Ladies and gentlemen, good day and welcome to Dilip Buildcon Limited's Q1 FY 2027 earnings conference call. As a reminder, all participant 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 star then zero on your touchtone phone. Please note that this conference is being recorded. And now in the conference, over to Mr. Ashith Salian from Adfactors. Thank you, and over to you, sir.
Thank you. Good morning, everyone, and thank you for joining us today to discuss the audited financial performance for Q1 FY 2027. From the management, we have Mr. Devendra Jain, MD and CEO, Mr. Rohan Suryavanshi, Head Strategy and Planning, and Mr. Sanjay Bansal, the CFO. Before we proceed, I would like to bring to your attention that certain statements made during the discussion may constitute forward-looking statements. These statements are based on our current expectations, assumptions, and beliefs regarding future developments and are inherently subject to various risks, uncertainties, and factors beyond our control. Such forward-looking statements involve both known and unknown risks, and we advise you to interpret them with caution. I will now hand over the call to Mr. Rohan Suryavanshi for his opening remarks. Thank you, and over to you, sir.
Good morning, everyone. On behalf of the entire DBIL family, I extend a warm welcome to all our investors and analysts to our quarter one FY 2027 earnings conference call. The financial results and investor presentation for the quarter have already been uploaded on the stock exchanges, and I trust you have had the opportunity to go through them. Let me begin with providing the broader sector environment. The infrastructure sector continues to enjoy strong policy support, with sustained government focus on roads, railways, water, transmission, and renewables, all sectors in which we are currently and actively engaged in. The awarding cycle in the first quarter was on the softer side, as is usually the case, and particularly in the National Highways on account of the ongoing recalibration of the Bharatmala Pariyojana pipeline, and the process related delays. However, the medium-term signal from the government remains constructive.
During the quarter, NHAI articulated its FY 2027 project pipeline of 54 highways and expressway projects covering 2,442 km with a total capital cost of approximately INR 1.80 lakh crores spread across 13 states. Of these, 26 projects are proposed under the EPC route, 21 under the HAM route, and seven under the BOT route. This gives the industry a clear line of sight on award activity for the balance part of the year. It is also our thing that aligned with our own strategy is the acceleration of the government's own monetization program. NHAI has finalized 17 highway stretches spanning approximately 1,693 km for monetization in FY 2027 through its BOT and InvIT routes, and which is expected to generate proceeds in the range of INR 30,000 crores-INR 35,000 crores.
This is part of the second national monetization pipeline, under which the road sector alone is targeted to unlock INR 4.42 lakh crores between FY 2026 and FY 2030. This validates the InvIT-led capital recycling model we are building at DBIL and reinforces the depth of the institutional market for the operating road assets we develop and transfer. Global uncertainties around crude prices definitely continue to weigh on fuel, bitumen, and related input costs. Working capital cycles across the industry remain elongated and administrative delays on project approvals and payments have persisted through the quarter. In our assessment, these are cyclical rather than structural, and the medium-term thesis for Indian infrastructure remains firmly intact. Our approach, therefore, continues to be one of selective tendering, execution discipline, and preservation of balance sheet strength. Coming to DBIL's performance.
Our order book stood at INR 27,691 crores as of 30th June 2026 with a well-diversified presence across 12 verticals. Key segments include mining, roads and highways, irrigation, and renewable energy, which together form the core of our order book. This spread is deliberate outcome of the DBL 2.0 strategy and gives us strong revenue visibility without dependence on any single segment. Out of this order book, in the MDO, the reported order book is about INR 5,224 crores, which represents only a three-year rolling snapshot across the Siarmal, Pachwara, and Pottangi SPVs. Beyond this, the balance contract value of the mining sector stand at approximately INR 1.03 lakh crores at current pricing.
These assets provide a substantial pool of long-term contracted revenue beyond the reported order book. In FY 2027 quarter one, order inflows stood at approximately INR 268 crores. As I mentioned, this is the first quarter and the ordering activity usually picks up at the end of the financial year, and we are very hopeful of maintaining our guidance of INR 10,000 crores-INR 12,000 crores of new orders in this financial year. Currently, our bid pipeline stands at approximately INR 1.5 lakh crores across sectors. We continue to maintain our selective bidding approach, prioritizing profitability, cash flow visibility, and balanced risk reward over pure top-line growth.
Additionally, I am pleased to share that DBL has been declared the L1 bidder for the construction of the Sikasar to Kodar Reservoir Link Canal pipeline project in Chhattisgarh. On a lump sum basis, this is valued at about INR 2,524 crores. This win further reinforces our positioning in the water and irrigation vertical, which remains a strategic focus area within our diversified order book. On the execution front, during the quarter, we completed three HAM projects worth INR 1,700 crores, all forming part of the Bengaluru-Vijayawada Expressway in Andhra Pradesh.
