Q1 25/26

Jul 31, 2025

Summary

Q1 FY26 saw 7% revenue and EBITDA growth, with PAT up 37% year-over-year and a record PAT margin. Order inflow was robust, credit rating improved, and guidance for FY26 remains at 20–25% revenue growth and 10% EBITDA margin. Political and labor risks are being managed.

Ladies and gentlemen, good day and welcome to ITD Cementation Limited Q1 FY 2026 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participants' lines will be in 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 * then 0 on your touch-tone phone. Please note this conference is being recorded. I now hand over the conference over to Mr. Mohit Kumar from ICICI Securities Limited. Thank you, and over to you, sir. Yes. Thank you, Pari. Good afternoon. On behalf of ICICI Securities, I welcome you all to the Q1 FY 2026 earnings call of ITD Cementation India Limited. Today, we have with us from the management, Mr. Jayanta Basu, Managing Director, Mr. Nitesh Sharma, the CFO, Mr. Rahul Agarwal, Lead Investor Relations. We will begin with the opening remarks from the management, followed by Q&A. Thank you, and over to you, sir. Okay. Thank you, and a very good afternoon, everyone. Thank you for joining us on the Q1 FY 2026 results conference call. Before I begin, the discussion that we will have in this call may contain certain forward-looking statements about the company business prospects, which are subject to several risks and uncertainties, and actual results may differ materially from those in such statements. I will start with the financial performance for the quarter and subsequently followed by our MD, Mr. Jayanta Basu, who will be taking you through the operational performance of the company. We are pleased to share that we have reported a very robust operational performance during the Q1 FY 2025, FY 2026. The total operating income for Q1 FY 2026 stood at INR 2,542 crore, which is a 7% growth on year-on-year basis on the corresponding quarter. Similarly, the EBITDA stood at INR 254 crore in Q1 FY 2026 against INR 237 crore of the previous corresponding year quarter. Again, a growth of 7% reported. The EBITDA margin remained at a double-digit level of 10% in Q1. PAT of INR 137 crore in Q1 FY 2026 against INR 100 crore, which again has a significant growth of 37% on year-on-year basis. The company remained deleveraged with a healthy net debt equity of 0.34x. I am pleased to announce that we also secured orders worth over INR 2,900 crore in Q1 FY 2026. In addition, we have also secured order worth INR 1,300 crore plus in July 2025. That makes our total order book as on date to INR 4,300 crore in FY 2026 to date. We are also L1 in orders worth over INR 1,400 crores as on date as we speak. Now I would hand over the call to Mr. Jayanta Basu, who will take us through the operational performance. Thank you. Yeah, thank you, Nitesh. Good afternoon and welcome for this Q1 conference call FY 2025. The numbers are all known, so I don't want to repeat, but must say that again, a good performance by our company during this last quarter, Q1. INR 2,500 crores of revenue and PAT around 5.4%, probably the highest in our company history. And we believe that we'll be able to maintain the same momentum going forward. There are some significant, or I must say there are some high points during this quarter in terms of execution and other aspects. Like for Chennai Metro, one of the projects, we have completed a particular section of tunnel. TBM, we call it breakthrough, that is TBM has completed its job. That is one good thing has happened. And we are working in the hills. They're very difficult conditions, as we know, those who are expert in this line. We are able to start the work on time and the piling and foundation work is going on in full swing. We have completed one beautiful structure for High Court of Calcutta Circuit Bench. You will see that picture in our annual report coming soon. Bangladesh, despite of lot of issues, as you know, and having a different kind of job, we are doing extremely well. Those who are in this line, they know that the size of the pile, we deal with around 50, 60 ton weight. But there the pile weight is 300 ton. You can imagine the difference. The first time we are doing such a big pile, but it is being done very nicely. We are doing a lot of precast work. That means a lot of buildings nowadays by the customer to shift to precast construction. And in Mundra, we have started doing that new technique, but we are able to do it properly, and work has got appreciation from the customer. I also very happy to say that our credit rating has been increased from A to A+ during this last quarter, which is also a good achievement. Now going forward, as I said last time, we have got a good amount of job in pipeline. I mean, if I sum up, it will be around INR 87,000 to INR 90,000 crores of work which we are dealing with now. Some are in the tender stage, some pre-qualification, some we have submitted tender. Opportunities are quite okay. The good thing is that the number of jobs is not much, though it