Welcome to [audio distortion] Q2 conference call. DAM Capital Advisors Limited. As a reminder all participants will be in the listen only mode. There will be an opportunity for [audio distortion] after the. [audio distortion] Should you [audio distortion] during the conference call, an operator, then [audio distortion] zero phone. That this conference recorded. Over to Mr. Kishan Gopal from DAM Capital Advisors. Thanks sir.
A very good evening to [audio distortion] Thank you for joining to Engineers India FY27 conference call. From the management, Engineers India being represented by Sanjay Jindal, who is Director Finance, Mr. Shubham Borade, who is the [audio distortion] company and Mr. Vivek Midha, Chief General Manager. With that, I would [audio distortion] the conference to the management for opening remarks. We will have a Q&A session. Over to you, sir.
Thank you, Mr. Kishan Gopal ji. Good afternoon, everybody, and a warm welcome to all the investors who are attending the investor call. We have declared our financial results for the second quarter ended 30th September 2026 today. Company's order book position has reached its all-time high and stands at INR 20,421 crore as on 30th September 2026, as compared to INR 14,424 crore as on 30th June 2026. Order inflow in year up to second quarter of financial year 2026/27 stands at INR 7,428 crore. On the standalone results, we have declared results of quarter and half year ended September 2026 on 30th October 2026. As regard to financial performance for the three month ended September 2026, the company has registered a turnover of INR 802 crore, which is to INR 800 crore in the first quarter of financial year 2026/27.
Turnover from Consultancy & Engineering segments stood at INR 594 crore and from the Turnkey segment at INR 208 crore. During the current quarter ended September 2026, the company has recorded profit before tax of INR 229 crore in comparison to INR 145 crore during the first quarter of financial year 2026/27, showing an increase of around 58% in profit before tax and profit after tax of INR 180 crore in comparison to INR 109 crore during the first quarter of 2026/27, showing an increase of 65% increase in PAT. Notably, EPS for the quarter ended September 2026 stood at INR 3.20, which is June 2026 at INR 1.93 against the face value of INR 5 per share. Operating margin during the second quarter of financial year 2026/27 stood at INR 152 crore, that is 19%, which is INR 108, that is 14% during the first quarter of 2026/27.
It means our operating margin have increased from 14% to 19% in the second quarter of current year. EBITDA, including other income of company during second quarter 2026 stood at around INR 240 crore, that is EBITDA margin 27% in comparison to INR 155 crore EBITDA margin 19% during the first quarter of 2026/2027. It means from the first quarter to second quarter, our EBITDA margin have increased from 19% to 27%. On the half yearly front, up to 30th September 2026, the company recorded profit before tax of INR 375 crore in comparison to INR 243 crore and profit after tax of INR 288 crore against the INR 185 crore up to September 2025, showing an increase of 54% in profit before tax and around 56% increase in PAT.
Operating margin for the first half year of 2026/2027 stood at around 16% in comparison to 9% in the first half year of 2025/2026. EBITDA of the company for the first half year ended September 2026 stood at around INR 395 crore, EBITDA margin 23% in comparison to INR 265 crore, EBITDA margin 14% for the first [audio distortion]
Ladies and gentlemen, management line seems to be disconnected. Please wait while we reconnect them. Ladies and gentlemen, management line has been reconnected. Thank you for patiently holding. Over to you, sir.
I will start again from the EBITDA. EBITDA including other income of the company for the first half year ended 30th September 2026 stood at around INR 395 crore, which was INR 265 crore for the first half year ended 30th September 2025. Our EBITDA margin have increased from 14% to 23% in the same case. In the first half year of 2026/2027, the company achieved a turnover of INR 1,603 crore in comparison to INR 1,758 crore in the first half year of 2025/2026, with turnover from Consultancy & Engineering segment amounting to INR 1,093 crore and INR 510 crore in Turnkey segment. Notably, in the first half of 2026/2027, our revenue mix has been changed from 47% in Consultancy segment and 53% in Turnkey segment in the first half year of financial year 2025/2026 to 68% in Consultancy segment and 32% in Turnkey segment.
The Consultancy segment has higher margin as compared to Turnkey segment. The company is maintaining a healthy earning per share in the first year of 26/27. The earning per share stood at INR 5.13 per share for the first half year ended September 2026 in comparison to INR 3.29 per share for the first half ended September 30, 2025. This is against the face value of INR 5 per share. On the consolidated front, the company earned a profit of INR 197 crore for the quarter ended September 30, 2026 in comparison to profit of INR 158 crore for the quarter ended June 30, 2026. For the half year ended September 2026, the profit stood at INR 355 crore in comparison to profit of INR 149 crore for the first half year ended September 30, 2025. Thank you and over to Kishan Gopal.
