Markolines Pavement Technologies Limited ($543364)

Good afternoon, ladies and gentlemen, and welcome to the earnings conference call for Q4 and FY '26 for Markolines Pavement Technologies Limited. Today on the call from the management team, we have with us Mr. Vijay Oswal, Founder and Chief Financial Officer. Mr. Vijay Oswal has over 3 decades of experience across infrastructure, finance, manufacturing and international business. He has been one of the guiding forces behind Markolines' growth through a sharp business acumen and strategic planning. Also joining us today is Mr. Rakesh Verma, Finance Head. As a disclaimer, I would like to inform all the participants that this call may contain forward-looking statements, which may involve risks and uncertainties. [Operator Instructions] Please note that this conference is being recorded. I would now like to request Mr. Vijay Oswal, Founder and Chief Financial Officer, to run us through the presentation for the quarter and full year ended 31st March 2026 and the growth plan and vision for the upcoming year. Over to you, sir.

Thank you, Michelle. Good afternoon, guys. Thank you very much for being here on our earnings call to listen to us and to know more about what we do. Here we go. So Markolines, we are here happy to present you we as Markolines as India's Road Doctor, wherein we've been building better roads through the life cycle maintenances. And I'm happy to take you through the Q4 presentation as well as the FY '25, '26. Next. So just to give you all -- those who are listening for the first time, to give you a company overview, the company's full name is Markolines Pavement Technologies Limited. We were founded in 2002 and having our headquarter at Navi Mumbai. Mr. Sanjay Patil, who is our Chairman and Managing Director; and myself, we both operate the company on a daily basis. We are listed on the NSE as well as BSE main board. Total employee strength is about 322 with a market cap of about INR 350 crores. As far as our work goes, we are into the highway operation and maintenances wherein we have done a major maintenance of more than 5,500 lane kilometers. We have exclusive experiences of 197 kilometers of road recycling that we call a CIPR. As of 31st March, we had a huge order book -- unexecuted order book of INR 600 crores, and we operate pan-India. Next. So just a quick recap of the financials. As far as FY '26 has gone, we have given a good growth, though because of the West Asia crisis, our performance was a little bit, but we could manage to give you a better result. So as far as revenues are concerned, we have grown from INR 307 crores to INR 350 crores -- approximately INR 348.49 crores. On a profitability EBITDA, we have given an EBITDA of INR 48.54 crores, which is about more over last year. And as far as PAT is concerned, we have given a PAT of about INR 26.23 crores, which is approximately 15% more over the last year. And this has definitely given growth in the EPS from INR 10.16 to INR 11.90, which is a 17% growth over last year. Next. So these are the profit and loss statements for which I have taken you through the summary and a graphical presentation. Now if I have to just tell you about the growth over the last few years, as far as revenue is concerned, we are growing at a 17% CAGR. And at EBITDA, we are growing at a 21% CAGR. On a PAT level if we look at, we have been growing at 27% CAGR over the last 5 years, right from FY '22 to FY '26. Next. So as far as this final quarter goes, first 3 quarters have already been published. As usual, we have done the maximum turnover in particularly the Q4. Q4 has always been giving us the highest volume in terms of revenue as well as the profitability, which adds to our balance sheet. So in Q4, we have done a turnover of about INR 105 crores of revenue and giving a PAT margin of about 10.81%, which is generally higher in the Q4 and EBITDA of about 18%, which is definitely, compared to the last year's Q3, we have grown about 13% quarter-on-quarter. And if I look at year-on-year, then it is also a similar kind of growth. Next. So these are the balance sheet figures reflecting from our P&L consolidated of the financial year '25-'26. There are a lot of details available here. You can refer -- this presentation is uploaded on the website, and you all can refer to all the details on our official website as well as the BSE or NSE. So this shows an overall balance sheet wherein our overall -- the company's equities and liabilities -- equities, which we consider is about INR 202 crores and liabilities of about -- short-term liabilities, if I -- one second, let me just -- yes, so liabilities of about total INR 126 crores. So these are the things. And as far as the assets are concerned, we have an asset block of about close to INR 30 crores that is into the capital investment or the equipments. We own about 3 pavers, 3 plants and a few other machinery and other details, which are available on the website. Next. So now just to take you through our business, what it is. Now India's road story, there is a strategic shift from where we were and where we are heading. The last decade was into the rapid expansions and then strong government support, growth in new greenfield highways. And then as this network is maturing, we will have the next decade where we will have a requirement to rehabilitate and maintain this. So the -- because of the privatization focus on the life cycle maintenance, optimization is very high. And this definitely forced us into a very advantageous position because we are already into the business where we are into the life cycle extension. We are already technology-led and driven. We do a lot of things which are into the technological maintenance we have done and introduced so many things for the first time in Indian road history such as microsurfacing with plastic, then the CIPR. Now if I to look at what is it that we are heading through? So maintenance is needed regularly because of the wear and tear nature of the roads. So the growing road network is definitely