is INR 90,000 crores. It will be hardly 15, 16 in terms of the number of projects. That means that jobs are all big-ticket jobs. We were again successful to secure a job in overseas condition in Abu Dhabi, I think, this last week or so, which we have been pursuing hard, and we are very happy to say that we got the LOI. In addition to that, as Mr. Nitesh Sharma has mentioned, if you put LOI all together, already we have secured around INR 5,000 crore of jobs, either we have secured or L1. That is something which is also very significant because, in the first quarter itself, securing INR 5,000 crore job, which has never happened before. If I go to the further detail of the performance, which I normally do in every con call, the few big jobs, like Chennai Metro, is around 55% we have completed. Bangalore Metro is verge of completion. Sivok Rangpo, always a difficult job, but we are able to overcome the difficult situation. 70% job has been done already. Mumbai Metro is almost completed. Similarly, Ganga Expressway, as you know, is a big job, but we are able to complete the main carriageway on time. Finishing work is pending, so around 85% has been completed. Few marine jobs. I mean, there are a lot of marine jobs we are doing nowadays. Like Kattupalli is a big job. I think I've done around 38%. Bangladesh, as I mentioned, 42% has been done. Petronet LNG, at 35%. Colombo, another overseas job, around 80% we have done. There are some new jobs also we have secured, like Ruwais at Abu Dhabi, just I mentioned, we are just starting. Bangalore, we have got a metro job. I mean, not metro, it's a metro rail, but from a different agency. They're just starting the job. Then we have got one port in Odisha from JSW, place called Jatadhari. That work is going to start. Vadhavan Port, all of you know that. They've got the first package. They're starting the job. Trivandrum Airport, we have got a package. Jaipur Airport, we've got a package. We got recently one building from Keventer, a multi-story building in Kolkata. In long and short, that is the story about the performance and the way forward. We're very happy to answer the questions. Please go ahead. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two. 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 Aditi Loharupa from CD Equisearch Pvt Ltd. Please go ahead. Sir, how much has the industry tailwind supported the surge in your execution in the last few years? Could you repeat it, ma'am? How much has the industry tailwind supported the surge in your execution in the last few years? I mean, I do not know that I have got your question rightly. Industry. Industry tailwind means, yeah, there are a lot of opportunities, and we have secured a lot of jobs. Market is good, and you know that we are looking for 8% GDP growth in our country, emphasized by the government for the infrastructures. All these things are, if you can say, the tailwind, is helping us to get more revenue and more opportunities. Is it the right answer to your questions, if I have understood rightly? Yes, sir. Partially. I just want to know that how much has the contribution of macroeconomic factors helped in growing. You yourself secure projects, and you are contributing with the past projects. How has the macroeconomic factors contributed in your growth? Yeah, of course, they are contributing because, see, business means you have to have the opportunity. There are so much of opportunity in India, not only by the Government of India. There are from outsiders, like investors from the overseas. So economic conditions are also better now. One thing which I can very clearly tell you that the payments from the customers, in particular government customers, are very good. Gone are the days when we used to wait for a long time. The contractual terms and conditions are also getting more level field conditions. There are many factors which is really, you can say, the tailwind and macro factors are helping us. Okay. What sort of orders do you generally subcontract? It depends upon the nature of work we do. If you ask me, in general, around 20%-30% is the range. Present range we subcontract. Okay. 20%-30% is the range, but what type of orders do you subcontract? Mostly, if it is not in our domain, like electro, mechanical work, HVAC, firefighting, those we rely on the specialist associates, so that we subcontract. Sometimes there is a large art work where we have to source the art from outside. That is subcontract. Sometimes some mining work, like tunneling. There are good tunnel subcontractor we have, that also sometimes is subcontract. Yeah. Okay. Thank you, sir. Thank you. Thank you. The next question is from the line of Raman KV from Secuent Investments. Please go ahead. Hello, sir. Can you hear me? Hello. I think there is some disturbance. Some other speakers are there. Can we just put it Yeah, one minute, sir. Can you hear me now? Yeah, much better. Sir, first of all, I just wanted to understand from the presentation, it has been shown that current order book is around INR 18,820. So what will be the