Transrail Lighting Limited (TRANSRAILL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Transrail Lightning Limited Q4FI26 earnings conference call hosted by Philip Capital, India Private Limited. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company has on date of this call. These statements are not the guarantee of future performance of the company. And it may involve risk and uncertainties that are difficult to predict. As a reminder, all participant lines will remain 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 the operator by pressing star, then zero on your touch-tone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Harshal Shah from Phillip Capital, India Private Limited, for opening remarks. Thank you, and over to you.

Thank you. Good day and a very warm welcome to everyone. On behalf of FILEC Capital India, I am pleased to welcome you all on the winnings call of Transrail Lighting Limited. We are happy to have the management with us here today for a Q&A session with the investment community. The management is represented by Mr. Ranthit Narang, MD and CEO, and Mr. Deepak Khandelwal, CFO. Now, we will begin the call with opening comments from the management, followed by an interactive session. With this, now I hand over the call to management for their opinion and comments. Over to you, sir.

Thank you and welcome, everybody. With me, I have our CFO, Mr. Deepak Khandelwal. I am Randeep Narang. So as you see, the year 1 by 26, transfer in terms of performance, this is our best ever since we got listed. As we reflect the year gone by, I am pleased to share that we have delivered strongly on the commitments we made to our stakeholders and strengthening the foundation of our business for future growth. At the beginning of year 26, we guided approximately 25% growth over previous year. Supported by healthy order, inflow, strong execution, momentum, and discipline project delivery, based on our overall performance H1, we further revised the guidance from 25% to 27%. But, eventually, at the end of the year, we exceeded the guidance, delivering 30% revenue growth for the year, finishing March 26. More importantly, this growth is achieved by maintaining strong profitability, improving our balance sheet, and enhancing our operating capabilities. This reflects the quality of our order book, the strength of our execution, and disciplined approach. For the year 26, Record year for transceal, we achieved the highest revenue, EBITDA, and profit after tax. Revenue stood at 6,8880 crores, while EBITDA and PAD also reached record levels. These milestones reflect the efforts of our team and trust of our customers, our ability to execute large-scale and complex projects in different geographies. Alongside the operational performance, we had significant progress in strengthening our financial position. During the year, we reduce our net debt substantially, enhancing working capital efficiency, improved leverage matrices, and generally a healthy operating cash flow. We believe that these improvements are particularly important as they provide with us a greater financial flexibility to pursue future growth opportunities while maintaining discipline on capital allocation. Our auto inflows for year 26 remain healthy at 8,520 crores. And we have been very careful and focused and selective in disciplined bidding. More importantly, we ended the year with an unobserved order book, including L1 approximately 16,361 crores from a level of 14,551 crores last year. This clearly gives us a runaway for more than two years in terms of order booking to revenue. The order book remains diversified across both domestic and international markets and provides strong revenue visibility over the years. We want to focus not only on quantum of orders, but the quality of orders, ensuring growth is aligned with profitability, with a clear risk management objective. For the year 26, we had significant capacity enhancement in our factories. The key highlight during the year was successful completion of a tower manufacturing expansion, both brownfield and greenfield, which resulted in the installed tower manufacturing capacity to be more than doubled. We continue to invest in expansion of conductor manufacturing facilities as per our CAPEX plan. As we have shared with you, by end of H1 this year, we will finish both phase 1 of CAPEX, which was announced in IPO in May 25. This will further lead to increase in tower capacity to 1,096,000 metric tons, and conductor capacity will double. Further, we're looking at growth. Our board has approved additional capex of 203 crores in a board meeting on 26-5, that is yesterday, towards looking at improving our construction productivity with construction equipment. The investments are not merely capable capacity additions, they represent a commitment to building capabilities required to execute the current growth phase of our company. On execution front, we continue to demonstrate our ability to deliver critical infrastructure projects across India and internationally. During the year, we successfully completed 765 kV transmission projects in India, supplied more than 1,50,000 metric tons of towers and 4,000 kilometers of conductor. Internationally, we completed Phase 1 of Bangladesh River Crossing Transmission Line and made substantial progress in Phase 2. We also expanded our international footprint across new markets such as Abu Dhabi, Tunisia, Djibouti, Botswana, further strengthening our global presence. As we look at the opportunity landscape, it remains highly attractive. We have entered multi-year transmission infrastructure investment cycle driven by renewable energy. The rising power demand, grid modernization and upcoming HVDC projects, the scale of investment being planned across transformation infrastructure provide a strong runway for growth for EPC companies. With more than 2 lakh kilometers of transmission lines to be added and investment outlook of more than 900,000 crores being envisaged, this sector has very good tailwinds going forward in the next five years. At the same time, we continue to see encouraging opportunities across international markets in Africa, SAG, ECC regions, where investments in electrification, transmission, infrastructure, and grid expansion continue to gain momentum. Our focus is to secure more multilateral development bank-funded projects very clearly in part of a strict risk management perspective. Over the years, Translator has built capabilities that differentiate us in the marketplace. With 3x growth in revenue for the last 5 years, we are stronger than ever. We have a large manufacturing base, strong balance sheet, diversified geographical presence, robust autobooks to provide a very proven execution record. These sense positions as well to capitalize on the opportunities both domestic and international markets. As we enter year 27, we do so from a position of strength and confidence in the opportunities ahead. We will continue to manage the issues coming from the geopolitical scenarios, which continue contribution and inflation, including fuel prices, shipment, insurance costs, etc. Lastly, our Board of Directors are recommended to devote 100% on equity share capital, that is Rs. 2 per equity share, for the financial ended 31 March 2026. I would like to thank our customers, employees, shareholders, lenders, business partners, and all stakeholders in their continued trust and support to achieve these results. Now, I request our CFO, Mr. Deepak Khandriwal, to take you through the financial performance for the quarter and the year going forward. Handing over to you, Deepak.