Hello?
Yes sir, you are audible.
Yeah, okay. We can start question answer.
Sure, sir. 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 the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Yes, good afternoon, sir, and congratulations on a very, very good set of numbers. My first question is, was there any one-off in the Consultancy segment? The margins are pretty, margins are 30% compared to our usual run rate of 23%-24%.
Yeah, you are right, sir. For this second quarter, this is around 30%.
INR 30 crore. So, if we adjust the INR 30 crore for-
30%.
No, no, sir. My question is, sir, was there any one-off for anything you have booked for the past period in this quarter? Is that the reason why the consultancy income is very high, or is it that everything is as usual?
No, sir. This time we have changed the business mix. In the last first half year, our Consultancy segment was 47%. Execution was 47%. Now this time, turnover from the Consultancy segment is 68%. From the LSTK segment is 32%. Since margins in the Consultancy segments are higher, therefore profit is also higher. As such, there is no one-time item.
Is it fair to expect that this 30%, most of it is sustainable going forward? Is the number which one should look at for the maybe going forward, given that the mix has changed?
Definitely, we will maintain our 24%-25% segment profit in the Consultancy segment on overall basis, yearly basis.
Understood. My second question is, sir, of course, the presentation has not been uploaded as of now. Is it possible to give us the breakup of order inflow for the quarter between the two segments?
It is uploaded, but I will tell you the figure. Our order inflow for the current first half is INR 7,428 crore.
Yes.
Out of which, INR 5,762 crore is from Consultancy segment, and balance INR 1,666 crore is from LSTK segment.
Understood, sir. Understood. My third question, sir, given the fact that, of course, you have already, I think, around INR 7,400 crore as we speak, for the order inflow. If I remember correctly, I think we had guided for INR 8,000 crore order inflow. Would you like to revise our target and-
Definitely, sir, we will cross the figure of INR 8,000 crore.
Can you give the new guidance, the new guidance?
No, no. We are putting all of our efforts to cross the figure of INR 8,000 crore.
Okay, understood.
I hope next time we will revise the guidance on the count of this, if required.
Understood. My last question, sir, how is the pipeline developing in the Middle East? Are you seeing some recovery? I think things are stabilizing now. Are you hopeful that we will be able to book some order inflow in this fiscal year?
[crosstalk]
I am just responding to this. Gentlemen, you know that the situation is not all right in the Middle East. Still, that situation is on. We will have to be hopeful on this. Businesses, we are doing a little bit well, and we are progressing and bidding for the various jobs. In Saudi, we are still waiting because the situation is not good there, because maybe attacks are still there. Let us hope for this. However, we have recovered this from the Africa side. Let us see how it goes, because the situation is not normal in Middle East at this point of time. We will have to wait for some more months.
Understood, sir. Understood, sir. Thank you, and all the best, sir. Thank you.
Thank you. The next question comes from the line of Sanchita Sood from RoboCapital. Please go ahead.
Yes. Thank you for the opportunity. Sir, my first question was that, what kind of revenue growth can we see for this financial year and FY 2028 as well? As well as some guidance that you could give on what kind of EBITDA margins we will be doing these two years.
We are taking into consideration the current order book. We have already given that we will be achieving a revenue of around INR 4,200 during the current financial year. Going forward, definitely we are taking into consideration the order book, the further growth of around 10% in the revenue side.
Okay, got it. Sir, my second question is, what kind of order inflows can we see in H2 of this year and next year?
Mr. Vivek, [inaudible]
I am just responding to sir. We have already secured, you have seen that this is INR 7,400 crores we have secured in this quarter. We have, in fact, certain more orders have been received. As of today, we stand at INR 8,100 crores. As of today, we stand at INR 8,100 crores. Let us hope that we will achieve some of the more business out there. We are working towards it. Let us see how it goes. We still have six months to go.
All right, understood. Thank you. That is all from my end.
Thank you. A reminder for all the participants. In order to ask a question, you may press star and one on your touch-tone telephone. A reminder for all the participants that in order to ask a question, you may press star and one on your touch-tone telephone. The next question comes from the line of Deep Sanghavi from Dalal & Broacha Stock Broking Private Limited. Please go ahead.
Yeah, thank you. Thank you so much for the question, and congratulations on a great set of numbers. My first question would be that you had guided for INR 4,200 crores of revenue for FY27, right? With a 55%-45% split.
Around INR 4,200, INR 4,300.
Yeah, correct. That come with a 55%-45% split, right? Turnkey, Consultancy and Turnkey, on an average, on approx basis. That comes out to almost INR 1,900 crores of revenue from Turnkey in the first two quarters.
