Ladies and gentlemen, good day and welcome to Q4 and FY 2025 earnings conference call of H.G. Infra Engineering Limited, hosted by Go India Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. I now hand the conference over to Ms. Saloni Ajmera from Go India Advisors. Thank you, and over to you, ma'am.
Good morning, everybody, and welcome to H.G. Infra Engineering Limited's earnings call to discuss the quarter four and FY 2025 operational and financial performance, hosted by Go India Advisors. We have on the call Mr. Harendra Singh, Chairman and Managing Director, and Mr. Rajeev Mishra, Chief Financial Officer. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. We now request Mr. Harendra Singh to take us through the company's business outlook and performance, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
Thank you, Saloni. Good morning, everyone, and welcome to the H.G. Infra Engineering's earnings call for our quarter four and FY 2025 results. During this call, we will provide an overview of our financial and operational performance, discuss our strategy, roadmap, and outline our growth ambitions. We will also highlight the key initiatives undertaken during the year and share our vision for sustainable long-term expansion in FY 2026 and beyond. H.G. Infra Engineering Limited, with seven-plus years of going public, has demonstrated on all fronts maintaining a speedy revenue and margin streak and with good control of financials and processes. Thus, well-positioned to look beyond the present growth story. H.G. has delivered a good performance across all parameters, reaffirming its position as one of the fastest-growing infrastructure construction companies in the country.
We made meaningful progress in diversifying our order books, securing high-potential projects across all sectors in highways and railways, also renewable energy, including solar and gas. This marks a significant step forward into new verticals, including transmission and distribution, airports, and water infrastructure projects. Backed by a visionary leadership team, we aim to generate approximately 40% of our orders from known road sectors over the next two, three years. This forward-looking strategy not only broadens our growth horizon but also elevates the HGIEL to the next stage of evolution, creating long-term value for all stakeholders and contributing meaningfully to India's infrastructure transformation. Moving on to some updates on the infrastructure sector. To sustain its high-growth trajectory, India continues to prioritize infrastructure development as a national imperative. The Union Budget 2024-25 reaffirms the government's commitment to positioning infrastructure as a key driver of economic progress.
Strategic measures such as enhancing funding, increased private sector participation, a strong focus on sustainability, and adherence to stringent safety and quality standards can pave the path for an inclusive and resilient vision of Viksit Bharat. The road sector, though it has been a dull awarding in the last two years, however, the government is steadfast in its vision to transform India's road infrastructure, targeting the construction of 10,000 kilometers of national highways in FY 2026 to enhance connectivity and reduce logistics costs. Flagship programs like Bharatmala and PM Gati Shakti are propelled this growth with an ambitious plan to develop 50,000 kilometers of access-controlled expressway by 2037 under Vision 2047. Thus, we have almost great confidence during the year. Railways plan to invest approximately INR 16.7 trillion by 2031 in freight corridors, high-speed rail network, and station modernization.
Key initiatives include the redevelopment of 1,324 stations out of 508, which already are under construction, and expansion of dedicated freight corridors with robust private sector participation. The National Rail plan outlines the detailed roadmap for future capacity and investment identifying projects worth around INR 15 trillion in HSR, currently under discussion. H.G. is now positioned well with good experience in running railway projects and prepared to take more projects in this sector. Renewable energy and gas where the country is having strong focus, wherein from 78 GW in FY 2014-2015 to 199 GW in FY 2023-2024 already done. Solar energy has been the prime driver, contributing nearly 80% of the new capacity additions during this period. To meet the 500 GW renewable energy target by 2030, India has accelerated deployment through initiatives such as PM-KUSUM scheme as well.
Additionally, the government plans to issue 50 GW of renewable energy tenders annually until 2028, with 90 GW already under construction and 44 GW in development pipeline. The National Electricity Plan, prepared by the Central Electricity Authority, outlines specific energy storage requirements to meet growing demand. As renewable energy penetrates deeper, the role of energy storage becomes critical in ensuring grid stability and enabling round-the-clock clean power. The battery energy storage system, that is BESS, are emerging as the two key technologies. The BESS capacity in India is expected to reach 47.23 GW by 2031-32, supported by a suite of financial incentives, regulatory frameworks such as energy storage obligations, and dedicated national tenders.
This forward-looking approach reflects the government's commitment to sustainable growth, energy security, and a resilient powered infrastructure and gives us the opportunity to further extend our diversification into transmission and distribution segment as well, thus setting up an overall ecosystem of new energy sector right from generation storage to transmission. The government has given a lot of service in the interlinking of river and canal, under which we are expecting next five years good water and irrigation projects like Wainganga-Nalganga River Linking Projects in Vidarbha, Ken-Betwa Link Project in MP and Rajasthan, and UP, Eastern Rajasthan Canal Project in Rajasthan and MP, so these efforts will align the strong prospects of government under PPP or the EPC model, thus giving us an opportunity to participate in these projects.s
Urban infrastructure has been a big demand now, and there is immense potential to look forward in urban infrastructure where demand has penetrated now into two cities as well and has given trust to develop a big metro like Delhi Metropolitan, Mumbai Metropolitan, as well as Bangalore. Our journey has been shaped by resilience, flexibility, and consistent growth. Today, we are well-positioned to tap into new opportunities in renewables, water, and power distribution, and with strong execution skills, technical know-how, and industry experience, we are ready to take on large infrastructure projects that contribute to India's long-term development plan. Let me begin with a glimpse of our operational highlights for the year. As of FY 2025, the order book stood at INR 15,281 crore, with roads and highways at INR 10,392 crore, railways and metro at INR 3,097 crore, solar at INR 819 crore, and gas INR 973 crore.
