Power Mech Projects Limited ($POWERMECH)

Ladies and gentlemen, good day, and welcome to Power Mech Projects Ltd Q4 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 guarantees of future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions]. Please note that this conference is during the call. I now hand the conference over to Ms. Krishna Doshi from Ashika Institutional Equities. Thank you, and over to you, Mr. Doshi.

Thank you. Good morning, and very warm welcome to everyone. On behalf of Ashika Institutional Equities, I welcome you all to Power Mech Projects Limited FY '26 Earnings Conference Call. Today, we have with us the management represented by Mr. S.K. Ramaiah, Director, Business Development; Mr. Nallamothu Aravind, Chief Financial Officer. We time the Power Mech Projects for giving us the opportunity to host the call, and we will now like to hand over the floor to the management for their opening remarks, post which we will open the floor for Q&A. Thanks, and over to you, sir.

Thank you. Good morning, everyone. I am Aravind, CFO of the company. I would like to extend a warm welcome to all of you joining us today for our quarter 4 and financial year '26 earnings call. Thank you for taking the time to participate in this discussion. As we conclude the fourth quarter of financial year politics, I'm pleased to share that the company has continued its growth tractor delivering improved performance across all our core business verticals. Our results reflect the strength of our diversified business model, disciplined execution capabilities and sustained focus on operational excellence. For Quarter 4 FY '26, the company recorded total revenue of INR 2,121 crores, reflecting a growth of 13% over quarter 4 FY '25. The growth was driven by sustained execution across our core verticals and ramp-up of operations newly secured EPC and MDO projects, partially offset by delays in certification of bills under the Water division. EBITDA for the quarter was INR 237 crores, reaching a growth of 2% year-on-year with EBITDA margin at 11.17% margin. Margins are completely comparatively lower than the quarter 4 FY '25, primarily due to increase in the operating cost and the lower other income during the quarter. Profit after tax for the quarter was INR 153 crores, reflecting an 18% increase over quarter 4 FY '25. PAT margins improved to 7.27% as against 7% in quarter 4 FY '25. For the full year ended March '26, the company achieved a total revenue of INR 6,017 crores, representing a growth of 16% year-on-year. The annual performance was driven by ramp-up across our key verticals, particularly industrial power construction, civil infrastructure projects, services and increasing contribution from EPC and MDO businesses. EBITDA for financial year '26 was INR 750 crores, up 16% year-on-year, while EBITDA margins remained stable at 12.3%. Profit after tax for FY '26 was INR 412 crores, reflecting a growth of 18% to our financial year '25. So revenue mix -- now coming to revenue mix by quarter 4 FY '26, the geographical revenue mix comprised 94% domestic and 6% international revenue. Sector-wise, the Power segment contributed 57% of revenue, while land power segment contributed remaining 43%. For financial year '26, the geographical mix was 95% domestic and 5% International. The power sector contributed 64% of revenues, while non-power sector accounted for 36% reflected a continued diversification of our business portfolio. So from an order inflow perspective, the company secured orders worth of approximately INR 7,210 crores during FY '26, achieving around 72% of the annual target. The shortfall was primarily attributable to the calculation of system order worth of INR 563 crores by West Bengal state city department. During the year, we secured several larger strategic parties across EPC, civil and regulatory business. The key measure was the award of a large BOP EPC package for the 800-megawatt Singareni deal project from. The deposit marks an important milestone in expanding our capabilities from the execution packages to integrated EPC delivery in Biosystems. We also entered a new business vertical through Mumbai Mono rail on contract marking our presence in the metro oil operations and maintenance space. Looking ahead to FY '27, the company is targeting to of around INR 12,000 crores with a strategic focus on expanding our BOB EPC portfolio and securing new O&M contracts. The total ARR backlog, including MDO contracts stands at approximately INR 5,151 crores, excluding MDU orders, the executable book stands at around INR 15,899 crores. This provides a strong multiyear revenue visibility across power, civil EPC and vendor business. We continue to see a strong order pipeline across thermal power balance of plant systems, civil infrastructure railways and healthy transition-related projects. So the financial parameters, the company's operating cash flow improved significantly during FY '26, increasing from INR 7,400,000 in FY '25 to INR 430 crores in FY '26, primarily due to -- driven by the improved realization of receivables during the year. This is expected to further strengthen our operating cash flow and reduce the dependence on working capital borrowings going forward. Gross and net debt remains well controlled despite delays in certification of audits in builds. As on 31st March 2026, gross debt was INR 62 crores while net debt was INR 163 crores. The debt equity ratio as of the same date remained comfortable at 0.32x. So in summary, we are pleased with the progress ensured during quarter 4 and financial year '26. Our diversified order book, strong execution capabilities and strategic focus on high-value projects continue to position the company for sustained long-term growth. There's a clear visibility of growth until financial year '30. Our focus remains on increasing the share of high-margin recurring business to ensure to stable growth in both top line and profitability. At the same time, the global macroeconomic environment continues to remain volatile with potential disruptions arising from supply shortages, inflationary projects, industry rate movements and other external starts. So accordingly, we are strengthening our operational and financial preparedness to remain resilient and agile to navigating such uncertainties. With a strong order pipeline and execution movement of accounts businesses, we remain confident of delivering on our growth objectives, and creating a long-term value for our stakeholders. With this, I now request Mr. S.K. Ramaiah to share key business developments and the outlook for the coming periods.