This time, Consultancy segment is more and LSTK segment is lower because most of the big tickets project of LSTK segment is already over.
Okay.
New projects have been started, and it will take some time to get full revenue from these LSTK segments. In the current year, we expect that Consultancy segment will be more. It will be around more than 60% on overall basis.
More than 60%, is that right?
Around 60%.
Okay. Sir, just a follow-up to that question. Why are the margins at 4.3% for turnkey? Is there any reason for that or?
No, it is always-
Because the range, it generally is in the range of 6%-7%, right? That is why I am asking.
6%- 7% are okay, but generally, in the new projects, cost progress are not there. Therefore, profits are little, 4%- 5% behind. But as the project gets momentum, the profit will also get more.
Right. Sir, you had said that there are a lot of turnkey projects which will have faster execution in H2. Is that still the case? Are you expecting the execution to ramp up in H2?
Definitely, our execution in LSTK segment should ramp up because in the first half, it is 32% from the LSTK segment, and we are expecting it should be around at least 40% from the LSTK segment.
Right. Sir, the second question would be, it is on the nuclear segment. Just hypothetically taking a INR 10,000 crore nuclear project, a significant portion of CapEx would be towards nuclear reactor and the main, the nuclear island, right? Currently, we have opportunities in BOP and environmental studies, if I am not wrong. Could you give us a broad sense of how much of the project cost is addressable to EIL and BOP and environmental studies?
No, it's like this. I am just responding. On the nuclear side, we know that there are a lot of opportunities coming, but all of them are the initial stages. They are in the study phases. Some of them are in the environmental impact assessment study, some of them would be the initial phases of tendering. This phase would take some time, and time has to come because many of the project locations are still being finalized. We are working towards it. It will be a significant amount, but it will not be in this financial year. It will take some time, probably a year or so. Next financial year, we can see some good orders from there in this segment because we are also establishing our own systems in-house.
We have created verticals to handle all these things and sprucing up our manpower with all the kind of trainings and experiences. We are making them ready for all these jobs, and we are bidding for some of the assignments.
But sir, how much would, or like, for let's say-
We cannot tell you the figures. No, no. It is very difficult to tell the figures at this point of time. Depending on what kind of job is going to come and how much work we are going to come. It could be a detailed engineering assignment, could be a smaller assignment. If we get a bigger assignment, then the value will be making. So, it is very difficult to tell that.
No, I just wanted to understand if EIL will only do like BOP and environmental studies, or will there be a larger scope for the-
No, no. It is, it is EIL will be doing the engineering services, which will be balance of plant engineering consultancy and something related to construction supervision also, kind of engineering and supervision role, owner's engineers role, you can say.
Right. Okay, okay. Thank you. And the last question would be, are there any change orders or any provision write-backs you are expecting for this fiscal or the next fiscal?
Definitely, we have lots of change order which we are negotiating with our clients, and it is expected that all these change order will be settled in this financial.
Yeah. Okay, thank you. I will join back the queue .
Thank you. The next question comes from the line of Prateek Dugar from Intelsense. Please go ahead.
Am I audible?
Yes, sir, you are audible.
Okay. Thank you for the question, and congratulations to the management on a good set of numbers. Sir, actually, I wanted to ask about the consultancy division only. If you look at the specific margins for the consultancy division, what we are seeing that it has come at around 30%. There was this question by another participant also. Is this a normal course of margin that we can expect going forward, or was there a one-off in this time?
First of all, in this quarter, there is no one-time payment, no one-time payment or settlement. On the half-yearly basis, it is 27.7%. On overall basis, we are expecting that it will be settled around 25%. We are sure that we will maintain the figure of 25% in the consultancy sector because in the projects, the revenues are always cyclic. On the conservative side, we are ensuring that we will maintain our traditional margin of 25%. But definitely in this quarter, it is 30% without any one-time.
Okay. Sir, regarding specifics of the depository orders that we had got, I think last FY 2026, the depository order execution had begun along with the Dangote order execution. FY 2027 is where Dangote should ramp up and depository orders should peak. With that mix, and obviously our overseas consultancy order would also again sort of accelerate in FY 2027. Wouldn't these specific orders like add up to the margin and the guidance of 25% you are giving? Is it on the lower side, or you are saying that 25% would be what one should expect and there's no upside to that?
No, definitely there is on the upside because we have lots of overseas orders which are under execution. Basically, it depends on the cost progress of the projects. 25% is the minimum figure I have given on the conservative side, because we are sitting on the half-year results. On the half-year basis, it is around 28% in the first half figure. So, I am saying we will definitely maintain our traditional figure of 25%, and definitely this time, this figure will be higher than the 25%. But exactly, I cannot commit that it will be 30%.
