Welspun Enterprises Limited (WELENT) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Well-Spun Enterprises Limited Q4FY26 Earnings Conference Call hosted by 361 Capital Market Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Stilesh Raja from 361 Capital Market Private Limited. Thank you, and over to you, sir.

Yeah, thanks, Sagar. Good afternoon, everyone, and thank you for joining Welspun Enterprise Limited Q4 and FI26 innings conference call. I would now like to invite Mr. Haddik from Welspun to introduce the management team members who have joined us on this call. Following which, we will begin the Q&A session. Yeah, over to you, Mr. Hardik.

Good afternoon, everyone. This is Hardik Devar here. I am President Finance at Wellsman Enterprise and CFO of Wellsman, Michigan, Engineers Limited. First of all, thank you, everyone, for taking the time out today and joining us on this quarterly and annual call. It is, it's pleasing to say that we have had a good quarter and overall a good year to begin with. And to take you through the journey of FY26, I have the entire senior management of Wellspun Enterprise headed by Mr. Sandeep Garg, who's the managing director, Mr. Sauron Patel, who heads the integrated water vertical and is the managing director at Wellspun Michigan, Mr. Rabhishek Chaudhary, CEO of the transport business and looks at digitalization and other things. And my colleague, Mr Lalit Jain, the Chief Financial Officer at Wellsman Enterprise. With this, I hand over the platform to Mr. Sandeep Garth to make his opening remarks and take you through the journey of InSpan Enterprise and FY26. Thank you, Hardik.

Good afternoon, everyone, and thank you for joining us today. It is a pleasure to connect with you again and share our progress for Q4 and FY26. Before I start my address, I would want to say that during the address, we may be making some forward-looking statements. Please note our safe hour clause in respect of the same. I am pleased to share that your company has received a letter of award for the Pune Shroo Elevated Road Project, with a total cost of approximately 7,300 crore. While our Transportation CEO, Mr. Avishad Chaudhary, will discuss the project in greater detail during his address, I would like to highlight that this win represents an important milestone for us. It not only strengthens our presence in the road infrastructure segment, but also reaffirms our ability to secure and execute large, technically complex projects, along with building a diversified and high-quality infrastructure portfolio. Along with the addition of Panjrapur Water Treatment Project, we have added over 10,000 crore to our order book during the year, which is in line with the guidance given at the beginning of FY26. As a result, our consolidated order book now stands at approximately Steady revenue visibility ahead. For our financial performance, we delivered a healthy performance during the quarter. Consolidated revenue grew at 14% year-on-year to INR 1199 crore. Our consolidated EBITDA grew at 31% year-on-year to Rs. 272 crore. For FY26, consolidated revenue stood at 3,615 crores, in line with our revenue guidance of 3,600 crores. EBITDA grew 16% year-on-year, while EBITDA margins for the year stood at 22%, exceeding our guided range of 18 to 20%. Balance sheet continues to remain strong, with consolidated cash of approximately 1,700 crore. This gives us the ability to pursue growth opportunities while staying prudent on capital allocation. Mr. Lalit Jain, our CFO, will shortly present a detailed overview of our financial performance. For FY26, WMEL reported a revenue of 874 crores, registering a robust 31% growth over the previous year with a stable 21% EBITDA margin. The progress across both the quarter and the full year was driven by strong execution momentum and sustained progress across key verticals. Mr. Saran Patel, Managing Director of WMEL and Head of Integrated Water Vertical, will share further insights regarding the subsidiaries' performance and broader developments across water infrastructure business during his address. I'm pleased to share that along with our business growth, we have continued to strengthen our organizational culture and governance framework. During the FY26, we took meaningful steps towards building a stronger performance-driven organization through enhanced accountability and focused performance management practices. These efforts led to a 4% year-on-year reduction in attrition. We continue to invest in talent development, succession planning, and leadership readiness, further improving organizational agility and developing bench strength. Diversity ratio also improved from 6.3% in FY25 to 7.9% in FY26. All these efforts have been recognized externally, with the company being certified as a great place to work for the second time, reflecting the strength of our culture and our core light values, learning, innovation, trust, transparency, and endurance. I would like to briefly highlight the recognitions received by the company, Wellsman Enterprises Limited and Wellsman Michigan Engineers Limited. Continue to be acknowledged for their consistent performance, strong execution capabilities, and adherence to quality standards. The notable awards include of the Year Award at the Build India Awards for the Anta Samaria Road Project, A Bridge Over Ganga. Thank you. Thank you, Michigan. Innovations further motivate us to enhance our operational efficiencies, take more challenges, Backed by the consolidated order book of approximately 20,000 crores, a strong bid pipeline, and our disciplined approach towards risk management, capital allocation, and returns, we remain well positioned to deliver our medium-term revenue targets. Disturbances in geopolitical situations and disruptions in global supply chain could create certain near-term cost and execution challenges. We remain confident in the resilience of our business model and execution capabilities. With this, I would like to conclude my opening remarks and invite Sauron Patel. Head Integrated Water Vertical and MD of Westburn, Michigan, to take you through the water business and Westburn, Michigan, engineers, limited updates. Over to you, Sarai.

