Ladies and gentlemen, good day, and welcome to PSP Projects Q1 FY2027 earnings conference call hosted by Ernst & Young. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Krishna Patel from Ernst & Young. Thank you, and over to you.
Thank you, Naksha, and good evening, everyone. Welcome you all to PSP Projects Limited Q1 FY2027 earnings conference call. To take us through the results and to answer your questions, we have with us the management of PSP Projects represented by Mr. Prahaladbhai S. Patel, the Chairman and MD; Ms. Pooja Patel, the CEO; and Ms. Hetal Patel, the CFO. Please note that the discussions that we may have today may contain certain forward-looking statements relating to the future events and future performance. Numerous factors could cause actual results to differ materially from those in the forward-looking statement. Please note the audio of this earnings call is a copyright material of PSP Projects, cannot be copied, rebroadcasted, attributed in press media without specific written consent of the company. With this, I hand over the call to Ms. Pooja Patel, the CEO, for her opening comments.
Thank you, and over to you, Pooja.
Thank you, Krishna, for the introduction. Good day, everyone, and thank you for joining us for PSP Projects quarter one FY2027 earnings call. As of 30th June 2026, our outstanding order book stood at INR 13,245 crores, reflecting our robust 103% year-on-year growth and providing us with a strong multiyear revenue visibility. Of our total order book within group projects account for approximately 70%, while external projects contribute to the remaining 30%. The first quarter is traditionally a challenging period of the construction industry due to seasonal factors, including labor migration during festive and wedding season, as well as the initial onset of monsoon. Despite this industry-wide challenge, PSP delivered a strong 65% year-on-year revenue growth during quarter one FY2027. Our performance demonstrates the strength of our execution capability and the process achieved across key projects.
Importantly, most of our major projects have now moved beyond the initial stage, involving excavation and underground works and entering the core construction phase, enabling improved execution momentum. During the quarter, we deployed the workforce of over 16,000 labor across project sites, reflecting the scale of our operation and execution readiness. As labor availability normalizes in the coming quarters, we expect construction activities and project execution to gain further traction. I would also like to highlight our continued investment in strengthening organization capabilities. The increasing employee cost during the quarter reflects our strategic focus on enhancing leadership and project management bandwidth across various levels of the organization. We have expanded our team across key functions and geographies to ensure we are well-positioned to manage a significantly large project portfolio while maintaining our commitment to timely delivery, quality execution, and operational excellence.
During the quarter, the company successfully completed six projects and received order inflows of INR 630 crore, with 93% orders from Adani Group. Major orders are Adani Healthcare and Research Foundation project, Mumbai, Airport Office Building at T1, Mumbai; refurbishment of port user building, Mundra, construction of skilled accommodation at Green PVC Project, Mundra. The order book is diversified, with industrial projects comprising 39%, residential projects 37%, government projects 23%, and industrial projects approximately 1%. Our current order book: please make note of key projects and their outstanding contract values. Shri Ambaji Mata Temple, INR 962 crore. Shankaranarayana Constructions' high-rise building, INR 6.93 crore. Construction of Fintech Building at GIFT City, Gujarat, INR 259 crore. Human Biology Centre at Science City, INR 248 crore.
Biggest residential project in GIFT City, INR 202 crore. Development of Dharoi Dam region: INR 198 crore. Sabarmati Riverfront Development Phase two, INR 187 crore. The bid pipeline is INR 6,200+ crore, with 61% group projects and 39 external projects. Now let me share certain project-level updates. Shankaranarayana Constructions' core and shell activity has been completed, and now full-fledged MEP interior works and facade work is going on. Rail Vikas Nigam Limited, out of three buildings, two buildings will be handed over soon and the hostel building RCC is completed, and MEP plus interior works and facade work is going on. Ahmedabad Airport and Cityside Development, we are at a different level for RCC work going on in full force. For Ambaji Mata Temple, we are at excavation level, and some of the buildings are in footing level.
With this, I now hand over the call to Ms. Hetal Patel to share the financial and further details.
