H.G. Infra Engineering Limited (HGINFRA) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the H.G. Infra Limited Q1 FY '26 Earnings Conference Call hosted by Go India Advisors. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Saloni from Go India Advisors. Thank you, and over to you.

Good afternoon, everybody, and welcome to H.G. Infra Engineering Limited earnings call to discuss the first quarter of FY '26 operational and financial performance hosted by Go India Advisors. We have on call, Mr. Harendra Singh, Chairman and Managing Director; and Mr. Rajeev Mishra, the Chief Financial Officer. We must remind you that the discussion on today's call may include certain forward-looking statements and must be, therefore, moved in conjunction with the risk that the company faces. I now request Mr. Harendra Singh to take us through the company's business outlook and performance, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.

Thank you, Saloni. Good evening, everyone, and welcome to the H.G. Infra Engineering Limited earnings call for our Q1 FY '26 results. During this call, we will provide an overview of our financial and operational performance, discuss our strategy road map and outline our growth ambitions. We will also highlight the key initiative undertaken during the year and share our vision for sustainable long-term expansion in FY '26 and beyond. H.G. Infra Engineering Limited has over 22 years of proven expertise in the construction of roads and highways and has earned a strong reputation for quality and timely execution in road sector. Building on this foundation, we have now diversified into a critical infrastructure domain, such as railways, metro, renewable energy and transmission projects. We commenced FY '26 with a steady momentum, further reinforcing our position as one of the fastest-growing infrastructure company in India. As a part of a strategic approach, our goal is to derive around 30% to 40% of order book from known road sectors over the next 2, 3 years. In this line with this, during this quarter, we successfully secured our first transmission project worth approximately INR 350 crores in Orissa and received 1/3 of BESS projects from GUVNL for 300 megawatts. With this addition, cumulative contracted capacity for BESS projects has reached 735 megawatts, that is equivalent to 1,470 megawatt hours, reflecting our commitment to supporting the government's vision for a green and sustainable future while meeting the nation's growing per capita energy demand. These achievements position us for the third largest BESS player in the country. Moving on to the -- some updates on the infrastructure sector. Talking regarding the road sector, the government has set a construction target of 10,000 kilometers of highways for FY '26. NHAI plans to award 124 projects spanning 6,376 kilometers at an estimated cost of INR [ 3.45 lakh crores ] and HAM remaining dominant through 84 projects covering 4,714 kilometers. And with this outlook, we foresee significant opportunities to secure new projects in the coming months for the year -- of the year. The company plans to pursue bids worth INR 1 lakh crore in HAM and EPC segment, targeting project amount of at least INR 6,000 crores in FY '26, underscoring its strategic emphasis of winning large-scale high-value contracts in road sector. Rails and metro with government vision is anchoring a large-scale modernization and capacity expansion. And by 2030, Indian Railways expand to complete 100% of the electrification and broad gauge network, cutting the carbon emissions and improving efficiencies. Thousands of kilometers of new rail lines are being constructed, while track doubling and gauge conversion projects are rapidly enhancing the capacity and connectivity. Under this nationwide station redevelopment programs, more than 1,200 stations will be transformed with the world-class facilities to improve the passenger experience. With this, this year, the company plans to participate in bids worth approximately INR 50,000 crores in this sector. The company is actively pursuing railway and metro opportunities, aiming to secure projects worth approximately INR 1,500 crores in the current financial year. In solar and BESS, the total installed capacity, if you see in the country has reached up to 220 gigawatts as on 31st of March '25. And that -- in addition to these installed capacities, the India has [ 169.4 ] gigawatt of renewable energy projects under implementation. As India leads to the clean energy transition, the battery energy storage system, the market is projected to grow from $7.8 billion in '24 to $32 billion by 2030. With 66 gigawatt of storage capacity planned by 2032, on the solar front, India has crossed 100 gigawatt of installed capacity with over 30 gigawatt added in '24 alone. So this strong policy-backed tailwinds present massive opportunity for infrastructure player like us to unlock value across both EPC and [ asset ] platforms. The company is targeting a 5% share of India's total available battery market. For FY '25, '26, the estimated order inflow for BESS is approximately INR 2,000 crores, which includes one secured project, which we already has bagged around INR 800 crores. In transmission and distribution, where the government envisions a robust modern and green power grid to meet rising energy needs with major investment in high-capacity lines and advanced service station and HVDC system over the next decade. With one nation, one grid, one frequency policy that has unified all regional grids, enabling 1,12,250 megawatt of interregional transfer for stable, reliable, nationwide power, at H.G., we aim to secure transmission and