Ladies and gentlemen, good day and welcome to the Dilip Buildcon Limited Q2 and FY 2026 earnings call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. I now hand the conference over to Mr. Gautam Jain from Dilip Buildcon Limited. Thank you, and over to you, sir. You are on mute, sir.
Yeah, thank you very much. Good morning, everyone. Welcome to Dilip Buildcon Q2 FY 2026 earnings conference call. From the management we have here today, Mr. Devendra Jain, Managing Director and CEO, Mr. Rohan Suryavanshi, Head of Strategy and Planning, and Mr. Sanjay Kumar Bansal, Chief Financial Officer. Before we proceed with the call, I would like to mention the standard disclaimer.
The presentation that we have uploaded to the stock exchange, including the interaction in this call, contain or may contain certain forward-looking statements concerning our business prospects and profitability, which are subject to some uncertainties and the actual results could differ from those. Now, I request Mr. Rohan to take us through the key remarks, after which we can open the floor for a question and answer session. Thank you, and over to you, Rohan.
Thank you, Gautam. Good morning, everyone. On behalf of the entire DBL family, I welcome you all to this conference call. The results and presentation have been uploaded to the stock exchanges, and I trust you've had a chance to review them. To provide a brief overview of the industry, we've observed some positive developments in terms of order activity.
It is still lacking the momentum that we expect, but then usually first half is always lighter and the second half is when the momentum really picks up. In the road sector, NHAI has awarded 300 kilometers of orders up to date this year, which is just 5% of the overall target of around 6,000 kilometers that they want to do.
In the past few months, we are witnessing good progress in the balance 124 projects of over 6,000 kilometers, which is valued around INR 3.5 lakh crores. Based on these, we are hopeful to achieve significant traction in quarter four of this fiscal year. What is also very heartening is that the government has increased the qualification criteria, which has led to reduced competitive intensity.
This increased competitive intensity was what had caused significant damage to the industry and I think the government has finally woken up to that because progress and quality has both suffered.
In the water distribution sector, particularly with the government's flagship Jal Jeevan Mission, the government has extended the execution timelines to 2028 in the last budget. Similarly, in the metro rail sector, there are plenty of new projects in the planning and approval stage.
The aim is to improve last mile connectivity, support urban growth, and offer cleaner, faster, and more inclusive public transport across emerging and established cities. Some of these upcoming projects are Pune Metro Rail Phase 2, Delhi Metro Extension, Ahmedabad Metro, Bangalore Metro, Water.
These are different projects across different cities. From our perspective, we have the highest level of PQs in all these growth segments, a strong balance sheet, our own equipment fleet, and a proven track execution record.
We will continue to work in all these areas and the areas that we have expanded into already. Now focusing on DBL's performance in the last quarter. I am happy to report that out of our total guidance of order inflows of INR 15,000 crores, we have successfully managed to secure orders of around INR 5,500 crores in the year to date.
This has been despite a challenging environment where NHAI ordering has been weak till date. However, we are very optimistic to achieve the total order inflow of INR 15,000 crores on a full year basis, which will set a good pace for next year revenue growth.
As a business development strategy, we continue to remain committed to our long-term strategy of profitable growth, which obviously has resulted in lower order book in the past 2 years, where multiple headwinds were prevalent, such as lower ordering activity and intense competition.
However, we are optimistic about the market scenario in the long term, and we had utilized this slow period as an opportunity for strategic refinement, where we reduced cost, optimizing resources, and cutting CapEx.
From a peak of 38,000 employees when COVID hit to now about 18,000 employees, DBL has made significant cuts in its own employee fixed cost. However, revenues have continued to be in the same range. Similarly, we have also reduced and almost brought to a nil our CapEx, which was earlier INR 500 crores range every year to now INR 50-INR 100 crores, and that too only going in smaller and replacement CapEx.
In our HAM project portfolio, I am also delighted to inform you of our own InvIT in partnership with the Alpha Alternative Fund named Anantam Highways, got listed on the NSE in October 2025. From DBL perspective, it is a landmark achievement and a long-term dream as this platform will provide some monetization source, literally on a tap basis for all the projects that we do.
And will also provide our investors with comfortable way forward on how our assets will move from DBL to another buyer. As of now, 7 assets of the total of 18 assets have been transferred to the InvIT. The balance assets will be transferred in the next 2 years based on execution timelines. In all balance projects, the execution is progressing as per the contractual schedule.
Now, on our coal MDO operation, I am happy to report that we are progressing ahead of schedule. In our Siarmal MDO, we have achieved a sales volume of around 10 million metric tons in first half of FY 2026, and we are on target to meet our full year target of 25 million metric tons for the full year of FY 2026.