driving a higher O&M demand and institutional asset owners, because there are a lot of privatization which has happened, their focus is on to increasing the life cycle performance. Now there is a structural tailwind also to entire -- this industry because of the increasing asset base, growing private institutional and their contribution or percentage holding in terms of the road network and rising adoption of advanced maintenance technologies. So the Markolines' advantage is basically we have specialized maintenance capabilities. Then we are already providing the integrated service offerings. We have a proven track record with a strong relationship with every client, every [Technical Difficulty] international fund [Technical Difficulty] the market is our -- and our client list. And basically, we have the established credentials and credibility into the market. So this is where the Markolines is positioned and [Technical Difficulty]. Go next. So now what is -- there lies is the next big opportunity. Now as I have already said that maintenance is mandatory because of the wear and tear nature. Every 5 to 7 years, the highway has to undergo an overall maintenance, which we call as major maintenances. Up till now, we have been building the roads. Now they are maturing, coming for the maintenances. And if we compare ourselves with the global scenario, on an average, our maintenance as of now is to the tune of 15% of the road construction cost, wherein the -- if we compare this to the global scenario, which is 40% of the cost. And this is where we are also with the all private institutions, funds already owning the assets, then the public demand. We are also moving slowly towards more preservation and prevention of the road quality, maintaining them to the optimal level wherein we get a very good riding quality. Now this is where we are. And as it is, India has now -- up till my last presentation, I used to say we are the second largest network. But today, we are the #1 highway network in the world with about 600 -- 6.7 million kilometer road length. And obviously, over the last few years, there has been a huge boost in the infrastructure segment. We used to build 20 kilometers per day road in 2014 when Modi regime started. And now we are building about 35 kilometers per day. And all this newly built road will come for the maintenance subsequently as it matures. Next. So recently, you'll must have seen that there was a news wherein the sovereign and international funds have been allowed to participate in PPP highway projects. Now what does this mean? Basically until now, the funds or the international players were already there, but they were not eligible to participate in the road construction. Now recently, government has allowed them to participate into the -- at a construction phase also. Earlier, they used to take over the project only once it was completed and commissioned the thing. Because of this, definitely, we will have more fund availability for growth. And obviously, their outlook towards the road construction as well as maintenance is that how they can have a larger life cycle with the good quality. And with this, the potential for us is also growing and definitely within international players coming in, the sophisticated and O&M partners or the trusted O&M partners will be the need of the time wherein we as Markolines, leaders in this market, the only listed company, are at a definitely advantageous position. Next. So now we are happy to present ourselves as an India's road doctor because that is what we have been doing over the years. We are the pioneers in various technologies, and now we are happy to say that we are leaders too. What we typically adopt the methodology is we diagnose, we generally do not just go by the BOQs, but this is a regular practice for us wherein we provide the comprehensive solutions where we diagnose the roads, understand the customer's problem, devise a tailor-made solution which is future-proof and deliver it to the client. That is where we have made our credentials and credibility into the market because today, we are the leaders in highway O&M. We are the only company and all the funds who have come to India, we are their preferred partner into the highway O&M. Now we are expertise into specialized maintenances. We are already the technology-driven, a lot of things we have brought into India, trusted by the institutions with a pan-India presence. Next. As far as our business vertical goes, we have divided our business lines into 3 verticals. One is highway maintenance, wherein we do the preventive maintenance. Then the major maintenance, preventive maintenance generally to increase the life cycle. Major maintenance is something which is mandatory by law. Because of the wear and tear nature, you need to overhaul the complete road length every 5 to 7 years. And of course, with the new concrete roads coming in, we also do the rigid pavement maintenances. Then under specialized maintenances, as I have said, we do microsurfacing, Cold In-Place Recycling. Microsurfacing for a layman's language is basically a lamination of road by wherein the water seepage is avoided and the life of the road is increased. And CIPR is a technology wherein it is the old bad road is recycled and relaid by a train of equipment and completely new road is laid once the train of equipment passes. Then a few years back, we have also started with the specialized construction that is we started with soil stabilization and FDR. Then subsequently, we have entered into the tunneling and bridges. And also now we are developing into the other infrastructures like schools and sports infrastructure development we have got into. Next. Now on the corporate side, we have recently announced and already completed the filing with the exchange for the merger of Markolines Pavement and Markolines Infra. Now Markolines Infra is basically providing the complete suite of highway operations, wherein Markolines Infra, we operate about 60 work orders coming out of about 30 projects that also