Hi, very good afternoon to all of you. We have with us entire management team of Engineers India today to discuss their Q3 results and then which will be followed up by question and answers.

We have with us Mr. Sanjay Jindal, who is a Director Finance; Mr.

Suvendu Padhi, who is a Company Secretary; Mr. R.

P. Batra, who is Executive Director; Mr.

Vivek Midha, Chief General Manager Marketing and BD; Mr. Mandeep Chopra, who is a Senior General Manager; and Ms.

Neha Narula, who is a Senior Manager. Without further ado, I'll hand the call over to management for the opening remarks.

We'll follow that up with question and answers. Over to you.

Thank you. Good afternoon, everybody, and a warm welcome to all the investor who are attending investor call.

We have declared our financial results for the third quarter ending 31st December 2025 yesterday. As on 31st December '25, company has unexecuted order worth of Rs 12,538 crore comprising under consultancy segment of 7,500 crore and under turnkey segment of 5,000 crore approximate.

Order inflow in EIL up to third quarter of financial year 25-26 stands at Rs 4,267 crore. Further, in January 2026, the company has bagged an order of rupees around 3,250 crore, and the order inflow as on date stands around 7,700 crore.

Considering the above order inflow in January, the current order book stands at around 15,670 crore. This is the highest order book position in the history of EIL.

We have declared results of quarter and nine months ended 31st December 2025 on 12th February 2026. As regard to the financial performance for the three months ended December '25, the company has registered a turnover of Rs 1,194 crore vis-a-vis of 900 crore in the second quarter of financial year 25-26, while it was 750 crore in the third quarter of financial year 24-25.

During the quarter ended December '25, turnover from engineering and consultancy segment stood at Rs 474 crore and from turnkey segment at Rs 720 crore. During the current quarter ended December '25, the company has recorded profit before tax of Rs 395 crore in comparison to Rs 150 crore in quarter two of financial year 25-26 and profit after tax of 302 crore vis-a-vis of 115 crore in the second quarter of financial year 2025-26, showing an increase of 163% in PBT and PAT.

While comparing with the third quarter of financial year 24-25, during the quarter ended December '25, the company has recorded profit before tax of 395 crore in comparison to Rs 118 crore in the quarter three of financial year 24-25 and PAT, profit after tax, of Rs 302 crore vis-a-vis Rs 88 crore in the quarter third of financial year 24-25, showing an increase of 235% in PBT and around 243% in profit after tax. Notably, EPS for the quarter ended December '25 stood at rupees Rs 5.37 paisa vis-a-vis September '25 at rupees Rs 2.04 paisa.

Operating margin during the third quarter of financial year 25-26 stood at around Rs 337 crore vis-a-vis Rs 102 crore during the second quarter of 25-26, and operating margin is around 28% in the third quarter vis-a-vis 11% in the second quarter of 25-26. EBITDA of the company during the third quarter of the current year stood at around 406 crore.

EBITDA margin is 32% in comparison to Rs 160 crore, EBITDA margin was 17%, during the second quarter of the current year. During the nine months ended December 31st, 2025, the company achieved a turnover of Rs 2,951 crore in comparison to Rs 2,037 crore during the nine months ended 31st December 2024, showing an increase of around 45% with turnover from consultancy and engineering segment amounting to Rs 1,293 crores and 1,658 crore in the turnkey segment.

Up to 31st December '25, the company recorded profit before tax of 639 crore in comparison to Rs 292 crore and profit after tax of 487 crore vis-a-vis of 222 crore in the nine months of financial year 24-25, showing an increase of 118% in the PBT and around 119% in PAT. Operating margin for the nine months ended December '25 stood at around 17%.

EBITDA of the company for the nine months ended 31st December 2025 stood at around 670 crore, EBITDA margin is 22%, in comparison to Rs 322 crore, where EBITDA margin was 15%, for the nine months ended 31st December 2024. The company is maintaining a very healthy earning per share of Rs 8.66 paisa for the nine months ended 31st December 2025.

On the consolidated basis, the company earned a profit of Rs 347 crore the quarter ended 31st December 2025. For the nine months ended December '25, the profits stood at 496 crore.

Thank you. Now it is over to you.

Sure.

Yes, sir. Thank you for the opportunity and a very good set of numbers for the nine-month.

Sir, I have a question on actually the volatility in the most of our key KPIs last so many years. Although we have improved our order book position, revenue growth, but there is a significant volatility in terms of margin, in terms of revenue execution.

