Ladies and gentlemen, good day, and welcome to the Dilip Buildcon Limited Q4 FY 2026 earning 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 any assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Ashit h Salian from Adfactors PR. Thank you, and over to you, sir.
Thank you. Good evening, everyone, and thank you for joining us today to discuss the audited financial performance for Q4 and FY 2026. I have with me Mr. Devendra Jain, MD and CEO, Mr. Rohan Suryavanshi, Head, Strategy and Planning, Mr. Sanjay Bansal, the CFO. Before we proceed, I would like to bring to your attention that certain statements made during this 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.
Thank you, and good evening, everyone. On behalf of the whole DBL family, I extend a warm welcome to all our investors and analysts to our quarter four FY 2026 earnings conference call. The financial results and investor presentation for the quarter have already been uploaded on the stock exchanges, and we trust that all of you had the opportunity to go through them. I am very pleased to inform all our partners that this time we have prepared a new presentation format which simplifies how one should look at our company, given the new direction that we have embarked on. It talks about our past, our current status, and where we are intending to go into the future. It divides the company in three verticals, EPC, the MDO vertical, and the assets vertical. All these three verticals have different roles.
The EPC vertical is going to be the one building all the assets, while the MDO and the asset business will continue to give us long-term revenue visibility and profitability. The reason why we have moved in this direction, I have already enumerated in the earlier calls. However, it is very important for me to point out right now that this strategic direction is very important for everyone to pay attention to closely. Because by FY 2029, we anticipate 3/4 of our profits to be coming from long-term assets and only 1/4 to be coming from our EPC business.
That is the scale of ramp-up that will happen in our asset business and the cash flows and profitability that it will provide. Along with taking a lion's share in the profitability, it also is going to give us a visibility of the next 15 to 50 years of cash flow visibility.
As you are all aware, the EPC business only gives a visibility of two, three years. Having said that, let me now give you highlights on the broader sector environment before which I talk about the DBL performance. The infrastructure sector continues to offer strong long-term opportunities supported by sustained government focus on roads, railways, and other sectors that we are currently involved in. During FY 2026, the average monthly tendering activity for the overall infrastructure sector by national and state governments put together remained healthy at INR 1.4 trillion. However, this awarding activity was a little sluggish in terms of the initial FY 2026 target that the government had set. This was obviously on account of various state elections, regulatory scrutiny, and other administrative delays.
We remain optimistic about the sector in the midterm and the long term, given the government's continued focus on building assets across the infrastructure vertical. With all that positivity, there are also certain near-term challenges. The ongoing geopolitical conflict and the elevated crude oil prices have led to inflationary pressures across fuel, bitumen, transportation, and other key raw material costs, impacting margins across the infrastructure industry. In addition to this, the competitive intensity and bidding remains high in certain segments, while delays in project approvals, land acquisition, and receivable cycles continue to impact execution timelines. However, despite these challenges, we believe the industry is gradually moving towards a more disciplined and execution-led growth cycle. In this backdrop, we continue to focus on selective tendering by prioritizing high-quality projects with better margin visibility, balanced risk-reward, and strong counterparties rather than pursuing scale only.
We remain focused on maintaining execution discipline, strengthening operational efficiencies, and preserving balance sheet strength, which we believe will help us navigate near-term volatility while positioning the company to benefit from long-term infrastructure opportunities in India. Now, coming to DBL's business performance. Our performance this year must be viewed through the lens of the DBL 2.0 philosophy, which we have shared earlier and spoken about in the presentation. We have consistently communicated that our approach to order booking is selective. We are prioritizing profitability, cash flow visibility, and return ratios over pure top-line growth. Increasingly, we view our EPC business not just as a volume-driven profit center, but as a capital-efficient execution and incubation engine. This engine allows us to create long-duration monetizable platforms across diversified asset classes.