Thank you very much, sir. I will now take you through financial performance for fourth quarter and full year financial year 25-26. Financial Year 26 was a year of strong financial performance and disciplined execution for the company. We delivered robust growth across key financial metrics while maintaining margin, improving working capital efficiency, strengthening our balance sheet, and generating healthy cash flows. Let me take you through the key financial highlight for the quarter and the full year. For Q4 FY26, revenue from operations stood at Rs.1863 crores. For the full year, revenue reached Rs.6880 crores, representing a strong year-on-year growth of 30%. EBITDA for Q4 FY26 stood at Rs. 207 crore, while full-year EBITDA reached Rs. 820 crore, reflecting a year-on-year growth of 21%. EBITDA margin stood at 11.08% in Q4 FY26 and 11.92% for FY26. Profit before tax for Q4FY26 stood at 1.5pm. The Board of Directors have recommended a dividend of 100% on equity share capital. That is Rs. 2 per equity share capital for the financial year ended 31st March 2026. Our focus on working capital management continue to deliver positive results. Working capital days improved to 81 days in FY26 from 91 days in FY25, reflecting improved collections, efficient project execution, and tighter control over working capital. Our operating cash flow more than doubled to Rs. 817 crores in FY26. Net debt reduced by 80 crore that is 30% reduction year on year. Our finance cost to operating revenue ratio has improved by 55 BPS during the year. Our capital efficiency metrics also remain healthy. Return on capital employed or ROS has remained consistently over 24% over the last three years and for the year it is an impressive 25.79% reflecting efficient capital allocation and strength of our operating model. With this, I would now hand the call back to the host to start the Q&A.

Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, we request you to restrict to two questions per participant and rejoin the question queue for follow-up questions. We take the first question from the line of Deep Sangvi from Dalal and Boracha, Stockbroke Private Limited. Please go ahead.

Hello, I'm Armin. Yes, please go ahead. Thank you, sir. Thank you for the question. So, my first question is that, so, as a phase...

Sleep, I do apologize to interrupt you there, but your audio is a bit low. Could you please use your handset and proceed with your question?

Hello, am I audible now? Yes, please, go ahead. Yeah. So, as our phase one of tower capacity is completed now, and the current capacity is 1,72,000 MTB, right, sir? So, now, with the higher capacity, should we expect any improvement in project execution timelines? And if yes, is it possible for you to quantify by how much?

So, thank you for this question. As you know, we have a 16,000 plus crore audiobook. And most of it is T&D. So the tower supplies will support our execution speed and productivity. And I think from our point of view of commitment to customer and L2, we will be meeting projects on time. So the key for us is delivering project timelines and executions as per the contract we have agreed on. So this will definitely hasten the progress. For execution timelines, and I think we will better it by at least a month or two within the contractual period of 24 months or 30 months, depending on where we are supplying.

And just to follow up to that, so does the current autobook of, as you said, 16,000 round crores, so does that provide sufficient visibility to achieve the guided revenue growth of, as you said, 22%?

So, substation is a smaller part of a business, not more than 5%. So, mostly it is transmission. So, this tower business, tower supplies will help our tower execution of transmission projects.

Right. So, no, sir, I wanted to ask, so, is it… Um... Is the visibility there for the guided revenue growth of 20% to 22%?

Yes, we have visibility of revenue for 20% to 22%. Our order intake growth plan is more than 25%. So both are in line with our strategic growth plan. Right, okay.

And my second question was that, could you share how was the Q1 ordering activity been so far, both in terms of fresh tendering and conversion into final orders?