And good afternoon, everyone. It's a pleasure to interact once again with you. As always, I will take you through the key developments in our water business, project updates, financial performance of our subsidiary, and the outlook for the business. It gives me pleasure to state that in less than a decade, our water business has evolved into a meaningful and value-accreditive vertical for-wellsman enterprise, backed by scale, execution capability, and improving visibility of long-term revenues. We are currently executing multiple EPC projects of varying diversity and complexity. This project is progressing well, with physical completion of around 65%. It was recently reviewed by the newly appointed BMC Commissioner in April, which reflects the importance and scale of the project. We are targeting commissioning by July 2027. Followed by a 15-year O&M phase, providing long-term... On the UP JAL G1 mission projects, we have achieved progress of approximately 80% and expect the completion in FY27. At the Banduk 2000 Excavation works are currently in progress. The civil contractor has been fully mobilized and has commenced PCC and rock anchoring works. The overall project... And the project remains on schedule for completion by June 2020. The recently awarded Panjrapul 910 MLD Water Treatment Plant is in the early stages of execution. Mobilization is underway, advances have been received, key pre-clearances are in progress, and initial billing has already commenced this quarter. We are awaiting the final high court clearance, post which the shaft work is left. Tunnel Boring Machine projects in Mumbai. In the rehabilitation segments, the use of innovative geopolymer lining technology for 17 kilometers of Mumbai stormwater drains is progressing well and remains on track for completion in F-by-27. In Varodara, the 2.5-meter, 2.5-kilometer glass reinforced polymer-lined mega-trunk drain project is being completed nearly a year ahead of schedule. Aimed at mitigating severe water flooding in the areas affected. Within just 24 months of launching it, we have successfully delivered several notable projects, focused on the cleaning of lakes, rivers, and kuns, and are currently executing two sewage treatment plants, one in Mathura and the other in Orissa. Let me now turn to the financial performance of the subsidiary, Wellspun Michigan Engineers Limited. WMEL delivered a well-rounded performance both for the quarter and for the full year. F526. Revenue grew 32% year-on-year to Rs. 351 crore compared to Rs. 265 crore in the corresponding quarter last year. EBITDA increased 43% year-on-year to Rs. 72 crore from Rs. 50.5 crore. Consequently, EBITDA margins expanded by about 100 basis points to 20% in Q4 FY26 compared to 19% in Q4 FY25. In terms of revenue composition, We have seen strong traction and now contribute approximately 28 percent of FY26 revenues, improving from 17 percent in FY25. Going forward, WMEL will continue to focus on three key segments, tunnels, rehabilitation, and pumping projects, each offering a strong pipeline and scalable opportunity. It is targeting a CAGR growth of over 25% over the next three years. Including tunnels and O&M. 14,000 crore, providing a strong multi-year revenue visibility. Supported by a robust bid pipeline across water and wastewater treatment, large-scale water supply Expanding opportunities and drive sustainable long-term value creation.