I am also very happy to report that for the FY 2026, DBL has secured total order inflows of INR 18,548 crore, which is much higher than our original guided figure. We have also communicated this, that we have exceeded that full-year order inflow guidance earlier, but quarter four 2026 has further added to it. Our order book today remains amongst the most diversified in the industry, providing strong visibility across multiple infrastructure segments without relying on any single one. Our current bid pipeline stands at INR 80,000 crore plus across sectors. With optimum utilization of existing assets and a disciplined approach towards capital expenditure, the company continues to enhance capital efficiency and deliver improved return on investments. Now turning on to our mining vertical, which is increasingly becoming an important driver of DBL's long-term earnings visibility and cash flow generation.
Our coal MDO operations have continued to scale up steadily during FY 2026, beating our own targets in terms of production and helping diversify a larger part of business away from the cyclicality of a traditional EPC business. At the Siarmal mine, quarter four production stood at 7.24 crore tons and cumulatively FY 2026 production stood at 22.35 crore tons, achieving full-year production target. Similarly, the Pachhwara coal mine continued its gradual ramp-up, with FY 2026 production closing at 6.37 million metric tons. On a consolidated basis, DBL coal production for FY 2026 stands at 28.72 million metric tons. We remain committed to achieving our annual coal production of around 57 million metric tons by FY 2029, which at its full capacity would represent a significant part of India's total coal output and positioning DBL as a critical partner in the nation's energy security.
As production scales up further, mining is expected to contribute meaningfully to the company's EBITDA generation and overall cash flow strength. Our InvIT strategy continues to progress in line with the roadmap we had outlined earlier. Following the successful listing of Anantam Highways InvIT, we currently hold about INR 1,400 crore worth of units in the Anantam Highways and around INR 200 crore in the Shrem InvIT, taking the total value of InvIT units on our balance sheet to nearly INR 1,600 crore. This has created a long-term platform for predictable distributions and structured de-leveraging for the company. We also remain on track to transfer the remaining HAM assets in phases through March 2027.
The next tranche of 11 assets is expected to require less than INR 200 crore of incremental investment, while generating InvIT units valued at around INR 1,800 crore, implying a net equity value creation of INR 1,500 crore -INR 1,600 crore. While I'm explaining these other sectors, I also want to take this opportunity to debunk some commonly held perceptions about the company, which we have also highlighted in the presentation. The first perception is that we have made significant revenues from our home state throughout our history over the past two decades. However, the data suggests otherwise. You would all be surprised to know that in the last 20 years, only 10% of the total revenue that we have made has come from the state government of MP, while 90% has come from national government and other states.
This is a very big important perception that I'm trying to correct, that we have been working mostly outside our home state rather than in our own state. Similarly, there has been a perception about our debt that has lingered since many years. Even though in the past, our debt might have been higher than our peer groups as we were in a CapEx cycle and in a growing stage, our debt position today is very comfortable. Besides that, we have significant assets against it, which was not the case in the past. Coming to our debt position, outstanding debt as of March 31st, 2026, stood at approximately INR 1,800 crore at the standalone level and INR 7,082 crore at the console level.
Now, the console obviously is because we keep building these new assets, and it's a temporary phenomenon where as soon as we build the SPV and those are completed, we either sell them or we're going to put them into our InvIT. So it's a temporary two, three-year thing that we are going to do. And it is all the future revenues of those assets are tagged against that. So it's a very safe investment from that perspective. Now, against our standalone debt of INR 1,880 crore today, we hold nearly INR 1,600 crore of InvIT units on the balance sheet. Had we chosen to sell all these units, our net debt would have been roughly INR 300 crore or so.
But because we decided that we wanted to build a platform where we have cash flows coming in for the next 15, 20 years, we have decided to retain them as we realize we are in a very comfortable position going forward and we have a very good order book as well. Besides these InvIT units, let me also point at two assets that we already have. We also have about INR 1,000 crore plus invested in under-construction projects, which will soon get transferred into the InvIT and generate additional InvIT units of, like I mentioned, INR 1,800 crore. Similarly, we also have a gross block of little as about INR 3,600 crore on our balance sheet, which translates into about an INR 800 crore of net block. Now these assets are all debt-free. These are all equipment that the company uses, and we have no debt against it.
