Ladies and gentlemen, good day and welcome to PSP Projects' Q3 FY 2026 Earning Conference Call. As a reminder, all participant's 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Arpit Mundra. Thank you, and over to you.
Thank you, Ina, and good evening, everyone. Welcome you all to PSP Projects Limited Q3 FY 2026 Earnings Conference Call. To take us through the results and answer your questions, we have with us management of PSP Projects, represented by Mr. Prahaladbhai Shivrambhai Patel, Chairman and MD, Ms. Pooja Patel, CEO, and Ms. Hetal Patel, CFO. Please note that the discussions that we may have today may contain certain forward-looking statements relating to 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 the earnings call is the copyrighted material of PSP Projects and cannot be copied, rebroadcasted, attributed in press or media without the specific and written consent of the company. Now, I would like to hand over the call to Ms. Pooja Patel, CEO, for our opening remarks.
Thank you, and over to you, Pooja.
Thank you, Arpit, for the introduction. Good evening, everyone, and welcome to the earnings conference call of PSP Projects Limited to discuss the financial performance of the third quarter and nine months ended December 2025. We concluded our board meeting earlier today. Let me begin with the financial highlights of the quarter and the nine-month period. During Q3 FY 2026, the company delivered its best-ever quarter revenue, reporting INR 771 crores from the operations, representing a 24% year-on-year growth and an 11% quarter-on-quarter increase. For the nine months ended December 2025, revenue stood at INR 1,978 crores, reflecting a 9% year-on-year growth. The improved performance was driven by strong project execution, supported by better work front availability and improved labor deployment. As of December 31st, 2025, the company's outstanding order book stood at INR 9,178 crores, registering a 43% year-on-year growth.
Of this, within group project accounts for 59%, while the external project constitutes of remaining 41%, that is INR 3,738 crores. We observe that the breakup of the order book is missing in the current investor's presentation. Accordingly, we are sharing the details of major external projects for your reference. SMC High-Rise Building, INR 835 crores. Gati Shakti Vishwavidhyalaya, INR 325 crores. Development of Dharoi Dam Region, INR 280 crores. Construction of Fintech Hub Building at GIFT City, Gujarat, INR 264 crores. Sabarmati Riverfront Development Phase Two, INR 245 crores. Company orders inflow during Q3 FY 2026 amounted to INR 957 crores, marking a 151% year-on-year increase. Since inception, company has completed INR 253 crores, with 82% from the private client and remaining from the government client. As of the quarter end, the company is executing 67 ongoing projects, of which 88% are in Gujarat, while the remaining 12% are spread across Karnataka, Uttar Pradesh, Delhi, and Maharashtra.
During Q3 FY 2026, the company successfully completed five projects, including major projects. Among those includes Veer Savarkar Sports Complex, Ahmedabad, one of the first stadium up for Commonwealth Games 2030 and aiming Olympics of 2036. Terminal one and Terminal two Corporate Area Development at Ahmedabad Airport. Studio building for SAP University. Industrial project for tea processing facility for Wagh Bakri Tea Group. The company currently has a bid book of INR 6,600 crores, with 60% from group projects and 40% from external projects. We are pleased to say that within the external bid book, the company has emerged as the lowest bidder for Ambaji Corridor Development Project, valued at INR 965 crores. Now let me share certain project level updates. SMC, we have completed major work for core and shell for the project, and currently MEP and finishing work is going on, and facade work will be starting soon.
RVNL, out of three buildings, two buildings core and shell is completed. Third building is going on as per schedule. Currently, MEP and finishing activities are going on. For Dharoi project, phase one is on handover stage, and phase two project, all the major activities are going on as per schedule. Other than that, in the matter of PSP versus Bhiwandi BNCMC, PSP Projects received a favorable arbitral award dated January 11th, 2026. The arbitral tribunal has directed BNCMC to pay PSP Projects a principal amount of INR 61.44 crores. Additionally, BNCMC is required to pay interest at 9% per annum occurred up to the date of award within 60 days from the date of award. With this, I would like to now hand over the call to our CFO, Ms. Hetal Patel, to share the financial performance of this company.
Thank you, Pooja. Good afternoon, everyone. The financial performance during the quarter ended December 31st, 2025 is as below.
