J. Kumar Infraprojects Limited (JKIL) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the J. Kumar Infraprojects Limited Q3 and 9 Month FY '26 Earnings Conference Call. [Operator Instructions] Before we begin, a brief disclaimer. The presentation which J. Kumar Infraprojects has uploaded on the stock exchange and their website including the discussions during this call contains or may contain certain forward-looking statements concerning J. Kumar Infraprojects business prospects and profitability, which are subject to several risks and uncertainties and the actual results could materially differ from those in such forward-looking statements. [Operator Instructions] I now hand the conference over to Mr. Nalin Gupta, MD, J. Kumar Infraprojects Limited. Thank you, and over to you, sir.

Good afternoon, everyone. On behalf of J. Kumar Infraprojects Limited, I warmly welcome you all to our Q3 and 9 months FY '26 earnings conference call. Joining me today on the call are Mr. Vasant Savla, Chief CFO; and our Investor Relations partner, Marathon Capital. I trust you all had the opportunity to review our earnings presentation and press release available on the stock exchange and our corporate website. During the quarter, the company reported a moderation in its operating and financial performance compared to the corresponding previous period. The decline was primarily on account of an extended monsoon season, which led to temporary disruption at multiple project sites, slower execution progress and deferment of billing linked to milestone achievements. The impact was largely operational and time related in nature. The company maintained a stable balance sheet position with adequate liquidity to support ongoing operations. While the first 9 months has been a period of balanced performance, it's also strengthened the foundation for a stronger performance for the periods ahead. Our order book remains solid. Execution velocity is improving after temporary moderation. And our capabilities across key verticals continue to evolve. Each milestone, big or small, reflects the dedication of our people and the trust of our clients and partners. I take great pride in the role we are playing in shaping the future of infrastructure, delivering projects that not only support economic growth but also drive transformation at scale. As we look ahead, our priorities remain clear to build on our progress, remain agile in an evolving market environment and continue to push boundaries with focus and conviction. Backed by the strength of our people and a well-defined strategic vision, I'm confident that the most compelling chapters of our growth journey still lie ahead. Now coming to financial performances. Consolidated performance highlights for the 9 months FY '26. Revenue from operations for 9 months FY '26 grew by 2% to INR 4,138 crores as compared to INR 4,061 crores in 9 months FY '25. EBITDA for 9 months FY '26 grew by 1% to INR 599 crores as compared to INR 591 crores in 9 months FY '25. EBITDA margin for 9 months FY '26 stood at 14.5% as compared to 14.6% in 9 months FY '25. PAT for 9 months FY '26 stood at INR 277 crores as compared to INR 277 crores in 9 months FY '25. PAT margin for 9 months FY '26 stood at 6.7% as compared to 6.8% in 9 months FY '25. Consolidated performance highlights for Q3 FY '26 stands at revenue from operations for Q3 FY '26 moderated by 12% to INR 1,311 crores as compared to INR 1,487 crores in Q3 FY '25. EBITDA for Q3 FY '26 moderated by 14% to INR 188 crores as compared to INR 219 crores in Q3 FY '25. EBITDA margin for Q3 FY '26 stood at 14.3% as compared to 14.7% in Q3 FY '25. PAT for Q3 FY '26 moderated by 17% to INR 83 crores as compared to INR 100 crores in Q3 FY '25. PAT margin for Q3 FY '26 stood at 6.3% as compared to 6.7% in Q3 FY '25. Net debt as on 31st December 2025, stood at negative INR 2,250 crores, that is cash positive; and debt equity ratio is at 0.2x, reduced from 0.23x in FY '25. Working capital days, 9 months FY '26, stood at 103 days as compared to 112 days for FY '25. Total order book as on 31st December 2025 stood at INR 19,212 crores. The order book inter alia includes metro projects, elevated and underground, contributing to 11%; elevated corridors, flyovers contributing to 53%; roads and road tunnels projects contribute 17%; and other contributing 18%. We can now begin with the questions-and-answers. Thank you very much.

