Good evening, ladies and gentlemen, and welcome to the G R Infraprojects Ltd. results call for the quarter and nine-month ended December 31, 2025, hosted by HDFC Securities. 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 this conference call, please signal an operator by pressing * then 0 on your touchtone phone. Please note that this conference is being recorded. Today we have on the call Mr. Ajendra Kumar Agarwal, Managing Director, and Mr. Anand Rathi, Group CFO. Before we proceed, this conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call.
These statements are not a guarantee of future performance and involve risk and uncertainties that are difficult to predict. I now hand the conference over to Mr. Parikshit Kandpal from HDFC Securities. Thank you, and over to you, sir.
Thank you, Ajendra. So without taking any further time, I will now invite Ajendra sir to give a brief industry overview followed by Rathi ji on the financials. Over to you, sir. Thank you.
Good afternoon, ladies and gentlemen, and a warm welcome to the Q3 Financial Year 2026 earnings call of G R Infraprojects Ltd. Thank you for taking the time to join us today. I hope you and your families are keeping well. I am joined on the call by Mr. Anand Rathi, CFO, and Mr. Ankit Maheshwari, Deputy CFO of the company. I will begin with sharing our performance during quarter and our overview of the infrastructure sector, after which Ankit ji will take you through the financials in detail. We will then open the floor for questions. During Q3, the company has recorded the revenue from operations of approximately INR 2,039 crore, which is up by 36% from corresponding period in previous financial year. The EBITDA margin, excluding other income for the current quarter, stood at 10.07%, as against 12.82% in the corresponding period in previous financial year.
Profit before tax is INR 274 crore, which is up by 18% from corresponding period in previous financial year. During the quarter, the company has repaid the debt of INR 262 crore, which has resulted in improved debt-equity ratio to 0.03, which is one of the best in the sector. The company has recently won the Battery Energy Storage System project of INR 414 crore for NTPC plant. As on date, the company's order book stood at INR 20,250 crore approximately. As on date, one DBFOT toll project of INR 3,700 crore approximately is awaiting appointed date. We have bids of INR 20,000 crore approximately, which are yet to be opened in highway and railway tunnel and other business units. Government commitment to infrastructure remains firm. I would first like to present some key highlights from recent Union Budget for financial year 2026/27.
Public capital expenditure on infrastructure was raised by 9% from financial year 2025/26 to record INR 1,220,000 crore, representing roughly 3.1% of GDP. The budget also proposes establishing an infrastructure risk guarantee fund to enhance the confidence of private development through carefully designed partial credit guarantees. Roads and highways with INR 309,000 crore and railways with INR 280,000 crore together account for nearly half of the CapEx, highlighting that connectivity investments continue to be the central pillar and focus of the national growth story. Moving on to the sector highlights, the road sector continues to show healthy momentum. The Ministry of Road Transport and Highways, NHAI, etc., has set a target of building 10,000 kilometers of national highway this year after achieving around 10,660 kilometers last year. The actual awarding of NHAI in financial year 2025/26 has shown a significant slowdown.
However, the sector is moving out through marked by slow target tendering and intense competition into the recovery phase led by structural reform. India's national highway toll collections are expected to cross INR 100,000 crore in financial year 2027, driven by higher traffic volume, expansion of high-speed corridors, and changes in tolling systems. Further, NHAI's debt-to-equity ratio has fallen from about 50% in financial year 2022 to around 20% in financial year 2025, creating fiscal headroom to support more than INR 800,000 crore project pipeline in over financial year 2026 to 2028, including tunnels of significant amounts. While competition is expected to remain elevated, amendments in technical and financial qualification norms and shifts towards large BOT toll projects should reduce competition in the medium term. The government looks to prioritize the BOT model for highway projects in financial year 2027, aiming to enhance public-private participation in infrastructure delivery.
In railway and metro, focus has moved to easing congestion on high-density routes, improving freight movement, and strengthening multimodal integration through dedicated freight corridors and economic rail corridors under the PM Gati Shakti framework. Proposed seven high-speed corridors in the union budget are being positioned as growth connectors, linking major economic, IT, industrial, and cultural hubs across the country. Together, the seven corridors will span nearly 4,000 kilometers and are expected to be developed at an estimated cost of INR 1,600,000 crore. Under the PM Gati Shakti framework, three economic railway corridor programs covering energy, mineral, and cement routes, port connectivity, and high-traffic density lines have been identified: 434 projects with a total outlay of around INR 1,100,000 crore, Maharashtra leading in railway infrastructure activity with 35 projects with a total investment of INR 350,000 crore.