And sir, if I extend-
Definitely, it will be higher than 25%.
And sir, if I extend my view to say, first half of FY 2028, where Dangote would sort of be peaking, and we would be having a higher run rate on the revenue side as well. So, by H1 of FY 2028, do we see a meaningful inflection in the bottom line for the company?
Definitely, our bottom line will be healthier, more and more healthier in the coming years, because we are having order book of more than 20,000, and we will yielding more and more revenue, and our bottom line will be healthier in the coming years.
Okay, sir. Sir, depository orders that we have, what should be the margins on specifically on the depository orders? And if you can explain, like, why do we categorize this at a difference? I mean, why do we not take it as a consultancy order only? Why is it categorized differently?
In the Depository segment, only fees part is coming in the top line. But in the Depository segment, all the plant and machinery cost and material cost is coming in the top line. It is just like LSTK business. So, that is why in the Depository segment, profit margin is around 7%.
Okay. So, once the depository starts tapering off in H1 of FY 2028, then I think margins would again sort of be better for that period, because the lower margin segment is coming off, and Dangote would be peaking at that time.
We are keeping balance between the Consultancy segment and the Depository segment. In the Consultancy segment, we are focusing about 60%-65%, and balance from the LSTK segment. So, it is a balancing game. We are not leaving LSTK business totally.
Okay. Thank you, sir. That will be all from my end. Congratulations once again.
Thank you.
Thank you. The next question comes from the line of Amit Anwani from PL Capital. Please go ahead.
Hi, sir. Thank you. First of all, congratulations for very good numbers.
Thank you, sir.
The first question, sir, in terms of order pipeline again. This year we did a very commendable job. We are already there in terms of the guidance which we had given, and we will be easily surpassing. There was a major contribution to this from the overseas consultancy, especially the Dangote orders, which we won. We just wanted to understand the order pipeline outside India, geography-wise. Are we looking for more large, lumpy orders in the pipeline in next 12- 18 months? Second, what one should look for the order guidance for next year? Are we going to continue this run rate of INR 8,000 crore plus for next year after that?
Mr. Vivek Midha.
Amit, it's like this. We are bidding for a number of the projects, and you are seeing that something comes up in between. It's very difficult to tell you that which order is going to come, but we are bidding for number of projects all across the world, and in various territories also, and including India also. We are hopeful that we should be able to get more business out of it. As I already told you on the call that we have already reached INR 8,100 crore. Next year, naturally, it would remain at least INR 8,100 crore we'll definitely achieve, because we have been consistently maintaining almost at the same range. If everything goes on, politically everything remains same, and market remains the same, CapEx are invested, then we'll continue to grow and continue to improve our business opportunity.
Right. Second, in Middle East, we were in some long-term agreement with Aramco and expecting some orders. Any update on that, and what is the Middle East order book and-
Unfortunately, situation is no at this point of time. It is always published, it is already published all across. The situation is not stable there. We have not a major order we have anticipated, but we are bidding for various contracts out there. So, if something comes up, we will update you towards the end of this next financial. Sorry, end of this financial year, probably next quarter. By the time, hopefully, the things should stabilize or the war should stop. But as of now, there is lot of issues there in houses.
All right. Lastly, in terms of guidance for next year, we said, well, 10% plus. I think the order wins are very strong. Is it again a conservative guidance for next financial years also? I think we can-
Right now, it is conservative, but we are going to improve that. Maybe we will improve it. It depends on the situation in couple of years.
Right. Expectation is that the consultancy will still continue to be more than the turnkey. Last question on the-
Normally, it is likely it is always somewhere around 60%, 65%, and 60/40 ratio remains. It will always remain in that range somewhere. Sometimes you get a big ticket once, then the consultancy portion becomes heavy. Then sometimes you get a less figure, but it should always be in this range. Sometimes it is 60, sometimes it is 50. So, definitely it will be that range.
Lastly, on the other income, this other income number was higher this quarter at INR 65 crores. What contributed to that?
In the other income, there is a dividend from the NRL to the tune of INR 21 crores, and another dividend of INR 11 crores from the CEIL. Balance is regular income. Income on our surplus funds, rental income, and some other miscellaneous income.
Understood. And Rama-
Especially there is-
Yeah.
Especially there is increase on account of dividend from the CEIL and NRL.
Will that continue, or how is the dividend looking like for this full year?
We are receiving dividend on continuous basis from the NRL and CEIL.
Okay. Lastly, sir, Ramagundam, how is the situation there? I can see the numbers there also has been better, so outlook there would help. Thank you.