[Operator Instructions] The first question is from Parikshit Kandpal from HDFC Securities.

Sir, just on the execution. So now you highlighted that various factors were there. So are the sites now mobilized and the execution pace is back to normal?

Well, Parikshit, as we have said that there were a lot of issues that operational issues, some land acquisitions which were there. But now everything is in place, and we are very positive that from FY '26-'27 should be surely giving us a growth of around 15%.

15%. And for FY '26 your revised guidance?

So for FY '26, we hope that we'll be able to maintain or surpass the last year's top line that we did of around INR 5,700 crores.

Okay. And on top of that 15% growth for FY '27.

Yes.

And margin guidance, EBITDA magin for FY '26 and '27?

Yes. So if you look at the figures, Parikshit, all the jobs that we have secured are all with a similar margin of 14% to 15%, so there, we don't see any sort of decline or anything happening.

Okay. So for both the years, '26 and '27 -- FY '26 and FY '27, you'll maintain that 14% to 15% band?

Yes.

Okay. So now coming to order inflows. So what has been the order inflow for 9 months and for this quarter? And also recently, the Maharashtra government has announced the golden line, Metro Line 8. I think -- so what are other metros which are currently under work? And how do you see the pipeline building out some of the key projects, large projects if you can highlight in the pipeline that will be helpful?

Well, so firstly, with regards to 9 months order book, we have received an order close to around INR 515 crores. And we have already bidded projects worth around -- we are already L1 in INR 1,728 crores worth of job. And there are around INR 13,000 crores worth of projects that we have already submitted the bids for. So for the current fiscal year, I would say that we are hopeful of closing with an order book of around INR 4,000 crores by the end of March '26. And for FY '27, we expect around INR 7,000 crores to INR 8,000 crores of order book because as you rightly said, there are a lot of -- this current year, Parikshit, I would say that mainly FY '25-'26, the order inflow was very poor. And there were a lot of tenders which are in the pipeline, but could not see the light of sun. But in this coming year, we expect a lot of order inflows to happen, maybe last year it was due to the election issues that they did not have much projects in the order inflow. But the coming year, I'm expecting substantial orders to go for. As you said, Metro Line 8, there is also this Metro Line 5 extension, which is from Kanjurmarg to Badlapur; and Metro Line 10, which is from Gaimukh to Shivaji Nagar. This is for Bombay, as we speak of. But also Delhi, Pune Metro, there is INR 1,000 crore another project, which has come up. Delhi Metro, we have recently submitted DC06 and DC07, which is close to like INR 3,500 crore-odd project, 2 projects of around INR 1,700 crores, INR 1,800 crores. So there are metro projects coming up. There are elevated corridors and road projects of MSRDC and MMRDA that's coming up. There is an access control road from Ambarnath to Kalyan and Ulhasnagar, Dombivli, which is around INR 10,000 crore, which we should see very shortly, these tenders to be published by the MMRDA, which is the implementing authority. Again, Nagpur-Gondia, Shaktipeeth, so these are around INR 30,000 crores of projects, which should be floated by MSRDC on EPC. And also SIDCO is coming up with Metro Line 1A and 1B close to around INR 5,000 crores. And also the much awaited project of MMRDA for the Uttan-Virar, which is the extension of the coastal road on the west side, which is around INR 35,000 crores, INR 40,000 crores is also expected in this FY '26-'27. So I think overall, FY '26-'27, we should see substantial order coming in throughout Maharashtra and pan-India.

All these points which you highlighted, sir, you expect that these will all get awarded in FY '27. So starting from next financial year -- early next financial year, we will start seeing momentum on all these projects, right?

I'm very, very hopeful on that, yes.

The next question is from Vaibhav Shah from JM Financial.

Sir, can you state the progress of your big-ticket projects? So firstly, on Chennai elevated corridor how has been the execution so far?