Similarly, our Pachhwara MDO has achieved 3.6 million metric tons in H1 FY 2026, positioning us well to reach our full year target of 7 million metric tons for FY 2026. In total, we will achieve a production of 32 million metric tons of coal in FY 2026, putting us in the league of one of the top producers of coal in the country.
This trend will keep on increasing in the next few years, as will the profit. We are expecting to do 57 million metric tons of coal by 2029, which will be in both these two mines, which will total to almost 8%-9% of the total coal output of the country. Along with this, we are also looking at other projects and whatever we are able to secure, we will keep our partners and investors updated.
Now, towards our vision for DBL 2.0, we are still committed to becoming debt-free at a standalone level. Although it has been delayed, let me talk about why that has happened. It has primarily happened due to the steep reduction in order inflows in the past two years, which in turn has led to reduced revenues and reduced free cash flows for the company.
As you are all aware that DBL prided itself on its in-house fleet and people. Our current capacity gives us the capability to execute INR 10,000 crores plus of revenue easily, which is our optimum scale of operations. That is what we have done in the past as well.
However, in the past two years, with the multiple headwinds that I spoke about, we have been suffering from a lower order book because of which we have not been able to achieve our revenue optimum number. These external factors have obviously impacted our cash flows, which has led us to not being fully able to deliver on our debt reduction commitments.
We had originally promised that this year we will reduce INR 500 crores of debt. However, in the current scenario, it has increased a little bit, but by the end of this year, we will come to the same number as last year, which is around INR 1,500 crores of debt.
This is happening because even our revenue guidance which we had given for earlier of INR 8,500 crores for this year is getting reduced further as the pace of project which we expected has not come in terms of new orders. So we are expecting now our full year's revenue guidance to be only around INR 8,000 crores.
Obviously that will result in reduced EBITDA and reduced cash flows, which leaves us unable to fulfill our debt reduction commitments. However, the new orders of this year, which will be around INR 15,000 crores, like I mentioned, will end up leaving our next year revenue for around INR 10,000 crores. At that number, when we get that, we are sure that we will reduce our debt by another INR 500 crores, which will be around INR 1,000 crores in FY 2027, once we complete that.
In total, the good news is that the worst is over. We have a good order book pipeline. There will be a significant jump in next year revenue as this year revenue is coming down. We will be able to generate good free cash, which will help us in reducing the debt.
Our commitment remains on track even if slightly delayed, because as a policy, the management has decided that we will remove all standalone debt, and that is the way forward for us.
On our two long-term revenue generating business, the coal MDO and the HAM portfolio, we are progressing very robustly. We will see full cash flows coming from both the Anantam InvIT and coal. These are predictable cash flows, a more balanced risk profile, and in turn help us improve our return ratios.
Now also in the EPC business with the uptick in order inflow, this growth engine will also start firing and support in the overall growth journey of Dilip Buildcon. As I mentioned before, evaluating Dilip Buildcon from a consolidated perspective is essential to fully appreciate our various business verticals, our nuances, strengths, performances, and potential.
The last bit that I would like to inform all our participants and investors here is that we have also continued our diversification journey and entered into another new area, which is solar energy.
Renewable is also going to be one key area for the company going forward. We won a 100-megawatt project already, and we are hopeful to secure another 1 gigawatt of solar in the two coming year or so. With that, I would like to hand over the call to our CFO, who will provide a detailed overview of the financials.
Thank you, Rohan. Good morning, everyone. I welcome all our stakeholders to our earning call. Let me present the results for the quarter and half year ended September 30, 2025. During FY 2026 YTD, the company completed three HAM projects aggregating to INR 2,700 crore, and the company secured six projects aggregating to INR 5,665 crore.
Now let me move to business to financial performance. First on standalone performance. The revenue in the second quarter remained at INR 1,417 crore, and on first half, it is INR 3,427 crore.
As far as EBITDA is concerned, in quarter 2, the EBITDA margin increased by 60 basis points to 10.80%, and in absolute terms, INR 153 crore. On a half-yearly basis, the EBITDA margin is 10.40%.
EBITDA in absolute terms on the first half is INR 356 crore. At the PAT level, first three months, the PAT, profit after tax, remained at INR 41 crore. And first half basis, it is INR 164 crore. From standalone to console, the revenue remained at INR 1,926 crore, and first half basis it is INR 4,546 crore.
