Thank you, Anushka. Good afternoon and very warm welcome to everyone.

On behalf of PhillipCapital, I'm pleased to welcome you all on the PNC Infratech Limited second quarter FY26 earnings call. We have with us Managing Director of the company, Mr.

Yogesh Jain, along with Mr. D.

K. Agarwal, Chief Financial Officer, and Mr.

Pankaj Agarwal, Vice President. We'll begin with the opening remarks from the management, followed by interactive question-and-answer session.

Over to you, sir.

Good afternoon, everyone. On behalf of PNC Infratech Limited, I extend a very warm welcome to everyone for joining us today on this call.

Today, I have with me Mr. T.

R. Rao, Director Infra, and Mr.

D. K.

Agarwal, CFO, Mr. Pankaj Agarwal, VP, F&A, and Strategic Growth Advisors, our Investor Relations Advisors.

The financial results and investor presentation have been uploaded on the stock exchange and the company website for your reference. Initially, I would like to mention key update of the industry, followed by operational development of the company and highlights of the financial performance during the quarter and half year ending 30th September 25, post which we will be happy to answer your questions.

In Quarter 2 Financial Year 26, the road infrastructure sector reported modest performance with projects execution remaining subdued as construction activity declined to 644 km, down from 802 km in the corresponding period last year, mainly due to very subdued project awarding activity by the authority over the past 2.5 years and widespread, intense, and prolonged monsoon across nation this year. NHAI has set an ambitious target of 6,300 km length of new projects award for Financial Year 26, which is expected to generate substantial new business for the industry players going forward.

As NHAI launched a huge new project pipeline comprising over 120 projects to be implemented on EPC, HAM, DBFOT formats with an estimated capital cost of Rs 3 lakh crore. The whole industry is looking for speedy conversion of this pipeline into awarding for turnaround of the sector and to create a strong execution visibility from Financial Year 27 onwards.

The tightening of RFP norms to improve the quality and speed of project execution, including stricter qualification criteria and more accountability on performance, are expected to ensure projects are awarded to only credible construction firms with proven technical and financial competence. In water sector, Jal Jeevan Mission moved significantly closer to realizing the government Har Ghar Jal vision, driven by rapid network expansion, use of digital monitoring system, and active participation from local communities.

This development will generate robust O&M revenue stream to the firms executed to the capital works over the next 10 years. Various zones of Indian Railways, different subsidiaries of Coal India, various undertaking of Union Power Ministry are coming out with the large number of new projects in track construction, coal mining, power transmission, and renewable energy for bidding, which provided promising business opportunities for infra player.

Now coming to the recent updates on the company: our subsidiary Yamuna Highways Private Limited has received the provisional completion certificate for the Mathura-1B HAM project in Uttar Pradesh on 15th September 25, declaring it fit for entry into commercial operation with effect from 30th August 2025. In Quarter 2 Financial Year 26, company received early completion bonus of Rs 5.08 crore for Mathura-1C project, received during Quarter 2.

During Quarter 2 Financial Year 26, company received three Letter of Award one from Bihar State Road Development Corporation for high-level bridge construction along with approach road on Hathauri-Auri in Bihar; second from Airports Authority of India for the development of Varanasi International Airport; third from NHPC for the solar power-cum-BESS projects. Company has received appointed dates for three HAM projects: Varanasi-Kolkata highway packages 2, 3, and 6.

During the quarter, company also received appointed date for EPC project in Rajasthan for construction of flyover in Bharatpur City. I am happy to share during the quarter, credit rating of four of company's subsidiaries have been upgraded significantly: Hathras Highways upgraded from CARE Single A to CARE AA+; Hardoi Highways upgraded from CARE Single A to CARE AA+; Yamuna Highways upgraded from CARE Single A to CARE AA; Awadh Expressway upgraded from CARE Single A to CARE A+.

Moving on to the operation and financial performance of the company: company's 16 fund-based projects comprise 1 BOT toll project, 2 BOT annuity projects, and 13 HAM projects. Aggregate bid project cost of 13 projects is over Rs 14,800 crore.

Out of 13 projects, 4 projects achieved PCOD and COD, 8 projects are under construction, remaining 1 HAM project of MPRDC, documents for financial closure have already been submitted, however, declaration of appointed dates is delayed due to land and alignment issues. Total equity investment requirement for HAM project is Rs 1,744 crore.