Each of these packages was completed ahead of the scheduled COD, consistent with our track record of nearly 90% early completion across our project portfolio. Our mining vertical, which is progressively becoming the most important driver of our long-term earning visibility and predictable cash generation. The total coal production for quarter one FY 2027 stood at 4.79 million tons. At the Pottangi bauxite, production is yet to commence, and we will update the market as we approach the operational start-up. However, we remain firmly on course to reach our previously guided coal production of approximately 57 million tons by FY 2029.
At that scale, DBIL will be one of the top three participants in India's energy security architecture and a significant contributor to the country's coal supply mix. On our multi-asset platform, Anantam Highway Trust continues to progress in line with the roadmap we had shared at the time of listing. As of 30th June, 2026, DBIL, along with its associates and economic interest, hold units of approximately INR 1,314 crore at face value in Anantam Highway Trust and approximately INR 207 crore face value of units in Shrem InvIT, taking the total value of units held by the group to approximately INR 1,521 crore. On the pipeline of asset transfers to the Anantam Highways InvIT, we remain on track to transfer the balance HAM assets in phases through March 2027.
The next tranche of 11 assets that will be flipped is expected to require less than INR 81 crore of incremental equity investment while generating inward units valued at approximately INR 1,750+ crore. Beyond the HAM portfolio, I am very happy to report that our multi-asset platform is being built further through the 1,977 MW solar plant mandate that has been awarded to us in FY 2026 and the Mahakali Interstate Transmission Project in Karnataka. As these assets are also commissioned, they will feed into the recurring distribution income over the medium term. Beyond these assets, we also have water HAM and oil and gas portfolio, which we will also look to put into an InvIT structure so that it is held off DBIL's balance sheet, plus held in the most tax-efficient manner and providing long-term cash flow visibility to the Group.
Now, coming to our debt position. Now, this is a question that is usually asked, and I will just take some time to explain where we are. On net debt on a standalone basis, as on 30th June, 2026, stood at INR 2,106 crore, compared with INR 1,880 crore as on 31st March, 2026. Now, this movement reflects the normal seasonal build-up in working capital that is typical in the first two quarters of the fiscal year and has been the same in the last few years, if you look at our past record. The normal working capital cycle has moved marginally from 131 to 133 days. However, we expect working capital to normalize in the second half of the year. The standalone net debt to equity stood at a comfortable 0.31x as of 30 June, 2026.
The consolidated net debt as on 3oth June, 2026 stood at INR 7,801 crore, and Mr. Mansukh will provide additional color on this shortly. Now, while these are the numbers, as I have said before also, our debt must be viewed in context of whatever has happened in the last couple of years and in the context of the asset base that sits on our balance sheet. Now, when we first gave the vision of DBL 2.0, we expected our debt levels to reduce significantly further than what we have been able to do. But part of the reason has been the last two years, two 2.5 years, have been years of low order books, which eventually led to lower revenue, which eventually led to lower profitability and lower capital generation. Because of which we were not able to do as much as we had intended.
In the same time, we were also investing in our assets where DBIL in the last 2.5 And years has invested INR 1,200 crores plus from its own, or around so, from its own books into these assets, which will convert into InvIT units going further. Had we not made this call of holding this investment and doing this investment, we would have been able to reduce our debt significantly, but all these things led to it. Today, we hold InvIT units of INR 1,521 crores already on our books, and we are expecting INR 1,700 crores, INR 1,800 crores of more InvIT units to come as the balance 11 assets are transferred to Shrem InvIT.
Besides this, like I mentioned last time also, our gross block of about INR 3,600 crores, which roughly is about INR 800 crores of net block, which is also almost entirely debt-free, is also on our books. That is again, very positive. Our goal to reach net debt positive on a standalone balance sheet by FY 2028 remains firmly on track, let me assure you guys. It will be supported by the combined cash generation from the EPC, MDO, and the rising InvIT distributions. I reiterate that our debt reduction guidance of INR 600 to INR 800 crores that we had mentioned at the start of the year is on track, and we will achieve that.
At the same time, let me reiterate that our guidance on our revenue of 30%, 40% also remains on track. None of our guidance that we had given in the last quarter has changed, and we are very positive around that. See, the key thing that we need to understand that the revenue from our large projects, whether it is transmission, whether it is road project, whether it is solar, all those projects on water has not really started. But as this year progresses, we will see significant build-up in our revenue because of all these new projects which are there on our order book. Let me come to one of the most important and last agenda that I have to share with you.