EBITDA margin for the second quarter is 24.5%, which is INR 471 crore absolutely. And on first half, the EBITDA margin is around 22% for the console and absolute terms it is INR 991 crore. Profit after tax for quarter 2 is INR 214 crore, and for the first half it is INR 485 crore. Net debt has increased by around INR 500 odd crore. This is mainly due to the faster payment to the creditors.
The company creditors reduced by INR 450 crore. This is the only reason the increase in debt from March to September. With this, I now open the floor for questions and answers. Thank you.
Thank you very much, sir. Ladies and gentlemen, we will now begin with 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 handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Shravan Shah from Dolat Capital. Please go ahead, sir.
Hi, sir. Thank you. Sir, a couple of questions. So you have already highlighted that now we are looking at INR 8,000 crore revenue this year and next year, INR 10,000 odd crore revenue. Just to understand the current INR 18,600 odd crore kind of order book is there, how much value of projects, where the AD is pending or the work has not started? And when can we expect whatever the balance AD is there?
Shravan, sir, the AD is pending for all the new projects that we have just won, which we are expecting the AD to come by Q4 at max.
Okay, by Q4. On the order inflow, another 10,000 odd crore, kind of 9,500, 10,000 crore. That primarily we are looking at from the HAM perspective in the road space. There also, if you can, because that's the one pain point for the entire industry. Just wanted in this view, do we think that the NHAI can award, and how much in terms of kilometer or value of that also, if possible. Where do you see in terms of the HAM would be and maybe toll projects?
Shravan-ji, even if you look at our current order book, orders that we've won in this year, they're all from very diversified sectors, from an industrial corridor to road to irrigation to metro to solar.
So we're doing across the thing. The same trend will continue even going forward. We will have all the different sectors giving us different orders. The new one that I mentioned is solar. We're expecting good orders to come from there as well. If you want to know what is the NHAI and MoRTH pipeline, is that what you are keen on knowing right now?
No, pipeline is there, but in terms of how do we see the kind of a confidence that how much you think that awarding rates is likely from the NHAI perspective, and that too, how much would be the amount of kilometer and the value and in terms of HAM and toll.
Sir, if I talk about the total bids, about 160,000 right now only which is there, which is both HAM and BOT project, everything. That much is already there. Now, we are very confident about doing good here, but our agenda is to get profitable projects. We will not be going and winning something at a stupid rate.
The good part is because of the government's new qualifying criteria, competitive intensity has reduced. We're expecting to win good orders there also. If all goes well, we might exceed that INR 15,000 crores of order inflow guidance that we have for ourselves.
But even if not, we are very confident that there is enough of projects available across all the sectors that we're working in for us to achieve that INR 15,000 crores. There are some more projects that we expect to materialize over the next few days. I think that will also give us a good idea of the pipeline that is being built by Dilip Buildcon.
Till now, how many value of projects we have already bidded and where bid is yet to open?
About INR 15,000 crores we have bid for right now.
Got it. On an EBITDA margin front of 11 odd percent, that will be there for even second half and for next year also?
Next year. This year, that will be around INR 10-11 max because of the reduced sort of revenue. As I mentioned earlier also, our fixed costs and all that, if we are unable to do the revenue that we expect, it obviously eats into our margins.
Even if we have reduced our costs drastically over the last three, four years where I mentioned reduction to almost 20,000 people have been reduced out of 38,000. More than half have been reduced. Equipment, you've seen the CapEx has reduced significantly. The gross block has continued to remain in that range while the net block has been coming up.
Our focus very much is only on making sure that our return ratios improve, that we do not increase in debt, and that we keep reducing it, and that we are able to execute the most that we can efficiently through our people.
Got it. Sir, in the solar, when we say that we want to have a 1 gigawatt of award in next two years, just wanted to understand. This will also will be a BESS also, battery storage will also be there. There obviously we need to put in the equity. In that sense, how much are we in terms of looking at, in terms of the equity investment there, whatever the projects, 1 GW that we are planning to win.
Over next four, five years, that will translate to how much kind of equity that we'll need to invest. There, do we see that in terms of the IRR level, can we see a 13-14% kind of equity IRR or that also depends on the kind of market is so dynamic on the battery pricing front. Once you get the project and once you go for actual there, is there a scope of further in terms of the pricing going down on the battery front?
Sir, very interesting that you asked a very detailed question around it. Our agenda for the solar, and let me give you idea why Dilip Buildcon is looking at that sector. We mentioned that our stated goal is to build more consistent long-term cash flows. While we do that, Dilip Buildcon is known for its execution capability.
Solar projects are much less complex, and sooner execution timelines as well than any of the other large infrastructure projects that we take on. The good part is now that once we build these projects, we have a way to monetize it through an InvIT platform.