execution timeline for this? INR 18,880 will be executed in one and a half years' time. Okay, sir. One and a half years' time. And sir, with respect to your order books in pipeline, you mentioned that it's around INR 87,000 crore of orders are in pipeline. So what can you say your win rate in this, and at what percent, what's the annual status amongst these projects? Yeah, I would like to correct you. INR 87,000 is not order in the pipeline. The opportunities are in pipeline. I see. Okay. What percentage orders in pipeline? That will be around 20% if it is good. You can say INR 16,000 crore, just going by the statistics. It can be little less or more. Okay. What is the L1 out of this? So far, I think we are L1 in INR 1,460 crores, and some order we have just received. Put together in this year, around INR 5,000 crores of order we have already secured, including the L1, if you consider. Okay, sir. Sir, my second question is with respect to the interest run rate. With the current upgrade in the credit rating as well as the 50 bps cut in the interest rate, can we see this interest cost quarterly going down from INR 50 crores to INR 40 crores only? Or will it stay at INR 50 crores? Yeah. I think if you see the interest cost, it is a mix of many things. It is interest we pay to the bank. It is the interest we pay to the client for advance which secure. It is the interest or money we paid for the LC and bank guarantee. Okay. In this, because of the credit rating gone up, definitely we will get some leverage in the interest to some of these item. We have to see how it goes. And sir, with respect to the guidance for FY 2026, what is your revenue at risk? How much revenue growth are you expecting, and will there be any improvement in net margins going forward? Well, revenue growth, as I have mentioned last time also, will be around 25%. Between 25, 20, in that range. What was your second question? I just missed it. Margins. Margin, as you can see that, it has been steadily, we are doing around 10% EBITDA range. EBITDA is one parameter. If you see your PAT, that has substantially improved with quarter to- Yes. Yeah. Mm-hmm. Sir, my final question is with respect to the revenue recognition. I just wanted to understand how does the revenue gets recognized. When you wait for an order and you get an order, do you get any advance payment onto the order, or is it like if you complete 15% of the particular order, then you will get 15% of the order value, like phase-wise? Well, see, one is advance. Advance payment depends upon the contract condition. Sometimes we get 5%, sometimes 10%, some are with interest bearing, some with interest not bearing. That is one different subject. Revenue recognition, normally we wait for 10% of the work to be completed before we There's a bargain recognition. Recognition from the start. Yeah. Revenue is recognized from the start, when we start- That is percentage of completion method basis is being adopted, the standard- These are two independent things. Advance is absolutely the contract term, and revenue recognition is based on the POC method, which is being applied. Okay, sir. Thank you, sir. Yeah. Thank you. The next question is from the line of Aditya Sahu from HDFC Securities. Please go ahead. Hi. Am I audible? Yes. Hi, sir. Thanks for the opportunity. I wanted to understand on the order inflow guidance for FY 2026, what are we expecting, and also how much of this are we expecting from group entities? Look, we are expecting to get around total INR 15,000-INR 16,000 crores of order in this year. Understood, sir. Out of that, INR 4,000-INR 5,000 already have secured. That is, I think, pretty sure that we will get this amount of order. If you ask me from there, group will be around. Just a moment, I will tell you. No, sir. Sure. Around 35% will be from the group out of that. Got it, sir. In the existing order book, how much of that is from group entities? 20%. 20%. Yeah. Okay. Understood. In the revenue and EBITDA guidance that you have given, 20%-25% growth in revenue and EBITDA guidance of 10% for 2026. Similarly for 2027, if you can go a bit further and help us on that. Are we expecting that on the same lines for 2027 also, 2027, 2028? See, there are two things. One is you can plan for second year, third year, fourth year, fifth year, which we normally do. But giving some sort of idea guideline is not correct because it depends upon many factors, and most of the factors are not in our control. Let us wait for some time. Understood, sir. On the execution front, you had highlighted in the last quarter that the execution was a bit impacted because in Bangladesh, because of the political scenario over there. Has that situation normalized or are we sort of facing any impact over there? I think last time I have told the situation is under control. There was some stoppage of work in last year up to October, November, or up to December, and thereafter we are working full swing. Okay. There is no problem for us to execute there. Understood. On the networking capital, the working capital