%, 12% EBITDA margin, and our FAT margin used to be 5-6%. Now, even if we are doing 3,000 plus revenue, Right margin is close to 2% and we have reason to, I mean, all these reasons like CCR provisioning for different projects. But even at 7.5-8% EBITDA margin, can we improve net profit margin to the extent of 4-5% by managing our interest cost because we don't have to pay interest on advances from Adhani project. So maybe we can save on that front. So can we reach 4-5% in next 2-3 years in terms of cash margin?

See, you are absolutely right. This year only we had this program of using the total credit facility which we had available. Now, there is mobilization advance coming from the mechanic group, and most of the projects are new related to the existing project or the project that you are going on. I think that is also getting completed. So, the comment of... I think capital will be mostly surprised by the group advance only. So, we should be in a better position or maybe I expect, let them expect that we should get through by next year. So, this, this year 41 or 45 crores of interest can be converted into profit, which can put us to the rest of this.

Okay, because less than 2% paid margin, I mean, even if you do 5000, 6000 crore top line, it is relatively hard. Yeah, so, at least even for construction company, one should really look at 4.5% paid margin, then any kind of .

That's what we should target for in the next years.

Yes. And so what is the outstanding amount in UP Medical in terms of unbilled or receivable, Tom?

Yeah, I'll brief about that. We have unbilled of around 60,000. And receivable of what? 60, 60, 60, 60. Yeah, since we have received the GST invoices for this year, we have a further wait. Otherwise, all final bills we have admitted and we are waiting for the final certification of all projects.

Okay, so if at all we have to take TCL provision in future, depending on how the auditor is suggesting, we have to take on this speaker, alright? Don't say that we should not take that choice. No, no, no, I mean, that is the maximum, yeah. Right, right, right. I mean, I can understand that, I mean, despite the, I mean, it was such a...

No, no, you are absolutely right to understand from the investment point of view.

Good morning, everyone. Good morning, everyone. All I want is that the way we are doing in terms of top line, order inflow, order book, similar things should flow in terms of operating corporate and part. So there should not be any surprises on quarter basis. So that is all. Yeah, absolutely. Okay, sir. Thank you and all of us. I hope we will do much better in 427. Thank you.

Yeah, thank you. Thank you.

Thank you. The next question is from the line of Shikhar Doshi from Access Securities. Please go ahead.

Thank you. Good morning, sir. Good afternoon, sir. I would want to know what is the working capital days that we are expecting for FY27 and going forward? I believe our current is 94 days. Yeah, so, basically, once we are, we have started getting through projects, the timeline of payments are very stringent, and even we are getting a row of advances of these bills submitted. So, there is going to be any puzzle ending of the working department, very long term, so, we see that it should be within 60 days, going forward. Okay. Thank you. That's it for me.

Thank you. The next question is from the line of Lokesh Kashikar from SMIFS, Institutional Equities. Please go ahead.

Yeah, hi. Thank you for the opportunity. Sir, a couple of questions from my side. Firstly, on the, you know, we have received, secured around $6,000 worth of order interest during quarter flow, which has basically bloated our order books around $100,500 worth. So, just wanted to understand, is there any slow moving order in the current order book or, you know, at the initial level of construction, whether the revenue acquisition would be comparatively lower in the, let's say, the current venture. Just wanted to have a test on that.

Actually, we should not consider it as a slow moving order, but because of the initial phase between computer MAHIM and BATUNGAR. Mind, we have just completed the excretion part, and not only we are just starting the sheet trial, and in Mumbai, there are so many issues related to trick-cutting and getting the royalty on time, and lastly, also, they start to mention the royalty one month back. So, such types of issues at the foundation level can hold... Thank you. Thank you.

So, but, do you think that around 10,000 close-up projects are out of the call?

Yeah, yeah, you can consider it.

Okay, okay. And, secondly, basically, on Receiver's front, I think I have joined this. So, basically, our Receiver has jumped to around 928 crores, you know, and it is a sharp jump. It is at a 25 level or a 25 level, even from the Edgecom like that. So, what has been the reason for that one, and do you think that it will be modeled ahead?

See, basically the quarter revenue has also increased compared to previous quarter. So most of the sales have been booked in February and March. So that is still showing in the 35th March number and will be collected in the month of April. That's the major reason because the revenue has increased in this quarter in the last two months.

But in terms of days to look at, in terms of digital days, do you think that it will, it should be stable at around 60-70 days?

Because at the current venture, it is around, you know, closer to 100 days.

Yeah. What is the customer level?

Yeah, as I mentioned, it's like unbeleavened as auto-converted to digital.

The revenue has reduced almost more than a hundred years,

so that it comes past in the retailers, and that will be materialized over a period of time. And as you mentioned, that it should be... It is now 90 to 100 days, but I have already replied to one of the questions that we will be executing the orders going forward, and the payment terms are very favorable for that. We will be getting the money on time, and we will be making around 60 to 70 days of trade disabilities.

And just last one from my side, what is the interest-bearing portion of this mobilization advance of 814 Group?

There is no interest-bearing mobilization as of now.

So all mobilization advance is interest-free?

Yes, yes, yes.

Okay, okay. That's all from my side.

Thank you.

Thank you. The next question is from the line of Bala Subramaniam from Aryan Capital. Please go ahead.

Good evening, everyone. Thank you so much for the opportunity. Sir, my first question, what is our current capacity utilization for our three-cap facilities? Once we move to 4,500 crore kind of top line, is there any further capacity additions required? If yes, what is the caprix cost and when it will be operational?

See, presently, the present capacity of the Pricas plant is 3 million square feet per year, and the way the Pricas operation is growing up, after completing 170-meter building, we are having two more orders, three more orders from the exhibition from Adali, and also we are designing an annual CPA in the... Presently, if you go back, the place will be clear. We are in one. We have to go forward. Thank you.