Quarter three FY 2026 versus quarter three FY 2025. Revenue from operations for the quarter is INR 771 crore versus INR 623 crore, which is increased by 24% on YOY basis. EBITDA for the quarter is INR 52 crore versus INR 35 crore, increased by 47% on YOY basis. EBITDA margin is at 6.73% versus 5.67%. Net profit for the quarter is INR 16 crore versus INR 6 crore, increased by 159% on YOY basis. During the quarter under review, employee benefit expense has increased from INR 33 crore -INR 41 crore on YOY basis, mainly due to increase in provision for gratuity and leave encashment as a result of application of new labor code notified in November 2025. Increase in depreciation from INR 19 crore -INR 24 crore on YOY basis is mainly attributable to additions in assets as of now during the current financial year.
During quarter three FY 2026, company has incurred CapEx of INR 80 crore and year-to-date CapEx addition is INR 153 crore. Gross block stands at INR 762 crore and net block is INR 414 crore as on December 31, 2025. Would like to mention few of the important balance sheet numbers as on December 31, 2025. Long-term borrowing is INR 25 crore, including short-term maturities of INR 16 crore. Short-term borrowing is INR 364 crore, excluding short-term maturities of INR 16 crore. Net unbilled revenue is INR 648 crore. Trade receivables are INR 635 crore, and trade payables are INR 436 crore. Retention is INR 163 crore. Mobilization advance is INR 524 crore. Inventories of INR 344 crore comprises of INR 175 crore of construction material, INR 149 crore of work in progress, and INR 20 crore of finished goods.
Out of total sanctioned credit facility of INR 1,497 crore, company utilized non-fund based facilities of INR 703 crore and fund-based facilities of INR 294 crore, and limit available for utilization is INR 500 crore. As on December 31, 2025, the company has total fixed deposit of INR 215 crore, out of which lien free deposits are of INR 43 crore and FD worth INR 147 crore are under lien with banks for credit facilities and FD worth INR 25 crore is given as security deposit to the client. Work on hand as on December 31, 2025 is INR 9,178 crore. This comprises 27% order value from government projects and 73% from private projects. Work on hand within Gujarat comprises of 82%, Maharashtra 14%, and rest 4% from other states. Outstanding value of projects from entities within group comprises 59%, and external projects are 41% of the total work on hand.
That concludes the update on the financials, and we are now open for the question and answer session. Thank you.
Thank you. 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 remove 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.
Thank you. A couple of questions. First, on the guidance front. Last time we said around INR 3,200 crore revenue for FY 2026. Considering 9% growth in nine months, the fourth quarter, the aspirate is too much, 86% kind of a growth, INR 1,200 crore odd something. First, on the revenue front, how much are we looking at for the fourth quarter? For the entire FY 2026 and if possible for FY 2027, how one can look at the revenue and that too also if possible if you can bifurcate in terms of the Adani and non-Adani revenue, that would be helpful, Sir.
Shravan, first of all, to answer your first question related to orders even with this year, I think we have committed around INR 3,100 -INR 3,200. We will stick to that; it will be there. But we are confident that the projects which are now under finishing will be able to make up by March end. For the revenue part, constitution for the next year, I think it is little early. Let us complete this part, but mostly it will be somewhere in the range of INR 4,000 + crore. But we are sure because of the order book which we have and the commitment which we have made for next year.
Sorry, Sir. For this year you said INR 2,300 crore.
INR 3,100 -INR 3,200, which I have already committed in last call also, that we stick to that. Probably there won't be any problem in getting that revenue as far as the planning is concerned, the pace of the work which is going on, and most of the projects are in the phase of completion and finishing. It will be able to make up that revenue. For next year, it is too early to mention about the revenue, but once we complete this first year, 2026. But looking to the commitment which we have done, it should be somewhere in the range of INR 4,000 - INR 4,500 minimum. [crosstalk]
Okay, got it. The way the work is going on, Sir, in the fourth quarter, we should be able to do INR 1,100 crore - INR 1,200 crore kind of a run rate to get a INR 3,100, INR 3,200 crore.
Right.
Yeah. Sir, second is on the order inflow and margin. Still, we are not able to see the improvement in the margin. In the fourth quarter, how one can look at the EBITDA margin and for next year, or maybe next two years also, if somebody has to look at 8%-9% margin, which we normally used to guide, is it possible to achieve in 2027, 2028? For fourth quarter, how one can, given the revenue will be significantly higher, can we see a kind of 8%, 9% EBITDA margin in the fourth quarter itself?
See, Shravan, if you have heard Swati Mehta already mentioned there is an incremental operating expense because of employee benefit, which is to the tune of INR 8 crore, which is this quarter only. If you add to INR 54 crore, which we have already shown as EBITDA, it comes to INR 62 crore. If you consider that part also, then we have almost reached to 7.71%. What we told you that we'll be near to 7%-8% this quarter and probably on an average 8%-9%, that still is achievable. Though it shows 6.71%, that's an interest of 1% directly because of this new labor law.