Definitely Ramagundam is doing better. In this quarter, we have got the profit of INR 20 crores, and in the first quarter it was INR 42 crores, and total profit up to this period, half year, INR 63 crores. So, we are expecting more and more good news from the RFCL.
Understood, sir. Thank you, sir. Thank you so much.
Thank you. The next question comes from the line of P. Jha, an individual investor. Please go ahead.
Thank you. First of all, some extraordinary numbers.
Thank you.
I would like to understand the domestic possibilities, especially in coal gasification and in green hydrogen, and in your 2G refinery, besides any other storage of crude. These, if you can throw light respectively on them for this current year. Yes, please, as you decide.
Yes, sir, with respect to the coal gasification, after this Government of India's initiative of additional INR 34,000, this funding for this VGF funding, there are studies which are on this. We are bidding for a couple of projects, the major projects also. Let's see how it realizes. Various studies we are bidding, and some of the studies we are also carrying on. One work we are carrying out for NTPC. That is the current situation of it. Let's see towards the end of this year, if the studies are completed, the studies are awarded, and then they go for the financial closure and go for the implementation of the project. That is the current situation of coal gasification. Regarding hydrogen, in this case, nothing much that we have at this point of time.
We are still looking for the good opportunity, and bio-refinery also at this point of view. There is no major significant work. However, we are implementing one CBG plant for our own. We are implementing it with our own investment. We are also thinking of having another CBG plant wherein we are investing on our own, in line with the government guidelines. That is one of the opportunities there.
How about crude storage, the thing that [crosstalk]
You know that after this, ISPRL is going to invest in, is thinking of having more strategic storages. All across like MP and Bina, MP, Dina, and there are other few, three more locations are there. Those will be opportunities available for us to get ready, because ISPRL, most of the projects have been done by us, strategic storages, and we are very good in strategic storages. Those will be there. Otherwise, other storages are part of the projects, major projects, so these are there. Whenever any major project comes, the crude storage and terminal, it always comes as a part of it. As well as the strategic storages, these ISPRL projects are on the anvil, which are published. We will be bidding for those, carrying out.
Outstanding. Another very broad, this thing that for the domestic order book for the remaining part of the year, or let us take during the next financial year also, what is the expected order book that you expect, domestically speaking? From all these segments, if you have any, the management would have some idea.
I can talk about the business intake at this point of time. It is around INR 8,100 we are there, so we are going to add something more. The next year we are going to maintain it like this. Overall order book is around INR 20,000 crore, wherein almost INR 60,000 crore is, that is almost 60% is from the overseas, and balance will be from the domestic, so around 40%. So, let us see. Typically, it remains around 40%, 50% we can be having from domestic market, if we maintain that percentage.
As of date on the order book portion, we have 75% from the Consultancy segment. This is good on the part of Engineers India, because we are higher margin in the Consultancy segment.
Naturally. Yeah, absolutely. Extraordinary, sir. Great feat achieved. All the best. Thank you.
Thank you.
Thank you. The next question comes from the line of Akshay Kulkarni from DB PMS. Please go ahead.
Thank you for taking my question. Hope I am audible to you.
Yes, sure.
My first question is on the INR 4,200 crore Dangote order. Given the ongoing court case in Kenya around the proposed refinery project, is there any impact on the project timeline or EIL scope of work? As the work commence on EIL mandate, is there any risk on execution of the order at this stage?
Just don't go by the news. The work is already on. We are working on the engineering side of it. That is contractor's, that is owner's perspective, and he is managing it, and he will handle all the legal issues and all. As of now, we have not been biased on this, but we are working on this, and engineering is on this project.
Okay, thank you. The next question on order book, basically, on a broad basis, what could be the approximately split between consultancy and a turnkey in FY 2028 order inflow? Should we expect the turnkey order inflow to stay range around INR 3,000 crore in the next year?
So typically, it remains, this year it is around 25%-30% is from the LSTK, and rest is from the consultancy. Somewhere it generally remains, this side is consultancy heavy. This order book is, the order inflow is being consultancy heavy. But typically, it remains 60/40, is the normal ratio, 60% consultancy and 40% LSTK. Generally, it remains like this.
What about the order inflow for turnkey? It will stay around INR 3,000 crore?
[inaudible ] if your 8,000, it's around 8,000, then you can presume that around 30%, 40% from that.
Okay, cool. Our next question is on operating margin. You have previously guided around 15%-16% EBITDA margin. Are you confident on reaching this at a same level?
Yeah, we are sure to maintain our EBITDA margin because we are executing more and more Consultancy segment, and margins are protected there.
Okay, cool. Just a last question. Any update on IOCL Paradip Phase II and also on BPCL Andhra?
