KNR Constructions Limited ($532942)

Ladies and gentlemen, good day, and welcome to KNR Constructions Limited Q4 and FY '26 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantee of future performance, and involve risk and uncertainties that are difficult to predict. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. K. Venkatram Rao, General Manager, Finance and Accounts, KNR Constructions Limited. Thank you, and over to you, sir.

Good morning, and thank you for joining us today on the call to discuss our financial results for Q4 and FY 2026. Along with me, I have Mr. K. Jalandhar Reddy, Executive Director; and Strategic Growth Advisors, our Investor Relations advisers. We have uploaded results and the investor presentation on the stock exchanges as well as on our company's website. I hope everyone got an opportunity to go through it. We would like to touch upon a few key company updates and industry events, post which we will question-and-answer session. . Moving to the broader industry landscape, the road infrastructure sector witnessed a relatively [indiscernible] pace during FY '26, particularly on the project awarding front. Over the past 2 years, awarding activities by NHAI in the most demand below the peak level seen earlier, reflecting a more calibrated and education-focused approach across the sector. During FY '26, NHAI awarded 3,100 kilometers of [indiscernible], lower by approximately 22% year-on-year and below the initial target of 7,500 kilometers. The moderation was primarily driven by extended project appraisal and approval time lines, land acquisition-related challenges and increased emphasis on ensuring better project preparedness and restructuring before tendering. The state execution activity on the ground continued to remain healthy. NHAI constructed around 5,300 kilometers of the national highway during the year, which while marginally lower than the projected, but it is [indiscernible] this internal construction target of 5,000 kilometers. This reflects the sector's strong execution capability and continuing progress across ongoing projects despite near-term awarding headwinds. More importantly, the government's long-term commitment towards infrastructure led growth remained very strong. Continuing investment towards expressway, economic corridors, logistic infrastructure and multimodal connectivity are expected to support sustained opportunity for sector over the medium to long term. Also new meaningful opportunities are now opening up across segment such as mining development, irrigation, roof base, metro terminal projects, urban mobility, and rail connectivity. This is creating a broader infrastructure ecosystem and enabling companies to diversify their capabilities, expand into new area of growth and build stronger long-term business models. On the cost front, the industry also witnessed some volatility in the commodity linked input during the year. The ongoing geopolitical tension and conflict in the West Asia led to an increase in crude oil prices, which consequently impacted bitumen prices. However, the impact on the domestic infrastructure sector remains manageable to provide better support to the contractors and improve cash flow visibility, the Ministry of Road Transport and Highway reduced the price adjustment cycle from 3 months to 1 month, enabling faster pass-through of the fluctuation in the construction material and equipment costs. This step has been positively received by the industry and is expected to provide greater stability in the project execution going forward. Assets monetization also continued to witness healthy momentum during FY '26 with NHAI monetizing around INR 28,000 crores through InvIT and COT transaction, largely in line with the government target. This reflects the increasing maturity of the asset recycling model and support continued investment towards future infrastructure development. Looking ahead, the outlook for FY '27 remains constructive. As per industry estimates, the mouth is expected to concept around 9,000 to 9,500 kilometers during the year. While the pace of awarding and construction may remain one more balanced compared to the peak cycle witnessed earlier, the sector continued to benefit from the strong policy support, sustainable public capital expenditure and rising private sector participation across infrastructure segment. Overall, India's infrastructure opportunity set today extend well beyond roads and highways with increasing opportunity across transportation, urban infrastructure, energy, logistics, mining and water sector. The industry is entering a more diversified and sustainable growth rate. Companies with strong execution capability, financial discipline and multi-sector expertise are expected to well position to the capitalization on this opportunity -- long-term opportunities. Now coming to the key updates of the company. The percentage of physical progress as of March 31, 2026 for the HAM project is under: Ramanattukara to Valanchery around 99.4%, Valanchery to Kappirikkad 98.3%, Chittor to Thatchur around 97.4%, Magadi to Somwarpet around 91.3%, Marripudi to Somvarappadu approximately 77.1% and Mysore to Kushalnagara Package IV around 