In power and transmission, India's power transmission distribution sector is seeing a strong investment to support raising power demand and renewable energy growth. India has the investment potential of nearly INR 4,500,000 crore in the power sector, including generation, transmission, and storage, in the next seven years. Further, with increasing renewable hubs pan-India, especially the power transmission and distribution sector, is seeing an investment potential of nearly INR 900,000 crore in the sector. Further to scale up the sector and maintain the grid stability, the government has also introduced energy storage obligations. The CEA estimates a need for about 236 GWh of battery storage of more than INR 100,000 crore. In Oil & Gas , India's Viksit Bharat Roadmap set up an ambitious goal for the nation: increasing domestic crude production of 100 MMT and refining capacity of 450 MMT per annum by 2047.
The budget has continued to unlock INR 150,000 crore of allocation, which will increase the opportunity for us in the EPC sector. India's logistics sector is set for a massive transformation and expected to grow at CAGR of 8% approximately in the next five years. Warehousing and distribution services are the most lucrative service segments, registering the fastest growth during the forecast period. Grade A and B warehouses are expected to grow at CAGR of 12%-12.5%, driven by increasing demand for high-quality infrastructure to reach 800 million sq ft in financial year 2029. We are focused on building a future-ready logistics platform. Our vision is to deliver high-quality, scalable, and technology-driven warehousing solutions that enhance efficiency, connectivity, and customer value across India's evolving supply chain landscape. For the remaining financial year, we expect order inflow to pick up subject to tendering activity and project award timelines.
Execution momentum is also expected to improve. Our strategy is to leverage this momentum by broadening our participation in multiple infrastructure sectors and strengthening our business diversification. Before I conclude, I would like to reiterate that our approach remains consistent.
Sorry to interrupt in between, sir. Your voice is not audible. It is breaking in between.
Is it audible?
Hello?
Yes, sir. You're on the link.
Hello?
Thank you.
Before I conclude, I would like to reiterate that our approach remains consistent. We are focused on financial discipline, timely delivery, progressive strengthening of our order book, and diversification. I would like to thank our clients and shareholders for their continued trust and support. With that, I will now request Ankit ji to take through the financials in detail. Over to you, Ankit ji.
Thank you, MD sir. Hello everyone. Here are the key highlights of quarter three performance. The standalone revenue from operations was INR 2,039 crore in quarter ended December 2025, which is increased by 36% year-over-year compared to INR 1,500 crores in the quarter ended December 2024. This increase was primarily on account of work execution being started in various projects, including Oil & Gas , power, transmission, and roadways business units. The consolidated revenue from operation was INR 2,308 crores in quarter ended December 2025, which is increased by 36% approximately compared to INR 1,695 crores in the quarter ended December 2024. The standalone EBITDA margin stood at 10.07% in quarter ended December 2025 from 12.82% in quarter ended December 2024. The decrease is primarily due to one-time claims income recognized amounting to INR 37.7 crores in quarter ended December 2024.
The EBITDA margin at group level has marginally decreased to 20.28% in quarter ended December 2025 from 21.82% in quarter ended December 2024. Profit after tax at standalone level increased to INR 232 crores in quarter ended December 2025 as compared to INR 169 crores in quarter ended December 2024. The PAT includes INR 35 crores net of tax of exceptional gain on sale of subsidiaries. Profit after tax in current year has increased due to better execution of the projects. Profit after tax at consolidated level decreased to INR 259 crores in quarter ended December 2025 as compared to INR 263 crores in quarter ended December 2024. The standalone net worth stood at INR 8,471 crores. At the end of December 2025, it was INR 7,888 crores at the end of fiscal 2025. The net worth on consolidated level is INR 9,200 crores.
At the end of December 2025, it was INR 8,500 crore at the end of fiscal 2025. The total standalone borrowings outstanding at the end of fiscal 2025 is INR 244 crore with debt-to-equity of 0.03 times. The total consolidated borrowing outstanding at the end of fiscal 2025 is INR 6,281 crore with debt-to-equity of 0.68 times. During the quarter, the company has made additions to the fixed assets amounting to INR 30 crore. The net block of property, plant and equipment, including CWIP and intangible, is INR 1,090 crore at the end of current quarter. Investments in our subsidiary companies in the form of loans and equity are INR 2,789 crore at the end of December 2025. The balance equity contribution required to be made from our operational HAM or BOT projects is INR 3,044 crore, of which we are expecting a contribution of approximately INR 500 crore in quarter four of current fiscal.