I am very happy and glad to share that the board has considered and approved a stake sale in our under-construction power transmission and solar projects, which represent a combined project cost of approximately INR 8,400 crores to Alpha Alternatives. This deal is like the past deals that we have done with Alpha Alternatives, where the consideration under this transaction will be received in two parts, partly in cash and partly in units. Once the final terms are firmed up, as the definitive agreements are signed, which should happen in the very near future, we will be able to disclose in detail of how that is structured.
But what is most important that I can say, that as part of this arrangement, Alpha will also co-invest alongside DBIL throughout the construction phase to the extent of 49%. Which will meaningfully reduce our equity commitment into these projects. This freed-up equity commitment can be used for redeployment across our businesses and will also help us in reducing our debt.
So more on this, and we will hold a separate call once we announce this deal to explain it in detail. Like I said, as per regulation, I can only share this broad part right now that this is a transaction in line with our past transactions, and which furthers both our debt reduction goals and also our second goal of building long-term cash flows for the company. To summarize, quarter one FY 2027 has been a quarter of steady execution against a sectoral backdrop that was on the softer side in terms of awarding activity, but constructive in terms of medium-term policy signals. Every one of our three engines, EPC, MDO, and the multi-asset program, PRASM, is progressing in line with the roadmap we shared with you last quarter. The strategic direction of the company remains unchanged.
We are confident that the compounding effect of these three engines will translate into strong and sustainable value creation for all our stakeholders over the coming years. I can very confidently say that our capital efficiency will be amongst the top guys in the sector, and the ROE and the ROC will be much better as not only our investment has reduced significantly, but also the return that we will accrue to DBIL will be meaningful. Now, with that, I would like to hand over the call to our CFO, Mr. Sanjay Bansal, who will take you through the financial performance in greater detail. Thank you.
Thank you, Rohan. Good morning to all. I will now briefly take you through the key financial highlights for the quarter ended 30th June, 2026. On standalone basis, the revenue from operation for quarter one FY 2027 stood at INR 1,930 crore and EBITDA stood at INR 199 crore. The EBITDA margin was 10.32%, marginally expanded from 10.11% in quarter one FY 2026, reflecting steady cost management even in a quarter of moderate aggregation. The profit before exceptional item and tax grew to INR 72 crore in quarter one FY 2027 from INR 57 crore in quarter one FY 2026, an increase of approximately 26% year-on-year. The profit after tax stood at INR 39 crore in quarter one FY 2027, as against INR 123 crore in quarter one FY 2026. The base quarter profit after tax included an exceptional gain of approximately INR 98 crore relating to divestment transaction.
Once we adjust for this, the underlying profitability is a clean improvement during the last quarter. Now come to the console performance. The consolidated revenue from operation for quarter one FY 2027 stood at INR 2,378 crore against INR 2,620 crore in quarter one FY 2026. The EBITDA, excluding other income, was INR 429 crore with EBITDA margin of 18.05%. The profit before exceptional item and tax at the console level was INR 127 crore during last quarter. The profit after tax on consolidated basis was INR 128 crore in quarter one FY 2027, against INR 271 crore in quarter one FY 2026. With this, I would like to hand back the call to the operator for the questions and answer session. Thank you so much.
Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask the question may press star and one on their touchtone 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'll wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question. First question is from the line of from Shravan Shah Dolat Capital. Please go ahead.
Hi. Thank you, sir, for the opportunity. A couple of questions. Rohan sir has already mentioned in terms of the guidance, most of the parts, plus just two, three things on that front. On the EBITDA margin, guidance for this year, 11%-12%, that remains the same?
Yeah, the guidance is as we had indicated earlier on this, Shravan-ji, that 10%-12% that guidance is still there only.
Okay. In terms of the execution, when we are saying 30%-40% growth, primarily the fourth quarter, then we will be seeing a significant growth. That's the way one can look at?
Third quarter ramp up and fourth and it will continue to the first quarter till rainfalls come of next year, next financial year.
Okay. Till now, how many value of projects that we have bidded and where bid is yet to be open?
INR 15,000 crore-INR 20,000 crore project something sir.
Okay. This working capital that we are seeing, obviously in 1 Q, 2 Q, normal cyclical increase. So year-end, how one can look at, will it be a kind of a 10, 15 days kind of a reduction versus the last year? How one can look at on the working capital days score?
120 days. The working capital days will reduce about 120, where we expect, and overall, debt also, like I mentioned, that will also reduce that we had given the guidance for.