includes managing the 28 toll projects. Now basically, integrated strength, what all will offer it, basically, then we will be the only company providing the complete spectrum of services across the O&M, the only highway O&M platform. Then obviously, because of the merger, we will have the expanded operational and executional capacities, better bidding eligibility because of the size, consolidation and the data -- ready data available to us by virtue of operation of the highways. This will also give us the revenue scale up because today, we are doing INR 350 crores. But I have to tell you just both companies put together, we are today INR 500 crores-- if merged, we would be INR 500-plus crores. And this will also enhance the operational synergies and the efficiencies. Now as far as growth trajectory is concerned, we have already said that we are on the path to become a INR 1,000 crore company very soon. And to support that, as of today, when we are talking because of our growing credentials, now we are eligible for the higher bid capacity. We on our own now are eligible to bid up to the INR 500 crores of project. And because of that, we are now working on a lot of major projects wherein we could be part of the specialized construction or the maintenance project. And because of that, we today have an active pipeline of about INR 2,000-plus crores of the book. Now as far as [indiscernible] is concerned, I have already taken you through that we have done INR 350 crores in pavement and INR 150 crores in infra. And we are present across India, and this merger will definitely help us in further consolidating our performance. Next. So now as far as the management is concerned, now how do we look at all this business in terms of actual operations, mergers and everything. Now basically, this will also give us our -- on the financial side, if I have to tell you, the balance sheet remains very disciplined and prudent in capital allocation. Despite of, as I said, economic disturbances, the business continues and operates in a very steady format because we took really, what you say, the preventive or the care wherein we could ensure the results and not having much of an effect on to the our bottom lines. Then business mix also -- because of the merger, this will give us a very balanced business mix, wherein MIL will further strengthen our cash flows because that is the business wherein the monthly revenues and regular assured business is coming in. And as Markolines, we also have the enough or the adequate fund-based as well as non-fund-based limits available, wherein giving us more headroom for bidding for the higher-value projects. As I said, as of now, we have close to INR 600 crores of an unexecuted order book with a INR 2,000 crores of a pipeline. Now as far as on the business side, the number of highway assets are really increasing. Government has also launched various InvITs and similar programs and has been receiving very strong and encouraging success. Globally, infrastructure asset monetization has crossed the trillions of dollars, and we are seeing and following the same trend. Probably approximately -- as of today, we are close to 30% privatization and the government is looking at more and more monetization out of this by selling the assets either to the international funds or putting them into the InvITs. And definitely, this will also open up long-term opportunities for us as Markolines in the O&M business in a major way. Now as far as -- I have already said merger benefits, MPTL, how -- basically, it will definitely enable MPTL to offer the seamless life cycle services across the maintenance and operations also. Cost saving and better financial management, obviously, because of the operational efficiencies and cost optimization, we will have a definitely stronger financial management practices. And of course, what put together will give us a more stronger balance sheet. Next. Now with a pan-India presence, what is it that we have different than our competition? One, we are basically going to be an integrated highways life cycle platform, providing the complete end-to-end services to all the highway asset owners. We have a very strong track record, having been there into the market for last 23 years now, proven credentials, long-term client relationships with a pan-India presence. You can see our presence across India in terms of maintenances. And as I said, how we differentiate in terms of competitive advantage is basically we are not the people who just provide 1 or 2 services. We are the only company providing the complete array of services. And secondly, our approach, as I said, is always like a doctor wherein we would understand clients' problem, give them a comprehensive solution -- may or may not be of their thought process, but give a comprehensive solution where their problems will be addressed, giving them a cost-effective and long-term solutions of highway operation and maintenance. Next. So if you see our client list today, all the funds, major asset owners and the government agencies, they are on our client list. The first line will represent most of the InvITs and the international funds. Second is all the government national agencies, corporations and the other private asset owners. Now this is where we are trusted by the complete India's highway ecosystem because we are there for the asset owners to resolve every issue that they would have in terms of operation and maintenance of the highways that are being built in India. Next. So that's all was the this thing from the Markolines side. As we always say that -- our tagline says that we are paving the path towards innovative tomorrow by way of the technology and doing the maintenance, being there for people, giving you the better riding quality. And what we see is a healthy growth visibility and scalable long-term opportunity. This is what we are, and we see a very good opportunity and growth prospects hereafter. So this is all from the Markolines side. Now we can -- Michelle, we can open up for the Q&A session.