So, we are in the first phase of Q1. We are bidding jobs. You would have bid jobs worth 10,000 crores in Q1, and we are awaiting results going forward. Right, okay.

Steve, I do apologize to interrupt you.

If you could please join back the question queue.

Sure, sure, sure. Okay, thank you. Thank you for the question.

We take the next question from the line of Ishita Loda from Swan Investments. Please go ahead.

Thank you for the opportunity. I have a question to the CFO, sir.

Ishida, I do apologize to interrupt you, but your audio is not clear. Could you please use your hand?

Is it better now? Hello, is it better now? Yeah, much better. Yeah. I have a question, a bookkeeping question on trade acceptances. What is the value of trade acceptances as on 31st March 2026?

It is around 1200 crore, roughly.

Okay, and how do we see this going forward over the next one to yours?

This is going to remain by and large the same level, and any requirement of credit, we will use other credit pay reforms like RxL, VFS for making the payments, and we are promoting the same inside our company.

Okay, thank you. I'll fall back in the queue.

Thank you.

Thank you. We take the next question from the line of Gurshidik Singh from Prudent Equity. Please go ahead.

Hi, am I audible? Yes, very much. Thank you. Hi, so I want to know what was the reason for degrowth in our strongest quarter? This quarter, you know the revenue degrowth?

So, if you recall and if you know the last quarter call, if you recall, We had improved our guidance for the year from 25% to 27%. And now we actually have achieved 30%. So we knew what would quarter four look like because almost 20 projects we have completed in December. And all the new projects are in startup phase of design engineering approval. So this was known. We have met our annual guidance of 30%. We met an EBITDA guidance of between 11.5 to 12%. So Q4 was known to us because we had a very positive and heavy Q2 and Q3. See, every project is different. The cycle of execution is different. And some are in the execution phase, some are in the closure phase. So knowing this, we kept our guidance at 25, but better it to 30. Of course, there were some supply chain disruptions and global economic changes and disruptions in February and March, which also hampered some revenue, which got delayed and postponed to this year.

Okay. So, do we expect better revenue performance from this point onwards and, as you know, better execution considering all of the issues that are coming in?

So, we believe that for full year, we will do 20 to 22% growth, which is good. And we are confident that the execution cycle will remain. The first quarter will be stable too. That's what we expect.

And my second question was regarding the EBITDA margins.

I would request you to please join back with the question, Kiyo. Thank you. We take the next question from the line of Raj Saraf from Finvestors. Please go ahead.

My question is on the beta margin only. We can see that we are going at the revenue front and even we have now in the CapEx online in the coming months, while our margins are dropping from 13% to 11.9% and now we are guiding for 11%. So how to look at that?

Sir, firstly, we gave a guidance of 11.5% to 12% last year. There was no 13% guidance, and within the 11.5% to 12%, we achieved 11.9%. Therefore, we met our commitment and guidance. Now, for the year 27, as you yourself know, there are changes in the geopolitical environment, the Gulf situation, and there are cost escalations globally. Keeping due prudence and caution, we have given a guidance around 11% and if things stabilize and situation changes, we see an upside going forward. So we have not changed the guidance since we looked at one and a half years ago. In fact, we are the best in terms of the margins in the industry or one of the best and therefore you should look at it from that perspective.

You have not given guidance, sir. I was going through the presentation. So, in FI25, we are having 12.7%, and FI26 is 11.9%. The trajectory is going down one hour. We are talking about a number, but look at the annual numbers. Sir, I am talking about annual numbers only, sir.

Yeah, so annual numbers was guidance from 11.5 to 12, and that's what we have done, and if it is higher than that, that's an upside.

I am going through the presentation, the consolidated figure on presentation, page number 14.

Yes, I am aware of that, but last year's guidance, if you see, was 11.5% to 12%. It depends on the nature of the project, the kind of project, the geography of the project, the margin of the project. So it cannot be treated apple to apple, year to year.

Okay, so we take that 11% margin for FY27.

Yes. One of the good margin profiles in the industry.

On 20% growth, sir, there's hardly any bad growth, if I can just calculate around.

I mean, the growth on 20% revenue, the pad growth will proportionately go up. You're saying from this year in terms of the margin profile and the next year versus the margin profile. Yes, it will be in proportion. Obviously, it will be growing for sure. And if things improve globally and situation improves, we will look at better margin profiles.

Yeah, okay, sir. Thank you.

Thank you.

Thank you. We take the next question from the line of Bala, Murali, Krishna, from Oman Investment Advisors. Please go ahead.