Our order comprises of 36% of HAM projects and 64% of EPC. Segment-wise, road and highways contribute 68%, railways 20%, roads 68%, railways 20%, and solar and gas around 12%. This is an update on the EPC project. At Ganga Expressway project, we have achieved around 90% and continue to progress as planned as expected to be completed in quarter two of FY 2025. The Delhi UER project has been completed successfully and handed over to the authorities, and it is anticipated to receive its COD shortly. The Jamshedpur elevated project is running smoothly with a progress of 8.2%. The Nelamangala-Tumkur project is gaining execution momentum after the settlement agreement executed and has reached 34.9% completion. The letter of award for the two MSRDC projects is expected in coming quarters.
The delay is primarily due to land acquisition with the revised project alignment, which is the prime requirement for issuance of LOA. In HAM projects, the Karnal Ring Road has reached 52.1% completion, marking steady progress and likely to be completed in quarter three of FY 2025. Sorry, FY 2026. Provisional completion certificates for Raipur-Visakhapatnam corridor package OD5 and OD6 received in April 2025. These projects are nearing completion. Also, Raipur-Visakhapatnam project AP1 is heading for completion. All these three projects are on track for 100% completion by quarter two of FY 2025. In the same fashion, PCC has been recommended for KD1 and 2 projects, and the progress in these projects stood at 79.9% and 80.8% respectively, and both projects are expected to be completed by quarter two of FY 2025.
For the Chennai-Tirupati HAM project, the appointed date was declared on 14 December 2024 and is expected to gain execution momentum in coming quarters. The current project stood at 8.4%. The appointed dates of Varanasi-Ranchi packages 10 and 13 in Jharkhand are expected in quarter two of FY 2025-26, where significant development on forest clearance has been done. For 14 Kosi Parikrama Marg package six of Ayodhya, the agreement is anticipated to be signed shortly, and the appointed date will be followed in quarter three or four of this year. For Narol-Sarkhej projects, financial closure has been achieved, and the appointed date is expected in quarter two.
This is an update on monetization of four HAM projects where successfully we have completed monetization as a first tranche of three SPVs, that is Gurgaon-Sonepat, Rewari-Ateli, and Ateli-Narnaul, as well as the second tranche involving Rewari Bypass, which was completed on 20 February 2025. All FPV shares have been transferred to Highways Infrastructure Trust, resulting in the total proceeds of INR 503 crore. For the HAM asset monetization, for which we have initiated discussions with prospective investors for monetization of six additional HAM projects that include Raipur-Visakhapatnam corridor package OD5-6 and AP1, Khammam-Devarapalli package one and two, and the Karnal Ring Road project. We are sure to conclude the entire process and realize the proceeds by the end of this financial year. Regarding equity requirement on HAM projects, the total equity requirement for the 11 HAM projects is INR 1,657 crore.
As of March 2025, INR 915 crore being infused, and of the remaining INR 359 crore, it is scheduled in FY 2026, followed by INR 197 in FY 2027 and INR 186 in FY 2028. Now, turning to the progress of railway projects, the BMRC is around 72% completed and progressing as per the scheduled timelines. The Bilaspur-Himachal Pradesh RVNL project is 59.4% complete. Kanpur Railway Station project is 21.35% complete. The initial issues of land and forest clearance related in this particular project are now in full swing. Dhule-Nardana railway project is 8.3%. Gaya-Son Nagar and Karanjgaon projects are at 7.5% and 6.4% completion, respectively. The slow progress in these two is primarily due to design and drawing revisions by the authority encountered on the ground of certain variations and COS. However, we expect to progress in the coming quarters as per the structured timelines only.
As far as the solar project is concerned, HG Infra has strategically capitalized on emerging opportunities in India, expanding variable energy landscape, particularly within the solar sector during this financial year. The company actively pursued solar power projects under the government PM-KUSUM scheme and initiative designed to accelerate the adoption of clean energy solutions across the country. As a result of its proactive approach, HG Infra successfully secured 183 solar power plants, cumulatively contributing an impressive 700 MW DC capacity. Among these, the company is directly responsible for 167 plants, accounting for 638 MW DC. This is with an estimated EPC value of INR 2,243 crore, excluding GST. To ensure smooth project execution, HG Infra has finalized the land lease agreement of all these PPAs successfully signed by DISCOM. Our progress on all projects remains on track, with approximately 63.8% completion achieved till 31 March 2025.
The installation and commissioning processes are proceeding as per the schedule, demonstrating the company's commitment to timely delivery and operational efficiency. In terms of the financial structuring, debt funding for these solar projects is progressing well, with approximately 70% of the required funding being sanctioned, and the remaining approvals and subsequent disbursements are anticipated to be finalized in the first quarter and subsequently second quarter of FY 2026. Regarding equity financing, the total equity investment required for the solar project stands at INR 721 crore, and as of March 21, 2025, the company has infused approximately INR 445 crore into these initiatives, with the remaining balance set to be deployed in FY 2025-26. This well-planned capital infusion strategy ensures H.G. Infra maintains sufficient financial flexibility to meet critical project milestones, reinforcing its long-term commitment to sustainable energy growth and while expanding its footprint in India's renewable energy sector.
