Ladies and gentlemen, good day and welcome to the PSP Projects Q2 FY 2027 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Krishna Patel. Thank you, and over to you, ma'am.
Thank you, Abhirat, and good evening, everyone. Welcome you all to PSP Projects Limited Q2 FY 2027 and H1 FY 2027 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 Patel, the Chairman and Managing Director, Ms. Pooja Patel, the Chief Executive Officer, and Ms. Hetal Patel, the Chief Financial Officer. Please note that the discussion that we may have today will contain certain forward-looking statements relating to the future events and future performance. Numerous factors could cause the actual results to differ materially from those in the forward-looking statements. Now, I would like to 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 evening, everyone, and thank you for joining us today to discuss our financial and operational performance for the second quarter and half year ending September 30, 2026. We concluded the board meeting earlier today. I am pleased to share that PSP Projects delivered its highest-ever quarterly and half-year revenue. Revenue from operations stood at INR 1,113 crore in Q2 FY 2027, registering growth of 58% year-on-year, while H1 FY 2027 revenue increased by 61% year-on-year to INR 1,957 crore. This performance was supported by healthy execution across our project portfolio and improved availability of labor and other execution resources. During quarter two FY 2027, EBITDA increased by 38% year-on-year to INR 69 crore, while profit after tax increased by 87% to INR 30 crore.
For H1 FY 2027, EBITDA grew by 66% year-on-year to INR 124 crore, and profit after tax increased by 193% to INR 48 crore. H1 [FY 2027] EBITDA margin stood at 6.30% compared with 6.12% in H1 FY 2026. As of September 30, 2026, outstanding order book stood at INR 12,872 crore, 30% year-on-year growth, providing a healthy multi-year revenue visibility. Of the total order book, within-group projects account for approximately 72%, that is INR 9,229 crore, while external projects contribute the remaining 28%. During H1 FY 2027, we secured order inflow of approximately INR 1,305 crore, including INR 675 crore during the second quarter. The quarter two additions comprised projects across healthcare, airport infrastructure, office building, refurbishment, and staff accommodation from Adani Group. During the quarter, we completed an important landmark project, Project 90, which demonstrates the speed and scalability of our precast capability.
The project comprises three basement levels, a ground floor, and 18 upper floors, and the RCC structure was completed in only 121 days, making it one of the fastest precast high-rise project executed in Gujarat. As part of Project 90, we also completed our new PSP Corporate House located adjacent to Project 90 in 240 days, including MEP and interior fit-out work. This project demonstrates how precast technology can enable faster execution, consistent quality, improved precision, and more efficient deployment of labor and resources. Given the demand visible across building and infrastructure projects, we are progressing with capacity enhancements at our precast facility. I am also pleased to say that we will commence operations of our new corporate house on November 4, 2026.
During the quarter overall, the company successfully completed 17 projects, of which major completed projects in addition to the Project 90 are Sika Concrete Cable Duct Project and supply of noise barrier for National High Speed Rail Corporation Limited for L&T Gujarat. Service order of SITC of civil structure, facade, interior, and MEP work for Navbharat Mega Developers Private Limited. Out of the current order book, please make note the key projects and their outstanding contract value. The Ambaji Mata Temple, INR 931 crore. We have started work on the all front, that is general development work, that is cutting and filling, and all building works which are on different levels, that is on foundation and on plinth level. For SMC High Rise Building, INR 613 crore. As you all know, RCC work is already completed. MEP work is completed till 15th floor.
Interior work is going on from first to fifth floor, and facade work is going on from fifth to 10th floor. Construction of FinTech Building at Dholera City, Gujarat, INR 251 crore. Currently, we are doing RCC work on sixth floor. Human Biology Science Gallery at Science City, INR 238 crore. Major work of RCC and fabrication is already done, and soon we will be starting MEP work in that project. Building biggest residential project in GIFT City, INR 187 crore.
We have completed all RCC work up to ground floor for that particular project and are executing at third level, first level, and second level for different buildings, that is block A, B, C, D. Development of Dharoi Dam region, INR 171 crore. Sabarmati Riverfront Development phase II, which is INR 155 crore. Update on RVNL project. Out of three buildings, we have successfully handed over two buildings, that is lab and lab building.