On a yearly basis, can we anticipate, given our order book position of 15,670 crores, we should be ending the year with 4,500 crores of revenue because fourth quarter, any which case, is strong quarter? Second, with respect to margin expectation on both the division, consultancy and turnkey, what sort of margin we should work with because it's very difficult to model some kind of margin in both the businesses and it's quite volatile, even more volatile than the gold and silver nowadays?

Can you make some qualitative detailed comment about the margin expectation for both the business as well as the growth expectation for the full year as well as the next year, what kind of growth rate we should assume in terms of order inflow, revenue execution, that will be quite helpful to assess the company's performance in coming years?

Let me clear. EIL is having revenue from the implementation of the project where revenues are always fluctuating in nature because it depends on the execution of project and status of the project.

However, as we have already told, we are the highest order book of the more than 15,000 crore, the EIL history. Definitely, with this order book, we will cross the figure of 4,000 crore at the end of financial year.

As regard the margins, EIL is successful in maintaining the segment profit of 20% to 25% on the consultancy business and on a routine basis around 7% in the LSTK OBE job. We are maintaining operating profit of more than 10% on regular basis.

Okay. The second is, sir, order inflow side, currently we have a 7,700 crores of order inflow till January, right, that you made in initial comments.

Can we anticipate, because quarter four generally tend to be stronger quarter, both revenue as well as the order inflow, we should end the year with 10,000 crore order book given the run-rate which we are seeing right now in our business?

No, we have received order of around 4,200 till December. Now another order of 3,200 is received in the fourth quarter.

Based upon this, we are giving target of more than 4,000 crore at the end of financial year. Definitely we will try to get more, but this we are expecting as a minimum target of 4,000 crore.

4,000 for the quarter four?

No, for the overall financial year. Because right now our financial figure is around 3,000 crore, and we are targeting more than 4,000 crore on the annual basis.

Okay. Any expectation you can guide us for the next year order inflow and the revenue estimate?

Dekhiye, order inflow this year you have seen that it is reaching around 7,700 as of today and we'll be touching more, we'll be crossing this. We already have one more month to go and we are anticipating few more orders to come.

At least we'll be crossing the last year's mark. That is definitely sure.

Next year also, we maintain the same kind of order book because two years we have consistently maintained, and we will be next year also be maintaining at least this much and we'll try to add 10% to 15% more in that figure. Market is dynamic.

A lot of projects are there and a lot of projects keep on discussing. It depends on how fast projects get finalized and settled during the negotiations with the clients.

It all depends, yes.

The last, in terms of execution period of the current order book, what is the time period? Generally, we tend to complete 40% of opening order book in terms of revenue, so that run-rate should sustain?

No, generally it ranges from 3 to 4 years. In the first year, in some of the project, it comes to 10% to 15% progress only because it depends on the timing when the order is received.

If it is received in the month of April or May, then we may get around 15% to 20% progress. If it is on the latter part, then only 10% is there.

On an average, 10% to 15% progress is there for the current-year orders.

Last on this data bookkeeping question, sir, this JV profit, which last year nine-month it was 70 crore, now it is 8.7 crore. Last quarter, you guided there is some shutdown and now the performance will improve quarter three, and we have delivered on that thing, 42 crores of profit in JV.

How we should think it's sustained going forward that line item?

We can expect more profit in the fourth quarter because at this time that plant is running on full capacity and from the first day of fourth quarter, it is running well. We are sure that this quarter will generate more profits to EIL.

Sir. Thank you very much for answering all my questions.

Thank you.

Okay. Thank you.

Yeah. Good afternoon, sir, and thanks for the opportunity.

My first question would be, what would be consultancy order book after including the order for Dangote refinery? Is the number will be around 10,000 crore?

Order book position is 15,670 total. From consultancy, it is around 10,700, and from the LSTK OBE, it is around 5,000.

Understood, sir. Do you expect this Dangote order, which you won in January, to move into execution in FY '27, or do you think in your opinion the execution will go in FY '28?

It will go up to 2029, because 3 to 4 years of cycle is there of execution.

My question is, sir, when do you think to start?

Do you think to start in FY '27? The execution is already started.

Consultancy services have already started. We have already started working on this project.

Engineering is on this project. I think project cycle is around 36 to 42 months, execution cycle.

Understood. My second question, sir, as per media article, I think there is a Guyana refinery where we are in discussion.