distribution projects worth INR 1,000 crore at least for the year and one we have already has bagged is INR 350 crores. Driven by strength, agility and steady growth, we are poised to capture emerging opportunities in renewables, power transmission and road sector as well as metro and urban infra. With proven execution, technical expertise and industry expertise, we are ready to deliver large-scale infrastructure projects that power India's long-term development vision. Let me begin with a glimpse of our operational highlights. As in quarter 1 FY '26, the company's orders stood at INR 14,656 crores, comprising INR 9,623 crores from roads and highways, INR 2,912 crores from railways and metro, INR [ 1,620 ] crores from BESS, INR 500 crores from solar. Within the road sector, 30% of the roads are under the HAM model and 36% are the EPC projects. Railways account for 20% of the total order, while solar and BESS contributes 11% and 3%. This is an update on the EPC project, while Ganga Expressway which has reached at about 97.4% completion has been on track for completion of 100% by quarter 2 FY '25. The Delhi UER project has been completed successfully and handed over to the authorities and is anticipating to receive the completion certificate shortly. The Jamshedpur elevated project is running smoothly with a progress of 15.2%. The Neelmangala-Tumkur project is gaining execution momentum and has reached 42.5% completion. Regarding the HAM projects, the Karnal Ring Road project has reached 77.1% completion, marking a steady progress and likely to be completed in quarter 4 FY '25. As shared in our previous quarter, the provision completion certificates for the projects of Raipur-Visakhapatnam corridor, that is OD-5 and 6 already received, and the both projects remain close to completion now. The project AP-1 of Raipur-Visakhapatnam project is also progressing towards completion with PCC recommended. And all these 3 projects continue to be on track for 100% completion, that is COD in quarter 3 FY '26. The solid progress continued on Khammam Devarapalle project of KD-1 and 2. The PCC already received, these projects are at 88.4% and 85.5%, respectively, and both the packages are expected to be completed 100% by quarter 2 and quarter 3, respectively. The Chennai-Tirupati HAM project has reached at 21.4%. The appointed date for Varanasi-Ranchi packages, that is Package 10 and 13 of this corridor are expected in quarter 3 of FY '25, '26, where significant development for forest clearance has been done. For Kosi Parikrama Package 6 Ayodhya, the construction agreement is signed on 21st of March -- June of '25, and execution stands at 2.2% and the appointed date is expected very soon. In Narol Sarkhej project, the financial closure has been achieved, and the appointed date is expected within the month only. As for the railway projects, the DMRC project is around 82% progressing as per the scheduled time line and within the next 3 months, it is going to be completed 100%. The Bilaspur RVNL project, that is 69% complete. Kanpur railway station project is at 26.42% completion, and now the project execution is going on full swing after the initial design and land hiccups. Dhule-Nardana railway project is at 13%. The Gaya-Son Nagar project, Karanjgaon project, they are at about 12.7% and 9.3% completion, respectively. Appointed date for the New Delhi railway station has been declared as 6 August '25. The execution will start by end of quarter 2 FY '26. On the update on the solar project, which we procured during last financial year, we are now at around 80 -- 70 plants completed. H.G. Infra, out of 183 plants, cumulatively, this is 700-megawatt DC capacity. And among this, the company is directly responsible for 167 plants with an estimated EPC value of INR 2,243 crores. In terms of financial structuring, the debt funding for this project is progressing well with approximately 83% of the required funding already sanctioned till June '25. The remaining approvals and subsequent disbursements are anticipated to be finalized in quarter 2 and quarter 3. Regarding the equity financing, the total equity investment required for the solar project stands at INR 721 crores. And as of 30th June 2025, the company has infused approximately INR 610 crores into these projects. And the remaining balance is to be -- set to be deployed in quarter 3 of FY '25, '26. As far as BESS project is concerned, as we have shared in the previous quarter, the company executed a binding agreement with GUVNL and NVVN for 435 megawatt, that is 870-megawatt hour of project. The scheduled commissioning that is in November '26 and December '26, respectively. In May '25, we have secured an additional 300 megawatt, that is 600-megawatt hour of project from GUVNL. And with this, the cumulative contracted capacity stands at 735 megawatts of the 1,470-megawatt hour. Upon completion and commissioning of all these BESS projects, company expects annual revenue of INR 225 crores from BESS. The equity requirement for all these 3 projects is around INR 500 crores, of which around INR 1 crore has already been infused and balance INR 119 crore is anticipated to be done within this financial year and the BESS in financial year '27 and '28, respectively. Procurement progress for BESS project has been initiated and the key components are in advanced stage of negotiation. We have shortlisted Tier 1 Chinese supplier after our team visit to China for import BESS system and power conversion systems. And we are likely to finalize the orders for power transmission, switchgear, et cetera, by 30th September '25. This is a recent update on the monetization of 5 new HAM asset, that