There is one InvIT platform which is already there. If this on its own becomes a large enough thing, who knows, we might come up with another InvIT platform very specifically targeting energy sector. You ask about equity.
Equity, we already have partners who are committed to investing in this along with us, as their interest also lies in creating platforms. Just like the road platform that we've created, we would want to create more platforms because these are all 25, 30-year projects, where long-term investors can come in and participate in the growth journey of the country.
The energy needs are only going up, and with the advent of AI, data centers, electric vehicles, the energy needs will continue to go up, which is why we want to be participative in this whole process.
Which is why we are looking at renewable space. That's the broad idea for why Dilip Buildcon is doing this. Equity, like I mentioned, commitments are already there. In terms of IRR, we target broadly mid-teen IRR returns from here.
Now, obviously once we flip an asset into an InvIT, there are 2, 3 areas where we look at. Number 1, the EPC margins that we make, that is also IRRs for us. Then the equity that we have committed, what is the IRR that we get on it, straight up what we make.
Then secondly, when we flip it into an InvIT or when we sell it, what is the IRR that we make? That is where we'll do. Our focus, like I mentioned, is on cash flows, and we will continue to remain focused on our return on capital employed on every project.
Even if you look at our strategy in the coal MDO and the InvIT strategy, we have demonstrated that the InvIT assets, the amount of money that we had invested in the road assets, even if you look at it currently in the Anantam InvIT, we have about 1,200, 1,300 crores of InvIT units there.
INR 1,200 crores.
Valued at INR 1,400 crores or so. If you look at the total value enhancement that has happened from the equity invested in those 10 projects, I think the total equity invested was about-
Ninety-five.
Ninety-five.
We realized INR 1,050 crore in cash.
Earlier we have already done that, then there is this additional. There is a significant. I think INR 950 crores cash of investment has transferred into INR 2,200, INR 2,400 or INR 700.
INR 700 crore in all. One asset remained.
Yeah. So above INR 2,500 crore of total value addition for Dilip Buildcon. So that is the idea that we want to create value greater. What this will also do is, if you look at my consolidated balance sheet, our idea is more than three-fourths of our profitability should continue to come from long-term sources.
While EPC will continue to fire, but year after year, our profitability, even if not in terms of revenue, but in terms of profitability and the amount of free cash that Dilip Buildcon is generating, 75% plus will come from long-term assets.
That is the goal for us as a company. Because we are in a cyclical industry, whether the cycle is up or down or whatever is happening, we want to continue remaining as however risk we can reduce, that is the goal.
Thanks for the detailed answer. Just one clarification on the net debt as per the presentation is INR 2,102, but if I look at the gross debt minus the cash, that number is significantly lower, around INR 325 odd crore difference is there.
So can you help us in terms of where the cash is? As reported, the cash shows around INR 67, INR 68 odd crore. Where is the balance to the INR 30- INR 40 odd crore cash? Is there on standalone I am talking about?
Shravan-ji, the net debt is INR 2,102 crore, which is given in the presentation. One, just a second.
Yeah.
Okay. My cash credit is INR 2,362 crore. Term loan INR 131 crore, and I have cash equivalent INR 392 crore.
That's only I wanted to know. The cash in reported balance sheet. INR 67 crore cash and bank balances is there, 67, 68 odd crore. Where the rest cash lies? That's the only thing I wanted to understand.
This is in. The FD, which is more than 12 months, this goes into investment, the other investments.
That is a non-current investment you are saying?
Yes, yes. Non-current investment.
Okay. I have more questions. We will come back into you. Thank you.
Thank you.
Thank you, sir. Our next question comes from the line of Deepak Purswani from SVAN Investments . Please go ahead.
Yes. Thank you for the opportunity. Good morning, sir. Sir, just wanted to check out on the recent listing of Anantam Highways Trust. What is the unit currently we have at the current juncture, and what is the value of that unit based on the current valuation?
Let me tell you, DBL directly holds around 9.58 crore units. We have another units, 3.60 units, we have placed with Alpha Alternatives Fund. So in total, company is having INR 1,332 crore worth units. Basically, these are at the INR 100 issue price, but the total valuation against this is around INR 1,400 crore.
Okay. If you can also give the sense once all these 11 projects will be transferred to this InvIT, what will be the-
Basically balance, because out of eight assets we transferred seven and we got around INR 1,400 crore units. Now, with balance 11, we will be close to INR 3,400, INR 3,500 crore overall units.
