Ladies and gentlemen, good day and welcome to the Engineers India Limited Q1 FY2026 Earnings Conference Call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will remain 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 the operator by pressing star then zero on your touch-tone telephone. Please note that this conference is being recorded. I will now hand the conference over to Ms. Bhoomika Nair from DAM Capital Advisors Limited for opening remarks. Thank you, and over to you.
Thanks. Good morning, everyone, and a warm welcome to the Q1 FY 2026 Earnings Call of Engineers India Limited. From the management today, we have Mr. Sanjay Jindal, Director of Finance, Mr. Suvendu Padhi, Company Secretary and Investor Relations, Mr. R.P. Batra, Executive Director of Finance and Accounts and Investor Relations, Mr. Amanpreet Singh Chopra, Senior General Manager, CMP Office and IR, Mr. Vivek Midha, Senior General Manager, Marketing, BD and IR, and Ms. Neha Narula, Senior Manager, Company Secretary and IR. At this point, I'll hand over the floor to Mr. Jindal for his initial remarks, post which we'll open up the floor for Q&A. Thank you, and over to you, sir.
Thank you, Ms. Bhoomika. Good morning, everybody. We have declared our financial results for the First Quarter ended 30th June 2025 on 13th August 2025. Company order book position has reached its all-time high and stands at INR 12,145 crore as on 30th June 2025, as compared to INR 11,717 crore as on 31st March 2025. Order inflow in EIL during the First Quarter of financial year 2025-2026 stands at INR 1,430 crore, which comprises INR 609 crore in consultancy segment and INR 821 crore in turnkey segment. In the First Quarter of financial year 2025-2026, the company achieved a turnover of INR 857 crore in comparison to INR 611 crore in the First Quarter of financial year 2024-2025, showing an increase of around 40% with turnover from consultancy and engineering segment amounting to INR 408 crore and INR 449 crore in turnkey segment.
During the First Quarter ended 30th June 2025, the company recorded profit before tax of INR 94 crore and profit after tax of INR 70 crore in comparison to INR 74 crore and INR 55 crore respectively during the First Quarter of financial year 2024-2025, showing an increase of 27% approximately in the PBT and PAT. Operating margin during the First Quarter of financial year 2024-2025 stood at around 7%, that is INR 59 crore, as compared to 6%, that is INR 36 crore, during the quarter ended June 2024. EBITDA of the company as on 30th June 2025 stood at INR 105 crore. EBITDA margin is 12% in comparison to INR 85 crore as on 30th June 2024.
The company is maintaining a healthy earnings per share of INR 1.25 during the quarter ended June 2025, as compared to earnings per share of INR 0.97 during the June quarter 2024. On a consolidated basis, the company earned a profit of INR 65 crore for the quarter ended 30th June 2025. Now it's to Bhoomika Ji.
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Hi. Good morning, sir, and thanks for the opportunity.
Good morning.
Yeah. My first question is, in this particular quarter, we have reported the reported losses on JV, JointVenture. Can you please help us explain the losses and the likelihood of returning to profit for next quarter?
Yeah. Actually, in this First Quarter, RFCL project was under shutdown for the normal shutdown of the project. It was shut down almost 45 days out of 90 days. Now this project is doing well, and it is already working at more than 90% capacity. We are sure that in this quarter, we'll have profit.
Understood, sir. My second question is, sir, in this particular quarter, we reported around 17% EBIT for the consultancy. Is it fair to assume that we will report, we should be taking our model 22% EBIT margin for the quarter going forward? Is that a fair assumption?
I think this is a fair assumption on a year-to-year basis. We are having around 22% margin in the EPCM business, consultancy job.
Understood, sir. Given this is a very strong order book on the consultancy, is it fair to expect a 20% growth in the top lines of consultancy for the next two, three years, or do you think the growth will be slightly lower?
Sir, I'll just take a minute. This is the order book.
You're asking about the research about the growth?
Yes, sir. Given this very strong order book on the consultancy, it's around 4.4x, is it fair to assume a 20% growth in the top line for the next few years?
For the consultancy business, it will be in the range of 12%- 15%.
Not higher than that, sir, given this very strong order book?
I mean, some portion will come from the turnkey business also. Overall basis, it is 20%, and out of that 20%, around 12%- 15% from the consultancy business because consultancy business is more profitable to EIL.
Yes, sir. Understood, sir . Thank you.
Okay.