And Sir, this INR 8 crore labor laws from fourth quarter, this run rate will continue, or this is for the one time that we have done?
No. It will be one time effect only. We have already taken the effect, this past service cost, so that we have taken to the P&L. Now from next quarter onwards, there won't be any effect as such.
Okay. And Sir, now in terms of, we already have a INR 5,000 crore order inflow. So, in the fourth quarter, how much more are we looking at? And this INR 965 crore Pooja said in the start, that we have already got from the Adani Group. So just to clarify on that. [croosstalk]
Out of the 965, I think that [Biocon station] is live. That will include [Biocon station]. How much is Adani Group and how much is the other company?
[inaudible]
It is 100% Adani Group only.
Okay. So, one can say that we have got close to INR 5,965. So INR 6,000 crore, our order inflow till now. So how much more one can look at by March end?
INR 4,949. This quarter three, but what is the expectation till March. Another INR 3,000 crore can come, which is under discussion.
So INR 3,000 excludes this INR 965 crore or it includes?
It excludes.
Okay. Next year onwards, this 7,000-8,000 run rate one can look at in terms of the order inflow?
We should look into as per our performance. If we are able to measure with the requirements of the group, I think 7,000-8,000 is to be considered for next year.
Okay. Thank you, Sir. All the best. I have more questions. Will come back in queue. Thank you.
No problem.
Thank you. The next question comes from the line of Vaibhav Shah from JM Financial. Please go ahead.
Yeah. Sir, the issue that you were facing on the U.P. project, so now there are no overruns in Q3, right?
Right.
Only one-off in the quarter was regarding the labor cost. Otherwise, the other costs are normal.
Yes.
Secondly, on the depreciation front, this run rate should continue of INR 24 crore-INR 25 crore per quarter?
Yeah, it should continue because we have already added INR 153 crore in the current financial year, so it will impact every quarter going forward.
Depreciation are we targeting for the entire year?
Yeah. This is basically to be utilized for next two years. Most of the projects which we have started for Adani Group, all these projects require new structuring materials, new equipment like crane and other equipment. So most probably this will remain as a part of depreciation, but at the same time, this revenue will start in next year only.
CAPEX target for the entire year?
Sorry, CAPEX amount for entire year?
Yeah.
For nine months, we have expended INR 153 crore and further around INR 40 crore-INR 50 crore we might be incurring.
Around INR 200 crore for the entire year.
Yes.
Going ahead, 2027, 2028 also, this should continue or we may see some fall in the CapEx amount?
If you consider the part of the project which we have received from Adani Group, which is to the tune of INR 37, and if you consider the 2% - 3% as equipment part, I think that is what we have spent. Probably from next year onwards, there will be little bit less CapEx cost for this project which is already started. But for any new project which is coming up from the group, again, there will be requirement of CapEx as and when required. But maximum, as an overall, we need 3% - 4% of our overall revenue, which we always say, and which is what we have spent every year in past few years also.
Okay. Sir, last year, regarding the Bhiwandi award, so INR 61.4 crore for this, should they come to us or the client can again go in arbitration and go in the further court?
The court has given a commitment, them a time of two months, so that after two months, if they do not go to the court, this has to be reimbursed. For again, beyond 60 days, that interest rate is announced as 11%. Presently, the interest for after the announcement till date is 9%, but later on, once the 60 days is over, it is 11% interest. Let us wait and watch whether they go to other court or not.
Okay. And Sir, what will be our receivables from the SDB now? I think some amount was pending.
The receivables still remains the same what we were having in last quarter. Only thing is now it will be paid with interest as they have committed. But it is same as last quarter.
Sir, what was your number?
96.
96.
96. Okay. Thank you, Sir. Those are my questions.
Thank you.
Thank you. The next question comes from the line of Rahul Kumar from Vaikarya Funds. Please go ahead.
Yeah, hi. Just on execution, I think whatever the execution we have done in Q3, is it in line with your expectation or were there any challenges during the quarter?
No, it is within our expectation. As in the last quarter also, I said that whatever things has happened in last two to three quarters because of the extra cost which we have incurred in the projects related to U.P. Now that has been streamlined and overall the revenue or overall the project cycle with which we are going with 60% from Adani Group and most of the projects in Gujarat from non-Adani. I think it is as per expectation. Only thing is INR 8 crore of provision made that may has made the 1% EBITDA less. Otherwise, 7.71% is above 8%, which I already said that we'll try to match to 8%-9% from next year onwards.