Thanks in for all the important numbers on the growth story as for the port. I think we should still be very bullish and positive on the total outlook for the company, looking at the growth which is happening. Of course, there can be a lot of new initiatives like what we have teed the less and then there was issue with the West Bengal as board and then it was had to be canceled, otherwise, our numbers would have been much better in the order backlog. But overall, if you look at the total order backlog has gone up by 10.5% for the current year from INR 147 crores last year to INR 158 crores. The 3 growth areas have been to be in the power sector. And that is mainly because of the bullish investments, which is happening in a substantial way in all the segments of the power sector, particularly the new thermal business. [indiscernible] and recently, JWC also joined in the other players also expected to or that is the basis on which we have continued to focus on that. And the mechanical business had a slight dip. Of course, if you take the EPC portion of the installation, it is still okay. And then the civil side also, but the major growth came out in the O&M sector about 8%. And this 1 -- solar is the new entity, we have entered for a 16-megawatt plant in a for Hisar. These are the new entities. But 1 is the key aspect is the foray we emit into the engineering project construction, getting the balance of plant that is synergizing our expertise in the service side. That means we got a strong background in doing the civil works, structural work, mechanical work, and also commissioning support work. And that has helped us to take up the 40% of the value addition in house working with 60% to be managed by engineering and procurement from the key parties. But overall, the company is quite content excluding it's an important job. And this allows us also to enter into similar take-up jobs in future with a better value addition in similar projects which are expected based on the present tendering practice by BHEL. And then the domestic -- is to be -- continues to be positive, more of the out of coming in the domestic sector. And then power sector, the backlog of the order is about 70% and non-power is about 30%. That is on the overall number. And the key aspects of the business is -- continues to be the case of power sector, if we look at it, I think we continue to remind positive on that. Actually, government initial plan of 80 gigawatt 80,000 megawatts can go up to nearly 100 gigawatts in the coal-based power plants. We have seen presented certain trends about the increase in solar power, it has gone 150 megawatts, and it will solely go up to more than 300 gigawatt that can bring in a lot of grid imbalance. And that's why the necessity of managing the grid needs more thermal power in the night operation, under daylight operation practices. And now the new players are also coming. There to coming with new plants coming up in Singareni and then Hasani has taken substantial initiatives. And then perhaps their overall plan is to triple their capacity from 7,000 megawatts to more than 4,000 to 5,000 megawatts. And overall this one. And they have done substantial ordering about 16,000 megawatts on today -- done the other major ordering of 10,000 megawatt apart from the other players like [indiscernible] Singareni and then Gujarat State Electric Company Limited, and then MP. Therefore, the expectation is that the present opportunities much has been ordered. That comes to substantially about nearly INR 2.8 lakh crores in terms of the direct ordering done by BHL, L&T, et cetera, on the major packages. And that will translate into a reasonable opportunity for us about INR 60,000 crores in various segments like installation business, civil business, structural works and the balance of products on packages and all. And that is what we are banking on. That is how we have seen recently the major orders also going from 1 side. We are actually working in about 4 major projects in Adani in Mohan, Phase 2 and Phase III, Bijapur Phase 1 and Raipur totally 64 megawatts and ongoing projects valued about INR 3,166 crores. And then BHEL is there. And then apart from the nuclear object, we have taken out quite of civil works for INR 563 crores to 70 megawatts, rest of the thermal projects about 7,000 megawatts nearly a old the INR 2,200 crores. And then if we add the recent addition of the Singareni about INR 2,500 crores in the total BHL various packages and orders will be about INR 4,700 crores. Therefore, these are the 2 major players in which we are continuing to focus it. And only thing how much is the additional order will flow from the balance ordering to be done and then the packaging to be done by Adani, then percentile JSW, Singareni, and then in -- they are putting the plant in Assam also for into 800 megawatt. That we are discussing with them. And over in them is going to be -- continues to be an interesting opportunity for us, and that is a margin driver. And then new opportunities are being followed up in Barco. And also in Butibori with resin drops and other projects. And then recently, we have taken a job in nonmeter also and continue the earlier order of our business on Hindustan zinc captive power at Therefore, about 4,000 megawatts of ordering has been taken up in the world and they lost in the previous year. And then energy commissioning program on the as happen in terms of the commission in the coming years. If we take rate, average 8,000 to 10,000 megawatts of ordering, perhaps the 2 areas in our business that is installation business than the civil works and the third area which is important in the O&M long-term momentum, that should bring us a lot of results in terms of balance ordering and other things. Apart from that company is very much focused. Recently, a major breakthrough had been entering into O&M business in the metro sector INR 27 crores. So we have taken up in this 1 light way in Bombay, that is 15 stations work doing the -- that is a major technological breakthrough for us in terms of the operational maintenance practices. And today, we are seeing about 950 kilometers of railway, metros are there and it's going to develop it to 20 kilometers. And that should help in this initiative should help in terms of the outsourcing of the O&M and operation of the network. And that should be a new opportunity, which we should follow up in the future also apart from the traditional power sector and some of the areas in the noncoal sector also. Then coming to the major opportunities, what we are planning in the current year. There is a reasonable opportunity basket available. About INR 70,000 crores of opportunities in terms of what is visible in the various sectors in the power sector, non-power sector, infra work, then on services, we have metro maintenance and then EPC work, et cetera. And that we are been keeping a track of it. Of course, order plan, we have -- based on the appreciable, we hope to get about growth as upwards INR 12,000 crores is the -- this 1 we have kept it for the current year. And we continue to call off all these opportunities and the prior tracking has been down about the INR 70,000 crores of opportunities in all these sectors. And another important development is the NMDC is coming with a lot of investments. Perhaps their plan is to such up their interesting capacity of 60 million tonnes to nearly 110 million tonnes, 50 million tonnes and that makes an investment about INR 70,000 crores. And we had recently done on bidding -- beginning for the BOT projects for a 5 million tonne of capacity bi-state handling facilities, and that has to be seen the outcome of it or they're going to roll out based on the price levels and other things. And then there are new EPC tenders have come, we are tying up with price Group, they are 1 of the strongest technology partners in terms of the ideal work -- material handling and then the process management, this one. And we will be the construction modern need. And we clearly, a couple of projects are there in orator, INR 1,000 crores. Then the other aspect is that the non-power growth investment continues to be there, railways used to be there. And then non-power NMPC, I told. And then the new visibility perhaps is a steel plant. Recently, we had 1 some bidding work in the -- but our prices were a little bit higher than the other players about INR 3,000 crores of opportunities. But there is a new investment coming up in Bokaro steel plant and the gut. Apart from that, thermal is planned to put up a 10 million tonne capacity plant in were Anacapri in Andrades. And then JSW is planning a new plant up in Paradip, 10 million tonnes. Of course, after some time, they are planning to invest 25 million tonne capacity in version Therefore, we have got some exports in taking the sleep front book also earlier, we are tuning Dolvi, then go -- and we want to say pullover our existing experience what we have achieved there, and also the similar words what we have done in the civil infrastructure and the installation works, whether we can take up in the case of steel front also. Therefore, overall, the investments will continue to be there in terms of the railways, highways, metro expansion, power sector at 100 gigawatts nearly and other sectors also. And then O&M some opportunities, we are following it up in the Middle East also -- and now a lot of 1,500 count is deployed in the Middle East to do about a INR 300 crores, INR 350 crores of jobs, and we have taken a major on job for the captive plant in Nigeria also. Now there are some inquiries coming from Senegal and then Liberia, the Nigeria and also some of the African countries. And therefore, we have to how to expand these opportunities in all these sectors. Therefore, from that perspective overall or available we reason believe that the 2,000 crores of this one, what we have kept our this current year target would be possible, and we will as much as possible on that.