In our hostel building, we are currently doing flooring work, MEP work, interior work, and facade work. The current bid pipeline is INR 7,800+ crore, with 52% group projects and 48% external projects. To conclude, based on the execution achieved during H1 FY 2027, the strength of our order book and the progress of key projects, we remain on track to achieve our stated guidance of approximately 25% year-on-year revenue growth in [FY 2027]. Our priorities for the second half will remain disciplined project execution, timely delivery, cost control, working capital management, and the selective pursuit of new orders. With this, I will now hand over the call to Hetal ma'am to share the financial in further detail.
Thank you, Pooja. Good afternoon, everyone. We will brief about the consolidated financial performance for the quarter ended September 30, 2026. Q2 FY 2027 versus Q2 FY 2026. Revenue from operations for the quarter is INR 1,113 crore versus INR 703 crore, which is increased by 58% on year-on-year basis. EBITDA for the quarter is at INR 69 crore versus INR 50 crore, increased by 38% on year-on-year basis. EBITDA margin is at 6.21%, which was 7.10% in similar earlier quarter year. Net profit for the quarter is INR 30 crore versus INR 16 crore, which is increased by 87% on year-on-year basis. Net profit margin is 2.69% versus 2.28%. During the quarter under review, employee cost has increased from INR 33 crore to INR 50 crore on year-on-year basis, mainly on account of annual increments and increase in number of employees.
Increasing depreciation from INR 20 crore to INR 26 crore on year-on-year basis is mainly attributable to addition in asset block during H1 FY 2027. During Q2 FY 2027, company has incurred CapEx of INR 62 crore, and in H1, half year ended September 30, CapEx stands at INR 91 crore. So the gross block as on September 30 is INR 851 crore, and net block is INR 451 crore. Would like to mention some of the balance sheet numbers which are important as on September 30, 2026. Long-term borrowing stands at INR 30 crore, which includes short-term maturity of INR 14 crore. Short-term borrowing is INR 238 crore, excluding INR 14 crore of short-term maturities. Net unbilled revenue is INR 632 crore. Trade receivable is INR 809 crore. Trade payables are INR 499 crore. Retention money, 229 current and non-current both. Mobilization advance stands at INR 933 crore.
Inventories of INR 416 crore comprised of INR 247 crore of construction materials, INR 140 crore of working progress, and INR 29 crore of finished goods. During the quarter, company has reduced its sanctioned credit limits by INR 110 crore, as it was no longer required. Out of revised sanctioned credit facilities of INR 1,387 crore, company utilized non-fund-based facilities of INR 753 crore, and fund-based utilization is INR 142 crore.
Free limit available for utilization is INR 492 crore. As on September 30, 2026, the company has total fixed deposit of INR 237 crore, out of which lien-free deposits are of INR 44 crore, and FDs worth INR 193 crore are under lien with the banks and for credit facilities and given as securities deposit to clients. Work on hand as on September 30 is INR 12,872 crore. Detailed bifurcation is provided in the uploaded presentation. That concludes the update on the 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 wants to ask a question, press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you have to 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 questions are assembled. The first question is from the line of Dhananjay Mishra from Centrum Broking. Please go ahead.
Yeah, congrats on very strong Q2 numbers. Sir, what is the outlook for order inflow? We have five months left in this financial year.
It will be same guideline what we used last year. It will be in the range of the minimum INR 4,000-INR 5,000 approximately.
Okay. Based on current bid pipeline, which is about INR 7,000+ crore, we will be winning INR 4,000 crore more?
INR 3,000 crore -I NR 4,000 crore.
Okay. And sir, any outlook on margin? I mean, we can expect improvement in EBITDA margin in H2? Or it will be in the range of H1 only?
It will be in the same range or there can be an improvement of ± 1%.
Okay. 6.5%, 6.3% we have done in H1. There could be improvement of 30 basis points, 40 basis points?
Yeah. We can say it can go up to 7.5%.
Okay. Next year it should be 7%, sir, for FY 2028?
Yeah.
Okay. We have said that we will be doing 25% CAGR for next three years, right? In terms of top line.
Yeah.
Okay, sir. Thank you.
Thank you. The next question is from the line of Lakshminarayanan K.G. from Tunga Investments. Please go ahead.
Yeah, thank you. Just a quick thing. I just want to understand what is the geographical mix of the current, whatever you are executing, as well as the geographical mix of the order book?