Can you just help us with how advanced the discussion is and what is the size of this refinery? Is it a smaller refinery or big refinery?

That what we understand from the published reports that this Guyana refinery is a very small refinery and the country is looking for the investment in this refinery from various investors. That is the initial stages of discussion.

We don't have much information on this as of to this point of time. This is one of the prospective refinery, but it's a smaller 30,000, 20,000, 35,000, 30,000 BPSD refinery that is sufficient for their country's requirement.

This is at the initial conceptual stage. The government of Guyana is yet to take decision on this, and we are yet to hear from the Guyana side.

My last question on the status of IOCL Phase 2 order, I think which you said that once the Phase 1 is complete, move to Phase 2, you'll book this order. Do you still expect it to book in this fiscal or do you think this will go in the next fiscal?

No, I believe this would go in the next financial year because the earlier project is almost complete. They have given the study, and I believe that is under their management decision to take the investment decision.

That's the Phase 1. After they are done with the investment decision, then they will give the Phase 2 award.

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

Thank you.

Thank you.

Hi, sir. Thank you, and congratulations for very strong numbers.

Thank you.

Sir, my first question pertains to clarification on order inflow. Did I understood correctly that we are saying that this year it will be 8,000-plus crore and going forward also it will be a growth on 8,000-plus crore in terms of annual inflow?

Definitely, till time we have received order inflow of around 7,700 crore and time is available to add more business, definitely we will cross 8,000 crore.

Sir, would you like kind of sustaining this number for FY '27, FY '28, or any range thereon, and also in terms of pipeline, if you could highlight for next financial year in terms of the overseas consultancy, specially we wanted to set up office in Middle East, how things are panning out there, and are we planning to sustain 8,000 annual number for next year also?

Just to answer your question, you have seen that we have already sustained, it's already proved that we have already reached 7,700. There's one more month to go, and there are many projects under discussion.

Sometimes these gets materialized. Even the many PSUs would like to settle the contracts before the March, we hopeful that something would get realized and we'll cross that 8,000 mark.

That means for the last two years we have sustained around the 8,000, 8,200 last year which was there, and it's almost a similar range we'll be reaching. Will be a sustainable figure.

We'll try to work on this to increase it in the future years, in the further years. At the same time, with respect to what you're talking about the overseas, overseas we are putting a lot of focus.

You have seen that we got major projects from Nigeria, this Dangote refinery. We also got the fertilizer projects.

We are also targeting many other projects in many other zones, including the Middle East, wherein Abu Dhabi is there. We are also in the initial stages of Saudi Arabia.

We will hope for the best. Kuwait, we are getting some assignments.

Oman, we are getting. All these areas we are working on.

Overseas you'll get a good growth in future.

Right. Sir, second question, our current book of 16,000-plus, you said more than 10,000 is already consultancy, which is 65% of total jobs you have in hand.

Is it fair to assume that probably there would be a lot of operating leverage also, and the mix would shift towards more consultancy execution over next 24 months, and that would lead to good margin improvement?

All these projects have been awarded. The execution has just started.

Next year would be the initial stages of the project, would be primarily the engineering phase would be there. Quite a good booking is expected, invoicing in that.

It all depends on the progress of the project. We anticipate a good execution and as per the schedule what we have proposed and what we have considered.

We are anticipating good invoicing and execution in that stage unless there is any issue.

Right. Sir, what's the portion of infra orders in the book currently?

Currently, in the order inflow it's around 25%

to 30%. You expect that to continue in fact for the upcoming

orders? No, definitely.

That would remain, yes.

Sure. Sir, lastly, for the quarter, after adjusting for this 236 crore revenue and 213 crore profits which you have given, I think the EBIT margin for turnkey is coming around 12% if I'm not wrong.

Is it the correct number, and if it is, was there any one-off benefit for this quarter for this kind of EBIT number?

You are correct basically. After excluding that, the margins in the turnkey segment comes out to around 11%.

As Director Finance has already indicated that in the near term we are expecting a margin of around 7% in the turnkey segment for a longer period and for the consultancy between 22% to 25%.

Right, but this 11%, 12% was normalized margin. There's no one-off, right?

No, on a longer period it will be around 7%. In one quarter, there may be basically more or less margin, but overall it will be in the range of 6% to 7%.

Sure, sir. Thank you so much.

Thank you.

Thank you.

Hi, sir. Very good evening and thanks for the opportunity.