Thank you, ma'am. Good afternoon, everyone. We will brief you about consolidated financial performance for the quarter and quarter ending 30th June 2026. Quarter one FY 2027 versus Quarter one FY 2026.
Revenue from operations for the quarter is INR 853 crores versus INR 518 crores, which is increased by 65% on YoY basis. EBITDA for the quarter is at INR 55 crores versus INR 25 crores, increased by 121% on YoY basis. EBITDA margin is at 6.42% versus 4.79%. Net profit for the quarter is INR 18 crores versus INR 37 lakhs, which is increased by almost 50 times YoY basis. Net profit margin is 2.12% versus 0.07%.
During the quarter under review, employee cost has increased from INR 35 crores to INR 46 crores, which is mainly on account of annual increments performed in a three month and increasing number of employees from 2,400 almost to 2,600. Increase in depreciation from INR 17 crores to INR 26 crores is mainly attributable to additions in asset block during FY 2026 as well as into Quarter one, FY 2027. During Quarter one FY 2027, company has incurred CapEx of INR 28 crores.
Gross block is at INR 793 crores as on 30th June 2026, and net block is INR 472 crores. Would like to mention a few of the important consolidated balance sheet numbers as on 30th June 2026. Long-term borrowing is INR 38 crores, which includes short-term maturities of INR 19 crores. Short-term borrowings, INR 217 crores, which is excluding short-term maturities of INR 19 crores. Net unrealized revenue is INR 473 crores. Trade receivables are at INR 745 crores. Trade payables are INR 356 crores. Retention, long-term and short-term, INR 222 crores.
Mobilization advance stands at INR 836 crores. Inventories of INR 362 crores, comprising of INR 205 crores of construction material, INR 137 crores of work in progress, and INR 19 crores of finished goods. Out of total sanctioned credit facility of INR 1,497 crores, company has utilized non-fund-based facilities of INR 678 crores, and fund-based utilization is INR 166 crores. Limit available for utilization is INR 653 crores.
As of June 30th, 2026, the company has total fixed deposit of INR 324 crores, out of which lien-free deposits are INR 139 crores, and assets worth INR 185 crores are under lien with banks for credit facilities and given as security deposit to client. Work on a hand-on consolidated basis as on 30th June 2026, INR 13,245 crores, and the detailed breakup is provided in the uploaded presentation. That concludes the update on financials, and we are now open for the question and answer session. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the 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. Great to see a recent significant improvement in the execution front. A couple of things to understand. First, sir, in terms of the guidance, just to get a sense, that for FY 2027, INR 4,500 crore revenue that we were looking at, and for even going forward, we were looking at 20%-25% kind of a revenue growth. That remains intact?
Yeah, we can say it will be on an average more than 25%, so it can be between INR 4,000 crore to INR 4,500 crore, still will remain on the same line.
Okay. Now, sir, on the margin front, so this quarter also 6.4%. So we were looking at 7%, 8%, kind of a margin. Can we start seeing that 7% plus kind of a number from Q2 onwards, or maybe it would be from the second half onwards, we can start seeing that kind of a number.
Yes, you are right. From second half onwards, we should be in that range. But if you see this quarter also, our employee benefit expense is INR 46 crore, which is 5.39% of the sales. Because of the first two months' sale of April and May was down, and the third month it was INR 319 crore, previously two months were INR 270 crore. That will itself speak about there is almost 1% more expense due to the turnover not being converted into reality, and that itself is making 1% difference. If you add at least that INR 7 crore-INR 8 crore in the EBITDA, it will be somewhere above 7%. But it will be in a better position from quarter three and quarter four.
So employee cost now from second quarter onwards, can we see similar or maybe a particular one?
Yeah. See, on an average, we have been in the range of 4%-4.5%, or almost 4.5%-4.6%. This quarter it is almost 5.4%. That's the big difference, because first two months of April and May, as you are aware, there was a huge requirement of labor and deficit of labor on the site. If that could have been converted into sales, then it is almost at 4.5%.
Okay. This quarter we got INR 630 crore, and previously we were looking at INR 6,000 crore and close to INR 5,000 crore from Adani Group. That now will remain the same for this year. Maybe in the second half, are we seeing a significant order coming in?
