H.G. Infra Engineering Limited ($HGINFRA)

Ladies and gentlemen, good day, and welcome to H.G. Infra Limited Q4 FY '26 Earnings Conference Call hosted by Go India Advisors. [Operator Instructions] Please note, this conference is being recorded. I now hand the conference over to Ms. Saloni Ajmera from Go India Advisors. Thank you, and over to you, ma'am.

Good afternoon, everybody, and welcome to H.G. Infra Engineering Limited earnings call to discuss the quarter 4 and FY '26 operational and financial performance posted by Go India Advisors. We have on the call Mr. Harendra Singh, Chairman and Managing Director; and Mr. Rajeev Mishra, CFO from H.G. Infra Limited. 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 performance subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.

At H.G. Infra, we are guided by purpose built on trust and driven by a clear vision focus on sustainable and scalable growth for the future. For FY '27, our regions focused on long-term value creation for our shareholders under the tough condition of this year, considering the macro and macro conditions because of the continued headwinds emanating from the West Asian conflict and with other geopolitical outlook. As we all know, recent geopolitical turmoil and global economic uncertainties has disrupted supply chains, unlimited freight, war risk insurance coverage, prolonged shipping timelines, economic energy crisis and increased volatility in fuel prices as well as ForEx rates, other commodity markets and same is pushing up and the prices are high and hard for infrastructure, and these challenges have resulted in a higher input cost for all metals, HSD, bitumen, cement, logistics and transportation. This year looks extremely vulnerable to geopolitical macroeconomics and policy risk. And demand growth looks tepid due to economic slowdown. Losses and margins are likely to take a longer period to recover resulting in continued volatility in the market due to the deferred and the dissolution story of Indian corporates. Despite these headwinds, EMEA's economic outlook remains resilient and promising. India is now one of the fastest-growing major economies and with [indiscernible] region will require sustained investment into infrastructure across roads, rail, power, transmission and urban development to support the economic growth, connectivity and organization. At intra, we have been contributing to India's infrastructure journey for over 2 decades and we are also strengthening our presence beyond roads and railways. And to emerging sectors like solar energy, battery energy storage systems, power transmission and positioning ourselves to support India's next phase of growth and renewable energy transition. Talking regarding the growth. As mentioned about recent geopartical tensions have created uncertainty across global markets and impacted the overall infrastructure sector. Coupled with the muted bidding and the project awarding activity by NHI in Board during FY '26. The road sector witnessed a relatively subdued order inflow environment and resulting in lower-than-expected order awards across the industry. Despite these near-term challenges, the long-term outlook for the road sector remains positive, supported by the government's strong Infra push. For FY '26, the government allocated approximately INR 2.72 lakh crores to the Ministry of highways demonstrating its continued commitment towards highway development and connectivity enhancements across the country. For FY '27, the company expects roads order inflows of approximately INR 7,000 crores to INR 8,000 crores against the bid pipeline for current -- of current INR 72,000 crores and other bids expected in future. The company is actively pursuing opportunities in HAM and EPC firm government and also engage with private sector players for EPC projects, considering the shift in focus by government towards BOT-based project development. As a result, the company has already secured the Polish rule road projects from Welspun worth INR 3,940 crores on a BOQ EPC basis. Regarding rails and metros, which continued to witness strong growth driven by government focus on station development, railway electrification, [indiscernible] trade corridors, new railway lines, Metrorail expansions, Depot and other ROV construction for overall network modernization. The government also allocated a record INR 2.78 lakh crores towards railways in FY '27, reflecting its conclude commitment to strengthen rail infrastructure across the country. AGL has established a strong presence in the rail and metro segment with 10 ongoing projects in its order book, including 2 recently secured railway projects from Adani Group at Anupu and Mirzapur thermal plants, and another project of [indiscernible] Metro in the last quarter. The company continues to actively pursue opportunities directly from government as well as through leading private sector players, providing a strong platform for future growth into this segment. Renewables and green energy always for India's focus where we are witnessing strong growth supported by the government clean energy targets and energy increasing investment into solar battery power transmission sectors. Best is emerging as a critical enabler of renewable energy integration and with India targeting significant storage capacity additions over the coming years. The company is trending its presence in the energy sector. The company has recently backed 2 transmission projects in [indiscernible] with a combined project value of approximately INR 200 crores and creating a strong platform for future growth in this renewable and energy infra space. In addition to this core segment, the company is actively evaluating opportunities in tunnels, water infrastructure, building and other specialized EPC sector to drive long-term growth and diversion. Let me begin with a glimpse of our operational highlights. As of quarter 4 FY '26, the company's order book stood at INR 10,147 crores comprising INR 5,392 crores from roads and highways, INR 2,025 crores from railways and macro. INR 1,527 crores from [indiscernible]. INR 86 crores from