days, if you can help me with what is the networking capital days for the current quarter? I think 130- We remained- 39 days. Net WC remained at 80 days. 80 days. Understood, sir. It has improved. Pardon, sir? It has improved from the previous quarters. Right. We earlier had, I think, close to 100 days, or less than 100 days. That has improved. On the CapEx front, if you can help us with the CapEx we are planning to do in 2026 and how much we have done in Q1. CapEx also depends upon few factors. Normally, it will be around this year, we try to make within INR 300 crores to INR 280 crores, INR 290 crores, INR 300 crores. Understood. In first quarter itself, we have already spent around INR 89 crores. Okay. It depends upon few work if we get, then CapEx can be really high than this, whatever I have told you. We are not able to disclose anything now. Otherwise, it will be around below INR 300 crores. Understood. That is all questions I have. Thank you so much for answering. Thank you. The next question is from the line of Janam Jan from ICICI Securities. Please go ahead. Thank you for the opportunity. Sir, my first question is, how are you seeing the opportunities in the Middle East, and what kind of work are you pursuing over there? Middle East, one opportunity, it has been converted to order, I have just mentioned. It is a marine work for ADNOC. ADNOC means Abu Dhabi Port. Like we have got Mumbai port, they have got Abu Dhabi port. We secured an order, a small order, not so big compared to what is market. Thereafter, there is a sewer work that is underground sewer pipeline, which is a big job in two packages. Two packages put together will be huge. So there we are having consortium partners with some of our Indian company and one Dubai-based company as well. So these two jobs we are pursuing very hard now. Okay, sir. My second question is, what is the status of the set of tenders from Vadhavan Port? Are you seeing these opportunities in this year itself or in FY 2027? Vadhavan Port, one we have got, as you know, that first job we have got. The second will be the breakwater, and third will be the dredging and reclamations, and it will keep on coming. Backwater jobs, I hope that tender may come anytime. It may come even tomorrow. Okay, sir. Sir, are you facing any labor shortage problem? Labor shortage. Labor shortage is a common problem. Look, we work in different segments. One is tunnel, one is marine, one is airport, and mining. We work in building as well, and road. There are few segments which is labor-oriented job, like building work. There are crises, but as because we don't do much of building job, we don't have that much problem like other companies. But still, yes, we have got some issue with the labor issue for building jobs. Okay, sir. Sir, how are you mitigating that then? How we are mitigating? Yeah. I think I have to sit with you for a whole day because it is a very short question, but there is long answer, lot of options. First of all, we have to see that the labor forces, those who are working, they stay. Normally, in Indian condition, if you require 500 laborers, in whole year, you will find that you recruited at least 3,000 laborers, six times, five times turnaround. So why they go? You have to find the root cause, and we have to sort it out. That is the first thing. Second thing is that try to mechanize as much as possible. In short, this is my answer. Okay, sir. Sir, currently you have a book-to-bill of 2 times, and early in the last call you had given a guidance for FY 2025% growth. Sir, can you help me understand how are you looking to accomplish this growth guidance? Yeah, I still maintain 25% growth, but it cannot be so accurate. 25 as a range, 20%-25%. Okay, sir. That answers my question. Thank you so much. Thank you. Thank you. Ladies and gentlemen, please limit to two to three questions per participant and come back in the follow-up. The next question is from the line of Shreyansh Mehta from Equirus Securities. Please go ahead. Yeah, thanks for the opportunity. My first question is pertaining to the orders which you are targeting from the parent. Can you quantify or name a few contracts which we are looking from the parent? Just in conjunction with that, are those on a negotiated basis or how does it work when it comes to the orders from the parent? I think I have clarified this last time also. There is no negotiation. It is being done the way it has to be done before for the last 15 years. The tender comes, we participate, and we get the job, or we do not get the job. If we get the job, we get the job based on the lowest evaluated bidder. Those things are still continuing. The only difference is that earlier we used to be very choosy to participate in certain segments only. But now, our parent or our group company, they have done so much of work in all the segments you name. As because they are our parent, they are asking us, requesting us to participate more and more. That is why the percentage of work from parent will be more, because we are going to the other segment as