15.5% and Mysore to Kushalnagara Package V approximately 12.2%. As of March 31, 2026, the company has already invested INR 73.24 crores out of INR 52.17 crores revised equity requirement for all LAMs -- the additional equity requirement of INR 27.9 crores to INR 170 crores and INR 47.93 crores for FY '27 and '28, respectively. You can refer to Slide #26 of the investor presentation for details under each HAM project. During the quarter, the company received a letter of award from 2 HAM projects with a combined project value BCC of INR 3,897 crores. The first project was awarded by Tamil Nadu State Highway Authority, Sam for development of full and elevated corridor from to State Highway 49. The bid cost of the project is INR 2,163 crores and has a construction period of 3 years and followed by an operation period of 5 years. Subsequently, the SPV KNR Palani Infra Private Limited has been incorporated and concession agreement has also been -- the second project was awarded by NHI for laning of NH167galeuar in Telangana. The project is valued at INR 1,734 crores and has a construction period of 2 years, followed by an operation period of 15 years. Subsequently, a subsidiary, KNR Manyamkonda Infra Private Limited has been incorporated and concession agreement has also been executed. The tentative equity requirement for HAM project will be around INR 510 crores. Further, company has also received letter of acceptance for 2 EPC projects worth INR 133 crores. One from the Greater Hyderabad Municipal Corporation for construction of 4-lane unidirectional flyover at Rasoolpura in Telangana. The project value is approximately INR 50 crores and scheduled to be completed over 24 months. Second one is from Hyderabad growth corridor for the widening and strengthening of pipeline road from Shankarpally road in Telangana project is around INR 83 crores and has an execution period of 9 months. In respect of monetization proposal, we wish to inform that the company has transferred its all of equity share in one of its subsidiary company that is KNR Palani Infra Private Limited to Indus Infra Trust . The company has invested INR 64.40 crores in the form of equity and sub debt in that SPV. Pursuant to this transaction, the company has received a consideration of INR 2.05 crores from the purchaser. And further, the SPV has also upstream INR 90 crores of the cash surplus to the company through this transaction. The company is expected to close of the project by June '26 and other 2 projects by September '26. Now coming to order book position. As of 31st March 2026, the company total order book stands at INR 8,622 crores. The order book does not include the recently won HAM project. Including the HAM project, the company total order book stands at INR 11,903 crores. This is divided into 49% of the roads project, 14% for irrigation and 7% from pipeline project and 30% for mining projects. Client-wide distribution is 60% of order book is from the third-party client and the balance 39% from the captive HAM project. In third-party order book percentage is also contracted 59%, where is 1% from the central government and balance 1% is from our other private players. Kindly read the Slide #32 of investor presentation as we go. The current order book will be executed over a period of 3 to 3.5 years, excluding the mining -- with the government continuing emphasis on infrastructure development, we expect order activity to be improved over the coming quarter across both center and state government. In line with this, the company is targeting order inflow in the range of approximately INR 8,000 crores to INR 10,000 crores during FY '26, comprising a healthy mix of NHI projects, irrigation projects, mining and other state government infrastructure work. Now let me take through the Q4 FY '26 standalone financial performance first, followed by the consolidated financial highlights. The revenue for the quarter stood at INR 535 crores. EBITDA for Q4 FY '26 stood at INR 28 crores and EBITDA margin at 5.3%. Net profit for the quarter was INR 19 crores. Now coming to the FY '26 highlights. Revenue for FY '26 stand at INR 2,097 crores. EBITDA for FY '26 stood at INR 178 crores and EBITDA margin stood at 8.5% Net profit for FY '26 stood at INR 16 crores. Now coming to Q4 FY '26 consolidated financial performance. The revenue for the quarter stood at INR 696 crores. EBITDA for Q4 FY '26 stood at INR 169 crores and EBITDA margin is 24.3%. Net profit for the quarter was INR 106 crores. Moving on the FY '26 highlights. The revenue for FY '26 stood at INR 2,698 crores. EBITDA for FY '26 stood at INR 711 crores and EBITDA margin FY '26 stood at 26.4%. Net profit for FY '26 stood at INR 473 crores. Now moving on the stand-alone balance sheet. The company continued to maintain a strong balance sheet. The working capital days stood at 78 days compared to 93 days as of March '25. The consolidated debt as of 31st March 2026 stood at INR 2,438 crores as compared to INR 1,847 crores as of 31st March 2025. The net debt to equity on a consolidated basis as of 31st March stands at 0.4x as compared to 0.41 as of 31st March '25. With this, we can open the floor for question and answer. Over to you.