The working capital in days at the end of December 2025 is 93 days as compared to 117 days at the end of fiscal 2025. The decrease is primarily on account of a decrease in SPV debtor days. Trade receivables at the standalone basis are INR 1,614 crores, which includes INR 1,038 crores of HAM debtors at the end of December 2025. The trade receivables at the consolidated level are INR 631 crores at the end of December 2025. The unbilled revenue at the standalone basis is INR 851 crores at the end of December 2025. The unbilled revenue at the consolidated level is INR 739 crores at the end of December 2025. The inventories are INR 533 crores as compared to INR 538 crores at the end of fiscal 2025. I sincerely thank all our stakeholders, including employees, business partners, vendors, bankers, and auditors who have supported the company.
On behalf of G R Infraprojects Limited, I thank everybody for attending the earnings call. Thank you. I would now like to hand over the call back to the moderator.
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. Please use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question from the line of Abhinav from ICICI Securities. Please go ahead.
Yeah, Ajendra, thanks for the opportunity and congrats on a good set of numbers. The execution has been good for this quarter. If you look at revenue numbers, I could gather that this has been primarily on account of execution starting various projects. So I just wanted to understand what can we expect in the last quarter and in FY27 because we are guided for a 5% revenue growth last time around. I think we'll be surpassing that. So just your views on this.
So why actually we have been surpassing this 5% growth is because of the revenue which we have got from Oil & Gas EPC sector, right? So that actually helps us in surpassing that revenue. And we continue to bank on that particular sector going forward for next financial year as well. And if we talk about the quarter four, our revenue would be in the range of INR 3,000 crore, right? And for next financial year, again, we are targeting a growth of 10%-15% of revenue. Yeah.
15%. What was the revenue from Oil & Gas EPC?
For current quarter, it is around INR 400 crore.
How much can we expect this in the next year, this Q4 and FY2025?
See, Q4 also, again, we can expect in the range of INR 500 crore. But next year, we would be targeting more than INR 1,000 crore in this particular sector. So we have to set up that JV also for qualification. And hopefully, we'll be able to have this qualification in our direct JV, right? So we'll be directly bidding and we'll be targeting for next financial year, we'll be targeting around INR 20,000 crore of the projects, right, for bidding in this particular sector. And we'll be having around INR 4,000 crore-INR 5,000 crore of the order book from this sector. Maybe we'll be able to achieve INR 1,000 crore-INR 1,500 crore of the orders in next financial year.
Understood. So, secondly, on the order inflow front, I think nine months order inflow, we stand at about INR 62 billion. So, I think we are falling short on that front in terms of guidance. So, I would like to hear your views on this.
Yeah. So largely, we've been disappointed on this highway front where our target was high. But somehow, the projects were not there from NHAI side or and now they and for different reasons, right? And we were expecting that in quarter four at least, they would be coming out with a good amount of projects. But so far, the pipeline is there's a good amount of a good pipeline is visible. But yes, we are not quite sure because that MCA is also under modification. They are coming out with various modifications in MCA. And now what we have realized is that they have shifted from EPC or rather HAM, I would say. It is that the government is shifting their stand from HAM to BOT, right, BOT toll mode. And for that, actually, we need full scope MCA also, that Model Concession Agreement.
So that is also why I believe that the reason that they are taking time, right? And going forward, what I believe is that on highway sector, we'll be having a good amount of order book coming in. Maybe next financial year, we'll be having INR 10,000-15,000 crore of orders coming from highway sector because the pipeline, which right now is available, though they are not ready for bid, but because of this reason that MCA is yet under modification. But what we believe is that size of project is that number the ticket size of the project is more than INR 2,000 crore and BOT in INR 8,000 crore, INR 7,000 crore. So what we expect that would be confident that we'll be getting INR 10,000-15,000 crore of the orders in highway sector at least going forward next year.
Understood. And so, I mean, any timelines? When can we expect this modification in MCA? And I mean, when the ordering can pick up? Can we expect it in Q1 of FY27, or will it be beyond that?
No, probably maybe because, see, HAM is a settled contract, right? Now, for BOT, because there is a big plan with the government for big-sized BOT and all that. So they are taking time. That is under modification. And maybe in next 15 days or next, I would say, 1 or 2 months at max, probably. And maybe even during the month of March itself, we may see that some projects coming in for participation and for bidding. But yes, of course, whatever the case may be, we'll be in execution we'll be in position of execution only in the next financial year after Q2 and Q3, Q3, Q4 on what side. But what we believe is that it is pretty certain that those projects would be coming in next maybe not this quarter then probably next Q1 of the next financial years. Yeah.