Hi, good evening, sir. First of all, congratulations on good numbers. Thank you, thank you. Even we are receiving that 13% margin in few quarters, but you insisted on sticking to 1.5 to 12% from the Q1 itself. Also revenue guidance on the issues. So, for coming to this FI27, so you got it for 20% growth and 11% EBITDA margin. And one thing I think we slightly missed is the order intake in the FI26. We are expecting 10,000 flows, around 10,000 flows, but we are slightly missed. So, how do you think this order inflow and is there any potential for revenue and margins uptick in addition to the guidance which you gave in?

Okay, so that's a good question. So, against 10,000, we need 8,500 new order intake. There were some orders which we had built, which the orders had not opened and gotten postponed to quarter one. So, we are very close to our guidance and definitely we will catch up. This year's guidance is 10,000 to 11,000 crores for new orders to come in, which we are confident that within domestic, international and all our four business verticals, we will achieve that. So, from our order intake, we have a two-year visibility of order book to revenue, and we are comfortable that our guidance on revenue growth of 22% will happen, because we existingly have those orders in hand, and we have a full 11.5 months, I would say, or 10.5 months of runway to book new orders.

And lastly, this Bangladesh project fund, sir, I think maybe we would have completed or we are at the end of the completion. You can share that status. And one more thing is the downside in the Q4 number, sir, is it structural? You told that it's the project completion. So how do we get moving forward with the quarterly up-thick and down-thick? So annual rate is a good way to look at the top of this.

So, you are right. I will answer your second question first. Please look at the annual growth. We promised 25%. Last year, we did 30%. This year, we are talking about 20% to 22%. And definitely look at annualized growth commitments and guidance. On Bangladesh, we have done very well. Phase 1 is completed. Phase 2 will get completed in the next 3 to 4 months. And we are very confident on the execution piece. The Bangladesh project we will try to close in the next six months. So that is positive. And on overall quarter-on-quarter basis, we will try to achieve, based on the project lifecycle, project ability in terms of which phase it is, startup phase, middle phase, execution phase, we will deliver the Q&Q numbers.

The next question from the line of Mangesh Bhadhan from Aversha Capital. Please go ahead.

Hi, good morning, sir. A couple of questions from my side. First is the bookkeeping question. So, out of the total interest cost, how much was the entry discounting charges? And with the reduction in working capital, can we see some decline in that going forward? That's the first one.

Yeah, LC discounting charges overall including the interest there on remains around 8.5% to 9%. But industry is maturing a lot and we are expecting there is going to be a reduction of 50 basis point to 100 basis point during the next year.

So, if you can quantify how much was it in this year, FY26, out of the 210.000 crore of finance core?

It is roughly 40 to 50 crore rupees, exact figure you can collect from my investor relations.

Okay, and so, second question was basically largely on the low expectation that we have. So, we have seen a lot of old EPC companies also participating in D&D contracts. So, have you seen any increase in competition which may impact the margins going forward?

So, of course, when there is opportunity and the way the market potential and the government expansion plans are there, that will attract more competition for sure. But please understand that we are in the top 3-4 EPC players in this business. We have all the PQs, we have backup on factories, backup integration, our own conductor, which most of our new competition doesn't have. So we are well placed in PQs globally. Yes, there will be competition intensity, but we are not looking at revenue growth without perfectly good margin. The market is big enough for us to pick and choose our spots. So, to answer your question, do not compare the margin if we are having new competitors?

Perfect, sir. Thanks a lot. I have very well done on the balance sheet as well as cash flow side decisions.

Okay, thank you.

Thank you. We take the next question from the line of Anshul Jetty from LKP Securities Limited. Please go ahead.

Hello, sir. Thank you for the opportunities. So, first of all, congratulations on meeting the numbers pretty much you had guided in the last quarter. So, my first question is there's a reduction in our margin guidance for FI27 owing to the situations and on the globe and commodity prices are acting high up as well. I just wanted a bit of clarity. Could you quantify the bid pipeline internationally and the domestic part as well, you know, with the ongoing situation around the globe? Has there been any delays in the bidding process?

So, actually, you have asked a very good question. The bidding pipeline has actually not diminished, you know, and we feel, and we are very happy, at least the India bidding pipeline, as per government announcement, is very good. We are looking at 80 to 1 lakh crores of new opportunity, potential, where we can participate. Even internationally, the bid pipeline, though less, is around 50,000 odd crores, has not diminished. And therefore, the demand part of the global economy and Indian economy is good. The part which you yourself mentioned, the supply chain today, because of global disruption, is in a... I would say cash-22, I can't call it a disarray, but there have been delays in supplies, and therefore, everything does get delayed because of the disruption in supply chain, whether it's logistics or it is backward integration, supply chain, material management, etc. So, demand is strong. Now, how do we manage this supply balance and make it stable is the manner in which we are working on.