IOCL Paradip Phase II is still to be decided by the government, by the client, because I think they are looking for the land. As soon as they sort out the land, then the second phase will come. We will have to wait dependent on them. BPCL Refinery, it is still in the consultancy selection and study phase. Let's see. Towards the end of this year, some tender or something should come. They should come up with the final implementation plan for this.
Okay, cool. Thank you. That is it from my side.
Thank you. The next question comes on the line of Shubham Borade from ICICI Securities Private Limited. Please go ahead.
Hi, yeah. Thanks for the opportunity and congratulations on a very well set of numbers. My question is, how is the progress on execution for Dangote order going on? The first one which we got in January 2026.
It is progressing well, and a lot of ordering is being done by the client and all. Our teams are also working on the exhaustive engineering is on this point of time. Teams are deployed there on the engineering activities. So, work is going in full blast.
Can we expect some number in percentage terms, if possible?
I don't have the percentage of progress at this point of time, boss. We'll have to see, because in this financial, it was awarded somewhere in January, and probably in this financial, we'll have to see. I don't have the percentage progress of exactly at this point.
Sure, sir. Sure. Thank you. Hello? Hello?
Participant line seem to be disconnected. The next question comes on the line of Anubhav Mukherjee from Prescient Capital. Please go ahead.
Hello?
Yes, sir.
Sir, thanks for the opportunity and congrats on very strong results. I joined a bit later, so this might have been covered, but if I look at the Consultancy segment EBITDA margin, it was 30% plus this quarter. Is there any one-off or any benefit from project closure? Yeah.
Our segment profit from Consultancy segment is 30%, and it does not include any one-time item. It is from the leverage.
Got it. Sir, typically, when we work on larger projects like the Dangote project, is the margin better for that? Do our Consultancy segment margin move up? Yeah.
Definitely, with the Dangote project, our margins will move upside only. But Dangote project is still picking momentum. So definitely in the coming second half and in the next year, full reflection will be there on the profit side.
Got it. And sir, will it be possible to share like how much of the order book, consultancy order book of INR 20,000 crores that we have, will be like get executed over next two or three years?
Out of INR 20,000, around 75% is from the consultancy segment, and around 55% is from the overseas business. And these projects will be delivered between 3-4 years.
Got it. Okay, I'll get back in touch. That's all the questions I have.
Thank you. The next question comes from the line of Saania Jain from Care PMS. Please go ahead.
Hi, thank you for the opportunity and congratulations on the good set of numbers. Just want to take clarity that the recent Dangote project that we got for INR 4,000 crores, given it is a greenfield project, will this project still have the execution rate of 3-4 years?
Yes, ma'am. Generally, Dangote projects remain for 4-5 years.
Okay, got it. Wanted to know a bit more on the competitive analysis. What would do in both the domestic and export market? What would be, can we assume is our strike rate in different sectors and in both domestic and export market?
Midha ji.
Can you repeat this question? I missed out on that question, please. Can you please do that?
Yeah, just wanted to understand a bit more on the competitive intensity in the industry. What would be our-
Yeah.
strike rate in both the domestic and export market?
Ma'am, it is very difficult to say what is the strike rate because in India, we are the leaders. We beat them in many companies in competition. All the mega jobs, we beat them in competition. And internationally also, there are a number of brands available. So, it all depends. It is very difficult to tell you in terms of percentage, how much to get the business. Our target is to get each and every job which we bid.
Right.
Market is quite broad.
Got it. And just wanted to understand if there is any update on the CPSE pay revision. Do we expect any increase for the labor cost in FY 2027 or 2028?
Yeah, right now, as such there is no commission for the pay revision. Whenever it will come, definitely we will take care of that.
Do we expect it to come by FY 2028 or later?
Yeah, we cannot say right now. Basically, right now there is no commission for that, so we cannot say that when it will come. It is up to the Government of India.
Okay, thank you.
Thank you. The next question comes from the line of Mayur Parkeria from Scripbox Wealth Managers Private Limited. Please go ahead.
Hello, am I audible?
Yeah.
Yes, sir.
Yeah, so thank you for taking my question. I joined the call a little late because I was still believing, I still thought it was 4:30. I got late intimation about the revised timing. Anyway, sorry if there is a duplication. I am trying to understand more in detail the company. Sir, I just wanted to understand that, assuming that if the global geopolitical situation settles down, let us say, it is assuming, so assuming theoretically it settles down tomorrow, would you say that from our core capabilities perspective on refineries and gas value chains and terminals, do you believe that the opportunities post this would increase for us, or will it remain the same, or has it gone down relative to what it was in the last four, five months?