[Operator Instructions] First question is from the line of Hiten Jain from Avendus Spark.

Sir, I wanted to understand how many kilometers were awarded -- you said around 3,000 kilometers by NHAI. In total, how many are awarded in FY '26?

What you wanted, sir?

Hello, is it better now, sir?

Yes, yes, absolutely. Yes.

Sir, I wanted to understand how many kilometers road projects were awarded in FY '26? 3,000 was from NHAI, including North, how many kilometers, sir?

We have that NHAI data. More than that also we'll get it, and we will let you know.

Understood. Okay, sir. What was our order inflow in FY '26, sir?

Yes, [indiscernible]. [Technical Difficulty]

Sir, we lost your audio. Can you hear us?

Sir, we lost the audio. Can I request you to repeat the answer once again?

There is ECR flyover in Chennai, that is around INR 2,150 crores is recently awarded. And apart from that, I think NHAI would [indiscernible] Mahabubnagar one project which is about INR 1,750 crores on an agency. And there are a few fly in GSMC, which was already announced in the market. They are in almost near about INR 1,400 crores to INR 1,500 crores is now awarded. And further, there have been some bids which were submitted. We are also expecting some bids out of that. And again, there is some other bids in Chennai ORR also we are expecting. around INR 800 crores. And there is another mining project is also on the pipeline. Maybe we will be having enough order book for upcoming year, barring which another 2, 3 projects also we are aiming from NHAI and more further from ply projects. So with all that, I think we'll be able to achieve the targets set for order book concern in this year. So definitely, this is going to be a good start for us for next year.

Sir, any guidance on revenue and order inflow for this year, sir, FY '27?

Is quite difficult to say anything because this project is going to be awarded and when it can be taken off certain projects are there, which are EPC nature. They can start in 2, 3 months' time after agreement. But certain projects are HAM model type and all they take another 6, 7 months. Further, this is a different situation we are heading, sir. First time, we are unable to say what we are going to do this year. That's the major thing because we are mainly depending on the works which are coming up. It's not that every time we used to be having order book in pipe order book under execution and sell is something we used to have. But this time, it is a quite difficult situation. But however, we'll try to touch around 2,000 plus this thing which that we'll face. Further anything added will also boost the things. gearing up for FY '27 kind of thing.

Understood. Just a last question on my side. I see working capital has increased. debtor days have been higher. Which pocket of customers are you seeing a delay in payments? Are you seeing any particular states delaying payments?

Actually, payment is there because you know that we have one project in Kal Package 4, where almost INR 670 crores of debtors is pending. So other than this, every state, whether NHAI or other state, they are not facing any issue. So debtor days has been -- actually compared to March '25, it is reduced. But definitely, Package 4 debtors, there is no movement in that actually. So basically, from government of Telangana irrigation project, where we have struck with [indiscernible].

Next question is from the line of Sandeep Agarwal from Naredi Investments.

Sir, a few questions. So just regarding the Telangana, sir, any time line or any update regarding this?

Sir, actually, see, the thing is Telangana concerned, we are confident of getting the payments. But recent discussions says that loans issue will be for sure severely by the Finance Minister. But KNR and Mega Engineering had an extensive meeting with Finance Minister last month, not last week, but last week. They said another 2 months within 1, 2 months, we'll be solving. I think we are hearing the same from the situation. But I think this time Finance Minister has reviewed, so we are hoping that things could be a better shape.