As far as gas projects are concerned, the company has executed binding agreements with GUVNL and NVVN for 435 MWs, that is 870 MW hours, with the scheduled commissioning in December 2026. The core project cost for these two projects is around INR 970 crore plus GST, and with an equity commitment of INR 295 crore. The equity requirement during the current financial year is likely to be INR 120 crore, whereas the balance will be incurred in the subsequent financial year. Once all these projects of solar and gas are completed and commissioned, the annual revenue of INR 300 crore from solar and INR 225 crore from gas would be generated from these projects. Let me now give a mini overview on the other significant updates for quarter four of FY 2025.
In quarter four of FY 2025, the company in joint venture with DEC Infrastructure Projects, Hyderabad, secured a significant rail development project from the Rail Land Development Authority for the redevelopment of New Delhi Railway Station. The total project cost stands at INR 2,195 crore, with the company holding at 49%, amounting to INR 1,076 crore, that is inclusive of GST. Additionally, in April 2025, the company has awarded a battery energy storage project from Gujarat Urja Vikas Nigam. This is the third project. The project involves setting up of 300 MWs, that is 600 MW hours, in the state of Gujarat. The tariff for the project is set at INR 285,600 per megawatt , with a contract duration of 12 years. The core project cost is expected to be around INR 670 crore plus GST, with an estimated commissioning date by October 2027.
With this, the total project cost of this project stands among INR 1,700 crore, with a total project capacity of 1,470 MW hour. Moving on to the financial highlights for Q4 of FY 2025, as far as standalone financials are concerned, revenue for Q4 of FY 2025 reached INR 1,973 crore, with an EBITDA of INR 283 crore and an EBITDA margin of 14.3%. PAT for Q4 of FY 2025 stood at INR 212 crore, with a PAT margin of 10.8% as compared to INR 160 crore and the margin of 9.8% in Q4 of FY 2025. Revenue of FY 2025 stood at INR 6,052 crore, compared to INR 5,122 crore in FY 2024. EBITDA for the year was INR 951 crore, with a margin of 15.7% for the year. PAT for FY 2025 came in at INR 577 crore, maintaining a profit margin of 9.5% versus INR 545 crore and a margin of 10.7% in FY 2024.
On a standalone basis, our gross debt stands at INR1,068 crore. This comprises INR404 crore in working capital debt and INR 664 crore from term loans and current maturities. The surge in the debt from the last year is due to significant funds deployed for procuring and blocking the solar modules to secure competitive prices and to complete all the projects as per the scheduled timeline. The debt will mellow down by quarter two of FY 2025 and further cool down by the end of this financial year. Now, to the consolidated financials, the revenue for Q4 of FY 2025 reached at INR 1,361 crore, with an EBITDA of INR 239 crore and an EBITDA margin of 17.6%. PAT for Q4 of FY 2025 stood at INR 147 crore, with a PAT margin of 10.8% as compared to INR 190 crore and a margin of 11.1% in Q4 of FY 2024.
Revenue for FY 2025 stood at INR 5,056 crore, compared to INR 5,379 crore in FY 2024, and EBITDA for the year was INR 1,058 crore, with a margin of 20.9%. PAT for FY 2025 came in at INR 505 crore, maintaining a profit margin of 10% versus INR 539 crore and the same margin in FY 2024. As informed in quarter two earnings call, the dip in the consolidated revenue and the PAT numbers pertain to the inter-group transactions between HG and HPVs related to solar projects, which are eliminated in our consolidated financials. As a result, revenue and expenses from these projects do not appear in the consolidated P&L statement but are recorded in capital work-in-progress figures under section six. At the standalone level, HG Infra recognizes revenue from EPC work and pays tax on this income.
However, in the consolidated accounts, both revenue and cost from these intercompany transactions are eliminated, reducing the overall figures and margin compared to the standalone financials. The tax expenses for these earnings remain impacting consolidated margin negatively until the SPV generates revenue from unit production. Once revenue starts flowing, this effect will reverse, improving consolidated financial performance. On a consolidated basis, the company gross debt stood at INR 4,092 crore. This includes INR 1,068 crore on a standalone basis and INR 2,055 crore as a project debt related to HAM and INR 969 crore in solar project debt. Let's explore what's next turning into our future strategy and plan. We are targeting an ordering flow of INR 11,000 crore for FY 2026, with approximately 70% coming from roads and railways and 30% from other sectors.
We remain confident in sustaining our EBITDA margin of 15.6%-16% and achieving revenue growth of 17%-18% in the next year. Our focus continues to be on operational efficiency, strategic project selection, and disciplined capital allocation to preserve margins, minimum debt, and shareholder value. While we have deep expertise in roads and highways, rising competition and shrinking margin in the segment underscore the need to diversify. We are actively exploring high-growth sectors such as airports, railways, and transmission distribution, leveraging our core strength in execution and engineering. This strategic diversification not only supports long-term growth and margin improvement but also strengthens our position as a future-ready multi-sector infrastructure leader. So we can now start question answers.
Thank you so much, sir. 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 withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Yeah, thank you, sir, for the opportunity. A couple of questions. Sir, first, on the margin front, so though this quarter margin was on the lower side, 14.3% EBITDA margin, but we are saying 15%-16%. So just to get a confidence that was there any one-off in this quarter, and then now onwards we will be seeing a 15%-16% margin?
The margin always remained to be in that category only, but because of this some provision and one or two projects where the change in law, this clarity was not there. So that has been looked into as a dip in the margin. But subsequently, we are looking into raising this claim to the authority and recognizing this margin at a later stage. But however, we are confident enough that our margin would be in the range of 15%-16% in the year as well.