solar projects and [ INR 380 ] crores on transmission and distribution. Segment-wise roads, highways contributed 53%, railways 27% and remaining 19% is from renewables. The update on the ongoing EPC projects, [indiscernible] already been headed over to the client after reaching 100% completion in this quarter. The UR project has been completed and was opened to traffic in August 25. The completion certificate is anticipated to be received shortly. The [indiscernible] project is running smoothly with the current progress of 52.36%. The [indiscernible] project is at 62% completion and progressing towards timely computer now. The BLS project is at an initial stage with completion of just 1%. Further to which, we have removed the MSRDC projects of [ Naku Chandrapur ] Package 4 and 5 from our order book following the receipt of respective bid securities without any formal communication from the authority in this regard. Regarding the HAM projects, the canal and good project has reached 97% completion, where we have applied for PCC, which we are expected to get forth in this quarter only, quarter 1 FY '27. As shared in the previous quarter, provision completion [indiscernible] for the project of [indiscernible], OD5, OD6 and EP1 already received and all projects remain close to completion. The Kamal Ring Road project, KD1 and 2, PCC already received, which are at 99.3% and 98.5% completion, respectively, and the COD is expected in quarter 2 FY '27 and quarter 1 FY '27 for these 2 projects. The Chennai-Tirupati have budget reached a 54% completion. [indiscernible] Package 13 has achieved 29.7% progress upon receipt of provisional appointed date and the appointed date for Package 10 in Varanasi Kolkata Chakan is expected in quarter 1 FY '27. [indiscernible] Package 7 of Ada appointed date for the project being declared on 16th of January 26, and the project [indiscernible] stands at 22.1%. The narrow surrogate project has achieved 42.4% progress and remains on track for timely completion. In the one hand projects only the company received the LOA dated February 27, 2026 from NHI for Capital Ring Road Package 3 project in Visa under [indiscernible], with a project cost of INR 1,500 crores to INR 82 crores, the land accretion process is at advanced stage and the appointed date is expected in quarter 3 of the year. Turning to the progress of railway projects. The DMRC Metro project is 99.4% completed and progressing for near -- just targeting completion in quarter 1 FY '27. The [indiscernible] project is 97.3% complete and targets for all for completion in quarter 2 FY '27. The [indiscernible] project is [ 594 ] completed. The [indiscernible] project has achieved 42.4% progress and [indiscernible] project at 40.1% and Karanjgaon project at 46.6%, respectively. The appointed date for the [indiscernible] relation project was declared on 6 August 2025, and with initial hiccups into land clearance, now the execution is in full swing and the project is complete at [ 11.55% ] completion. The appointed date for newly awarded Panipat Metro project being declared as 11th January 2026, and the project is in construction phase. The company has recently secured 2 rail projects from Adani Group One is in [indiscernible] was INR 340 crores and [indiscernible], the other one is [indiscernible] worth INR 440 crores. Both the projects are currently denovation and these projects are also in execution phase. Regarding solar projects, as of 31st March 2026, overall physical progress reached approximately 96.3% and the progress of these projects got affected and delayed due to prolonged monsoon conditions and the land equation challenges for the transmission line and certain local issues, which are being resolved progressively. The company is deploying adequate resources to commission all plants within the revised contract time lines over the coming months. Notably, the Ministry, MNRE has extended the [indiscernible] Steam AMC, commissioning deadlines in Rajasthan to March 31, 2027 because of the local developer challenges. Financially, we have got a ton of the sanction of around 85% of the project debt required for these projects and out of this approximately 93% of the sanctioned project debt has been disbursed. The magnum of these planned around INR 350 crores is expected to be released post commissioning of the plant in quarter 1 and quarter 2. To bridge the temporary gap funding gap, the and to maintain the project momentum, the company secured additional working capital for temporarily increasing overall leverage. Upon receiving the final solar pending disbursement, existing high debt utilization level will be reduced in quarter 2 2027. Total equity investment stands at INR 851 crores, which includes INR 9.27 crore loan repayment required by lenders due to commissioning delays. However, this amount will be re-sanctioned post commissioning lowering the net capital with investment for FY '27. On the operational front, the company has billed INR 132 crores to discom from 131 commission plant and has realized collection of INR 114 crores til date. The best projects where finding agreement with GNL and NVVN for 3 battery storage projects with an aggregate capacity of [ 7 35 ] megawatts from 1,870 megawatt hours, the procurement activities for these projects have having total capacity of 870-megawatt hours have commenced. And orders for critical long-lead items such as power transformers, GIS switchgear systems already being placed, the overseas vendor for the DC block containers has been finalized and the company has executed the supply contract, long-term service commissioning and technical agreements with them. In January '26, the company through its SPV acquired land for [indiscernible] and Dulera project and the execution in sporting in both the projects. So the third best project, [indiscernible], which is that which is to be completed by June 27 is moving in the right place. Connectivity approvals for both Banaskata and Dolera project have been received and the execution, respectively, connectivity agreement is currently under [indiscernible]. Upon commissioning of all these