[Operator Instructions] The first question is from [ Nishita Jain ] from Sapphire Capital.

So I had a few questions. So one would be on what is the update on the merger? Where are we -- like in FY '27, will both the companies' books be integrated? Are the books going to be integrated? Will the merger process be completed by FY '27? If so, then when -- which quarter can we see the merger happening?

Okay. As far as we are concerned, we have filed our merger applications, and we have submitted and all the queries -- answered to all the queries in the month of March only, a few of them have been answered recently too and there are no further queries as of now pending to be resolved. So if I look at the overall merger scenarios and case studies, then I expect that generally it takes about 6 months. So we are definitely expecting that by FY '27 completion, we should be a merged entity, and we are expecting on an average about 6 months.

Okay. Okay. Understood. So we -- you mentioned that we did INR 150 crores of top line in Markolines Infra in FY '26. What are the EBITDA margins that we see there? And on a consolidated level in FY '27, what margins can we see in the merged company, merged entity?

Okay. So as far as infra is concerned, we are just going through the final audit. So post that, within a week's time, we will be releasing the result also. But as far as infra is concerned, let me just tell you that it is the -- on a profitability percentage, it is definitely higher than the pavement. Purely being into the services, we draw generally approximately 9% to 10% of PAT margins.

Okay. Okay. Understood. And my next question would be on what feedback...

Can you be a little louder?

Yes. So I wanted to know what CapEx are we looking forward to do in FY '27? And if we've done any CapEx in FY '26?

So as far as FY '26 is concerned, we did not do any major CapEx. But generally, our CapEx is defined and driven by the client needs. So we are definitely looking at introducing 1 more or few pavers and maybe 1 HMP, close to about INR 10 crores of CapEx this year.

Okay. Okay. Understood.

And as far as CapEx is concerned, just let me give you one answer that will be helpful that in an industry to keep the optimum efficiency, generally, we have to keep churning our plants on a regular basis. So approximately every 3 to 4 years, we keep churning our -- the equipment.

3 to 4 years, you said?

Yes.

Okay. Okay. Understood. And like you mentioned that we have a strong active order pipeline of INR 2,000 crores, what is our win ratio generally?

So when I'm saying active pipeline, of course, the potential is too high, but when I'm saying active -- we are expecting approximately -- up till now, when we say they are active, we have been winning at least 50% of the orders that we target for.

Okay. So like by the end of FY '27, what can be our closing order book that you anticipate?

See, if you look at our performances, by and large, we have been maintaining -- always maintaining an order book, which is at least sufficient for us 1 to 2 years or averaging 18 months. And we expect the same trend to maintain so that we have a clear visibility with a target to achieve on a higher side. We are expecting that we should have at least INR 1,000 crores order book.

Okay. Okay. Understood. And my last question would be on -- if you could give some kind of guidance on profitability, like EBITDA margin and revenue growth in FY '27, that would be really helpful.

So basically, this is the year, as I said, that now with our specialized construction program on the last phase wherein it has given us a larger eligibility. So as I said, since the project which we are running, tunnel project in Maharashtra is about the completion, which has given us a very good [indiscernible] of INR 500 crores on our own. And because of that, we are working on various things, though as far as -- I cannot talk anything in terms of this thing, but we are expecting a very good growth this year to the tune of at least 30%.

And this has included the Markolines Infra company, right?

Can you just be a little louder?

Yes. Is this 30% on a stand-alone basis or including the Markolines Infra?

Stand-alone basis.

And margin will...