Yeah, probably we will be in the same range, maybe plus one, minus INR 400 crore, INR 500 crore. But we still remain in the same range of plus INR 5,000 because there are so many other projects which are under discussion, which will be releasing in second quarter and third quarter. So we still remain in the same range of visibility of the orders.
Okay. And the CapEx also the similar 3%, 4% of revenue. So in this quarter, we have done INR 28 crore. That also remains the same, or once the execution picking up?
More or less. Today, it is very difficult to say. But in case there are few projects which the size of the project is large, then the CapEx can be little bit high. But on an average, I think it will be somewhere in the range of 3% to 4% roughly.
Okay. This quarter, sir, out of this broadly INR 853 crore revenue, how much would be the Adani Group revenue? Just to get a, in terms of the pickup in the execution of the Adani projects.
You have it, Hetal?
Yeah. Right now we do not have exact numbers, but it will be mostly around 60%. 55%-60% will be Adani Group revenue. Because we are executing this RVNL around, that is also a high-value project, SMP sales. Around 60%, we can say, it will be from Adani Group.
Okay. Got it. This mobilization advances is entirely kind of interest-free?
Yeah.
Yes.
Working capital, can we see a further improvement in the working capital?
Yeah, that we can see because you might have noticed finance cost has reduced compared to previous quarters. We have utilized less working capital facility, and we have surplus FDs also. Going forward, we expect some more reduction in that.
Then in next two to three quarters, then we will be having a kind of zero finance cost and will be becoming net debt-free.
We can expect so.
Okay. Thank you, sir, and all the best.
Thank you.
Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question comes from the line of Balasubramanian from Arihant Capital. Please go ahead.
Good evening, sir. Thank you so much for the opportunity. Sir, what is our current status of execution of Mumbai projects, especially in Mahim and Matunga side?
In Mahim, the first two blocks foundation, the basic raft foundation, has been done, and we are now in the first placement for work. In Matunga, the piling work is on. Before excavation, first piling is going on.
Okay, sir. Sir, what is the current interest-free advances? I think Madhav has mentioned the overall mobilization. What is the share of interest-free?
The whole amount is interest-free.
Okay, ma'am.
Thank you. The next question is from the line of Dhananjay Mishra from Centrum Broking. Please go ahead.
Yeah. Good evening. Congrats on very strong set of numbers. Just wanted to know any update about this commonwealth project. What is the status? When is it going to be addressed?
I think still we are not having any clear idea. But the movement has started few days back. They have started to make a control room for the Commonwealth development, which is going to happen in Andheri. Probably still nothing on paper or nothing on news that when this tender will be coming up. Last week also we heard that our Home Minister will be attending this class group for the commonwealth discussion also. Maybe in the next quarter, we should hear something for what is going to happen, because now it's high time to start some of the projects.
Okay, sir. This year order inflow guidance, we have not considered anything from that side. Whatever INR 6,000 crore.
No, as far as government projects are concerned, we are not considering order inflow, considering that part of it. In build pipeline, we can consider, but in order inflow, it is always when the orders get cleared.
Okay. Sir, any progress on this UT Medical project collection? Any improvement, or it is still?
Yes, almost three of the projects, EOT is almost at the verge of signing. One day back only I was there in Lucknow to discuss about the last three projects also. Probably by this week or end of this month, first week of August, we will be in a better position to get all the EOTs. So the money will be due and when the money is in place, we expect that the account should close somewhere by end of August or middle of September.
Okay. So both receivable as well as unbilled parts.
Yeah.
Both will better late.
Yeah.
Okay, sir.
Unbilled part is this quarter.
Unbilled also, we will-
Okay.
Under contract.
Yeah.
Okay.
Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. A reminder to all the participants: if you wish to ask a question, you may press star and one. The next question is from the line of Ayush Saboo from Choice Institutional Equities. Please go ahead.
Yeah. Going by your EBITDA margin guidance of 7%-8%, do we expect to meet this guidance by the first or the second half of the financial year? Is there any upside to this guidance, the 7%-8% EBITDA margin?