is a Tranche 2 of HAM. Over the past few months, our leadership team engaged in intensive discussion with several prospective bidders -- investors to monetize our second lot of 5 HAM projects. So those projects are Raipur-Visakhapatnam corridors, OD-5, OD-6, AP-1 and Khammam-Devarapalle Package 1 and 2. So our goal was to secure a partner who could provide both financial strength and the sector expertise to maximize value of our stakeholders. It is a pleasure to inform you that during this week, we executed a binding offer document with Neo Infra Income Opportunities Fund. Under this agreement, our holdings company, H.G. will sell 100% of its equity stake in the 5 wholly owned subsidiaries managing this HAM assets. This milestone marks the accumulation -- culmination of a well-orchestrated negotiation process and demonstrate market confidence in the quality and profitability in these infrastructure projects. The enterprise value of these -- of the entire transaction is at INR 3,584 crores. And the total equity invested in these and the total debt obligation of all 5 assets are at INR 767 crores and INR 2,200 crores, respectively. Soon, we will be initiating the process of fulfilling the compliances of the condition precedent as per the binding offer, which includes client approval, lenders' consent and other representation and warranties. We expect to conclude these formalities and expect to conclude the transaction within this financial year. This transaction will deliver significant strategic benefits to the group by strengthening the balance sheet and reducing leverage, thereby enhancing our financial flexibility. The realized fund can be redeployed into our new HAM bids, road expansion or other high-return infrastructure opportunities. We believe this deal achieved a robust valuation, positions the company for accelerated growth and value creation in the upcoming years. Regarding the equity requirement on the HAM projects -- on the balance of the HAM projects, the total liquidity requirement for 11 HAM projects, those are balance, is INR [ 1,066,064 ] crores, and as of June '25, INR 997 crore has been infused. Out of the remaining, INR 290 crore is scheduled to be done in 9 months of FY '26, followed by INR 183 crore in FY '27 and INR 187 crores in FY '28. Let me now give an overview of the business and other significant updates of quarter 1 FY '26. The company has secured its first transmission project from PFC Consulting Limited in BOOT model with a project cost of approximately INR 350 crore for establishing the interstate transmission system in the Eastern Region Generation Scheme-1 in Orissa. The project duration is 35 years from the date of commissioning. Additionally, the company has received a project from Military Engineer Services valued at INR 117.8 crores for creation of integrated material handling facilities at Naval dockyard in Mumbai. Moving on to the financial highlights of Q1 FY '26. The revenue for quarter 1 FY '26 reached INR 1,709 crores with an EBITDA of INR 236 crores and an EBITDA margin -- at an EBITDA margin of 13.79%. PAT for quarter 1 FY '26 stood at INR 125 crore with a PAT margin of 7.34% compared to INR 140 crore and a margin of -- at a margin 9.27% in Q1 FY '25. On a stand-alone basis, our gross debt stands at INR 1,049 crore. This comprises of INR 664 crore working capital debt and other term loans and maturities. Now the consolidated financials are revenue of quarter 1 FY '26 reached INR 1,482 crore with an EBITDA of INR 258 crore (sic) INR 259 crore and an EBITDA margin of 17.52%. PAT for the quarter 1 '26 stood at INR 99 crores with a PAT margin of 6.7% as compared to INR 163 crores at a margin of 10.64% in quarter 1 FY '25. As informed in the last 2 quarters as well, the dip in consolidated revenue and PAT is due to elimination of intergroup transaction with solar SPVs for solar projects, which are recorded as capital working progress in consolidated accounts. While the stand-alone results reflect EPC revenue and taxation -- taxes, the [ tax ] cost remains in consolidation results until the SPVs start generating operational revenue, after which the margins will improve. Let's scroll what's next, turning into our future strategy plans. We are confident aiming for order inflow of around INR 11,000 crores in FY '26 with clear data-backed strategy to secure 75% from roads and railways where our execution capacity outpaces competitors and 25% for rapidly expansion -- expanding verticals. Our historical dominance in roads and highways continues to drive core growth, but we are not resting on our laurels. Recognizing increased competition and margin compression, we are taking proactive steps to reshape our portfolio for a long-term value creation. We are aggressively entering into high-growth decent margin sector like BESS and transmission and distribution, capitalizing on our deep engineering roots and a proven execution track record. This is not just diversification and it's a targeted expansion into future profit pools. Our relentless focus on strategic bidding, cost control and technology-driven project management is designed to project -- to protect and expand margins, minimize the debt, maximize shareholders' return. In essence, we are positioned for accelerated growth and superior returns. And our diversified pipeline, financial discipline and the bold sector bets are key levers as we redefine ourselves as the future-ready, multi-sector infrastructure leaders, delivering outside value to our investors year-after-year. I would now like to hand over the call to the Go India team for further deliberation and future -- for the further question and answers.