Yeah. Got it. Sir, on the MDO part, a couple of things I just wanted to understand. Last time we have talked about that thing FY 2027, 2028, and 2029, we were looking at INR 2,500 crore, +INR 3,000 crore and INR 4,000 crore kind of a revenue. In terms of the coal production, you have mentioned that 57 million ton by FY 2029. Looking at the first quarter number, it seems that to achieve FY 2027, INR 2,500 crore. This quarter we have done INR 362 crore. We need a significant kind of a 82%, 83% kind of a growth. Similarly, in terms of the coal production also we need a decent growth. Just wanted to understand that we will be able to do that.
Shravan, coal production in the CR month, we have planned around 27 million metric ton of the coal production. First quarter and another second and third quarter we will close with the 27 million ton in this year and 7 million ton will be in Pachwara project. Pachwara project because there was some strike between the PSPCL and employees . Another two, three quarter ramp up . The same plan is there. 57 million ton we will achieve in the FY 2029 as per the contract plan. [ Non-English content ].
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[Non-English content] coal handling plant contractually [Non-English content] financial year and next financial year the coal production will run without coal handling plant as per the contract [Non-English content] routine [Non-English content] . Coal handling plant [Non-English content] . Accordingly coal production ramp up [Non-English content] this year 27 million, next year 35 million and [Non-English content] coal handling plant with the 50 million. In case of the Pachwara, 7 million is the contracted capacity [Non-English content] last two year [Non-English content] achieve [Non-English content] numbers [Non-English content] team [Non-English content] update [Non-English content] number [Non-English content] major [Non-English content] revenue [Non-English content] jump [Non-English content] coal handling plant [Non-English content ] then our coal fee 78% will become the 100%.
Then the major jump will come in the FY 2029.
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[Non-English content] Simple math 27 million in the Siarmal with the rate of around INR 600 per metric ton and 7 million in Pachwara with the rate of the INR 1,200 metric ton whole year.
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Okay. And sir MDO [Non-English content] extra obviously we are doing a much better in terms of the margin at MDO level, [Non-English content] standalone debt reduction [Non-English content] INR 2,100 crore and INR 2,600, INR 2,800 crore. C an we divert or maybe can give a dividend to the standalone that will also help [Non-English content] income and the standalone improvement [Non-English content] debt reduction [Non-English content]
[Non-English content] bank permit [Non-English content] internal accrual [Non-English content] already bank further equity investment Siarmal coal project zero [Non-English content] equity internal accrual [Non-English content] Plus further [Non-English content] last financial year 15,000+ project [Non-English content] Q4 [Non-English content] add [Non-English content] revenue participation. The major project is our [Non-English content] 3,500 [Non-English content] project [Non-English content] solar ,500 [Non-English content] project [Non-English content] 1,700 [Non-English content] project our transmission project and ERCP [Non-English content] canal [Non-English content] 2,000 [Non-English content] project.
[Non-English content] revenue participation will start from the Q2 slowly and Q3, Q4 peak [Non-English content] once the revenue will come [Non-English content] ramp up [Non-English content] last quarter [Non-English content] war [Non-English content] disruption, we buy the diesel in the 140 and the bitumen prices is double. [Non-English content] revenue guidance [Non-English content] plans [Non-English content] ultimately last quarter [Non-English content] debt reduction 100% We will achieve the 30, 40% revenue guidance plus [Non-English content] 100% achieve [Non-English content] Q2, Q3 onward [Non-English content]
Okay. Great sir. Thank you and all the best sir.
Thank you, Shravan
Thank you. Participants you may press star and one to ask a question.
Next question is from the line of Deepak Purswani from Swan Investments. Please go ahead.
Yeah. Hi. Thank you for the opportunity and congratulation for the deal. Sir, just wanted to check on this deal frame. In the presentation, we have shown that the balance equity requirement for these two projects is going to be around INR 1,250 crore and INR 420 crore. Once this deal culminates, incrementally, do we have to put the equity or this would come entirely from the Alpha accurate?
Sir, thank you for your question. Yes, you are right. In both of these projects put together, it is some INR 1,600 plus crores of equity needed. Alpha will be putting 49% during construction. Which means INR 800 or plus crores of equity, somewhere around in that range, will come from Alpha and only the remaining INR 800 crore will need to be put from DBIL's side.
Sure. Okay. Secondly, just wanted to check on some of the development which has recently happened, especially related to the Kerala project. How should we see that development from overall project execution point of view? How much of that order is there in the order book and is there any implication for us going ahead?
In the Kerala project, the committee visited there. They have given the report that it was a natural calamity. There are always two portals in a tunnel construction. One is on one portal side. Mostly, by the end of this month, the tunnel construction will start from one portal. Until then, some due diligence will be done on the portal where this accident happened. The rest of the project is on track. That accident was due to purely natural calamity. A Supreme Court-guided committee has also given its report there.
