Ladies and gentlemen, good day and welcome to PNC Infratech Limited Q2 FY 2027 earnings conference call hosted by JM Financial Institutional Securities Limited. As a reminder, all participants' line 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 star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vaibhav Shah from JM Financial Institutional Securities Limited. Thank you, and over to you, sir.
Yeah. Hi. Thank you. Good afternoon, ladies and gentlemen. On behalf of JM Financial, I am pleased to welcome you all on PNC Infratech Limited second quarter FY 2027 earnings conference call. We have with us from the management, the Managing Director of the company, Mr. Yogesh Jain, Mr. T.R. Rao, Director Infra, and Mr. Pankaj Agarwal, Vice President, Finance and Accounts. We will begin with the opening remarks from the management, followed by a Q&A session. Thank you, and over to you, sir.
Yes. Good afternoon, everyone. On behalf of PNC Infratech Limited, I extend a warm welcome to everyone for joining us today on this call. Today I have with me Mr. T.R. Rao, Director Infra; Mr. Pankaj Agarwal, Vice President; and Strategic Growth Advisors, our investor relations advisors. The financial results and investor presentation have been uploaded on the stock exchanges and the company website for your reference. I would first like to share the key development in the industry, followed by key operational update of the company and highlights of financial performance during the quarter and half year ended 30th September 2026, post which we will be happy to answer your questions. The highway sector started showing signs of recovery in quarter two of financial year 2027 after significant slowing down in project awarding activity persisted over the past two years.
During quarter two of financial year 2027, NHAI awarded highway project of approximately 230 route kilometers compared to 107 route kilometers awarded in quarter one of financial year 2027. Out of the 54 projects identified by NHAI for awarding during the remaining period of financial year 2027, 19 projects have received approval, while another 17 have been appraised and balance project are expected to receive approval shortly. It is expected that the pace of awarding would further improve going forward, supported by healthy pipelines of projects. As the government is considering development of approximately 51,000 km of high-speed corridor across the country over the next decade, a large number of new business opportunities are expected to emerge for highway developers. Apart from highway sectors, significant opportunities are emerging across other sectors.
Continuing government focus on railways, metro rail, freight corridors, power transmission, renewable energy and storage, mining, water resource development, including drinking water supply and urban developments, provide sustained growth opportunities for well-established infra companies. Railway sector continue to offer a robust pipeline of new projects supported by government focus on capacity expansion, freight connectivity and logistic efficiency. The government has already identified 540 new railway infrastructure projects spanning over approximately 40,000 km with a total estimated investment of INR 8 lakh crore under the National Rail Plan and Vision 2030, underscoring significant large scale opportunity in the sector. The proposed HAM-based model for new railway projects built on the success of highway development is also expected to create expanded opportunities for established highway infrastructures player.
Driven by India's rapid solar expansion, which reached over 167 GW capacity as of September 26, following over 20 GW additional in H1 FY 2027. The surging demand for complementary transmission network and battery energy storage system is unlocking significant medium to long-term investment opportunities across the renewable ecosystem. The projected capital expenditure of INR 6 lakh crore over the next five years in power transmission sector is aimed at evacuating over 900 GW of non-fossil capacity, is expected to provide robust opportunities in both short and long terms for infra developers. While highway will continue to remain our core focus sectors, we are actively expanding into other core sectors to build a broader, more resilient order book that supports long-term sustainable growth.
Rising crude oil prices on account of the West Asia conflict have increased cost of key inputs including diesel and bitumen, straining procurement, transport, construction, and equipment operations severely. Though MoRTH, NHAI, and AEI have extended the monthly price adjustment escalation mechanism for eligible EPC and HAM projects through December 31, 2026, the actual impact of financial mitigation is effectively only to a limited extent. Consequently, persistent input cost inflation and partial escalation coverage continue to exert pressure on the operating margins of infrastructure players. Now, coming to the recent update on the company. On October 12, 2026, the Honorable High Court granted a stay on the effect of debarment order issued by the NHAI against both the company and the concessionaire, Awadh Expressway Private Limited, accordingly. The company is in a position to submit bids to all the government authorities, including NHAI, MoRTH, and NHIDCL.
In July 26, company received a letter of award from the Airports Authority of India for EPC work of Pantnagar Airport in Uttarakhand. The contract value of project is INR 302 crore, and it is to be executed in 24 months. On July 31st, 2016, the arbitration award was published in favor of company for INR 244 crore in connection with an EPC project of Sonauli–Gorakhpur section of NH 29E, executed for MoRTH through UPPWD. Our subsidiary, Yamuna Highways Private Limited, has received a rating upgrade to CARE AA+ with a positive outlook during the quarter. To explore international growth beyond the domestic market, the company has incorporated subsidiary PNC Infratech LLP in Kazakhstan. This strategic move positions the company to evaluate long-term opportunity arising from Kazakhstan's planned $9.8 billion road infrastructure program in the country, over 3,000 km over the next three years.