[Operator Instructions] The first question is from the line of Shravan from Dolat Capital.

Sir, first on this latest 5 HAM deal. So sir, if I work out INR 3,584 crores is the [ EV ] and versus the equity and debt amount, what you mentioned, INR 767 crores and INR 2,200 crores, the total is INR 2,967 crores. That means the equity value that we are getting is INR 617 crore versus INR 767 crore invested. That means a 0.8x price to book. Correct me if I'm wrong.

Yes, almost we are at current stage, INR 3,584 crores and the debt is INR 2,200 crores into this -- the total INR 767 crores of equity is invested.

But sir, then -- not able to understand why we are selling at 0.8x price to book.

It's not -- I think 1.8x, not 0.8x. You see the number, it's INR 3,584 crores of enterprise value, which -- out of which INR 2,200 crores is the debt. So the net amount which we will be getting is INR 1,384 crores against the equity investment of INR 767 crores.

Okay. Okay. Okay. My mistake. My mistake. Got it. Second and then this cash, we will be getting by?

Sorry?

This cash amount -- when we will be receiving this cash?

So we are expecting that 2 of the projects where the COD and finally NOC from lenders and clients could be managed within the next 3 months by December and for the next 3, probably by March.

So if you can break in terms of the value, how much we will be receiving in FY '26 and...

No, no. Everything -- Every -- total amount, what we would be -- we are expecting is we would be getting within FY '26 only. So by December '25 of, say -- let's say, for this particular quarter 3 of the quarter FY '27 -- '26, tentatively, 2 of the projects could be done as a transfer and the rest 2, 3 will be done by March '26. So everything would be done within the year only.

Okay. Okay. And then whatever the gap would be, that we will be reporting as an exceptional gain in the stand-alone books on the equity transfer?

Of course. Yes. Yes.

Yes. So now on the operational front, sir, so this...