Markolines Infra will give us -- whatever I'm talking now is purely from the MPTL perspective. The Markolines merger of Infra into pavement will definitely give an additional revenue. Because otherwise, also, we are close to about 45% of the MPTL in Infra.

Okay. Understood. And on the margin front, like it's almost 1% down compared to FY '25. So what are the sustainable margins, EBITDA margins that we can see going forward?

So as far as EBITDAs are concerned, generally, being a service provider, what we do is our EBITDAs are subjective because of the clients' need. If my clients ask me to invest in the CapEx [indiscernible] which is transferred, all expenditure is transferred to the clients while when we are working the costing. So EBITDA [indiscernible] vary. As a service provider, what we look at is generally we maintain our bottom line. So our PBTs and PATs, if you look at, they are generally consistent.

Okay. So they'll remain consistent at around 7%. Is that...

Yes. Between 7%...

[Operator Instructions].

So Michelle, I see some text questions there.

[Operator Instructions]. We'll take the text question from [ Pranay Shah ] from [indiscernible] Capital. And the question is, can you give a breakup of order book and how revenue booking happens? When you say your target [ INR 100 crores ] (sic) [ INR 1000 crores ] closing order book by FY '27, does it include Markolines Infra as well as in this, what has led to decline in other expenses in Q4?

So there are too many questions in this. I will take up one by one. Now as far as order breakup is concerned, it is a mix of the order book of the -- see, basically, our business is divided into 2 categories. One is the maintenance and one is the specialized construction. Specialized construction orders, they will be -- volume will be higher, but they will extend over 2 or 3 years, whereas the maintenance orders will be to the tune of INR 40 crores to, let's say, INR 100 crores and they will be all consumed over a period of maximum 18 months. Our general order book is a mix of both. As of now, if I have to tell you, approximately, we will have about 50-50 or 45-55 breakup in terms of maintenance versus construction orders. Now your second question is that does this include Infra? No, I'm not including the Markolines Infra. That will be add-on. As far as Markolines Infra is concerned, generally, they are the recurring type of nature -- in nature because those are the monthly maintenances and services that we provide. Just to give you a ballpark figure, as of now today, we are doing a monthly billing of close to about between INR 14 crores to INR 15 crores per month in Markolines Infra. And as far as your last question is a decline in other expenses. Generally, you have to see -- as I already said that because of the accounting practices, we have to always see other expenses and the material consumption together because if we do an outsourcing, then the expenditure are booked in different head, so they would vary. But if you look at, by and large, our margins would be similar, as I said, that since we work very transparently with our clients, we open our spreadsheets, discuss with them. And generally, we work on a cost-plus basis, and that's what ensures our margin on the bottom line.

We'll take the next question from [ Yash Nisar ], an individual investor. And the question is, what were the key factors that led to the strong 62% Q-o-Q growth in PAT during Q4 FY '26?

Okay. So generally, infrastructure industry is subject to -- basically, it's cyclic in nature because of the monsoon or the, we can say, environmental conditions. So we generally have a slower Q1 than Q2 and our business ramp up in Q3 and Q4. Obviously, that would provide us the higher this thing because the -- at the year-end, because of the financial closures, we also try all the other smaller aspects, billing that everything happens in the month of March, giving us a better visibility in terms of the PAT growth.

[Operator Instructions] We'll take the next question from [ Sirisha Rudrani ], an individual investor. And the question is, the company has indicated an ambition to nearly triple its revenue. By when do you expect to achieve this milestone? And the next question is, out of the current order book of over INR 600 crores, how much revenue is expected to be executed during FY '27?

Now INR 1,000 crore mark, in my earlier communication also, I had said that we are looking at 3 years' time line to achieve that. And we will -- we are -- as I said, with the increasing size eligibility, we will definitely put in our best efforts to prepone that as much as possible. Now as far as the revenue out of INR 600 crores, as I said, our revenue, definitely, it will go with the order book. But out of this order book, the 50% order book is coming from the specialized construction, so which will be spread over a few years. And 50% will be executed in this year. But that does not limit us because the maintenance orders are something which we keep working on an everyday basis. And generally, the major maintenance would start. So the monsoon is the period when the negotiations would happen. The orders will be -- all the BOQs or the inquiries will be [indiscernible] so that they are closed at the end of the monsoon and work begins. So there are a lot more things that we are looking at in terms of maintenance orders.