Till September 25, company already invested Rs 1,081 crore, and the remaining equity of Rs 663 crore is to be invested over the next 2 to 3 years. Internal accruals that would be generated over the next 2 to 3 years should be adequate to meet the above equity investment requirements.

Now moving on to our order book: as of 30th September 25, the company unexecuted order book stands over Rs 20,000 crore, which includes EPC value of Bhopal Bypass HAM project of MPRDC and newly secured high-level bridge project of BSRDC in Bihar. Highway contracts contribute around 55% of total unexecuted order book, while water, canal, area development, and railways project contribute around 30%, and coal mining project contributes 15%.

Now I would present the result for the quarter and half year ended September 30th, 25: standalone revenue for the second quarter of Financial Year 26 is Rs 983 crore; standalone EBITDA for the second quarter of Financial Year 26 is Rs 136 crore; standalone EBITDA margin for quarter is 13.9%; standalone PAT for the second quarter Financial Year 26 is 86 crore; standalone PAT margin for the quarter is 8.8%; standalone revenue for half yearly of Financial Year 26 is Rs 2,119 crore; standalone EBITDA for H1 of Financial Year 25 is Rs 277 crore; standalone EBITDA margin for H1 Financial Year 25 is 13.1%; standalone profit for H1 of Financial Year 25 is Rs 167 crore; and margin for H1 25 is 7.9%; consolidated revenue for the second quarter of Financial Year 26 is Rs 1,128 crore; consol EBITDA for second quarter of Financial Year 26 is Rs 253 crore; that consol EBITDA margin for Quarter 2 Financial Year 26 is 22.4%; consol PAT for second quarter of Financial Year 26 is Rs 216 crore; and PAT margin for Quarter 2 is 19.1%; consol revenue for H1 of Financial Year 26 is Rs 2,550 crore; the consol EBITDA for H1 26 is 620 crore; and margin for H1 is 24.3%; the consolidated PAT for H1 26 is Rs 647 crore; and consol PAT margin for H1 is 25.4%; our net worth on standalone basis as on 30th September 25 is Rs 5,628 crore, whereas standalone debt from banks and financial institution is Rs 796 crore; this translate to net debt-to-equity of 0.14x; the total cash and bank balance including current investment is Rs 1,203 crore; on consol basis, our net worth as on 30th September 25 is Rs 6,623 crore, whereas total debt is Rs 5,049 crore; the translate to net debt-to-equity of 0.76x; the total cash and bank balance including current investment is Rs 2,736 crore. With this, we now open the floor for question-answer.

Thank you.

Thank you, sir. Sir, a couple of things to understand.

First on the revenue front, in the first half, the revenue at a standalone is 26% down, 2,100-odd crore. We were looking at 15% to 20% kind of a growth, the ask rate in the second half is significant, kind of a doubling the revenue in the second half.

Just wanted to know now how we can look at the revenue for this year and also at the same time for next year also how one can look at the revenue for FY27.

Yeah. Good afternoon, Mr.

Shravan Shah. Yes, there has been a decline in the revenue during the first half when you compare to last year's revenue, but as you know that even earlier also we shared with you, four HAM projects which were awarded way back in 2023, appointed dates have not been declared till now.

Though of course, they have been declared, for one project appointed date was declared in September, and another two projects appointed date declared in the first week of October. Otherwise, had these projects been declared appointed date, would have achieved substantial work done during the current year as well as the previous year second half.

Unfortunately, appointed dates got declared, and the value of these projects of EPC value itself is 4,000 crores. This is the main reason in the decline of the appointed date, and we never expected the appointed dates declaration will be so delayed more than two years.

That is the reason for the decline. Since now appointed date for three out of four projects already been declared, having a value of over 3,000 crores, these projects will generate income going forward.

With regard to the guidance what we had given 15% to 20%, with the declaration of appointed date, delayed declaration of awarding date, and also slow awarding activity by the NHAI for the past 2.5 years, what our MD has mentioned now. Slow awarding, delay in declaration, and also of course, though rains are a repetitive phenomena every year, this year the monsoon also has been very active and prolonged.

With all these reasons, now we are revising our guidance from 15% to 20% to 5% over the previous year. That is the guidance kind of a thing.

Currently we are executing more than 20 projects, precisely 24 EPC projects having a value of more than 17,000 crores, including coal mining and solar project. With that kind of a revenue visibility is there, the unexecuted order book is there, this 5% over the previous year, remaining work comes to around 3,000-odd crores that we should be able to achieve during the H2 of the current financial year.