As part of the company endeavors to expand into international market, the company submitted a bid for a road project in Georgia to the Roads Department under the Ministry of Infrastructure of Georgia in September 2026. Company's 17 fund-based project portfolio comprises one BOT toll project, two BOT-Annuity projects, and 14 HAM projects. Aggregate bid project cost of 14 HAM project is over INR 17,200 crores. Out of total 14 HAM projects, six projects achieved PCOD and COD, five projects under construction, and one project of MPRDC financial closure document have been submitted, and for two newly secured project of NHAI, concession agreements signed and financial closure is in progress. Total equity investment requirement for the 14 HAM projects is INR 2,125 crores. Till September 2026, company infused INR 1,212 crores, and the remaining equity of INR 913 crores to be invested over the next two to three years.
Internal accruals that would be generated over the next two to three years should be adequate to meet the various quantity of investment requirement. Now, moving on to our order book. Company's unexecuted order book, including newly secured two NHAI HAM projects, stand at over INR 18,000 crores. Highway contract contributes 63% of total unexecuted order book, while water canal, railway, and airport contract contribute around 21%, and coal mining contract contributes about 16%. On bidding front, we have submitted 17 bids to different authorities for total estimated cost of INR 16,600 crores price bids of which are yet to be opened. Now, I would present the results for quarter ended September 30th, 2026. Stand-alone revenue in the second quarter of financial year 2027 is INR 1,146 crores, which is higher by 17% as compared to INR 983 crore revenue in the second quarter of financial year 2026.
Stand-alone EBITDA in second quarter of financial year 2027 is INR 138 crores, and stand-alone EBITDA margin for quarter is 12.1%. Stand-alone PAT in the second quarter of financial year 2027 is INR 73 crores. Stand-alone PAT margin for quarter is 6.3%. Stand-alone revenue in the first half of financial year 2027 is INR 2,664 crores, which is higher by 26% as compared to INR 2,119 crore revenue in the first half of financial year 2026. Standalone EBITDA in the first half of financial year 2027 is INR 513 crore, which is higher by 85% as compared to INR 277 crore in first half of financial year 2026. Standalone EBITDA margin for the H1 financial year 2027 is 19.2%. Standalone PAT in the first half of financial year 2027 is INR 343 crore, that is 12.9%. Consolidated revenue in the second quarter of financial year 2027 is INR
1,322 crores, which is higher by 17% as compared to INR 1,128 crore in the second quarter of financial year 2026. Consolidated EBITDA in the second quarter of financial year 2027 is INR 279 crore, which is higher by 10% as compared to INR 253 crore in the second quarter of financial year 2026. Consolidated EBITDA margin for quarter two of financial year 2027 is 21.1%. Consolidated PAT is INR 115 crore. Consolidated PAT margin for quarter two of financial year 2027 is 8.7%. Consolidated revenue in the first half of financial year 2027 is INR 3,011 crore, which is higher by 18% as compared to INR 2,550 crore in the first half of financial year 2026. Consolidated EBITDA for the first half is INR 802 crore, which is higher by 29% as compared to INR 620 crore in the first half of financial year 2026.
Consolidated EBITDA margin for first half 2027 is 26.6%. Consolidated PAT in the first half of 2027 is INR 447 crore. Consolidated PAT is 14.8%. On a standalone basis, our net worth as on 30th September 2026 is INR 6,143 crore, whereas standalone debt from banks and financial institutions and inter-corporate deposit is INR 1,312 crore. This translates to net debt to equity of 0.21 x. Total cash and bank balance, including current investment, is INR 1,252 crore. Considering the total cash and bank balance, including current investment, the net debt equity ratio on a standalone basis is 0.1. On consolidated basis, our net worth as on 30th September 2026 is INR 7,248 crore, whereas total debt is INR 5,912 crore. This translates to net debt to equity of 0.82 times. The total cash and bank balance, including current investment, is INR 2,936 crore.
Considering the total cash and bank balance, including current investment, the net debt equity ratio on consolidated basis comes to 0.41. With this, we now open the floor for question answer. Thank you.
Thank you very much. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinion, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Thank you. A couple of questions. Just one clarification before that. This INR 244 crore arbitration is not booked in the Q2 revenue.
Yeah, because, see, this arbitration, just award has been made. We have yet to realize this amount. See, only upon realization of amount only we consider into the revenue.
Is there any toll revenue or the payment which is still pending for the monetization which we have booked as part of revenue in Q2?
No.
Okay, got it. So just a couple of the items of the first on the guidance front, so anything in terms of the INR 6,000 crore revenue for this year and INR 7,500 crore for next year and 12% margin, so any change in the guidance?
No. As of now, no, there is no change. We will maintain the same guidance.
Okay. In terms of the inflow also INR 15,000 crore. I think INR 6,000 crore we have already received. That guidance also remains the same.
Yeah. Will remain same.
Okay. In terms of the coal revenue and the JJM revenue that last time you have said this year INR 500 crore, this year coal revenue, and next year also the similar INR 500 crore, and JJM INR 700 crore-INR 800 crore this year and INR 1,000 crore next year. So that also remains the same.