[Operator Instructions] The first question comes from the line of Mohit Kumar with ICICI Securities.

Good morning, and thanks for the opportunity -- my first question is this, on the order inflow. I think last year, we guided for INR 10,000 crore order inflow. And I think we think there is substantial miss, right? Can you please explain the -- is it that you saw a lot of order which got the finalization got postponed in Q4? Is that the reason of the miss, and we expect those orders to get finalized, tenders to get finalized in fiscal year '27. So fiscal ratio should be a better year in terms of order inflow. And also a color on the order inflow opportunity for the thermal BOP for fiscal '27?

Yes. I think as far as our interest was there, done have been reasonably successful in getting many orders of their [indiscernible]. And of course, new investments, whatever there we are bidding with them also. Now even though we have got a lot of orders on the existing, but there's some packaging philosophy they have changed rate and that we are watching it. Of course, on the BOP side, we are going to bid for 15 projects that's worth INR 1,500 crores. And our aim is to get 1 more BOP in the current year that a strong team has been established with some experienced people from BHL also. And with the present experience, what we are gaining in an then our nose expertising execution that should help us to be competitive, and we are getting qualified also in these BOP projects. But on the main institution side, we are quite positive on Adani and then -- question of how much is the competitive levels we can work on the pricing because of the packaging philosophy they may follow because they also want to see how much competitive they can get the pricing for the market to fit their budgets and all. But we are having a long associated with BHL and the value association and also our exciting capability. Therefore, that should still come into our help when we focus on that. Therefore, I will again come back to the opportunity levels available of about INR 70,000 crores, which have been identified opportunities. And that should be the basis on which we can look at it. And going on, we are discussing a major job in Balco around INR 1,500 crores another INR 700 crores of opportunity 300 megawatts that also we're discussing on the O&M side. And then with the new plants coming up in the O&M side, there is operation commissioning -- commissioning completion perhaps these things will continue to be progress should be there on the O&M side also. And then the new initiative we have taken in terms of the mine site facilities, because there is a lot of focus on mine side investments and then as a policy by the government, both in the iron homesite and the coal side. They want to award this exportation by road, and they want to make as the entire system, right, on the mine side to the delivery side. And we have developed some expertise based on the work we have recently getting completed in a that was in associating atonic job. That was a small job of INR 200 crores from the association group. And that expertise should help us to bid for all these projects and the qualification, we are fully qualified for a couple of tenders net in -- and that is an area we have to see or we can be successful as a new initiative. Therefore, from that point of view, I can only say that expect that the opportunities what we are tracking should fortify.

Understood, sir. My second question is on the mine side. What kind of volumes 1 can expect in the -- in both the mines separately for FY '27 or FY '28 given that both the mines are now operational.