Got it. Now, sir, given that the growth will be lower as you said, 5% in this year, next year also because on that high base also we were looking at 15%, 20% growth.

FY27, can we see a kind of a 30% kind of a growth once as all the appointed date are now kind of received and execution will start and maybe the kind of order inflow that we are looking at?

No, no, certainly we'll be aspiring to achieve that kind of growth during the FY27. As of now, since the FY26 has not been completed and the base needs to be established, still we maintain 20% growth for FY27 as of now.

Once some clarity emerges at what value we'll be closing FY26, then we'll revise this one. We'll relook into this growth.

As of now, we would like to maintain 20% growth in FY27. Certainly, we will be aspiring for 30% growth.

Got it, sir. The current 13% margin is doable?

It should be. 12.5% to 13% margin should be doable in the current financial year, and this next year also it will be around 13% margin should be there.

In terms of now the order inflow, so that's the main pain point for the entire sector. Just wanted to understand, though in the opening remarks, sir has talked about the significant value, 6,300 km of NHAI, 3 lakh-odd crore, all this.

Actually, how do we see in terms of because so many kind of a cabinet approval, land acquisition, all this, what we understand is 2,500 km to maybe a 3,000 km. Just wanted to understand how much value of work from NHAI can be awarded and how much order inflow now we are looking at?

That too, if you can also specify in terms of the HAM specifically and what are other state level or other segments where we are looking at and broadly how much the total order inflow now we are looking at? See,

we had mentioned in the beginning of the year and the last quarter of the last year, our order book for the FY26 would be between 12,000 to 15,000 crores. We still maintain the same kind of guidance for the FY26.

That means around another 6,000-plus order book we need to secure, new business we need to secure. Given the project pipeline of NHAI and other departments, we have identified around 70 projects for bidding during the next 1.5 to 2 months comprising 1 crore of aggregate value of 1 crore 1 lakh crores.

With bidding pipeline is available, we expect that we should be able to achieve another 6,000-plus new orders during the remaining 4.5 months of the current financial year.

Okay. Great.

That also mostly it would be a HAM? No,

no, in case of NHAI, it would be HAM. In case of other clients, it would be mostly EPC.

EPC as well as TBCB.

Okay. Got it.

Just on the JJM front, now how do we see the particularly JJM and the irrigation one? How much revenue that now we can look at in this year, and when can we see the both the projects are to be fully completed?

See, under JJM, in the H1 we achieved 235 crores apart from certain revenue from the irrigation project. We still maintain 900 crores from the JJM and irrigations for FY26.

Same kind of revenue we're still maintaining our guidance of 900 crores. Going forward, we are pursuing opportunities in the both sectors also.

JJM, we don't see further new projects will be coming in a major way. In the Water Resource Department sector, many projects are coming by different state governments.

We are pursuing those opportunities.

Sir. Thank you, and all the best.

Thank you. Good evening, sir.

Sir, what is the order inflow so far till date in FY26?

6,000 crores.

This includes the flyover projects, but not the mining and the BESS project? No, no,

this includes coal mining, this includes flyover, Bharatpur. This includes high-level bridge in Bihar.

This includes Varanasi Airport project and solar power also.

Understood. We do not have any L1 orders right now, right?

No, as of now, we don't have any L1 orders. Wherever we stood L1, we received the letters of award.

Understood. Understood.

Thank you. I'll get back to the queue.

Thank you.

Hi. I hope I'm audible.

You are audible. Hi, sir.

Yeah.

Thanks a lot for the opportunity. I wanted to understand, in the asset monetization space, I think we have monetized 11 assets, 11 HAM assets, and we have one state equity that is pending.

Do correct me if I'm wrong. Yes,

yes. No, no.

The current position is that out of 12 assets, 11 assets we monetized, including the state asset. The state highway asset we monetized in the Q2, okay.

Now, only one HAM asset of NHAI is pending for which we have received the final approval for the change of control we received it. In fact, we received today.

This also we are sort of selling it to Highway Infrastructure Trust?

Yes, yes, because it's a part of the master security purchase agreement we executed last year.

Understood. This one asset that is pending, what would be the equity invested, because I think you've mentioned equity invested and the consideration for 11 assets.

This one particular asset which is pending, what would be the equity invested and the consideration that we're expecting from this asset?