Just want to ask on our EBITDA margin in turnkey segment that I can see in the nine-month FY '26 margin shoot up from 6%, 5% to 6%, to 19%. What key growth drivers of the margin that exploded in this level?

Sir, can you repeat the question and be a bit loud, please, and slow?

My question is on what kind of key growth drivers in the margin that we achieved so that the margin exploded from 6% to 19% in nine-month FY 25-26 in turnkey segment?

In this nine months, we have got a change order from our client. In one of the major project, we were keeping provision for the penalty for the delay, or you can say liquidated damages, but we have completed the project within the extended time period given by the client.

Client have issued the mechanical completion certificate without levy of any sort of penalty to EIL. We have reversed the provision.

That's why there is a impact of around 226 crore on the turnover and 213 crore on profit side.

Sir. Got it.

Thank you very much.

It is a routine business. It is a part of routine business to EIL.

We continue to get change order in the projects.

Are we expecting these kind of one-offs in the further, because we are having a historically high order book as of now?

We are doing a lot of projects and every time we are getting change order from the clients and we are getting additional price for the work done also. It's a part of routine business to EIL.

Sir. Got it.

Thank you very much for answering my question.

Thanks for the opportunity, sir. Am I audible?

Yes, sir, you are.

Yeah. Sir, my question is in connection to the earlier participant question.

Sir, you mentioned that the 226 crore were recognized in the quarter three because of the some non-penalty from the order. Sir, this is a routine practice.

You said that it is happened every quarter or sometime or if we executed the order and recognition happened in this quarter? What happened?

Kindly explain these things, sir.

Sir, EIL is doing so many projects and every projects have their deadlines. Whenever project starts to get delayed, we made a provision for the delay portion.

As per terms of contract, in case any PRS or liquidated damage is there, we keep provisions. We try to complete the time within the extended period also, and then we apply for the time extension to the client.

In most of the cases, we get the time extension from the client. Whenever time extension is got, we reverse the provision for the penalty.

This is the routine business and as per acceptable accounting standard practice.

Sir, in which quarter the provision was made, and was it informed to the shareholder, and I don't know whether that it was informed that the 226 crore rupees provision was made because of the late execution of the order?

Sir, it is a part of our routine business and it is shown to the statutory auditor and other auditors also. It is not a question we show in the balance sheet which project is going delayed.

It is part of our routine business.

No, no, sir. Sorry, I'm not asking for the name of the project, but whether the execution was done and the provision was made, in that quarter then the particular quarter of the

Sir, I have told you it is not only for one quarter.

No, no, no, no. It's a positive surprise for the investor, but it's a shock for us because we can't predict the result because of this.

Sir, it is not a surprise for the investor. It is the routine practice of the company like EIL where revenues are earned from the implementation of the projects.

Whenever contractual obligations are completed, any kind of provision which is made against the contractual obligation is always reversed and it is a routine practice and it is done on quarter-to-quarter basis. Sometimes amount may be more, sometimes amount may be less.

If amount is more, it get noticed. Otherwise, it is done on routine basis.

Is there any provision made in the current quarter? For any project No, because there was a reverse, and when there was a material amount of the reverse, the profit is inflated or it looks very high in comparison to the earlier quarters.

Sir, that project was itself more than 6,000 crore rupees. Sir, that's why amount is higher.

The earlier the

Provision is higher. If a project value is higher Which

with due respect, sir with due respect, sir, with due respect, we are saying that whenever the provision is such high amount, the provision is made, please inform to the investor and that's why the profit of that quarter goes down

and

this year this quarter the profit is higher than the earlier quarter.

Sir, if you try to listen, then you will get the answer. Sir, we have informed to the investor.

You kindly see the notes to the accounts. In the notes to the accounts, it is clarified.

I think you have not seen the notes to the accounts.

No, sir, I am not talking about the current quarter, but earlier quarter when the provision was made.

Provisions are made during the duration of the contract. Contract duration is from 36 to 42 months.

During that period, every quarter the provisions are made. When the project is completed, no liquid damages are levied, that is being written back in the current quarter.

Provisions are created over a period of time, not in one quarter. It created over a period of time.

The contract duration is 36 to 42 months.

Provisions are always shown in the financial results.

Sir. That's all.

Thank you. I am not happy, sir.

Sure.

Sir, you should happy with this kind of result, sir.

Yeah. Hi, sir.

Good set of numbers. Congratulations on that, and given the nature of the business, the execution is fairly decent this time.