best projects, the company expects to generate annual revenues of approximately INR 225 crores. Power transmission project, regarding the transmission projects, where our first project is going as per the approved project schedule. As wing incorporated, project design and engineering activities have been completed and procurement orders for long key long-lead items being placed. The SPV has successfully achieved financial closure and the procurement activities for all major project components are currently in progress. Overall, the project remains on track and planned time -- with the planned time lines and milestones. Recently, the company has secured 2 power transmission project from RECPL in UserPadesh of INR 310 crores EPC value and [indiscernible] 10 crore EPC value. The projects are expected to be -- to read 160 crore annually to the top line over the next [ 2035 ] years, once commissioned. Update on monetization of 5 HAM projects. As of March '26, we successfully transferred 100% of shareholding of KD2 and 49% of KD1, receiving partial consideration of INR 153.21 crores and INR 81.69 crores, respectively. The remaining holdback amounts are expected in quarter 1 and quarter 2 FY '27, following the project's commission operation date to be declared and completion of few purchase items. Subsequently, in April 26, we transferred 100% of our shareholding in Raipur Wishaka-Butnam 6 package, receiving a partial consideration of INR 203 crores with the remainder due in quarter 1 and quarter 2 final -- post final COD. We expect to complete the equity transfer for Project 05 and AP1 project during upcoming quarters. Regarding the Karnal HAM projects, we are in discussion with the prospective investors to finalize the nonfunding offer, and that project is likely to be monetized by year-end. Regarding equity requirements on him projects, the total equity requirements for these 11 HAM projects is around INR 1,133 crores. As of March '25, INR 1,210 crores being infused out of remaining amount -- sorry, as of March '26, INR 1,210 crores being infused out of the remaining amount, INR 414 crores is estimated for in Q2 FY '27, followed by INR 129 crore in FY '28 and INR 50 crores in FY '29. Moving on to the financial highlights of quarter 4 and quarter -- FY '26. We have started the last year with expected new orders in close of INR 10,000 crores. But due to [indiscernible] bid pipeline, we could secured only new orders of INR 300 crores during the year. Moreover, substantial delays in appointed date in the running order book has further impacted the revenue and the margins due to the lower-than-expected project award that has affected the order book and the revenue growth. And further, due to the geopolitical uncertainties, prolonged monsoon, higher commodity prices. During the year, the last quarter exclusively was deeply affected and resulted in project execution, cost escalation and profitability. Regarding the stand-alone financials, revenue for quarter 4 FY '26 reached INR 1,354 crores with an EBITDA of INR 127 crores and at about -- at a margin of 1.37%. PAT for the quarter 4 FY '26 stood at INR 99 crores with a PAT margin of 7.35% compared to INR 212 crores and a margin of 10.7% in quarter 4 '25. Revenue for FY '26 reached INR 5,667 crore with an EBITDA of INR 733 crores and an EBITDA margin of 12.94%. The PAT for FY '26 stood at INR 389 crores with a PAT margin of 6.87% compared to INR 577 crores and the PAT margin of 9.52% in FY '25. On a stat basis, our gross debt stands at INR 1,627 crores, which comprises of INR 731 crores in working capital, INR 400 crores is from NCD and INR 496 crores from term debt. Now the consolidated financial revenue for quarter 4 '26 reached INR 1,427 crores with an EBITDA of INR 237 crores and an EBITDA margin of [ 15.64% ]. PAT for the quarter FY '26 stood at INR 85 crores with the PAT margin of 5.93% compared to INR 147 crores at a 10.8% margin in quarter 4 FY '25. Revenue for FY '26 reached INR 5,235 crores with an EBITDA of INR 1,012 crores and an EBITDA margin of 19.33%. PAT for FY '26 stood at INR 330 crores with a PAT margin of 6.3% compared to INR 505 crores and a margin of 10% FY '25. Way forward, as we begin our journey from a single state and now today exhibition footprint that stand across India with successful project delivery in more than 14 states, spanning north to south and west to east. And over the past 23-plus years, we have earned a reputation of building India's infrastructure with trust, pressure and quality. Varied by a vision to connect every citizen and community to the national's progress. We are confidently targeting INR 11,000 crores to INR 12,000 crores of order inflow for FY '27, driven by a clear data-backed strategy to secure approximately 70% for roads and railways where our execution capability outpaces competitors and 30% from rapidly expanding verticals. Our historical dominance in roads and highways continue to fuel us for growth. However, recognizing increased competition and margin compression, we are proactively reshaping our portfolio for long-term value creation. We are aggressively entering high growth, decent margin sectors, best and transmission leveraging our deep engineering expertise and proven execution record. This goal beyond diversification, it is targeted expansion to future profit pools, we remain strongly focused on digitalization and technology-led project execution, enabling real-time monitoring, improved operational efficiency and help us control the better resource utilization. Combined with our disciplined approach to strategic bidding and project management. These initiatives are designed to protect and expand margins, minimize let and maximize shareholders' return. We are positioned for accelerated growth and superior returns and our diversified pipeline, financial discipline and board sector bets position as a future-ready multisector infrastructure leader. And we committed to deliver outsized value of our investors year after year. I will now hand over the call to our IR adviser and request them to open the floor for question answer session. Thank you.