Equity invested is Rs 114 crore.

Understood, sir. The consideration would be do we have that, or

Enterprise value consideration is around Rs 630 crore.

Understood, sir. On the capex part, what is the capex that we have done in H1, and what are we expecting for the balance H2 and '27 for that matter?

As a total capex up to September 30 is Rs 121 crore, and we are expecting that around Rs 200 crore capex will be done in the total Financial Year 26. So 200 is overall, understood.

Yes.

Yes. Understood, sir.

Sir, I may be repeating this, I think you've mentioned it. The total equity investment for the 13 projects, if you could repeat that, and how much have we infused till date?

The

total equity was Rs 1,744 crore. Out of that, the balance equity is Rs 663 crore.

Sir. Which is yet to be invested.

Understood, sir. Understood.

Thanks a lot for entertaining the questions. Thank you.

Hello, am I audible?

You are audible.

Yeah. Sir, wanted to understand once again a couple of reasons.

Firstly, why have we cut the guidance, and secondly, what has been main core reasons why we haven't seen revenue grow, and what are the few things you are looking which will help to grow in, say, Q3, Q4?

See, as we had mentioned in response to another question by another person, that the primary reason for the decline in the turnover as well as the revising on a downside that guidance, is because the delayed appointed dates for four major HAM projects having a revenue potential of more than 4,000 crores. These HAM projects were awarded way back in 2023, middle of 2023.

Appointed dates got delayed by more than two years. Had this appointed date been declared earlier, we would have achieved certain revenue in the current year as well as last H2 of the previous year, but we could not do it.

That is the main reason for the decline in turnover. Second thing, for the last 2.5 years, the awarding activity of NHAI is very subdued.

It was very subdued. The new projects are not forthcoming from NHAI.

Very very smaller-sized projects are coming, which is kind of a very unhealthy competition. That is another reason that we could not secure many major projects during the last two years, particularly from NHAI.

We revised the guidance because to be more realistic this year. Going forward, out of four HAM projects, for three HAM projects appointed dates have been declared during the month of September and October.

Now we are having a unexecuted order book for the ongoing projects itself over 17,000 crores. Going forward, growth will be increased, and we'll have some significant growth in FY27 over FY26.

Sir, just one last question from my end. Sir, with respect to order book, what are we targeting for these next two quarters and for FY27, and how much orders have we bid for and approximately what might be the success ratio in that?

See, as of now, we have submitted 17 bids for an aggregate estimated cost of 17,000 crores till yesterday. Nine 19 bids we have submitted for a 17,000 crores of this thing.

Out of this 19 bids, 16 bids are EPC and three bids are HAM. In fact, we have submitted two more bids today, but that we're not included.

These bids, we are hopeful getting at least if you get even 20% of this one, then we'll be getting around 3,000 crores worth of projects. Further, we identified bidding opportunities for 76 projects precisely, which are to be bid in the next 1.5 to 2 months with a aggregate value of over 1 lakh crores.

There also, even if you consider modestly of 3% to 5%, then still we'll have a 3,000 to 5,000 crores plus 3,000. We are expecting another 6,000-plus new orders, 6,000-plus crores new orders before end of the current financial year.

Got it. Thank you so much, sir.

Okay.

Yeah. Hi, sir.

Am I audible? Hello.

Yes. You are audible.

My first question is in Q1, here I can see JJM receivables were around Rs 700 crore due to central fund hold tight. Have those payments been released in Q2, and what's the current receivable position?

The total receivables for JJM project as of Q2 is around Rs 800 crore. And Further, please.

Hello. Hello.

Yes. Yeah.

What is next question is? Yeah.

My question was with regards to the order book. Is it 17,000-odd crore current, or 20,000 unexecuted?

Unexecuted order book is 20,000. Out of that, 17,000 crore projects for which appointed dates have been declared or which are in active.

One HAM project of MPRDC, that is Western Bhopal Bypass, there are certain land issues, appointed date has not been declared. For another project, we are not executing the work due to legal issues.

Okay.

As you mentioned, you'll be closing around Rs 5,000 top line in FY26, right?

Yes, 5,000-plus top line in FY26. That's all.

Could you please throw some colors on the revenue bifurcation you are expecting by FY26 from this 5,000 Cr? How much it will be from highways, how much it will be from water?

See, for FY26? For

FY26.