Got it. And also on the revenue front, now as we are seeing a 17%-18%, so close to INR 7,100 crore kind of a revenue that we are looking at versus INR 6,000 crore in FY 2025.
So just trying to get a further sense on that, that the couple of projects where we are still yet to get appointed date, so roughly around INR 7,200 crore is yet to get an appointed date, and particularly this MSRDC two projects. So if you can help us, how much are we looking at revenue from these projects where appointed date is yet to be completed? And also in terms of if you can help in terms of the solar, the entire mostly the order book INR 800 crore will be completed in this year, and how much are we looking at from railways? So just trying to get a sense that how are we confident that this INR 7,100 crore revenue we can get.
So definitely, as there's a total order which is INR 15,000 crore, in which around INR 6,000 pl crores of projects are yet to receive appointed date.
But as far as solar is concerned, by quarter two, they will not be down INR 800 crore. So as far as debt is concerned, we are considering not much, but INR 350 crore of this year execution, as we are committed to complete those projects by December 26. So this is put together around INR 1,200 crores coming from solar and debt only. In HAM projects, there are the projects like Khammam-Devarapalli package, KD1, 2, OD5,6, AP1, and Karnal. They all will be completed, and there are around INR 800 crores of this balance work which is to be done in the year only. In projects like Chennai-Tirupati and Jamshedpur Tumkur, as well as. So these are the projects which are going to yield additional INR 1,000 plus crores of revenue for the year.
Look at the big number is Ganga, which definitely is going to be completed is INR 700 crore, which is balance which is to be done within the year only. We are confident that around INR 1,000 crores of revenue coming from railways and then solar and EPC. The project which we are talking to, we are very fast and near to completion in these projects. They have the appointed date as recently as being given in Jamshedpur and Tirupati. There's a big chunk of business to be done in the year. Talking of the appointed date, we have the Tumkur project where the financial closure is done, and the land is all available. There's one minor correction and some forest clearance of INR 750 crores being done. In quarter two, it is likely to be there. Jamshedpur packages 10 and 13.
So this is a project where we believe that it has been delayed significantly, but with the forest clearance already now nearing closure. So we are expecting by quarter two, the appointed date would be there. And as far as the season starts in the later half of the year, we are confident to have a good number. So irrespective of the fact, Nagpur-Chandrapur project may not yield anything in the year, but we are confident that these are the numbers which give us more than INR 7,000 crore.
Great. Great to hear that. And then just broadly, in terms of for FY 2027, also given the INR 11,000 crore kind of inflow that we are looking at this year, if we get it, the similar kind of a 15% plus kind of a revenue growth should be there in FY 2027 also.
Yeah, of course.
I think with this orders of Nagpur-Chandrapur converting into the appointed date and the other INR 11,000 crore more addition, we are confident enough that INR 8,000 crore plus can be done in 2027.
On this INR 11,000 crore order inflow, particularly we are looking at 70% from road. Sir, for the last two years, the hope is there, particularly on the NHAI front in terms of the order inflow, but actually it didn't materialize. Are we now seeing a confidence? Also, if you can help us in terms of the bid pipeline and how much value of projects that we have already bid. Just to get a sense that are we confident that the INR 11,000 crore, so maybe a INR 7,000-INR 8,000 crore that we are looking at from road, we will be able to get it.
There is a strong pipeline as far as Bharatmala projects are concerned, be it two-lane paved shoulder to four-lane where nothing much is to be done, only the Bharatmala and the stretches to be awarded. With the slight delays because of the pre-qualification already rolled out in EPC, and likewise, it is likely to be there in HAM. There has been some kind of a cooling period last year. We believe, I think the budget is already in place and the many projects in the pipeline as far as NHAI and ministry is concerned. Apart from this, we are looking into those projects from states like Maharashtra and UP, so they are also having their extensive pipeline ready. We are expecting this is not a very difficult number for the year.
And again, keeping this open with Adani, we have success. We are going to successfully complete this year. So they are also aggressively looking into a few projects on a BOT. So we are looking into this particular prospect as well as for road EPC is concerned.
Okay. Okay. Got it. And now just a couple of data points on the balance sheet front, sir. If you can help us with the mobilization advance unbilled revenue, HAM data, and solar data.
So as far as the mobilization advance is concerned, it is atINR 410, but it actually is INR 190 crore from the client. So there has been, say, in the data part, which is incremental solar is INR 585 crore, which is to be netted off with INR 220 crore because in some of the SPVs, the advance has been paid, and some of the SPVs is the data balance.
Typically, it's INR 220 crore less than what has been there. As far as unbilled is concerned, definitely INR 1,300-something crore is almost the same as last quarter, but there is likely to be a significant dip in this realization for the year as all the projects which are nearing completion, which we were hoping last year, all these projects will get converted into the revenue as unbilled. It is HAM SPVs, as well as there's the Adani project which we will be completing. There is some variation item which is being realized now, as well as the other projects which we are talking where the NHAI, old UER, as well as DV89. All these put together where the unbilled significance is likely to be realized within this year in quarter two, especially start from quarter two to quarter three and four.
So as on March end, solar data is out.
Shravan Shah, I would request you to please come back in the queue for further questions. The next question is from the line of Gaurav Uttarwar from AXIS Capital. Please go ahead.
Hi. Good morning, sir.