[Operator Instructions] The first question comes from the line of Shravan Shah with Dolat Capital.

Yes. A couple of questions. Obviously, this quarter is the first quarter on the execution and on the margin front. So first, just wanted to try to understand bought and so on that in the middle of quarter also we are confident to kind of achieve INR 2,000 crores revenue, 15% margin and versus actually -- it is the kind of [ INR 646 ] lower revenue and the margin is also way below what we were thinking 9.4%. So just trying to understand, is there any specific project any one of anything what has happened to such that performance?

Yes. I appreciate the concern regarding the revenue. This is a technical matter into one of the few of the best projects where the -- they are the only eligible entity, which they may get this mover advantage while importing the battery part from China or overseas. For that reason, this order book which into HG's score has been taken out into SPV. So that has been one of the reasons. Also, a few other reasons because of the appointed date, which we are expecting of jargon and 1 or 2 projects which were impacted. So this has been the big reason for the revenue as we were expecting around at least flat last year's number. But again, the margin has been because of the few technical checks for one few of the projects, which, again, where the operational lines are not yet realized, which was supposed to be there in quarter 4 only. So in quarter 1, one of -- 3 of the projects where the settlement agreement is being executed and 1 or 2 projects likely within 1 or 2 months. So those are the reasons when they are being corrected into the margins.

So sir, now how one can look at the revenue for netire FY '27, '28 and the margin? And at the same time, also want to understand in terms of the broader -- the segment-wise in terms of the HAM, EPC, railway, solar price is very, very less now INR 86-odd crore, but the BESS and the new transmitter. So whatever the new we have got and in the Welspun also the order. So broadly, if you can spell out how we want to kind of execute in 2 that would help us. And in terms of the margin, as you are saying that 3 projects, the claim settlement is done and maybe one or 2 will be done. So can the margin again, will start coming back to 15-odd percent from the Q1 itself and for full year, how one can look at the margin also?

As far as execution is concerned, whatever correction, which was supposed to be there in battery projects. So now with the -- just once first 2 months, we have secured almost INR 5,500 crores of orders. So which we believe that we are started this year would be quite a good year for us as far as execution because almost all the projects which we are now working would be in an active phase, except for the project, which the appointed date of [indiscernible] rule, which is [indiscernible] project expected in October. And the project of Orissa Ring road expected in October. So with that, we are targeting a good amount of a percentage growth into this year, we are looking at about INR 6,500 crores plus of turnover for the year. As far as margin is concerned, definitely, there has been big reasons across industry, which also as I addressed in the opening remarks. So there are being few turbulent as the metal prices as the fuel energy. So these are all logistics. These are supply chain disruptions, which are causing delay as well as which are causing the margin pressure. Margin undermet disclosure. But with this whatever correction being done in quarter 4, actually, the settlement agreement for these all 5 to 7 projects being likely to be done in the coming quarters only. So with that, we believe that definitely, whatever positive correction because of the last spillover would be added into this year's number. So roughly we will be around the range of 14%, despite of the fact, the margins are under premature pressure for the year at the start for the geopolitical situation.