Okay. Sir, I was asking in terms of more on execution of the projects. Is that in line with your expectations?
Pardon me.
No, I was saying in terms of the project execution, how much you have done the construction and completion of the project. Is it in line with your expectations or were there any challenges?
See, it is always better to have more and more. We said we can do better and better. But what happen is usually the environment which sets the deployment of labor, availability of labor, and the weather, these three permit, we always wish that work should go on smoothly. But depending on the type of project, sometimes some of the projects may not have clearance in terms of design or at sometimes clearance in terms of approvals. That can hit during such good season for construction. But overall, I feel that we may have fall about INR 5 crore less. Otherwise, it is within my expectation.
Okay. During the quarter, was there any issues of labor availability, and has that sort of improved?
No, I don't think so. Maybe, depending on type of project and the current availability, there can be a shortfall of 8%-10%, but not as such as a crisis of labor as we generally see in the season of April to June. Overall, it can be a shortfall of 8%-10%, depending on situation and location of the project.
Okay. I think you mentioned that there's 14% projects which are done in Maharashtra. Just with respect to that, how is the receivable situation over there?
See, I think-
Currently
The major projects which we are doing today is the mine, and that project already the strip mining has been some excavation. The last layer of excavation is going on. Probably by March, we should be in the position to start our foundation, and we will be able to generate more revenue from then onwards.
Okay. Are you facing any challenges on the cash flow front on that project?
No, as such today, there is no problem of cash flow in that project because it is investment on the Adani Group, that money is not coming-
Okay.
Because the investment on the Adani Group.
Okay. Got it. I think in this quarter, you have seen a decline in the gross margin on a QOQ basis, I think by 70 basis points. So what would have driven that?
So as I already told you, there was a hit of INR 7 -INR 8 because of the labor court division. That has given you a drop of 1.5%. Otherwise, last quarter it was 6.5%. Here, it is 6.71%. It could have been 7.71% if that labor court could not have been taken.
Actually, I was more referring to the gross margin front and not exactly the EBITDA margin front.
Gross margin.
Yeah.
You meant to say from quarter to quarter?
Yes. Versus Q2, I think it has declined by 70 basis points.
Construction cost, you are saying?
Yeah. Construction expense and cost of materials combined.
The projects are newly started, right? They are at the initial level of execution. So that margin might be affected in initial stages. As we already mentioned in last quarter also, we have started many new projects.
Okay.
Because of that effect can be there on the price.
Got it. I think on the order floats front, I think if I see Q2 versus Q3, I think we have seen that institutional and government order book has actually declined. Can you just help us understand the trends in that two front, how is it looking, let us say, now versus September?
As far as order inflow is concerned now, being a partner with Adani Group, we are having plenty of inquiries from their side, and we would like to maintain our presence in the market by keeping about 15%-20% as non-Adani and 75%-80% from Adani Group. That is how we are not also bidding for the smaller projects of the government side. The project which we have bidded at INR 957 crore of this Ambaji corridor , which was one of the largest and prestigious projects of Gujarat, where we have already stood lowest and we are waiting for that order. Order inflow in terms of government or the non-Adani will be on selection basis because as far as the group is concerned, we are having plenty of work to do.
Okay. And currently, what is the split of Adani and non-Adani order book?
40.
Okay. So basically, this 40 should go down to 20 and then, because of which you are seeing some Okay. Got it. Thanks.
Thank you.
Thank you. The next question comes from the line of Vishal Periwal from PL Capital . Please go ahead.
Hi, Sir. Thanks for the opportunity. I think one question is on inflow. You did mention in the PSP order inflow of almost like INR 5,000 crore. But if you look at the order book, which we generally give on a quarterly basis, so it looks like the inflow is some different number. So there is certain cancellation of orders are also there. Is that fair to understand?
Basically, see, once certain projects are over, we have to foreclose certain amounts because even during this quarter also, we have closed certain orders. Remaining order value, we need to short close. Because of that, and also within existing orders, there are certain orders where we have short closed certain amounts. That amount has been reduced. That amount can be the difference pickup.
Okay. Because I think that number comes to almost INR 3,700 crore in the report.
No. It cannot be that much. It is around this year only. INR 100 -INR 150 here.