My question is that when we are just looking at it from a pretty longer-term perspective, we have a very healthy order book to be executed over next 3 to 4 years. In terms of incremental order book, you also mentioned that we are looking at quite a healthy scene from the Middle East, especially now that we have office in the UAE, right?

What kind of traction are we seeing over there, and what kind of order booking are we looking at on an incremental basis? Is it something which is healthy and staying at a higher rate than what we have normally seen in the past, or it's just pretty much normal what we see?"

Gentleman, it is like this. We are not saying that it is only for the Middle East.

It is from the overseas we'll be targeting more. We have shifted our focus from the domestic to the international market also as a strategic outreach of the international markets.

We're putting a lot of efforts on the international market to get more business. At the same time, we're working in the Indian market also.

Wherever the projects are coming, we are just focusing on those projects and getting those projects. The approach is the aggressive approach that has been adopted in both the segments.

We are working towards it. It's not only the Middle East, it would Nigeria also, Africa, specifically in Nigeria, we have been very successful in this business.

We'll be targeting more projects in that zone and in that continent, as well as in the Middle East region. It is including Kuwait, Saudi, Oman, Kuwait.

In all those regions, we are working, as well as in the South America also we are working. It is the continuous effort to increase our business and presence in these segments and try to get more business.

Okay. How are the project announcements or interest over there, considering the oil has been Sorry?

Projects are always there. What happened is, in the Middle East countries, there is a process of getting yourself empanelled with the organizations, with the oil refining companies or oil producing companies.

Simple example is ADNOC. ADNOC is a group of companies in Middle East, especially in UAE, which handles refining, petrochemicals, onshore oil and gas, and all those segments.

We are empanelled with them and for providing the engineering services. Then you get into the competitive bidding of their all kind of projects because all these companies are expanding their oil assets, and there will be a lot of project.

Some could be the grassroot facilities, some could be the revamp, and some could be the modernization. It also includes the studies.

These kind of assignments are the continuous activities which are going on. We are very much focused on those and we are empanelled with these countries and getting a lot of inquiries and working on those.

Okay. Specifically towards the international markets, we have shifted some of our strategy to focus also on the international side.

What have we seen that Yeah, sorry? Sorry, could you speak Yeah.

What have we seen in those markets that we have now started to focus a bit more over there as well? I understand that we have always had presence outside of India, but it is just over last couple of years that I am seeing more traction over there.

What are we seeing on the ground that is because of which we are focusing additionally into those markets as well?

First is, if you talk about the Indian market, Indian market is mostly the public sector companies, which are mostly on the competitive basis and L1 basis. There's no focus on the quality.

Means, if you go into competitive environment, it is L1 always matters. In the international market, quality also matters.

They will always give a preference to the quality, experience, and capability of the company. Wherein in these markets this gives us an advantage.

We know that we have the experience of working in India, almost six decades of experience, and we worked on a lot of complex projects. Maybe if you can see the Indian refining and hydrocarbon sector, we're involved since its inception and done a lot of projects and a lot of modernization, a lot of troubleshooting.

Nobody has this kind of experience anywhere else. This experience always gives us an advantage in the international market because there also they have a lot of new projects as well as a lot of development projects.

Specifically in Indian conditions, the projects have been expanded in various phases. It's not in one go all the plants have come.

One refinery will be set up at 5 MMTPA, then it will be graduated from 5 to 15, 15 to 25. That's how they expand.

That kind of experience in the international market is very limited. This kind of experience and the nuances of working in these kind of plants and revamp projects gives us an advantage in international market.

The database we already have because of working on these projects and the experience of the people and the manpower which we have, and we retain our own permanent manpower. That's the core of our business.

That's how we get the advantage in the international market wherein your experience and capabilities are more preferred with respect to the price.

Wonderful, wonderful. Great.

My second question is, have we provided whatever is related to the Pay Commission for FY '26 and FY '27 wherever is applicable, or the impact that may be there in the FY '27?

Yes, we are keeping the provision for the Pay Commission. Whenever it will come, we have sufficient provision.

It's already provided, and any major salary jump or something, what kind of impact on the margins it can have over next one or two years at least?

I think impact will be tell only when the exact details of Pay Commission is known, but based on past experience, we are keeping provision for the same.

We have already started to provide for it.

We are already started.

Okay. I'll join back the queue.

Thank you.

Thank you.

Hello, sir. Thank you for the opportunity.

I had a question regarding the Dangote order. I believe we had two press releases on this.