Thank you, Sal, and good afternoon, everyone. We appreciate your continued participation and interest in our company. I will briefly take you through the progress across our transportation portfolio, key project milestones, and subsequently provide an update on our digital transformation initiatives. Let me begin with our transportation portfolio. Execution across our projects remains stable, reflecting our continued focus on discipline delivery and operational efficiency. For the Anta Simaria project in Bihar, we have received the first annuity payment. In line with our discipline, capital recycling, and asset-like strategy, we are in advanced stages of monetizing this asset. This is expected to further strengthen our balance sheet and enhance capital efficiency. With respect to Varanati Aurangabad Road project, progress remains steady. Execution on the SNRP project in the state of Tamil Nadu and Puducheri is also progressing well and is expected to be completed in Q2 FY27. As communicated earlier, we have received... Welcome to the call. Ultimately, for... 36 kilometers of elevated corridor. The project reflects both the scale and technical complexity that align well with our core execution capabilities, which was earlier demonstrated through projects like Anta Samaria. The Pune-Shirul project will be executed under Design, Build, Finance, Operate, and Transfer, which is DBF-14 model, with a total project cost of approximately 7,300 crore. The concession period is 29 years, which comprises of four years of construction, followed by 25 years of tolling rights. Strategically, this project strengthens our transportation portfolio and deepens our presence in one of Maharashtra's fastest-growing infrastructure corridor. The project further strengthens long-term revenue visibility while reinforcing our position in complex transportation infrastructure. The project is expected to enhance connectivity across key urban and industrial hubs, including Wagholi, Lonikan, Ranjankao, and Shikrapur, by easing congestion, reducing travel time between Pune and Chirur, and thus improving freight movement efficiency. Over the long term, the corridor is expected to support industrial growth, improve logistic efficiency, reduce transportation costs, and create enormous employment opportunity, aligning well within our strategy of developing infrastructure assets that deliver sustainable economic and social value. With this addition, our transprofession of the book stands at approximately 6,000 crore, including the EPC value of Pune Shiro. Providing healthy execution visibility over the medium term. Going forward, within the transportation vertical, we will continue to focus selectively on technically complex road projects, elevated corridors, tunnels, and projects under EPC and BOT models, where our execution and engineering capability provide a clear competitive advantage. Overall, We remain focused on disciplined execution, timely monetization, prudent capital allocation, and strengthening the quality and visibility of our transportation infrastructure portfolio. Let me now briefly touch upon our digital transformation initiative. Digital transformation is increasingly becoming an integral part of our operations across all business verticals, namely transportation, water, tunneling. These initiatives span the entire project life cycle as well as the key support fund. We have launched an RFI application at the Bandhoop site to enable real-time reporting and monitoring of the project progress. As communicated earlier, we have also successfully migrated to SAP 4HANA, creating a strong and more integrated digital backbone for the organization. In addition, we recently rolled out an e-governance platform to promote paperless operations, expedite approvals, and create a centralized digital repository of records and documentation. We are also developing AI-driven tools for quality management. Thank you. Proactivity and efficiency over the coming... Thank you.