See, FY26 we are expecting from water and irrigation sector, FY26, remaining amount would be from the highways and other projects.

Sir, you can repeat what you just said?

In FY26, we are expecting total 900 crore turnover from water, drinking water supply, and irrigation projects. The remaining 4,000-plus crores from highways and other projects, including coal mining.

Including coal mining. It's fine.

Thank you, sir.

Yeah. Sir, on the guidance front, our revenue for FY25 was 5,500 crores.

You mentioned a 5% growth. Is it a 5,500 base, or on 5,100 base?

Can you provide actual number for '26?

As of now, we have taken as a 5,500 as the base.

It will be somewhere around Rs 5,800 crores?

Yeah.

Okay. Secondly, when do we expect to receive the AD for MPRDC HAM?

There is a issues, the land and alignment issues are still persisting. There is a bit of uncertainty for the turn.

We will not be able to share what would be the likely appointed date. Going forward, we should be able to share in Q3 when we meet after Q3.

Should it likely come at least by March '26?

We are hoping so.

Okay. Secondly on the capex front, we had earlier guided for 400 crores, now we have reduced it to 200 crores.

Can '27 be a bump up in terms of capex?

Actually, we have given the guidance of 400 crore for the coal project. Out of that, we are planning to make the capex in this financial year is around 200 crore, and the rest will be done in the next financial year.

Total capex for '26 would be 200? Will be 200.

For '27?

'27 around Rs 250 crore.

Okay. Sir, lastly, when do we expect to start the execution for mining and BESS order?

Mining, we have already started the execution, physical execution is underway.

Okay. Sir, only just one clarification Please.

On BESS order?

BESS order, we are doing the preliminary works. Process of procurement will start in Q4.

Okay. Sir, any equity requirement for the T&D order?

What would be the value?

For solar-cum-BESS project you're talking?

BESS project, yes.

See, equity requirement Around 400 crore. It would be around 400 crores, subject to finalization of the financial package and discussions with the banks.

Okay. Sir, incrementally the infusion in these HAM assets and the BESS assets, since largely the gain has been booked in the subsidiary of the monetization, large part of money is in the subsidiary.

Incrementally how do we plan to invest the money in these assets? It will be partly from subsidiary and partly from standalone entity?

Hello?

Yeah. Yes, madam.

Can you repeat the question? No, we have already answered,

Hi. Thank you for the opportunity.

Sir, still just wanted a clarification. Sir, when we are saying the 5% growth over 5,500 crore of FY25 revenue, that comes 5,800 crore.

That means in the second half, we need to do a 3,700 crore kind of a revenue, kind of a 1,800 kind of a run rate quarterly. Do we think, if the third quarter is on the lower side, then the fourth quarter needs to be a kind of a significantly higher.

Just trying to understand is this the number that we are looking at, or there is a possibility that this number can go down?

See, as of now we are looking at the similar kind of thing. As the now appointed dates are declared, the progress is ramping up.

See, third quarter number would be lesser than the fourth quarter number, but overall, you are looking at 5% of this thing. Given all the appointed dates have been declared, until unless there is any adverse kind of a thing development and unexpected thing, we should be able to meet this 5% target.

Okay. Got it.

Second, sir, we were supposed to get a 14 crore bonus on Hardoi project. When we will be receiving and booking in P&L?

We'll be booking in P&L in Q3. The approval process is underway.

Once it approved by NHAI's apex body, we'll be receiving during the Q3, 14.18 crores. And Earlier we mentioned, we already received 5-point-odd crores of the Hathras Highways.

Yeah. Got it.

Sir, can you provide the break-up of this 663 crore equity that to be invested, in second half how much and '27 and '28?

Just a minute. The total equity which is required to be invested is 663.

Out of that, around 100 crore should be invested in this current financial year, and the balance will be in '27 and '28. That would be so 553 is left by end of FY26.

Roughly 250-odd crore would be in FY27? You can say just like this.

Okay.

In BESS, out of 400 crore, till now how much we have invested, and in FY26 balance second half how much and FY27 how much? No,

out of 400 crore, we have not invested any amount out of that 400 crore rupees. That hopefully, it will be invested in Financial Year '27 and '28.

Okay.

No equity in the second half of FY26? Yes.

Yes.

Yes.

Okay. Got it.

Just another clarification. This monetization 12 assets, you said the left one is where 114 crore equity we have invested.

Against that, how much equity we will be getting?