Thank you very much, sir. Next, it's a good bookkeeping question. Can we quantify the figure of Africa orders as of March 31st and Bangladesh orders as well?

So, I can answer this right away. We have Bangladesh orders, which is approximately... 3-4% of our 16,000 pro order book, we've executed most of it, and Africa order will be approximately 20% of the global order book.

Okay, sir. And just one last question.

I would request you to invite back to you for follow-up question.

Just one last question, if possible. What's the segmental revenue breakup for the whole year in your segments?

Again, please.

The segmental revenue breakup for FY26 in power, civil and jail.

The segmental revenue is approximately 50%, and our international revenue is also close to 50%. So, that is the pretty much close split we have between the... No, no, sir.

So, I am asking for the breakup between power segment revenue and civil and railway segment revenues for FI26.

So, it is around 90% is poverty and the rest 10% is our other businesses.

Okay, sir. Thank you.

Thank you. We take the next question from the line of Varun Bahal from Plotus Investment. Please go ahead.

Yeah, good afternoon, sir. Thank you for the opportunity. Just, I know you have been sticking with your guidance of around 20 to 22%. Historically, we've been growing at 50% plus, and we have a clear order book by the slight slowdown. And we really appreciate the growth that we have seen over the last five years, but by this year, a reduced guidance.

See, guidance depends on the kind of project you have, the geography you have, and when you are an EPC company, engineering, procurement, and construction, your procurement and construction plays a huge role in execution and the growth. If your procurement pipeline, which is supply chain pipeline, gets delayed or disrupted, there will be an impact on the execution construction. So, as I have been mentioning on the call, that today the geopolitical situation is delaying things. It is uncertain. And our guidance, therefore, is 20%. And if things improve, we will definitely improve it to 22% and more. But at this point of time, a prudent and practical company, we would prefer to be fair and clear about our guidance.

Understood and appreciated, sir. Would you see a... A rebound in growth levels in the next year, if things tend to fall back to normal?

Of course, even H2 for next year, obviously, we have an order book. We want to earn a new order, about 10,000-12,000 crores. So, we are definitely looking at growth, and our three-year horizon vision and our planning exercise is complete, and definitely, we would like to grow at a trot of 20-25%.

Understood, sir. Much appreciated. Thank you. Thank you.

Thank you. We take the next question from the line of Saket Kapoor, from Kapoor & Company. Please go ahead.

Namaskar, sir. Hope I'm already good. Yes, yes, thank you. Yes, thank you, sir. So, firstly, just in continuation to the earlier participants, taking into account the current geopolitical set of the industries as a whole, what is it in the likelihood that Transrail will be exhibiting in terms of revenue growth and how should we model in our EBITDA margin trajectory for the current financial year?

So, as already mentioned in our earlier question, we are looking at an order book of 16,000 plus crores and new orders of another 10,000 to 11,000 crores. So, therefore, we are also hopeful that some of these orders come in the early part of this year. 20-22% growth and a base has become bigger now. At 6,880 is a good number to grow, which is, again, has a guidance, one of the better guidances or top-level guidance within the T&D industry. BIDDA, as I mentioned, we have promised a level of 11.5% to 12% last year, and we can't compare it to the previous year or the previous year because the nature and the type of projects is different. Today, as I explained, with the supply chain disruptions, Delays in supply chain, understanding the financial energy, price increases, inflation, we believe that around 11% is a good number to go forward. And if things improve, obviously this will improve.

Okay. Yes, sir. I am on a disturbed line. So, revenue growth of 20% and EBITDA margin trajectory of 11%. That is what this comment was saying. Yes, sir.

Which is again in the line of very, let's say, top profile of guidance amongst other leading companies.

Correct, sir. Now, to come into one of some of the pain points, particularly with the availability of labor, and now with labor issues also affecting performance for many companies who are dependent on them, sir, how are you positioning in the availability and the employee cost ranging, going ahead? And secondly, sir, with reference to the metal prices, how are we protecting our margins on that fence?

So, as we mentioned to you, the labor piece, we are diversified in four or five verticals between domestic and international. And T&D is our major growth driver with civil and poles and railways. Now, each segment has a different labor profile. Obviously, there is a demand and supply issue. There could be delays in labor coming and going, depending on their... Requirement and need. So, we are managing it prudently. We feel that we will be able to execute the revenue growth and the labor management. We have separate teams and focus. So, we are confident that this will not be an impediment in execution for us. Your second question on managing the inflation on the cost increases in different... Facets, including commodities. The guidance given also has kept that in mind as to what could be the trends, and therefore the guidance has been pruned down to make it more practical and doable.