One was in November regarding the Dangote fertilizer complex, and another was the Dangote expansion project in Nigeria in January. I just wanted to clarify that an amount was not written for the fertilizer complex.

Is it included in this 3150, the 3,150, or is there a separate value for it?

No, madam, that is a separate value and that has been declared in the earlier I think in the earlier reporting also. It's around $70 million.

It's around $70 million, something around 600 crores. This is not included in 3,200 crores which we have just received, because these are two separate projects.

One is a fertilizer project and another one is the refining project.

Expansion project, correct. Where is the 600 crore included, sir?

This is the part in Q2 FY '26 for the 615 crores order, correct?

Let me check.

Which was received in September, if I'm not wrong.

Just a sec. Just a sec.

Just a sec. Ma'am, this has been indicated in Q2 '25-'26.

This is the 600

Oh no, sorry. Just a second.

Sorry. It's Q2 25-26, in the overseas you can see.

It's 61504.

Got it. Correct.

Another question that I had was around the guidance for the revenue that you're giving for FY '27. I believe and I expect that the execution will be much stronger by '27.

Definitely, ma'am. Execution will be much stronger and

If you could give us a broad number, it'll be really helpful.

Madam, that totally depends on the progress of the projects achieved during the year

and

definitely, based on the progress in the last month of this financial year, we will give some guidance for the next year. Till now, we are giving guidance for this current year only.

We will be reaching more than 4,000 crore in terms of revenue.

Okay. Got it.

Definitely 4,000 crore will be the minimum target for the next year also. We are sure that we will add some more figure to this.

Got it.

We will in position to tell only after completion of this financial.

Got it. Thank you so much.

That's it from me.

Hi, sir. Thanks again.

Sir, one clarification on the higher other income. What was included here, and was there any dividend from NRL just

Yes, we have received dividend from the Numaligarh Refinery to the tune of 24 crore. That has been included in the third quarter.

What's the steady state run-rate for dividend income we should expect for next year for NRL?

NRL is giving on the same pace because NRL is going into expansion and expansion is being carried out, dividend income is giving on routine basis because he needs money to complete the project.

Right. Sir, second, update on Ramagundam.

I hope that plant is stabilized now. What is the expectation for next year and few 4Q in terms of performance in Ramagundam fertilizer plant?

At present, Ramagundam plant is running on full capacity and till now it is 13th Feb, plant is running well, around 100% capacity. We are sure that the profit will be continued to be realized in the fourth quarter also and next year so.

Plant is almost stabilized.

Right. Sir, lastly, would like to understand more on the infra order inflow pipeline.

I think in the past you have highlighted taking some orders for IIT Jammu Kashmir and some training complex order from ONGC, and I think there was some data center order also. Just wanted to understand the infra pipeline in terms of Are we going to get more data center orders or how are we select that where we want to bid, in terms of getting the infra orders?

Some more color on this infra part since this is becoming bigger in your order book will give us much better understanding in terms of your addressable market and what's the potential here.

Going on this year in the till this quarter, we have got various orders from the infra segment set on OBE basis as well as depositary basis. Some of them are from the IIM Jodhpur, one is from the IIT Jodhpur, one is from the IIM.

Another is from ONGC convention center, which we have done where this India Energy Week has been done. Recently, we've got an order from NTPC for their township.

These kind of niche segments we are targeting. We don't go into the regular residential building construction.

We go into the niche areas wherein the client wants to create a township, wants to create a research and development facility, or wants to create a convention center. These kind of niche negotiated contracts we get into.

Similarly, at the same time, the airport, Leh airport we are doing, which is a green airport, which we have designed. At the same time, just the airport which is coming in the UP in Noida, we were involved at that.

These are very niche areas wherein we work. Some of the data centers we have done in past like SBI, UIDAI, the SBI and the RBI.

All these are the data centers wherein we have got involved as a consultant, as a project management consultant. These are the areas we have been working.

Apart from that, we are working into the projects wherein green intelligent buildings are there, water and wastewater management projects are there, the agricultural facility which has been created in Haryana, we were the consultant for designing that facility. These kind of niche projects we have been involved in infrastructure segment.

Right. Sir, lastly, on the recently announced CCUS allocation in the budget for next 5 years, roughly about 20,000, and I understand that we had a MoU with NTPC to do some collaboration for carbon capture and storage systems.