The next question is from Rahul Singh, an individual investor. And the question is, could you provide more details on the INR 2,000-plus crore project pipeline and the visibility of converting these opportunities into orders? Do you want me to read the next question as well, sir?

No, I will take one by one. I can also see because there are three, four questions. So as far as which -- actually, I have answered this question, but let me just elaborate on this. As I said, our eligibility has increased to INR 500 crores on an individual basis. So as of now, we are working on at least 4 to 5 projects ranging from INR 300 crores to INR 500 crores. That mix gives us a consolidated pipeline of [ INR 200 crores ] (sic) [ INR 2000 crores ] of work that we are looking at. Now as far as visibility of conversion, as I have already said, generally, we always work on the -- when I say active pipelines, we look at, at least 50% conversions, and we are expecting the same by end of this year. Now current revenue contribution from highway maintenances. Highway maintenances current contribution -- one second, let me just pull out the data. So as of March '26, we did about -- the maintenance contributed to the approximately 65% and the specialized construction contributed to the 35%.

Sir, the next question is what is the current revenue contribution from highway maintenance?

I answered that. I read that question and answered.

[Operator Instructions] So we'll take the next audio question from [ Himanshu Mali ], an individual investor.

Sir, which clients onboarded in the last quarter and any in the talks in the near future?

Sorry, sorry?

Means which clients have been onboarded in the last quarter?

Okay. So as I said, generally, the infrastructure industry is -- the assets are owned. It's a very limited fraternity. So can we -- Michelle, can we go to the client list, just 1 or 2 slides back?

Sure, sir.

Next slide. Yes. So Himanshu, if you look at, generally what happens is there are asset owners, which I said that the funds or the sovereign funds, international funds, they are acquiring the assets in India. So one fund will always have the multiple projects. So generally, now today, whatever funds, all the funds which are operating in the country are on our client list. Now their projects might vary from year-to-year, but generally, we keep working on with all the clients because the maintenance comes once in a 5 year -- major maintenance will come once in 5 years. Their order cycles would vary from a year to year. But I can tell you that all the funds which are listed in the first line are the funds or the InvITs. Second line, as I said, that they are the corporations or the government agencies or the authorities, which we are working with and all other domestic or the asset owners spread across, private owners. So this is how -- so as far as acquisition of new clients is concerned, it is not a client per se, but it is generally a project.

And sir, my next question is like what's your shareholding structure in Markolines Infra? And what will be the shareholding structure after the merger, your shareholding?

We have similar structure wherein the -- in the Markolines Infra also like pavement because we have other investors, friends and family members also who had invested in from the -- with us in that company. So by and large, our shareholding would remain the same post merger.

Sir, we'll take the next text question now. And it's from Rahul Kumar, an individual investor. I'll read out the question once and for all. You may proceed with the answer, sir. The contribution from specialized construction has increased from 25% to 35%. How do margins in this segment compare with the traditional highway maintenance business? And the second one is, as the company enters infrastructure development projects, what kind of margins should investors expect from this segment?

Okay. So as far as specialized construction, this thing is concerned, the orders are concerned, that was a very strategic decision that we had taken about 3, 4 years back to enter into this segment only with the intention to have an incremental bottom line because those projects, the specialized construction and the niche skill set that require gives us definitely higher margin. And our aim, when we started, was also the same to actually increase our bottom line by 1% from where we were, and we are inching towards it slowly, okay? Now second question is as the company enters...

As the company enters infrastructure development projects, what kind of margins should investors expect from this segment?

Okay. So as a service provider, as I said, since we work very transparently with our clients, and I have already said in this presentation that our margins are generally -- since we work on a cost-plus basis, our margins at bottom line are steady, and we can expect. But yes, now the growth is going to come from the volumes, not the percentage.

The next question is from Sourav Choudhary from Raghunath Capital. And the question is, what is the current order pipeline which we are working on?

Okay. As far as our pipelines are concerned, since the -- because of the competitive nature, I will not be in a position to share the client names or the project names. But I can tell you, as I've already said, in terms of major maintenances, we are working with a few private funds as well as some corporations. And one of the corporation, we have already -- we are at an L1 position on an INR 120 crores contract. And other larger specialized construction contracts, I have already said that we are working on INR 300 crores to INR 500 crores worth single project, and we are working on about 3 to 5 projects like that. That amount -- that combinedly gives us an active pipeline of INR 2,000 crores.