Thank you. The next question comes from the line of Amit Anwani from PL Capital. Please go ahead.
Hi, sir. Am I audible?
Yeah.
Thank you for the opportunity. First question, again, to the previous answer. You're saying 20% top-line growth, out of which, 12%-1 5% consultancy. Does it mean that we are expecting more than 50% contribution from turnkey for FY2026?
Hello.
Am I audible?
Yes. Amit, are you audible?
Okay.
Normally it remains in the same range. Somewhere with consultancy, it would be around 60%, 55%, 60%, and then 40%, 45%. 52%. Yeah. It was around 52%. In this quarter, LSTK was around 52%, and consultancy was around 48%. Normally it remains somewhere around the same figure. I mean, it could be 55% consultancy and 40%-45% turnkey. Normally it remains in the same range. Basically, overall growth, we are expecting around 15%. It will be coming from both the segments, turnkey as well as the consultancy segment.
Understood, sir.
This is our right now estimate. Going forward, we can revise the estimate based on the execution.
Right, sir. The second question, again, on consultancy, we have been doing very good from past two quarters, and even the overseas consultancy is seeing good conversions. I wanted to understand, are we expecting the same run rate? We were talking about some setups in the Middle East. What is the guidance? Will we be continuing this run rate of order inflow from consultancy, which we have done in the past two quarters, for the remaining quarters?
Yeah. That's true that international has been giving good business for us, primarily from the Middle East and Abu Dhabi. As of today, we have already reached INR 950 crore in the overseas segment. In the current, as of today, we have secured businesses INR 960 crore. We see more opportunities in the international segment only. It is going to grow.
Understood. Sir, is it fair to assume since we saw consultancy margins kind of keeping low this quarter? Last year, we saw it scaling up by the end of Q4. Are we expecting kind of 25% what we did last year on margins for consultancy? That is the last question, yeah.
Yeah. In the last quarter, there were certain items, basically settlement of change orders and the write-back of provisions. Going forward, the margins, basically segment margins shall be in the range of around 20% to between 20%- 25%. In case a particular project is being completed, in case there is some variation order, quarter-to-quarter, there may be a variation. On an overall basis, basically, we are expecting the consultancy segment margin in the range of between 20%- 25%.
Understood, sir. Thank you, sir.
Basically, in the last quarter, there was an impact of INR 195 crore due to change order. That's why our quarter performance was extraordinary.
Is there any change order expected this year?
Definitely, we are having change order with our clients that are under processing with the clients. It depends on the time when it materializes. Definitely, it materializes in this year also. It's a continuous process.
Understood, sir. Thank you.
Thank you. We take the next question from the line of Vivek Gautam from GS Investment. Please go ahead.
Yeah, just wanted to understand. Sorry, I was late in joining the call, sir. Just wanted to know what was the reason for the downturn in the profit? Was it due to the losses in our JV, Ramagundam, and other sort of things? What value are we getting by going in for such JVs? Is it a government pressure?
No, no. Actually, our RFCL project is going well. You have seen in the last year, there was a good profit from the RFCL project. In this quarter, the RFCL project was under planned shutdown for planned shutdown. Out of 90 days, it was under shutdown for 45 days. That's why there is some figure of losses. It will be covered in this quarter because the client is already running at good capacity. We are definitely sure in this year, we will have good profit from the RFCL project.
What about other JVs, sir?
I'm talking about the RFCL JV.
S ome other JVs also we are having nothing.
No, we don't have other JVs.
Okay. The second thing is, Madam CMD, is she retiring this year? By when? Because her tenure was .
She's retiring on February 25.
February 25.
In February. It is scheduled. It is superannuation.
Superannuation. Yeah, yeah. That is again another vein of PSU that you have to compulsorily retire at the age of 60, unlike private sector. Any chance of an extension, or there has been no precedent of that sort in the past for EIL CMD?
We can't say anything on this a spect.
Okay, sir. Basically, how is the future looking like for us? You know, for the first time, in the March quarter, there was good uptake in the top line and bottom line also. We had moved away from the oil and gas sector to the other sector also. Was that the reason? Is that sustainable and is it margin accretive?
Yes, the future is still bright, and we are working towards it. As you see that we already reached the order book of INR 12,000 crore as of now in this quarter itself. We have added more orders to the tune of right now, we have around INR 2,700 crore already as of today. We are hopeful that we get more orders and we beat the last year's report, and let's hope for the best.