And only to add, we have seen issues of, just a point and I can join if the line comments. Yes, sir. Evacuation has been a major headwind fall or EPC player in terms of laying down of transmission lines has not been matched with the work done in terms of laying off poles and other ecosystems. So, how are we coping up with now the supply of our tower and erection going ahead wherein the transmission lines are still not set up? I'm talking about the renewable space, which has traced the headwinds over the last financial year.

Let's simplify this question. Transmission towers are required for erection, stringing and completion of line. We have jobs from renewable companies and from other central utilities. So we have a fixed timeline to execute and they support us in managing the right of way. So, there could be delays if right-of-ways are not handled on time, but we as a company are committed to support our central utilities and all our private clients in India and to expedite the project based on their requirements. So, we see that this is a natural way of an EPC company in this business and we have been here for 42 years. So, it is not something new and which we get worried about. And obviously, when there is a need to move faster, when there is an opportunity to do more productivity, we do that. So, we don't see as an impediment. It's a way of life in our DNA.

Thank you, sir.

Thank you.

Thank you. We take the next question from the line of Ishita Loda from Small Investment. Please go ahead.

Thank you, sir, for the follow-up opportunity. My question is with respect to the opportunity that we are... Are we looking at any opportunity from the State Electricity Board that they are going to get into TBCB awarding now also?

So we know that state legislative boards are looking at the TBCB route. We have so far not used that as an opportunity. Our percentage of jobs in state utilities is fairly low, 3-4%. We therefore will look at the opportunity, look at the risk matrix. And then decide, so far we have not bid.

Okay, so in the upcoming bid pipeline of 1 lakh crore in domestic market, so the portion of SEBs is only 3-4%?

No, no, no, no, no. My share of revenue today is 3-4%. There could be 20% opportunity, but we are, or we may participate, we will decide based on the risk matrix of that job, that geography, the terrain, and how can we achieve the timelines of execution of that job.

Thank you.

Thank you.

We take the next question from the line of Pratham Sharma from Choice Equity Broking. Please go ahead.

Thank you for the opportunity. My question was when the original 520 corridor phase 1 and phase 2 CAPEX was announced, it was presented that it would take out tower capacity to 196,000 metric tons and conductor to 49,500 kilometers. And now since the new additional 203 crore CAPEX has been announced, so is any portion of this new CAPEX going towards the competition of original guided manufacturing capacity targets, or is it purely for site construction equipment?

So, good you have asked this question, I would love to clarify. The CAPEX for 27, 28 is only for construction equipment. and some old machinery. Whatever CapEx was approved earlier, we are using that for the new Butiburi plant and the brownfield expansion, which will happen to one like 96,000 by Q2 of this year. And for the conductor plant, we will double the capacity by Q2 or Q3 of this financial year.

Oh, thank you very much. And I had one another choose as well. Yes, it has been cleared. It has been cleared. Thank you.

Be good. Thank you. Thank you. We take the next question from the line of Chief Javeli from Vaya Financial Technologies Private Limited. Please go ahead.

Thank you for the opportunity. Can you guide us on what cash flows would look like for the next year? What kind of CFO EBITDA or CFO card convergence can you expect?

So, cash flow will continue to be improved. So, this year cash flow has been from operation 815 crore compared to last year of 415 crore. So, we are working very tight on the working capital and we will see the further improvement in the same.

Okay, thank you, sir. And do you have any guidance on revenue or EBITDA for Q1? Do you have any guidance on revenue or EBITDA for Q1?

See, we normally don't give a breakup of guidance. We give it annualized. So, if you look at the annualized guidance, you can assume the similar thing happening for Q1. But as I mentioned to you, you can't look at it quarter on quarter. So, we would not like to give a guidance, but please look at the annual guidance of 20-22% growth and the EBITDA of 11%.

Okay. Understood, sir. Thank you. All the best.

Thank you.

Thank you. We take the next question from the line of Atharva, an initial investor. Please go ahead.

So, good afternoon, sir. Hello, everyone. Yes, please. So, in this quarter, the rising cost of materials consumed as a percentage of revenue from operations was sharp. So, just wanted to know how are our contracts for raw materials recruitment? And with customers, our project is structured with respect to price escalation, and we'll be able to pass these costs to our customers to protect our margin eventually, if our current geopolitical scenario persists lower.

So, it's a good question in the line of what I've been answering. So around 30 to 35% of our customers are with price variation, which means that we can pass through these price increases. We also have looked at the overall order execution pipeline, the revenue pipeline, and the cost thereof. And if you see, we've been very prudent and practical in our guidance on EBITDA. So all this has been planned, and wherever we see escalation has been covered up.