Okay. Secondly, sir, two things. One, from the working capital point of view, how should we see overall what is the kind of reduction that will happen when there is a ramp-up, especially in the case of inventory, which at this point of time is relatively higher anywhere. Secondly, on the margin front, because of the commodity price hike, will our pass on happen there or are we still facing some problem in terms of the commodity prices?
The government has given some relaxation in the commodity prices, especially in case of the fuel and bitumen. 60%-65% will be reimbursed to you. But overall, somewhere it has impacted the margins because due to the disruption, other things have also become costly, like cement, bitumen, steel, and everything due to transportation. In the future, I don't see this as a long disruption. I think it will level up in a Q2, Q3 way. For working capital, Sanjay, you tell.
Working capital, basically, like Rohan said by this year-end, we may reach to 120 days and next year probably around 90 days of the total.
Okay. And sir, from the finance cost point of view, this year, how should we see this finance cost?
The finance cost for the full year would be a total of INR 350 crore, because we are basically expecting some lesser utilization of working capital during quarter 3 and quarter 4. So our targeted cost is around INR 350 crore.
Okay. Thank you. Thanks a lot and wish you all the best, sir.
Thank you. Thank you very much. Participants, you may start and one to ask a question. Next question is from the line of Vishal Periwal from PL Capital. Please go ahead.
Yeah, sir. Thanks for the opportunity. Sir, a few questions on that slide that we gave on equity investment tracker. I think just a few clarifications. One is you mentioned for transmission and solar, the total equity requirement is almost INR 1,600 odd crore and then half of it is coming from Alpha. But in that slide, that serial number H and I, if you just do a clubbing of both, then the number is coming lower than INR 1,600 odd crore. How do you reconcile that thing?
As Rohan said, the total requirement in transmission and solar is INR 1,650 crore and around 49% will be infused by Alpha. But we have also arranged structured equity of about INR 900 crore. If you refer to the H and I line-
Yeah.
Almost 85% equity will be sourced through investors and through structured equity.
Okay. When you say structured equity, it is not an internal accrual. It is coming from-
Yes. It is not from internal accrual. We have already raised INR 900 crore.
Okay.
The idea behind this very clearly, like you mentioned, in the last two to 2.5 years also, DBIL from its book has invested INR 200+ crore of equity, which obviously had we not done, we could have reduced our debt by that same number. While our goals are twofolds, we want to reduce debt on the standalone front. We also want to build a long-term capital business, which is why at the InvIT units we want to hold assets. For that, how do we achieve that goal is, A, we don't use a lot of capital from our own books to build these assets. What we will do is, A, the one part we solved by having a partner who will co-invest with us. The second part is structured equity, where we get a structured equity play in place.
Once we convert into a higher valuation at COD, we will let go of whatever was the structured equity we have raised, and the interest there, we will sell that much off and keep the remaining assets on our book. In a sense, DBIL balance sheet has free cash to reduce debt, plus we have equity for our assets where we build those assets, and we get the upside of the higher valuation once the COD happens.
Okay. Now, I think you're linking it with the debt also. Have we raised debt at a whole coal, I mean, standalone, and that's the same we are putting in equity, and is that once Alpha put in money, so we can reduce the debt. Is that what the intention is?
No. They are two separate parts. One is the equity that Alpha is putting into. That they are putting as a partner into it. Besides the 49% that Alpha is putting in, we have also made arrangements for structured equity to come in for our part of 51%, for that part. Now, that what we are putting in, is the idea and the goal there is that we will use whatever we want to with the idea and goal that our standalone debt does not increase, and we use our standalone cash flows to reduce our debt. Very simply, whatever cash flows I have today, whatever free cash the company generates, either it can reduce debt or it can put in equity, correct?
Yes.
I am saving all the free cash that the company creates for reducing the debt, while I am keeping a line open for structured equity where as soon as my project during construction we build it, and as soon as it and as soon as my project gets completed and I get my units, I will flip the structured equity into those units, pay off whatever structured equity is left, and keep the remaining units for DBIL.
Okay. Then in the same slide, the serial number F and G. Is it fair to say these INR 20 crore and then INR 161 crore, so they will be coming in P&L as other income for us?
This distribution from Alpha, so this INR 161 crore partly will be received at DBIL level because the total INR 1,314 crore equity is held at two places, DBIL and one subsidiary. So basically, this INR 161 crore will receive from the Alpha in DBIL and partly in one of the subsidiaries.
Okay. Sir, the reason why I am asking is because if you do a difference of our number which was there in FY 2026 PPT and this number, so ideally the reduction which is happening is to the extent of INR 60 crore, INR 65 odd crore. Just thought to check, is it everything coming in other income or probably something is some other subsidiary in a standalone business or some other way the number is also going?