Sure, Ma'am. Second, I think in terms of the inflow that we get from the Adani Group. What is the nature of the project? Is it largely a real estate? Because the reason I am asking is we have seen residential pie has increased in the segmental order book, as well as the institutional one. Which generally we do a work of, say, educational institutes or, I mean, hospitals. Just thought to check.
No, as far as Adani Group is concerned, I think we have a less order book from realty. Most of the projects are institutional or their own CapEx. Whether it is a residential colony for their Mundra plant, whether it is a residential colony for the Dharoi project. There are few projects related to airports, and there are few projects related to their own institutional requirements at Ahmedabad, but not much on realty side.
Okay. Sure, Sir. I think this is helpful, and I will come back in the queue.
Thank you.
Thank you. The next question comes from the line of Bajrang from Sunidhi Securities. Please go ahead.
Sir, congratulations for both growth and execution side. My question pertains to Dharavi side. If you could guide what is the development, because in the recent BMC elections, we have seen all the five blocks have been won by non-BJP candidates from Uddhav camp and the Sindhutai, the other NCP camp. How do you see that, whether this will put some sort of delay mechanisms or some sort of chaos there for the development part? How do you see this development in terms of Dharavi project? Also some insights on the Commonwealth Game side, how is the progress? When the tenders are expected?
You know how this thing is going to go through. Thank you, Sir.
First of all, this is the news which I am hearing from you that was the participant in the election. Anyway, it is actually not my job who is going to rule as a corporate or how it is going to impact on us. But till now, there is no impact, and we should not worry about that impact also because it is at the end of the day, group levels fall. We are just a part of construction, and as far as construction is going on, we are almost at the finishing of excavation and probably maybe one or one and a half months we will start the foundation.
Okay. So Sir, in terms of new order intakes on the Dharoi side, any broader guidance or the guideline that you can give how much that probably we are expecting in the near to medium-term timeframe?
We are in the discussion of one more project of Dharoi, which is on the Matunga plot, which will be in the range of INR 2,000 crore.
Okay, in the near term.
Yes. Mostly it should close before March.
Okay. And Sir, what about Commonwealth gains that tend to-
Commonwealth, yes, has been announced. I think what we are hearing from the news, the same thing which we have knew year and year is the same, but probably what we are knowing much as far as [in the index construction]. There are two tenders here which are going to come for four stadiums, which is yet to announce. We are waiting for those tenders to come, but that is in the range of INR 7,000 crore-INR 8,000 crore. But that cannot be one package, maybe it can be splitted into two or three. We are still waiting how the tender starts coming on the table.
Okay, so this will go into FY 2027. Nothing is expected till March, right?
No, no. I do not think so. It should be concluded within these two months. So, this should be last one because it should be from the government that they should be in a position to close it before March to announce the tenders but probably for a contracting firm like us to be considered to be the participant, it will be next year.
Okay. Okay, Sir. Thank you and all the very best, Sir.
Thank you.
Thank you. The next question comes from the line of Prajwal from Equirus Capital. Please go ahead.
Yeah. Hi, Sir, for the opportunity. Sir, just wanted to have one clarification. The subsidiary that we have, the PSP Projects and Proactive subsidiary, are we doing any projects over there? Because there has been a jump in the revenues in the consolidated number as compared to the standalone number, which used to be similar. So how we should look at that particular subsidiary and what kind of work and orders that subsidiary is doing?
See, there are one or two reasons that we have maintained subsidiary little live because we are getting few orders of MEP which is going to be a part of new construction. So we take some of the orders of MEP in that part. Also some of the projects are splitted into labor and material. So there also we have taken like supplier materials with subtitles and the orders are splitted into two as services and material. So that is usually required by some of the clients where they know they are going to rent the project. So, they usually ask for two parts of a ordering system, wherein one is material service, and one is material.
Got it, Sir. Got it. Yeah, that's it from my side. Thank you so much.
Thank you. The next question comes from the line of Bala subramanian. from Arihant Capital. Please go ahead.
Good evening, Sir. Thank you so much for the opportunity. Sir, earlier Dharoi project has been delayed due to excavation and-
Sir, please speak little loudly and I think there is so much noise from surrounding.
Okay, Sir. Can you hear me, Sir?
Speak little louder, please.
Yes, Sir. Sir, Dharoi project has been delayed due to excavation and sheet piling, and how is that progress right now?
Dharavi project is denied, no?
No, no, it's been delayed due to excavation and sheet piling.