well. That's the only difference. And sir, can you name a few contracts where we under negotiation or where tenders are invited from the parent? I do not know. There are many, but is it? Yeah, I think same segments like marine, data center, airports, roads, tunnel, everywhere. Okay. Sure. Second is a bookkeeping question. What is the gross debt as on date? It is INR 960 crores as on 30th of June we have reported. INR 950 crores? INR 960 crore as reported on 30th of June. Sorry, I missed it. INR 906. Nine six zero, nine sixty. INR 960. And cash? Cash and, excluding the year mark balances, we had close to INR 290 odd crores of cash balance. Okay. The net debt remains at INR 669 crores. Got it. Sure. One last question from my side. Sir, if you see our order book has been building upon, and execution is also happening at a healthy pace, but margins largely have been since last eight to 10 quarters are in the range of, say, anywhere between 9% to 9.5%. I am talking about the core EBITDA margins. Is there any scope of improvement, at least by, say, 50 basis points or 100 basis points, which can see going forward? The core EBITDA margins. I know margin, you can say EBITDA margin or PBT or PAT, whatnot. But personally, I rely more on the PAT, which takes care of everything. I will adjust PBT as EBITDA also. But PAT, if you see, it has increased quite gradually but steadily, like 3.6% to 3.8% to 4.5% to 5.4%. In our industry, 5% PAT I think is okay, and we can compare. EBITDA, yes, it has a factor of depreciations and all. We are all looking for 10% plus, which we are achieving now. Definitely, we will try to achieve more. Let us see. Got it. Got it. That is it from my side. Thank you, and all the best. Thank you. Thank you. The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead. Yeah. Hi, sir. Sir, we have seen a sharp reduction in the interest cost for the quarter from INR 62 crore to INR 50 odd crore, despite the debt increasing on a QOQ basis. What has led to the sharp fall? Basically, as I told you, that interest has got three, four components. It is not only the bank interest, it is interest from the client on advances, LC charges, bank guarantee charges. So those components are now little bit less because most of the contracts we are able to get interest-free advance through our hard negotiation and persuasion, and bank guarantee costs also has reduced. I think probably that has contributed to this improvement in interest cost. Yeah, that has only. Okay. So if the debt remains at similar levels in the next few quarters, we can expect a similar interest cost around INR 50 crore, or there is a possibility of increase? Definitely, there would be improvisation or optimization of the overall financing cost when we are doing post the Adani or the parental leverage, which will happen. Okay. So that definitely in terms of absolute numbers also would come down. We should see rather that as a percentage of revenue, as the top line grows, whereas we are able to manage the working capital efficiently. So as a percentage of the top line, that definitely should come down over a period. Yeah. Okay. What is our average borrowing rate as of now? That is in the range of 10.5% odd there on the working capital lines. Plus, there are other components. We have a larger portion which is earmarked for the non-fund based limits, largely for the LCs and the bank guarantees which we have been issuing. So that contributes a larger portion of the interest and finance cost. What would be our limits and how much they have utilized, both fund based and non-fund based? This all put together, we have close to 6,000 crore of limits available and almost 90% is being utilized today. What would be our Mobilisation advance as of June? That stands at 830 crore as on 30th of June 2025. INR 835 crore to be precise. Out of this, what would be ballpark interest bearing? Almost 80% is non-interest bearing, so 20% is interest-bearing, in the range of that. Okay. Lastly, what would be our total receivables as of June, and of that, what would be from Bangladesh? Bangladesh, I can say Bangladesh there is no receivables because we have been paid on time and advance already have got payment. Total receivables, Mr. Shah. Total receivables stood at INR 1,600 odd crores. In terms of, you say the number of days, it is 64 days average, which is what we have been maintaining. Okay. And sir, for the quarter, we have seen INR 7 crore of share of profit from joint ventures. What led to this sharp rise? That is for the Mumbai Metro. Mumbai Metro is getting completed. We have released that amount. Incrementally, this should be a marginal number? Yeah, because it almost completed now. We have taken margin before also. There is enhancement in the margin. Yeah. Lastly, it should be done now in terms of booking the profitability. Yeah, I think that JV, the work is completed. We may get something little bit more, but nothing significant going forward. The tax rate for the quarter was 17%. Why it was so low, and how do you see it going forward? We had a tax-free income