Okay. Okay, sir. So next one...

I request my investors are people that our persuasion has never stopped, and we have been under severe persuasion to get this. I think more or less, we should get here in this -- it's not in this quarter. But next quarter, we shall be able to get that what we have.

Okay. Sir, just next one is, sir, regarding our order pipeline for the financial year '27, what is our expectation other than this INR 3,600 crores initially we get?

I think another INR 4,000 crores is the pipeline, we can say we are about -- see, again, it is all -- unless we get issued with L, we cannot say it is pipeline kind of thing only what I'm talking about. Apart from that, further, we are also pursuing some bids. So I think another INR 4,000 crores, INR 5,000 crores also we are focusing to get orders because Hyderabad RRR is also gearing to come out and there are 6 highways which are around Hyderabad are likely to come up. Apart from that, we are also trying to gear up something in railways. We are also gearing up in mining. We are also gearing up in fly project as well we will also look at good projects from the solar. So with all that, I think we'll be able to achieve the target which we set forth last year, but they are not getting filled entirely last year, but we will try to do in this coming 1, 2 quarters.

Okay. Sir, last one, just last one. Sir, any major claims pending to be received in current year and next year? Major claims...

They have been paid off. There's nothing actually whatever that was there, they have been received in the last quarter this quarter itself the last announcement. Later, I think we have hardly anything. Anything small, small could be there, but I think it is a quite difficult task right now with the situation which we are heading in.

Next question is from the line of Shravan Shah from Dolat Capital.

Just to understand in more detail in terms of the -- particularly on the revenue front. So I will try to break it up into the segment-wise, so it would be easy for you. In terms of FY '27, specifically from now onwards, if we include the 2 new HAM projects, our current order book is INR 11,900-odd crores. So let's say, in that, how each segment-wise one can look at in FY '27, let's say, pipeline, we have INR 832 crores, irrigation INR 1,667 crores. Obviously, the unbilled will minus INR 700 crores, INR 800-odd crores. So maybe INR 700 crores, INR 800 crores is executable. Mining is INR 3,500-odd crores and HAM is INR 1,400-odd crores and the 2 new HAM INR 3,200 crores in terms of the EPC. So each segment-wise, how one can look at this? And given, let's say, if we do, as you are saying, INR 2,000 crores minimum, so I know we still will be able to do close to INR 2,400 crores, INR 500-odd crores. So INR 11,900 crores and less this, so close to INR 9,000 crores and plus another we will get INR 0 crores, INR 10,000 crores. So kind of INR 180 crores, INR 19,000 crore book will be there at the end of FY '27. So in that sense, how one can look at FY '28? Will it be kind of at least INR 4,500 crores kind of a revenue that one should be looking at?

The one thing [indiscernible] so turnover can go, but I don't think bottom line will be to that tune, which we were giving you at the earlier stage, because now that market is [indiscernible]. So however, we will try to keep the better way. And we are also thinking in a different pattern, different methodology, which we can [indiscernible] and do some [indiscernible] job. So by which if we gain anything that's an additional thing. But however, the market is at very low levels. I think EBITDA, if you talk about EBITDA, I'm [indiscernible] to say that it is around 10 kind of level we are getting. If we are able to do something better, I think it is always better, because actually, sir, all the orders on hand were executed because the big gap that has come in NHAI, for 2 years there has been very less job inflow that has caused us to bid in such a way. that's the major issue. And second [indiscernible] the staff is being maintained in the same level and the turnover has come down. So [indiscernible] we are facing that. So everything we put into the shape and everything is coming into shape will improve. That's what we are thinking.

Got it. So you are saying that the execution, the turnover in the next FY '28 obviously can be ramped up significantly if we win the order inflow. But on the margin front, we are seeing that 1 is the one that one can look at -- but there also given the HAM projects that recently we have won there previously, we used to have 18%, 20% kind of margin. So at least HAM will still will be contributing a decent margin, but the other segments, as you are saying would be having a kind of a 10% margin. That's the way one can look at?