The KBP mine started over started production and ramping have happened in last till March, we did around INR 248 crores revenue. And in sale project, we did around INR 106 crore revenue during the FY '26. This will scale up the KPP mine their offtake is now beyond the contract capacity they are lifting. So INR 350 crores we are projecting for the FY '27 and INR 500 crores for FY '28 from KPP. And Tesla, our Washar project is under process undergoing. And while December, we'll complete our entire bursary. Maybe Q4, mid of Q4, we'll start our production and ramping up the production from the customer end. So we may expect INR 150 crores from FY '27, and it will ramp up to INR 750 crores by FY '28. So 6% to 7% growth will be there for next year and from 7% will jump to 13% growth. Overall revenue in the revenue component is treated 6% jump will get on the revenue.

Next question comes from the line of Tushar Khandelwal with Nexa Securities.

So my question is regarding -- I understand we missed the order inflow guidance and revenue guidance, but we are able to meet the revised revenue guidance this year. So I see a lot of challenges in the DMO segment of the business. So management is seeming quite confident for achieving the 237% guidance. So is there any underlying change in macro level or business level or initiatives from the company, which are -- from which we are seeing this confidence on achieving the '27 and '28 numbers.

So FY '26, basically, we projected around INR 6,500 crores, and there is a shortfall mainly on account of the water division. There is a delay in certification of Otherwise, we almost against 300 was harsh fall was only INR 400 crores -- INR 450 crores shortfall. So more or less, is that we achieved more than what was projected in other divisions. And for the FY '27, we are confident of achieving -- we are posting around 21% growth for the current 27 estimate. We are projecting 21% growth. We are confident of achieving that. And even the MDO ramp-up is happening. And we are more focused on the high-margin O&M business. This year, we are expecting more O&M models, high value adds in PC is also -- we just started last year, and we are expecting more revenue from the EPC business. So we are confident of achieving the projected number of 21% growth.

Okay. And for second question, are we facing any labor side shortages or labor problems?

No, that is always part of the level strategies there, and we are always recruiting the people and training and outside and where we are managing. We are the largest service provider in terms of direction business and O&M side. So major opportunities are there with us. So people are -- our attrition is there, but we are maintaining with the new people and we are managing requirements.

Next question comes from the line of Vignesh Iyer with Sequent Investments.

So my question is more on the raw mat inflation that the industry is witnessing as a whole due to the West Asia or ongoing forward -- and I wanted to understand of our current order improve, what percentage of the order book insulated partially or fully with any escalation clause in place or -- and for the 5 that is not insulated, what is our strategy going forward.

Sir, our order book international order book is we are only doing O&M services, which consist of 2%, 1.5% overall. There is not much impact on the war on our O&M business. And in fact, if you compare my FY '25 to FY '26, revenue has gone up from 2 is to INR 327 during the current year. And as such, there is no impact. And in fact, we may get more opportunity in terms of construction side, a lot of plants are under dismantle and opportunities in interaction business. Over, I think most of our -- greater works we are doing in a INR 100 crores. That is a long-term contract. And then some inquiries are also coming in the West Africa. I get to see because our station jars, which we had a substantial business, that has actually come down. We don't a we're only doing the need-based going jobs, manpower supply, and that is okay with the better mortgage on to. And I hope what also got lost -- and we are doing majorly in the business, we're not in the direction. So there's no impact of international any raw material prices impact is not there. Domestically, there is a increase in the pricing. And at the same time, we are covered with the escalation of every contract we are carrying the escalation value. So we may get the reimbursement from the clients.

So my question more was on the senior side of it, right, on the power projects, if any other domestic side because there are other players who are facing it as of now. So the question was more on that line.

Yes. If you see the impact of steel and cement price have increased diesel price has increased. So to the extent covered through our contract arrangement. So we'll get the reinvestment from the clients to the extent of that thing we were previously.

So how should we look at our margins then for the upcoming year on the stand-alone side of the business? If you could -- for the entire year?

I mean, if you could SP276133533 Yes. SP1 Stand-alone level, there's a marginal result because of the water dividend certification delays are there. whereas this year, we are expecting the central government will ease their funds. So we are expecting because of the additional overhead, the margins, the constant is there in the tails. So we are hoping that this problem, this will be -- the tonsils in ties problem and the certification will generate more margins. And for FY '27, overall margins because of the -- our end revenue mix is increasing, and EPC division revenue is increasing. So the margin profile will improve. And MDO business is also increasing in the total top line and bottom line. We are hoping that this time we will touch EBITDA of 12.5%. Including other income, we may touch around jump of 0.3% jump in the EBITDA.

Okay. And how should we -- if you could share it, how should we read the margins in the MDO project? How should we look at the margins for the MDO contracts that we have got?

Has just started with production, sir. So only when we lease the peak rate capacity, we will touch the blended together around 20%. At this moment, 15% to 16%, we can take the average EBITDA margin we are generating on this MDO.

Next question comes from the line of Deepak Poddar with Sapphire Capital.

So just wanted to understand the MDU, we are targeting from MDU FY '20 INR 500 crores kind of a revenue in FY '20, 12. Is that right understanding?

Yes.

Okay. And what -- how should we look at the margin trajectory in DIY.