Thank you, Abhishek. Good afternoon, everyone, and thank you for joining us today. I will briefly walk you through our financial performance for Q4 and FI26 along with some key business highlights. Starting with Q4F826, we reported console revenue of rupees 1199 crores, reflecting a healthy year-on-year growth of 14% driven by strong execution. Console EBITDA for the quarter grew by 31% year-on-year to Rs. 272 crore compared to Rs. 207 crore in Q4 FI 25. The improvement was supported by better operating efficiencies and continued cost optimization initiatives. Consequently, EBITDA margin expanded to 22% during the quarter. Compared to 19.3% in the corresponding period last year. Profit after tax for Q4FI26 stood at Rs.166 core, registering a strong growth of 54% year-on-year. Now moving to full-year performance. That we achieved our revenue guidance for FY26. Against our guidance of Rs. 3600 crore, we delivered revenue of Rs. 3615 crore added by strong execution during the fourth quarter. Declined marginally by 2% year-on-year, productivity improved meaningfully during the year. Console EBITDA increased by 16% year-on-year to Rs.845 crore, while EBITDA margin expanded by 350 basis point to 22%. This improvement reflects our continued focus on execution, efficiency, better project mix, and discipline cost management. Profit after tax for financial year 26 increased by 11% on year-on-year basis to Rs.393 crores. Now coming to segmental performance, the tunneling and rehabilitation segment revenue delivered strong growth of 37% year-on-year, supported by healthy execution momentum and improved project mix. The water segment revenue witnessed A marginal is declined by 3% primarily due to slower execution in the UPJJM project. Revenue from the transportation segment declined by 17% year-on-year mainly on account of project completion and delayed in the awarding of Pune Sirub Road project. Now turning to the balance sheet, we continue to maintain a strong financial position supported by robust order book of Rs. 20,000 crore and a healthy balance sheet. As of 31st March 2026, our net worth stood at Rs 3,261 crore. We also maintain a strong cash balance of Rs 1,728 crore, with net debt remaining low at Rs 43 crore. During the year, Cricill revised our outlook from stable to positive by reaffirming our long-term rating of Cricill AA- and short-term rating of Cricill A1+. and AA rating for the incremental working capital limit of Rs. 400 crore, further validating the strength of our financial profile. healthy liquidity position and continued focus on discipline execution. We remain confident of delivering sustainable growth and long-term education. With that, I would now like to hand over the call back to the host.

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then 1 on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and then 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. Again, to register for a question, you may press star and then 1. Your first question comes from the line of Sanjay Shah from KSA Securities. Please go ahead.

Good afternoon, gentlemen, and thanks for the opportunity, and sincerely appreciate the opening remarks from all the divisions had, and very helpful, sir, very helpful. Sir, my question was regarding Pune Sirur. Can you highlight upon the expected project IRR, equity commitment, monetization?

Thank you for the interest in the company, and I really appreciate that. As Abhishek addressed, the timeline for the project is four years of construction and 25 years of tolling thereafter. Now, coming to the equity IRR, we, as we have always planned for equity IRR upwards of Pull the returns on the call. I would request you to get in touch with our... Or the CFO for them to take you through every detail.

Any future booth projects?

So, um... I'm not targeting to... We will be targeting to similarly monetize. We have received the first annuity, so it may go into the FY28. For principle, we stay committed to asset monetization at an appropriate time so that we can create value for the stakeholders at the right value, as well as... Turn the equity quickly for future growth. We are very positive about these smart ops. We are taking strides to establish the technology in all spheres that it can deliver value. We have already established it in the... Space of Kund and water body clearance, retrofit of the STPs is currently in progress, as well as establishing it on a flowing drain. So, this is where we are currently focusing. The next focus will move into the industrial space, as well as standalone serious treatment plants. Of a particular size and scale. We believe that it's a very good technology to support a quick deployment of treating the wastewater, and it is practically a small footprint and quick deployment. So, we believe that there are multiple usages of the technology that should unfold going forward in the next couple of years.

Thank you. The next question comes from the line of Sarvesh Gupta from Maximal Capital. Please go ahead.

Yeah, hi, good afternoon, and thank you for the opportunity. So, sir, first question is on the, you know, the revenue outlook for FI27. So, if you look in the last four years of our company, we had like two years where the revenues broadly remained similar, and then we had a step-up jump. So, while you have a medium-term guidance of 15 to 20 percent, but Given that this year, we did not grow our revenue as such, so can we expect 25 to 30% growth in FY27?

So, our guidance will stay to 15-20% as we have always maintained and we will continue to maintain. We shall target higher growths for sure, but given the headwinds that we are facing in terms of supply chain disruptions, as well as in terms of the labor situation, given the various challenges, I would strive.