Actually, [indiscernible] Mahabubnagar-Gudebellur project [indiscernible] 11, 12 level EBITDA thing. So going forward, we'll have to see that, sir. Again, I think Chennai is a little bit comfortable we can we'll have to see how it goes because based on the amount of [indiscernible] know that calculation to tell you situation. is a critical thing to answer. Every time I tell you this happen. however, I think going forward after winning a few more orders, I can clearly tell you what...

For mining the existing one in terms of the CapEx and the revenue, how we can look at for this year or FY '27 and next year, the existing INR 3,552 crores mining order that we have. So in terms of revenue and...

Actually concerned that the main hurdle of getting that [indiscernible] has come up for the forest is about 850 hectares land 50% is given for I think the clearance has come. And now the village is to happen once that comes out, then we will be able to tell you exactly the time that once [indiscernible] questions raised by the public villages about the rehabilitation issues. So I think for the next meeting, they will be prepared to answer those questions because they were needing certain [indiscernible] anything. So I think they are getting prepared for that and then go for the again. So this time, it could be a successful story. I think less will take 7 to 8 months to start...

Okay. And sir, lastly, in terms of how many value of projects and also if you can specify NHAI the state level that we have already submitted bids and where the outcome is yet to come?

So actually that submission happened in many fronts. On mining project, which we have submitted around INR 300 crores we submitted for that. And I think apart from that, there are 2 projects around INR 850 crores. So this is about INR 4,000 in the pipeline is there. Apart from that, I think submitted but not open about INR has come up around INR 140 crores has come in the last year itself. So with all that, I think we have a good pipeline and we are also a few bids which we are going to submit, which we have submitted I think we are waiting for NHAI [indiscernible].

Next question is from the line of from Balasubramanian from Arihant Capital.

[indiscernible].

CapEx in the mining parent -- so whatever CapEx requirement will come that is going to that money. And the fact that you know that already our monetization proposal is going on, we have the internal accruals, and we can definitely go for a higher purchase loan also. So we are working out actually where we have to get -- how we have to fund that CapEx. So that is one thing. And in respect of mining project, as sir already explained that it will take further 7 to 8 months to start. We can say maybe from Q4 actually that mining may give some revenues in this year [indiscernible].

INR 190...

In rail, we have bid around INR 70 crores to INR 80 crores in the rail sector are making -- so definitely the margin level is as explain, 10% we are seeing overall margin level with the composition of our HAM project and [indiscernible] we got actually in the GMC area and whatever because there is not much irrigation project is there because generally, irrigation projects used to give actually above around 18% to 20% of EBITDA. So that's why our overall EBITDA was good, but now irrigation projects are not much in our order book. So definitely, the execution aspect definitely we will try to achieve that. But EBITDA front, definitely, there will be -- we have to see some -- we have to keep our growth, and we are selling at around 10% to 11% EBITDA maintain in the future.

Next question is from the line of from Taha Ansari from Taha Capital Management.

Sir, just now you said that by quarter 4 of this financial year, our mining project can get operational. So if this goes on, so what can we expect going in FY '28? What revenues our mining project for us going.

You know that in this mining project, a lot of it is open mining actually. So we have to do a lot of first and after that -- and our billing is based on how much coal we extracted -- the project actually around INR 3,500 crores for the initial year, our turnover will be somewhere around INR 300 crores to INR 400 crores per annum. If it is fully operational, then it will peak up to, you can say, INR 1,000 crores turnover in the fifth year. So initially, we are expecting somewhere around INR 300 crores to INR 350 crores of the turnover is going to -- if it is going to be operational.

Okay. And this is for FY '28, INR 350 crores to INR 400 crores in mining. Okay. And the second one is, sir, by the end of FY '26, we around INR 3,600-odd crores. So what appointment date for them we can expect as well as is there any revenue guidance you can give going ahead for FY '27 and '28 from these 2 particular projects which we got in the very last [indiscernible].