Understood. So my final question is on the BOT project, the Agra-Gwalior one . There's been delay in receipt of appointed date over there. So what is the actual status? Why has there been a delay?
Yeah. So there's been delay in that particular project. Issue for BOT project is we want to be pretty sure in terms of land acquisition, right? Unlike HAM, right, where HAM is more kind of EPC where even if, let's say, land is not there, ROW is not there, we can construct and we can continue to get the payment and we can also get the provisional COD, right? But in BOT toll model, even if, let's say, a pretty small amount of ROW is not there, then probably it would be hindering our BOT toll collection. So we are actually cautious at this particular time in BOT projects.
We want to be doubly sure in terms of whenever we are appointed date is declared 100% or 90% at least, whatever committed in their agreement, that land is made available to us without any hindrance where we can execute the work. So that's how we but what I believe is that going for I mean, see, some land compensation issue is going on over there. And maybe next couple of months, it would be settled. Once they get the compensation, we'll be having the appointed date. And we are fully ready with our mobilization and equipment over there. We'll be able to in next financial year, Q1, we'll be able to book the revenue on that particular project.
Thank you, sir. Thank you. All the best.
Thank you.
Thank you. A reminder to all the participants, you may press star and one to ask a question. We have the next question from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Thank you and congratulations on good setup number, particularly on the execution front. A couple of questions from my side. So first, just a clarification. In terms of order inflow till now, excluding GST, how much order inflow that we have received? Is it INR 2,480-odd crore?
See, except that power transmission where order is getting splitted because for power transmission, we have received order of around INR 3,600 crore. But then in EPC, we would be having revenue around INR 1,800 crore, which is 50% of the order which we have received, right? So the total order so far for the current year is around 6,000 sorry, INR 4,800 crore, right? That's the orders which we have received, which ultimately would be converted into the EPC revenue going forward.
Here, we are excluding the three L1 projects, so two MSRDC.
Yes. Yes.
So this INR 4,800 crore, when we are saying so we are saying that transmission, we are right now taking a INR 1,780 crore, and then ultimately, it will be a INR 3,600 crore.
Yeah. Yeah. Yeah. Yeah.
Okay. And then this BESS NTPC, so there, the INR 488 crore that we announced on the exchange, so is this including the 18% GST?
No. That is INR 488 crore including GST. Without GST, it is INR 414 crore.
Okay. INR 414-odd crore. Okay. Yeah. And this two MSRDC project, INR 4,300 crore, so what's the status? Whether it will get canceled?
The status remains same what we have spoken on last call, right? Because so far, I mean, what we believe is that because of the new alignment, that would be canceled and they would be re-tendering and all that. But yes, I mean, that is the latest information which we have. Beyond that, we also don't have any information on that.
And sir said that we have bid INR 20,000-odd crore projects where bid is yet to open. So is this entirely if you can split into the sectors where this is?
It's largely highway and railway, which is around INR 16,000 crore. Then there is tunnel and hydro, which is INR 4,000-odd crore.
Tunnel and hydro. Before end of March, how much more are we planning to bid? There also, I need a clarification. When we said that now MCA for BOT is under modification, so whatever the project NHAI till now have announced in terms of the tender where they are either EPC or HAM, so is there also a possibility that they can also be converted into BOT and that's why there is a delay, or this is the new projects that they will come up with a tender?
No, sir.[Foreign Language] Usmein already ye defined hai. Abhi HAM ke projects bhi pipeline mein hain aur BOT ke projects bhi hain. Jo hub ke projects hain, vo hubbing hone wale hain. Aur jo BOT ke projects hain, vo alag se unhone matlab jo vo thoda uske bidding thoda delay hoti ja rahi hai.
See, they have already defined this criteria they have set, right? If a developer is not getting 15% kind of IRR toll tariff basis, right, then those projects would be either bidded under EPC or HAM. So basically, that they're only basically classifying those how those projects under which bucket those projects would be covered, right? So it is not that the EPC would be converted to HAM and/or EPC would be converted to BOT. I don't think so. This is the philosophy.
Okay. Okay. Got it. So now, by March, how much more are we planning to bid? And also broadly, if you can say how much, let's say, on the NHAI front, there is still not 100% kind of a clarity. But in other sectors, transmission or maybe Oil & Gas or any other, how are we looking at how much more orders can be won before March end?
See, one is different. The point is that pipeline, which is right now available or visible, that is for highway, it is INR 100,000 crore, more than INR 100,000 crore of the orders, right? Railway, it is more than INR 50,000 crore. But if they would be bidded into March itself or they would be spilled over to next quarter, that's maybe what I believe is that for next in this up to March, I think INR 60,000 crore of the orders would be bidded. And we would be participating in those orders. Yeah.