It will reach every year, 1% jump in the MD revenue because when we -- capacity by 293a will be the PRC by 29 and kept -- so by the time, we'll touch 20%. So 15% to 20% every in 1% jump will be business.

15 to 20 sir, I did not follow question. Jamil there depends on the volume.

Okay. every year. And then how much was the margins in FY '26? SP1 It's at 15%. We issued a higher rate because received March 1, is we did around INR 17 crore revenue, which is a bigger number. Every month, we sold to 40%, but this month, that's when we ramped up the production. The initial move removal will be very less. So when we go deep into the pit, you will get more over removal, your cost also will increase on the production. So average, we can take 15% to 16%. And this 15% EBITDA margin, 15% to 16%, was at INR 354 crores kind of a revenue rate we did in FY '27..

In FY '27 also 16% is more. So year-on-year, because of the ramping of production happens and in the same we get a production overhead adjustment. So jump you can take from 15% to 16%, 16% to 17%. And by peak rate by 2030, we can touch 20%, 21%. Understood. And FY 2017, the order outlook we have, what sort of orders we might be targeting.

Yes, targeting INR 12,000 crores. This year, we are majorly targeting BOP 2 projects of BOPP and major MDO projects who end up products are targeting.

Okay. And then what's your CapEx plan for this year, FY '21? CapEx, we are doing a sale as of now, and we'll complete the artery activity. So around INR 40 crore capacity will be added by FY '27. And in TV, another INR 400 or Tarasia colending plant and relating landed in the ops that power Maeve, only INR 400 crore will be the addition to the CapEx. Without any debt, we are adding that for a net core CapEx. Okay. Understood. And what's our export mix right now. Export mix. This is for 4% of the revenue. Okay. Okay.

And because of this global macro scenario -- I mean, are we facing any issue in terms of our business? We are only doing wind up with major listen. There is no disruption so far. And all the plants are running wherever we are supplying the manpower. As such, there is no issue as of now.

I'll have -- because of commodity -- commodity prices have been quite volatile, right?

So we expect in the domestic business than interest because international we are supplying in empower construction is there only in domestic, there is increase in the price of material and contract execution expenses have increased -- to the extent we have a previous factor is already factored in the agreement, so we'll get the reimbursement from the client and escalated values.

Okay. Okay. So we are able to pass on the cost increase at this, right? That's very helpful, sir.

I mean -- that's it from my side, all the way best.

Next question comes from the line of Vinay Kumar, an individual investor.

My question was the vomiting for the whole gasification. So do we have a scope there because rail and Adani Group is also there in coal gasification to do with the business opportunity and what type what will the amount, sir?

Reset information, we are also tracking it. Romanian ensure investors of INR 7,500 crores. because the thing at the import differences have the potential arterial, LNG and other things. Coregas station is morat. Of course, the pilot projects have been launched with the group of companies like BHL technology provider and then along with the for India, all these things. Then of course, this is very much in the initial stages and the investment as what we are looking at 37,500 government as planned. I think that should happen. And the only thing we are also trying to start making these investments. And first, we have to look for the technology partner because a similar job what we can take it up. But as a developer or owner that can be a second option, first option is to entry work in terms of traditional work, what we can do in stations, service business. and then undertaking the complete plant construction, and that should be a possibility with our qualification. And this is already in our thinking, but let the investment, it should take some time. First of all, it is thinking on allocation, then there should be developers and owners and plant developers who has invested -- and then the main aspect has to be firmed up on the investment has to go and then now perhaps it will happen. Maybe we will expect down the line 6 months or 1 year, we can start.

We'll move to the next participant. That is from the line of Riya Mehta with Aequitas Investments.

So my first question is in terms demand from private CapEx. So we're seeing demand from formal CapEx part on where are you seeing major demand from which sectors.

I agree I told you mining a lot of investments are coming, particularly from Coal India -- of course, on the mine side, we have taken up all the 2 jobs, which is on the progress. But another development I brought out was on the NMDC investment of INR 70,000 crores for their mining capacity expansion by 50 million tonnes for all their mines in Bellary and then in Chhattisgarh. Therefore, there they present an opportunity of INR 10,000 crores has come. We are trying to work with Tisagenle that is a major thing. And then there can be other opportunities in the case of steel also collect total capital investment plan in the next 5, 6 years is about INR 10 lakh crores. Of course, they're all big projects -- is planning, then Hoffermitte is planning steel authorities planning. We have started initial bidding. But at that in the case of soon, we are not successful there. But we keep our efforts there in the future opportunities can come up like Altamira goof the plant in merit JSW, we are intact with them because we have done the expansion coming up in Marisa. Therefore, these are the areas we can certainly.

Apart from what Ramesh has said. Another area is the railways where we are looking at the new Broadgate lanes works and the going even the construction of new lines, we are looking at it -- and road projects are also there. But of course, there is a healthy competition is there in road side. But if any good opportunities that road also will look get.

For the new thing, what I would like to say, sorry, what we got the breakthrough in the metro and we have taken the job 2 in Bombay. That is the beginning. And I already told you about that it can be a huge opportunity, which can be there for the changeover from the present system operation maintenance to outsourcing by the metro companies.

Got it. Also, in terms of client concentration, how much would BHL form for our total order book?