As far as the Chennai project is concerned, actually, we are almost finalized. We are there in the process of doing the financial closure. And we expect that we may complete the financial closure in next -- by next -- this month and you can say. So after that actually based on the land is also available. So we can target actually appoint it maybe in the next 2 months actually. And that project is going to start contributing in somewhere in Q3, Q4 actually. And as far as our Telangana project is concerned, we have September and maybe in Q4 actually, Telangana project is going to [indiscernible].

The [indiscernible] going and going on to these projects and we are more focused on [indiscernible].

Actually, as we already told you because package basically, where the concern is there for the receivable of the debt actually. So definitely, we are following rigorously with the government actually. And ultimately, as you know that this water supply to the Hyderabad city right now, the scarcity is there. So definitely, we had actually meeting with irrigation officials. So once our project is completed, then only that water can come to the Hyderabad city. So this is also one of the, you can say, priority project the government is to -- because government has already awarded actually project from pipeline from our project to the Hyderabad city. Once the water is available in that reservoir, then only the water is going to come. That's why we are discussing with them actually. We are hoping that maybe 2 to 3 months actually, we should be able to get the money. So definitely, our project we will get money actually, what we want.

[Operator Instructions] Next question is from the line of Vasudev from Nuvama Wealth.

Sir, in the irrigation and the pipeline projects, how much have we done the execution in FY '26? And how much are we planning for FY '27?

Percent in FY '26, we did around 17% actually in irrigation project -- and out of that pipeline is it is around 14% in the pipe...

Could you quantify in value terms, like how much we did in '26 and our plan for '27?

Pipeline we did actually around INR 270 crores work actually in FY '26. And as far as irrigation, we did around INR 340 crores of work in FY '26. And next year, definitely for we are trying to do around INR 350 crores to INR 400 crores in FY '26 for our pipeline. And irrigation work actually most of the work is completed. So package 4 is almost -- it is everything in almost turnover will come from package there is some land issue is there. So the government has to pay this [indiscernible] land. If government is definitely we can execute around maybe around INR 200 crores to INR 250 crores in FY '27.

Okay. And sir, just some bookkeeping questions. What is the CapEx we did in Q4 and our target for FY '27, our revenue split for the quarter across segments? And how much is the balance outstanding from Telangana government?

As far as Telangana government outstanding is almost INR 1,400 crores INR 1,450 crores is there, including our... [Technical Difficulty]

Sorry, we lost your audio.

Can you hear me?

Yes.

Yes, this is INR 1,450 crores actually receivables, including unbilled actually there pending from the government of Telangana. As far as CapEx requirement is there, so for FY '27 because now this mining project is going to -- whatever the existing CapEx is sufficient actually for our existing order book. But once the mining projects and because we have projects in this EC where this is completely elevated corridor, there are some CapEx which will come. So this year, actually, we are targeting somewhere around INR 200 crores to INR 250 crores of CapEx based on when this mining project is going to start actually.

Next question is from the line of Vaibhav Shah from JM Financial.

[indiscernible] mentioned that for the 2 new HAM in 3Q and 4Q. So what kind of execution are we targeting in FY '28 from the HAM?

We have to complete that I think to complete by FY '28.

So you can say around INR 1,000 crores to INR 1,200 crores from in FY '28.

From both HAMs combined?

Both combined, yes.

Okay. And sir, what would be our unbilled portion in the irrigation order backlog?

Unbilled is around INR 800 crores.

So that revenue is already recognized in the order book?

Yes, yes, correct.

Okay. And sir lastly, what was our revenue from irrigation in Q4?

In Q4, irrigation revenue is around 8%.

8% for Q4?

For Q4.

Okay. And sir, lastly, you mentioned that margins could be around 10%, 11% for FY '27. Do you expect it to remain similar in '28 as well despite going by a sizable portion in FY '28 given the very strong order book right now, which will be under execution for the entire FY '28?

Actually, as sir explained because whatever the existing order books are there. So we have taken because you know that last almost 3 years, we are not getting much order. So definitely, we have gone a little bit aggressively and we have got this project. So that's why previously the NAM project, we are getting around 15% to 16% of EBITDA and irrigation is more than around 20%. But now this is not actually right now, we can -- we are definitely going aggressively and that's why 13% [indiscernible] we expect around 10% to 11% of EBITDA.