[Operator Instructions] we'll take the next question from Disha Shah, an individual investor. And the question is, what level of CapEx do you anticipate over the next few years to support the planned growth in revenue and profitability? The second one is, could you share an update on the proposed amalgamation of Markolines Infra Limited and the expected time line for completion?

Okay. Though I have answered both the questions. Generally CapEx, the investment into the capital assets is very subjective when it comes to maintenances. And because of the clients' need, we have to keep churning on to the capital investments or the plants so that we keep doing maybe not more than INR 10 crores, which we generally -- as a policy, what we do is we have 3 set of machineries, which is owned by us so that we are ready for any kind of project and bidding. And otherwise, the machinery is always being rented locally, whatever is available cheaper at that location. So CapEx is very subjective this thing. And as far as mergers are concerned, as I said, that we have replied to all the queries, and we are expecting over -- by and large, if we look at their NCLT and all other processes, generally, it will take 6 months. And that is what -- so we are definitely expecting by end of this financial year, we should be a merged entity.

[Operator Instructions] We'll take the next question from [ Pranay Shah ] from [indiscernible] Capital. And the question is, what EBITDA margins are we expecting going forward? And secondly, with rain expectations to be below normal level this year, does this impact our business and order flow and seasonality or would be positive for ticking up specialized construction?

Okay. I have already answered both the questions. I will just repeat them. As far as EBITDA is concerned, generally, they could vary because of the nature and the requirement of client in terms of CapEx investment on to that project, which generally we pass on. But since we work on a fixed bottom line, so our margins are pretty steady at a PAT level. Now as far as the monsoon. Monsoon basically is definitely...

I'm sorry, sir, you're not audible.

Sorry, can you hear me?

I can hear you now, sir. You are audible. Please proceed.

So monsoon, we are expecting about 90% of an average monsoon this year as per the IMD's announcements. So yes, do they affect our business? They do. But with the experience, we have learned to keep the mix -- our product mix wherein we could work even through the monsoon in terms of either the maintenances or the specialized constructions. So by and large, as we are growing and with the experiences like tunnel projects, bridges, there will be still work going on. So it will -- yes, it affects the business, but not to that extent. But if you compare quarter-on-quarter, first 2 quarters will definitely have a lesser revenue because of the monsoons.

[Operator Instructions] We'll take the next question from [ Pranay Shah ] from [indiscernible] Capital. And the question is, what are we doing on School and Sports segment?

Okay. So as we have been always looking at that -- now with the current skill set, basically, if you look at highway -- we are into the infrastructure development wherein the construction is the primary activity that we carry on. So we could always -- that was the planning -- one of the strategic plan in our growth plan that we would leverage our skill set into other infra segments. So wherein we have got 2 orders, one is an open order from school wherein development of their school infrastructure that will include the some buildings, then the sports facilities as well as all other amenities and requirements of the school. And as far as sports infra is concerned, we have got recently 1 order comprising of 2 smaller orders within the same thing is the rehabilitation of the sports complex in Andhra Pradesh.

[Operator Instructions] As there are no further questions, I would now like to hand the conference over to Mr. Vijay Oswal, Founder and Chief Financial Officer, for closing comments. Thank you, and over to you, sir.

Thank you, Michelle. Okay. So here, we are at the end of the presentation today. Let me just sum up quickly. As Markolines, we are the largest service provider in terms of highway operation and maintenances. With the proposed merger, which we are expecting to be merged this year, we are also looking at a consolidation, more opportunities. With the increase in the eligibility criteria, we are also looking at high-value projects, which definitely is going to give us a very good growth opportunity in near future, wherein we are expecting the growth by leaps and bounds. And anyways, thank you very much. Thank you for all of you to be here to listen to what we do, how we do. In case if somebody has missed on to any questions, we will be really happy to answer any of the query or questions that you have. You can definitely write to us on our official IDs, which are published on the BSE website or even our website, and we will try and reply to them. And thank you very much. Thank you all.

Thank you, members of the management. Ladies and gentlemen, on behalf of Markolines Pavement Technologies Limited, that concludes today's session. Thank you for your participation. You may now click on the exit meeting to disconnect. Thank you, sir.

Thank you. Thank you all.