So in Q1 also, can we see the similar 10%, 11% and then from the 2Q or maybe third quarter onwards, we will...

As a broad understanding, we can just see the entire because it was a very say immediately, we do not just see the big correction is going to happen in quarter 1.

The next question comes from the line of [indiscernible] with First Quarter Capital.

Yes. Yes, go ahead. A couple of queries. When I look at your net debt to equity at a consolidated level, from FY '25 to '26, it has increased 1.3% to 1.4%. So just wanted to understand what was the reason for the increase? And what are our plans in terms of reduction in our debt level?

As far as the console is concerned, definitely, with the monetization proceeds which were delayed a bit because it was expected in quarter 3 and quarter 4 also all these projects being monetized. So this is the big reason when we are seeing a bit higher number into net debt equity in console as well as if you talk for [indiscernible] also, we are expecting this is to be drastically reduced from plus crores of debt would be in a range of about INR 800 crores to INR 1,000 crores of debt in first half of this year.

So how much are we looking to monetize in FY '27?

They are the projects, which we are already executed. A few of the transactions already done and a few more transactions where around INR 1,000 crores are likely to be received in this quarter 1 and quarter 2 only.

Okay. So that is how much the way that we are expecting in FY '27? It will be reduced any other proceeds that we are expecting to get that number further down?

Definitely, into SPB was not because of INR 99 crores also we deposited back to bank because of the time line, which was not extended by [indiscernible] now being extended. So with these resanction being done by the bank SBI, now that around INR 35 crores of the debt would be released to SPV and inter SPV will be going back to [indiscernible].

Okay. Okay. Got you. And in the recent transmission project that we had received, can you quantify how much is the EPC value for this project?

INR 120 crores of roughly EPC and this equity requirement would be INR 275 crores in both the project and a span of 3 years.

The next question comes from the line of [indiscernible] with GM Financial.

Can you give me [indiscernible] of how much equity requirement for both the HAM and the best projects?

[indiscernible] equity recurrent as of now, which is around INR 200 crores. So the INR 200 crores you see in quarters this FY '27, we are estimating around INR 760 crores or INR 414 crores in HAM and INR 345 crores in best than the energy and transmission also. In FY '28, it is -- it would be INR 229 into HAM and INR 132 crores in energy and balance is very small in FY '29.

So INR 200 crores is for both HAM and solar project?

Yes, yes.

And can you quantify how much amount is pending from the monetization, the total amount?

Which we are expecting now?

Yes. In this year?

So in this year, INR 203 crores already received in April and around INR 900 crores plus is likely to be is receivable in the first half of the year.

Do you say INR 94 crores, right?

Yes, yes.

INR 904 crores spending, right?

INR 935 crore to be very specific in first half. So INR 203 crores already received and balance INR 935 crores additionally would be there from June, July, August, September.

[Operator Instructions] The next question comes from the line of Shravan Shah with Dolat Capital.

Yes. So sir, on the order inflow front, you said [ INR 11,000 ] to INR 12,000 crores. So that will be over and above INR 5,600 crores that we have received here.

No, no. For the entire year, we are expecting INR 11,000 crores to INR 12,000 crores, out of which around 50% of the order already received because the order which you are expecting INR 3,900 crores, which was last year now it has been received. So for the year only, we are considering for the year one.

So then this is a decent gap, which is there because in FY '26. So we kind of have got INR 2,500 crores, INR 3,000 crores last plus INR 2,142 crores MSRDC cancellation. The kind of INR 7,000 crores additional. So this number was -- previously also, we were looking at the similar numbers. So this year to fill the gap, we actually need a kind of INR 17,000 crores plus kind of a order inflow total to fill the gap of FY '26 plus MSRDC?

Because of the recent scenario, you cannot guarantee the orders for the year because in the last year also, we were expecting a big order inflow from MHA only, but nothing has happened, nothing bigger has happened other. So with that, we cannot just guarantee now we are estimating at INR 12,000 crores for the year. And if we execute around INR 65 crore crores. So we would be having around INR 1,600, INR 15,000-odd crores of order backlog FY '27. So as of now, because of this war situation, because of the geopolitical any turmoil, we cannot guarantee anything in India also we would be able to grab this kind of a number. We can always see in quarter 1, after quarter 1 and quarter 2, if any positive with companies again interested into looking into the healthy order positions as well as a decent margin, so as to sustain and scale both.