Wanted to understand your thought after this policy. Are you seeing any pipeline for you, and

Listen, NTPC, we have various agreements. One is for the engineering services wherein we have to work for various development projects like they have been working on the green urea, green ammonia projects.

They have been working on the projects of their power plants wherein they need some sort of engineering services like structural audit of their facility. These kind of projects we do.

We have also signed another agreement with them for offering them inspection services. We are also in talks with one of their subsidiary for offering the inspection services to their client, because there are a lot of projects they have and they needed our support.

That's how we have entered into this agreement and we are supporting each other. We have also got one of the assignment for a coal gasification project for them.

They're setting up a coal gasification plant, we are working on that as a consultant for them. This kind of arrangement has been done under this MoU.

Right. Any carbon capture you're looking since this policy is in place?

Will it be a viability gap funding or any understanding on

On the carbon capture, internal studies are going on, and we are in talks with some of the technology providers to see how we can synergize our offerings with their technology. It's right now at a study mode, but definitely something will come up from that also.

Right. Sir, lastly, on the inflow, is it fair to assume that consultancy still will be the dominant share in the order inflow for next year?

It is always in the same range. Sometimes consultancy crosses the 50% limit.

It's almost remains in the same range. This year, it is expected to be a little bit more.

That will get concluded only on 31st of March because there's another order is realized from somewhere. We'll see.

It depends.

Sir, the current book, what is the duration for execution for consultancy orders and same for the turnkey orders for the 16,000 crore book?

Generally, these projects are ranging from 3 to 4 years.

Both side, turnkey and consultancy?

For both the projects. These are the long gestation projects and generally runs from 3 to 4 years.

Sir. Thank you so much, sir.

All the best.

Good evening, sir, and congratulations on a good set of numbers. Sir, it's not much of a question, but rather some suggestion that if we could provide some sort of a bidding pipeline.

I'm not saying that we say the name of the projects, but something of the sort that some number of projects in the say 100 to 150 crore range or 150 to 300 crore and that we are bidding for. That would actually help the analyst community, would something of this sort be possible, sir?

Sir, this kind of number is very difficult because we depend on the investment by the oil companies. Recently, the oil companies have indicated like IOCL has indicated their 32,700 crore investment.

ONGC has indicated 30,000 crore. BPCL has 25,000 crore.

These are the upper investments which may come in the future from their side. This could be multiple projects.

This could be a multiple smaller projects. It all depends.

Wherever they come out with any tender, any mega project, we'll be bidding for it. It's very difficult to tell the exact number what we are bidding for.

Sir. The other thing, sir, I think last quarter also we have seen some unexpected income on account of some BG refund, and this time we are seeing a very big impact on the profit.

It's a good impact only. It's a positive surprise for the investors, but this is on account of some LD reversal, you're saying.

Was this for some particular project or multiple projects we have recognized this time?

This figure is for one project only.

Okay. Sir, I was thinking that if you could given any other projects where we have this sort of a major reversal that we may see coming, so that was my question, I think.

It depends on the client because we are doing a lot of projects for the client, and whenever schedule time is gone, we start keeping provision for the LD, and whenever project is completed, we apply for the time extension to our clients. Most of the time we get the time extension from the client and we reverse the provision.

This is the routine practice of EIL as per accepted accounting principles. It is done for each and every project.

Sir, on the bookkeeping side, say if you have made a provision, where would this figure be appearing on the bookkeeping side?

In the provision, warranty and guarantee.

Okay.

Provision for guarantee and warranty, it is for the contractual provisions.

That helps. Okay.

Thank you, sir. That's all.

Yeah. Thank you for the opportunity.

My first question is, has there been any initial discussion in the carbon capture opportunity post the budget or, in your opinion, this will go in FY '27?

Even before the budget announcement, we are working on carbon capture initiatives and we are regularly in touch with some of the technology providers to see our service offerings in this domain.

Okay. My second question is, do you think that we have exhausted the Indian pipeline in petchem for refinery and consultancy in near term?

We have exhausted? No.

Hello?

Hello.

What is your question?

Do you think that we have currently exhausted the Indian pipeline in the petchem for refinery projects in the near term?

No, no, no, no, no. Not at all.

Not at all. Not at all.

If

you see the figures, there are a lot of capacity expansions and petchem expansions has been lined up by government. Government has already indicated that they are going to increase the refining capacity as well as the petchem capacity by 2030.

You have a lot of projects in pipeline, but these are the cyclical projects. When they get realized, it will be taken.