Good morning.
So thank you for the opportunity. So just wanted to check on margins as we are guiding for or we are targeting of 40% of the contribution to our books in next two to three years from the non-road highway segments. So how do we look at the margins going forward? Would it remain in the range of 15%, 16%, or we can see some dilution because the segments we are catering to or we are targeting are quite competitive in nature? And would it sort of dilute our margins going forward?
So as we are expecting that definitely the execution due within the next two, three years can come to 60% from roads. And other than roads, it's the railway. It can be solar or BESS or even transmission or water. So looking into these sectors where the margin in historical past has not been revealed so good, but we are expecting that as we are doing in a few of the railway projects, the margin is equally good at about 12%, 13%. So at an EBITDA level, it is around only 15% rather. So in solar, we did well, and the margins are really good. So looking at these opportunities, again, as we're averaging out with the HAM projects, likely in railway roads which are to be we are expecting where the competition which has been so intense last few years is going to be cooled down.
So with that, we are expecting 15% plus margin to 16%. That is quite manageable.
Okay. Got it. And sir, apart from this, the recent notification which came out from the NHAI about land clearance on what they've been highlighting that land clearance should be done before tendering or putting on that. So how do we think in terms of inflows going forward or say for a coming year also, that would it be easier for us to get more of such orders from the NHAI? And how do we see the tender pipeline also for the coming year and next two years in that terms? If you can just highlight on a macro level.
So definitely, this is a good move as such as far as the NHAI is concerned because the land should be in place while first to even start tendering and awarding an appointed date.
But now, as significant time is being taken in those things for that INR 25,000 crore kilometer, which, as their PCUs are qualifying for four lanes where the land is all available. So they are targeting to see those projects where the DPR is at an advanced stage can be awarded for the year. And subsequently, as for greenfield projects, there's greenfield expressways or other projects where the land is likely to be as they are looking within there is a significant this has been done. So with that advancement, we are expecting those projects as well, which were available in the, say, bidding pipeline last and last year also, likely to be awarded this year.
Okay, sir. Sir, lastly on the working capital, we have seen that in FY 2025, there is an increase in working capital.
What sort of working capital do we target for the coming years? If you can just highlight the reason for FY 2025 also and the coming years, what we are targeting.
There have been two reasons as far as working capital is concerned. We have gone to, for the, say, short-term loans as far as to see the mobilization advance because the mobilization advance is INR 190 crore, and we have taken this call to take it from banks. There's a very short mobilization advance. In lieu of mobilization advance, there's a . We are being recovered as we are progressing into execution of all these projects.
So the one thing also, there's a medium-term surge in that particular because of the solar locking the prices of the module as well as inventory, which has now gone very high, around INR 550 crore because of the solar inventory only. So this is going to be consumed within the year. So ultimately, as well as we are completing this EPC, we are getting payments from tentatively INR 1,000 crore plus crore from banks only through SPV. So there's going to be a slowdown by quarter two as well as by year-end, it will come down to a very reasonable number.
Got it, sir. Just last question. I missed, I think.
Sorry to interrupt. Yes. Gaurav, I would request you to please come back. Thank you so much.
Ladies and gentlemen, in order to ensure that our management is able to address questions from all participants, please limit your questions to two per participant. The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Yeah. So thanks for the opportunity. Sir, I'm based on the appointed date part. So you mentioned that for Nagpur-Chandrapur, both the packages, we are not expecting any revenue. So earlier, we were targeting roughly INR 250 crores in FY 2026. So we are not targeting anything for this.
Since as of now, the land acquisition where the realignment is being done because of some coal blocks encountered in that alignment, old alignment. So they are not getting the NOC from the coal, Western Coalfields. So that is the reason behind they are changing some alignments. So this is taking some time.
As soon as they are acquiring 70% of the land, they will be issuing the LOA tentatively by this quarter two in the LOA. We are not expecting anything is not being done, say, because of the appointed date. That's why we have taken out that particular project where the contribution may come or may not.
Secondly, on Varanasi, you are mentioning that it should be in Q2, the appointed date. Execution can be around 30-odd% for the year?
Yeah, definitely. Because with the mobilization already done, we have already stacked the big amount of aggregate and everything has been done. We are very suitably poised as soon as this appointed date by this quarter two. In August and September, we are expecting because the forest clearance is now at a very advanced stage of about 70%-80% land cleared.
So with that, we are expecting that all execution will be where the mobilization done, as well as the project which we are completing very nearby. The whole will be done, taken up, and we are expecting more than INR 700 crore of revenue coming up from this project only.
And sir, for Bhaguban, what will be the appointed date target?
Which one?
Bhaguban, the UP Motorway.
UP Motorway likely by year-end because very recently, within two, three days, we are going to sign the concession agreement. So five months from now, we can expect by this October, November where the financial closure and other things can be done. So in quarter four, we can expect the appointed date.
Okay. And sir, secondly, in terms of overall opportunity, so in terms of highways, are we looking for bidding for BOT projects in FY 2026?
No, BOT we are not interested as of now.
Okay. And sir, lastly, we had mentioned that there is some INR 5 crore impairment in the quarter. What was it pertaining to?
Provision.
Yeah. INR 5 crore impairment we have done regarding to other assets and mentioned in the notes to account. So what is this regarding to?
I think I'm not getting your question.
In the results in Q4, there is a INR 5 crore impairment that you have taken.