Midha, [inaudible]
Naturally, the opportunities would increase for us. When the market is unstable, the project CapEx investment is not coming, and CapEx investment-
Right
is stabilized, then the opportunity will be stagnant. As soon as the market opens, more projects come, we will get an option of bidding more, and more market tenders will be out. So actually, it is going to increase for me with this kind of experience. Because we have-
Okay, so one minute-
international. Yeah, tell me.
Okay. Sorry, sir. Sorry to interrupt. You can please finish. I will still-
No, no, that is fine. I have concluded my answer. You can go ahead. Please.
Is it only primarily because of the fact that because of the disruption, the order, the tenders are not happening, or is it also because of the fact that the current war situation has actually disrupted a lot of refining capacities, and to that extent, there can be a meaningful jump in the opportunity over the next one year once the war situation settles down? For a player like us with global capabilities and relationships, the potential can be much more. Is that also a parameter, or it is just the fact that the current tenders are not coming?
It is like this. Opportunities somewhere would be going down and somewhere would be increasing. The impact of the market is the impact of the business in Africa has increased just because of this, because there is an alternative market created and alternative opportunities available to some other manufacturers, to producer. We setting up projects all around the world, so that is an opportunity created somewhere else. At somewhere else, the opportunity has gone down because in the Middle East, no major CapEx is coming or probably it will take some stabilization. It is reduced, but it is a temporary phase. If hope everything goes fine, then the opportunity will come out, and we will see because we will also be participating everywhere. Everybody is right now focused on getting the crude and getting the crude and managing their internal resources.
Later on, when everything is fine and projects and CapEx investments would come, India, we have not seen any major impact there. If any project has to come, it is coming. There is no visual project impact on this.
Okay. Sir, in the earlier call, your answer, have you mentioned that we were looking at around INR 8,000 crores of annual order in. Was that because in one of the answers you mentioned about INR 8,000 crore? I was just trying to understand. Was that the number which-
We had always told that we will be in the range of INR 7,800, INR 7,400. Last year's order we will try to match. We are meeting this year's also, and we have already crossed that, almost reached that order, inflow projection. We are hopeful it will be-
Sir, will it be also fair to say that despite so much of disruption going on, we are in a position to get this outlook, or our turnovers are much lower currently, revenue flow from the order book. We have already reached INR 20,000 crore, and we are talking of annual inflows of INR 8,000. In a normal situation, once this settles down, will it be fair to say that this number can theoretically or in your best guess estimate, this can actually materially go up, is a fair way to look at, or we believe that our target would be only in the region of INR 8,000 crore? That's how one should look at?
We will always be optimistic of having the higher number. We will always be optimistic. But to stabilize ourselves at this point of time, the way we look at it is the projection we have given. But we are always trying to improve on that, and 10%, 15%, 20%, we are definitely going to improve from the existing target, if everything goes fine. Our objective would be to get more, as more as we can do.
Great. Sir, last question from my side. Sir, in the last couple of years, while currently we have again started a new cycle over the last two, three years, and we have seen a good accretion in the order books which have started, but there was a very big lull period of decade before that. Over these couple of years, medium term, can you lay some qualitative around our capabilities which have increased in other segments, which helps us to diversify and open up newer opportunities which can come in over the next two years, three years, not over the next 10 years, but over two, three years, based on what capability enhancements which we have done anything, any specific things you can put a highlight because I have missed that in the previous readings of mine.
Can you just highlight that which can be a potential in the next two, three years for us?
Definitely. It's like this. One has to continuously grow. Earlier lull period you're talking about, it was because of some market assignments were also on there. The market was also stagnant, and not many projects were there. Every company has that kind of phase from time to time. That was the earlier phase. We have also started centering ourselves. We are seeing the kind of diversification we have done. We are not only dependent on the hydrocarbon. We are all across key sectors. We are into infrastructure, we are into ferrous, non-ferrous, we are into now strategic storages, we are into going into fertilizer. You're seeing all these new segments we have added. Today, infrastructure contributes to my order into around 20%, 25%. In between, it was around 40%.
The hydrocarbon, it is definitely is the core market for me, but I've also diversified into these segments. We'll also gone into the fertilizer. You're seeing that lot of fertilizer projects we have got in the Middle East, as well as in India also we are doing various projects. So, we are also upgrading ourselves. At the same time, we are training, we are improving the training of our people. Right now, we are focusing on the new segments like new fuels. There is opportunities shown in the market, opportunities there in the market with respect to the new fuel. So, we are training our people and making them ready. It's always continuous upgradation depending on what kind of opportunities are available in the market. Every company has to improve upon itself, improving the productivity of its employees.
All those factors we are working on, and that has given us the results. Hopefully, it should be better now.