Thank you, sir. Thank you. The next question comes from the line of Sakit Kapoor with Kapoor and Company. Please go ahead.

Yes, sir. As you mentioned that quarter-on-quarter numbers are not the right representation, but when we look at our March quarter performance on a consolidated level in comparison to the December quarter, if you could just explain to us what are the factors that has led to the lower profitability on a consolidated basis from December 25 to March 26?

See, as I mentioned to you, if you remember the first part of the call, we finished 20 projects by December, and the balanced projects were in mid-execution phase and startup phase. Some of the good margin projects we finished, so our business depends on the project cycle, the margin cycle, and therefore, there has been some closure of projects and some in startup phase. So, we knew that, therefore, the guidance was given accordingly at 25% and 27% growth, but we still did 30%, which means that we bettered our internal planning for Q4. That's an automatic corollary to what we showed as guidance. So, please appreciate that. The second part is that with global disruption and delay in supply chain, the manner in which it has happened in March, has delayed things for... The execution in March itself. And therefore, if revenue does not happen, margin does not happen. So there are two factors which I mentioned. The first factor being predominantly more important for us.

I hope it answers your question. Sir, just a small understanding. Then there are deferment of executions that has happened for this quarter, and that would be getting executed in the ensuring quarter. And that is there to cause to the run also?

No, no. So please understand that there are two parts to it. There is one piece which is deferment. And deferment depends on the delay in supply chain or there could be an issue on the ground in terms of right of way not being there and delay in execution at construction level. We are very clear that when these delays happen, it may go into a next quarter or a next month. We don't know. So, therefore, the revenue is not lost. It is postponed. That is the key question you should know in an EPC industry. So, I hope you got the answer there.

Yes. So, it is all different, and it goes forward. Right, sir. And last point is on the capital work-in-progress closing balance of 65 crore for March 26. If you could explain where is the requirement for money, how will it get capitalized and what are the assets where we are investing the closing balance for 25.12 crore. So there is a significant increase year-on-year basis.

I respond to this question. I am Kandilwal. So, basically, this CWIP is pending for capitalization of 172,000 to 196,000 capacity expansion in towers, and similarly, the part of execution at site is taking place for the conductor expansion, which is from 24,000 km to 49,500 km. So, once those are going to be at site, this CWIP will be capitalized.

When are we expecting, sir, these two can get commissions?

So, we are expecting in Q2 FY27. Both the pending capex will be completed.

Okay, sir. And last point is on the other operating revenue. I'll join, sir. Not an issue. Yeah, yeah. Thank you.

Your next question comes from the line of Arun Kharbanda with ABDS Capital. Please go ahead.

Good afternoon, and may I ought to be? Yes, very much.

Thank you.

As you have said, and as it is in the presentation, you've grown 3x in the last 5 years. Do you think that's the trajectory that we can expect for the next 5 years as well?

Well, the market potential is there. The Growth Percentage It is difficult to predict, but definitely 20 to 25 percent is what we feel is a doable number as our market revenue grows and our order intake grows. And we are building capability, we are building in the teams, and we are building in strengths as we go along to look at the next three-year growth plans, and we have already made our annual operating plan and vision plan for three years.

Okay, fair point. For the three-year plan that you're mentioning, do you see the profitability maintained at the 11 to 12 percentage that you have?

On a steady state, yes, definitely, around 11% is what we target. And of course, depends on how the global market and geopolitical situation and supply chain emerges. But in the near term, one to two years, yes, absolutely possible.

So, thank you and all the best. Thank you.

Thank you. Your next question comes from Pratham Sharma with Choice Equity Broking. Please go ahead.

Thank you for the follow-up question. So, it is a book-leaving question that in other current financial liabilities, there is a line item for employee liabilities. Could you please understand what it comprises of?

I'll come back to this question. Give me a moment. through the investor relation about it. So you may send the question to the investor relation.

Yeah, go ahead, please. Next.

Thank you. The next question comes from the line of Ugar Siddak Singh from Plutent Equity. Please go ahead.

Go ahead, Mr. Sanjeev.

Mr. Singh, you're audible now? Yes, you're audible now.

Yeah, okay. So I want to know, are you facing any issues in terms of labor and, you know, any cost escalation from there or in terms of any disruption in your work from, you know, labor, not resorted labor or anything else?

So this question is a demand supply question. With the infrastructure boom in India and the number of jobs and the government expenditure plan, obviously labor is in X amount available and therefore you have to have the loyal incentive programs for such labor to make sure that they stick with you. So we have set up training and loyalty programs to keep our labor with us. Yes, it's a challenge. I cannot deny that. But we have to make sure that with the size and scale of the number of jobs you have, you have to have adequate labor available. And we are doing that effectively. Yes, there is a challenge on more demand and less supplies, but we are managing it.

