Hi. Good evening, everyone.

On behalf of DAM Capital, I welcome you to the Q2 FY26 earnings call of Engineers India Limited. We have the call today being represented by Mr.

Sanjay Jindal, Director Finance; Mr. Suvendu Padhi, Company Secretary and Investor Relations; Mr.

R.P. Batra, Executive Director Finance and Accounts and IR; Mr.

Amanpreet Singh Chopra, Senior General Manager, CMD Office and IR; Mr. Vivek Midha, Senior General Manager Marketing, BD and IR; and Ms.

Sneha Narula, Senior Manager, Company Secretariate and IR. At this point, I'll hand over the floor to Mr.

Jindal for his initial remarks, post which we'll open up the floor for Q&A. Thank you and over to you, sir.

Thank you, Ms. Bhoomika.

Good evening, everybody, and a warm welcome to all the investors who are attending the investors call. We have declared our financial results for the second quarter ended 30th September 2025 today.

Our order book status has reached its all-time high and stands at Rs 13,131 crore as on 30th September 2025 as compared to Rs 12,145 crore as on 30th June 2025. Order inflow in EIL up to second quarter of financial year 25-26 stands at Rs 3,765 crore.

We have declared results of quarter and half year ended September 2025 on 14th November 2025. As regards to financial performance for three months ended September 25, the company has registered turnover of Rs 900 crore vis-a-vis Rs 676 crore in the second quarter of the financial year 24-25.

Turnover from consultancy and engineering segment stood at Rs 411 crore and from turnkey segment at Rs 489 crore. During the current quarter ended September 25, the company has recorded profit before tax of Rs 150 crore and PAT of Rs 115 crore in comparison to Rs 100 crore and 79 crore, respectively, during the second quarter of financial year 24-25, showing an increase of 50 50% in the profit before tax and around 45% in the PAT.

Notably, EPS for the quarter ended September 25 stood at Rs 2.04 vis-a-vis September 24 at Rs 1.41. Operating margin during the second quarter of financial year 25-26 stood at around Rs 102 crore, that is 11.3%, vis-a-vis Rs 47 crore, that is 7%, during the second quarter of 24-25.

EBITDA, including other income, of the company during second quarter 25 stood at around Rs 160 crore, EBITDA margin is 17%, in comparison to 110 crore, EBITDA margin 15%, during the second quarter 24. In the first half year of 25-26, the company achieved a turnover of Rs 1,757 crore in comparison to Rs 1,287 crore in the first half year of 24-25, showing an increase of around 37%, with turnover from consultancy and engineering segment amounting to Rs 819 crore and Rs 938 crore in turnkey segment.

For the half year ended 30th September 2025, the company recorded profit before tax of Rs 243 crore and profit after tax of Rs 185 crore in comparison to Rs 174 crore and 134 crore, respectively, for the half year ended 30th September 2024, showing an increase of 40% in PBT and around 38% in PAT. Operating margins, first half year of financial year 25-26, stood at around 9.3%.

EBITDA, including other income, of the company for the first half year ended 30th September 2025 stood at around 265 crore, EBITDA margin is 14%, in comparison to Rs 194 crore for the first half year ended 30th September 2024. The company is maintaining a healthy EPS of Rs 3.29 for the first half year ended 30th September 2025.

On the consolidated front, the company earned a profit of Rs 83 crore for the quarter ended 30th September 2025. For the half year ended September 25, the profit stood at 149 crore.

Thank you. Now it's over to Ms.

Bhoomika, to you.

Sir, we'll start with the Q&A?

Yeah.

Sir.

Hi, sir. Thanks for taking my question and congratulations for the very strong execution which we have done.

Now, my first question again on execution: we have already done kind of 33% growth for first half to first half, and I recollect you guiding about 20% plus for full year growth. Now, are we changing that stance since the execution has been quite strong in H1?

Just first thing wanted to understand on the guidance, and second on the order prospects for next six months. We understand that we have won one international consulting order again in Africa which you announced about 600 plus odd crore, and H1 intake is roughly about 37 odd 100 odd crore.

What is the full year target now, and what are the prospective orders, and on the execution are we changing our guidance?

For the guidance purpose, in the turnover, we are giving guidance of 25 plus percent, 25% plus, and we will stand by our margins of segment profit of around 25% in the consultancy business, and in the LSTK, we will maintain 6% to 7% segment profit. For the rest of the portion, Mr.

Vivek Midha will answer.

Hi, Amit. This is Vivek.

Hi, Vivek.

Just to update you on the business prospects of it. As of today, we have already crossed 4,000 crores, okay?

We are moving towards our last year's target, 8,000 crores, well they are going to definitely cross that 8,000 crore mark and hope to get more than that. Internationally, when you're talking about this year, we have been able to secure around 1,600 crores from overseas.

This year in the consultancy segment, overseas has contributed more and we are targeting few major projects more in months to come, you will hear more information on that. At the same time, we are working in the domestic market, prospects are good.

We will definitely cross the last year's mark and it will go beyond that, definitely.