Sorry to interrupt you, Mr. Shravan, I will request you to get back to the queue for follow-up questions, please.

Okay.

The next question is from the line of Vaibhav Shah from JM Financial.

Sir, when do we expect to receive the appointed date for the HAM projects, especially the VRK ones?

So there are 5 projects where the appointed date is expected. The one is which we have received very recently is New Delhi railway station that is on 6th of August. Next week, we are going to have the appointed date for Ahmedabad HAM project. And subsequent to that, in September only, we would be able to receive the appointed date for both Jharkhand projects, that is 10 and 13 of Varanasi-Kolkata corridor. And the last one, which is Ayodhya, and that project, we are expecting that somewhere in November, we would be getting the appointed date.

Sir, and any -- what are the expectations for LOA on Nagpur-Chandrapur, both the packages?

So those projects where the land acquisition is at about, say, 42% as of now. So the minimum requirement is 70% for issuance of LOA. So probably, it will take another 3 to 4 months. So by December, we are expecting the LOA could be released.

Sir, so from these 5 HAMS, 4 HAMS, say, it is pending, what kind of revenue are you factoring in? And also for the MSRDC project for FY '26?

So we are not considering anything from MSRDC project because since the LOA would be -- we will be getting -- then the appointed date is likely to be declared. So it is not expecting -- we are not expecting much from those projects. But apart from these -- those projects, there's 4 HAMs, which we are targeting about INR 1,200 crores of total order execution in these 4 HAMs within this year.

Okay. And sir, what is the receivables currently? And of that, what is the HAM and solar?

So majority portion of receivable is HAM and solar only. So the solar SPVs, the receivable is around INR [ 438 ] crores and HAM project is INR 395 crores.

In the total number?

In the total number is INR 1,360 crores.

So you were expecting the solar receivables to come down sharply. So when do you expect the overall...

Something has happened, we have executed around INR 300 crores during the month or during the quarter. So out of INR 300 crores, we could receive, say, the number which was the same and remains same. So whatever was the closing number for March '25 remains the same. So if the only INR 300-odd crores of disbursement could happen within this year. But now the things are very rapidly -- because 83% of the sanction has been done, and we are getting the release of funds from banks through SPV. H.G. Infra is also getting this. So by September and by December, say, things would be 100%, we would be recovering the entire receivables from SPVs to banks.

Okay. And sir, lastly, I missed the initial part -- initial commentary. What is our guidance on revenue and EBITDA margin for the entire year? And why were the margins impacted in 1Q? So we saw that we have put INR 10 crore -- crore INR 11 crore of one-offs, which is impairment losses, and it was INR 5 crores in Q4 as well. So what are these entries?

So I think the reason behind for -- 2.5% of the EBITDA correction has been there. So there is one of the items, which we were expecting that change in law in Ganga Expressway, so the change in law of royalty revision is there. So in this project of Adani, we are eligible to get anything variation like change in law and variation is U.S. from the client, whatever is being approved by the client. So as of the recent trend, we are revealing the fact that they are likely that change in law approval is not likely to be there within this particular year. So it will take -- it is going to take time. So we have corrected our number around INR 40 crore. So because of that number, there is a deep correction in the EBITDA margin. Otherwise, in none of the other projects, the margin correction has been done.

Sir, the entire impact has been taken off right now or some correction in Q2, Q3 as well?

Sorry to interrupt you, Vaibhav, I will request you to join back the...

So the entire, say, almost INR 43 crore, the INR 11 crore is the exceptional item, if you see. So this is there. There is, say, provision has been done and around INR 43 crores since -- out of Ganga Expressway that we have corrected in our margin.

The next question is from the line of Sarvesh Gupta from Maximal Capital.

Congratulations on the transaction.

Mr. Sarvesh, sorry to interrupt you, your voice is very low.

Is it better now?

Yes, sir.

Yes. So sir, congratulations on the transaction. So just continuing on the previous question. So earlier, we were consistently being able to deliver around 16% EBITDA margin. I think last quarter, we were in around 15% and now this quarter, we have delivered like less than 14%. So you said -- so INR 14 crores you are saying is an exceptional item for this quarter...