As I told you, Adani, have doing INR 6,000 crore megawatts total or about INR 3, 200 crores. And then BHL, we are doing about 7,000 megawatts on thermal and 4,000 megawatts in nuclear, that comes to -- and then of the project that comes from INR 4,300 crores.

Got it. Are we facing any working capital issues considering price cost by has increased? Do we have escalation clauses in place for these orders?

Yes. We are having BCise, which we are climbing in available as are based on the indices we are claiming that. So and advances are also they are giving modulation advances. So there is not much of working capital issues in terms of handling this -- running this project.

And in terms of the water project issue which you were mentioning, just wanted to know how much of the order for that.

Balance is around INR 900 crores of order, we have to execute them. So last 1 year, we stopped doing the work and only we are concentrating on the nearer to completion projects where we completed 70% or 80%, that project will be completed and we brought this method products into the nonplay. So O&M, we are getting monthly fixed revenue as per the state government funding, they are releasing their funds on the O&M revenue. Almost for 500 schemes, which we are targeting by June, we have to bring everything into the O&M. Out of that, so far, we did around 300-plus of skill free move to the O&M. And based on the central government allocation of funds, then probably we'll restart this balance work of INR 900 crores. So the movement last year also the state government side, they have released the fund. We have realized almost INR 231 crores during the last FY '26. And further, we need to get this etirigation for INR 128 crores of work in progress, and there are INR 90 crores of receivables we have to realize from the client.

So could you help me with the total amount, which for the work we have done and the amounts not received yet?

Not received is INR 90 crores against the INR 2,700 crores of charter value, INR 1,800 crores worth of work we have executed. We have received entire money except the INR 90 crores of receivable and 120 bills are yet to settle done and spending for simplification. Out of this INR 200 crores is the overall spending in the balance sheet.

Got it. And this was included in our order book numbers.

Yes, it is there in the overall closing. INR 55,000 is included INR 900 crores value. So we can on INR 900 crores 200 is there. The remaining INR 700 is the we are doing execute.

Now are we taking any further water projects or something?

As of now, we are not showing intestinal because the power at sir, we are getting more power orders. So we are concentrating more on the power and O&M business. Till 2030, this is the major requirement. So we are compensating more on this. Our water division, Jal Jeevan Mission schemes are now start because of and government holding funds. So we are concentrating on the regular business.

In terms of railway, I think last couple of fuels, there has been incrementally very high competition and margins were compromised. So what part of railway are you excited about?

We are actually not doing the regular civil kind of work now. We are taking the combination of are electrification and signaling telecommunication, civil together as a package. So the competition is very much this kind of -- because the technical liability made therefore, the regular civil kind of people. We are targeting only those mix of both civil and technical qualification requirement projects we are targeting.

And how much has this been an order book railway?

And what have INR 740 crores.

Just for the broader guidance perspective, since we saw INR 7,200 crores of order inflow this year, are we on place to the INR 10,000 crores for the next year and the order, which we did not get. Is it a retender or somebody else received.

Yes, they are lagging recalling the tender man. So this year, we may look at that. And whatever some of the projects for L1 Bangalore Metro, we restored and mono rail in March. But the results we received in April -- in March, but is too in the month of April. So our guidance like 10,000 almost near to 10,000, but unfortunately, develop this cancellation, we start falling.

So we are on track to have INR 10,000 odd crores of order intake for this year?

Yes.

And the current order book, which we have, excluding MDO, what would be the average tenure of the order?

2, 3 years between 200 years, you can take average execution time line. So every year, we are doing 40% execution and opening order value. So the 2.5 years, you can assume the average size.

Right. Also now on the MBO side, when is the coal was betting commission.

We are almost all metal sold is the site and erection works are already started. By December, we'll be ready with our Wasman. We'll do the testing and which will be ready to use and from will do the washing coal same. The real this for FY '17, you said INR 450-odd grow 300 plus 150 million.

And next FY '20, it will be INR 500 crores plus INR 750 crores, it?

No, INR 30 plus INR 150 crores INR 500 crores for FY '27. KBP mine and sales or -- can you repeat volume Yes. KB mine, we will core -- and sale mine, we'll do INR 150 crores '27.

Got it. So total INR 450, right.

Next question comes from the line of Mahesh Patil with ICCI Securities.

Sir, first question is that you have highlighted some labor court provision in Q4 that has impacted the margin. Can you give details from the exact amount?

Around INR 450 crores, we created a provision for the increase in that Earlier, we followed the 40% basic. Now it links to the 50% level. So there is incremental gratuity increase so that we created a provision for the entire year impact.

Okay, sir. And sir, on the nuclear side, we have already received 1 project. Are we seeing any further opportunities there? How are the discussions going with some of the plant.

Yes. I think we've already taken in case of INR 56 crore civil work that is in progress that is to turn with the loss -- but as we know, policymaking by government is bullish on the nuclear side. We have about 8,000 megawatt registration. -- their plan is to make it 100 megawatts, 100 gigawatts or like a megawatts. And that is a very old toss, but it needs a lot of supply chain management, exiting and technology and operations. And we are looking at it and now the small modular reactor SMRs coming a 200-megawatt to be. Then we have seen recently the American team is there in India to discuss that associate supply chain. We watch that because there said, there are 2 aspects briefly. One is the offsite facilities, another is the reactor site is. The reactor size facility is very different in terms of quality are similar like what we do in a power plant, urban island and then cooling water system and -- but we will watch carefully and see because the nuclear power installation has got its own issues in terms of challenges and that we have to slowly roster it. And ultimately, we have to enter there.