No, it's not. I think there's some misunderstanding. It's not there anything. So Vaibhav, if you can come back at a later stage to our team, anything which you want to say. Whatever doubts you have, we'll sort it out separately.
Okay. Okay. Sure. Okay. Thank you, sir.
Thank you. The next question is from the line of Janam Shah from ICICI Securities. Please go ahead.
Good morning, management.
Sir, my first question is we had guided for INR 11,000-12,000 crores worth of project in FY 2025, and we have received INR 9,000 crores worth of project. So can you highlight something on that plan?
So initial estimation was supposed to be INR 10,000 crores, and we added around INR 8,500. Is it?
So you had guided for INR 11,000-12,000 crores.
So we projected at around INR 10,000 crores of order addition initially, and we completed at around, say, INR 8,500. That is the whole year. There is a loss of this thing as of INR 1,500 crores because of this highway order, say, not many of the orders or much of the addition has been done.
Okay. And this year we are targeting INR 11,000 crores, right?
Right, right. Yes.
Yeah. And sir, are we seeing any further big opportunities in railway station redevelopment side?
So we are expecting that we already have taken two projects. One is in Kanpur. As while doing those projects, we understood that the initial phase definitely gets a lot of groundwork being done, some permissions, some kind of underground utility shifting takes time to. But thereupon, it's quite a good, reasonably good margin. So that's why the New Delhi we have participated along with the partner. So look into these opportunities. Going further, definitely whatever project comes in.
Okay. Are there any major projects which are yet to get redeveloped, major stations? I mean, the Mumbai is done, the New Delhi is done, and a lot of major stations are done.
They are also bids launched, and there are many other projects where the small and big, not too big as well, but they are all bids launched which are yet to be awarded.
Okay, sir.
And sir, we are seeing an increase in debt level.
Mr. Janam Shah, I would request you to come back in the queue. All right. Okay. Thank you. The next question is from the line of Vineet from Investec. Please go ahead.
Hi. Good morning, sir. Thank you for taking my question. Sir, a couple of questions. One is on the solar side. What kind of margins can be expected in a typical solar EPC job? And what is the value add or what is the right to win for us in this category?
As we have experienced, though, definitely these are all scattered projects, but that too we could manage very effectively with our good, strong, say, execution capacity. So looking beyond this, we are looking into solar where around the clock or the solar BESS, this hybrid as well as solar wind hybrid can be.
We are looking into such opportunities where we are bidding those projects, and looking further with this transmission also, we are looking that way to see any good opportunity coming from transmission distribution, so making it a whole infrastructure or ecosystem of new energy.
Sir, I wanted to understand more on what is the right to win here, what is the execution which we do, what is the proportion of bought-out components, how does cost escalation pass-throughs work, or are these more like fixed-price contracts, and in a typical scenario going forward, other than the solar projects which we are executing, what kind of EPC margins are doable? Is it around 10%, 11%, or 12%, 13%? What type of margins can we do here.
S o what we have understood as far as all battery-free projects, it's around 12%-12.5%. So that is at EPC level.
The bought-out items in that also, it is around, say, 65%-70%, even more in battery. But then again, if you're talking of solar, it's around 70% of the bought-out items, and the rest is all land and other areas which are civil works. Keeping a margin of about 12% is the range which we would be looking for future bids. This is a fixed-price contract. There is no price escalation which is to be paid until there is a change in law parameter which is affecting your project.
Understood. Sir, in that case, given our reliance on.
Vineet, I would request you to come back in the queue. The next question is from the line of Uttam Kumar from AXIS Securities. Please go ahead.
Yes, sir. Very good morning, and thanks for the opportunity.
Sir, I missed the number on equity investment in solar as well as battery storage currently. How much will have been and how much may we do in FY 2026, 2027?
So in 26, it's around INR 750 crore out of this around INR 360 to HAM, and INR 391 is the solar and battery. And subsequently, 2027, it is around INR 197 crore in HAM and INR 460 in battery because solar will be all done.
Okay. So all in all, in totality, how much will we invest in next two years in HAM and solar and battery storage?
So as of now, the all rich project we have taken is INR 1,360 crores yet to be infused.
Okay. And sir, this quarter, our finance cost has increased quite substantially. So can we expect it to normalize going forward?
Yeah, definitely.
As I already had expressed where it has gone high and why it is going to mellow down very fast.
Okay. And sir, what would be our CapEx guidance in FY 2026, 2027?
CapEx is not much of the CapEx is required because we do have every CapEx ready where these projects which we are talking, that we are on eight projects, mega projects where all completion being done within this year till quarter two. So any project equivalent to INR 8,000 crores where we want to mobilize of railway or even highway is adequate CapEx is available. So hardly it can be just INR 255 crores for any key critical equipment if required.
Okay, sir. That's all from my side. I wish you all the best.
Thank you.
The next question is from the line of Deepak from Svan Investments. Please go ahead.
Yeah. Hi.
Good morning, sir, and congratulations for a good set of numbers. So firstly, wanted to check it out. And this year, I mean, in the revenues of INR 6,050, what would be the broader breakup in terms of the solar, railway, and road project?
So if you say EPC, as I explained as well, was the major contributor at around INR 6,044 crores and HAM INR 1,586 crores. Solar also contributed INR 1,430 crores. So these are the major ones with railway INR 445, another EPC INR 965.
Okay. Okay. And sir, I mean, this year also the investment in the subsidiaries has increased from INR 628 to INR 1,368 crores. I mean, overall investment on the balance sheet side. So this is primarily into the solar project which we have invested, or how should we look into it?