The enterprise value of that project is Rs 630 crore. Out of that, the outstanding loan will be paid, and the balance will be contributed to the equity.

Debt is how much?

Debt, original debt was Rs 394 crore.

394. Around 230 crore kind of an equity that we will be getting against 114 crore of the original invested?

Yes. Yes.

Yes.

Okay. The total till now how much we have received of whatever the 11 projects, and what is still because there are some 200-odd crore that was supposed to be received?

No,

for the 11 assets, the net receivable net of debt was 2,200 crore rupees, which we have received.

Okay. The entire money has been received?

Yes, entire money has been received. Out of 200 crore rupees, some money has received in this quarter, which is around Rs 38 crore, and the balance will be received as and when received from NHAI on back-to-back basis.

Okay. Got it.

Roughly if we look at this JJM project, how one can look at because the payment issues are there in terms of the completion when it will be. Around 2,750-odd crore which is left, how one can look at?

Will it be even FY29 is also possible that we will be completing, or it depends on the as and when the payment will come, accordingly we will keep on doing the execution?

No. See, we are targeting around 900 crores work to be completed.

Out of that, 235 crores already completed. Going forward next two years, this work would be completed.

It will not go beyond FY28.

Okay. There in terms of payment, Have we got anything payment or obviously the 800 crore which is left as a debtor?

Just trying to understand.

See, we interacted with the highest level in the state government for the payments. Though there is a paucity of funds from the Government of India, but the state government has agreed to provide the funds from their part of 50% and also something extra also.

We are expecting some funds before end of the December before end of November. We'll receive certain amount out of the total outstanding.

Going forward also, state government is expected to provide the funding in case of any gap in the central government funding.

Okay. This MP project where we are saying that there is a uncertainty in terms of the appointed date, is that also a possibility that this project can also go for a kind of a rebidding, or we may be removing from our order book?

See, as of now we can't say anything what state government final decision would be. Still now we are hoping that once this land issue and alignment issues are sorted out, the project will be revived.

As of now, we are hoping for that.

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

Yeah. Thank you for the opportunity.

Sir, can you give us the toll collection numbers for Q2?

Just note down. Yeah.

The toll collection for MP Highways in Q2 Financial Year 26 is 10.8 crore, and the annuity for Raebareli project is Rs 32 crore, and for Narela, it is around Rs 4 crore.

Okay. For Raebareli?

Raebareli, 32 crore.

Okay. Bareilly-Almora?

Bareilly-Almora

actually yeh dispose off ho gaya, KKR ko sale ho gaya, to toll number iska ab hamare paas nahi hai. Project is transferred now.

Okay. Sir, out of this 900 crores of water revenues that you are targeting, irrigation would be somewhere around 150, 200 crores out of this?

Yes, 150 crores.

Okay. Are we currently L1 in any of the projects?

No. No, we have received for all five projects we received letters of award.

Okay. Sure,

sir. That's it from my side.

Thank you.

Sir, what would be the cash and current investments in PNC Infra standalone as of September?

It's around PNC Infra Rs 1,200 crore. Okay.

Sir, since we have received sizeable amount of money in the SPV, incrementally the equity investment in the HAM projects and the BESS projects, would it be partially from SPV and partially from the standalone entity?

It will be from the holding company as well as the PNC. Same thing what practice we have been doing, same thing will be there.

This 2,700 crore would be used completely towards the equity commitments, which is sitting in SPVs? Yes, sir.

Yes.

Yeah.

Sir, lastly, any update on the CIDCO order?

See, matter is still sub judice. We can't say anything now, and we are not in a position to share the further details.

Matter is still sub judice.

Have we started the flyover project in Bharatpur City from PWD Rajasthan?

We have started. We have started.

Okay. Thank you, sir.

Those were my questions.

Hi, sir. Just one question over here.

On the equity requirement for BESS, this would be 400 crores, right, sir? This would be excluding 663 crores that we are investing in the HAM assets, right, sir?

Yes.

This 400 crores, of which as you've mentioned, the investment would be done in '27 and '28, FY27 and FY28. How are we planning to fund this equity requirement?

As such, if you can throw some light on that?

No, see, this 663 crores to be invested in HAM projects and this 400 crores, total is coming to 1,000-odd crores which is to be invested in next two years. One source is what are the funds that are available with our PNC Infra Holding, the key investment company, and also then there will be internal accruals in FY26.