So while our only working capital debt is shown, we have significant assets against all our debt. And more than this, as we have already said, our agenda is to be a net debt-free balance sheet by the FY 2028. We are very confident of this because of the continued cash generation from our EPC operations, our MDO operations, and the growing income from our InvIT holdings. So it's a clear pathway that we see. So overall, FY 2026, while it has been a relatively challenging year for the infrastructure sector, we believe it also marked an important transition towards a more disciplined and execution-oriented industry environment. Dilip Buildcon, with its diversified order book, our steady scaling mining operations, and a well-defined InvIT monetization platform, along with a continued focus on capital efficiency, we are structurally positioned much better than before.
As we move ahead, our focus remains firmly on disciplined growth, execution excellence, balance sheet strengthening, and sustainable cash flow generation. Supported by the long-term infrastructure opportunities in India and improving contribution from our own stable cash-generating businesses, we remain confident in our ability to create sustainable long-term value for all our stakeholders. With that, I would like to hand over the call to our CFO, Mr. Sanjay Bansal, who would like to take you through the financial performance for the quarter in greater detail. Thank you.
Thank you, Rohan. Good evening to all. I will now briefly take you through the key highlights and financial performance for the quarter and full year ended 31st March 2026. During FY 2026, the company added projects worth INR 18,548 crore and completed projects worth INR 2,812 crore. As a result, the company continues to maintain a healthy and diversified order book with strong execution visibility across multiple infrastructure segments. On standalone basis, the revenue for FY 2026 stood at INR 7,005 crore as compared to INR 9,004 crore in FY 2025, reflecting a YOY change of approximately -22.2% . EBITDA for the year stood at INR 734 crore against INR 903 crore in the previous year, representing a YOY change of - 18.72%, while the profit after tax stood at INR 841 crore as against INR 311 crore in FY 2025.
Now, on console basis, FY 2026 revenues stood at INR 8,984 crore as compared to INR 11,317 crore in previous year, reflecting a YOY change of -20.62%. The consolidated EBITDA stood at INR 1,766 crore with an EBITDA margin of 19.65%, while profit after tax stood at INR 1,398 crore as against INR 840 crore in FY 2025. With that overview, we are now happy to open the floor for questions. 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 touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hello. Thank you, sir, and congratulations on historic highest ever order inflow for us, INR 18,000 crore plus. Also good to see that the new presentation and particularly the MDO revenue profitability that you have said, which we were asking from. Now, couple of questions. First, on the MDO front itself. Now we will be sharing this on a quarterly basis, the MDO revenue profitability, what we have shared on the slide number 14?
Sure, sir. We will be sharing it on a quarterly basis. Thank you for your feedback. We understand you were asking for certain things, but strategically what the company felt that this was the right time now to talk in greater detail about how we are planning to go ahead.
Yeah. So couple of questions on the MDO front. Is it possible for us to kind of a broader thought process in terms of the, one can say, guidance in terms of the broader revenue and the margin, given we need to still do a whole handling plant CapEx for Siarmal. So obviously the depreciation will increase. So how one can look at after two years, maybe a profitability or margin at an MDO level. The related is, how we are thinking to kind of monetize this from the investor's perspective. So whoever holding DBL shares how they will get benefited through the significant profitability that we have and obviously the revenue visibility is significant.
Thank you, Shravan. I think that's a great question. Obviously, as any analyst, you would like to understand how this business will shape up and how the profitability and the revenues will shape up. See, the beauty about this business, it's a very simple to sort of project kind of business because every year by law, we are supposed to do a contracted value, and the pricing per ton that the government is going to pay for us is already set. Simply what you have to do is as you keep on expanding our volume that you're providing every year, if you just do a simple mathematical number that, okay, this year if DBL did this much.
So now Siarmal, you know that the rate is around, let's say, I think about INR 500 or so is the rate at Siarmal, and about INR 1,100 per ton is the rate at Pachhwara. So the simple math that you will have to do is just do it a multiple into how the next three years, because by FY 2029, we will achieve full year target of 50 million metric tons at Siarmal. While Pachhwara is already working at the same 7 million metric ton s per year. Now, if I talk about FY 2027, we're expecting about 33 million, 35 million or 30 million or-
13 million something.