Actually it is not delayed, but because that project requires when you are going in a basement and it is very difficult task in Mumbai for the excavation part till sheet piling is done. First the sheet piling that was much large as that it's a huge basement. At the same time, when you go beyond 6 m, there is always a stone. That also required little bit time itself. We are not allowed to do blasting. Probably those two activities are common in Mumbai. But at least, we are now in a good position that almost the excavation is over maximum within next one month.
Okay, Sir. Sir, the QIP proceeds used for debt repayment and what is that target and net debt to EBITDA ratio by end of this year? How much interest cost we can expect to save from next financial year?
Sorry, can you please repeat the question?
Madam, the QIP proceeds majorly used for debt repayment. What is the target and net debt to EBITDA ratio by end of this year? How much interest cost savings we can expect?
QIP we did two years back, right? At that time, we have proposed that fund to utilize for that. Now the situation is like we have utilized our working capital facilities, but at the same time we have incurred around INR 150 CapEx for this year. Even last year also we have incurred a huge amount of CapEx. Against that we haven't borrowed any long-term loan against any equipment.
That is the reason our fund-based facilities utilizations are increasing. At the same time, we have to pay advances to suppliers also, because our high-value items, they need terms of advances. Because of that fund-based facilities need to be expanded for that.
Okay. The CapEx is majorly funded through internal accruals or any debt we are planning further, madam? Because earlier that annual CapEx guidance is nearly 3%-4% of revenue. But also planning high-value cranes for pre-cast, so it will lead to 4%-4.5% of sales.
Yeah. [Sujaman] has already mentioned that this CapEx of INR 200 crore for this quarter may not be happening at the same range in next year. The revenue generation will happen in next couple of two years or so. Yeah, as you said, 3%-4% we have to incur. That revenue will be generated in next financial years.
Okay, madam. Madam, this Bhiwandi claim of INR 250 crore and INR 100 crore arbitration is still ongoing. When we can expect favorable outcomes, and if there is any contingency liabilities there, how it will reflect our financials?
Regarding Bhiwandi claim, [Sujaman] has already mentioned in her speech that we have received a favorable response from arbitrator, and that is around INR 61 crore is passed and plus interest till the date they paid. That arbitration process is over.
Mr. Bala, you may rejoin the queue for the follow-up question.
Okay, madam.
The next question comes from the line of Ayush Saboo from Choice Institutional Equities. Please go ahead. Mr. Ayush Saboo, please proceed with your question. Mr. Ayush Saboo, are you there? As there is no response from Mr. Ayush Saboo, I need to move on with the next participant. The next is [Himanshu Khattar] from Green Portfolio. Please proceed with your question.
Hi. The management in the previous earnings presentation guided for order book of around INR 14,000 crore - INR 15,000 crore by the end of FY 2026, as they saw significant order flow coming from Adani Group. Are we still confident on achieving that order book by the end of financial year?
At present, outstanding order book is to the tune of INR 9,100 crores. Probably if we add INR 2,000 crore-INR 3,000 crore which we are expecting by March, that will be in the range of INR 12,000 crores minus the quarter. We may not reach to INR 14,000 crores, but we will be in the range of INR 11,000-INR 12,000.
Okay, that's very helpful. Second thing, can we talk about the EBITDA margin? The EBITDA margins that you are expecting from Adani projects, is it in the similar range of 8%-10% which you have guided, or is it on the lower or higher end of that?
We already said it will be in the range of 8%-9%. We never said it will be in the range of 8%-10%. Probably if it is decided as cost plus percentage, that should land between 8%-9%.
Okay. Thank you so much.
Thank you. The next question comes from the line of Bhavin Modi from Anand Rathi. Please proceed.
Yeah. Hi. Thank you for the opportunity. I just wanted to ask, with the recent increase in the commodity prices, can that have impact on our margins, and how should we look it with forward?
The commodity margin, majorly it is aluminum and copper. All those projects which we are doing with the government or there is a fixed price contract that covers in price variation with RBI index, that can have a little bit impact. But as far as Adani Group projects are concerned, anything related to rising commodity is not going to be hit to the PSP's profitability.
Okay. So the hike in the prices, it will be like a pass-through?
Yeah. It will be a 100% pass-through as far as Adani Group is concerned.
Okay. Got it. That is it from my side.
Thank you.
A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi. Thank you, Sir. Hetal, Ma'am, what is the cash and cash equivalent as on December, which was INR 192 odd crore in September?
Sorry, I didn't get. Cash and what?
Cash and cash equivalent. In September it was INR 192 odd crore. So, against that in December, the number would be?