In Guyana, there has been a major oil discovery, and there is an Indian Diaspora. Indian politician Mr. Ashraf Ali is the President. Have we been able to get any breakthrough in Guyana, and also any update on the Andaman prospects, sir, which can be good for us or the country also in the long term, sir?
With respect to Guyana, we are on in the power plant project as a project management consulting. Primarily, it's an exploration thing when the oil will come out and they want to process it. Our goal is initially come. Let's hope for the best because what process they follow because ExxonMobil is the major contributor there and moves into the exploration. Let's hope for the best. With respect to the Andaman, this is still in the initial nascent stage. Let's hope when the actual reserves are there and explored and then processed. The future is bright for India if we get this reserve from Andaman and some work from Guyana. Let's hope for the best.
Indian sedimentary, this is as far as the oil discovery goes, not much of a success has been so far, sir. Anything changing which you are finding and as you being from the same sector, sir?
I would not be able to comment because that's more of an exploration part. I think ONGC or OIL would be the best to respond on that.
Yeah, yeah.
Okay.
Okay. Thank you, sir.
Thank you. We take the next question from the line of Bhoomika Nair from DAM Capital Advisors Limited. Please go ahead.
Thank you, sir. Sir, you know how you talked about the international pipeline. Can you please discuss and give some outlook in the domestic market? What is the outlook in terms of the ordering activity that you are seeing? If you can just highlight that for larger projects on both PetChem and refinery.
Ma'am, you are aware that this Andhra project is going to come. We are working on that, as in the initial, we have been given work for selecting the licenser and finalizing the configuration. That's one of the prospective projects which is going to come towards the end of this financial year. That's one of the opportunities. There are certain more projects under consideration, which we are discussing. A lot of opportunities are there in the infrastructure segment also. We have got various assignments from the data center, the institutional buildings, as well as various religious places, modifications. Those opportunities have also come to us in the domestic segment. Some work has also come in the metallurgical segment, and we are anticipating some of the expansion projects which could come with respect to the state smelters.
On the IOCL side, sir, any PetChem projects, anything which is anticipated?
IOCL side, PetChem is already on. PRI Paradeep Petrochemical is on. Its phase I is already on. When the phase I completes, they will go for the phase II. That is the major opportunity which will be coming to us because that's already awarded to us. Formally, phase II would be awarded when the phase I is complete. That is the major project, the chem project from the IOCL side as of now.
When is the phase I expected to be completed, sir?
It will take couple of more months. It was almost a 10-month schedule, so the four, three, five months have expired. Let's see.
Okay. Anything on the HPCL side, you spoke about BPCL Andhra. Anything else on any other projects of BP or HP?
With respect to the HPCL, their LOBs were there, and some modification in the LOB project is there. Some of the projects are there on the NVIL from their side. HPCL, I do not have much details immediately in my hands right now. I'll get back to you on that.
Sure. Okay. Secondly, in the presentation, you've spoken about the various orders that you've got. Just wanted to clarify, what is the difference between depository and LSTK OBE that we typically used to give earlier? If you can just explain, sir. Is your order profile different in the workings or in terms of cost pass-through, et cetera?
No, it is exactly different. This is considered as part of LSTK. LSTK, we are completely responsible for the execution of the project, and all the risks are taken under our purview because we work as an EPC contractor, and we are responsible for the execution of the project and delivering the project. Whereas in the quantitative mode, it's a mode of execution where we take the cost part, ordering cost in our scope as principal executor. That's the basically difference. Primarily, it is considered as part of consultancy only. While LSTK depository is considered as a part of consultancy, the LSTK is purely an execution work. That is considered as a step under the different purview altogether.
Understood. Fair point. Lastly, sir, you mentioned that the international order intake is around INR 950 crore till date. I see in one queue we've got INR 475 crore. Where has the balance, you know, close to INR 475 crore, come from? If you can just highlight that.
It has come from Abu Dhabi, and a few of the projects have come from Kuwait. It's Kuwait, Al-Khafji Joint Operations. We have got one assignment from there, and the rest of them have come from Abu Dhabi, UAE.
Understood. Fair point. Okay. This helps, sir. Thanks so much. I'll get back in the queue . Thank you.
Sure.
Thank you. The next question comes from the line of Nidhi Shah from ICICI Securities. Please go ahead.
Yes, I just want to review my question. Sir, you mentioned on the IOCL Paradip that phase II will be awarded after phase I. Isn't everything remaining in phase I to be awarded still?