13 million plus in that.
[audio distortion]
Similarly, the year after that, we are targeting upwards of 40 million at Siarmal. Then 50 million, like I mentioned, in the fifth year. Pachhwara, like I said, will be same. Pottangi in the next three years, we will be setting it up. Again, that is for contract. We have defined how much we will be doing in the next three years, earlier in our earlier presentation as well. So the mining plan will be kind of flowing through that way only, with the EPC business and the mining business will flow in that. So put together, I think it is a safe sort of way assumption to take that you take similar profitability for your sake of making the model. That could be how you can sort of do the mining sort of revenue separately and how the profitability will look. [audio distortion]
Hello?
Yeah, sorry. What we anticipate in FY, so from the current INR 1,600 crore of revenue in this year, we expect revenue to increase to about INR 2,500 crore or so in FY 2027, which will further increase to about INR 3,000 plus 100 crore in FY 2028. Eventually, I think in FY 2029, we should be somewhere in the range of around INR 4,000 crore of revenue coming from this sector. So that is how it will kind of play out if we were to do just the simple math of the multiplication of the total tonnage and the rate that we are at. So that is how it will work out. Coming to the second part that you said. See, all these are subsidiaries held completely under Dilip Buildcon, and obviously, we would want to ensure that our shareholders always get maximum returns.
So at an appropriate time, if we feel there is a certain way which will help us extract a greater value from all these assets that will be functioning at their peak capacity, we will take that call. Currently, we have no such agenda to apprise the market of.
Got it. Sir, second question on the InvIT part. You have mentioned that currently we are closely. It is having INR 200 crore InvIT in the Shrem and the INR 1,600 crore, INR 1,400 crore in the Anantam. Put together INR 1,600 crore and after maybe INR 200 crore investment, we will be getting INR 1,800 crore more. Roughly INR 3,300 crore InvIT value that we will be having maybe a two year down the line. There in presentation last time, we were kind of on the distribution from both Anantam particularly. That number was on the higher side, INR 421. Now that number is on the lower side, INR 350 or then in 2029 it is coming INR 386.
Just wanted to understand, is there some understanding that now we will be getting a lesser dividend or whatever the return on the equity or the InvIT that we are holding?
As far as the InvIT units value is concerned, you are right. After 11 assets further divestment to InvITs, that kind of InvIT units holding will be there. But at the same time, you must appreciate that the timing of transfer the assets to InvIT changed in FY 2026. And in 2027 also, we will be transferring four assets in quarter one and then balance in quarter four or quarter one of FY 2028. So basis that the cash flow from the distribution is with us in the slide number 24 shown in the presentation.
Okay, got it. Now, sir, on the standalone part, the broader guidance number, just wanted to recheck. On the standalone front, the revenue for FY 2027, EBITDA margin, order inflow, how much we are looking at CapEx and also if you can help us in terms of the net debt. You were saying that by FY 2028, we will be net debt free. But in FY 2027, how much one can look at to a reduction?
Shravan, as I mentioned earlier as well, FY 2027 revenue target from, if we look at FY 2026 numbers, I had mentioned it will be a 30%-40% growth from this number. We are in line with that because we have the order. The order book is very healthy right now at almost INR 28,000 crore. We are very confident of the revenue that we should be able to get. That is where the revenue number would be at. In terms of our EBITDA, we are targeting that same 11%-12% EBITDA that we have mentioned. That will be in line with that. More than that, we are also targeting about INR 10,000 crore-INR 12,000 crore of new order inflow to come in this financial year, which will provide us good visibility extending up to FY 2030. That will be there.
Similarly, you also asked us about the debt, how much we are anticipating to reduce in this financial year. We anticipate somewhere between INR 600 crore-INR 800 crore of debt will be reduced in this-
[audio distortion]
In this financial year. Already from last quarter, we have reduced about INR 250 crore-INR 300 crore of debt already, and we anticipate going forward in the next two years, like I mentioned, we should be where we are at, near net debt zero kind of numbers.
Yeah. Thank you, sir. I have more questions will come up in queue. Thank you and all the best.