Okay. So in totality, next year, sir has said that on the highway front, you mentioned that INR 10,000-INR 15,000 crore, that particularly on the INR 20,000 crore that you are planning to bid in the Oil & Gas , INR 4,000-INR 5,000 crore plan to get in FY27 from the Oil & Gas . And on the highway front, INR 10,000-INR 15,000 crore. So totally, can we say INR 20,000 crore inflow that we are looking at in FY27? So or maybe from here on till the next year, FY27, and how much inflow are we looking at?
See, current year, we are already running with the backlog of I mean, a good amount of backlog is there. So probably in current year, depending on that bidding intensity. Current year, also, we are basically poised to get at least INR 10,000 crore of orders in the current year. And maybe in next financial year, we'll be having including Oil & Gas and all that, INR 10,000 crore-INR 12,000 crore at least from highway and then INR 4,000 crore-INR 5,000 crore from Oil & Gas . And then there is a power transmission, which again, we are targeting around INR 3,000 crore of the order. Then hydro, tunneling, metro, road. So more than INR 20,000 crore of orders inflow we can target for next financial year also.
Okay. Okay. Got it. Got it. Understood. And lastly, sir, the equity in terms of the FY27, INR 500 crore, you mentioned that in the fourth quarter that we are planning. So this INR 500 crore, including the T&D, hub, and maybe BESS or any other that we are or ropeway that we are seeing?
INR 500 crore, this financial year we are targeting for Q4, right?
Correct. Yeah. So that includes everything.
Yeah. Yeah. That includes everything.
In FY27, 28, how much to be invested?
1,000 crore. See, after this infusion, we remain with INR 2,500 crore of the equity infusion, right? Which is to be infused in next 2-3 years. Assuming we'll be getting more orders, right, under BOT or HAM or whatever you say, but then INR 1,000 crore of equity infusion, you can safely assume on a yearly basis.
Okay. In terms of the margin, is there now a possibility that we can reach to kind of a 13% for next year? This year, already, we are at 11.5%, 12%. For next year, how one can look at EBITDA margin?
For next year, I don't think so. I mean, unless until we have this order. For example, if we are getting only INR 10,000 crore of the orders, then probably we would be having this kind of number only for EBITDA margin. But it will be getting so every incremental, maybe after INR 14,000-50,000 crore of the order inflow, every incremental order would be giving us higher EBITDA margin. That I believe.
Okay. Okay. Got it, sir. That's it from my side. And then the CAPEX, lastly, if you can say for this year and the next year, total, how much CAPEX that we are looking at?
In this year, we have made INR 98 crore worth of CapEx. Next year also, we estimate to be in the range of INR 100 crore-INR 125 crore.
Okay. Got it. Thank you and all the best.
Thank you.
Thank you. A reminder to all the participants, you may press star and one to ask a question. We have the next question from the line of Ayush Goyal from CAVI Capital . Please go ahead.
Yes. Hi, sir. So I just had one question. So as the company continues to diversify into different sectors and reduce the reliance on road segments, so what are the margin expectations over the coming few quarters?
Margin, what we believe is that to remain in the same range, maybe if we are targeting 10%-12%, that is the target which we are having in our mind.
Okay. Okay. It depends on the order inflow, right?
Yeah.
Okay. Thank you, sir.
Thank you. A reminder to all the participants, you may press star and one to ask a question. We have the next question from the line of Abhinav from ICICI Securities. Please go ahead.
Yeah. Hi, sir. Thanks for the follow-up. I just wanted to check that the guideline that you had given for Q4 is about INR 3,000 crore of revenue. Is that right?
Yeah. Yeah.
So just wanted to understand. I mean, last quarter, we were looking at 5% growth now. With this INR 3,000 crore of revenue in Q4, this will entail a growth of more than 20%-25% year-on-year. So what has changed during the last quarter that you are looking at these numbers now?
So we have got associated into this. I mean, we enter into new sector, oil and gas, I mentioned, right, in my previous answer also. And this is October to March is the season, and we got this opportunity to enter into this particular sector at the right time, and we could generate the revenue from this sector in the current half-year also. So that's the basic reason, right? And this particular sector, actually, what I believe is that is going to generate a revenue of INR 1,000 crore for us at least for the current year. So this is basically a significant change in terms of our revenue guidance.
Understood. Yeah. That was my question. Thank you.
Thank you.
Thank you. We have the next question from the line of Vaibhav Shah from JM Financial. Please go ahead.
Go ahead.