No, no. See, I'm correcting it there. See, last year -- last quarter, it was INR 5 crore of provision was except for -- has been done by the auditors for the long due receivables. As a whole, it is now INR 74 crore of total provision has been done till date against the debtors -- this current asset receivables, okay? There is one thing which has happened is the other item, which is INR 43 crore, this is the change in law item, which we are not expecting to get realized very soon within this year as far as Adani project where it's back-to-back arrangement with UPEIDA. So where we are not looking immediately -- so we have corrected that number, the margin by INR 43 crores.

Okay. But is that -- have we assessed all the projects?

It's the major reason for the shortfall. Otherwise, all other projects are going as per the expected margins.

And have we done everything that we were required to do across all projects? Or are there any future provisions also that we need to take from Q2? Should we expect normalized margin of 15%, 16%?

It is likely to be normalized margin only. So we are not -- see, we never have factored such things where the current asset or unbilled revenue is having some contract or different claims. We usually have the certainty of those numbers, then only we'll keep it. Otherwise, what we did the last quarter. So the provision is being done on the basis of their contract -- auditors' obligations.

Okay. Okay. And sir, on the road order, so what is the expectation now? Because even in this quarter, last 2, 3 quarters and last 6 quarters, the industry has not received, but we have been hopeful because NHAI had a pipeline. So what is the expectation now? And are there some tangible work that has been done from their side? And in terms of our pipeline, what -- where are we? What is the percentage that we are looking to sort of win in the near future, et cetera, et cetera?

In recent past, we have seen a significant improvement as far as sentiment is concerned. So as per the press release, they have already declared the pipeline of the projects which are going to be, say, awarded within this year only. So there is a long pipeline, more than INR 5 lakh crores of projects which are there, including BOT, HAM and EPC. And apart from that, there is the correction in the -- long-awaited correction in the prequalification criteria has been released, so both in EPC and HAM. So that gives us the relief in the sense that the project pipeline is there, but there are only 2 riders which are there. One is the quality of the DPR, where the DPR checks being taken some time, so much of time and the land acquisition, which always has been the real critical area, gray area rather, where the progress and any of the claims do occur. So in that sense, they are just guaranteeing that the 80% of the land as per the contract should be there prior to issuance of LOA. So these are the 2 factors which are taking a bit of a time. But we are very much hopeful, and I think the ministry is very much optimistic of awarding this -- at least 3.5 lakh crores of orders within this year only. So we are expecting the traction to be there by November, December onwards, not many projects are likely to be awarded.

And what will be our full year revenue guidance for this year, sir?

It remains same. It is around INR 7,000 crores of -- because we did around 13.5% year-on-year for the quarter 1 and almost will remain in this range only.

The next question is from the line of Veenit from Investec.

Am I audible?

Yes, sir.

Sir, just wanted to recheck on this revenue growth guidance number. Now given a lot of our projects are currently either in L1 stage, which are Maharashtra orders, 3, 4 HAM projects where we are yet to get appointed dates. And if you exclude a lot of these projects, our executable order book currently stands at less than INR 10,000 crores. Considering this, how confident are you of us achieving INR 7,000 crores? And what should actually drive such a strong execution or conversion into revenues?

So if you can see here, the projects which we are at very advanced stage of completion like Ganga, like Orissa, all OD-5, 6, AP-1, KD-1, 2 and even Karnal, they are the projects, these -- whatever is the balance would be completed. So this is the one thing which is -- and again, the solar and some significant part of that execution is likely to contribute within this year only. So if you see the other railway projects where the progress was not that good in the initial phase of the project because of the design and the land issues. So now that has picked up. And in quarter 2, 3, 4 of this particular year, we are seeing around INR 1,000 crores of execution in railway only. So in these new projects where the appointed date is going to be -- they are declared and including the New Delhi railway station, this is around INR 1,500 crores of execution is likely to be there in quarter 2, 3 and 4. So this gives -- put together that we would be around INR 7,000 crores even if we are not considering anything to be coming from Nagpur-Chandrapur projects.