Secondly, sir, on the fundraising proposal, which was mentioned in the results release, so now we recently raised 500 crores for, I think, qualifying for the adjusted net worth criteria, etc. So now this 1,000 crore fundraise has been announced. So, you know, given that we already have a very cash-rich balance sheet and then there is a lot of monetization we are targeting. So, somehow it looks like, you know, these constant fundraisers are creating a very lopsided balance sheet with a lot of cash and very little debt. So, how do we look about on this particular point? Thank you for raising this question.

Let me clarify, first of all. This is just an enabling approval. As of now, I can clarify there is no proposal to raise this fund as we see the normal business unfold. This is more to prepare the business for any opportunity that may come in and which may need liquidity over and above what is currently forecasted. You're absolutely right, and I would want to correct that we have preferential warrants of 1,000 crores out of which 250 crores has been received. We are in a position to call up for 750 crores over a period of 18 months from the start of the warrant period. So, we have that liquidity, and we do have assets to liquidate. In terms of the Anta Simaria, we have 51% of Mukarba Chalk Panipat, and we hopefully will complete the project of... Satanatha Purum Naga Patinam in this financial year, which should be available for the next year. So right now, in a normal business scenario, we do not anticipate any further fundraise. This is purely an enabling request, which is from a point of view of preparing the organization, should the opportunities be larger than what we have anticipated in our future forecast.

Understood, sir. And on WNEL, sir, so, you know, this has, so we spent two, three years here, and now the company is performing well, and we have a 60% odd stake. So, is there any plan to also utilize some of the cash we have to sort of take up the minority interest there?

So, we would be very happy to consolidate further on the balance sheet, provided the existing shareholders would want to sell. However, I don't think that they are right now very eager to sell. They are very confident that we are going to create larger values on the platform. And they're holding on to it. But should there be an opportunity? We will be definitely looking at it if it is available at the right price.

And on Pune project, so when do we expect to commence the construction and what kind of revenue booking can be done here or these expenditures that can be done here

in this financial year? Yeah, hi. Thank you for this question. I'm Abhishek. Regarding this project, as you are aware, this is a DBFOT project, which means that we are supposed to do the financial closure, for which we have a time limit of around six months. So during this six-month period, we will be undertaking the project development activities. Which is with regard to the utility shifting, with regard to setting up of casting yards, et cetera, et cetera. We plan to have our financial closure probably in the month of October or November, basis which an appointed date will be declared. So we'll be left with close to around four months of real execution, which can contribute to the top line of FY27. So we expect somewhere in the range of, say, 500 to 600 CR, which will be contributed during this year by a financial route.

Okay, thank you, sir, and all the best.

Thank you. The next question comes from the line of Radha from Motila Loswal. Please go ahead.

Hi, sir. Thank you for your opportunity, and congratulations on your very good results. Sir, in the last call, you had highlighted that FI26 revenue base is low. Hence, the company is expecting to grow FI27 revenue by 20%. However, if we delve into the individual project schedule, it implies that you need one more large order in within the next few months to be able to start execution in the second half. Are we on track for the same, sir?

Thank you, Radha, for a very deep analysis of our business. Yes, you are right that we are going to be looking for order booking. As you know, these are large contracts, so saying that we will be able to target it in the next two months or three months is a matter which I would not want to dwell upon. But there is a clear focus on adding order book, and we expect the order book to be added somewhere around 8,000 to 10,000 crores in FY27, and we would want to add as soon as is possible. We are working towards it. Hopefully, we will be able to do it within this H1. Which is sufficient for us to meet our guided target of 15 to 20% growth. And to give you an idea that the uncovered portion of our revenue from the guidance is close to 8 to 10% only, which is uncovered, and we are reasonably confident that we should be able to cover it in H1.