Actually, majority of projects are within Gujarat only, almost 70%. Around 25% is within Maharashtra. Rest we have small projects in all over many states, but those are not significant.
Okay. Also, we are hearing in general, increase in inflation, sorry, or inflation for workforce as well as material. How are you managing this inflation in terms of variabilizing some of your project cost or your proposals? Can you just help me understand how you are managing this cost inflation, if at all it is there in both workforce, skilled, semi-skilled, unskilled, et cetera, as well as material cost?
As we are aware about that our order book is almost [inaudible]
Sorry, I cannot hear you clearly, sir. Can you Sorry, I cannot hear you clearly, sir.
Hello? Hello?
Yeah.
Are you able to hear me?
Yes, sir. Now I am able to hear you.
As I said, as Hetal may say that our order book is almost [inaudible]. If you understand that we are working with Adani Group as cost-plus percentage only. All the material cost difference has to be reimbursed by the group. We do not take share any risk as far as Adani Group project is concerned. 25% project which we are doing today is almost under the completion. The new projects which we have initiated is majorly in Ambaji, which is INR 1,000 crore.
Therein also cement steel is not covered as directly as pass-through, but it is covered through RBI index. We shall not have much impact as far as escalation is concerned. Yes, we had little bit because of this war and some of the materials price went up. That was a little bit impact on SMC and RVNL, but I do not see any much impact of cement and steel price going up, impacts to concern PSP Projects as a whole.
Okay. Sir, since you are working on a cost-plus model in terms of the captive projects, what is the gross margin target you have and what is the working capital facility? What kind of working capital is there for those kind of projects?
As this we have been saying since we have partnered with Adani Group, they are paying the workforce 10% as inflation at last. Bills are being cleared, 75% bills are cleared within 7-10 days, and the rest of the 25% bills cleared maximum within the next month come. We do not share any problem in terms of managing working capital as far as Adani Group is concerned. For non-Adani Group, sorry, your second question was related to margin. That also today whatever calculation based on the past experience of our different projects and what cost model we have entered with the group, it will be in the range of 7%.
Okay. Sir, and you had given a guidance of three years particular growth rate. Now, this is, I mean, you already have a strong order book in your hand. This order book, what kind of, by when, I mean, around INR 13,000 crore order book which you have. I assume this is excluding GST, right?
Yeah.
Okay. This would take how many years to complete this INR 13,000 crore order book?
Maximum project timeline for any of the projects which is included in this order book is not going beyond 36 months. We can consider that this is to be done in two and a half years, not about half, just three.
Okay. Sir, and your guidance which you have given, that includes what kind of project pipeline it actually would need to be so that it should be there for you to have a stronger growth in addition to completing these over the next 36 months?
See, as far as PSP Projects is concerned and we talk about non-Adani, we have expertise in creating infrastructure for tourism, and we are doing Dharoi Dam, we are also doing the Ambaji, and we have completed Kashi. So there is a huge scope of work to come from tourism side as far as that is concerned. Secondly, as far as Adani Group is concerned, we are associated with their all infrastructure projects like airport, MRT, internal housing requirement, or little bit on the industrial requirement also. Secondly, the projects which is related to Commonwealth. The first tender has just been announced, so we will be participating on all those projects which are coming from Commonwealth. So for Adani Group, there will be continuous process wherein wherever we have the first right of refusal, so what type of project which is coming in Gujarat, Ahmedabad, and Mumbai.
Today, we are doing two projects of Dharavi. Probably there can be a third project in Dharavi which is coming next year once we are more stabilized on these two projects. We are also working for the airport in Mumbai International Airport Limited office. There can be few developments at airport side also. On the visibility, I don't see any problem, but we still feel that there will be a mix of both the things, one is from the private sector, government and private sector, and the second will be majorly from Adani.
Okay. Sir, this Ahmedabad Airport as well as the Mumbai Airport, is it also part of your pipeline, of your order book?
No, totally Ahmedabad Airport is not a part of my scope of work. Mumbai Airport is part of my scope, but I am saying anything which comes in the future can be a part of PSP Projects. Today, we are placed at both the location. We are doing some of the projects inside the airport, and we are doing CSD, city side development, all projects we are doing. There's any development on city side, that will be PSP Projects' domain. As far as Mumbai is concerned, presently we are in the Mumbai International Airport Limited office. There can be few developments coming in that area or that airport can be a part of PSP Projects, but we are already mobilized there.