Okay. Secondly, sir, just wanted to get the sense about the debt part. I do understand in terms of the slowdown in the order inflow and everything, but if you can also give the sense in terms of the. Last year there were some stuck payments from the JJM.
Where we are at the current juncture on that project, whether these are getting completed and payment has been released, and what are the current outstanding? Would that be enough to compensate and probably look into the debt reduction if this materialize and probably at the year-end again, we would be at INR 1,000 odd crore, or how should we look into all. If you can share your perspective on that part.
In terms of the debt increase from March to September, the debt increased by INR 526 crore. If you can see my current assets and current liability items. My inventory remained almost same, by INR 30 crore it is lesser, but I would say it is same. Then receivable and basically receivable basically invested around INR 512 crore. .
So receivable plus other current effect item, including GST and others. You can see, I have basically reduced the creditors faster because the creditors, though our revenue remained at low level, but my creditors were basically paid through LCs.
So basically those LCs payment made on due dates. So basically the INR 591 crore worth creditors reduced during. So we expect because of these two items, the debt got increased by INR 526 crore.
Okay. What about the receivable from the JJM scheme? If you can give the donation.
Only one month the receivables are coming on time.
Okay. Progress on the existing project has been as per the schedule or
It is as per the schedule.
Okay, great. Thank you and wish you all the best.
Thank you.
Thank you, sir. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touch-tone telephone. Our next question comes from the line of Amit from Enam Holdings. Please go ahead.
Yeah. Hi. Just wanted to check from a debt perspective and also from a growth guidance that you just gave, Rohan. Should we assume that this will be a peak debt and from here on, the growth requirements of INR 8,000-INR 8,500 to INR 10,000 next year, and from thereon and for all the new HAM projects, this will be a peak debt and there will be a significant reduction and we are on a self-funding mechanism and there won't, from a capital requirement perspective, how do you see that?
Yeah, Amit, you are very right. This is the peak debt level. If you see in the last few years, we have only kept on reducing. If the external environment had been supportive, if we had not seen reduction in our top line in the last two years, we would have obviously made strides and been able to make even a larger sort of reduction in our debt.
Now, if I look at the other thing that you mentioned, yes, we are at almost a self-funding level for different assets. We also have large assets in terms of the InvIT units that we hold. If I look at that is something now almost as cash that the company can always use, even if we ever need to raise any capital for the new projects.
We have a lot of additional currency that the company has, and that is basically the way going forward. We on a standalone level, our revenues, while will increase next year, we continue to want to have them at a level where we do not have to take more debt at a standard level, but we can grow it profitably. That is the goal for us.
On the consolidated basis, the cash flows will keep on growing year after year, just because the cash flows from coal MDO operations will keep on increasing. Not just the scale and size of those operations are increasing every year, but also the rates keep on increasing every year because of inflation. That will keep on increasing. Then we will have the cash flows from InvIT, that will keep on increasing.
And as this new solar sector comes online, that will also start spurring long-term cash too from this. Even in terms of what you asked me earlier, is this the peak number? This is the peak number, and this is already INR 200 crore less from the last peak number of September 24. So this is already INR 200 crore less than that time. So this number should not go up here. It will only keep on reducing.
And now it's a very good sort of visibility in our order book and next year's revenue. While this year's revenue is, again, not how we anticipated the year would start. We anticipated more projects will come earlier. But that is what the external environment is, and we can't control that. But next year now gives us a good runway for growth.
Sure. Thank you.
Thank you, sir. Our next question comes from the line of Deepak Purswani from SVAN Investments , a follow-up question. Please go ahead.
Yeah. Thank you for the follow-up opportunity. Sir, just wanted to check it out, since you mentioned about the debt reduction and this creditor's letter of acceptance has been reduced. How should we see the finance cost? Broadly, it will remain the same because, again, the interest-bearing creditors would also get reduced.
My interest cost shown in P&L, it includes everything. Commission of LCs, BGs, LC discounting cost, interest on working capital, and interest of term loan. The interest, if you can see my quarter-on-quarter and first half versus first half, it is reduced because even after increased utilization.
There is a reduction in borrowing cost as well. All the costs related to LCs, BGs, that is already plugged in. For this full year, we can target around INR 450 crore interest and finance costs, and next year we can target around INR 350 crore.
Okay, got it. Secondly, sir, if you can also give a broader sense in terms of the bid pipeline. One, on the NHAI front, and also some sense on the delay. There I've seen some delay in awarding. How should we look into it? Secondly, extra road projects, which are the key projects which we are looking out and what is the bid pipeline there?