from one of our JVs, which had carried forward loss into it. That has bring down the effective tax rate for the company. It should be only for this quarter, right? Incrementally it should be normalized. Yes. Yeah. Effective tax rate would be in the same range. This is just this quarter reporting. Okay. Thank you, sir. Those are my questions. Thank you. Thank you. The next question is from the line of Ishita Lodha from Swan Investments. Please go ahead. Hi sir, thank you for the opportunity. My question is that in the order pipeline of INR 90,000 crores, how much is from the parent company? Around 30%-33%. Okay. Do we have any slow-moving orders in our order book? Slow moving. As far as. No, I don't think. No. No, not significant. Nothing. No. Okay. This order that we have received, INR 5,600 so far, this is also largely from the parent? No. These are largely from the outsiders. Parent will be around INR 1,000 crores. Yes. Balance INR 4,000 crores from the outside. Okay. Thank you. That is it from my side. All the best. Thank you. Thank you. The next question is from the line of Shreyansh Gadhani from SG Securities. Please go ahead. Hi. Good afternoon, sir. I had a couple of questions. The first one was, you mentioned that the ticket size for the opportunity that you have is going to be much bigger. Just trying to understand, how do we look at the ticket size versus margins, or is that like the order size is, like the margins are agnostic of the order size that we pick up? Usually like bigger orders, we see some kind of efficiencies that are built in. Just trying to get a sense on that. Well, bigger orders, if you convert to, I mean, bigger opportunity if you convert to orders, then your revenue goes up. If your revenue goes up, then naturally it has got some positive contribution to the margin. That is generally speaking, so that helps. Number two, the big ticket job, you get less competition. It is not like a NHAI job where 25 participants are fighting each other. There will be hardly two, three companies. Naturally, everybody will try to get their best, so competition is less. Most important part is that you are able to get qualified for this big ticket job. That is another significant thing. Another thing that, if you have 60 projects to handle, and if your revenue is INR 10,000 crores, and if you have 30 projects to handle, revenue is INR 15,000 crores, the second is much better option to run more efficiently. These are the few factors which helps. Got it. That is very helpful. Is it fair to understand that going forward, we would aim for historically, the kind of order sizes that we have got, we want to go into a bigger level of orders that we actually intake now? Yes, of course. Okay. Are we getting out of some smaller ticket jobs, or is that continuing and we are just focusing on the larger jobs now? We do not have so-called smaller job now. Once upon a time, we used to do job of INR 20, INR 30, INR 50 crores. Now there are hardly any job which is less than INR 300 or INR 500 crores. We are slowly getting out of that. That is what I say that we are getting qualified also, to get the big jobs. Got it. So last question. You have already done INR 5,000 crore, and even in the last con call, you mentioned that you are looking at INR 15,000 crore for a INR 90,000 crore opportunity. Is there a possibility that we actually get more than INR 15,000 crore given we are ahead of the run rate, or is that not a fair assumption? I do not want to increase every quarter, so let us be happy with INR 15,000 crore. We will be able to achieve that. Got it. Thank you. That is all from my end. Thank you. Thank you. The next question is from the line of Bala Subramanyam from Aranya Capital. Please go ahead. Hello. Good afternoon, sir. I heard labor shortages in the industry itself, which delayed project executions. I just want to understand the margins perspective, because we have seen some of the companies witnessed a margin erosion in this quarter. But we are almost maintaining the same levels. I just want to understand about maritime, admin, infra, and industrial buildings, how the margins are differentiating, and is there any inflation risk, steel, cement, any other things are impacting on the margin side? You can share the breakup of fixed price contracts and variable contracts also. You can throw some light on that, how domestic and international projects are differentiating in terms of margin at the execution side. Okay. I will start with your last one. Normally, international jobs gives you better margins. Okay. Got it. Because international means they are international players. They work in a high price model. Yeah. Their terms and conditions are very friendly. Not friendly, I mean, level field terms and conditions. International job, provided you assess it properly, you know the job properly, otherwise international job can be killer because their quality standards, safety standards are very high. The location also, sometimes if you go to Africa, some country can get a hit there. If your assessment of the location and the project is good, and if you get the job, if you can deliver, international projects normally fetch you better margin. That is number one. In terms of the variable contract and fixed contract, I think our most of the contracts are now variable. Exactly, I cannot tell the ratio. It will be around 70%-30%. 