I think I have already answered, in the second half only. First half, as I said that there is an employee cost is more than 5%. Once the sales is more and we have a full availability of labors throughout the year, we should be in better position in second half of the year.
Thank you.
A reminder to all the participants to press star and one if they wish to ask a question. The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Sir, any update on LCV receivables?
No, not clearly. But, yes, I have one call to go and have some discussion with top management, with the directors. Probably I will be visiting next week, matching their time. They have called me for some discussion. I do not know what is the positive I have seen in that. But yes, they have contacted me to come and meet for the receivables.
What is the outstanding amount of receivables in the books?
INR 90 crore.
INR 90 crore.
Okay. Secondly, on margins, you mentioned 7%-8%. That is for the entire year or only for the second half?
No, it should be for the entire year. But once the execution speed is coming up in the next few quarters, we should be in a better position to go beyond 7% to 8%.
Okay. Sir, lastly, when we see the revenue on the consolidated and standalone books, the difference is for which projects? Is it for Dharavi?
Standalone and console books—you mean to say what are the projects we execute in subsidiary company, right?
Yeah. What is the difference between the standalone revenue and console revenue?
Yeah. Around INR 80 crore of revenue we have booked in our subsidiary. That is some miscellaneous projects which we have taken up in that company.
These are Adani Group projects?
Yeah, Adani Group projects only.
Okay. Whenever now you give the guidance, we should take it as a consoled guidance?
Yes.
Everything will be on a consoled guidance only.
Okay. Thank you, sir. Those are my questions.
Thank you. The next question is from the line of Rushabh from RBSA Investment. Please go ahead.
Hello.
Yes, sir. You are audible.
Yes, can you share on the order book
Your voice is breaking.
Sorry to interrupt you, sir. Your voice is breaking.
Can you hear me now?
Not clear.
Sir, can you please speak to the handset?
Hello.
Yeah.
Yeah, if there is any guidance that you can share on the order book.
Sorry, your voice is seriously not coming that well.
Okay. I'll just try again.
Yeah.
Ladies and gentlemen, if you wish to ask a question, you may press star and one. A reminder to all the participants to press star and one to ask a question. Participants who wish to ask a question may press star and one on their touchtone telephone. The next question is from the line of Vishal Periwal from PL Capital. Please go ahead, Mr. Vishal.
Yeah, thanks for the opportunity. Just a few data points. The order book that is there with us, 13,000 odd crores, what is coming from Dharavi side in this order book? Proportion.
I can't say exact figure what is coming from Dharavi side, but I think there are two projects of Dharavi which is considered in this order book.
3,000.
Okay.
INR 3,000. It is about INR 3,000 crore, right?
INR 3,000. Okay. Overall, I think, in this Adani meet, which happened a couple of months back, when we attended, there was a big opportunity that we could see they were projecting. For us, what could be probably a number that one can look at, because the size is pretty big. Probably, what we are eyeing from this opportunity, any ballpark number that can be shared?
We are talking about Dharavi?
Dharavi, sir.
Dharavi is a development. The first part is redevelopment, and then second part is the development of Dharavi land once it is vacated. As far as redevelopment is concerned, it is going to go for at least four to five years, maybe six years. After the six years, the whole redevelopment is completed, then that land will be vacated, and the fresh development of those land will be coming after six to seven years. Today, out of the first two large projects, which is being announced for Dharavi rehabilitation, that we are doing. Since these two houses has to be made within a period of five years, I think by the time we are through with some of the projects, we can further get an opportunity of the same size later on after two years. Presently, we are the first person to write a rejection.
If we can build up our capabilities in Mumbai, then we will be getting more and more chances. As they have a fixed timeline of making 2 lakh houses, there can be few other players also who can be participating for Dharavi redevelopment project.
Okay. Probably what you have said, just to repeat, the new opportunity for Dharavi will come only once we deliver these two projects. Is that correct?
No. Not only two projects, it is going to be the whole Dharavi redevelopment is requiring 2 lakh houses to be built first. Once those 2 lakh houses are built in phases, after three years, if we are able to deliver 40,000, 50,000 houses, those 40,000 or 50,000 houses will be shifted from Dharavi to this different new location of redevelopment. Later on, those lands will be vacated, and then only the new development of Dharavi will start.