Deepakji, bid pipeline INR 1.5 lakh crore worth NHAI bid pipeline available. Almost last year, the same maintain but due to the land clearance. We are expecting Q3, and finally Q4 bid activity road projects. Almost INR 25,000 crore other sector diversified dams, irrigation, Jal Jeevan Mission, coal.
Okay. Thank you, sir. Finally, on the long-term asset portfolio which we are targeting, if you can also give a sense in terms of three, four year down the line, on the broader basis, how should we look into it? On the MDO part, what did we— Still we would be looking at some more project to add in the portfolio.
Then we have a separate annuity project here, and thirdly, we are looking on to the solar. Putting it all perspective, if you can also give a broader sense, what is the kind of the annuity rental income which we are looking at from the next three to four-year perspective? What we have as a target?
You mean annuity from road, sir, or from other sectors? Just annuity from road?
Yeah, putting all together from the entire portfolio. What is the aspiration we want to achieve?
INR 400 crores of cash every year. That should be in that range. So INR 380 -INR 400 crores of cash should come from the road sector alone. Solar, because it's still early days. Right now, we just have 100 MW. As that scales up, the solar market rates are well sort of socialized and the industry is well aware.
Whatever that happens, that will be again in the mid-teen kind of returns that we'll be looking at. To give that number, I will work on detailed numbers with my team and I'll give that separately.
But because it's very small right now. But coal now, if I talk about the third part, coal. Coal cash flows, both Pachhwara and Siarmal put together, we expect at least about- No, not next year. Three years down.
Both Pachhwara and Siarmal put together at full capacity, about INR 1,000 crores of cash coming from there. So that's about INR 1,000 crores of cash from both of those, INR 400 around from our road annuity business, the current 18 assets, and then whatever gets added via the solar as that portfolio also builds up.
Irrigation project.
Yeah. Irrigation HAM is also one part that we won in Rajasthan. So that will also come as a long-term cash flow. That is also for 10 years. So that cash flow will also come in. Besides that, the EPC business, like I mentioned, will be firing on its own and doing its EPC margins. So that idea, which I explained earlier also, that 75% or so of our profit at least will be coming from long-term fixed assets.
Okay.
Even if you look at it today, of our total debt, we already against our total debt, when people just look at the company, we have our net block, which is there. Then we have the InvIT assets, about INR 1,300-INR 1,400 crores, that is there. Then there is more equity at the coal sort of SPVs also. There is another INR 350 plus crores of cash at the coal SPVs as well.
So net-net, there is far more assets available, even which can be immediately monetized by the company. If we were to be a net zero company today, we could immediately monetize a whole bunch of assets. But our idea is to build these portfolios because the cash flows coming in the years to come is looking strong, and we are optimistic.
Okay. And sir, finally, on the solar front, I think the recent which 100 megawatt we bid. What is our equity stake in this project?
Basically, the total equity requirement is INR 70 crore. Out of INR 70 crore, because it is a captive by MP Jal Jeevan Mission, they will be putting INR 31.2 crore equity. So Dilip Buildcon's equity in this project is only INR 39 crore.
Okay. This entire EPC-
Against the INR 31 crore, JJM will have 26% equity.
Okay. This entire EPC work would be done by us only. This would also build up the qualification for the EPC as well?
Yes.
EPC as well.
Dilip Buildcon will be doing EPC work.
Okay. Would we also be looking at some of the standalone bids on the EPC front going ahead once these qualifications are built up?
Yes. We are targeting continuously.
Okay. Thank you and wish you all the best, sir.
Thank you.
Thank you, sir. Our next question comes from the line of Samyak Shah from Native Investment Managers. Please go ahead. Mr. Shah, you can proceed with your question.
Hello, am I audible?
Yes.
Yeah. Hi. Thanks for the opportunity. So sir, I wanted to know, last quarter we had guided about INR 3,850 crore of debt reduction on a consolidated level for FY 2026. So wanted to know where we stand on that and the timelines as to how soon can we transfer that debt into the InvIT.
Consol level, the major debt reduction was from the transfer of HAM assets to the InvIT. We were targeting that time the eight asset transfer to the InvIT, but one asset NHAI, NOC doesn't receive.
So we transferred only seven assets, but that has happened in second week of October. So in Q3 , INR 2,961 crore precisely will be reduced. So if I compare on 30th September, the debt has increased to INR 9,097 crore. But in Quarter 2, it is already reduced, means transferred INR 6,000 crore debt. So it will reflect in 31st December balance sheet.
Okay. So by the end of the year, what number should we arrive at finally on the consolidated level?