See, there will be slight moderation in the coal revenue. This year, we are expecting revenue from the coal mining project between INR 350 crore to INR 400 crore. In case of water, this year we are expecting around INR 650 crore, out of INR 750 crore last time what we had mentioned. The remaining figures will remain same. Because coal revenue next year it will be around INR 500 crore and water also will be around INR 1,000 crore.
Okay. Got it. Also the couple of balance sheet items, if you can help me in terms of retention, unbilled revenue, mobilization, HAM data, water datas.
Shravan Shah, just note down.
Yeah.
Retention money is INR 272 crores.
Okay.
Mobilization advance is INR 58 crores.
INR 58 crore?
Yes, only INR 58 crore as on September 30.
Okay.
And
Unbilled revenue, HAM data, water data.
Unbilled revenue is INR 490 crore.
Okay.
HAM data is INR 418 crore.
INR 418 crore. Water data is?
Water data is INR 786 crore.
There is a reduction in the water data decently. Got it.
Yes.
In terms of the equity, the balance that we need to invest for FY 2028 and 2029, particularly on the BESS front also, just wanted to understand both HAM and BESS, how it will be invested.
The total equity requirement, including the two HAM project, is INR 913 crore outstanding, which is to be invested in next two to three years.
Yeah. So in 2028 and 2029 will be how much? In second half, I think we have given in the presentation.
The targeting for 2028 is INR 460 crore, and the balance will be in the financial year 2028, 2029.
For BESS?
There is an update on the BESS project. We want to share with all the participants. This project was awarded by NHPC, and the power purchase agreement was supposed to be executed with NHPC within one year from the date of award. The signing of power sale agreement by NHPC with the prospective DISCOMs is the key precondition before signing the PPA. However, NHPC could not sign the PSA, power sale agreement, with the DISCOM. Consequently, power purchase agreement also could not be signed within one year stipulated time from the date of award. We sought an extension of one month from August 31 till September 30, but both agreements could not be signed before that date.
As per the stipulations of the RFP, since these agreements have not been signed, the LOA issued stood cancelled and the bid security submitted by us, they have refunded to us. So if you can say, we safely exited from the project, and we realized our bid security. This project will no longer be part of our order book.
Okay. Lastly, once we got the stay order from the High Court, now we are bidding and in November the final hearing is there. Things will remain as it is, so we should be able to keep on participating.
Yes.
Yeah. We are participating.
We are participating. We should be able to participate further also.
Okay. Thank you, and all the best, sir.
Thank you. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Yes, sir. Hi. My first question is on the diversification. We were earlier looking to diversify from roads to water. Somehow that has not played out. Industry is not doing well, payments are not coming. Then we thought we will do into renewables, then this BESS order gets canceled and whatever is happening on inflation on the battery side, I think it is a good exit for us that we did not continue with this project. Then now you are planning to move beyond India to Kazakhstan, despite giving a very robust commentary on the upcoming pipeline in India. Somehow the signals are mixed. I am not able to relate how the growth will come in the order book. Beyond roads, whatever order we are winning is in road or MDO. How does one look at order book growth in the near future, this year, maybe next year?
How are you thinking? How is your internal strategy team thinking to grow from here in terms of order backlog or revenues?
Mr. Parikshit, our focus will continue to be on the highways, given the very robust pipeline of opportunities that are available in the highway sector across the implementation models, including HAM, EPC, and as well as the BOT toll. So highways will continue to be our focus sector to expand our business. Nonetheless, in case of water, yes, there are certain issues. But if you see, during the quarter ending September 30, during three months, the government has released INR 267 crore as our pending payments. Accordingly, what was the outstanding as on 30th of June, now reduced substantially as of 30th of September. Going forward also, we see that we will get the timely release of the payments. So water sector, maybe end of the day, there should not be any issue. Similarly, in the irrigation sector also, there is some encouraging development.
During the quarter ending 30th September, we received INR 183 crore amount from the government of Andhra Pradesh. This is also substantial realization we could get it from the government of Andhra Pradesh. Revenue, we booked around INR 500 crore of revenue both, and we have done around INR 80 crore of work during the quarter two. So irrigation also, the situation is improving. With regard to coal mining, there are initial hiccups because of the severe resistance by the locals in vacating the land and the encumbrances and encroachments are there. But there also now things are getting improved and the month of October also, we could able to do better execution at the coal mining. So this MDO and all this lot of other projects are coming. We don't see any issue.
Only issue has happened in the NHPC, but it's a blessing in disguise because due to ongoing West Asia conflict and all, there is a steep increase in the prices of the input materials and the other things, including batteries, and also prices of the logistic costs. Whatever, though we exited from the project, it is better for us. In case of Kazakhstan project, it's a road project because we have a more than three decades of core expertise in the road sector. We don't see, even if you secure some projects in Kazakhstan, we should be able to execute it. Similarly, the project what we had submitted in the Georgia also is a road project. In these countries, we are targeting the road projects where we have our core competency. So we should be able to execute these projects realistically.