For a FY28 investment, again, there will be internal accruals in FY27. Both it's a combination of the amount what we are having, what we realized from sale of our assets and also from internal accruals that would be accrued over the next two.

No debt funding for the BESS?

No debt funding for the equity funding.

Understood. Thanks a lot.

That answers my question. Thank you.

Hello. Thank you for the opportunity.

Sir, you mentioned that we received some 37 crores this quarter out of the 200 crores that was receivable from the SPV that we sold off to KKR. If I net off that, I think our EBITDA is about 100 crores, and the EBITDA margin would come out to just about 10%.

Is that understanding correct?

No. Out of the whatever amount we have received from KKR, that is subject to the taxation, which is GST, and the net amount is around 32 crore rupees, which is reflected in our books of account and included in the EBITDA.

Out of the standalone EBITDA of 136 crore, 32 crore is coming on account of this receivable?

This receivable.

Okay. If I net that off, our core EBITDA would be about 104 crores.

Is that correct?

Yes,

yes, yes. Okay.

There's been a sharp fall in the margin this quarter. What would be the reason for that, sir?

See,

the fixed cost being the same, there is a decline in the turnover. The fixed cost would be largely similar to this thing because of the overheads and other things which we cannot suddenly reduce it.

That reflected in the marginal reduction in the EBITDA.

Got it, sir. Sir, I think Agra Bypass also there was some arbitration of 485 crore that you had announced.

When do we plan to recognize that?

See, this arbitration award is a contingent kind of a thing. Now see, the award, what we understand that NHAI is contemplating challenging the award.

Okay. It'll

take its own time when they challenge the award before the court of law. It'll take its own time.

Got it, sir. The total cash that we were supposed to receive from the transaction was 2,500 crores, partially in PNC Infra Holding and in the standalone entity.

What would be the cash if I combine both, how much cash do we have on the balance sheet?

On consol basis, the total cash is around 2,500 crore rupees, 2,700 crore rupees as on 30th September.

Okay. Most of the debt that we have on the consol balance sheet is project debt.

There's hardly any debt that we can settle from this, except maybe some 400, 500 crores that we have as working capital. Yes, yes,

yes. Okay.

Mainly how do we plan to use this capital? Would that be for funding new projects that we get, or are we planning some kind of a buyback or capital return to shareholders?

No, as of now, we are not considering the buyback of this thing. As we are actively bidding the HAM projects in the next two, three months, the high-value HAM projects would be requiring equity infusion in these HAM projects.

In other also, we are also pursuing some TBCB project where competitive bidding for the transmission lines as well as the solar and BESS projects, there also would be required a sizeable amount of equity. Basically for the fund-based projects, we are earmarked this money.

We'll see going forward how the things will unfold.

All right. Sir, out of that target that MoRTH and NHAI has for this year in terms of contracts awarding, how much has been awarded till Q2?

Q2 awarding activity was very low. See, readily we don't have numbers, we'll share with you.

We have the figures, but it's not readily available.

Awarding activity is not great in Q2 also. All right.

Sir, this one final question. On the BESS project, what kind of a EPC margin do we expect to make, and then the overall IRR for the project?

See, BESS market now we are actively doing the market soundings. The situation is so dynamic, particularly in the solar panel industry as well as the BESS industry.

The situation being very dynamic, we are assessing what would be the market prices and all. Once we have some firm quotations and we finalize, then we will be knowing what would be the equity IRR on the whole investment.

It would be around 15% approximately, but it is on a very preliminary assessment.

Got it, sir. That's it from my end.

Thank you. Thank you.

Sir. Thanks for the follow-up.

Sir, I just missed this part. From where did we receive this 37 crore

rupees? 37 crore rupees is the receivables to be received by the SPVs through the buyer, HIT.

Basically this amount received by respective SPVs and passed on to PNC.

Our EBITDA includes that 37 crore 32 crores post-tax?

Yes. Pre-tax.

Post-GST, pre-tax. Post-GST.

Okay. Thank you.

Post-GST, okay.

We thank the management of PNC Infratech Limited for giving us an opportunity to host the call and taking time out for interaction with the stakeholders. Thank you all for being on the call.

Now, I hand over the call to the management for their closing remarks.

Thank you, everyone, for your active participation in our earning call. In case of further queries, you may get in touch with the Strategic Growth Advisors, our Investor Relations Advisors, or feel free to get in touch with us.

Thank you.