So Chennai project, the project has fully been geared up. The casting yards has been fully set up. And there is around -- we have done a progress close to around 9% to 10% on that project financially if you talk of. But because there are also a lot of issues with regards to the Maritime Board because it's on the -- by the sea, so because of that, there are limitations in working periods that we get. But now the casting yards have started generating revenue. So these tenders being milestone-based, so it does not really exactly replicate in terms of the financial progress of the project. But that project is now under control, and we should see a decent top line coming in for the next financial year.

What was the timing issue you said? Work time is not provided completely. So what was the challenge over there?

It is because of the project being along the sea, so -- along the Chennai port. So because of that, there are some limitations in the periods of months that you are supposed to work there.

So this will continue over the completion of the project or this may -- the time period may increase?

So it's mainly during the foundation substructure stage that it has effect. Once the foundation and substructures are done, the superstructure won't have any effect because then you can carry on that work with an overhead launcher.

When do we target to complete the project? It was a 3-year project. So do we expect to complete it in FY '28 or it will spill over to '29?

Well, so the exact time line for that project, to be honest, is looked after by my brother. Unfortunately, today he is not here. But around 2 years or so, more or less, the project should -- 2 years more or less, I should say, for the project. Yes.

Okay. Sir, last time, you mentioned that on the SIDCO order from coastal road, Kharghar to Nerul, around INR 1,000 crore project, so you were targeting to start the project in December. EC was awaited. So any update on that?

It's not started yet. It's on the -- it's ongoing, but not -- we haven't received it yet.

So when do we expect to start the work over there? We will receive it in Q4?

Not Q4, I think in FY '26-'27, we should start getting some revenue from that project.

Okay. Sir, secondly, how do you see the debt moving ahead. So we have seen some reduction in the debt levels in the current quarter, so do we see it increasing once the execution picks up or should remain at similar levels?

I think INR 600 crores to INR 700 crores is something that we can look at because there will be, of course, an increase in the term loan that we'll be seeing. But in terms of debt level, we don't -- 600 crore, INR 700 crore is what we can expect.

Okay. Sir, lastly, you mentioned that we would be revising the guidance for revenue, kind of flattish for '26 on a Y-o-Y basis, it implies a flat Q4. Is that correct?

Yes, yes. Exactly. Because 9 months, if you see it's just -- means, 9 months, we could not do really what we expected. So in this financial year, we should see a similar top line as what we saw in FY '25.

Sir, while we're missing the number on '26, so the base is lower compared to what we were earlier expecting, so don't we feel that '27 can be a much higher number than 15%?

Well, see, because of the FY '26, we would like to keep our numbers by -- to around 15%. Though we'll put our best efforts and see that we get this number higher. But we are also a little bit disappointed with the FY '26 top line that we were expecting, so which was also due to the new order inflow that we could not see. If you look at the order book for the 9 months, it's just INR 520 crores. So basically, the new projects also add somewhere or the other to the top line of the coming financial years. So this year, it has been almost nil till now, INR 500 crore is nothing much. So once the order books inflows are coming into the company, again, the guidance can be revised in the subsequent quarters, is what I feel.

And sir, lastly, on the interest costs, we have seen some spike in the number from INR 39 crores to INR 44 crores on a Q-o-Q basis, but the debt has reduced. So what has been the reason for the increase?

The increase is basically because we have taken mobilization advance, so because of that, there is a small increase in the interest cost.

So what is the mob advance as of December?

Mob advance is about INR 800 crores as of now.

And the interest-bearing portion of that?

Interest-bearing portion is about INR 650 crores.

And the interest rate would be around 8.5%, 9%?

No. Each product has its...

It's variable. If you look at those numbers, they are quite variable from 0% to 10% sort of thing. So averagely, you can say, yes, whatever, 8%, you can say.

The next question is from [ Yash Kothari ] from [indiscernible] Research.

Am I audible?

Yes, Yash. You are very well audible.

Yes. So just wanted to understand, I mean, obviously, you're talking a lot about the order book execution, but I just wanted to understand what is the current outlook execution time line? Like what proportion of the order book is already under execution versus what is yet to commence?