Apart from Kazakhstan, we are also pursuing opportunities in Uzbekistan as well as the United Arab Emirates. We are doing. As of now, we submitted, as MD has mentioned, 17 bids we have submitted, which are under evaluation. Price bids of the 17 bids
In bids
are yet to be opened, comprising 13 EPC bids, three HAM bids, and one TBCB bid for the power transmission for the various projects. If you see overall, the roads will remain our core area with 63% of our order book comprises road sector projects. Other diversification also we are doing in a very calibrated way. Also we find some synergy between the roads and other sector, for example, railways and other things, linear projects. We see that the expansion into other sector will enable us to maintain sustainable growth and resilience in the challenging times.
No, I totally understand that. But I'm saying the opportunity seems to be compressing because the bids we are seeing even in roads, which is your largest segment, the way the crazy bids which are happening, I don't know whether people will make money in those bids. So the chances of us winning despite there being a showdown in ordering at a very aggressive bid doesn't add up to the margins or the profitability or to growth. Power, as I said, BESS you exited. Good that you exited, but I don't know what's the opportunity there now on the BESS side for us. That again, a growth driver has somehow turned muted. Railways, I don't see any major orders wins by you. So the concern is over the next two, three years, how does the company grow, sir? That's the challenge which I'm not able to understand right now.
Yogesh, maybe you can touch upon this. How are you thinking the growth from here on a base of INR 6,000 crores revenue, which you are saying this year you will likely do? Given that we had a weak first half, we need to do almost INR 3,500 crores of revenue in second half. So INR 6,000 itself looks to be a little challenging. So on this base, how do you think you can grow at 10%-15%?
See, given the order book of INR 18,000 crores order book we are having, unexecuted order book, and pertinently, that order book doesn't include the BESS project. See, right from the beginning, we never included the BESS order of INR 2,000 crores in that order book. Now our order book stands at INR 18,000 crores. Such kind of order book definitely should be able to achieve that INR 3,000-plus turnover in the next six months, in this H2. We don't see any major challenge achieving the 30% growth what we've given the guidance. Going forward also, even at the end of the current financial year, still we're having an opening balance of INR 15,000 crores of unexecuted order book, even if you don't consider any new orders. If you consider new orders, there will be further orders.
Second thing, in the case of competition and all, yes, there is a competition on EPC and smaller size projects. We see that the competition will be lesser in the large scale, large size projects, and where there is a fund-based projects, like HAM and other kind of a thing, where the investment needs to be made. So there we don't see any kind of a fierce competition. We expect some projects to come. Also then, as I said, we are expanding into TBCB projects. There are huge number of projects are coming. Also in the railway, more than 400 projects they launched across the railway zones. We are bidding very actively in railway, and we expect to secure some projects in the railway sector also.
Sure. Just the last question on the bitumen and diesel prices-
Parikshit, sorry to interrupt you, Parikshit. Can you please rejoin for a follow-up?
No issues. Sure.
Thank you.
The next question is from the line of Sarvesh Gupta from Maximal Capital. Please go ahead.
Sir, thank you for the opportunity. First question again on the guidance part. We have done INR 2,500 crore, but that includes, I think, INR 200 crore of claim, which we received in last quarter. If we take that out, for this first half, we have done only 15% sort of growth, while we have guided for 33% growth, INR 4,500 going to INR 6,000. Sir, and if we exclude that INR 217, even I think margins are lower than 12% for the first half. For the second half, this INR 6,000 includes that INR 200 or excludes that INR 200? Secondly, from INR 2,300, now we have to do INR 3,700 crore if we are excluding that claim, one time claim. Can we achieve, sir, INR 6,000 crore and 12% for the full-year?
See, if you see the pattern of the thing, first half of any financial year will be less than the second half because of the monsoon and other kind of thing. What we achieved, INR 2,664 crore we achieved during the H1. Sir, that includes INR 217 crore of arbitration award we received. The total would be INR 6,000 crore. INR 6,000 crore what we given the guidance. That would include the arbitration award. We are not excluding the arbitration award amount from that. Remaining revenue to be earned is INR 3,336 crore. With the given order book and these five major road projects are going on, five HAM projects and two highway projects of MSRDC. These projects are going to full swing, and many other projects also we are going to start in Q3 and Q4, the projects which have been recently awarded.
We don't see any major issue or any major challenge in achieving INR 6,000 crore in the current financial year. With regard to achieving the 12% EBITDA margin, see, because of the INR 2,664 in case of their delta will be there in the second thing, and while the fixed overheads being remained the same, we should be able to maintain the EBITDA margin of 12% as of now.
This 12% is on remaining INR 5,800 crore, sir? Otherwise, this INR 217 crore is pure profit only, right? Otherwise your core EBITDA would be like 9% only or something like that.
No. We are giving the guidance of 12% EBITDA on the INR 5,800 crore, excluding the arbitration claim.
Okay, sir. You mentioned bitumen is having some partial impact on the infra players. This 12% is taking into account that impact also, right?
Yeah, it is obviously taken.