You have mentioned that you can pass through whatever price variation that comes along, but there must be a time delay in the contract as well, right?

No, pass-throughs are for price variation contracts. Time delays on account of the client for managing right-of-the-blue, right-of-way, forest clearances, strategy clearances always is on account of the client. And if there is a client delay, he will give you extension EOT, extension of time. So therefore, we are not worried about that. And we are there with our equipment, tools, tackles, and people to execute. But if there are delays with the client handling, then he will give us time extension.

Thank you. Thank you. The next question comes from the line of Brit Nagarshet with Wealthfinvisor. Please go ahead.

Yes. I had one question on the debt, that your net debt, what would be a net debt? Sorry, because I just joined the call. I may have missed an update.

So, it is 274.16. If we exude the IPO fund, then it comes down to 181.37 crore. Right. And your interest payment?

Yeah. Sorry, but your interest payment for the full year is close to 220 crores. So, that kind of seems that the capital on which you are paying this interest would be at least 2000 odd crores, right? Where is that rest of the amount? Is that all working capital tied up?

Basically, we have the WCDL loans and other loans for the whole of the year to the range of 500 to 550 crore. And then our exposure to LC is around 1200 to 1300 crore on an average. So on LC payment and including this WCDL exposure, which you see, it comes to the 200 crore. Plus, we are having exposure to RXL.

So this net did also come down from 502 crores to 274 crores.

And therefore, the other question I had was on the tax payment. So there is a 29% tax payment done this year. Normal tax rate is 25%. So why is there a higher amount here?

It is the timing difference of the expenditure, and because of that, it is higher, and next year it may be lower.

See, my last other question, main question about here is, given the commodity cost inflation that is out there, and clearly that's where the margins may come down for this year at least, coming here, do you have pass-throughs built into your system? How does that work?

Pass-through mean price variation clauses? Yes, we have. Around 35% of our jobs have passed through.

Ah, I see. Okay. So, hence, you are saying that your margins will come down from 12 odd percent to 11 percent for this next year because you have a pass-through of 35 percent. That's why. Otherwise, it would have been lower.

Yes, that also. And we have looked at, anticipated what would be the demand supply situation, the disruption situation. And we have prudent and practically, I think you were not on the call when I mentioned this, that we've been practical and given a fair guidance in terms of the margin profile for this coming year, 27. Right. Got it.

Because this 11% profile that you are giving goes back now to March 22. It's one of your lower profiles, and it's clearly based on commodity inflation. So, and it's prudent for sure for now, and we would hope that over time this improves.

It will improve if the geopolitical global situation and supply chain improves, definitely will and can be done.

Wonderful. Great. Thank you and all the best.

Thank you.

Thank you. Last question comes from the line of Khushbu Gandhi from MB12. Please go ahead.

Yes, sir. Thank you for giving me the opportunity. So there's two questions from my side. One is that you said that in the March, because we know that geopolitical tensions and everything is going on, do we see the situation being the same right now? Do we see that any of the projects being slowed down in the current quarter or two?

So, see, as I mentioned to you, if you are on the call, the supply chain disruption means there are delays in supplies. Also, as we source material from various sub-suppliers, there are delays. So, that will impact the overall project management cycle. Having said that, the revenue will get deferred, but there is no loss of revenue or opportunity.

Okay, and so one more thing, Matt, what is the current bid pipeline? As in the projects which you have bidded, but we are yet to get the results of the same.

So we bid around 6,000 odd crores in the last year, last quarter, and we are done around, planning to do and done around 10,000 crores in this quarter. So the bid pipeline is strong, and we are hoping that we get at least 10 to 12% market share from here.

Okay. Thank you.

Thank you.

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

Yeah. So, I think it is prudent to summarize some of the factors. With a 16,000 crores unexpected order book plus a new order intake plan of 10,000 to 11,000 crores. We feel that we have a strong order book to execute our revenue guidance. As you mentioned, our EBITDA profile and what we are giving guidance is one of the best in the industry. And definitely, we will endeavor to see that the supply chain disruption reduces and we can match and better this. ROC, which nobody mentioned on the call. It's at 25%, which is one of the best in the industry, and we like to maintain this return on capital employed. And our working capital days, which we work very strongly, at bringing from 91 days to 81 days, we want to further bring it down sub 80. So therefore, healthy cash flow, good order bid pipeline. Good backward integration and a good order book definitely sees Transrail doing better and guidance being met in the next few years. So thank you very much for your time and that's all from us.

Thank you. On behalf of Philipp Capital India Private Limited, that concludes this conference call. Thank you everyone for joining us and you may now disconnect.