The change in number is because the timing of transfer the asset to InvIT and getting the units. The transfer of units got delayed by one quarter because in June we could not transfer. Now this transfer will happen in this quarter, and we will receive around INR 700 odd crore units against four asset transfer what Suryavanshi said. It is because of that. Otherwise, all this long-term amounts return from F to I will be received in cash.
Okay. Thank you very much. Participant's email press star and one to ask a question. Next question is from the line of Vinay Chaudhary from Invexa Capital. Please go ahead.
Hello. Yeah, hi. Thanks for the opportunity. My question also is around the console debt and the investment tracker slide. Where we mentioned the whole MDO, the cash requirement will be from SPV internal accrual. Also, currently, what is our cash flow generated from this MDO? Because we need to also spend some CapEx for the coal handling plant and other stuff. Can you share some numbers on the cash flow, what currently is being generated and over the next two years, how will this get addressed by the internal approvals?
Okay. Basically, the total CapEx at Siarmal was originally envisaged INR 2,730 crores. Out of that, around 40%-45% CapEx is already done. More than 50% equity already put in. There is around INR 300 odd crores cases already sitting at the Siarmal level. Basically, the slide number 24 says, as per the total original assessed equity, INR 235 crores is still balanced, which we are saying it will be managed through the SPV internal accruals and the case sitting at the SPV. To answer your question, I have already have a case generated and sitting at the balance sheet, which is higher than INR 235 crores. The equity will be made out of the internal accruals and balance will be raising debt, which is already sanctioned and disbursement will happen.
One is our equity commitment of INR 235 crore. The other would be the CapEx requirement, as you mentioned, about 50% odd is pending. Just to understand, what would be the current debt in the MDO and the cash it can throw up to address the debt?
Total outstanding debt as of 30th June at Siarmal level is INR 60 crores, which is partly equipment debt and partly the mining facility debt. Balance debt is basically a total sanction at the Siarmal level is INR 2,000 crores. We are still to draw around INR 1,300 crores. Equity, we have already said it will be managed through internal accrual. Balance will be through disbursement from the sanctioned facilities.
Got it. Lastly, where we have on the solar and transmission equity, it's clearly mentioned that INR 1,600 is the total and our share attributable is about 51%. The INR 1,400 crore in HNI, that is on the total level. The attributable cash inflow, what we are assuming here, is also supposed to be about 51%. Is that the right way to see?
Can you come again your question? Because there is some-
Sure. While the equity requirement in on column C, D, and E is on the total level, and out of that, about 51% is supposed to be infused by us. Likewise, the cash inflow as well, the INR 1,450 crores, that also has to be attributable on 51% to us. What we have assumed that-
Let me clarify again. The D and E, the total equity requirement is INR 1,660 crores. Out of that, 49%, meaning INR 830 crores will be invested by the Alpha. The balance INR 830 crores will be met out of this DBL contribution and some structured equity we already raised. So total equity requirement will be made from three sources, Alpha, DBL, and structured equity.
Right. Got it. Lastly, on the consolidated, what we have about INR 7,800 crore on the net level. Where do we see the end of this year, for FY 2027 and 2028, where do we aspire that to go?
Sorry, sir, what was that question? Can you repeat? Where do you expect at the end of the year to go?
Consolidate net debt, which is currently standing at INR 7,800 crore. We understand that on the standalone level, we aspire to be net debt free by FY 2028. But on the console level, with the transfer of the assets and all, and the cash flow on the company level, where do we see this number of INR 7,800 crore going to by end of this year and the next year?
Sir, console net debt will always be a basically cycle that will continue going on. We will complete assets, and as soon as the asset is completed, that debt will move out and go to, let's say, if we sell it to our own InvIT, it goes there, or if we sell it to someone, it goes out of our balance sheet. But at the same time, DBIL will continue also investing. As a growing company, we will be continuously investing in assets in PPP mode. For every of those assets that we take, we will keep raising debt, pre-putting our equity, because that is how we grow our business. That is how we grow our asset business as well. That will be a constant methodology that we will build assets, sell them, again build assets, keep selling them. That will go on.
There is no console level goal that we have put in place. There is a standalone thing that we've done. All the assets that we do are primarily more on-
Return is already kind of envisaged. Hence, we are very comfortable taking that kind of risk. Banks are very happy funding that kind of project portfolio for us, and we have a very good track record as well. In the road HAM alone, we have done upwards of INR 45,000 crores of projects. So which is the largest portfolio for any road EPC company. This is a model that we are comfortable with and we will continue doing it. So when we are looking at the company, it will be on the standalone levels, where we are saying we will be a near net zero company in 2 financial years. Which is on the standalone basis.