That's great to hear. One thing is that you highlighted 1,600 out of 4,000, that is 40%.

Are we eyeing for 40% plus consultancy contribution in the 8,000 plus order inflow which you are going to have this year?

It would definitely be as part of consultancy. It normally remains around 50 40% to 50% within the consultancy segment.

Overall, it would be somewhere around 25 20% to 25%.

Right.

In the overall, yeah.

Understood. Second question, I was just observing the revenue from consultancy overseas, which was kind of 85 to 100 crore last year quarterly run rate, and now this year it is about 70 to 75 crore quarterly run rate despite the overseas consultancy order book has been massive.

We won massive orders last year also. Any particular reason of this not picking up?

In fact, it has declined the overseas consultancy revenue this year.

Actually, till now our major client was Dangote Refinery in Nigeria, and we were getting turnover from our Mongolia business also. Now these projects are going to be taper because the work has been completed.

Since we have got good order in the 24-25 itself and the foreign territory, so that business has started taking on. We are confident that in the next quarter you will see the results of massive order book in the foreign territory.

Understood, sir. Are we targeting the similar 50-50 mix, or since the turnkey was very strong this quarter, what is the mix we are expecting for this year now?

On annual basis, it will be 50-50 or 52-48%. At most.

Understood. Lastly, sir, on the losses from associates, I am assuming that this is because of the shutdown in Ramagundam.

Just an update on that because I think H1 basis the losses has been massive, and on the PAT level, the numbers are lower because of that despite very strong performance. Just wanted to understand and update on Ramagundam.

Thank you.

In this quarter, Ramagundam project was under shutdown for 45 days out of 90 days. In this quarter also, we have loss of around 25 crore.

In the third quarter, that plant is going well, and we are expecting profit in the third quarter. We are definitely expecting the third quarter will give profits.

There were some technical problems, the plant was under shutdown for 45 days in the second quarter.

Understood, sir. Thank you so much for answering the questions, and all the best.

Thank you.

Yeah. Good evening, sir, and thanks for the opportunity and congratulations on a very good quarter.

Sir, first question is on the EBIT margin for the consultancy, in this quarter it was 28%. Is there any one-off which we should be aware of?

Sir, I could not understood actually.

The EBIT margin on the consultancy is 28% during the quarter. Is there any one-off in

You are saying about the write-back?

No, no. The margin on the consultancy, EBIT margin.

Sir, actually in this quarter, we have profit segment of 28%, but if on the half-yearly basis, it is around 25%, and we are sure that we will be able to secure our margin of around 25% on overall basis in the consultancy segment, and in the LSTK segment, we are maintaining the segment profit of 6% to 7%.

Understood, sir. Is there any outlook on the domestic consultancy order inflow or pipeline?

There was some IOCL Paradip Phase 2 project, is the tender out?

Mr. Vivek Midha will answer.

With respect to the IOCL Paradip, there's no tender is going to come out. We are in the phase one of execution.

As soon as the phase one is completed, they will have their management approval, and they will proceed with the phase two. Both the phases has been awarded to us.

It's that we'll get the work order for the phase two subsequently when the phase one is completed. Phase one is progressing at this point of time.

Understood, sir. Is it right to say that, sir, phase one was merely 100 crore worth of project, and phase two will be much, much larger?

If I'm not wrong, it's should be around 900 crore. Will it be booked in this fiscal

Sorry?

Will it be booked in this fiscal year, the balance phase two, or next year, next fiscal?

It should come towards the end of this fiscal year. Towards the end, it should come.

Because the phase one is in progress, and we're going to submit the study reports, and then they will take the board approval and then decide on the proceeding on the job. We're hopeful that by the end of this financial year, it should be done.

Phase one should be done and they should get the clearance, or otherwise, it would be early next financial year, it should be awarded.

Sir, any other large domestic order in pipeline which you're looking at in H2? Or FY27?

You have this Andhra refinery which is going on. We are working on this feasibility study.

Hopefully, the second phase if this study is accepted, then they will come with the implementation phase. Similarly, there's a petrochemical complex in BCPL, they're thinking of expansion, tender could come.

There could be some small specialty chemical projects. Various studies are being done by IOCL, and they're thinking of implementing the various specialty chemical projects.

Those are expected to come in this financial year.

Understood, sir. Thank you and all the best, sir.

Thank you.

Thank you.

Yes, sir. My question was on the write-back that we have done, I think about 35 crores of write-back.

Can you, sir, give a light on as to which project this was and when was the provision actually made in the past for this 35 crore amount?

Actually, this provision relates to one of our project, Dangote Refinery, Nigeria. That provision is kept for our defect liability period.

Whenever this defect liability period is over, client releases our bank guarantee and then provision is reversed. Client is reversing our bank guarantee in the piecemeal basis.

In this quarter, we have got the provision reverse of 35 crore based on the reduced liability on this project.

Sir, like you said it's on a piecemeal basis, is any other amount that we are expected to receive on this?

Small portion is balance, that will be released in the due course of time, maybe in this quarter or next quarter.