Yeah. Sir, on the revenue front, so if we remove the oil and gas revenue, so it would be around INR 1,600 crores for Q3. And your INR 3,000 crore guidance includes around INR 600 crore of oil and gas revenue. So we are going from 1,600 to 2,400 ex of oil and gas. So it is almost a 50% jump from 3Q to 4Q. So how do you see that sharp jump?
No. No. So see, INR 3,000 crore would be having our revenue from oil and gas sector, INR 500 crore kind of revenue. So INR 2,500 crore, INR 2,000 crore yeah, INR 5,600 crore. So from INR 600 crore to INR 2,400 crore, only because of that, the appointed date is there with us and some execution on PT&D front also. Power transmission also is helping us in increasing our revenue, right, which was low base in previous year. Now, we are getting good revenue also and because of that orders which we are having from this particular sector. So overall, right, if you add the number, add up the number, then total revenue without oil and gas would be around INR 7,000 crore on the year basis, which is again 5%-10% of the revenue, the growth, right, which we have given in our previous call also, that guidance which we have given, right?
Okay. And then next year, also, we are targeting revenue of INR 1,000 crore from oil and gas?
Yeah. Yeah. Our target is more than 1,000, right? But yes, it's a new entry, so it has to be it has to be proved, right? So yes, we will be targeting more than 1,000 for next year.
Sir, order inflow, you are targeting next year INR 20,000 crore plus. So of that, INR 5,000 crore would be from oil and gas for next year.
Yeah.
Then for this year, what would be the target for the entire year, order inflow for 2026?
For 26, it was around INR 22,000 crore.
So now, do we revise it downwards given the muted ordering in the first nine months?
Yeah. Yeah. So far, we have received only INR 4,000, right, INR 4,000, INR 5,000 only. And probably on highway front, we may add up another INR 10,000 crore if things go as we believe, right? Then our total revenue, total order inflow for the current year would be I don't believe that it would be more than INR 15,000 at least for the current year.
We revise it downwards to INR 15,000, right?
Yeah. Yeah.
10,000 more expected in the next two months?
Yep.
Okay.
Thank you. We have the next question from the line of Khadija Mantri from Capri Global . Please go ahead.
Yeah. Good evening, sir. So my question is regarding the NHAI target. So it was about 3,600-3,300 kilometers of order awards that were planned in FY26. So I just wanted to know till date how much has been awarded and how much is it expected to come in the next couple of months and whether they will be meeting this order award target.
They won't be for the current year, so far, they awarded only one-third of what they have committed, not even one-third, maybe 20% or 30%, right?
Yes, of course, they are a good pipeline. I mean, the momentum has been built into this bidding activity. But largely, they are now focusing on BOT projects, right, not on hub or EPC, which is taking time maybe because they want to settle for that Model Concession Agreement for BOT, which they have tweaked to a large extent based on the feedback they have received from the industry, various stakeholders. So maybe in current year, in next two months, probably what I believe is around INR 60,000-INR 70,000 crore of the orders can be floated by them. That can be coming for bid. That's my sense.
Okay, sir. So how much would that be in kilometer terms?
In kilometer terms, won't be more than, I would say, 1,000-1,500 kilometers. That's all.
Okay, sir. And sir, the changes in the concession agreement, so is it going to be more favorable for the developers like us, or what do you sense?
So I would say it would be more balancing, right, where risk and reward is properly shared. May not be that favorable. Yes. What I believe is that they would be more favorable for the EPC come I mean, that developer who has graduated from EPC player to developer, that would be more beneficial to them. And pure-play developer may not be having that attractiveness in those BOT model.
Okay, sir. But largely, in the listed pack, we have companies which are EPC as well as developers, so.
Yeah. Yeah. Yeah. So, I mean, there are some players who are only playing a developer role. Though they might be having that EPC, but ultimately, those projects are being executed or being subcontracted by them to some other EPC player, right? So if a company who is having EPC strength and forcefully enter into this particular sector of development, then they would be more beneficial out of this tweaking.
All right, sir. Thanks. That's all from my side.
Okay. Thank you.
Thank you. We have the next question from the line of Ashish Shah from HDFC Mutual Fund. Please go ahead.
Yeah. Thank you for the opportunity. Sir, my question on the oil and gas is that so we've guided for something like INR 1,000 crore this year and maybe INR 1,000 crore next year or INR 1,000 crore plus. But what's the total order book that we are working with today? So as in how much is this total value going to be, whether it is 2026, 2027, or 2028?