Understood. Understood, sir. And sir, on -- even on the margin guidance, given we have done slightly lower margins this quarter, how confident are you of delivering 15.5%, 16% EBITDA margin for the full year? And I'm just asking because now the ask rate to get there is slightly on the higher side where we'll have to deliver 16%, 16.5% EBITDA margins consistently for the next 3 quarters to be getting anywhere around EBITDA margins, which we did last year.

So basically, it's only checking upon the margins if anything is not guaranteeing our this thing. So it's a matter of only a time when quarter 4 or quarter 1 of this year, we have seen that the margin dip there. Otherwise, all the projects, we do have a decent margin. And we are doing such projects and with the margins probably in the range of 15% to 16%. We are quite hopeful that by the year-end, we would be maintaining the same state.

Okay. So for next 3 quarters, we should be back to 15%, 16% margin levels?

Yes.

The next question is from the line of Vishal from Antique Stockbroking.

Sir, you mentioned in your initial commentary that 83% of the debt for the solar is sanctioned. So have we taken any disbursement from that side?

No, no. See, the sanction to disbursement, there is a gap. We have only taken the disbursement at about 60%, though we have progressed -- at around 58% roughly, though we have progressed around 80% -- 78%. So there is a deficit. There is a gap of about 30% in what we have progressed to what we have -- the loan has been disbursement -- the loan disbursement has been done. So this is -- So the sanction is 83%. The rest 17% of the sanction is still awaited, where the progress is going on. And wherever sanction has been done, it's only partial disbursement or only a few of those plants where the disbursement is not yet done. So in July and August, September and till November, wherever -- whenever we are going to complete the entire thing by December. So we are hopeful that every -- so this is a 45% of the balance disbursement would be done, 43%, 44%.

Okay. Okay. So if one has to understand what is the total debt that has been -- we have taken for the solar as of now?

So it's around INR 1,100 crore in the total. I'm not remembering right now, it's INR 1,100 crore...

Okay. Okay. And this was related to the working capital, like just thought to check. Okay. Second, is, sir, on that battery energy storage, you did mention like INR 500 crore is the equity that we'll be again putting. And if one do a financial closure at maybe like 80-20, then the project cost come to almost like INR 2,500-odd crores. That is one. And second, I mean, like when we are putting megawatt...

This cost is not more than -- These project cost is around INR 1,800 crores, all 3 BESS projects. This project is around INR 1,800 crores plus GST. And the total debt -- the equity which is committed is INR 500 crores, which is 25% of the total project cost. And balance is debt. And out of the total debt, once we commission this project, we would be able to get around INR 300 crores of grant from government in all these 3 projects.

Okay. So INR 1,800 crores plus GST, around INR 300 crores grant, that's the total project cost?

INR 1,800 crores plus GST, minus INR 500 crores is equity, declaring INR 1,500 crores of debt and less than INR 300 crore would be plus INR 1,200 crores of debt would remain once the grant is settled.

Okay. Got it. Got it. My mistake. INR 1,800 crores. Okay. So I think then the project cost...

Sorry to interrupt you, Mr. Vishal, I will request you to join back the queue for follow-up questions, please. The next question is from the line of Jainam Jain from ICICI Securities.

Sir, I wanted a couple of data points for working capital. Sir, can you provide the number for inventory, trade receivable, contract assets, trade payable and contract liabilities.

So inventory is about almost the same number. It's INR 519 crores, inventory and working capital -- you are asking about debtors. Debtors is around INR [indiscernible] crores. And current asset is INR 1,310 crores.

INR 1,400 crores? Sorry, I didn't get your contract asset number. Okay. So trade payables and contract liabilities...

Sorry?

Trade payables and contract liabilities.

The contract liabilities and trade payables. So trade payables -- just a minute. Trade payables is around INR 1,324 crores. And liabilities is around INR 1,200 crores something, I think it's [indiscernible] but it's around [ INR 1,200 crores ]. Because the debtors we already have given. Trade payables is, yes, INR 1,324 crores, correct.