Okay. But sir, I didn't catch the last part. The Mumbai one is something which we will be doing, the current expansion, T1?
No, there we are not involved presently. But I said any development which is coming within next one year and we as a part, PSP part of Adani Group, if we are already there, then we have opportunity which can come to us.
Okay. Thank you, sir.
Thank you.
Thank you. The next question is from the line of Vishal Periwal from PL Capital. Please go ahead.
Yeah, sir. Thanks for the opportunity. Sir, am I audible?
Yeah.
Okay. Thank you, sir. Sir, I think you did provide a guidance in terms of revenue growth rate next three years. But sir, particularly if I have to talk about this particular year, we are doing a pretty strong set of execution. First half is almost up 70%, 60% on year-over-year basis. So FY 2027, I mean, can we say probably the run rate will be higher than the 25%? Any ballpark trajectory that you can provide, sir?
Yeah, it will be little bit on higher side, but presently we are giving you guidance [inaudible]
Sir, I'm not sure if you-
On commitment, sir.
heard me at my end.
Hmm? Pardon me?
Sorry, I couldn't hear you, sir, clearly. Sorry.
Okay. As I said that present commitment is 25%-30% growth year-on-year from here. But today, as we are saying, there can be a good run rate in this year, which I also admitted, but that is an internal target which we have set, which is beyond 35%, 30%. But presently, we would still try to keep the market as 25%-30%.
Okay. But sir, what happens with the 30%, 35% for this year, probably the second half number could be little bit on the softer side. I mean, that's the reason I was asking, the second half-
See, if you see our past, it has been always strong. The second half is always stronger than the first half. If you consider that part will remain as, because it is more related to the market and all of it is available and that's the base reason for construction. So there will be good run rate for the second part also. But just I'm sharing you that there can be incremental percentage compared to 30%, but just on the commitment side, I still say we should commit on 30%.
Okay. Sure, sir. And maybe one last question from me, sir. I think we have provided a lot of details regarding precast and the number of days when we are doing, it has gone down. So, when you are doing work under precast for Adani, or probably non-Adani, I mean, does this improve margins for us or how exactly it benefits? I mean, both the side if you can-
See, as far as Adani is concerned, the biggest benefit which we had is the structures are getting ready faster. Once you consider the reality of the cost of a project, distribution project, cost of a distribution, or distributed cost of a project, you will see that always structure is 30%. Rest of the thing is 70%. If structure is completed half the time, the second time, the other part of the project goes little bit faster. Your revenue rate goes little bit faster. That's the biggest benefit which we are getting in Adani, not as a part of margin.
Tomorrow, if you go to the market, of course, that will give you better margin because commitment on half the timeline to anyone who is preparing to leave the project or is self-capturing the usage of the project like industry, that will always help them, and that will always give you the better price also.
Okay. Got it, sir. I think that's all from my side, and I'll come back in a bit. Thank you very much.
Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead.
Hi, sir. Thank you. Sir, just to get more clarity, to get a more kind of a precise or closer to the precise number, is it fair that we can easily reach close to a INR 4,500 crore kind of a revenue for this year?
Yeah, it is an assumption. To be fair, it is high. As I said, this is our internal target to cross beyond INR 4,000. Just on the safer side, I think we should restrict the research to 25%-30%.
Okay, got it. Particularly, sir, in terms of the margins, because that is the one which is still not able to understand, though we are saying that the 7% margin for this year, 6.3% that we have done in the EBITDA margin in the H1 FY 2027. Just to want to understand, let us say we reach to a INR 4,500 odd crore, then also up from FY 2021 onwards, as we are saying, 25% kind of a growth will be there.
So there also, the max that would be a kind of a 7% margin that we can see. This is primarily because the Adani, we would be definitely then would be having a kind of a 5.5%, 5.7% kind of a margin, and that is why the margin, it looks on the lower side. Because the delta on the 1% margin extra or lower has a significant impact on the APAT. That is what I am trying to understand.