Next question comes from the line of Nikhil Kanodia with Suni Securities.

Firstly, congratulations on the decent set of numbers. So sir, my question revolves around the -- so what we have seen is a lot of intra capabilities have been kind of vanished from the Lilly. So are we seeing any election or maybe EPC or EPC kind of opportunity in that sense? And what would be your -- the opportunity size from that market. Middle East opportunity.

Yes. Middle East, as we expect, about INR 300 crores ongoing jobs, mainly in the maintenance, manpower supplier, and then some jobs we are doing in West Africa that is there. Accent, our focus is on providing fully manpower supplies for the operation manage and then shut down jobs, et cetera. Now as far as the installation jobs and then major jobs in construction, that we have got a strong reference there. In the interest compact gas-based bonds so was nearly 7,000 megawatts -- and that could be there. But let us wait for the quarter end and then the investment should come up, and there can be a lot of opportunities there. And we already we have got an average set have been did and then in West Africa. And we'll be there to see how to take it.

Okay, sir. Sir, the second question is that you mentioned that the market size for your power business is around INR 7000 crores. So in that sense, how much are we trying to build over there? And what is our bid win ratio over there?

No, we have to see what is the hit ratio there. When the competition is there, we have to see the cat competition and then the customer in contractors. Like in Adani, they would prefer it. It's a different matter. JSW perhaps they can have a choice with the private sector, but all the government jobs -- we have to see how the competition is there. Therefore, the general price is that we -- our previous record is we have been beating 40,000 to 50,000 source of opportunities for -- therefore, the inflation can be some that is what it is. That's why this year, because of the new opportunities and new years of the business, on the mining side, metal side and then power sector, more investments coming up and also in some of the infrastructure side, ongoing jobs in railways and boards, we have kept a target of INR 1,000 crores. Back to that we have -- we can this 1 opportunity sensors.

Sir, if I heard it correct, you said that INR 70,000 crores is the opportunity size for which you will bid for around INR 2,000 crores, INR 3,000 crores, and the hit ratio could be around 15%, right?

Yes, that should be Correct.

Sir, the third quarter is on the labor like what we have seen is that the kind of leverability is kind of a challenge right now. So what are we seeing? What is the ground relative into should liver -- what is the kind of price increase that has been there in the labor cost? And when do we see the availability of labor coming back to -- on the fees?

Ultimately, I think development in West Bengal, that's where a lot of labor comes, but in the civil labor. The civil part of the labor mostly comes from WB, Orissa, then consumer leverage from Uttar Pradesh also. Therefore, as of today, if you look at it, our total headcount has gone up more than 40,000 nearly 70% is on the labor side. And then in that world is 8,000. In the case of O&M, we don't have any problem because they are still based on then the semi skill base and there is a secured job on 5 years, 3 years like that. And people are trying for that unworthy are there in that we continue to imply them and then when the jobs get removed, it will be continued and all. The challenge will be in the construction side and the single side and then the installation side. That way for we have been managing it, and that is how we are able to meet our physical targets also. And the new jobs, what we are coming certainly some more increases as required. And what we can say based on the record of Power Mech, we have reasonably at of the manpower requirements, meeting the schedules and cement. And so far, we have not made any -- there was no major shortfall of labor in executing jobs.

Sir, 1 last question that you mentioned for the order inflow target for FY '27 is around INR 12,000-odd crores. For FY '20, what will target look like?

Maybe in the same INR 12,000 to 15,000 range, but it depends on the maturities are.

Next question comes from the line of Ravi with Sundaram Family Investment.

Congrats on excellent set of numbers and a good guidance on order book. I just wanted to reconfirm 1 understanding. I think in 1 of the comments you said we are expecting 21%. Is that number for revenue growth? Or is that for order book growth?

Is the revenue growth 21%.

Okay. That was only clarification.

Next question comes from the line of Vin Mandiant Hathway Investments Private Limited.

Yes. Just wanted to -- that your growth in MD operation, there will be a 7% jump in 27 and a 13% jump in FY '28 after the washer is put up. This is only for the -- the number that you gave you have done INR 106 crores in FY '26, and you're projecting INR 150 crores, that's almost a 50% jump.

Is in the percentage of revenue, I'm saying percentage of revenue the 7% of the total revenue. And 12% on the revenue component.

Okay. Secondly, in terms of growth, you had said around 21% growth would be for the coming year. And in EBITDA, you have mentioned 12.5%. Okay. And if I just -- can you share the EBITDA numbers because you have given the mining EBITDA numbers to be around 15% to 16%. For your mechanical and civil, what would be your general EBITDA margins and volume.

The as Vinda is around 15% to 16%, and the remaining construction in Las with 10%. So blended together, as of now, with other income, we are announcing at 12.3%. Now the other income because I have activity unutilized funds are there measure interest income now that consumption already happened. So now going forward, we will generate around 12.5% for the coming year. And the year it may jump by 0.5%, which is in 2030, we'll touch 14%. 31 would touch around 14.5%.

Just last question. This is -- you had said for Civil, it is less than 10% for mechanical also, it will be around the same.