Okay. Got it. In terms of your presentation mentioned, we have deployed almost 16,000 plus laborers across the project site. Just to understand the intensity of it. Historically, how this number has been, and it is becoming 16,000 crore. Just to get a perspective, can you share the previous numbers, what it used to be like?
It is very difficult to mention this previous number because it depends on the typography of the work going on each project. Presently, my requirement is in the range of 16,000 to 17,000, and we are almost through with the requirement of all the projects. In peak load, we can say still 3,000 to 4,000 number will still be added in next one or two quarters, because more and more activities start at each project. Some of the projects are in foundation, some of the projects are in finishing, some of the projects are in MEP. It depends on what type of activity is going on. If it is purely core and shell, then the requirement is little bit less. But when the project core and shell is over and all finishing, MEP, and everything is going on, there will be a requirement from different trades also.
Okay. Sure. I think that's all from my side, sir. Thank you very much.
Thank you.
Thank you. The next question is from the line of Jainam Jain from DAM Capital. Please go ahead.
Thank you for the opportunity. Sir, my first question is, I wanted to understand what sort of impact we have seen on the cost front because of the raw material escalation. Out of the total order book, what is the percentage of the order book which is fixed price in nature?
As we have been telling you every time that most of the projects, all Adani projects, are pass-through costs. There is not much impact on any of the projects of Adani. 30% order book, which is consistently of our order book, which was in the tune of INR 5,500-INR 6,000.
Last projects are almost under completion. Rail Vikas Nigam Limited, as Pooja already said that it is going to get completed by October. Shankaranarayana Constructions tower we are going to complete by next June 2027. Dharoi package 1 is completed; package 2 is going on. Ambaji is my fresh order, so it has not much impact because now the things are little bit improving. We can say that a few of the activities at Shankaranarayana Constructions and Rail Vikas Nigam Limited were impacted because of the cost of aluminum and copper going little bit high.
Okay, sir. Sir, my second question is, are there any new segments which we are planning to enter post the acquisition of the new parent?
Pardon me. Again, repeat your question.
Sir, are we planning to enter any new segment after Adani has acquired us? Are we planning to enter a new segment completely?
No. As far as our expertise is concerned and as far as what infrastructure we have created, we will try to remain in building only. But building anything like from industry, data center, commercial, water, hospital, anything, but not out of any projects which is not related to buildings.
Okay, sir. These answer my question. Thank you so much, and all the best.
Thank you.
Thank you. The next question is from the line of Rushabh from RBSA Investment. Please go ahead.
Yeah. Am I audible now?
Yeah.
Yes. Just wanted to clarify on the order book. What could be this number at March end? Is there anything that we can share on this side?
I think, as we have already told you, that we'll be expecting some 5,000 to 6,000 crores of order book. If we complete that, we are able to execute more than 4,000. You can calculate what will be outstanding in order book between this, in same range plus 1,000.
Okay. Sir, I'll ask also. In the northern side of the state and Gujarat and Maharashtra, any major projects are they looking out for? Maybe even projects.
No, presently, we are focusing on our own projects and Adani projects. We mean, try to make our order book between 75% to 25%. Yes, 25% non-Adani and 70% to 75% is Adani. As far as visibility is concerned and the order is concerned, we have sufficient visibility for next two years. So we are not going to enter into different region as of now. We'll be focusing on Gujarat and Mumbai only.
Okay. In terms of the Dharavi work that you mentioned, what is the total pool of order that Adani Group is trying to execute? What would be PSP Projects' share of that building in whatever the Dharavi project has to be done? Is there any
Mention what will be the share is difficult, as I answered before two minutes that this is a long five years project and they have to deliver 2 lakh houses. Probably if we are able to perform well in next one and then after two years, we will get the first site of refusal as far as Dharavi is concerned. But to complete the project within five years to make 2 lakh houses so that the evidence can be shifted to the new houses and the redevelopment of the Dharavi land can be taken up after five-six years. They can give it to some other contractors also. But PSP Projects will always have a better edge as far as being a part of this Adani Group company.