So I would say that INR 19,200 crores approximately is the order book as of 31st December 2025 and around 3 to 4 years is the time line -- 3 years, I would say, ideally, would be the time line to complete these jobs.

Okay. And out of the INR 19,200 crores, is there like a rough percentage or an approximate that you can give me which is already under work and what would probably come in FY '27, is it possible to give that?

I would say that 90%, 95% of the order -- I would -- okay, let's put it like 90%. Yes, 90% of the order book is already into a pipeline, which has started generating revenue. There were certain projects in FY '25-'26, which could not really add much to the revenue like our VDCR project and Anand Nagar Saket, because there was -- and including GMLR as well, we could have done much more had we got the key permissions because -- and some land acquisition issues. So the launching shaft like for GMLR, if we talk of, the project was -- the shaft was in eco-sensitive zone, but outside the forest area. But there were some local adivasis who didn't want to the shaft to be constructed because of their houses and the shanties which were there. So there was a positive variation which was given by the BMC of INR 800 crores where J. Kumar's share stands at INR 400 crores. And the shaft -- the tunnel length was increased by 600 meters. So such type of things could not get the project fully into flow, but it's very pleasing for me to inform everyone that we have -- we got the land for the shaft for GMLR in August '25 and in just a span of 6 months, today we are doing the first PCC, the lean concrete where the TDM will be lowered into the shaft. So by this month end, we should be starting lowering the TDM into the shaft. So it was a very quick and great job that the team has done. And we should be putting the team -- both the tunnel boring machines are -- they have reached the job site. So that project will now start generating a decent top line. Again, VDCR, there were some changes in the joints, which was -- there were a lot of clashes between the different elevated metros and flyovers that we were crossing. And there is also some change in scope on the positive side that we are expecting. So that GAD was just yesterday being cleared by IIT because it was a third-party check that had to be done. So similarly, there were some teething issues in Anand Nagar, Saket, VDCR, GMLR, which has been sorted. So FY '26-'27, that's why we are very hopeful that we should be crossing this 15% top line that we are expecting.

Okay. And just to bounce off this. So was there any unbilled revenue in Q3 that we can expect to spill over in Q4? Is that a possibility?

Yes, there is an overall unbilled revenue of INR 600 crores.

Okay, which is -- okay, not that significant.

Yes.

Okay. And just one last question. So as our projects mature, so should we see mob advances trend down as a percentage of order book or will there not be that significant a change in that?

No. Of course, the mobilization advances, they start getting deducted as soon as the project reaches 20% of the total project value. So it is a scientific way where it starts getting deducted. So it has to lower down.

Okay. So would you say by Q2 of next year, may we see this or earlier?

No, actually, it is already happening. If you see Q2...

Certain projects have already started. Like GMLR will start -- we have taken a mob advance of close to around INR 200 crores, so that will start in -- from Q1. And there are certain projects where already the recoveries have started and some old projects where the mobilization advances were there, they have completed or on the fag end of the last installments or so on.

So if you see Q2, in Q2, the normalization advance was INR 900 crores. And in 1 quarter, it has got reduced to INR 800 crores.

Okay. Okay. So similar rate can be expected in the coming quarters?

Yes.

The next question is from Alok Deora from Motilal Oswal.

I think the operator's voice is not so audible. It is very slow.

I am sorry. The next question is from Alok Deora from Motilal Oswal.

I just had 1 question. So until the last quarter, we were targeting some INR 6,300 crores of revenue. So I just wanted to understand what has actually happened in this quarter that the full year number also we are keeping it kind of flattish now as against the 10%, 11% kind of growth rate? Because we had the order book in place. We understand that the new orders could not come through because of election and other reasons, but what really impacted the execution that we are kind of, in a way, reducing the full year guidance for execution?