Okay. Got it. So given that, let's say, by end of FY '27, whatever the number we are seeing, INR 16,000 crores kind of order book is there. So for next year FY '28, how one can look at in terms of our execution this year, you said INR 6,000?

Once everything stabilized, definitely, we are aiming to look at whatever is the shortfall for the year, which last year we have seen negative growth in revenue as well as margin was into pressure. We will be trying to recover back to the normalcy and expecting around INR 8,000 crores of order execution in '28.

Okay. So INR 8,000 kind of revenue can be doable in FY '28. With this, the number, if you get the more inflow than would be better. But on the margin front, particularly the recent one, whatever we have received this INR 5,600 crore because it has a decent INR 3,900 crores misporderone. So just trying to understand, relatively, obviously, whatever the commodity inflation is there, that will definitely will have an impact. But structurally, how one can look at, at least we can have a 13%, 14% kind of a margin on a sustainable or as we keep on having the new orders, new segments, then we ultimately will kind of move to a 11%, 12% kind of range over 3, 4 years. So that's the broader understanding wanted.

Definitely, this margins which we never want to see that the growth is at a less margin. So we would be expecting around 13% to 14% growth year-on-year margins with a growth of about 15% year-on-year.

Okay. Okay. And a couple of, sir, balance sheet data point, if you can say unbilled revenue, mobilization advance, retention money, and data, solar debtor and competitors.

You see the debtor balance is around INR 1,560 crores. The INR 1,560 crores plus INR 190 crores is the retention from debtors on the old out of which best and transmission do have INR 128 crore. And the [indiscernible] INR 195 crores is Rani, and [indiscernible] PVs, all 7 and 9 SUVs are there, INR 90 core and railway, around INR 218 crores and balance is SPVs of solar around INR 280 crores. And as far as unbilled is concerned, and see of the others also is there, balances. And our contract assets, this breakup is around INR 1,800 crores that has gone very high because of a few of the projects which we are expecting COD where the operation claims and other final bills were likely to be received, but it could not be done. But then you'll hear the breakup is into solar, INR 116 crores and railways INR 449 crores and HAM INR 690 crores. All SPVs and [indiscernible] INR 139 crore, and rest is NHI and others, INR 178 crores and INR 215 crores.

Okay. So total -- sorry, put together, you said INR 1,766 in the unbilled revenue?

INR 157 to be very specific. 17% transmission, yes, correct.

Sorry, sir, I didn't get the 18 56 you said.

It's a total of INR 857 , out of which our ad breakup has been given. So you can take the detailed numbers from [indiscernible] also.

Yes, got it. And mobilization advance will be?

Oblation demand is INR 327 crores.

And in terms of broader level, the CapEx for this year and mix given that you could [indiscernible].

Much of that being done last year also not a bit CapEx or of FX hardly would be there for the year for the kind of contracts we do have under a few projects which we're likely to get that.

Okay. And that, you said, by 1H, we should be reducing to INR 800 crores to INR 1,000 crores or by INR 800 crores to INR 1,000? Yes.

We are targeting at this once the transition of all HAM projects as well as solar debt being recovered through SPV. So this is a good number. And again, the unbilled contracts, this under contract are set, which are likely to be built very fast now because all the projects are nearing COD. And with all settlement agreement and final agreement being signed by the clients. So we are hoping in quarter 2 and quarter 3 likely around INR 500 crores would be received from these contract assets also.

So by September, we are looking at this INR 1,627 crores debt will come to INR 800 crores, INR 1,000 crores? And then further, maybe by March, with the soda reduction, maybe further, we can extend the further reduction.

Quite right.

Okay. And then sir, lastly, the equity breakup in terms of -- again, if you can specify particularly the solar when you said that, that equity requirement, INR 71 has increased to INR 851. Correct me if I'm wrong.

What has happened, the bank has recalled certain loans because the time line of these solar projects where they were not outstanding. Now with the extension being done through 31st March '27. So again, this INR 9,900 crores is going to be re-sanctioned and would be released. So put together, the total equity requirement in energy best and all would be around INR 345 crores.

Okay. INR 345 crores is for the year? Okay, for the year. No. So currently, in solar, the number is the same, INR 731 crores and then the BESS, how much...

Whatever additional payment we had given, that will be paid back.

The next question comes from the line of Vishal Periwal with PL Capital.

That's just continuing with the previous. So the transmission BESS and solar projects, we are funding at what debt equity ratio?