Just on the capability side, so that we are in the first two major instruments, we have the right of first refusal. What all things have been done in the last six months or nine months to ensure that execution side we don't falter, or we will be able to at least exceed the expectation?
Yeah, that's what I said that this month's employee expenses have gone little bit high. Then we are building up the team. We are building up the team to multiply ourselves to 1.5x to 2x from last year. So we are in the process of expanding ourselves so that we can cater more and more orders from Adani Group and deliver their project on time.
Okay. Thank you.
Thank you. The next question is on the line of Jainam Shah from Equirus Securities. Please go ahead.
Yeah. Hi, Sir, Am I audible?
Yes, sir, you are audible.
Yeah. Just one question. While you are mentioning the building side, when you mentioned the data center part as well. Just wanted to check, do we have any specific order from the data center, maybe just the APC work of the building? Are we planning to enter into it? What kind of size we would be looking at? Because this is a segment which can, let us say, drive our order book going forward to a larger extent. What is your view on that particular segment? Is it going to be like, let us say, 10%-20% of our group or it is just something that we are starting as of now?
See, presently we are focusing in Gujarat and Mumbai, and specifically Mumbai, as we have already declared, will be a better part of Dharavi only. As far as data centers are concerned in Mumbai and the new data center which are coming up in Visakhapatnam, I think we are not that part as of now. Later on, we do not know because it is again a part of a building only. That can come to our order book. Since we are going to develop in Gujarat, like Dholera, there are two lands. One is for the data center, and the second is for defense. Those types of work can come in future. As of now, we will be focusing on airports, city side airports, regional realty, their own requirement of housing colony at Mundra and Madhi city. Madhi city, both the projects, that can come later.
First, we are already started in Mumbai and Mumbai it will come after three to four months. Probably these two projects we can consider can be a part of PSP. One is already a part of PSP; the second can be a part of PSP in the future.
Got it, sir. Okay. That is it for myself. Thank you.
Thank you. The next question is on the line of Urvib en Patel from Infinite Wealth Advisors. Please go ahead. Ms. Urvib en, can you hear me?
Hello.
Yes, sir, you're audible.
Am I audible?
Yes, sir.
I want to know, sir, what is the revenue in this quarter from Precast side?
See, I think we don't have a separate revenue for Precast side because the projects which we are doing is a part of the Precast also. We do not have a separate identity, but I think we are doing better and better. Throughout the year, Precast plant capacity is in the range of INR 200 crore. We'll be executing about INR 150 crore to INR 200 crore throughout the year, whatever may be the project. Getting exact revenue for Precast, we don't have the figure, but in general, you can understand that the Precast can generate a revenue of INR 200 crore from the plant side.
Okay, sir. Approximate Precast margin, sir?
It is really part of the business, so it remains in the same margin as people we are working. As of today, we are not working for any other projects except Adani. We were previously working on some infrastructure work for L&T. Now we are purely focusing on buildings, and those buildings are also related to Adani Group only.
Got it. Thank you.
Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi. Sir, just to get clarity on Dharavi. So INR 3,000 crore order book that we have, which if we translate in terms of the number of houses, is it just the entire 45,000, 50,000 houses that we want to build that is a part of this INR 3,000 crore order book, or this will be an even lesser number?
No. It will be a lesser number. But you are correct; INR 3,000 crore, each house is in the range of INR 10 lakh to INR 12 lakh. If you consider 350 square feet and INR 3,500 per square feet as the cost of the house, it is about INR 10 lakh per house. So INR 3,000 crore means 30,000 houses we are presently building. The total is 2 lakh houses. So what we can consider as total Dharavi development, it is 2 lakh houses, out of which we are making 30,000 to 32,000 houses today by doing these two projects.
Okay. Once these two projects will be over, then only we can take the new, or it can be even the made of this ongoing, we can also take other Dharavi projects also.