You see, so far, we have joined existing company. And so we have got associated with some existing company, right, for execution of those projects which are already been awarded to them, which is around INR 2,000 crore of the orders, right, which would be executed by next financial year also. And going forward, we will be directly bidding into we'll be participating directly with the ONGC or the client who are coming up with these orders, right? And when we'll be participating directly, we'll be targeting around INR 20,000 crore of the orders, right, where we target to participate. And out of that, we'll be having INR 4,000-INR 5,000 crore of the orders directly from them, right, in either subsidiary or direct I mean, we have to be basically because to get that qualification, we have to form and we already formed the subsidiary, and we would be participating through our subsidiary.
That's the plan.
Correct. So I mean, if you win more orders, it will get added, like you're saying you were targeting INR 4,000 crore-INR 5,000 crore wins next year. But the current work on hand could amount to close to INR 2,000 crore, of which INR 1,000 crore is what you're targeting this year, INR 1,000 crore maybe next year. And then based on new orders that you get in next financial year, this can continue going forward.
Right. Right. Right. Absolutely.
Sir, what's the margin trajectory or margin range that one could factor for this sort of scope that we are doing?
That has to be basically tested, but we are targeting at least 10% kind of margin so far.
Okay. So roughly 10% is what we think we can make here.
Yes.
Right. And also, you did mention about the seasonality part here. So in that sense, when we say INR 1,000 crore even next financial year, is it safe to say that it will be in the non-monsoon period in the sense that the INR 1,000 crore number, the bump-up that you see, would come in the second half rather than the first half, or it could be uniformly?
Right. No. No. No. Right. You rightly got right. That would be more back-ended, I would say, in the next financial year.
Right. So this INR 1,000 crore incremental next year, but it could be more back-ended rather than uniformly spread for four quarters.
Right. Right. Right. Right.
Understood, sir. All right, sir. Thank you.
Thank you.
Thank you. We have the next question from the line of Sudeep Bura from Ambit Capital. Please go ahead.
Thank you, sir, for the opportunity. I wanted to understand what exactly are we doing in the oil and gas space and currently, what are we doing, and do we aspire? How do we grow in this particular sector?
See, we are into oil and gas EPC where we are laying pipeline into the subsea pipeline we are laying, right, and we are platform modification, platform erection in the seaside, right, offshore side. That is the basic sector which we are targeting in this oil and gas.
Okay, sir. So the skill set, machinery, equipment, does it entail any CapEx, or the road equipment is capable to do this work?
No. No. It's totally different set of machinery to be utilized. But so far, we have not targeted any CapEx unless until we have some sort of visibility in terms of our order intake and all that. But as of now, we haven't planned any CapEx on this front.
Okay. So without any equipment, then are we leasing it out, or?
Yeah. Yeah.
We are taking on lease. Yes.
Okay. Okay. And one last question from my end. So there's a slight dip in terms of EBITDA margins in this particular quarter when the revenue run rate is high. So can you just throw some light on it, whether it is temporary or how does it turn out in future? No. See, because in terms of we are not witnessing any revenue margin I mean, though this quarter, we are having growth, which is not commensurate to what the equipment or what all resources which we are having. So largely, because we are not growing, that's why the decline in the margin. And of course, oil and gas, as already mentioned, right, it is not CapEx-heavy or as of now, we have basically that lease-only. So EBITDA margin and gross margin or net margin is I mean, PBT margin is almost same for this particular sector.
So it is actually even if so even EBITDA is also with this kind of margin, we are targeting 10% of EBITDA margin for this kind of sector, right? So ultimately, it is dragging our margin, overall margin.
Got it, sir. Thanks. These were the questions. Thanks for the opportunity.
Thank you.
Thank you. We have the next question from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Sir, this T&D equity, which is a INR 384-odd crore, sorry, INR 967 crore that needs to be invested. Also in fourth quarter, how much are we looking to invest? And FY2026 and FY2027, how much?
In total, INR 967 crore is to be invested in next two years of time. Generally, it is back-ended, right? For current year, I don't think maybe INR 10-15 crore of equity probably we'll be putting in for the T&D activity. For next year, it would be, I would say, 40% next year, 60% in the next financial year. Maybe around INR 400 crore, that would be next financial year, INR 500 crore next financial year.
Okay. Okay. Okay. Got it. And sir, this InvIT investment that we have, so if dividend and interest that we receive, that we book in the standalone as a part of other income. But if there is a return of equity, so how do we do the accounting in the standalone?
See, return of equity would be that cost would be reduced to that extent. Return of equity would be reducing the cost of equity investment, right? That's how.