Thank you, sir.
Thank you. A reminder to all participants, you may press star and one to ask questions. A reminder to all participants, you may press star and one to ask questions. Next question is from the line of Vignesh Iyer from Sequent Investments. Please go ahead.
Hello. Hello, sir. Thank you for the opportunity. My first question is actually related to the investments that we are going to make in the renewable energy and the transmission segment of it. I was looking at the slide number 24 on our PPT, where I see that equivalent to INR 50 crore for solar plus another INR 39 crore and then transmission for INR 35 crore investment is what we are planning over the period of next two years. Firstly, I wanted to understand the structure around this investment in a manner like what is exactly the structured equity, from acquirer for transmission and solar that is stated separately. Would it be more like an SPV floated in partnership?
Sorry, can you come closer? Your voice is breaking.
Hello.
Sorry, your voice is breaking. Vignesh, your voice is breaking. We can't understand very clearly because there's some problem in the network.
Hello. Am I audible now?
Yeah, you're audible now.
Sorry. My question was again on the solar and transmission business, where we have decided to commit certain X amount of funds over the period of FY 2027 and 2028. So I wanted to understand the structure of this investment. Firstly, on the part where you are stating in slide number 24 that structured equity from acquirer for transmission solar, a certain amount is given. What is it exactly? I want to understand the structure behind that. Secondly, I wanted to understand what would be our equity commitment and what would be the expected IRR on this project.
Basically, the idea of Dilip Buildcon in transmission and solar is to raise around 85% equity commitment to these projects from the investor who will be putting in equity during construction. The commitment from DBL side would be 15% of the total equity requirement in these projects. In terms of EBITDA margin, in transmission, it is upward of 24%, and in solar. Sorry, you asked about IRR. IRR would be high teens in both the projects.
Okay. If I understand it right, for these projects, would you be floating a separate SPV where any fund-raising would be done? Or how is it? That is the structure I was basically talking about.
Basically, I said the acquirer will put in equity directly into the project cost. Transmission SPV, the potential acquirer will put in direct equity to the SPV of transmission and similarly in solar.
Okay. Got it. My second question on this is on the coal business. I heard you earlier regarding the MDO business where you gave a stated guidance on how you see the picture moving ahead. Wanted to just understand how do we see this business from the margin point of view majorly, especially in quarter four, I think the margins have come down a bit. Versus how do we see this margin going forward for the next three years to our stated target in FY 2029? Would we see more like a fixed percentage of margin coming in? Or as we scale up, would we see that operating leverage playing in it?
Sir, thank you for your question. The margin that you are talking about that has come down in the mining business temporarily right now is primarily because the evacuation by the government could not be done on time. There is at the Siarmal mine, right now we have about 6 million metric tons of stock which is lying at site because of delayed evacuation by the government and because of unavailability of racks. Otherwise, production from our side was doing well. These are temporary issues. We expect this to normalize with the government taking a keen interest in ensuring that all the supply chain logistics are worked out. We expect in the mid to term, this will all normalize. Long term, if we talk about the margin profile, you are very right.
There will be economies of scale that will play out as we work at peak capacity as our coal handling plant comes online. There is also a kicker in the contract where once the coal handling plant comes online, we will be entitled to a higher revenue share. All those things will add to a sweetener much later. However, we are just saying when you are looking to build your model, you can build it conservatively around these numbers and understand how this business will flow. We are confident that as scale hits and as we also complete our coal handling plant and hit COD, the margins will meaningfully improve.
Okay. If I have to see just from the numbers, first quarter FY 2025 blended, the margin was around 26%, now it is 23%, and quarter four, because of one time impact has led to a lower margin. It would be fair to say that 24%-25% is a more stabilized level of margin and any economics of scale that come after this would add on to the margin that is in place. Correct?
You are right. That range is the right range to take and there will be improvement on that. Yeah.
Yeah. Got it. That is all from my side and I will get back if I have any more questions. Thank you.
Thank you. Next question is from the line of Sanjay Parekh from Sohum Asset Managers Private Limited. Please go ahead.