No, phase I is just awarded. It's reported to be.
Ladies and gentlemen, we have lost the line of the management. Please stay connected while I rejoin the management. Thank you. Thank you for your patience, ladies and gentlemen. We have the management reconnected. Nidhi, if you can please re-ask your question. Thank you. Hello, Nidhi. If you can please re-ask your question.
Am I audible now?
Yes, now you are audible.
Yes. My question is basically on the IOCL Paradip phase I. Is it needing any spending to be awarded still?
Ma'am, for the phase I, the phase I part is already awarded. It's already under the execution. As part of the phase I, we have to prepare a study report as well as a feed document for that, so that they can proceed with the subsequent phases. That work is already on. The complete work for the phase I is already awarded to us. When this report is submitted, their management will take a decision to go ahead on the project, and then the phase II will start.
Is that fair to assume that phase II will have a larger portion of EPC than the consultancy?
No, it's like there's some portion is on EPCM and some of the portion is on the EPC basis. For us, it is completely EPCM. It's already been awarded to us.
Okay. Also, could you please help us with the L1 position, you know, where it is still not in the order book? We're waiting for LOA and some details on those tenders.
There are many of the projects which we keep on bidding, and those remain in the process of finalization with the client. As soon as they are realized, these are considered as part of the order book, and they are declared in the subsequent quarterly results. It will be declared. Many things remain in the pipeline. Till the time they are finalized, they cannot be declared because there are competitive scenarios working there now.
Are there any L1s that are just tending to be only LOA is remaining in that sense? Like the decision has been made finalized, but only the official LOA is there to come out, or is it that the?
Yeah. There could be certain smaller orders which are under negotiation and finalization of the contract. Till the time the contract is not signed, it's not necessarily that it's all the competitive tenders. There could be certain negotiated tenders that are also there, which are in the process of negotiation and the finalization of the contract. As soon as they are signed, this will be declared. There are a few jobs that are there, definitely.
On the PetChem side in the Middle East, are there some projects that you would like to call out that could possibly be tendered in the next nine months?
There are a number of projects which are coming in the Middle East, specifically in Saudi Arabia, UAE, or Kuwait. We are bidding for those projects, but they have a lead time of five to six months as soon as the tender is placed. There is an evaluation time. It all depends how it goes. We have bid a few of the ones, so let's hope for the best.
Thank you so much.
Thank you. We take the next question from the line of Saket Kapoor from Kapoor & Company. Please go ahead.
Namaskar, team, and thank you firstly for this opportunity. I hope I'm audible, sir.
Yes, yes. You are audible, please.
Yeah, thank you.
Sir, firstly, on your announcement of 14th August, we have an announcement for Bharat Small Modular Reactor. If you could just elaborate, what kind of opportunity are we eyeing in this space? If you could give us some more color on this, sir.
It's like we are working with NPCIL to work on this conceptual design and engineering services for that project. This work is already awarded to us. This is going to be the first assignment. If finally, after execution of the same, this will open an opportunity for the other kind of assignments because the Government of India is planning for a lot of this kind of SMRs all across India for the generation of electricity and increasing the nuclear reach. That is a good opportunity. This assignment is awarded to us somewhere around, it is somewhere around INR 30 crore, INR 29, INR 30 crore.
Okay. It is one which will be a testimony for going ahead once we execute the same.
Yes. It's the starting point. It could be the starting point. Based on the success of this, or with this, we can start for the other projects also wherever NPCIL works.
Okay. When are we going to execute the same? How long will it take?
We are working on this. We have already started the study on this.
Okay. Sir, in the presentation, there is a mention of business secured and order booking on slide number 10, 11, and 12. What should investors read into these differences between business secured and order booking? How should one interpret these things, sir?
Business secured is the current business which is secured in this financial year. An order book will include the orders which have already been executed in the past, and they're under execution. Normally, a big order will have a cycle of three to four years. A big project will have a cycle of three to four years. Every financial year, some of the unexecuted value will be there in that financial year. This shows that this much of work is already there in our hands. Like today, you see that INR 12,000 crore. INR 12,000 crore worth of work is under execution with us. The business secured tells the new business which we have secured in this financial year.
Correct, sir. In your opening remark, and also to answer to some of the participants, you mentioned about 15% revenue growth on what we did for the last financial year should be what we are looking for for the remaining for this year. That should be the top-line growth that we can expect.