Thank you. Next question is from Bhavin Modi from Anand Rathi. Please go ahead.
Hi sir, thank you for the opportunity. Sir, first thing I just wanted to understand, how does the MDO billing, the revenue recognition works? So there are two parts to it, right? One is the overburden removal and second is the coal extraction. So, do we get the reimbursement or the billing when only the exactly coal is being removed or do we also get for the OB removal? So how does it work actually?
Bhavin, CRML revenue recognition is different. First let me tell you, there is a mining plan for the whole year. According to that, there is a stripping ratio. So at the end of the year, you have to match that stripping ratio. During the month on month, you get a payment for OB at a certain rate, and there is a payment for coal, mining to the stockyard and stockyard to the siding. If the coal is dispatched, there is a certain payment. Ultimately, at the year-end, whatever payment you have received for OB gets adjusted against the stripping ratio. The maths is a little complicated. My team will explain it to you separately. In Pachwara, it is a little similar. Once we dispatch the rake from our siding and when the Punjab government receives it, there is no payment for OB.
Either it's around INR 1,150 to 1,200 crore, that is our coal receiving rate on a per ton basis. This is the way to recognize the revenue in both the mines.
But sir, to keep it simple for my financial modeling purpose, can I directly take whatever the coal is being extracted, multiply by the rate as per the coal mining agreement? That will be the right way to look at it.
I'll explain you. For your modeling, the total coal production for the year, has a rate of around INR 55-55 per ton for CRML. You can take 70% of that rate to calculate the revenue because 100% of the coal is not dispatched, it is kept after production. For 7 million, it's a simple math, you can match it with 1,200.
Got it. Understood, sir. Thank you. Second thing, sir, just wanted to understand about the Wayanad tunnel collapse. Can this have an impact on our technical score? Just wanted to understand, especially, seeing the tunneling business, right? Will that impact our future bids in the tunneling business? Just wanted to have a color on that.
No, Bhavin, there is no such thing as a technical score in it. I have already told you that a committee has given this report. That was a purely natural calamity. There was no defect in our construction or our procedure. Last night, when this accident happened there, it rained 300mm in one night. And you must have seen that this is the same place where in 2024, a whole village of 400 people had collapsed and there were a lot of casualties. This is that place. So this is a purely natural calamity. It does not impact our technical score or our tunneling bidding.
Got it, sir. So sir, anything from the construction industry side, looking at these things because now we are facing more like, you can say, the torrential rain types. We also saw the similar collapse or maybe similar accident happening in the missing link. As a construction industry, are we trying to increase our standards or how are you looking at these things?
Bhavin, there are a lot of discussions on this. Technical people, big committees are formed for this. Our IITs and all the institutes work on this continuously. But all these natural calamities, for this any structure, the precedent available with you, is designed on that. If there is any unprecedented thing, like your 300 mm rain or a design for a particular high flood level, and if it happens two times or three times, then no infrastructure is designed for it. Such things not only today, even in the past 30, 40 years, sometimes natural calamities occur, sometimes bridges collapse, sometimes water overflows This keeps happening, but 100% engineers work on what happened last time, what was the soil characteristic. Even the missing link that collapsed, it was due to heavy rainfall that the accident happened.
Got it. Thanks.
Thank you. Next follow-up question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi. Sir, this quarter's other income is INR 40 crore on standalone. How much of that will be from InvIT? If you can give some broad breakup of Shrem and Alpha as well.
Total other income is INR 40 crore. Out of INR 40 crore, INR 26 crore pertains to the dividend and INR 5 crore from the InvIT interest. Around INR 31 crore pertains to the distribution and. Out of INR 40 crore, you can take INR 31 crore from InvIT and INR 9 crore from my FDR interest and other income.
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Just a second. For INR 26 crore, INR 19 crore dividend is from Anantam. Alpha. Total INR 26 crore dividend. That dividend is entirely, that INR 26 crore dividend is entirely from Alpha, and the interest is from Alpha and Shrem InvIT.
Okay. Why I was asking broadly is that in our capital equity investment tracker, let's say for FY 2028 also, we are broadly seeing INR 27 crore from Shrem and INR 339 crore from Alpha. So what will be the number roughly on a standalone basis? One of the participants was also asking. So how much will go to standalone because we do not hold the entire units in the DBIL standalone, maybe in two, three companies. So just wanted to understand roughly one has to look at Shrem's proportion that we hold at a standalone and Alpha's how muchpercentage as a standalone that we own.