Yeah, thank you to the team. I just wanted, as we move to 2029 and 2030, what are the annuity streams of revenue, if you can broadly for each of the segment, you can explain, that is one. Secondly, particularly the renewable project, while my colleague asked, but where are we? Because I think these are short tenure projects, so what is the status? A little bit on the payback and the structure equity. Again, I just wanted to understand that of the equity portion, 15% will be put by us, 85% will come as equity, but they will be given debt returns. Is that the way and who could be the potential investors here? So that is a little more granular understanding of that project. When do we start and when do we complete? That will help me.
Sanjay, thank you for your question. I think you asked a bunch of questions. Let me start with the last bit that you were saying. So the transmission and the solar project that we are doing, the larger strategy for us, as we mentioned earlier, that we want to build different asset classes. Just like what we have done in the road sector, we want to build it in other sectors as well, whether it is water, whether it is transmission, whether it is renewable, whether it is oil and gas, we want to do it across. But having done that, we have also promised the market that we want to be a debt-free company by FY 2028.
While our larger goal long-term remains to create different platforms, short-term, we also realize the reality that if we invest all our free cash in equity, then we won't be able to achieve our goal of being a debt-free company by 2028. The model that we are going to do in between right now is that whatever these assets that we're building, we will build these assets, make our EPC margin, and we are looking to divest these assets at an earlier stage, and find an investor right now also so that we attain our short-term goal of 2028 being near net debt-free. That is why we are looking for investors currently in these assets.
Now, two years down the line, when I'm completely debt-free, when I'm doing these assets, I will look to hold on because we will have significant amount of free cash flow coming from our mining operation, from our inward operation. My thing would be at that time, see where do I deploy this capital, which not only gives a greater return for my investors, but also gives us EPC business. That will be the long-term goal that we have. I hope the strategy that the company has is basically on the short-term, why we're doing this finding a buyer right now is clear because we want to also be net debt-free and not put all our equity into building these assets and then sell it completely at that one time. Hence, this methodology, the via media has been adopted right now. That is the goal.
The structure that you are asking, it won't be like any investor who is coming in, it won't be a near debt kind of return that they'll be looking at. They'll be looking at, obviously, a more higher return than that. We will be structuring to see how both their sort of aspirations and our goals can meet, and we can find a common way between both of them. That will be the idea and the goal for us.
Understood.
Those discussions are ongoing. Obviously, I'm not at a liberty to talk about any names and what it is. But I'm sure we'll be able to give you better clarity and good news on that in the coming short-term only, because those discussions are going on, and we will give you better clarity going forward.
No, it is very helpful, Rohan. Only one thing, Rohan. Here, the structuring of this, the debt portion will be dependent on the structure, right? Just to understand. The structure has to be in place for you to get the debt for the project.
Sir, the SPV has already been formed. All the SPVs have been formed. Now,
Right.
The equity and debt that has to be put in them, all of them have also been defined already. That how much equity and how much debt will go in each, that has been defined. We have also gone to the lenders with that same structure. Okay, that this is the equity that we will put in, and this is the debt that we will need. We also have in-principle approval from lenders for all the projects that we are talking about. So we also have that. So all that process is done. Now, the equity, let us say in solar, about INR 1,200 crore of equity, and in transmission, about INR 400 crore of equity has to go.
Now, what we are doing is, of the INR 1,600 crore of equity, we are looking to find a solution that 85% of the capital that has to be invested as equity comes from the investor, while 15% is put by own DBL's own balance sheet. So essentially, the cash that then gets, the free cash that is generated at the company level goes and reduces my standalone debt. So that is the goal. Because in these two areas, right now, we do not have an InvIT. However, for the road, we already have an InvIT. We already have an InvIT platform. We already have units that we are holding. So we would not want to let go of all those finished assets right now, but rather do this because this is not a ready platform that we have.
We are open to selling it completely also at this juncture, just to, like I said, achieve our short-term goal of being a near net debt company by FY 2028.
Perfect. This is very helpful. What is the commissioning deadline for this? Is there any commissioning deadline?
Two years. Two years.
Two years from April 2026?