Okay. Sir, lastly, what revenue are we targeting for FY '28?

Our target is because this year, we did INR 2,000 crores and next year, we will do somewhere around INR 2,000 plus, maybe INR 2,200 crores, INR 2,0res.finitely around INR 3,000 plus actually we are targeting in FY '28...

Next question is from the line of Bhavin Modi from Anand Rathi.

Can you help me what is the unbilled revenue pending from the road order book and from the pipeline?

Actually, almost irrigation project is almost INR 800 crores -- and balance, you can say around INR 500 crores in the road.

Understood. And sir, second, with respect to the -- in the last call, we mentioned that we are forming a team for the railway segment. And we also saw there was a bidding done by the [indiscernible] in the railway. So how do you see railway vis-a-vis the road because all the other players are seeing there are not such good margins in the railway segment. So how are you looking at or what different we are trying.

As of the little INR 80 crores, so there are I don't know what we can't say [indiscernible]. But I think the trend is very [indiscernible].

Sir, last thing, any ongoing talks for the back-to-back EPC arrangement either in railways or roads anything which is going on?

So back-to-back discussion was there on that Maharashtra project, but there also they were not offering [indiscernible]. We have quoted our price to them. If they accept, then definitely we will do at that price.

Next question is from the line of Faisal Hawa from H.G. Hawa & Company.

Sir, over the years, we have accumulated a lot of land in the sense for mining, et cetera. And now because of solar projects in rural areas, et cetera, there is a lot of value for these lands. So can you just give an estimate of what this land bank that we have is worth today at current prices? That is one. Second, sir, there are a lot of data center projects which are coming on in Andhra Pradesh, and we are kind of quite strong in that region. So are we looking at executing these projects because these are also rather complex projects, and we can have some private sector involvement so that our payments matters are also eased out? And third is, sir, what are our plans in solar? And how do we plan to really get into the sector in a big way without compromising on margins?

[indiscernible] concerned, first I'll talk about the land which we have on the ground. See, actually, sir, these lands were accumulated only for the quarries and all other. See, there is every highway which we have done to 4 lanes. I think ne coming for 6 lane or for the greenfield. So these -- most of the quarries are a little bit useful for those projects which are coming up because later if you want to buy the not at an unacquirable cost. Today, even the land which I want to purchase on the wise, I cannot purchase because the price is so much. Almost they have gone by 3 to 4x about. So with this, sir, actually, the little bit comfortness is there for the company assets kind of buildup. But actually, it's a right idea that going solar into these projects, yes, definitely, sir, we are examining the case. And as and when the things roll out like nearby areas if they call for tenders, NTPC tie-ups, we are able to make up. All that we are tying up. Definitely we would like to develop these lands with solar or for the quarries. So we want them to be under utilization in coming 4, 5 years. That is the target which we are working on it, sir. Second, sir, which you have asked about data center, we are now thinking of data center in Hyderabad near about smart city area. There have been certain friends would like to join the thing and they want to make the business successful. So the model has come up like AI plus data center development. So these sort of thing is going to be a little bit EBITDA making and then going forward, it is lucrative for the public also. So definitely, sir, we are now under discussion stage. I think one the MOU also model has been circulated between us and the partners who want to join the team. So this is a little bit at this stage right now. So going forward, the plan for the company is that to go very big in the data center, not like doing data center and restricting ourselves because backup data centers are also required and then multiple data center requirement is there in India because 2027 onwards, the data should be -- Indian data should be Indian. So in India, -- so the advantage is going to boost the business. That is what everybody is thinking, and we are also a positive thought we are giving towards that.

But we are definitely very well equipped to do data center EPC work?

Yes, sir. We will do EPC. EPC no doubt will be done by KNR. The thing is, the main thing allotment of land from the government where the power -- 100% power supply assurance is there. That is only the important point with water supply. This is the main thing, sir.