Okay, sir. Sir, I'll come back in the Q&A. Thank you so much. Wish you all the best, and great set of margin performance there. Thank you.
Sir, thank you.
Thank you. The next question comes from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead.
Sorry, sir, again, like, I also joined at 4:30 because somehow the meeting was showing up at 4:30 on the calendar. Sir, if you could share, like, what are some of the large domestic consultancy orders that you are expecting in the next one year or so? If you haven't already covered that, if you can take us through that would be very helpful.
No, it's like this. You are already aware that there is an upcoming refinery which is coming, so we'll be targeting that one. Paradip is on the anvil. There's a phase II contract will be there. There are various minor revamp projects for BPCL and other refineries is there. There is an opportunity for the strategic storages, so we are targeting there. We are working in the non-ferrous segment. We are targeting some opportunities out there because some companies are thinking of putting up an aluminum smelter and all. So, all these segments we are working. Infrastructure, there is lot of investment out there, so we are working towards it. We have recently got a data center project on turnkey basis for the data center for one of the clients, Power Grid.
These opportunities are there, and we are trying, and we are getting the assignments also, so that we are working towards it. Several kind of projects are there.
Thanks. Also, for like overseas consulting projects, how do like margin for those projects compare to like domestic? Are those typically higher-margin projects or in line with the domestic consulting projects?
Our consultancy margins remains the same, generally remains the same. We don't overcharge anywhere, but it will always remain the same segment and almost in the same range. Somewhere we make it good.
Okay. Got it. Thanks.
Thank you. The next question comes from the line of Darshan Shah from Multi-Act PMS. Please go ahead.
Hello? Am I audible?
Yes, sir.
Yeah. Just one question. Based on this INR 8,100 crore order inflow that we have till date, around incremental INR 670 crores of order inflow, what would be the split between consultancy and turnkey? Would it be largely Consultancy segment?
Yes, it is particularly more of consultancy type.
Okay. And one more question on the credit terms, right? So, for the international Consultancy segment, what are our credit terms, specifically, let's say, for Africa?
Credit terms means, what is it exactly you would like to understand in credit terms? Payment terms?
No, in terms. Yes, yes.
Payment terms are fine. We are always progress linked with respect to your engineering progress as well as the project progress. They are mixed.
Yeah, in terms of, is there a letter of credit or, just wanted to understand that.
No, it is like this. Not necessarily you need a letter of credit for that.
Okay.
Most of the clients are known in the Middle East and all, so they are reputed clients. They never default on the payments and all.
No, specifically I am checking on Africa.
Africa, we have been working with this client for a long time, so we know the stability. And before entering into any of the agreements, we also do our due diligence, that is paying capability, we always check. We do not work with the unknown clients. We verify their credentials also.
Sure. Okay, thank you.
Thank you. The next question comes from the line of Deep Sanghavi from Dalal & Broacha Stock Broking Private Limited. Please go ahead.
Yeah, thank you so much for the question again. My question was regarding this. Out of the INR 8,100 crore order inflow till date, how much would be from the Middle East from this?
INR 8,100 crores, Middle East would be a little bit limited, something around INR 500 crores or so, INR 500 or INR 600 crores.
We haven't received any orders in Q2, right? Because I think in Q1 also it was the same kind of-
We have got smaller orders. We have got smaller orders, that segment.
Right. Just a follow-up to that. MD sir and the AGM has said that there's, in the kind of 2-3 year range, there's almost around a billion dollar of opportunity in the Middle East regarding strategic storage projects and all, pipeline projects as well. Are we bidding for these projects there? If there will be any projects, we will definitely bid, right?
No, definitely there's lot of opportunities out there, provided all that market stabilizes. There are a number of tenders we are bidding for various EPC contractors. Hopefully, let's see, the result comes, because these are long gestation bidding cycles. They come in time to come. We'll let you know. But the opportunities are there, provided everything stabilizes.
Sure. Sir, just a last question from my side. I know one of the people have asked this before, but if you can please guide any, in a broad range as well, that'll be fine. Because we generally aim for INR 8,000 crore per year of order inflows, right? If you can guide something for the next fiscal, FY 2028, that'll be very great. Thank you.
Next financial year, it will be at least minimum INR 8,100 crore, INR 8,000 crore or more.
Okay, perfect. Thank you. Thank you so much, sir. Thank you. Again, a great set of numbers.
Thank you so much.
Thank you. Ladies and gentlemen, we will take this as the last question for today. I now hand over to the management for closing comments. Over to you, sir.
Thank you. Thank you very much. Thank you very much. Thank you so much. We obviously hope we could meet the expectation of our investors. Thank you, everyone. Bye-bye.
Thank you. On behalf of Engineers India Limited and DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.