Yes, we are told that it should be around for consultants, it should be 12%- 15%. Okay. It should be easier. It's already, yeah, told.
15% is what we should look at in overall. Sir, for the margin profile, you mentioned that this 17% and 6% will hold going ahead, or can we look for further improvement of the same? Last year, sir, because of this changeover order, the margins for our consultancy was at 30%. That is a historical only that to be taken into account, or what should we, because the basis will be very high when we look at our consultancy profitability for the last fiscal.
Consultancy margin shall be in the range of 22%, which is what we are maintaining for the last long period. For the LSTK business, it is 5%- 6%, 6%- 7% in the range of 6%- 7%.
Okay. Going ahead, we will be experiencing, with the improved business turnover, improvement in margin since we have clocked 17% for the consultancy this quarter. There is a very likelihood of this moving up, and on an average, we can look for 22%. That is what should be our trajectory.
Definitely, all the margins will be retained, and there will be a positive growth in the turnover, top-line.
Okay. Sir, you mentioned about our Ramagundam unit being under, I think, some maintenance shutdown. Can you quantify to us, sir, what was its impact in terms of the losses because of it? I think under the JV part, we have booked losses to the tune of around INR 7.5 crore. In the likelihood of that one-off item, what should have been the normal profitability or for the year, what should we look at this segment, sir, in terms of the joint venture part? I think there is some dividend component also that goes into it. For अगर आप last year का base पकड़े INR 108 crore का, तो इस वित्त वर्ष के लिए इस JV और हमारा जो exposure है Numbrigar Refinery का, उससे क्या हम estimate रख सकते हैं current year के लिए?
JV का तो आप जो है उतना ही रख सकते हैं। Around INR 100 crore will be accretion to the EIL's consolidated financial statements. और जो आपका Numbrigar Refinery है, वो तो basically it's not an associate. उसमें जितना dividend आता है, that is being recognized as an income.
अच्छा जी, तो वो other income में add हो जाता है।
हाँ जी, हाँ जी, हाँ जी, हाँ जी।
तो last year क्या number था, sir?
Last year around INR 20 crore ke aaspaas tha last year mein.
Okay. JV aspect, sir, we have this only the Ramagundam part that goes into JV, or this upstream assets से भी कुछ contribution रहता है जो आपका NELP के अंदर में।
Basically, JV का ही जाता है उसमें.
हाँ जी, majorly JV का ही जाता है।
Yes.
Okay. Because the last year performance for Ramagundam was at its peak, I think. INR 100 crore was the highest, I think, if you take into account INR 107 crore.
Yes, that will be very clear.
This year also we can look forward for this number going ahead. I think it is only the urea base they are doing, and there, I think, energy efficiency and a lot of aspects also go into it. We can look forward for this kind of contribution to continue.
We are sure we are going to get this kind of contribution from the RFCL in this year also.
Okay. Sir, for our MD's term to conclude, I missed your comment on Vartika ma'am's term. It gets concluded when?
She is superannuating the month of February 2026.
Okay, sir. Lastly, in the order booking part, I think domestically, major EPC companies are seeing a slackening in the order release, especially from the PSU segment, whether it is ONGC, Oil India, and other state PSUs also. What is our understanding and what portion of our order booking or bid pipeline is inclined or is related to the CapEx from either the central or the state PSUs?
With respect to the major LSTKs, you know that we bid only for the OBE LSTK projects, which are very specific. Very state-owned clients like the ONGCs, we have been associated with them. We have been doing a lot of modifications for their projects because a lot of their assets are old, and we are involved in the modification of that. Those have been executed on OBE basis. Exactly saying that if they are awarding the EPCs normal, in the normal EPC, we don't bid. It's only specific, and they have discussed and very earmarked the OBE projects which we bid in the LSTK segment.
Okay, sir. Lastly, sir, I think so for the.
Saket, I would request you to please rejoin the queue.
Yeah, I will join. Yeah. Thank you, Srini. I will join the queue.
Thank you. We take the next question from the line of Amit Anwani from PL Capital. Please go ahead.
Sir, thanks for the opportunity again. One question on the non-oil and gas business, which is now 35% of order book, and we have been talking about that. The non-oil and gas portion would be 30-35% of order intake this year as well. Wanted to understand the nature of contracts, margin difference between oil and gas, non-oil and gas for us, whether it is turnkey or consultancy. What is the conversion rate? Is it government contracts or private? Are we going to take private contracts also? Do some more color on the non-oil and gas business since it is becoming a more prominent part of our order book and also the duration of these orders. Yeah.