Shravan , we should understand, most of the countries, when they have settled project and it is going beyond the basement and first to second floor, all the other floors are typical. The complexity is more at the foundation level. Once any good site is settled, you can always start a new site. But that depends on how we are established in Mumbai and how we are performing on these two projects. Once we are stable in these two projects, we can always take up a third or fourth project of Dharavi.
Okay, got it. Hetal ma'am, this quarter, the tax rate was 35%. For full year, can we have this normal 25% tax rate, or it would be on the higher side?
No, it will be slightly on the higher side because there are certain expenses which are not deductible in taxes, so it is a permanent difference. For the year, it will be slightly on a higher side.
Okay. If you have to look at in terms of the cash balance versus what we report. As on March, let's say we were having around close to INR 430 crore, INR 431 crore cash. Against that, as on June, the cash level would be just similar INR 400 odd crore?
Cash, you mean to say—
Cash and bank, what we report as balance sheet.
Yes.
Combined.
Yes. It will be on the same level. It will be slight higher, mostly.
Okay. Thank you.
Thank you. The next question is from the line of Sanjay Kohli from Goldstone Capital. Please go ahead.
Good evening, and congratulations on a very good sales growth this quarter, and especially with better working capital. That is very encouraging. Prahalad, you mentioned this pass-through cost projects. What is the margin you are keeping in them?
It is more about cost plus percentage on overall cost of the projects. It is not about what is the margin on pass-through. Most of all the materials, whatever we are buying, it is always a pass-through. Once we understand the cost part, we put one base as a cost. When we are calculating cost plus percentage, we are putting one X cost, and when we buy it, there is a difference, and that difference is already paid in the running bill. Hello?
Hello.
Yeah.
Okay. I haven't fully understood.
When we talk about cost plus percentage, it is on the overall cost of the project. So that whatever cost which we have decided as overhead, profit and profit on material and profit on labor, it comes as a consolidated figure, which will be in the range of 20%-25%, which we usually going to be. When we talk about each of the materials, there is not a separate percentage for each of the materials. That's what I'm trying to say.
Okay. So the margin will be decided, and as and when the material is utilized, it's all inbuilt into the material.
Exactly.
Into the ongoing billing, it's all inbuilt.
Yeah. It is an item rate contract where the materials which you are utilizing comes at a base rate when you quote it. But when you buy it, if there is a difference on plus or minus side, that difference is again paid in the bills.
Okay. What is the low and high range on these projects, on the cost-plus projects?
It is never. You meant to say the inflation part of the material, which is going on?
No, the pre-decided cost plus on the past two you had mentioned; most of the Adani projects were the cost plus. So what would be the range? 10%-20% or something like that?
We already said the total EBITDA level when we talk about Adani project, it comes in the range of 6%-7%. We talk about projects which are deep PSE; we have been doing at a range of 8%-9%. So at EBITDA level, you can consider the cost-plus formula of 7% at EBITDA.
Oh, so it's very tightly controlled. It's not a large range. It's a very small.
Yeah.
It's a very small range from project to project.
There is always a gap of 1%-2% in terms of execution. These are standardized rates for each type of project. If I am working in Mumbai, there will be a difference of 3%. If I am working in Mundra, there will be a difference of 1.5%. So it depends on what type of project you are doing, and sometimes what are the overheads which we have considered, is the type of project. Then we can have a saving on 1.5% on the overhead side also. So this is one of the examples. Once we go through it one or two years, we will get a clear idea how does this cost-plus formula is complete, but mathematically it is coming at seven.
Good. Okay. Thank you.
Thank you.
Thank you. Ladies and gentlemen, we take that as the last question of the day. I would now like to hand the conference over to the management for closing comments.
Thank you all for joining us today and for your active participation in the earning conference call. We sincerely appreciate the continued trust, confidence, and support of our shareholders, investor analysts, and our stakeholders. We hope we have been able to address your key questions and provide a clear perspective on PSP's performance growth plan and outlook for FY 2027. Should you have any further queries, please feel free to reach out to our investor relationship advisor at EY, who will be happy to coordinate with us and assist you offline. Thank you.
Thank you, everybody.
Thank you.
On behalf of Ernst & Young, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.