See, we already spoke about like when you are talking about the project, like when we spoke about GMLR, we spoke about VDCR, so these projects are -- its VDCR is almost like 2 years. The project is around INR 2,500 crores worth of project. And we have done only INR 100 crores out of it. And the other projects, there were 7 projects that were being awarded at the same time. Package A to F, where Epco, L&T, J. Kumar, all these companies which bagged the orders could not even start INR 100 crores worth of order book from that. But we were on our toes trying to give whatever drawings were being -- there were various revisions because this is not a stand-alone project. It is comprising of 7 projects where the in and out traffic movements, the levels, the land acquisition issues depends on each -- any change in one project affects the alignment of the other projects. But we had been submitting all the required details quite on a prompt basis, but the approval from the third party, because it has like our designer, then LDC and then third -- GC and then LDC -- this third-party IIT approval. So we have got those things in place now. So these things which we thought that it could be approved because we are from our end of J. Kumar, we were ready to execute the project, and we have already completed around 9 to 10 foundations on the Film City side on the -- near the highway at East. So such kind of things which we expect the project is given, we are mobilized, the drawings have been submitted, but it's a government process, that took time more than what we expected. So that's the reason where these projects have taken a hell lot of time, though we had a lot of support from the government. Even the GMLR when we talk of, all the lines were being acquired for the areas, but the tree-cutting permission, which was also been awarded by BMC which is the standing committee is supposed to approve. So under the administrative powers, the commissioner gave the approval. But unfortunately, it falls under RA. And there is a general order being given by the High Court and Supreme Court, where the Supreme Court has mentioned that any tree cutting in RA should be informed to the Supreme Court and approval has to be taken. So especially the AG were being instructed to plead the case and we got all the approvals. We did the tree cutting in just 1 month time and the new plantation is going on. And still, we have executed the entire shaft. So such type of things which are not under fully our control has led to such situation. But now looking at the current position, Alok, I would say that we are very, very positive that we should be able to achieve a 15% growth for the coming year.

Got it. So in fourth quarter also, we are -- we have got those approvals moving and we'll do the balance revenue for the fourth quarter?

Yes. Like if we talk of VDCR, just with 1 example so that I don't waste everyone's time. VDCR like the approval from IIT has come that this is the GAD how you're supposed to construct, because it's 7-kilometer elevated corridor along the coastal road and perpendicularly going to Film City. So that approval has come. Now based on that, the design submissions will happen, the exact location soil investigation will be done based on that GAD. So the financial revenue contribution, if you see, will come from Q1. So that's how -- like with 1 example I hope I could explain where the things are.

Sure. So net-net, we could do slightly more than 15% also because this would be basically a little spillover of this year also could be there in the '27 and...

Hopefully, we should. We'll try our best, Alok, and J. Kumar, we don't usually like to show such numbers. But I will tell you 1 thing is also the order inflow. Our -- always our endeavor is to see that the bad project which adds to the bottom line of the company, like [Foreign Language]. But we want to keep our -- the horses under control and not to go aggressively bidding where we don't make bottom line and just for the heck of -- today, if I'm coming with some top line, where my margins are intact and where I'm able to grow at the similar profit margin and PAT and EBITDA levels, that is more acceptable than just increasing the top line and not making good bottom line. So we don't want to compromise there. But hopefully, this year also we should book around INR 4,000 crore by the end of the financial year and around INR 7,000 crores, INR 8,000 crores for the next year. So hopefully, we should be doing better than what we are expecting.

The next question is from Sidhaant Lodaya from Sanshi Fund.

Sorry, I could not get the name please.

It's Sidhaant Lodaya from Sanshi Fund.

Am I audible?

Yes, yes, Sidhaant. Please go ahead.

Just a clarification question. We've mentioned that our order book currently is INR 19,200 crores. And when we say that we'll book another INR 4,000 crores in March '26, so does that add on to the INR 19,200 crores or how does that calculation work?

You could add INR 4,000 crores to the top line minus the revenue that we'll be doing for Q4.

Sorry, INR 19,000 crores will add to INR 4,000 crores and then minus the revenue, correct?

That's right. You got it right.

[Operator Instructions] The next question is from Shravan Shah from Dolat Capital.