See, mostly our cash and cash equivalent comprises of certain deposits which are maturity falling within three months, right? We should talk about the overall deposit level. This time it is INR 250 crore, and I think in September it was on a higher side. It was around INR 230 crore. To that extent, it has reduced.
Okay. But in terms of reporting the balance sheet, the way we report where we have reported In September, so that bank and cash totals around INR 192 crore. So, against that, if I have to look at, the number would be INR 10 crore-INR 15 crore lower only.
Yes.
Yeah. See, this cash balance will be falling under three different rates. But if you want to see purely short-term, current asset cash, that will be on a similar level. It is INR 48 crore currently.
Sorry, Ma'am. How much is-
INR 48 crore. This will only include short-term maturities of three months only.
No, I was looking at the balance sheet to balance sheet number. So, September, the way we report the balance sheet, so there, if you look at, it was kind of INR 192 crore, INR 56 crore and INR 136 crore. The two numbers were there. So, against that, I was looking at.
It is the same only, cash and cash equivalents, INR 48 crore.
Okay. Second, this arbitration, let's say, if we get it by March end, this INR 61 crore, INR 62 crore, so how this will get reported in the P&L? The entire will come in the revenue and there will be no cost. So entire will flow to the EBITDA level and there will be a normal tax rate.
Yes.
Yes.
The interest, 9%, any broad idea if, let's say, if it comes by March. So this 9% starts from when?
Till now, if you calculate that from the date of award to till date, from the date of the decision to till date, it is coming at INR 79 crore as of today. So probably by March it will be an additional INR 2 crore-INR 3 crore. So, we can say it will be around INR 80 crore.
Okay. Got it. And, Sir, the other projects of the Adani Group, particularly the airport side, the two projects that we are having in Ahmedabad. So, have you started the work there?
70% we are out of basement, and we are also on ground floor at some of the level. So, both the projects, inside the airport and outside the airport, every project are going on full pledge.
Okay. Got it, Sir. Thank you, and all the best.
Thank you.
Thank you. The next question comes from the line of Bhavik Shah from Invex a Capital LLP. Please go ahead.
Yeah. Hello, Sir. Thanks for the opportunity. My first question is, what is the current bid pipeline for both Adani and non-Adani projects?
It is non-Adani, INR 3,900 crore, and the rest of the INR 2,690. Total order pipeline is INR 6,500. Out of which, I think, the temple development Ambaji of INR 965, we already took away.
Sorry, Sir. What? Last time you told, I was not able to hear.
Group project is INR 3,900 crore bid pipeline.
Yeah.
Non-Adani is INR 2,600 crore. Out of this INR 2,600 crore, INR 965 crore are your temple development at Ambaji, which we have put it in bid pipeline, but that tender is closed and we have to do it. We are waiting for that order.
Okay.
In this INR 2,600, there was Ambaji development of INR 965 crore, commercial project at Thane about INR 850 crore. It was a private project. There was an Ambaji temple, INR 500 crore. Residential tower for SBI at MIDC, INR 253 crore, and industrial plot at Mehsana, INR 100 crore.
Understood. And Sir, in case of Adani, INR 2,000 crore is the Mundra project. What is the rest one?
They are different types of projects at different locations. It is a mix of Visram Group. Some of the projects are with compared to Mundra, Tansi, some of the projects are related to airports. As and when the project starts, it comes to our bid type.
Understood. And Sir, out of this pipeline, we are expecting INR 2,000 crore to come in this Q4, right?
Yeah.
Okay. And Sir, what will be your guidance for the next year in case of inflows? How much we are expecting in, say, FY 2027?
We already said that there will be minimum order inflow of minimum INR 7,000 crore -INR 8,000 crore from the group. As and when we start off with this outstanding order book, INR 11,000 -INR 12,000 this year, and if we are able to make up a revenue of INR 4,500 crore next year, there will be an addition of minimum 1.5x from the group side.
Understood.
INR 7,000 crore -INR 8,000 crore to be added from the group.
Understood, Sir. This was quite helpful. All the best, Sir. Thank you.
Thank you.
Thank you. The next question comes from the line of Vaibhav Shah from JM Financial. Please go ahead.
Yeah. Sir, our order book in September was around INR 9,900, and now it is INR 9,200. We have roughly received around INR 880 crore of orders. As per formula, the order book comes around INR 10,000 crore. So, there is a difference of roughly INR 800 crore in the order book. But Hetal Ma'am told that only around INR 100 crore has been removed or the scope has been reduced. So, what explains this difference?
Two major projects.
No, actually, there are INR 143 crore reduction and cancellation only.