Understood. Secondly, you know, in the Pune Shiro project was received in last quarter, and we were expecting the execution to start happening from the, you can say, last four months of this year. So that means between receiving the project and the execution, there is a large gap. So, about the three quarters gap. So, even if you receive the project in first half, so is it still fair to assume that execution can start in the second half of the year or will it be taken forward to SR-28?

So, Radha, the point that I think partially was addressed by Abhishek is that... During the developmental phase between now and the start of physical road building, we will be doing utility shifting, we will be doing certain establishments, we are entitled to do a lot of clearing, etc., etc. So it is not that we will not be recognizing revenue. Totally in this period of six months. But the ramp-up will take place post the appointed date is the point that Abhishek wanted to mention. Similar situation will unfold for the projects that we get caught after in this year. The assumption that you are making in the question, to the best of my mind, is that if we were to get only a BOT project, BOD projects generally start chugging in the revenue about six months to nine months after the award. However, if those are EPC or other model forms of agreement, the revenue recognition starts earlier. So the projects that we are targeting are also in the EPC space, so we are reasonably confident that we will be able to meet the guidance of 15 to 20 percent growth of the revenue. I hope I have answered your question.

Yes, yes, that's very clear. The second question, sir, regarding in your opening remarks, you mentioned that near term there is cost and execution challenges due to geopolitical issues. So, since the company is having entirely domestic business and also complete cost, cost, cost, cost with the customers, I request you to please elaborate a little bit more on this aspect.

So, Radha, it is true that most of our contracts which have the WPI-CPI-linked escalation provisions. However, and it is also true that the government is trying to respond to the challenges which are happening because of the geopolitical situation in the world. By coming up with the, as you may be aware, the Ministry of Road Transport has come up with the clear office guidelines that bitumen will be, the cost of bitumen will be on actuals rather than based on WPI, CPI. They have also come up with a clear statement that they will be paying for even the hybrid annuity model on a monthly basis. On a milestone. Come up with force-major provisions, which are helpful. Hopefully, those will be adopted by. We are very confident on our part as a conservative company to caution that there could be a small, medium term or near term. Impacts, which we are more than confident that we will be able to overcome, and the balance sheet is resilient, and that is why we are, despite our EBITDA margins being in the ranges of 22.5% for FY26, we are giving a guidance of only 18% plus. So we are acutely aware of all this, and we have factored all this into our guidance. So that there is no shock that can come in, near-term issues notwithstanding.

Thank you. So, last thing, Mr. Dilian.

Sorry to interrupt. Radha, ma'am, may we request you to return to the queue for follow-up questions, please, as there are several participants waiting for that. Thank you so much. Your next question comes from the line of Kweb of Shah from JM Financial. Please go ahead.

Sir, what would be the EPC value of Pune Terri project?

Thank you, Abub. It is approximately 5,400 crores as an EPC cost of the project.

Okay. And sir, you mentioned that this year we will do closer to 5 to 6,000 crores of revenue from the project. So next year, can we see closer to around 1,800 kind of revenue, 1,800 to 2,000 crores of revenue from the project?

I, I, I mean, we are giving a guidance of FY27. However, if the discussion is about Pune Shroo's long-term, how it will unfold, I would request Weber to have an interaction with the IR stroke CFO, who will take you through from all the details on the Pune Shroo. I hope that works for you.

Yeah, sure. And lastly, land status for the project. So, we are confident of starting the work. So, this will be ready by November or December.

So, the good part of this project is that it is, as Abhishek mentioned, it is primarily 35 kilometers of elevated structure, which is on the median or which is supposed to be built on the median of existing road project. Which caters to almost like 70% of the cost of the project or more than that. So that front is available right now, right there. So the only land acquisition which is really required is mostly for tolling and the access to the elevated sections. And very little land acquisition otherwise is required. So there is a very... Yes. Very little land acquisition requirement as an overall on the project. So, we are reasonably confident that we will be able to not only start the project in time, but we will be able to complete the project on time.

Okay. So, what will be our investment in the oil and gas business so far?

It's about 500 crores at this point in time.

Can you do our shirt? Thank you, sir. Those were my questions.

Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, we request you to limit to two questions each, and we join the queue for any follow-up questions. Your next question comes from the line of Bhavik Shah from Invexa Capital. Please go ahead.

Yeah, Elisa, I'm audible.

Yeah, Bhavik, a bit louder will help.

Yeah, hi, sir. Yeah. So, the first question is, how much, like, what is the guidance for, say, Welsman, Michigan for this year? Like, how much do we expect the growth to be and the margins there? And what is the cross order book, say, from Welsman Enterprises to Welsman, Michigan?

So, hi, this is Sauran. We expect our revenue... Revenue basis to be growing at a rate of 20%. We've said CAGR of 25 over the next couple of years, but 20% is what we are predicting for the FY27 season.

So, and our cross order book is how much from Wellesman Enterprises?

So, if the question is, if I get you correctly, Bhavik, the question is, what is the portion of the contracts interstate between WEL and WNEL? So, there is about 1,100 crores, 1,000 crores, between 1,000 and 1,100 crores is the interstate party transaction on revenue.

Is that the question, Bhavan? Yeah, that was it, right, right. And if I heard the guidance correctly, the EBITDA margin guidance has been lowered to 18%?

We guided 18% plus, and that's the guidance that we would give. If we are acutely aware of the supply chain disruptions, we do not want to overguide. The plus can be anything. I would only want to say that.

Okay. Answer in the SRP. Mr. Shah, sorry to interrupt.

We request you to return to the Q for follow-up questions.

Just this last one, yeah. How much is the investment pending in the SRP project in this year, FI27?

We have fully invested in the SRP project.

Okay, so no investment?

No, not for the equity, quite.

Okay, thank you so much, and all the best. Thank you.

Your next question comes from the line of Anand Darshan. Please go ahead.

Hello, sir. Am I audible?

Yes, you are, Anand.

Yeah. Thanks for the opportunity, sir, and congrats on the great set of results. So, my first question is regarding the transport division. By the end of financial year 25, we had an outstanding order backlog of near 2,950 crores. Some three projects of Antarkamaria, SNRP, and Varanasi. After our execution in financial year 26, the balance chance at around 500 crores. Can you give me the breakup of this 500 crores between SNRP and Varanasi? And also, we just added the Kuneeshwarir project, and usually it takes around six months' time to start executing this. So, do you expect that will be a drop in revenue from the transcoordation in current year 27?

So, you're right, there could be a marginal drop in the overall segmental revenue for this year. However, this presupposes that there are no additional projects that are kicking in into the revenue. So, as was covered in the address by CFO, on a segmental basis, there is a transportation vertical which has seen a degrowth this year as well. However, we don't see any substantive change now in the segmental revenue recognition.

Can you give me the break-up of the 500 crores and executed order backwards between SNRP and Varanasi?

So, Varanasi is about 50-60 crores and about 500 to 550 crores is between the Varanasi. SNRP, sorry.

Sir, my second question is regarding the water project. Our expected executable EPC order is around 850 crores from three projects of Devas, Bandup, and Narabi. So, what will drive the top line growth in FY27 compared to FY26 revenue of 1240 crores? And how much orders execution are we expecting from Panjrapur water projects?

I think I am not able to correlate your numbers in the question. Our order book as of integrated water stands at about 14,000 crores, which includes the 5,000 crores of O&M. So, effectively, about 9,000 crores of O&M. Outstanding orders. So, we are reasonably confident of meeting our guidance on the transport, on the water vertical to be able to achieve the desired revenue.

Sir, how much are we expecting from Kandhra for water budget?

I would request that if we need to go project by project, you please get in touch with the IR or CFO. They will be very happy to take you through.

Thank you, sir.

Thank you, sir.

Thank you.

Thank you. The next question comes from the line of Vignesh here from Sequin Investments. Please go ahead.

Thank you for the opportunity. I'm audible, right? Hello.

Yes, Vignesh, you are.