At the end of this financial year-end, we are not basically targeting very significant reduction. There will be increase only because we will draw the debt in the under construction asset. The second set of transfer asset to InvIT will happen in Q1 and Q3, Q4. So reduction of all other debt, the remaining debt will be done in FY 2027.
Okay. And sir, what would be the quantum of debt?
It will be range bound in the range of INR 6,000 crore to INR 7,000 crore. That is where it will be. It's about, I think, somewhere in that range. Six to something, that will be the range we are there. Yes.
Okay. And should we expect that say by Q1?
Q1 we are targeting four asset transfer. Around say INR 1,500 crore debt will be reduced by Q1 FY 2027 and balance around INR 3,000-plus crore debt will be reduced by March 2027.
All right. Thank you.
Thank you. Our next question comes from the line of Sanjay Parekh from Sohum Asset Managers. Please go ahead.
Thank you, Devendra ji, and thank you team. I just had a question. Coal, you've done a good job. first question is, first half, obviously there are rains, so the volume in Siarmal is less. do you still feel that we will hit the 25 million this year?
Sanjay ji, 100%, 25 million ton [Non-English content] . Initially [Non-English content] . accordingly, we have to reduce some coal production due to the less dispatch from the rakes. [Non-English content] matter close [Non-English content] [Non-English content] 25 million ton [Non-English content] target [Non-English content] 100% Siarmal [Non-English content] 7 million ton in the Pachhwara. It will be 100% fulfilled.
Super. Devendra ji, all [Non-English content] projects possible [Non-English content] coal [Non-English content] other [Non-English content] because this is clearly where we have done very well. Are we bidding for such projects in MDO?
[Non-English content] project [Non-English content] company [Non-English content] strategy [Non-English content] suit [Non-English content] profitability [Non-English content] project [Non-English content] bid [Non-English content] coal [Non-English content] । Even we are bidding some other mining projects as well.
[Non-English content] past [Non-English content] bauxite project [Non-English content] bid [Non-English content] MDO format [Non-English content] Siarmal [Non-English content] million [Non-English content] project [Non-English content] Siarmal [Non-English content] 25 million [Non-English content] 50 million [Non-English content] in other three year.
Yes.
[Non-English content] Siarmal [Non-English content] 25 [Non-English content] 50 million [Non-English content] potential [Non-English content] pace [Non-English content] ahead of the schedule [Non-English content] two year [Non-English content] instead of any lower profitability project, [Non-English content] targeting
[Non-English content] 50 million [Non-English content] successful [Non-English content] । 7 million already [Non-English content] 55 year [Non-English content] 50 million [Non-English content] Sanjay [Non-English content] ₹1,000 [Non-English content] free cash only from coal business [Non-English content] per year [Non-English content]
Wow!
So already we are very open to bid some good mining project. [Non-English content] search [Non-English content] । But [Non-English content] endeavour [Non-English content] coal mining [Non-English content] Siarmal project [Non-English content] 50 million [Non-English content] successfully [Non-English content] 2 year [Non-English content]
Okay, great. Because we have visited the site and it was a phenomenal thing. [Non-English content] railway [Non-English content] linkage, I think that belt that we need to put, [Non-English content] our relations will go up, right? Today we are getting-
[Non-English content] order book [Non-English content] ₹200 [Non-English content] project [Non-English content] railway Barpali Loop [Non-English content] project [Non-English content] control [Non-English content] finally [Non-English content] 50 million Barpali Loop [Non-English content] coal mining fee 78%
[Non-English content] 100% [Non-English content] [Non-English content] project [Non-English content] ultimately [Non-English content] project [Non-English content] delay [Non-English content] impact [Non-English content]
[Non-English content] , sir? [Non-English content] delivery [Non-English content] [Non-English content] already start [Non-English content] ,
Sanjay ji. Already start [Non-English content] । Oh, to this 78% ka 100%, the conversion from 70% to 100% should take what? Should be in one year? From now on, we are getting 100%? [Non-English content] next two years, next year our target is the 30 million to 35 million. Its next year 42 million.
That is our peak rated capacity. That is the COD of the project. And its next financial year when Barpali Loop ready [Non-English content] CHP ready [Non-English content] , that will be FY 2029. [Foreign language] our final 78% will become the 100% mining fee.
Got it. That's how you are taking this big leap from INR 350 crore to INR 1,000 crore.
Yes, absolutely.
Okay. Great. And sir, just structurally, these three companies, because [Non-English content] value [Non-English content] । In it [Non-English content] clearly [Non-English content] INR 3,500 crore total value [Non-English content] । So at a point you think can you consider this as a separate company or it is too early right now?