Yeah. Taking into that impact.
Okay. Secondly, sir, since our share price has fallen so much and we have decent amount of cash in our balance sheet, while we have some further use also, we will be selling down, I think, operational assets also as we have done in the past. I do not think we will have any dearth of funds as such. Have you thought about doing an open market buyback, at these sort of prices, which are probably one-fourth of the prices two, three years back? Is there any stance of the management on that?
Yes. We are thinking. We are thinking in the same line, to buy back.
Okay, sir. Sir, can you also comment on the pipeline? You mentioned that you had submitted bids of INR 16,600 crore, which are yet to be opened. Otherwise, apart from that, how is the pipeline looking like? Especially if you can bifurcate that between NHAI, MoRTH and others.
See, in case of pipeline, apart from the bids what we had submitted, 17 bids of INR 16,600 crores, we identified total around 80 projects. There are many projects which are there in the market and which have been launched already by the different clients. Out of that, we identified 80 projects comprising 35 EPC projects, 25 HAM projects, and 20 BOT toll and TBCB projects. The combined estimated value of these 80 projects comes to around INR 180,000 crores, which are to be bid maybe next, I would say, two to three months and until end of January. These bids will be submitted. If you see the bifurcation between MoRTH, NHAI and other clients like Railways, NHIDCL and state government bids and other things. NHAI, MoRTH and NHIDCL would be around 60%-65%, and the railways and others will be around 35%-40%.
Okay, sir. Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. The next question is from the line of Deepak Purswani from Svan Investment. Please go ahead.
Yeah. Hi. Thank you for the opportunity, sir. Sir, just continuing on the international projects, if you can share your broader thought process, how we are thinking in terms of this from the business point of view, in terms of what is the kind of investment, capital allocation, and then what is the kind of orders, how is the competitive landscape and how we are planning to manage supply chain and labor issues. On these aspects, if you can share your perspective, that would be really helpful. Eventually, what kind of business we are looking at over a period of time.
See, in the international arena, as of now, we are pursuing opportunities of a non-fund-based projects, such as EPC projects. As of now, we are not looking at any fund-based projects like where the investments need to be made there. Even if the international project also, there won't be any significant capital requirement except working capital needs. Other things, we are also looking at giving preference to the projects that are being funded by World Bank, and in case of Asian countries, it's the ADB, so that there will be continuous flow of funds without affected by the local issues. Second thing, we have got a team. The team of people, they are visiting these countries very frequently, and they are assessing the local conditions and other things, and they are having some kind of a tie-up.
We are also having a tie-up on a country-to-country basis with the local players, so we can provide the local support, including logistics supports and material supports and other things. We are doing all kind of a due diligence that would be required before submitting our bids. With regard to competition, yes, there is a competition in there with international players, and many firms from China are also participating in these bids. Of course, the competition will be there at a domestic level as well as international level. That, anyhow, we have to navigate through.
In terms of
Third thing, to have a very minimum risk, the projects what we are focusing at an international level is the highway projects where we have our core competency and more than three decades of experience.
What about the size of the order which we would look out in these kind of projects, especially in the international market?
See, in case of Kazakhstan, as my MD said, more than 3,000 km length of projects they initiated with $9.8 billion, which comes to KZT 4.6 trillion of a local currency. So this is a substantial kind of a thing in there. Similarly, in Georgia, Uzbekistan, also the road projects are coming up. So we also have a substantial value.
Thank you. The next question is from the line of Vaibhav Shah from JM Financial Institutional Securities Limited. Please go ahead.
Sir, what is the amount of cash and current investment sitting in PNC Infra Holdings?
Total cash in PNC Infra Holdings is INR 1,115 crore.
It was roughly INR 1,050 crore as of March. How has it increased?
It has increased due to the interest accrued on the FDR, which we have invested in the PNC Infra Holdings.
Okay. Secondly, when do we expect to receive the appointed dates for the two new HAMs and the MP HAM?
MP HAM, we are expecting appointed date before December 31st. In case of new HAM projects of NHAI, we are expecting appointed date in Q4.
We are sure about the timelines for NHAI HAMs, it should come by Q4?
NHAI HAM, we signed our concession agreement on July 16. We have five months period for achieving financial closure. That comes to around December 13th. Whereas NHAI has got 240 days to fulfill their condition precedent, including provide the 80% of the land. So that comes to something around in the middle of March. NHAI has got time. So land acquisition is in process. In both the cases, around 90% of the ROW 3G award and 3H is in progress. They are disbursing the funds to the landowners. So 3H is in progress. In our case, within 150 days from the date of signing of agreement, we should be able to achieve the financial closure. Also, we see maybe post that in one and a half months, NHAI should be able to provide the land 80% of the ROW.
The appointed date is expected to be declared during the fourth quarter of the current financial year.
So in case it comes in Q4, what execution are we targeting from those projects, in percentage terms in FY 2028?