Right. But a couple of projects.
Ma'am, order inflow for the quarter is how much?
There are.
No. Some of the project scope is reduced, so the order is revised, and some of the projects, the value is desplitter also.
But all of that is INR 143 crore, right?
That has gone down, and some of the projects are canceled also.
Okay.
It is an impact of both. Yeah, it is an impact of both. Some of the projects are revised on the higher side, and some of the projects are canceled also.
What is the total impact if you add both the things?
INR 800 crore impact is there.
Okay. Sir, secondly, in our current order book of INR 9,000 crore, do we have any Dharoi projects?
Yeah. Dharoi, that nine that we already said, nine is a part of Dharoi project.
What is the value of the order?
INR 3,900 crore.
Another INR 2,000 we are looking in the near term, the Matunga one.
The Matunga, right.
Yeah. Okay. Thank you, Sir.
Thank you.
Thank you. The next question comes from the line of Haith from Elara Capital. Please go ahead.
Yeah. Hi, Ma'am. Can you just provide me with the breakup of the order book again?
In terms of?
In terms of the closing order book. The breakdown is not available in the PCP. If you can run by that again.
I have already mentioned that. I will just repeat it. The closing order book comprises of 27% order value from government and 73% from the private entities. Within Gujarat comprises of 82% and Maharashtra 14%. Whereas within group projects are 59% and 41% external projects.
I just wanted the project-wise breakdown.
Okay. I will just tell you the project-wise breakup. SMC high-rise building is INR 835 crore. Gati Shakti is INR 325 crore. Dharoi Dam project is INR 280 crore. Fintech building, INR 264 crore. Sabarmati Riverfront project, INR 245 crore. These are the major external projects we have mentioned.
Yeah. Thank you. That is also fine. Thank you.
Thank you. The next question comes from the line of Balasubramanian A. from Arihant Capital. Please go ahead.
Thank you, Sir. Thank you, Ma'am. Ma'am, what is current utilization for precast facilities, and what is our current consumption level in terms of what is the mix between internal consumption and external precast orders? In external side, whether we are targeting industrial, residential, or infrastructure plans for precast solutions. Secondly, what is the one-time impact related to labor code implementation in Q3? Thank you very much.
We already answered that this is a one-time impact. As far as precast is concerned, presently, I think 80%-90% is captive only. We have few orders from a few of the companies like company. Rest of the consumption is mostly in-house, from our project and another project.
Okay, Sir. Thank you. Also, utilization level is completely 100% instead of rating?
Yeah.
We are operating at maximum utilization for 60%?
No. Presently, we are into the phase of 100% utilization.
Okay, Sir.
Okay. Thank you. The next question comes from the line of Bajrang from Sunidhi Securities. Please go ahead.
Sir, just want to understand, you have guided normalized margins in the band of 8%-9% on the EBITDA level. But if I just see the depreciation, which is currently rolling around INR 23 crore per quarter, and then we are doing the CapEx of almost INR 200 crore this year, which will reflect next year in terms of depreciation cost. And finance cost is also around INR 40 crore sort of run rate right now. So I'm just trying to understand what sort of net margin that will be there on FY 2027 if we assume 8%-9% sort of EBITDA margin. So what is the rational normalized net margin that probably we can expect?
If we consider the depreciation and finance cost, if utility is reduced and depreciation remain the same, there can be an improvement of 1.5%-2% on the net margin.
Sorry, 3% up to?
1.5% - 2% on the existing 2.14. So, it can be 3.5% - 4% on net.
Okay, 3.5% - 4%. Okay. And Sir, this year, last quarter, we talked about INR 3,200 crores sort of top line in FY 2026. I was little absent in the initial part. So will that number stance hold? Or Will it be revised lower?
We give him the range of INR 3,100-INR 3,200, which we were saying.
Okay. Next year, INR 4,500 crore is a rational assumption, or will it be lower?
As of today, we will be able to give you the clear guideline in the first quarter and the second quarter of 2027.
Okay. Got it, Sir. Great. Thank you, Sir.
Thank you.
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Ms. Pooja Patel for closing remarks.
Thank you, Rina, and everyone. On behalf of management of PSP Projects Limited, we thank you all for joining us on our post-earning call today. We hope we have been able to address majority of your queries. You may reach out to me or our investor relations partner, EY, for any further queries that you may have, and they will connect with you offline. Rina, we can now close the call. Thank you.
On behalf of PSP Projects Limited, that concludes this conference. Thank you for joining us, and now you may disconnect your lines.