And sir, what are our long-term plans in solar EPC? I believe that the plain vanilla solar EPC is not attracting us much because of the low margins. So is there some other long-term plans that we have?

Solar EPC kind of thing, sir. What is happening here, actually if I were to answer that question. solar EPC in a small scale, it is burst. We cannot even touch. But the larger scale like 1,000 megawatts and all that, they are having some sensible touch. So definitely, sir, there only we want to hit not below this. Above 500 are all happening in a good way challenging point in this is acquiring the land for those things. In certain contracts, land is being offered by the client itself. There, we have no issues. But certain areas, we have to go with our own land or the land leasing method which we have to go. So those -- we are now exploring sir. Maharashtra area, we are exploring opportunities. And Karnataka also recently, we have gone one land position. All that is happening, sir, slowly.

Next question is from the line of Durgesh Shukla from InCred Capital.

I just have one question. In the results on the stand-alone part on point number report, it mentioned that the company has recognized claims for an amount of INR 16,297 lakhs from client on settlement. And also you have mentioned about cost and everything. So just wanted to know this revenue, this part of recognized claim is already included in the revenue or not?

It is included because what has happened, INR 162 crores of the claims we have recognized and we have assessed some of the projects where our cost has changed. So you can consider that around actually net of INR 162 crores minus INR 130 crores, around INR 27 crores has been in the income from operation.

Okay. So basically, this INR 1,297 crores and INR 13,552 crores is both included in revenue and cost in the given statement that's the thing, right, sir?

Yes, yes. It is included in revenue from operations. So net has been included, what you can say. That has been included.

Next question is from the line of Vasudev from Nuvama Wealth Management.

So sir, we're targeting INR 8,000 crores to INR 10,000 crores of order inflows for next year. So for this, what kind of bid pipeline, if you can just quantify that, that we are looking at?

As you told that around INR 4,000 crores the pipeline is there. That is basically some of the GMC project and some of the mining projects are there. And we are targeting to actually bid for some of the NHAI projects in the Northeast part actually NHAI projects are coming in the HAM model. So that's INR 8,000 crores to INR 10,000 crores is a mix of all these things, Mining and roads actually.

Okay. Got it, sir. And you said that irrigation is about 8% of the total revenue for this quarter. So if you can give a breakdown for remaining segments as well, like road EPC, HAM and such?

Yes, yes. HAM is around 42% for this quarter. And road EPC is 3% to is around 17%.

Okay. Sure. And lastly, sir, what is the CapEx that we did in Q4?

We did actually almost not much actually. Total year, we did around INR 4 crores of CapEx.

Next question is from the line of Akshat, an individual investor.

So only one question from my side is that give me a second. Are there any major delays or execution challenges in the current projects? If yes, then what steps are being taken to improve execution and time line in financial year '27?

Delays in I think [indiscernible] Kushalnagara, there have been certain land problems were there because of that service road they wanted the public. it's a greenfield. Actually, the lands are divided into 2 parts, rather access to the village and the lands have been cut by the highway. So they wanted certain service roads to be provided and access to the village to be provided. So further, they were fighting and all these days, they stopped it. NHAI could not conclude that. But later recently within, I think, 2 weeks back, they have given the police protection to go ahead with the work. So now works are restored. I think the work is in full swing by today. So with all that, I think those projects time line is going to be a little bit shifted. But however, we will try to procure the provisional completion on time, but the final completion may differ with the final completion date. That's what we are expecting because more than 50% of the land was under problem on both the projects, 2 projects, it is like. And rest, I think most of them online, Mahabubnagar, what I heard recently, we met the Project Director, he was very confident of giving land within 5 months of time. He would give entire land to us to go ahead.

[Operator Instructions] As there are no further questions, I would now like to hand the conference over to the management for closing comments.

Yes. Thank you. Thank you all for joining us on this call. Please reach out to our Investor Relations Consultant, Strategic Growth Advisors or us directly should you have any further queries. We can now close the call. Thank you.

Thank you very much. On behalf of KNR Constructions Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.