This is around 30/70. See, this is around 27%, 27% equity and rest 73% debt.

Okay. Even the Mirapoint Jarkan project for financial year '27 that we are seeing, that is a similar sort of trajectory?

Yes, of course, I think it's having the [indiscernible].

Okay. So the reason I'm asking is because you mentioned we'll be putting INR 275 crore equity in these 2 projects. And if we do sort of debt equity ratio, then the gross block comes to almost like INR 900-odd crores for these 2 projects. And the EPC value is almost INR 1,200-odd crores. So...

So this is the EPC value, plus some interest during construction, some soft and hard costs. So overall EPC contract is including GST. Probably it is to be look into because just 2 days back, we have received this project. -- but roughly INR 275. It can -- maybe just [ 2 ]5 despite that side.

Okay. Sorry, you mentioned 375?

275. 275.

Sure, sir. And second, on this revenue growth trajectory for the next year, almost like 14%, 15% sort of growth that we are projecting. Now is this fair to say probably the growth will be evenly across the quarter because for quarter 1, almost like 2 months have passed? So can we say that probably 14%, 15% evenly will be there? Or do you think that elective will be more of a third or fourth quarter? I think.

Later half of this year, what we quite aggressive because we will be seeing some big ticket size projects contributing a lot. And for first half, no doubt for the last year, what we have achieved would be roughly around that because last year first half was quite good. Later half was quite down.

Okay. Okay. Got it, sir. And last thing, in terms of margin trajectory, though, I mean like your commentary did mention that like we are seeing inflationary pressure the overall system is facing that. But in terms of our guidance from 13% that we have clocked in FY '26, we are projecting almost 100% -- 100 basis point increase in '27. So is this -- I mean, like any project mix that is changing in revenue? Or what could drive this -- the margin increase for us?

Just the total project, which we are executing around 70% are from infra rail and roads majorly. So that a decent margin at 14% to 15%. Bearing few of 2 projects. But then again, the other projects which we are operating like battery and transmission and they do have around 10% to 11% project. So put together, around 40%. Average margins are a bit there. in all these projects.

The next question comes from the line of [ Aditi Sahu ] with HDFC Securities.

[indiscernible] just add a follow-up question. On the EBITDA margin guidance, that would be around like 14% to 15%, so right, if I'm not wrong.

No, no, sir, what we are discussing about because of these disruptions and other issues, you cannot get up the margin accurately, but we are expecting around 14% for the entire year is possible. It may be quite not include that range in quarter 1 and quarter 2. So after that the normalcy once it comes in, then it would be against stable.

Right. I think the overall guidance we have is about INR 11,000 crores to INR 12,000 crores. This is including the one that we have already received of INR 5,500 crores.

Yes, we are keeping the guidance because, let's say, in any case, the projects which are there in the pipeline is good. But you cannot guarantee those quarters which were last 1 year, we also were waited for those orders. But again, if we are expecting that INR 5,600 crore already done, so we would be definitely in having an upper edge to just see this streak continued and we are expecting to be added during the balance of the year and 10 months.

Understood, sir. And on the revenue come think last time we had guided some INR 7,000-odd crores of revenue. So is that the similar revenue guidance we have this time?

Yes.

Understood, sir. And on the big balance in the ratio, just a table are you expecting, say, by FY '27 in terms of your targeted debt to debt equity you plan to maintain [indiscernible]?

That number at standalone consol level as we were discussing a that we are targeting our INR 800 crores to INR 1,000 crores of debt by year-end. At stand-on basis and the debt equity ratio for console would be less than 1.

Okay. Understood, sir. And the -- on the asset monetization, we have -- I think I noticed it 5 projects we have for FY '27, of which we are expecting INR 1,000-odd crores to be received by Q2. I hope...

Out of these 5 projects, this is the balance, which is around INR 1,000 crores in first half of this year and we are targeting to monetize the project very soon when we are going to receive the PCC for the entire year, we are looking into the further getting NOC. And by end of this year, we're likely to close this trove also.

Understood, sir. And on the HAM equity requirement, I think I noted INR 1,200 crores is the overall equity requirement that we have equity would be INR 760 crores, '28 to '29. I hope I have got this one right also.

Yes, you are right. I think this is the same [indiscernible].

Perfect. And the balance would be for FY '29, that would be [indiscernible].

Right. Correct.

Understood. And just wondering as you think last time you mentioned a [indiscernible] execution was affected if you could continue on that one?