See, these projects are to be completed two years, 730 days. So it will be something like a 35%/65% of ratio. So FY 2028, we expect 35%-40% progress, and the 60% progress in FY 2029. There won't be any significant work done during the FY 2027, in case of NHAI two HAM projects. Whereas we will achieve some progress, certain amount of work done, in case of Bhopal Bypass of MPRDC, because the appointed date is expected to be declared during Q3 of current financial year, that is before 31st December.
Okay. Sir, on order inflows, you mentioned that we maintain the guidance of INR 15,000 crores. Now, since the solar order is canceled, so the order inflow for this year is roughly around INR 3,800. So we almost require INR 11,000 crore plus inflow in the second half. So how confident are we on achieving the INR 15,000 crore inflow guidance?
No. See, as I mentioned, our unexecuted order book of INR 18,000 crore doesn't include solar project. We never included solar project in our unexecuted order book. That is one part of it. Second thing, order inflow, we had mentioned INR 12,000-INR 15,000 crores. So already we achieved INR 4,260 crores. Remaining INR 8,000-INR 11,000 crores, given the pipeline of, as I mentioned, INR 1.8 lakh crores of new projects we identified, and also we submitted bids for INR 16,600 crores. Price bids are yet to be opened. So as of now, we are still confident that we should be able to achieve the guidance, whatever we have given the guidance for the order book in FY 2027.
Out of the 12 - 15,000, what are you targeting from international markets?
International market per se, we are not targeting international market. This whatever order book is, we are considering only domestic. Because international market we just entered, so we have to see the dynamics and other things. As of now, we are not considering any order from the international market in the current financial year.
Sir, lastly, on the asset sale. We had sold 12 assets. Can you just give the total amount? What did we receive? What is yet to be received? And where have we used the cash so far?
The total consideration we have received from the 12 asset monetization is around INR2,517 crore. Out of that, INR150 crore is yet to be received from the buyer. The total money invested in FD and Tech Limited.
No, voice got disconnected in between. What was the amount
Yes, we lost your voice in between.
The total consideration we received from the monetization of 12 asset is INR2,517 crore. Out of that, INR158 crore is yet to be received from the seller. The remaining amount is invested in the PNC Infra Holdings in the shape of FDR and in PNC Infratech Limited in the shape of FDR as well as mutual fund.
Roughly out of 2,500, if you have received closer to 2,300, 2,350. So of that, INR1,100 crore is sitting in PNC Infra Holdings. The remainder INR200 crores of that, partly it is in the current investment, roughly INR750 odd crores. Where is the remainder amount?
The remainder amount is
Of INR 600 crores
The remainder amount
150 amount
INR 1,115 crore is in PNC Infra Holdings and around INR 800 crore in PNC Infratech Limited. Hello?
Okay. Got it. Okay. Thank you, sir. Those are my questions.
Thank you. Ladies and gentlemen, you are requested to restrict your question to one per participant. The next question is from the line of Vishal Periwal from Prabhudas Lilladher Capital. Please go ahead.
Yes, sir. Thanks for the opportunity. Sir, I think you did mention cash in infra holding and standalone also. So, what is the reason of increasing standalone debt when you have cash in the books? I mean, standalone debt has almost doubled in the last six months.
The debt we have taken for the purpose of the equipment finance and for working capital. The investment we have made in the mutual fund for the long purposes. We have taken the short-term loan from the banks, which is for the two months or three months purpose. That is why we have taken the loan from the bank.
Okay.
Secondly, sir. Excuse me. Okay, loan, we have taken as a standalone loan. That is also our inter-corporate kind of loans we have taken from our subsidiary companies where the surplus cash is available.
Okay. Is that fair to say, probably in terms of investments and cash in the books, we have almost INR4,000 crore of investment plus cash, investment in various HAMs and all. Is that fair to say, that number?
Yes, INR 4,000 crore investment in HAM projects.
Total cash and
Total cash and bank balance on the standalone basis, INR 3,000 crore approximately.
INR 3,000- INR 1,000 crore
No, on a consol basis, INR 2,936 crore.
It will be around INR 4,000 crores.
On consol basis, we have cash and bank balance of INR 2,936 crores. Around INR 3,000 crores.
INR 3,000 crores cash and bank balance on consol basis.
Yes, we have invested in the SPVs.
Yes.
INR 1,000 crore.
Remaining INR 4,000 is invested in the SPVs.
Okay.
Around INR 4,000 crore are invested in the SPVs.
Okay. Got it. One last thing, sir. Is there any change in the depreciation policy for us in this first half vis-a-vis same-
No. There is no change in the policy of the depreciation in the financials.
Okay, fine, sir. Thank you so much, sir. I'll come back in the queue. Thank you.
Thank you. The next question is from the line of Jainam Shah from Equirus Securities. Please go ahead.
Yeah. Hi, sir. Thanks for the opportunity. Just one thing on the Awadh Expressway and PNC Infratech. While there has been a stay from the High Court, any specific cost that we have incurred during the quarter, maybe for the penalty, maybe for the suspension of the toll collection, maybe for some reconstruction or anything on that part during the second quarter? I don't see any major change in the standalone, but has there been anything booked in the subsidiary during the quarter for anything for this Awadh Expressway?