Before asking a question, just on the strategy front, I wanted a clarification. All the bid pipeline that we have, sir has mentioned at the start of the call, in response to Parikshit's reply, all these projects are on the EPC or are there any projects which are on the BOT mode also?

Well, all the projects, Shravan, that we have mentioned here, they come in only from EPC and J. Kumar, we are not bidding for any BOT or such projects. So all the projects that I have mentioned comes in from EPC.

Yes. So sir, my question is that only because we have bidded in Hadapsar Yavat BOT project that was INR 7,000-odd crores. So I'm wondering though we did not got -- we were L4, but just trying to understand your strategy if we would have won, let's say, are we ready kind of INR 1,800 crores, INR 2,000 crores kind of an equity commitment? Because 25%, 30% of INR 7,000 crores comes to that. So I wanted to understand in future also can we also even think of bidding BOT projects? So what's the strategy there?

So well, Shravan, that was a very, very specific call that we had taken. And this is -- if you look at these many years, we haven't bidded, and we don't have any future plans to bid for it. That was very strategically -- because we are well established in Pune, and that 1 project had some specific reason why we bidded for it. So -- but we bidded at our price, you can see where we are -- means bidding hightest. So it was a very strategic call that we have taken for a particular movement. But we don't have any future plans to bid for BOT.

Okay. Got it. And just to again clarify, so given what we are saying INR 5,700 crores revenue for this year, FY '26. So I'm just doing the math. So it means in the fourth quarter also, we are looking a 3% to 4% kind of a degrowth on a Y-o-Y basis. So just wanted to clarify that.

On a year-on-year basis, if we talk of FY '26 numbers, it could be flattish around with INR 5,000 crores -- INR 5,700 crores top line as compared to FY '25. That's what we are trying to say.

Okay. And last time we were looking at that maybe we can see some improvement in the margin to 15% to 16% over the next 2 to 3 years. So will that remain same or no now only 14%, 15% margin that we can look at?

So as we have mentioned that this year, we were flattish. So next year, we are looking at similar or better margins, but no degrowth in margins for sure.

Okay. Got it. And a couple of balancing data points. I just wanted to get, retention money, inventory, debtors and payable?

So retention money is INR 415 crores and debtors is INR 1,507 crores.

INR 1,507 crores?

INR 1,407 crores, that is debtors. And what else?

Yes, inventory?

Inventory is INR 908 crores.

Sorry, sir. So the way we report in the balance sheet, so in the September, it was INR 327 crores.

That is now -- it is INR 286 crores, raw material inventory.

Okay. INR 286 crores. And trade payable?

Trade payable is INR 750 crores.

Okay. Yes. And the CapEx for 9 months, how much we have done and for full year, so last time, we said INR 500-odd crores that we were looking at, so for...

We have already done INR 433 crores for 9 months.

Okay. And how much more can be done in fourth quarter?

More or less another INR 100 crores-or-so.

Okay. And then for next year, then it would be INR 200 crores, INR 300 crores, that's the way one can look at?

Yes, yes, yes. That's right.

Okay. And on the working capital front, the current -- whatever the days we have 103, so that numbers broadly will remain here?

So we -- as we have said that this is right now -- this year, we had a flattish top line, so that's how it has dropped to 103. But as the work progress will increase, we intend to keep -- we expect that it should be around 115 to 120 days.

Okay. And this TBM depreciation will start from the Q4 itself or from Q1, Q2 for '27?

It will start from Q1 or Q2. Because we start capitalizing after the TBM is installed. We have received both the TBM, but it will start getting capitalized once it is lowered in the shaft.

Okay. And sir, last time we were L1 in Lucknow convention sector, INR 1,200-odd crores. So was that canceled or...

No, it's still stands at -- so I mentioned that INR 1,728 crores is -- we are L1 in the project, which includes 1 project of Lucknow, which is INR 1,206 crores and 1 project of NBCC, which is INR 522 crores. So this INR 1,728 crores worth of project is still L1, and it should be getting converted into order book.

So by March, it should be -- LOI should be there?

We expect so.