Yeah. So because in nine months, we have received close to INR 144-odd crore. So because now in this fourth quarter, there is an increase in the return on equity at the InvIT level. So for the full year, I think maybe given whatever the InvIT has disclosed a number, INR 171 crore kind of other income that we can get versus what last time we said, around INR 230-INR 240 crore that we are looking at.
Right. So that would be return on equity. That would be ultimately, it would be going to reduce my investment.
Yeah. I understand. But in terms of the other income for the full year, that's the way one can say?
Yeah.
Yeah. Other income would be reduced to that extent, right?
Correct. Other income would be reduced.
Okay. Okay. Okay. Got it.
Thank you. We have the next question from the line of Karan Gupta from Varanium Capital . Please go ahead.
Yes, sir. Appreciate the opportunity. Two questions. One, there were some recent news reports about developers approaching the ministry regarding timelines of road projects that have been built. So were we part of that representation, and how do we stand currently on the projects that are under execution with regards to delays or timelines? And secondly, if you could just talk about plans for transferring any HAM projects to the InvIT over the next quarter and into financial year 2027. Thanks.
Jo timelines ke liye bhi hum shamil hain, matlab usme kya hai ki abhi jo aane wale BOT projects hain, jo around INR 5,000-INR 6,000 crore ke hain, usme bhi timeline government ne 2.5 years di hai. Kaafi kam hai. Uske liye humne approach kiya ki iske reasonable time period hona chahiye. Aur regarding InvIT transfer ke. So for current quarter, we are having target, I mean, three at least asset, which we are targeting subject to that necessary approval we are having in place. And next financial year, again, which we are having around 4-5 asset, which will be transferring eventually to that InvIT.
So what would be the book value of equity for these projects that we are planning to transfer?
Value of total equity. I am not having that handy immediately. No problem.
I can follow up.
Yeah. Yeah. Sure.
Just on the timeline, so this timeline is only for BOT projects or in existing projects our timeline we are comfortable with?
No. No. No. [Foreign Language] These upcoming BOT projects, about that. What is the size? Quite big they made. But timelines, they haven't actually so they have worked only on size, but not on timeline. So because we are just basically reminding them that we have to work on both the for the.
Okay. Thank you, sir.
Right. Thank you.
Thank you. We have the next question from the line of Vaibhav Shah from JM Financial. Please go ahead.
Sir, on the BharatNet project, what is the current status? Have you started the execution?
See, execution we started. It is O&M. See, it was a new construction plus existing project for that O&M, which was supposed to be done by us. But somehow, new construction could not be started because ROW issue has not been resolved by them so far. And O&M activity has already started two-three months back only, right? So we have taken the position of existing network. But yes, new activity has not yet started. We are expecting that would be in the month of March itself, we will be able to start this.
What kind of revenue are we targeting in FY27 and '28 from the project?
See, we are targeting around, I mean, for next financial year, we are targeting 50% of the total project value plus O&M. So that would be around, I would say, INR 400-odd crore, which we are targeting for next financial year. And then, INR 600 crore will be targeting for next financial year.
So that equity number of INR 3,044 crore, that you mention in the start of the call, that is the overall equity or it's for the HAM projects?
[Foreign Language] ओवरऑल इक्विटी।
Overall equity. It is touching. Overall. Right? It includes the T&D as well.
Ya. Ya. T&D, ropeway, right, BOT, all.
Okay. Sir, lastly, of the current backlog that we have as of December, so it doesn't include the oil and gas orders, right?
Yes. Yes. It doesn't include all.
It is around INR 400 crore or INR 500 crore of additional orders you can have in that oil and gas.
yes, in Q4 INR 20,000 crore, it is INR 20,500 crore. Yes, that you can safely assume.
Okay. Okay. And sir, lastly, on the Pune MSRDC packages, so how do you see the execution moving forward? Are there any challenges in terms of land or anything, or it is moving smoothly right now?
So in pieces, land is pending, which is yet to be handed over to us. But whatever land front is made available to us, that is execution is smooth on those particular front.
So can we do roughly 40% of the work in next year? 40%-45% given the timeline?
We can do it.
Okay. Okay. Thank you, sir. Those are my questions.
[Foreign Language] थैंक यू।
Thank you very much. Ladies and gentlemen, as there are no further questions from the participants, that concludes the question and answer session. I now hand the conference back to the management for closing comments. Thank you, and over to you, sir.
Thank you. Thank you all the.
Shareholders and investors and bankers or all stakeholders. Thank you to all.
Yes. Thank you.
Sanjay Sir , thanks for allowing us to hold this call. And now, we can close the call. Thank you.
Thank you all. On behalf of HDFC Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.