Yes. That is broad line. Whenever we start the first two years from there it will go. From the letter-
Okay.
Yeah. LOA . Yeah.
Perfect. Thank you very much.
Thank you.
Thank you. Next question is from the line of Subhankar Ojha from SKS Capital & Research. Please go ahead.
Yeah. Hi. Thanks for this. Sir, just quickly, in terms of how many more assets to be transferred to this Anantam InvIT, and by when this will be done?
Sir, we have 11 more assets to be transferred into the Anantam InvIT, the road assets that we are talking about. This will be happening gradually through this year and by first quarter next year is what we are expecting.
How much more equity, I mean, how much investment you will have to put in for these assets to be completed and transferred?
Sir, for the 11 assets in total, it is less than INR 200 crore. INR 169 crore to be exact right now, which is there on the presentation.
Okay.
Slide number 24, you will find it there.
Okay. Once this is transferred, by next year, quarter one, what will be your valuation of those?
Sir, about INR 3,000 crore-INR 3,300 crore each way. That will be the total InvIT value that we will have, including the seven assets that we have done and these 11 that will go. Again, the total 18 assets that we have, that we will be putting in the InvIT, we will have InvIT units worth between INR 3,000 crore -INR 3,300 crore.
Here you have INR 3,300 crore and the other one is INR 200 crore.
Yes.
That INR 200 crore is there, and you do not have any further increase of value in that range. Is that right?
No, it will be the same, sir, because it is an InvIT unit. Those units are there. It is giving us dividend income.
Yeah. It is about INR 3,500 crore plus in your ownership of assets in these two.
Yeah, somewhere in that range, sir. This will obviously, all these are dependent on the finals number, because there is always change of scope that happens at the project level. The government is not able to give us all the land at times. So the final BPC value obviously always determines. These are obviously broad strokes that we are telling you.
I see. Great, sir. In terms of the, obviously you have talked about it in terms of your payment from JJM last quarter.
Yeah.
What is the status now? Do you have any further payment to be received from JJM and-
Payments are regular. Monthly payments are happening there. We do not have any holdup there. That was earlier in the year that had been there, but there are no holdups on JJM payments.
Good. Thank you.
Yes, sir.
Thank you. Next question is from the line of Ishita Lodha from SVAN Investment. Please go ahead.
Thank you for the opportunity and congratulations on a very strong order flow, much better than the other industry peers. I have a few questions for the CFO, sir. As per slide number 33, the receivables have increased from INR 1,384 crore as on March 25 to INR 1,783 crore as on March 26, despite 22% decline in revenue and the funds that were brought from Jal Jeevan Mission have been released. Can you please explain this?
Basically, there are two types of payments from Jal Jeevan Mission. One is basically regular bills, and one is basically the final amounts. Jal Jeevan Mission, the last 10%, which is basically uncertified one, which will be paid once we will do the last hydro-testing. That INR 400 crore will be paid once we will do the hydro-testing. Basically, it will happen partly this quarter and partly next quarter. The increase in receivable from FY 2025 to FY 2026 is mainly on account of this INR 400 crore receivable from the uncertified from the Jal Jeevan Mission projects.
Okay. And given the debt reduction target of INR 600 crore -INR 800 crore in FY 2027, what is our expected interest outgo from the cash flow next year?
Basically, if you can see, this year also, we reduced around 11% interest costs. Next year, the interest cost with the reduction in the net debt, we feel the total interest outgo would be close to between INR 375 crore -INR 400 crore.
Okay. I heard in the opening remarks that the order inflow is INR 18,500 crore. But if I do the back of envelope calculation, taking closing order book of INR 28,800 and opening order book of almost INR 15,000 crore, an execution of INR 7,000 crore, the implied order inflow comes to INR 22,000 crore. The differential of INR 2,400 crore is a change of order or the order inflow that you received across FY 2027?
Madam, you can see, let me tell you the slide number and remark below the slide number. Because the INR 18,550 crore order book order is from third parties, whereas we have orders from our coal business. We add the coal business-
Next three years.
Next three years order book, and every quarter is changed because we are in the phase where the volumes are increasing. Every quarter there is addition. Just see the note on the slide number 18.