[Non-English content] Sanjay [Non-English content] early [Non-English content] strategy [Non-English content] company [Non-English content] [Non-English content] best [Non-English content] investors [Non-English content] best [Non-English content] discuss
[Non-English content] implement [Non-English content] our focus is only to achieve the 50 million ton and to get the 100% mining fee, [Non-English content] ₹1,000 [Non-English content] free cash more or less create [Non-English content]
Perfect. Thank you very much. Best of luck.
Thank you, Sanjay.
Thank you so much. Thank you. Ladies and gentlemen, anyone who wishes to ask a question, press star and one on their touch-tone telephone. Our next question comes from the line of Shravan Shah from Dolat Capital. Please go ahead.
Sir, couple of things. [Non-English content] we will be net debt free by FY 2028.
Yes, sir.
Okay. And sir, other income for Q2, if you can give us a breakup in terms of the frame [Foreign language] [Non-English content] , and going forward. Though the presentation is there. In the second half that we are looking at 30 odd crore from the Shrem.
Just to get a sense, this number, the INR 400 crore that we are talking about, which will come from Alpha and InvIT, that is after all the 18 assets will be shifted. That will be by FY 2027 end, and then we will be looking at INR 420 odd crore, the presentation we gave, that number we are looking at annually, we should be getting.
Yes sir, when all the assets are shifted, then that much amount will come. The number you are seeing, when all 18 assets are fully transferred, then that total amount will come. Rest, the other income you asked for, Sanjay-ji will tell. Basically, total other income for the period. You asked about the quarter 2, right?
Yes, sir.
Q2 , we have received a total of INR 1 crore from unwinding of security deposit. Profit on sale of fixed asset, INR 11 crore. Dividend on investment in units, around half a crore, and other miscellaneous income from Siarmal and other lease income, INR 18.5 crore.
Sir, no, this is not the total because in standalone there is an other income of INR 37, INR 38 crore. Sir, from SRIM, how much came? Meaning, whatever dividend, interest, and all this combined, how much came from the SRIM unit in this quarter?
Just a second. Basically, Shravan-ji, the SRIM InvIT units around INR 3+ per unit were distributed. We hold only 2 crore units. Total, overall, we received around INR 6 crore. Out of INR 6 crore, interest and dividend is around INR 1 crore.
Okay. Got it. Sir, next year when we will be having a INR 10,000 crore at standalone revenue when we are looking at, the working capital, as you highlighted, payables obviously has reduced, but inventory is still at a decent level. There, how we will look at. Whether this will remain at this level, or will it reduce or increase?
Shravan-ji, this working capital in last one half, we increased investment, so we expect by this year end, the working capital investment will reduce, so there will be release of funds from the working capital.
Okay. But broader, from days angle if you look at, it should be, because in this quarter it is around 114 odd days. Broadly it should remain here or it will come back to the core, I'm talking about data center.
It will come closer to 90 days. Back to the earlier.
The CRML conveyor belt and coal handling plant thing, what is its total CapEx, and now in the second half of 2026, how much will we do, in 2027, 2028, how much will it be, a rough idea?
Shravan-ji, the total CapEx on CHP is around INR 870 crore, including GST. First of all, the planning and designing is already done, so no significant CapEx is invested. The facilities from SBI, Union Bank of India, and Power Finance Corporation Ltd. is sanctioned in 2022, and it is available.
We have already invested INR 236 crore, the equity requirement. So there is no further equity requirement for next 15 months. We can draw almost 50% debt, INR 600 crore. So we don't see any equity investment in the next one and a half years. And we are eligible to take debt. The CHP will complete between 18- 24 months from now.
Okay, 18- 24 months. There, broadly, in terms of the depreciation, if you look at, I understand maybe slightly difficult, but just trying to understand. Roughly, it would be kind of a 13%, 14% kind of a depreciation rate that we have because it is on a full year basis, because it is scaling up, so difficult to take a generalized number. That's what I'm trying to understand. Broadly, 13%, 14% kind of a depreciation on the entire gross block of the MDO at CRML. That's the.
No, Shravan-ji, there are two parts. One is basically my HEMM, where the depreciation charge is close to 10%, 11%.
I am sorry to interrupt you, sir, but Shravan's line has been disconnected.
Okay.
Ladies and gentlemen, as I have no further question from the participant, I now hand the conference over to Rohan Suryavanshi for closing comments. Thank you, and over to you, sir.
I thank all our participants, all the investors for coming on the call and for asking all the questions. In case we have missed out any answers, or in case any of you were unable to ask any questions, please feel free to reach out to our team, and we will be very happy to answer them on a personal basis.