Yeah, thank you. So, my question is more on the contract which we already have in place. I wanted to understand how does the raw material escalation impact us, and I want to understand more on the lines if we, how much percentage of the escalation can be passed on, if you could share your views on that.

So, to give you an example, this is illustrative and not definitive that I am going to respond to. Most of our contracts are covered by an increase of, which is based on WPI-CPI formula, and which by and large covers all inflations which are under normal circumstances. Now, these are not normal circumstances. The government is coming up with certain specific reliefs, as I said earlier, like in case of the mark, they have come up for a relief on vitamin. So we expect that most of the cost increase on these projects where we have these escalation provisions, we should be able to transfer the cost. On the BOT projects, the BOT projects do not have an escalation provision. However, we maintain enough contingencies for our on the. Thank you.

So, if I have to look at this guidance of 18% EBITDA for the full year, would it be fair to say that, you know, subject to this problem where Stacia was resolving, we would be ending this year with a very strong number, and that might take the blended number to 18%. Would it be the correct way to read it?

My guidance is 18% plus. If everything were to happen, this plus can be as close to the current numbers as it is possible. And if the chips are down, it could be whatever number. So we are, the guidance is 18% plus. However, the projects in a normal circumstances are capable of delivering better for better.

Right. Got it, sir. That's all from my side and all the best.

Thank you. Your next question comes from the line of Prateek Bhandari from Art Ventures. Please go ahead.

Yeah. Hi, sir. Thanks for the opportunity. Can you specify the margin trajectory that you are targeting for Wellsman, Michigan?

So, uh... I mean, in interest of time, I will take this question. It has been consistently a bit of 21 to 22 percent, and we expect it to remain in that range or better.

And you also mentioned that you are currently having a strong bid pipeline. Can you throw some more light as to what is the size of the current bid pipeline and which segments, you know, this pipeline is from? This will give a better sense.

So, are you talking about at WEL level, or at

the company level, at WEL, standalone?

At WEL, we see a lot of opportunities coming in the water transmission space. We are also looking at certain opportunities of large-scale treatment in water. We see a lot of opportunities in transport on BOT, as well as complex projects in the space of structures and tunneling, which will be the target for the company. Now, if you were to ask me the top of the canvas, all put together, the top of the canvas will be most likely in the range of about 2 lakh crores for the F527. However, as you know, we are aim and shoot.

All right. And just one last question. You have given order and flow guidance to the tune of 8 to 10,000 crores for FI27. Is that correct? That is correct. Pradeep. Okay.

Thank you. Thank you. Your next question comes from Apeksha Maheshwari from AV Fincorp. Please go ahead.

Hi. All my questions have been answered. Thank you.

Thank you. The next question comes from Pavi Bhogar from Asha Lead Investments. Please go ahead.

Oh, yeah. Hello. Good afternoon. So, I just had one broad question. The highway pickup like the NAGI disbursement in F526 were quite soft, right? So, how do you see them picking up in F527?

So, NHI order book has, in the F526, been not as high as it was in the earlier years. So, there is a lot of pent-up, you know, situations wherein the orders need to go out from NHI stroke mark. We believe that those will come forth in the year ahead. We also are looking at a lot of desire and need in these states to enhance the infrastructure. And since we are willing to play the BOT project scenario, With our strong balance sheet and our execution capabilities, so we see a lot of opportunities unfolding going forward in the transportation segment as well. And as I said, we are going to focus on complex projects which allow us to create a differentiated offering at a company level. I hope I've answered your question.

Yeah, thanks.

As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Thank you. I thank you all for joining us today. To sum up, I would like to reiterate that we remain committed to creating long-term value for our stakeholders with a continued focus on improving return on equity and return on capital employed. We hope we have addressed all your queries. Should you have any further questions or feedback, please feel free to reach out to our CFO or the Investor Relations team. Thank you and good day.

Thank you. On behalf of 361 Capital Markets Private Limited, that concludes this conference. Thank you everyone for joining us and you may now disconnect your lines.