Okay, okay. Got it. Yes. That's the only thing, so the hope is that we should do a better execution, try to recoup whatever we lost in this year in next year, so that's the...

Positively, Shravan. We are also very hopeful and will work on it.

[Operator Instructions] The next question is from Thomas, who's an individual investor.

Yes. I just wanted to know, you had talked about fund raise of INR 800 crores. In your understanding why is it been delayed? Why have you not executed or you have investors lined up?

Can you be a little more louder? Unfortunately, you're not very clearly audible.

Yes. So you had initially mentioned that you were planning to do a fund raise of INR 800 crores and you -- it's been delayed for this time period, it's been now over a year since it was initially planned. So do you have -- what is the rationale for this delay, if I may understand? Because it was for the TBM, right?

No. Well, it wasn't for the TBM, but for the upcoming new projects that we were expecting that to -- we had made an enabling resolution. And immediately, we don't have any plans to do so.

So right now, there is no plan for fund raise in the next year. Is that right?

Yes, not means immediately. So though we have kept an enabling resolution approved, we may also get it approved for the next financial year just to be on the readiness in case we require to raise it. But as -- because as I mentioned that we are expecting some good order inflows to happen and when it happens and if the financial requirements are there, then we will take a call whether to really go for it or just forget it.

Will it be a rights issue or a preferential issue? What would it be most likely?

It will be a normal QIP like we have done before, but we don't intent immediately anything to do so.

Okay. And you had mentioned since it's -- there's been a delay in a lot of these projects. I just want to know, is there any penalties that J. Kumar could face or no penalties?

Zero penalties because the delays are not from our end, but it is from the client side.

Okay. Okay. And just 2, 3 follow-up questions. I've been reading up on the huge projects happening in South India from Trivandrum to Coimbatore, it's an extension phase, so is J. Kumar looking at participating in those projects too?

So totally when the project come, Mr. Thomas, it's on the project-to-project basis, the nature of work, the geography where it is and the value of the job based on which we take these shots. So I would say it's too early for me to comment on something which has not been published yet. But yes, we are open to bid for any sizable project, which comes under our forte of specialization. So we'll be surely looking at all projects pan-India.

Okay. And just for my understanding, when I've been reading up about TBMs, there's been some discussion that because these TBMs have become -- they are so huge after you finish a job, some part of it is probably left behind and you will have to purchase a new one. Is that correct, is my understanding correct? Or is it the entire TBM is reusable for another project?

So well, it depends upon the type of TBM that is being used, like if it is a metro TBM, the metro TBMs are standardized diameters, which are used for -- throughout the country, the diameter remains same and also internationally. So many times, these Indian TBMs are bought by people abroad and taken up for the cross-border projects. So as far as -- and when we talk of projects like GMLR, those are tailor-made TBMs, which we try to amortize the maximum TBM on that same project and there is nothing which is left behind when you talk of TBM. It is fully recovered.

Fully recovered. And will be reused in another project because that's standardized.

Yes.That's right.

Okay. Okay. And 1 final question. Sir lately, I've been seeing these videos about this Mira Bhayandar flyover, Metro Line 9, we were saying it is a J. Kumar construction, is that correct? Was it J. Kumar project, the Metro Line?

You are very right. It is constructed by J. Kumar, and I'm personally looking after that project. It's under my control. So this project is -- it's something which as people love to make a mockery of every situation. And this project is being constructed as per the requirements of the client. And also, I would like to mention that there is no flaw in the construction that has been done because people -- they have -- people make an issue out of nothing. The flyover, which is constructed right now is being done with a 4-lane -- 2 plus 2, 4 lane and currently, which is getting dropped down through Bhayandar binder side by 1 plus 1 lane. And the construction, which is there, where we see a 90-degree cut is basically an offset for future expansion. But today, before we open the flyover, it will be made in a skew manner by making metal crash barriers which we see on expressways and various flyovers, which will be deployed on that flyer on that offsite location with a suitable length, which is as per the traffic safety norms. So there is nothing which is wrongly constructed. It's a well-planned thing that has been done with future extension keeping in mind. And means for that, MMRDA has also been replying on it. And you can take my word, there is no technical wrong thing that has been done. It is only looking odd because of the future expansion, which has been awaited. And if you don't do it today, extending that bridge would have technical complications. So keeping that in mind, wherever we could make 4-lane, we have made it 4-lane.