Yes, you are absolutely right that when you consider 6%-6.5% present in EBITDA, and then the commitment of 7% on the Adani, there is always some delta which is getting. All Adani projects are giving us, and Adani projects are not getting the same benefit of margin. That is more because of the people, most of the projects are now out of structure. All the projects related to these projects are now getting into interior. The project which we started in last year, almost all the projects are now at the work of finishing of the structure or middle of the structure. So that is the initial stage of, you know, the project phase. But as I said, 30% is RCC, and 70% is the project other activities which bear the total cost of the project.
This 70% when it is going little bit faster than the structure part, it is always going to give a better benefit in terms of EBITDA, in terms of overhead cutting returns, and the turnover going up, and the margins, the overhead already you have incurred, and that is going to continue for the project, but the revenue is going to high because these materials do not require that much involvement of overheads and all those things. So I personally feel that presently it is impacting to the extent of 1%-1.5%, but probably at the end of the project, it will be more than that.
From next year onwards, FY 2028, when, let's say, maybe we will be doing more than a INR 5,500 crore kind of a revenue. So there, is it fair that we should be doing at least 7%, or there is a possibility to reach even 7.5%?
As I previously said also, the calculations which we have made with the group is landing at 7%. At the end of the project, each and every project has to be reconciled also, because each and every project has a different topography of overheads also, different types of challenges also. These 7% margins and the overheads has been calculated based on PSP's past projects, such large projects where we have considered three years of our overhead, three years of our PA commitment, three years of our safety requirement, all these things. These were the basis of the data which we have taken from the past projects.
So probably at the end of the project, it should be more than 7%, because I personally see that previously also we were working at cost-plus 22% to cost-plus 25%, and we were able to make 8.5%-9% margin. I do not see any problem that we can go below 7%. It has to go above 7.5% or 8%. That is the time which I cannot commit on today, because as and when the projects, different types of projects have different challenges also.
It is not only about Adani or non-Adani. But in Adani also, project pace and the project further requirement for MEP and interior, that gives the better margins when the project is getting. Your 30% revenue is getting converted, 30% revenue is done in one year, and your 70% revenue is done in the next seven months, eight months. That is what I am trying to convey to you.
Okay. In terms of the order inflow for this year.
Order inflow, yeah.
Yeah, last one. Just a 1,300 crore that we have received. So for full year, how much? Last time we said INR 5,000-INR 6,000 crore, so that
Yeah, I am still expecting at the end of the year, overall year end, in the range of INR 5,000 + crore.
Okay. Thank you, sir, and all the best.
Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Yeah. Sir, firstly on the Surat Diamond Bourse receivables, is there any update? Have you received any money from there? Also, sir, same from UP projects.
See, first I will talk about Surat. No, yet there is no commitment from their side. Yet again, we are hoping that the day the final days comes to Surat Diamond Bourse project, then they will be in a good position to commit to me.
Secondly, on the UP side, yes, we have closed almost all the things. Whatever money was lying with the secretariat, about [inaudible] crores, we have already received that from the general counsel. Rest of the money is in pipeline because when the project has completed, the fund goes back to the vertical reason. So, each department is now waiting and requesting the department to release that last 5% which they have deposited there. So probably, maybe by next quarter, we should be through that all the money related to UP or [inaudible]
Sir, UP amount was roughly INR 40 crore as of March. So of that, how much have we received?
About INR 20 crores. INR 30 crore -INR 20 crore, this year we have received.
The remainder should come in by the year ends, by March.
No, no, maybe by third quarter we should have.
Okay. And SDB amount is INR 90 crores. It stays as it is?
Yeah.
Okay. Lastly, one bit on margins. Last quarter, we were guiding for something around 7.5%-8%. Today also you mentioned that we target that internally, but we are guiding on a lower end. That is correct?
No, I think the last question was asked by Mr. Shravan, and I have made it very clear. I am not saying that we will be in this range only. It should improve from here, and it should be within the range of 7.5%-8% in future. Because presently, we are working on, most of the projects are working on structure, and your overheads and costs is much higher than you are executing 30% of the project, which is the RCC structure. Later in the 70% is MEPs, civil finishing, and interiors that gets completed in minimum time of six to seven months, if the project is at 18 months or project is at 24 months. So that will automatically give an improvement to the margin once we have started on those activities.
What is our CapEx number guidance for FY 2027 and FY 2028?
Okay.
For half year, we have incurred around INR 90 crore, so further around INR 100 crore we might be incurring.
And next year?