That many projects are there on the anvil.

Is there near-term visibility or this will come in future?

No, no, it is. Maybe in the next year, you must have heard about Andhra refinery.

There's a talk about Andhra refinery. Andhra refinery come petchem, it could come in next year.

Okay. Okay.

These are the mega projects. Paradip, we are already doing.

By 2040, our energy demand is going to be doubled. Fossil fuel will be part of this energy mix in the 2040 also.

Government is planning to increase the crude refining capacity and increasing the share of gas, natural gas, in the energy mix from 6% to 15%. A lot of projects are there.

Petchem consumption is also increasing in India day by day, and it is very low in comparison to the developed countries. A lot of scope is there.

Okay.

Yeah. Thank you for the opportunity.

Just wanted to check with you, how do you see the revenue mix between consultancy and turnkey over next 2, 3 years? If I remember few years, you wanted to change the mix from when turnkey was higher to consultancy, and now what I'm seeing the trend is, it's again turnkey share is going up.

Can you please guide little bit where you want to focus over next 2, 3 years?

Actually, we always try to keep our consultancy business mix in the range of 55% to 60%, but this is hovering 45% to 55%. Sometimes consultancy business is 50%, 55%, and sometimes LSTK business is 50%, 55%.

This is the general range for the last 3 years. We always keep to try more segment profit is there.

No, see, if I remember few years, you were saying that you normally use the EPC or turnkey as a filler to utilize the resources if we don't have the consultancy project. Is that the way you still work on?

You see in the India, more and more consultancy business is also coming, more and more refinery projects are there, petchem projects are there, a lot of pipelines are there. As on date, we cannot say we are sitting idle and we are focusing on the LSTK business.

Definitely we are focusing on the consultancy business and we are getting it also, not only in India, but outside India also.

Fine. Fine.

Because I know that it takes a lot of time to change the order book mix from turnkey to consultancy or consultancy to turnkey. It will take 3, 4-year cycle normally, which was what I have observed because I've been following EIL since long.

You can see our order book as on date is 15,600, and out of that, 10,000 crore is from the consultancy business only. Around 67% order book is from consultancy business as on date.

I would like to add that in the LSTK business, we don't go into the regular LSTK business. We only take the open book estimate, OBE kind of projects, which are more secured, less risk, and the returns are confirmed.

Have you worked on anything in case of cost escalations, your margins are protected in these LSTK projects or because previously we have suffered because of these cost escalations, how it has changed over the years in the contract?

Now we have changed the business model, as my colleague said, we are already targeting open book estimate, which is cost-plus contracts only. Whatever cost is incurred, client is reimbursing that, and upon the cost reimbursed, we are charging our fixed margin, fixed mark-up.

Our mark-up is intact and there is no escalation in the cost because escalation in the cost is borne by the client. We are on the safer side.

With respect to one of the participant's query, you said that If my understanding is correct, you can just confirm this. That whenever a project is going behind the schedule, okay, you provide for the provision for a delay or penalty for that project, okay?

If by the time of completion of the deadline, if the project is within the time frame, you reverse that provision. Is that correct?

Yeah.

Gentleman, please try and appreciate that this is a provision of the contract, okay? Whenever a contract is awarded, this is a risk provision you always make in any of the pricing you quote.

You make a provision, you keep that money aside, and when the project is executed, you don't face any consequences, then it is released, and as part of the revenue and it is added to your profit. It's a risk provision which is always made in any of the contract.

That kind of provision is always made in the consultancy as well as OBE projects. From project point of view, there is no differentiation in the practice followed.

Okay. No, no, I'm saying that because one of the participant was saying you replied that you reverse the provision what you have made because the project is now getting completed on time.

You have earlier made the provision because project was running behind the schedule.

No, no. Whenever project starts get delayed, then we create the provision, and on the completion of project, we apply for the time extension to our client.

In most of the cases, we get the time extension from the client, and upon the receipt of same, the provision is reversed.

Okay. Okay.

Fine. Thank you.

Fair enough. It is in every project business, I understand that because some of the projects may have a penalty clause, you provide for that.

Sir,

all the projects are having penalty clause, but it is not implemented by the client.

It depends on the client.

Because EIL is not solely responsible for the delay of the project, sir. That's why client give the time extension.

There can be delay on part of

client also, yeah.

Yeah.

Okay. Okay.

Thank you. Thank you very much.

Thank you. Thank you so much.

Thank you. Can we close now?