No. The NHAI has not imposed any penalty because the defects that have been notified, we rectified all the defects within the timeline stipulated in the contract. So there is no time lapse or anything in rectifying the defects. So NHAI has not imposed any penalty, and also there is no recovery made for the toll loss. So in Q2, we have not booked anything. Only the expenditure what we have booked is the expenditure incurred on the repairs and rectification, which is very minimal.
Okay, sir. Yeah, that is it from my side. Thank you very much.
Thank you. The next question is from the line of Bhavik Shah from Invexa Capital. Please go ahead.
Yeah, hello, sir. My first question is regarding the cash. So we are around INR1,252 crore cash in standalone, INR1,115 crore of cash in the PNC Infra Holdings. What is the ICD amount given by PNC Infra to the standalone company?
The ICD is not given by PNC Infra Holdings. It is given by the operational SPV subsidiaries, which is around INR 494 crore.
Okay. So that is part of my standalone debt, right?
That is part of standalone debt.
Understood. The rest debt of say INR 900 crore is my debt from banks and financial institutions.
Yes, banks and financial institutions for equipment financing and the short-term working capital purpose.
Understood. What is the cost of debt and what is the rationale for holding the cash and not utilizing the cash and taking the debt? How much are the earnings on the investments and what is our cost of debt? Is there any arbitrage you are seeing?
We will evaluate always on monthly basis what we are getting and what we are paying on the working capital loan. Accordingly, we change our loan and investment decisions.
Currently, we are having an arbitrage, so we are doing this. Is it fair to say that?
We are not for the arbitrage we are doing it. If you see INR 1,300 crores of debt we are having as standalone, which comprises INR 500 crores of own company subsidiaries, inter-corporate deposit, inter-corporate loans. So that is our own companies, the surplus cash is available in those SPVs, so we are taking. And another major part of more than INR 400 crores in the equipment finance, which is, there is an obligation to take the debt in the equipment finance because that is what the industry practice is. Whenever we go for equipment purchase, we take
That is five year loan.
Yeah, that is a
Five year
term loan. The remaining, there is very minimal kind of a thing, what my colleague said. For the working capital requirements, we take short-term borrowings from the banks, where the rate of interest is very competitive. It is not that per se for any arbitrage. But it is the corporate debt, working capital loan, what we are taking is very thin. Whenever we get realization from the clients of our outstanding payments, this will be paying back. Whereas the deposits what we are making, cash and banks, this thing, on a long-term basis under mutual funds primarily.
Understood, sir. Sir, one more thing. Regarding our order, we have got the stay. What is the way ahead there now? What are the next steps?
See, we got the stay. Next date of hearing is on 26th of November. The order says both parties may file their arguments, written arguments, including NHAI's reply. Final arguments will happen. Because in the writ petition, we asked for the quashing of the debarment orders, and under the CPC, we asked for an interim stay. So interim stay the court granted, because if in case. In case court gets convinced about the illegality of the debarment, the debarment orders may get quashed.
Thank you. The next question is from the line of Mehul Jain from Siddhant Partners. Please go ahead.
Yeah. Can I proceed?
Yes, sir.
Yeah.
Thank you. Thank you for the opportunity. I have two questions. One, with respect to this INR 3,000 crore, if I understand it right, roughly INR 932 crore is the equity commitment what we have, balance equity commitment, including INR 400 crore of HAM. First question is about balance INR 2,000 crore. Is there any plan that we have formed up or we are trying to look at how to deploy this? My second question is that since we are now looking at even overseas opportunity, is it right to say that we are not able to find the right growth opportunities within domestic space, that is the reason we are exploring overseas? Because in past, I think overseas geography have not turned well for the infra company. If you look at probably 2000, 2010, 2011 to 2020 decade, lot of companies have erred in those aspect.
Any thoughts around this, sir?
The first question is that you say that we have to invest in the ongoing projects where some equity of INR 900 crore plus we need to invest, where we already secured these HAM projects. Then we are pursuing 25 HAM projects of an estimated cost of INR 50,000 crore. Even if you get some of the projects from this particular model, we need to invest further equity into these projects. Also we are pursuing both the TBCB power transmission projects as well as the DBFOT toll projects. These projects are around 20 projects of a total estimated value of INR 95,000 crore. Should we secure any of these projects, some of these projects, which we are bit confident about securing the new projects, then there will be a fresh equity requirement in these projects, and the remaining INR
2,000 crore that is available, then we utilize this for the equity purpose. In case of international, see, international projects that have been coming in Africa and other earlier, there had been some issues, but now the projects are coming in the erstwhile USSR countries, those like Uzbekistan, Kazakhstan and all. Second thing is these projects are in the road sector primarily, so where our expertise lies. There we are pursuing. Also, as I mentioned, these projects are primarily funded by World Bank and ADB. So don't foresee any kind of a funding issues or any kind of any interruptions in the payments. That is one safe area we are looking at. It's not like that in the domestic, we are not able to secure projects in domestic sector, that's why we are traversing into international sector.