30% are fixed, 70% variable. In terms of the commodity price, commodity prices are now more or less steady for last few quarters. We do not see much surge in that. I do not know what may happen in future. Labor is an issue, and there are companies, those who rely most on the labor-oriented work, they are getting hit. They are also not exceptional to that. For segment like building, we are suffering because of labor force not available and because of that delay. That is what is there. Prices are just mitigating that in different ways they have their. Management would say we are not aware what happened next quarter, then whenever it will happen. We may request participants to please mute their handles while the management is answering your question. Yeah. Okay. So long answer, I think you have got your. Anything else you want to discuss? As there is no response, we move to the next question. Sure. The next question is from the line of Rehan Syed from Trinetra Investment Management. Please go ahead. Good afternoon, sir. Thank you. Thank you for giving me the opportunity. Sir, I want just a deep understanding regarding the growth that you have shown in the last release. The press release highlights strong growth, but execution has remained critical. Are there any cost escalation risks due to raw material price increase or overseas projects that you are seeing right now? This could impact margins in the coming quarters. Just put some light on it. Raw material price, I have just mentioned that I do not think it is affecting significantly to us. There are two reasons behind that. First of all, I do not see much surge in raw material price. At the same time, we are able to negotiate with the customer to have a fixed raw material price entered into the contract. That means if the price increases, we are getting compensated, vice versa. This is all about raw material price risk. Quarter 2, always quarter 2 is lower than quarter 1, as you can see from all the companies. We are not exceptional. Quarter 2 will be a little bit muted because of monsoon effect. Okay. Sir, like you have previously mentioned, the margins are even for FY 2026 and FY 2027. Is there any affection that comes, like effect of our margins for coming quarters or whole year I should be aware of? I mean, the EBITDA, as I mentioned that around 10% will be maintained. We will try to maintain. Is there anything specific you want to know? I could not get your question. You got my question or you did not get my question? No, no. I mean, what do you want to know that margin? Okay. I am just clarifying that is there any risk or any uncertainties we are how to expect in coming quarters for affecting our margins for going forward? That much. Yeah. I got it. Sorry, I got it now. Political risk in the overseas country is always there. Like when we started Colombo, we had some problem. We have started Bangladesh. If Bangladesh goes smooth, I do not see there is any other risk we have which can affect the margin. Okay. So one more question is regarding the during quarter one, this limitation become a part of Adani Group. Could you provide some insight into the strategic benefits of this transition, specifically will this open up new project opportunities and improve access to financing and bidding strength? Well, the basic idea is to grow, and the emphasis is given jobs on the growth path as because Adani, as a group, have got plenty of jobs to be done. Earlier we used to do only marine, but now we are getting into the other segments also, like airport, data center. The emphasis has been given to build up our strength in that segments to improve our capability, so that we can do more job in that segment through Adani. Okay. Sir, thank you. That is it from my side. Good luck for your coming quarter. Thank you. Thank you. The next question is from the line of Jayesh Shah from OHM Portfolio Equity Research. Please go ahead. Hello, sir. Thanks for the opportunity. Am I audible clearly? Yes, sir. Yes, you are audible. Okay. I want to go back to the EBITDA question that people have raised. How do we read it? Because if you double your turnover every second or third year that you have done, then if your gross margins are same, the operating leverage should have helped you to have higher EBITDA. Are you bidding at slightly lower gross margins, and getting better payment terms because we have seen improvement in working capital? Or is the mix of jobs responsible that the overall average EBITDA still remains at 10%? Because what we can't understand is that doubling of growth is not helping you in terms of operating leverage. Well, there are many things in that. Okay. You know that we have some bad projects a few years back, like Bangalore Metro and Delhi