Primarily, the major part of the non-oil and gas business is coming from the infrastructure segment. These then include mostly the government clients as well as some of the private clients are also there. These are negotiated contracts, and these are very specialized kind of contracts. We are working for institutions like IIT, IIMs, or for the government of Jaipur. They have certain technology issues. We are working for the data centers, like we have worked with RBI Data Center, similarly Bhamashah Data Center. All these kinds of work are there. In fact, we have also recently worked for Ram Jammabhoomi. We have been awarded project management assignment for them for monitoring their campus modification with their wall, campus wall modification. All these kinds of very specific assignments we are discussing and getting it from them.
Normally, these kinds of projects have a period of execution of 24 to mostly two years' time is there in these kinds of projects. They are shorter duration contracts.
So margins?
Margins are good. These are mostly some of them on the LSTK basis. LSTK margins are available, which are there in 5%- 6%. Some of them are in the consultancies. The consultancy remains in the range of 20%- 22%. That margin is maintained.
Right. Is it nominated, or are we competing? Who are the competitors in this space which you're working on?
There are a number of competitors available in the market. Infrastructure companies are there. We compete against them. Some of them are negotiated and won, and some of them are on a competitive basis. All the companies are there in the market.
Will this be like 30%, 35%, or can this increase over the next two years, this portion?
Right now, it is around 40%, 45%. It depends. It changes. Like it is tentative order nature because by the time we reach last quarter, we can have other orders. The percentage keeps on changing.
Understood. This is more sustainable since you're winning quarter on quarter, some portion.
It is sustainable. You can see it is increasing for the last, I think, two financial years.
Understood, sir. Thank you, sir. Thank you so much.
Thank you so much.
Thank you. The next question comes from the line of Rohit from Tata AIG. Please go ahead.
Thank you for giving the opportunity to ask questions. One thing is, given if I see historically last year four or five years, our top line for the next year is 35%- 38% of the opening order book. If I go by that number of your INR 11,700 crore order book, which was in the beginning of the year, and if I do the maths, then I'm not able to understand why you are seeing a 15% growth projection as compared to your historically last four or five years showing a growth of 25%- 28% odd.
Actually, this is the order book position, and you know these are the long-period projects. Generally, these projects are completed within the period of three to four years. In the initial phase of project, there is lesser progress, which contributes less to the top line. After expiry of one year, after getting the job, it stimulates, and we get the good top line also. Therefore, we have said if for this year, we are in the range of 15% growth, and definitely, we will try to get 20% growth, no doubt. On the conservative side, it is 15%. Definitely, we are going to get the benefit of all-time high order books in the coming years.
But sir.
Vartika in the coming years also.
Vartika ma'am, on coming on interview and she is saying that this year, the projected growth will be between 30%- 35% in top line, and you are saying a 15% growth. I don't know within the management team why such a misconnect is there. CMD is projecting a growth of 30%- 35%, and you are saying a 15% growth on the conservative side. I don't understand.
On the conservative side, we are 15%- 20%, but definitely, some of the change orders are under process with our clients, and we are expecting that these change orders will also finalize in the current year. This is the routine process because change orders are a continuous process. If in case our change orders are approved by the client, then definitely, our growth will be 30%- 35%. On the conservative side, we are 15%- 20% on the normal growth path.
I understood, sir. I get what you're trying to say, that your projects are long. Give me just your own period. The same had applied in the past also, years. This year is nothing new as compared to the past. In the past, in the last five years, you take the data, you can check it. Your average execution as a percentage of opening order book has been between 33%- 35%. This year, if I go with your 15% match, it will be historically low. Whereas in the last year, you have gained order book of INR 8,000 crore. This year, I guess you guys are on track to get INR 7,000 to 8,000 crore order book again, which you have already gained INR 2,700 crore, which you said in the call. It's not conservative. I think it's too conservative numbers.
Why not give us the proper clarity to investors? I think that will be great. If you can work out your numbers in the next quarter to give us proper clarity. Also, if you see historically, quarter one has been a weaker quarter for you. This year, you have posted your all-time high quarterly numbers, and then also you are saying a 15% growth.