But to complement our domestic thing and to broaden our horizon, we are going into international sector. It is something like complementary in nature.
How is the return margin profile, sir, for domestic versus overseas?
See, since we do not have any first-hand experience in the overseas thing, we cannot say. But we are targeting the similar kind of return, what we are treating at 12% to 12.5% EBITDA in the domestic. We also look at the similar kind of thing in the international market also, when bidding. Also, we are not pursuing any fund-based projects over there. Initially, we are pursuing the cash-based kind of projects like
EBITDA.
-EPC and in some cases maybe item rate.
Understood. I think that is it from my side, sir. I will get in touch offline. Thank you very much.
Yeah.
Thanks.
Thank you.
Thank you. The next question is from the line of Vaibhav Shah from JM Financial Institutional Securities Limited. Please go ahead.
What is our CapEx guidance for 2027 and 2028?
Sir, please go ahead.
Hello.
Yes, sir, we can hear you.
Hello.
Yes, sir, we can hear you.
What is the CapEx guidance for 2027 and 2028?
Vaibhav Shah, sir.
Sir, you can go ahead with your answer. We can hear you. Ladies and gentlemen, the line for management got disconnected. Please stay on the line while I reconnect them. Ladies and gentlemen, thank you for patiently holding. We have the management line reconnected. Over to you, sir.
Yeah, please. I think Mr. Vaibhav Shah was asking some question.
Sir, what is the CapEx guidance for FY 2027 and FY 2028?
Revenue guidance?
CapEx.
CapEx guidance.
CapEx.
For financial year 2028, we are giving the guidance of around INR 150 crore CapEx.
Sir, and 2027?
2027, around INR 200 crore.
Sir, first half is already INR 150 crore, right?
Already-
You already invested.
We have made the CapEx of INR 155 crore, and for the balance period, we are going to total amount is INR 200 crore.
Probably INR 50 crore only in second half.
Yes.
Okay. Sir, secondly, you mentioned that you are quite confident on achieving order inflow of 12,000- 15,000, so incremental 8,000 - 11,000 in second half. But if the NHAI orders doesn't come in our favor, and if the ban continues post November, then still we are sticking to our guidance or there could be a resetting guidance?
See, it's a bit a hypothetical kind of a scenario. We hope that the stay or the relief would continue beyond November 26 also. The NHAI is coming out with large number of projects both on HAM and as well as DB.
We are bidding in railway also.
Also there are more than 400 project opportunities in railways. Still we are hopeful of getting the INR 8,000-INR 11,000 new orders before March 31.
Let me put it the other way. What would be our NHAI share in that INR 8,000-INR 11,000?
Sir, majority share would be from the NHAI. More than 50%-60% from the NHAI and MoRTH and, I think, NHIDCL. 30%-40% would be from the non-NHAI.
Okay. Thank you, sir. Those are my questions.
Thank you. The next question is from the line of Deepashree Joshi from Ambit Capital Private Limited. Please go ahead.
Hello, sir. My question is on your Khainti project. What would be the guidance for FY 2027 and 2028?
Yeah. Actually, as of now, we have paused the work because they release water into the canal system. Effectively, we get around six months working time in a year. We are expected to resume the works from the middle of November. So in the current financial year, we should be able to execute another INR 60 crores-INR 70 crores work. And in FY 2028, we are targeting around INR 400 crores work. They granted extension of time up to 12/31/2028 for completion of the project.
Got it.
Already we have done INR 495 crores work, already we have executed.
Right. So now it is about INR 790 odd crores left, right?
Yes. That we should be able to do during the next two financial years.
Okay.
As you had mentioned that we received around INR 183 crores money we received from the government, which is a bit encouraging development. During the current quarter, we received it.
Okay, got it. In your mining project, you have done about INR 260 crores in the current year till date, but you are guiding only INR 350-INR 400 crores for 2027. Why are you lowering your guidance for the second half?
Actually, it's not 250.
280.
We have done around INR 160 crores till the end of September, this thing. We are expecting another INR 200 crores plus during the H2.
Okay, got it. My last question is, you are guiding INR 7,500 crores for FY 2028, right? But with the BESS project now canceled, are you still sticking to your guidance of INR 7,500, right? Where do you get the visibility for that from?
Yes, because excluding the BESS project, as on date, we have an INR 18,000 crores unexecuted order book. We are expected to execute another INR 3,000 crores plus, INR 3,300 crores in the current financial year. Even with the given order book, we will be opening the order book for FY 2028 to be INR 15,000 crores, plus whatever the new orders that would be securing during the H2 of the current financial year. With that kind of order book of around more than INR 25,000 crores, we should be able to achieve INR 7,500 crores, which is around 25% over FY 2027.
Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management for closing comments.
Thank you everyone for your active participation in our earning call. In case of further queries, you may get in touch with the Strategic Growth Advisors, our Investor Relations Advisors, or feel free to get in touch with us. Thank you.
Thank you.
Thank you. On behalf of JM Financial Institutional Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.