Shravan, total units are INR 1,314 crore of Alpha. Total INR 850 crore is basically at the DBIL level. The balance Alpha units and Shrem units, these are at the subsidiary level. So total distribution will come like out of the total INR 1,500 crore, INR 850 crore distribution will receive at DBIL level and balance at the SPV level. But if you are reconciling the amount shown in equity tracker and the other income, then one part is missing which is capital return. Capital return is primarily in all the distribution. It varies. Sometimes it is one-third, sometimes it is half. So overall basis, as a thumb rule, you can take two-third as a dividend and interest and one-third as a principal return. Then we-
Got it. That is very much clear. Just one thing on the MDO. Sir has explained very well, Devendra Sir. Just one thing, current margins so that will remain even for next two, three years, and maybe one can say a slight improvement is also possible there at a margin level.
[Non-English content] margin level CRML [Non-English content] till CHP completion, margin will almost same [Non-English content] inflation [Non-English content] and then 78% will become 100%, margin profile tremendous change positive side [Non-English content] 7 million margin [Non-English content] profile almost same
Okay, [Non-English content] . Broadly coal handling plant [Non-English content] CapEx हो [Non-English content] cash MDO CRML particularly, that we can a kind of a transfer to the standalone or any of our subsidiaries to use for a debt repayment or for maybe further equity in any other project.
Directly we can pick it in DBIL standalone.
[Non-English content] MDO [Non-English content] coal handling plant [Non-English content] CapEx [Non-English content] standalone [Non-English content] shift [Non-English content] वो understanding [Non-English content] sir?
That understanding [Non-English content] clear [Non-English content] coal में वो terminology [Non-English content] peak rated capacity. That is 42.5 million metric ton in a year, and that is the COD of the project. The definition of the COD is the 42 and half million achievement. Completion of the coal handling plant is the COD. [Non-English content] 42 and half achieve [Non-English content] we are planning for the 50 million. Then COD will come. [Non-English content] complete [Non-English content]
Okay. I was trying to understand [Non-English content] in terms of the value unlocking [Non-English content] if one wants to see, for the investor going forward, that's the time that one can look at in terms of the value unlocking for the MDO whenever we want to plan that.
That's FY 2029.
Yeah. Got it. And sir, lastly, [Non-English content] this quarter [Non-English content CapEx and full data obviously [Non-English content ] standalone but just wanted the number and full year [Non-English content] less than INR 100 crore [Non-English content] that will remain the same.
Yes, the capital investment is same. Already quarter one [Non-English content] CapEx . [Non-English content] So, INR 100 crore [Non-English content] which come replacement CapEx against some important equipments.
Okay, got it, sir. Thank you and always.
Thank you so much.
Thank you. Next question is from Deepak Purswani from Swan Investments. Please go ahead.
Yes. Thank you for the follow-up, Ashith. I just wanted to confirm the INR 1.5 lakh bid pipeline which we mentioned. Which are the key verticals which are the part of this? Secondly, river linking segment as a whole, how we are looking at it? [Non-English content] And what are the incremental opportunities we are seeing in this segment at current juncture?
Most of the bid pipeline comes from the NHAI and MORTH. [Non-English content] 1.25 lakh crore projects already pipeline [Non-English content], road [Non-English content]. language] state-wise irrigation [Non-English content] projects [Non-English content]. irrigation [Non-English content] projects [Non-English content] river linking part [Non-English content]. river linking [Non-English content] identify project [Non-English content] . We are doing one project in the Rajasthan [Non-English content] dam [Non-English content] dam [Non-English content] connect [Non-English content] canal [Non-English content], by the gravity canal. That's also a river linking. So already the whole pipelines come from the vertical. Most of the roads, highways, tunneling, metro, [Non-English content] 11-12 sector [Non-English content ] lakh crore [Non-English content] pipeline bid [Non-English content].
Okay. And river linking [Non-English content] sir, specifically next two to three year side [Non-English content] [Non-English content] [Non-English content] ? project [Non-English content] only existing only [Non-English content] irrigation [Non-English content]
[Non-English content] pipeline [Non-English content] river linking project [Non-English content] distinguish [Non-English content] river linking already [Non-English content] bid pipeline [Non-English content] river linking irrigation projects [Non-English content] water [Non-English content] water scarcity connect already All the state governments are working on that river linking type of project.
Thank you. Sir, the line for the participant dropped. That was the last question. I would now like to hand the conference over to Rohan Suryavanshi for closing comments.
On behalf of the whole DBIL family, I'd like to thank all our investors, analysts, and friends who joined us and asked all the questions. In case you missed out on any of the questions, please feel free to reach out to our team internally or to the Adfactors team to understand whatever doubts you may have. I look forward to seeing all of you guys on our next quarterly call. Thank you for coming.
Thank you very much. On behalf of Dilip Buildcon Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.