Let me tell you, whenever we get the job, generally, in the first year, progress turnover comes only 10%- 15%. From the second year, it comes to 20% -25%, and in the third year also, it is 25%. In all the orders which we have received recently, we are expecting only 10%- 15% turnover from these projects. That's why we are saying we are keeping a conservative approach of 20%. Otherwise, in case there is a good progress in that project, we can get more. We are not making any promise on account of that because project progress depends on many factors. In the first year, project progress is only 10%- 15%. That's why we are keeping a conservative approach. Otherwise, we will.
Sir, if you record. No, no, no. Sir, if you are, I am telling you, sir, I can take this offline also because when you say 10%- 15%, you got INR 8,200 crore order book last year. If I take 15% of it, that is itself an INR 1,200 crore type of order inflow which should flow in this year from your last year order book, last year order inflow. In FY 2024, you closed the order book at INR 7,800 crore. तो सर, INR 3,000 crore तो आपके पास FY 2024 का order book में से है। और FY 2025 का give me जो आपको order book मिला है, उसमें से भी मैं 15% पकड़ूंगा तो give me INR 1,200 crore. तो मुझे ये INR 1,200 crore से उसमें से और इस साल भी आप जो order like in this year also you will get some INR 7,000, INR 7,500 crore order.
Whatever you get, there will be some order which needs to get executed in a shorter period of time. Might either I am not able to understand or I am taking numbers wrong, but I don't think so that 15% numbers which you are saying is a correct number.
Basically, we have arrived at a number on the basis of the order book. New order definitely will add further to add. That's why we are saying that as of date, we are expecting around 15%- 20% growth in the turnover. Going forward, we can definitely revise our numbers.
Okay. My second question is, in the current quarter, you had a lower your LSTK margins. On an annual basis, you will be achieving what you have achieved in the last three years. It's not correct to see margins on a quarter-to-quarter basis. It's better to see on an annual base, correct?
Definitely. Because you know, EIL is earning revenue from the implementation of projects. Income from the implementation of projects is always cyclic in nature. It is better to see on the annual basis rather than on a quarter-to-quarter basis because it fluctuates from quarter-to-quarter.
When you look at the.
I do apologize to interrupt you. Could you please rejoin the queue?
Thank you.
Thank you. We take the next question from the line of Kunal Shep from B&K 361. Please go ahead.
Hello. Am I audible?
Yes, yes.
Please, Kunal.
Yeah. Hi, sir. Good morning, and thank you for the opportunity. Sir, just wanted to check what is the order inflow run rate that you guys are building in or we should work with for the next two, three years?
Sorry? Can you just repeat the question again, please? Order in.
What is the order inflow run rate you guys are building in, or what is the number that we should work with annually for the next two, three years? What is the plan that we are targeting given that now the spectrum of opportunities that EIL can participate in has gone up meaningfully?
Yes, yes, exactly. Last year, order inflow was INR 8,000 crore. We are expecting that there would be some rise in that. At least we will be able to match the INR 8,000 crore, which was, this time, for the first time we had achieved that kind of order book. The endeavor would be to meet the same kind of order book, with increase that we are perceiving, that it should be 10%- 15%, 20%. We should be able to get more. It's an internal target for this. Sir, do you think that this kind of run rate can be sustained for the next two, three years, or?
It should be. It should be. If you see that the kind of CapEx investments and the focus by the government is there on the indigenization in Bharat, a lot of projects will be coming there. Infrastructure has a lot of boost. You see that our contribution of infrastructure in our business is increasing. Similarly, when you are going towards the development of the internal product, I suppose today, yesterday, the new policies we launched, deep sea exploration, more than the oil comes to the market. Actually, there would be processing facilities, the refining capacity, and petroleum capacity will also increase. There's a lot of investment and boost from the government side also. We see that there's a good opportunity for us. As soon as the projects are on, CapEx investments are there in the market. It's an opportunity for EIL to be there as a consultant.
Got it, sir. Sir, lastly, we also spoke about the INR 5,000 crore turnover target. Is that the target that we have kept for ourselves for FY 2028, or should we be able to achieve it earlier as well?
I think by 2028, we should be able to achieve it because as soon as the order book increases, we are moving towards the same aim. Let's hope for the best.
Perfect. Thank you so much, and best of luck for the future.
Thank you.
Thank you. We take the next question from the line of Ajinkya Jadhav from Chris Portfolio PMS. Please go ahead.