Metro. Those projects are gone now, behind us. That is why you can see the EBITDA, which used to be around 9% or 8.8% to 9%, has finally gone to 10% consistently during last three, four quarters. That is an improvement, and I strongly believe that if we do not have such one-off bad job, EBITDA will further increase. Let us see. Okay. But at bidding level, you are bidding at the same margins as you were bidding before, despite higher capability? Or are you able to pick and choose the contracts at higher margins now? If I look at your order book, will they be at higher margins than what you have done till now? Well, we cannot be the chooser. It depends upon the market. What we do now, that we definitely find some job which is interesting, which will make good margin. We try to get the job. There is no pattern that earlier we used to do 8% margin, now we are bidding for 12% margin, not like that. But one thing is there, let me complete that. As I have just said that we are trying to get bigger jobs, where the competitions are less, there probably we will be able to make little bit better margin while we tender. Okay. So in a way, you are giving the benefit of the operating leverage to the customers and trying to get more orders. Is that the way to understand? It is a matter of balance, I mean, from both sides. Sometimes we put better margin, we get the job. Sometimes we have to get the job, that is why you put little bit less margin. So both are there. Right. And whilst I am not asking you for guidance for FY 2027, 2028, post Adani's acquisition and the fact that you have a parent which can give you captive jobs, is the organization geared up to maintain such growth rate in terms of planning? We are trying to understand what is the peak capacity of ITD or what could be a constraint. If you keep We as a company have got growing at 25% per annum. Yeah. We have got enough capacity as we have demonstrated just for your sake of consumption, that we have grown, as you know, 3,000 to 5,000, 5,000 to 7,000, 7 to almost 9,000 plus, with almost same kind of resources in terms of the manpower and even machinery also. The core thing is that if you have the knowledge, the core team, if it is with you, then it is not a big problem, because plant and machinery you can buy. They are available now in plenty, and we can get support from Adani Group also. What is required is the knowledge. Knowledge we have. So I don't see that as much of a challenge. Okay. And in terms of mix of jobs, are margins same, or are they different? Even if you can just rank them in terms of what is most profitable and what is least profitable, without giving the percentages. Yeah. It cannot be same because different segment has got different this thing. If you ask me in that way, the top will come underground metro, in terms of margin, better margin, then marine, then specialized jobs like foundation-oriented job, then roads and building. It goes in that pattern. Okay. Airports and ports you would include in Ports would be marine? Marine is port. Airport will come in between. Right. Airport also has got different scenarios. Some airports are INR 400 crore, some are INR 5,000 crore. So if you go for INR 400 crore job, you have to put a very low price, which is not viable. But big airports, yes, we can make better margin. Okay. Thank you very much, and sir, best wishes. Thank you. Thank you. The next question is from the line of Amit Agiccha from F G Hawa. Please go ahead. Yeah. Good morning, sir. Thank you for the opportunity. Sir, am I audible? Yes, you are audible. My question was connected to, is your company looking for interlinking of the river project? It is a big opportunity. Which project you mentioned? Interlinking of rivers in India. Interlinking rivers in India is a thought which is there for last 15, 20 years through inland water transport. We have to see that whether really it happens. If it happens, if it is sized, is good, definitely we will be interested because it is a kind of marine job which we are very good in that. But we need to see the opportunity in a perspective of when it is happening, what is the feasibility, et cetera. Well, till now the company is not there, right? I don't see much. You tell me any project of such kind of interlinkings happening now. I don't see. In MP, I think so. In MP, Rajasthan, Maharashtra, I think so they have started picking up. Yeah. It is in plan. The whole India, there is lot of plan, but when it will happen? If it happens, then that will depend upon the size of the project, we will choose whether it is okay or not. Okay. Thank you, and all the best for the future. Thank you. Ladies and gentlemen, that was the last question for today. I now hand over the conference to management for closing comments. Thank you for the questions, and we are very happy that you have got interest on us. Please rely and keep on keeping interest on this company. Thank you very much. Thank you. On behalf of ICICI Securities, I conclude this conference. Thank you for joining us, and you may disconnect your lines.