That will be, again, as I always say, that should be in the range of 3%-4% of our revenue. Because if you are expanding at 25%-30%, each year you require minimum 3%-4% of CapEx, plus the CapEx which you have already bought to be utilized for the new projects. So additionally, it should be in the range of 3%-4% of revenue every year if you want to maintain 30% and 25%-30% growth.
Okay. Thank you, sir. Those are my questions.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Ishita Lodha from SVAN Investments. Please go ahead.
Hi, sir. Thank you for the opportunity. My question is with respect to precast. What is our revenue potential here, and currently we are operating at what capacity utilization level?
See, even if we utilize the maximum capabilities, which is 30 million, as you can see, 30 million is the part of the total scope of project, and you are doing Hindustan Precast, it will be in the range of INR 450 crore only. For precast, the big part and the good part is we are able to execute the structure much faster than other, faster than your general construction practice project. It is not more about the revenue. For revenue, again, you have to add on some of the CapEx. But even if I am able to run the plant at a faster rate, you need to be able to complete your RCC part of the project faster than the others, so that your total project timeline does not go beyond the limit, which the present Indian market is facing, which is related to labors and all this.
But, what is the maximum, in terms of revenue that we can do in a particular year?
That is INR 250 crore.
Okay. Currently we are operating at full potential, sir?
Yeah, presently we are operating at full potential.
Are we planning to do CapEx here?
Today, we are not at that plan, but small CapEx are always being, because small things which is related to project, we require for machines or some molds. That will not be substantial, it will be in the range of INR 5 crore-INR 10 crore. Because the sheds and whatever required for the project, for expanding this project to double, we already have the sheds and other infrastructure ready. So, there will be requirement of small machines only, which can give a better expansion, which we will require to expand.
Thank you so much.
Thank you. The next question is from the line of Lokesh Kashikar from SMIFS Institutional Equities. Please go ahead.
Thanks for the opportunity. Congratulations on the good share performance. Sir, couple of questions from my side. Firstly, on the margins, is there any component of expected credit loss during this quarter which are impacting the margin performance?
Sorry? Repeat.
Is there any component of expected credit loss, ECL losses, on the legacy projects for this quarter?
Yes, yes. We are providing based on the matrix as per Ind AS, and wherever we see that, yeah, the advance or the receivables are down, we should be providing.
What is the-
That is around, yeah, it is around INR 8 crore.
INR 8 crore. Secondly, on the revenue, what has been the contribution from the Adani Group?
We don't have a separate sheet of what was done in Adani and what was not done in Adani. We can give you later and we will come for a separate.
Sure, sure. Last one, labor front, sir. Last quarter, I believe the total number of labors were closer to around 11,000 numbers. I believe it has improved lately. What has been the number and what is the situation currently? Is it sufficient for our-
Presently, it is ranging between 23,000 to 25,000. As of now, it depends on the activity and depends on the season. Now we are operating at about 23,000 to 25,000.
Is it sufficient or we need more labor to-
As of now, as in, as of the overall market, it is sufficient. For project to project, there can be a difference of 10%-15% less. As in, the project pace is much larger, much faster than the regular project. But mota-mota, sufficiency is there. It is only about some projects running little bit less as per the requirement of the client, as the requirement of the time.
Okay. Okay. Lastly, on the unbilled revenue number has increased, you know, from last quarter. Is it because that we have executed most of the projects or ramped up the projects during the later half of the quarter? Or why is there a significant increase in the unbilled revenue?
Yes, yes. Most of the major government projects, since they are from 35 days on time, so we have to put it in unbilled revenue only, like Dharoi Dam project, SMC. Only last month's rates are in unbilled revenue. Also some of the amount which is still, I mean, the finalization of rates and everything is pending, for that we have to put it in unbilled revenue.
Do you think that that will be normalized going ahead?
Sorry, your voice is not clear.
Do you think that the unbilled revenue portion will be normalized going ahead? Had it elevated-
Yes, It will be. Yes.
But again, it will depend on what type of project we are executing, because when the certification of the bills are not being timely done by the competent authority, they will not. The bills, we are not able to raise their GST bills. So every quarter, there will be an issue related to last month's bill. That we should always calculate in our mind. So this year, if we are, this month, if we are doing a bill of about INR 1,100 crores, let's say, hypothetically, last month revenue was INR 400 crores. And that INR 400 crore, out of that INR 400 crore, 70% will go to unbilled revenue because of the certification process and GST invoice.