Okay. Understood. Sir, what is the distribution income from Shrem and Anantam that was included in the standalone other income in FY 2026?
[audio distortion] Total dividend and interest income during FY 2026 from both the units are INR 64.5 crore, and the distribution was higher. The total distribution was close to INR 100 crore.
Okay. With respect to also in the opening remarks, it was mentioned that bitumen and raw material costs have increased due to the crude oil price impact. Can we pass this on entirely? What is the impact on our margins?
Basically, for every contract, there is an inflation formula from which we get the impact of the increase in pricing of this raw material or the items. But this formula may not give you 100% increase because you can see the increase in the HSD and bitumen prices sharply. But the formula gives partly adjusted through the formula. But the balance is impact on the margins. You can see some margin impact on coal business, where HSD is the major cost. There will be some impact.
Okay. Thank you. That is it from my side.
Thank you.
Thank you. Next question is from the line of Vishal Periwal from PL Capital. Please go ahead.
Yeah. Thanks for the opportunity. Sir, in terms of interest cost, though you did clarify how you see the projection next year. But if I look at FY 2026, interest costs have gone down. But debt level has seen an increase. Absolute level basis.
Basically, let me tell you at the standalone level, yes, interest cost is reduced by 11%, and that is mainly because of the reduction in the cost of debt. Basically, the working capital cost of debt is reduced significantly. On WCDL, the interest rate reduced by almost 125 basis points. That is the impact on the interest cost.
Okay. Because our revenue has also declined, so maybe, probably mobilization advance or, I mean, the interest cost linked to that, it will have certain bearing on the revenue.
Yes, you are right. Partly the impact of the lesser mobilization advance as well.
Yeah. So maybe next year when we are targeting a growth, interest cost, I mean, as an absolute level, do you see it will reduce? Reason is, in terms of the outflow equity tracker that you have mentioned, because there is a shortfall around INR 250 odd crore. Short-term debt could see an increase. Revenues are increasing, and interest for absolute level it could see an increase. So is that fair to understand or probably I'm missing?
Basically, if you heard Mr. Rohan in the opening remarks, he said this year, basically by March 28, our target is to make this company debt-free. This year we will be reducing close to INR 600 crore-INR 800 crore debt gradually. The primary impact of interest reduction in absolute terms would be from this debt reduction.
Okay. Got it, sir. I think that's all from my side, sir. Thank you, sir.
Thank you. Next question is from the line of Vignesh Iyer from Sequent Investments. Please go ahead.
Hello.
Mr. Iyer, please go ahead.
Yeah. My question is, I wanted to understand on our standalone EPC order book. I wanted to understand the part where, due to the ongoing war, there has been RM escalation. Do we have a clause in place for pass through of this escalation of raw material? Or how is the arrangement for us and whichever order we have got?
Sir, obviously, whenever there is such a sudden spike or increase in prices, no contract will ever protect you against that because government contracts are linked more towards the WPI and CPI index, and does not take into account these things. So it is not completely passed through and we will be facing those challenges as well, as will the rest of the industry.
I guess the saving grace here is the government is aware of this issue, and we as a federation, the National Highway Builders Federation, we are also talking with the government about these issues, and we are trying to see how this blow can be softened. Hopefully in the coming days, there should be some kind of resolution that could do. I do not think and know that everything can or would be protected, but there will definitely be some kind of respite that we hope that the government will step in and do.
Right. Sir, could you share what is our cost of borrowing for our?
Our cost of borrowing, around 9% on average basis.
Okay. That's all from my side.
Thank you. Ladies and gentlemen, that was the last question of the day. I now hand the conference over to Mr. Rohan Suryavanshi for closing comments. Over to you.
On behalf of the whole DBL family, I thank all of our partners who came and joined and asked questions. I think please do go through our presentation in detail because we put significant thought in terms of designing it for you guys to how the future of the company will pan out, and I think that might be very useful for an investor looking at how the company will shape up. Thank you very much and I look forward to seeing all of you guys for our next quarter call.
Thank you. On behalf of the Dilip Buildcon Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.