Okay. So you made 4-lane and eventually, it will become a 4-lane in the next extension.

That's right. Over the period when the land issues are sorted on the balance area, but to give ease to the traffic it has been made 2-lane has already been blocked, wherever we could construct 4-lane we have done 4-lane and in the balance area 2-lane.

The next question is from Vaibhav Shah from JM Financial.

Sir, other income seems quite high at INR 21 crores in Q3, any one-off in that?

I'm sorry, can you repeat your question, please? .

Other income is at INR 21 crores in the third quarter which is higher than our normal runrate of around INR 9-odd crores to INR 10-odd crores. So any one-off in that number?

No, no, it is because -- see, since we have got INR 22,000 crores of project, we have to give bank guarantees for that, for which we have to keep fixed deposit with the bank for margin. So definitely, when we keep the deposits, we earn interest on that.

Yes, but it doubled on a quarter-on-quarter basis. So is this a normalized number going ahead or it should come down to the INR 10-odd crores, 11-odd crores?

The other income will remain in this range only because the margins will remain fixed with the banks since it is project-specific, so this will be more or less the same.

Okay. And sir, once the -- we start the usage of TBM maybe in Q1 or Q2 and it hits the depreciation so the current quarterly run rate of around INR 40-odd crores to INR 45-odd crores, where can it go on a quarterly basis once the TBM hits the depreciation?

Yes, the depreciation will go up to that extent.

So what is the number It could go up to INR 55 crores around kind of on a quarterly basis.

If you need the exact number, I think, Yash (sic) [ Vaibhav ], we can provide it to you subsequently, Vaibhav, because we need to work out that number exactly, and we can give it to you.

See, the depreciation will always be charged on the cost incurred till the date of operation. So till the time the TBM does not become operational, the cost incurred will get added to that. So the crystallization of figure once it happens, then we can provide you the details.

And the time frame you said for TBM would be -- so it would depreciate over 3 to 4 years?

For the GMLR TBM you're talking of?

Yes, yes, yes.

Yes, that would be 3 to 4 years, yes.

Okay. Okay. And sir, lastly, on tax rate, what would be your annual taxes that we should factor in?

It should around 26.5%.

[Operator Instructions] The next question is from [ Dinesh Karwa from Kirti Creation ].

Sir, [Foreign Language]?

[Foreign Language] 80 lakh share, we have pledged.

[Foreign Language].

[Foreign Language] There is no change in pledging that we have done.

[Foreign Language].

[Foreign Language] Your pledging question is over, right?

[Foreign Language].

[Foreign Language].

So I think you must be referring to GMLR project, for which we are talking about pledge.

[Foreign Language].

[Foreign Language] I'm still saying that there is 0 increase in that. I don't know where [Foreign Language]. So but 100%, there is no increase. Okay, what's your next question, Dineshji?

[Foreign Language].

Dineshji, [Foreign Language] I would like to clarify [Foreign Language] it is an enabling resolution. We don't have any immediate plans to go for QIP recent future [Foreign Language] so it is just enabling resolution, we don't have any immediate plans to reply you in short that we want to go for QIP. So [Foreign Language].

That was the last question in queue. I would now like to hand the conference over to Mr. Nalin Gupta for closing comments.

Nine months FY '26 was a period of consolidation and balanced performance. Q4 FY '26 will be a period of building momentum, scaling up execution and moving ahead with greater speed and focus. We remain fully committed to creating sustainable value for our shareholders, partners and stakeholders. Thank you for your consideration, trust and support. Please feel to reach out to our IR team for any clarifications or feedback. Thank you all.

Thank you very much. On behalf of J. Kumar Infraprojects Limited, that concludes the conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.