No, no, see, Napodano projects, which we have taken out from a balanced order book because there is no surety regarding the bid security being released by clients. So with that, I think the clarity is maybe they are going to be rebid it. And once they are going to be billed soon, then we can expect further okay, if those are the projects or any of the projects from Maharashtra we would be likely in race to bid and receive.

Okay. Okay. Because I think we were earlier planning the execution to begin by H2 FY '27. I think that is where we stand event.

That was the initial indication because the land of the acquisition and everything is going at a very on stage, but we are not expecting this to -- as a bit security being refund, so it will clearly indicate that it's going to be able.

[Operator Instructions] The next question comes from the line of Parth Thakkar with JM Financial.

Sir, what would be our current bid pipeline and have been built for any projects where the delta yet to come out?

Yes, there are around INR 25,000-odd crores of project already has bedded mostly on roads, a few from rail and one or 2 from transmission and BESS as [indiscernible]. And further, this pipeline, which already wear is around INR 7,000-plus crores and around INR 30,000 intraday, which are visible, which we would be likely to bid in the near future.

Sorry, sir, you said INR 7,000 crores?

This is a road pipeline, which we are going to bid for in the near future. INR 30,000 crores already we had bidded majorly into road majorly from roads and tail.

Okay. And in your initial demand set that we expect around INR 225 crores BESS revenue, is that right?

So this revenue from BESS of transmission and solar, like solar, we already clocked INR 130 crores last year. So this is the revenue, which will be coming in SPV as EBITDA. These are all projects which are INR 225 crores in base on transmission and the solar. It is around INR 500 crores to INR 550 crores of total top line year on yearly that we will be getting once commissioned.

The next question comes from the line of Shravan Shah with Dolat Capital.

I think, sir, just a clarification. I think in the previous answer to the HDFC guide, you said that for FY '27, the revenue guidance is INR 7,000 crores, but actually, initially, you said INR 6,500-odd crores. So just to clarify.

Shravan, I think it's roughly -- we are targeting at 6,500-plus numbers. But definitely, as we are having a strong number now with balance of about INR 15,500 crores, and we expect that it would be roughly half of the order would be executed because of another project which are likely to be finished within this year. That gives us the surety. Again, the ponds is one item where the supply is mandated to [indiscernible] projects, which were not earlier in their orders likely that INR 600 or [indiscernible] to INR 600 crores of order would be done in [indiscernible] transportation also. So this is how we are looking at about INR 7,000 crores.

Okay. And any rough idea once we get this well on appointed it by October. Out of this INR 3,900 crores, how one can look at this year and the next year in terms of the revenue?

So we are -- roughly, we would be doing around INR 750 crores investment order because in initially 2 months also, this 4 months also, there's INR 115 crores of utility shifting to be done. So preconstruction phases where they are going to pay us. So these are not only after the point at the full -- that appointed after the point the full execution would be done, but first, say, a few months, we are doing that execution, which is really required and that is going to add into revenue.

Okay. Sir, roughly for the full year, maybe INR 900 crores kind of a revenue fees is doable for '27?

Yes.

And so next year, then it would be close to 1,800 plus kind of numbers would be there?

1,800, but definitely, it would be [indiscernible] to complete the project in 18 the 36 months, and we are targeting that -- because this is having the bonus loss to be [indiscernible] months and if we have been done in INR 33 crores to INR 75 crores.

Okay. Okay. And the new one this Odisha. So there, do we see any kind of an issue in terms of the land or anything because...

No. The projects which are now being awarded by NHAI, they do have a very good feature as far as appointed date would be aligned with the contract detriment concession agreement. -- within 6 months once the LA or concession agreement signed, we are expecting that all projects do have the beauty of land acquisition, console and in other [indiscernible].

Okay. And then sir, broader level, how one can look at your own estimates from NHI side, let's say, for this year, how much kilometer of value and that also they are also seeing that the BOT would be the preferred or more for them now. So if that is the [indiscernible]?

We're not expecting that would say, quite of interest has not been showed by many of the players in BOT segment. So with that, we are expecting that, no doubt, have more preferred, but BOTs.

But roughly, how much kilometer do we think of 8,000-odd kilometers?

Exactly, I'm not having exact number.

Okay. Okay. But if they go for, let's say, BOT tool, but we will not go for it. We will prefer to kind of a subcontract the way we are.

We are [indiscernible].

Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments.

So thank you for joining us today. We remain confident in our continued success and are here to address any further questions, please feel free to reach out to us or our IR advisers, Go India Advisors. Thank you.

Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.