Yes. Our action civil everything we can take less than 8% to 10% level of margins.

Okay. And just 1 small bookkeeping question, which until last presentation, you had mentioned electricals as 1 of the business segments. This time, you were mentioning -- is it the same? Or is it different?

It is a different business because the -- actually earlier the transmission division actually was to do the transmission erection of the lines and other things. That business is over now. So in between, we have taken a railway work, and the team is doing that trial way activity. So we shifted that entire portfolio to the Civil business, and we added a new line of activity of EPC. So the electrical part is now covered in the civil work.

Next question comes from the line of Rohan with Capital.

Sir, my first question is that in Q4 of FY '26, our MBO revenues were INR 226 crores. Is that right?

Correct.

Sir, so for the full year FY '27, we are guiding INR 500 crores when in this quarter, we've done INR 226. So is there a lot of seasonality through the year, that's why that Q4 is so heavy.

No. Actually, the KBP mine as per the contractual capacity, the $0.4 million is for sale of operation we have to supply. But the client accepted because there is a delay of projects, so they have taken higher capacity. So 1.6 million we supplied -- we did a November earlier, we started the production and December, January -- after February, we did around INR 40 crores of revenue. And March on, we scaled up the operation and we did around 170 as exceptional. But even here, we are comfortable we can do INR 40 to INR 50 crores of revenue going forward. So -- but in between rainy season will be there. So I just factoring all this condition and -- in the current year, I have to do around 1.5 million tonnes as per the contractual capacity arriving in client constraints also will be there for selling this material up to the outside market. So we are conservatively factoring this at 350 level.

So while you started late in the year, a lot of it was compensated in the month of March, which was higher volumes, but that's not the sustainable monthly run rate. And for full year, it will be lower, right?

Actually, this is our entire land beast forest department and forest clearance center, there were delays in the forest clearances. And after that, we have to do the cutting and a lot of upgrade to activities, we have to do to bring this into the production. So Vobe removal started in April. And in between the rate season started -- and then we started production post-tender, we started the production.

Got it. And sir, in the last call, which was in February 26, we had said that by FY '28, we can touch INR 1,800 crores, INR 1,900 crores in the MDO space. But now we are saying INR -- so where is the SAP now, sir?

No, the KGP mine, their washery is not ready from the CCL set, but even though it's not in our scope, but as per the contractual terms, -- our intention was to push the client now to take the major material. So the next year is this year 1, next year is 3 million. But our intention was to push the client to take the major higher side, higher uptake we are pushing NIM. If that happens, we can do the major business. But conservatively for the people are giving it 50 level. And -- and then the sale project, we projected 28 will read the PRC. But again, ramping up of the production from 0 to again, 4 million tonnes in a single year is again a top challenge. So conservatively, we projected 750. And FY '21, we are projecting the full capacity in sale product.

Tool capacity, it will be?

4 million tonnes in the sale. And 5 million is in the cabin. So the PK will touch full capacity by 30% and full capacity, '29 by the sale because the rate of washeries truly constructed and there will be -- the first of operation, we have to see the conditions of this later and everything. Then conservatively, we can -- with sales factoring reasons, other reasons, we are factoring this a conservative little value. but we can exceed that number.

Okay. And sir, in revenue terms, how will it be $4 million and $5 million? How does -- how much does that translate in revenue crores in '29 and 2030?

Around INR 2,100 crores to INR 2,200 crore depends on the escalation value, sir.

Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of question-and-answer session. I now hand the conference over to Mr. S.K. Ramaiah for closing comments.

Thanks for the participation and very interesting questions. And of course, we continue to be bullish on our business opportunities in the power sector industry is going 3 years maybe 5 years, we've got a same outlook of the on the power sector. And then wanted with a business in which will sustain the profitability and then growth also. And then we're tracking a lot of new investment, new slots coming up for in them and advanced stages of working in some of the contracts there. Therefore, O&M is a positive thing because of the annual commissioning can go up to 8,000 megawatts on the minimum side that should grow to opportunities. Then power sector, we said overall opportunity size about INR 50,000 crores, and our consumable orders have been taken on that side, about BHL and then Adani particularly coming up. Then new investments, which will come in power sector will continue to attract it. Then in the non-power sector, I said mining had facilities, we have taken an interest and we have done that before 1 BOT project. But the outcome is not known even though we have a position because of the pricing issues. And then the EPC type of jobs are also coming up about 3 tenders, almost INR 10,000 crores in MDC and then non-power sector. And then want them on the metro side were discussed that we have made a beginning in Bombay, lite metro, and that should open up a lower opportunities who are increasing the vendor profile of the company. And then in the export side, we look for the -- how the opportunity takes up on at the situation improves in terms of the Middle East or. And then the West Africa, we are trying to look at new territories in terms of Liberia, Senegal, apart from Nigeria. And having some discussions in the Africa side also for the new investment coming in many of the countries. But overall, I can say power sector will continue to drive the business with order backlog of 70%, and that will be made in the next couple of years. But our interest is to divert more and more into seller jobs in steel sector, mining sector. And then preferably in other sectors, which will come up oil and gas. And that is how we accept a target of INR 2,000 crores this year and that should be reasonably possible with an opportunity sales of nearly INR 30,000 crores for the current year. Thank you very much.

Thank you. On behalf of Ashika Institutional Equities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.