As we were discussing from last quarter two to now, so this is because the typical nature of the project where the commissioning is a period of six months maximum. So within that duration, we need to pump in funds from everywhere wherever possible. So that is because of that reason only.
Okay. And sir, finally, I just wanted to check it out in terms of the pipeline opportunity on the solar and water and river linking side. If you can throw some light, how should we look into these opportunities going ahead?
The central government is now checking upon this opportunity into river linkages which is K2 as well as the Eastern Rajasthan Canal, which is INR 80,000 crores as well as in Bhadra in Rajasthan and Vidarbha.
So there are many more projects where the central government is interested, and they look like they will be approving and going ahead with this opportunity. So these projects where unlike JJM, they are a different kind of project. Also in water projects in Rajasthan, also we have seen in one of the HAM projects where bids are invited, which is the 10 years of O&M HAM projects. So those are the projects which we look forward where we do have some, let's say, qualification restrictions, but we are looking at the joint venture partner to look further. As well as in solar, we are only looking into those bids where the margins are intact around this one. We don't want to go very aggressive into any solar or transmission.
Okay. And sir, just finally, on the interest cost for the.
I would request you to please come back in the queue for further questions. The next question is from the line of Sarvesh Gupta from Maximal Capital. Please go ahead.
Good morning, sir. Sir, first question is on the order inflows. So I think even in the quarter three concall, are you able to hear me?
Yeah.
Yeah. Sir, even in the quarter three concall, which was in February, we had guided for INR 11,000 crore-INR 12,000 crore of order inflow for FY 2025. Now, so we are short by almost 20%. So now this year, again, we are guiding for INR 11,000 crore. So what has changed on the ground that gives you the confidence that this time we will be able to meet the order inflow guidance?
So as in last year, also there has been a major dip in the highway only because a few kilometers being awarded at ministry level or NHAI. So this is now gone for the year because as we were discussing about because of the pre-qualification and certain land DPRs and sanctions were not in place. So look, this year definitely the budget is in place, and we are looking into the same opportunity, same around, say, INR 7,000 crore-INR 8,000 crores of project from highway to contribute into INR 11,000.
And secondly, on the HAM monetization, so the first four projects, full money is already accounted for in the fourth quarter result. Is that right?
Yeah, definitely. It has been done.
And the six additional HAM projects, sir, which are supposed to be monetized, I'm guessing we are having around INR 750 crores invested in that.
That money should come back in this year with some accretion.
The total equity into these six projects is equivalent to INR 900 crores plus, and the debt probably is around, as of now, it is around INR 2,100 crores into these six. We are looking into this monetization as we are completing PCC of four projects already we have received. With that, within six months, we can do that entire transaction by the year end. Possibly, we would be looking that this entire money can be taken back.
And sir, we mentioned that we want to be like a future-ready multi-sector construction company. Now, one doubt on that strategy that I have is that if I look at all these multi-sector construction companies which are listed currently, none of them are able to even reach 10% sort of a margin. So what gives us the confidence?
We have been a company, sir, where 16% margins were the norm. So if we go down that path, will we be able to protect the kind of margins that we had, or we will also slide down to barely double-digit sort of EBITDA margin company?
For sure. I think what you are talking, we have seen all maximum companies with multi-sector. Multi-sector is not that we try and focus would definitely be this highways only. We are seeing that there is a big amount of work which is to be done in the highway. It's not that case. The highway is not done. So it's only last two years which we have seen because of the last three, four years because of the price, this cost competition and aggression, as well as this slowdown because of this project awarding.
But then again, there are strong pipelines in this particular. So roads always will become, will be our prime product. Apart from that, yes, definitely, if we are not looking into just railway, just metro as urban infra, we already had done UER, Delhi UER project where the urban infra is involved. Metro, we have done Gurgaon Solar, we have done. So if there are the viaducts which we are doing, Jamshedpur we are doing, this is a nine-kilometer viaduct. So with that, it gives us the opportunity into urban infra also. Without compromising the margin, we are not confident that 100% it is possible to make 16%. But within a range of 15%-16% over a period of two, three years, it is quite possible.
Okay, sir. Thank you and all the best.
Thank you. The next question is from the line of Girija Ray from YES SECURITIES.
Please go ahead. Hi. Good morning, sir. Thanks for taking my questions. I just want to get some kind of historical number. I'll not take much time. So just can you help me out with the number that four HAM projects we have monetized? What was the total equity investment we have done for those four HAM projects? And secondly, what is the value of the total?
Just one by one, I think it cost INR 373 crores which we added as equity into this equity in four HAMs, out of which INR 506 crores already realized, and this is around INR 21 crores which is likely to come within this year.
Okay.
And then around 1.5x , yeah.
And that price to book is 1.55x, right?
Corre ct.
Yeah. And one more question that is regarding package four. So I think we have got a good valuation on the project.
The price to book value is quite higher as compared to other three of our HAM projects. Am I correct?
Yeah.
So what makes that valuation a little higher? And we got a good valuation in that if we compare.
It all depends upon the project complexity, to wherein it is the price indexing being done because of the WPI and CPI index. So it's one thing, as well as the cost of O&M, which we value or other partner value who is taking over the project. So as we are discussing in these five projects also, there are the dynamic parameters which one project can yield very good, even two times, and one project can only yield 1.1x-1.2x. So averaging it, this is the number which we are looking at.
Okay. And sorry to take it further. This will be my last question.