Yep. Thanks for the opportunity. My question, again, is on the SMR. Sir, if you can tell this INR 30 crore assignment that we have got, this is for, I expect, this is for one project. How many such projects are expected to be from the, hello?
Yeah, yeah, we are listening.
How many such projects are expected to come from the government in the next, maybe say, two, three years?
No, it is there in the articles also. The government is pushing for this. Many private companies, like many other public sectors, like NTPC, is also putting up the SMRs in the future. They have also started study. All oil, oil, oil power companies are also anticipating to go for it. There are a lot of opportunities all around India. You know that the government is thinking of nuclear mission. They are thinking of achieving the under the Viksit Bharat opportunity. They are thinking of 100 GW from the nuclear. That can only be achieved from the smaller reactors, which are faster and easy to do it. Let's hope for the best. There are a lot of projects that are going to come for that. All other companies will also be investing in this segment.
Okay. Our scope will be around this INR 30 crore number, or will we be adding more offerings?
Actually, this is part of its own kind. We are just starting working on the conceptual design because even SMR is very new in the market now in the segment. As soon as it's developed, our scope will always increase because we are a consultant. We can do all kinds of complete engineering, procurement, construction management till the implementation we can get involved. This is just the starting point. This is going to increase in time to come.
We have a fair chance of getting orders from the private the SMR players as well, right?
Let's see. Yes, we are now getting a lot of business from the private segment in competition also. We are very much hopeful that the private segment will be our potential clients in the future too for the SMR also.
Okay. Yeah. Thanks. Thanks for answering my question.
Thank you. The next question comes from the line of Saket Kapoor from Kapoor and Company. Please go ahead.
You said once again, sir, what is the cash balance currently on books and our any dividend distribution or cash distribution policy for the investors?
Our cash position is around INR 1,100 crore. INR 1,000 or INR 1,100 crore.
In the range of.
Yeah.
Thank you. What is our dividend payout policy or sharing the cash with your investors?
In this year, we have declared a dividend of ₹4 on the face value of ₹5. We are paying 80% dividend. I think this is more than a 50% payout.
Okay.
Our dividend policy is minimum 30% payout.
Correct, sir. Sir, just to have a humble understanding and permission, one of the participants did mention about the variation in what things look like in terms of the execution and the growth trajectory for the current year, especially between 15% and 35%. The range looks a bit broader. Just a request and humble suggestion from investors like us is that if Madam could also join the call and just allude to the premise on which her vision of achieving 30%, 35% and the team who is addressing us, giving us conservatively 15%- 20%. That dilemma would have been cleared had she also joined and addressed us.
A request to give the feedback so that on the remaining tenure or the remaining calls which happen, if ma'am could join and just could have, she would have clarified where itself where the gap is building up because that would have answered many questions.
Basically, this is not the gap. This is the First Quarter for 2025, 2026. In case our top line moves further towards 30%- 35%, then definitely we will change over our forecast based on the coming quarters. It is not a key we are giving any wrong information to our investors.
No, sir. Nobody.
In case I am giving more figures, it may be I am giving a wrong figure to the investor. Already I am giving a conservative figure. How can I be wrong?
No, sir. This is not the question of going either right or wrong. It is only the gap which the participant. Yeah, yeah, yeah.
It is a question of forecasting. I should.
Yep, yep, yep, yep.
I should not give any additional figure to my investor. On the basis of first year, I am saying that the top-line growth will be 20%. In case it further improves, definitely I will change my guidance in the coming quarters.
Sir, you are right on it.
First quarter only.
Sir, you are absolutely correct on your perception, but only when the MD speaks, there should be merit on what she is also alluding to. There should not be a difference.
Sir, you can talk to her offline.
Okay. If she would have joined the call, yes, sir. If she would have joined the call for this hour, it would have worked much better. That's only the suggestion, sir. Whether it is there or not.
We don't have any issue.
Yeah, thank you, sir, and all the best to the team.
Sir, you are already talking to the Director of Finance of the company.
Yes, sir.
We are on the right path.
Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to Bhumika Nayan from DAM Capital Advisors for closing comments. Bhumika.
Yes, sir. Thank you to all the participants for participating and being on the call, and the management for giving us an opportunity. Thank you very much, and wish you all the very best. Any closing remarks from your end?
No, Bhumika. It's already done.
Thank you. Thank you. Thank you. Thank you.
Thank you. On behalf of DAM Capital Advisors Limited, that concludes the conference. Thank you for joining us, and you may now disconnect your line.