Okay. Sir, one last question.

Sir, like in our last concall, we had mentioned that there were several projects which were in advance negotiation stage. This quarter orders, have those materialized, or still we're expecting those kind of orders?

You can see our order book of 13,000 crore. Definitely, some of the orders has been matured, and in this quarter, we have already got the order of 3,600 3,700 crore.

Definitely our efforts are fruitful, and we have got some of the orders.

Okay. Thank you, sir.

Yeah. Namaskar, team, and dhanyawad, sir, ye opportunity ke liye.

Sir, firstly we were also looking for some diversification in terms of moving away from the oil refining space and then looking for the hydrogen opportunity going ahead. Sir, where are we, sir?

Some work was also done earlier, which were informed from forum by the MD. Correct me there, sir, if I have the information.

With respect to the dekhiye, diversification definitely we have done lot, diversification in this segment. We have, moved out of, basically the hydrocarbon.

Today, our infrastructure business is almost more than, the hydrocarbon business, that's a major diversification. With respect to the new areas which we have talked about like hydrogen ho gaya ya or coal gasification ho gaya, or, bio-refinery ho gaya, to bio-refinery you know that we have already done one bio-refinery, Numaligarh bio-refinery.

This year, we have been, recently, we have been awarded one assignment for coal gasification, from the coal to SNG by NTPC. Wo humein abhi mili hai assignment which we are executing.

We're anticipating this kind of assignments, from other clients also, and and bidding in the bidding process for various projects of this sort.

Right, sir. Sir, when we look at our capital investment in the various JV, Ramagundam Fertilizers is there, and then, sir, we have a small stake in the Numaligarh Refinery also.

What has been the contribution if any in terms of any dividend, and how is the performance there? I think so our major investment is for this 4% stake to the tune of 830 crore.

NRL dividend?

It will be coming in the next quarter. NRL dividend will be coming in the next quarter.

They are basically in the expansion phase, they are giving the limited dividend. In the last financial year, they have given the substantial dividend, but going forward, they are investing the money for their new project.

Whatever dividend they have declared for the last financial year, that will be coming in the next quarter.

Okay. What was the amount, sir, last year?

How much we have received?

In this year, around 20 crore will be coming.

Okay. Is there any steps, we will hold on to this minority stake of four 4% in the total realm of things?

We are only holding 4% of the entity. Or we can also look forward for divesting this stake?

Actually, at this moment, we have percentage of 4.37%, and whenever opportunity comes, we will review it.

Okay. Also, sir, we have two upstream assets investment also under NELP-IX.

Already you have mentioned that during the bidding stage, that project cost was envisaged at 300, 300 crore, as mentioned in your presentation. We have not invested anything on these assets as of now?

No, we are not investing any further. Basically, whatever investment was done is done.

We are not anticipating any further investment in this block.

Lastly, sir, with the reversal of this 35 crore because of the Nigerian no defect project which you mentioned to the earlier participant, that means that has moved up the profit by that amount. We need to factor in that number in terms of the profitability.

That is the one-off,

Actually, reversal of provision is a continuous process. Because provisions are reversed whenever defect liability period of the projects is over.

It's a routine business for EIL. Some of the provisions are created and some of the provisions are reversed.

This is not a cause of worry for EIL.

What is the net impact? How much provision we have made, if any, for this quarter or for the first half, and how much have been reversed in totality?

For this quarter, it is reversed on overall basis, I think it is minus 12.

Yeah.

In the last quarter, it was on positive side. Sometimes it is on positive side, sometimes it is on negative side.

As per contractual provision, we create the provision, and as per the contractual provision, we write back the provision. This is a continuous process over the tenor of the project.

The provisions are created when the project is completed, and in case no liability does not come, we reverse that. It's basically a continuous process.

In the coming times, some more projects are going to be closed or defect liability is going to be over. It's a continuous process.

Right, sir. Sir, lastly, on the cash on the books, and what steps are we taking, how can we create value through that cash through sharing with investors, or what is the best possible way?

What is the closing balance, the cash balance we have, and how are you looking forward to deploy that asset?

Currently, all the cash is being deployed as per DP guidelines, and we are constantly looking for the investment opportunity where the capex are lower and standalone facility. Whenever we get a good opportunity, definitely EIL management will consider for the investment of the same like NRL and RFCL, and we are constantly looking for.

Closing balance, sir, can you confirm? Cash in book.

900 to 1,000. It is between 900 crore to 1,000 crore.

Right. Thank you, sir, all the best.

Okay. Thank you.

Good evening and thank you very much, and congratulations on your results. If you look at the split between the turnkey and the consulting income, if your turnkey revenue share is higher, it is a drag on your margins, right?

You are talking about single digit margins. As a strategy, how do you view the split between the two revenue streams from consulting and turnkey, and how do you see your overall strategic objective of maintaining ROCE for the business based on this blend?

Actually, definitely, we have more segment profit in consultancy segment and less in LSTK business segment. In the Indian economy, there is limitations on the consultancy business because at one times, mega projects are not more than two or three.

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