From the Commonwealth Stadium, it's around 7,000 to 8,000 cases of potential orders, potential tenders. Whether we have received any formal RFQ or RFP or any thought process on that, when we can expect that this tender?

Actually, we were expecting in before

So, my last question, the trade receivables also increased 5.30 crore from 9 to 8 crore near 5.26. Actually, the exhibition is very strong. I'm trying to understand whether we have seen normalizing trade receivables from this month onwards.

We have already answered similar question earlier, but we will again repeat that as this revenue has been boosted in February and March, majority of revenue because of that.

The next question is from the line of Bhavik Shah from Invexa Capital LLP. Please go ahead.

Congratulations on a good execution this quarter.

Please be a little louder.

Yes. So, my first question is regarding the Kashi project. So, we told we have 60 crores of unbilled revenue still there.

No, it was related to U.P. or medical college projects or 7 projects of U.P. medical college industry

after Kashi. Yeah, so our unbilled is still 60 crores, so how much is still in our receivables?

It is 40 CR in receivables.

30 CR? 4040. Okay, 4040. Understood. And so, like, what would be a generally execution timeline of an order book? Should we consider two years as the normal execution timeline?

No, we did see all projects had of a large volume. Some of the projects had of a large volume. These are in Moombay also. So this will end between two and a half to three years.

Sir, regarding our bid pipeline, can we throw some light on, say, Adani and non-Adani bid pipeline, say, in FY27, currently what we have?

Sir, I'm only going to say that we are expecting, you know, can we order pipeline, you know, bid pipeline is about 6,500, so after bid 5,000, we'll be able to do, and 1,000 client is here,

bidding in.

5,000 and 1,500. So, 5,000 will be around on the grid, and 1,500 we have the bidding and the option.

Thank you.

The next question is from the line of Shavan Shah from Dollar Capital. Please go ahead.

Hi, sir. So, just wanted a clarification. You were answering to one of the previous participants. So, in terms of how at a 7-8% EBITDA margin, how we can improve the net profit margin. So, you were saying that the interest cost, which is for F426, let's say 45 crore, so will this, going forward, are we looking at kind of a nil kind of a number or very, very minimal number? That was the way you were trying to say?

I think it should be nil, so I am expecting the company should be debt-free by BPR, or maybe in the next two quarters. I really think we'll be talking about, we receive all the payments, and even if the receivers are like, R Plus was complex, and it is Patlanger, and UP. Even if we get that money on now, there will be a big help, so we should be in a cutting position in Dunsville, next year.

Maybe at least two, three quarters down the line, we should be from maybe max Q3 or Q4 onwards. This on a quarterly basis, 11, 12 crore interest should become a kind of a zero.

Damn, Mr. K. Okay, okay.

So, the gross rate that we have, 317 crore, that will be kind of a zero that we are now looking at.

Yeah.

And on the other income front, then are we looking at any kind of a major shift? So, for full year, we are having a 21 crore in FF26. So, is there a way that this number can also be on the higher side?

See, basically this other income mainly includes the interest on the F3, right? So, if the F3 increases, it may increase to that extent. But there won't be any further addition in that.

Okay. And this depreciation run rate, so which is obviously keep on increasing, so 26 crore. So, let's say, next year, FI27, we will be doing 4,500 crore and maybe then 20-25%. So, maybe close to 5,700 crore revenue in FI28. So, at that rate, what kind of depreciation one can look at, 32, 35 crore, so that would be a kind of a 140, 150 crore on a yearly basis. Because for us, these all numbers is becoming very, very important because the EBITDA margin is 7, 7.5. So, any change in the way as far as the interest cost, if it goes down, then it will be a decent boost at the pet level. So, similarly, I am trying to understand the depreciation.

So, basically, depreciation and interest funds we cannot compare. Interest funds, in our hand, means if we collect the funds and all, we will be able to reduce that. But depreciation is the requirement of the business, right? So, as we have been saying that other 3-4% of the top line, whatever order we keep there, we have to incur as CapEx. So, this year, we have incurred around 190-200 TRs of CapEx. So, next year, it may increase, depending on the order book. We cannot say that we will be reducing depreciation expense.

Probably we can consider that this year's order of inflow was 10,929 million. Thank you. Canberry. In general, you can say, consisting, three-person catholic inclusion, and consisting of the distribution of the youth. You can come to your table.

Sir, this entire, obviously, some of the projects which we have recently won, obviously, it will be at a starting phase in terms of the design, and then it will start. But broadly, by Q3, the entire, this 13,500 crore order book would be kind of contributing in the revenue?

Yeah, the first two quartals, as we said, that the premium is June and the end of the quarter. That can be because of the present situation of the labor in the first quarter, maybe in the once more. Otherwise, all the projects...

In terms of, our goal is to keep on increasing or maintain the growth in terms of the 20-25% for next couple of years. That's the broader thought, and we will be working towards that.

100% because that is the minimum which we are targeting because now visibility is not a problem. Strengthening ourselves to a larger extent in terms of executing large projects and building up companies with larger extensions. Thank you.

Thank you and all the best.

Thank you. Thank you. A reminder to all the participants that you may press star and 1 to ask a question. Okay, sir. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Thank you, everyone. On behalf of management of TSP Project Limited, we sincerely appreciate your participation in today's post-earning call. We trust that we have been able to address most of your questions. Should you have any further queries, please feel free to reach out to me or our investor-relationship partner, Dubai, and the team will be happy to follow up with you offline. All right, we may now continue the call. Thank you and have a good day. Thank you, everyone.

On behalf of PSP Project Limited that concludes this conference, thank you for joining us, and you may now disconnect your lines.