Okay. Got it. So that's it from my side. Thank you.
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Balasubramanian from Arihant Capital. Please go ahead.
Good evening, sir. Thank you so much for the opportunity. Sir, Adani Group is building out 5 GW of AI infrastructure. I think 1 GW is falling into Maharashtra, especially in Navi Mumbai side. I think they had a MOU of nearly INR 50,000 crore with Maharashtra government. I just want to understand, this Navi Mumbai is falling into our key focus areas like Gujarat and Mumbai, Maharashtra side. Whether we have a capability for this data center build-out, and is there any scope to get some work in those areas?
See, that we actually the whole prospectus of the project, whole division of the project and understanding the capabilities of PSP Projects, we are executing the project. We are based in Mumbai. It is not about anything related to data center or reality or airports. It is all about how we expand ourselves, how we gear up with our capabilities, and that's how they are moving. Present order book also, we are operating at two large projects of reality, Dharavi. There is one project of airport also which we are doing. There is one project which we are in the discussion of medical college and hospital in Navi Mumbai. All those capabilities PSP Projects is having. The bandwidth on which we can expand ourselves to next level, there will be always an opportunity for and we have always the right of refusal as first party.
If I am not capable, if I am still fighting with all the projects which I have already started, there is no point for me to start a new third project where we are not able to gear up with the existing projects. It is more about how we expand and how we build our capability.
Okay, sir. Because why I am asking this question because these projects will like up to 2035. I think we have nearly 8-10 years timeframe. I am just-
That's what I am saying. Data center is nothing like it's a simple building with a high loading criteria. It's as good as building of a commercial building only. It is not about capabilities, it is not about the technology that is something different in data center which we are not able to execute. It is only about our capabilities going further. And you are talking about 2035, which is our second year journey, and we are now gearing up to that stage that we want to have ourselves to do X. Let us hope that we are able to increase our capability in next five years.
Got it, sir. Thank you.
Thank you. The next question is from the line of Raj Shah from [inaudible] Asset Managers . Please go ahead.
Yeah, hi. Congratulations for good set of numbers. My question, we had expecting a provision for doubtful advance to the tune of INR 8.1 crore for this quarter. Are we expecting any provisions going forward?
Sorry, you gave number of which it is? We will have to hear you.
The provision for doubtful advance was INR 8.1 crore as stated in the cash flow statement for H1. My reckoning is that it is specifically for Q2 . Are we expecting any provisions going forward in Q 3 and Q 4? Also, if you could highlight about the doubtful advance to the tune of INR 8.1 crore, it was regarding which project?
See, this we again have to review our advances and balances in the receivables, then only we can decide. Going forward, whether it will be again become doubtful or not. Because last year also, one of the CapEx advance we have made it was around INR 2 crore and disputed here, which we expect that we might not be receiving the invoice or receiving from after fourth deadline. We have to review the numbers quarter and quarter maybe.
Okay. Because adjusting for that, the EBITDA margin for this quarter is roughly about 6.7%, and it has been few quarters that every quarter there is some or the other write-off or the provision which is happening.
See, normally it is ECL. I will brief you. It is an expected credit loss which is normally calculated based on the matrix that is based on the aging of the trade receivable. So, every year you will see that there will be around INR 3 crore -INR 4 crore of addition it will be there in ECL also.
Okay. You are adjusting for that. Is it fair to assume that we will be closer to 7% in H2 for the EBITDA margin?
Yes, we can consider, right.
Okay. That is it from my side. Thanks and all the best.
Thank you.
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Thank you all for joining us today and for the active participation in the earning conference call. We sincerely appreciate the continued trust, confidence, and support of our shareholders, investors, analysts, and other stakeholders. We hope we have been able to address your key questions and provide a clean perspective on PSP Projects' performance, growth plans, and outlook for FY 2027. Should you have any further queries, please feel free to reach out to our investor relations with advisor EY, who will be happy to coordinate with us and assist you offline. Wishing you and your beloved ones a very happy Diwali. Moderators, you can now close the call. Thank you all.
Thank you.
On behalf of PSP Projects, that concludes this conference. Thank you for joining us, and you may now disconnect your line.
Yes, thank you.