So around INR 30 crore-INR 40 crore of differential amount, I can see if I do a calculation based on 1.55 times price to book value. Sorry?
This is INR 30 crores. This is around INR 30 crores which is balance.]
Okay. Okay. Okay. Thank you very much, sir. Thank you very much.
Thank you. The next question is a follow-up question. It's from the line of Jainam Jain from ICICI Securities. Please go ahead.
Thank you for the opportunity again. Sir, are we eligible in any of the projects which we haven't included in the current order book?
Sorry?
Are we eligible in any of the projects which we haven't included in the current order book of INR 153 billion?
No, no. Only the project which we got in April 2025, that is a battery project, is not added here. That's around INR 702 crores. That is not added here.
Okay, sir.
Sir, estimated number of order pipeline which we have for FY 2026 and the amount of bids we have already submitted for?
Already around INR 16,000 crores of bid already done across various sectors, majorly highway and railway. So we are expecting to be these bids. Bid pipeline, no doubt, as far as NHAI is concerned, is INR 80,000 crores, NHAI and ministry more. In other words, I think it's all rolling kind of a thing. You are not having 100% accurate data.
Okay, sir. That answers my question. Thank you so much.
Thank you. The next question is from the line of Tushar from KamayaKya Wealth Management. Please go ahead.
Good afternoon, sir. Thank you for the opportunity. I just wanted to know the guidance which you gave at start. You're targeting for INR 7,000 crores for FY 2027, right?
If I'm not mistaken, with the margin of 15%-16%, and then keep that growth momentum going forward. Is my understanding correct despite the Nagpur-Chandrapur project not fructifying?
Yeah, definitely. As we have counted on the numbers, so these figures are quite confident. We are quite confident that we will be doing more than INR 7,000 crores for the year 26.
Fair enough, sir. And sir, in the transmission and distribution and water management, what sort of margins are you seeing in that? And why it has not contributed to your order book as of now?
No, because we have just explained about it is because of the solar projects where the CapEx being done. So there's a INR 1,300 crores plus CapEx done in these projects where the top line and bottom line being eliminated from the standalone number. So the consolidated number is giving a different picture.
Just around INR 300 crores of PAT is negative if you see that number. So ultimately, whenever we start producing the generation, so in this year, we are going to we already have started. Generation has already started. So within that, it is going to be corrected in the coming quarters. So with the consolidated number, we'll be corrected.
Okay. Sir, this is a bit different question. So do you see any opportunity in airport runway EPC going forward?
Yeah, EPC, definitely. There are many airports where the EPC bids are invited, like Varanasi, Kota, already in the pipeline.
Do you see that fructifying in terms of your order book going forward?
Sorry?
Do you see airport runway EPC in terms of your order book? Do you see that addition going forward?
We are qualified, and we are participating in these bids.
Fair enough, sir. That was helpful. Thank you.
The next question is from the line of Ishan Bhatt from Ishan Investments. Please go ahead.
Hi sir. Congratulations on the result. I would like to inquire about how the company is concentrating on the southern region, particularly the development of Amaravati Capital of Andhra Pradesh. How closely you are monitoring progress of tendering project, either individually or joint ventures?
So we have not yet initiated anything in Amaravati development as of now because it's not that we are not interested, but definitely, as the time comes, we may look into any bid.
Okay. That's it for now, sir.
Thank you. The next question is from the line of Madvendra, an individual investor. Please go ahead.
Yeah. Hi sir. I have a few questions, sir.
First is that we have entered the water segment around one, two years ago, but we haven't seen any major order wins or if that means any order wins from this segment. And other thing is one of your competitors stated that road project ordering has slowed down due to the government is looking to change the bidding norms due to increased participation from low-cost contractors. And it's been concerned because of past issues of execution delays. And the third question is this intercompany adjustment has been a volatility on the financials. And frankly, it's somehow impacting the share price. So how do you see this standing out?
So the last question can be a very well questioned. It's only a time gap that definitely the margins which we are reporting at the stellar level, they are the right margins.
Any elimination which is being done now with the company between SPV and EPC is going to be seen being corrected in subsequent years. So the margins are definitely would be coming back into consolidated only. The second thing is the water sector, as we have done and we have tried, because in the recent past, we have seen in JGM, there have been many budget issues, a lot of budget issues, the payment being stuck. So we dropped the proposal at that point in time, though very ready with bids. But now there's water linking, interlinking, river linking projects, and which is a water resource department. It's not a drinking project. So there it looks like it is a big infrastructure CapEx to be done. So these are the one.
I think the third is what we were looking at, the pre-qualification where the crowded space of roads, they have taken this water project. It's not that the pre-qualification is very simple, that anyone who has done this water sector project will only be qualified. And the JV is allowed. We are looking into the JV partnership.
Okay. Okay. So can we see this intercompany adjustment means not impacting the financials much from this financial year?
Definitely not because it's a quarter on quarter. If you compare any number, it's the last quarter, the solar contribution was not there. So we have seen a big number impacting quarter four and entire year as well. So this is not going to be there.
Okay. Okay. Thank you so much, sir .
Thank you. Ladies and gentlemen, this was the last question for today's conference call.
I now hand the conference over to the management for closing comments.
So thank you for joining us today. We have a strong year marked by a solid financial performance, a growing order book, and a committed team. We remain confident in our continued success and here to address any further questions. Please feel free to reach out to us or our IR advisor, Go India Advisors. Thank you. Have a good day.
Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.