Thank you, Nesha, and good evening, everyone. Welcome you all to PSP Projects Limited Q1 FY '27 earnings conference call.

To take us through the results and to answer your questions, we have with us the management of PSP Projects represented by Mr. Prahaladbhai Patel, the Chairman and MD; Ms.

Pooja Patel, the CEO; and Ms. Hetal Patel, the CFO.

Please note that the discussions that we may have today may contain certain forward-looking statements relating to the future events and future performance. Numerous factors could cause actual results to differ materially from those in the forward-looking statements.

Please note the audio of this earnings call is the copyright material of PSP Projects, cannot be copied, rebroadcasted, attributed in press media without specific written consent of the company. With this, I hand over the call to Ms.

Pooja Patel, the CEO, for her opening comments. Thank you and over to you, Pooja.

Thank you, Krishna, for the introduction. Good day, everyone, and thank you for joining us for PSP Projects Quarter 1 FY '27 earnings call.

As 30th June 2026, our outstanding order book stood at ₹13,245 crore, reflecting our robust 103% year-on-year growth and providing us with a strong multiyear revenue visibility. Of our total order book, within-group projects account for approximately 70%, while external projects contribute to remaining 30%.

The first quarter is traditionally a challenging period of the construction industry due to seasonal factors, including labor migration during festivals and wedding season, as well as the initial onset of monsoon. Despite this industry-wide challenge, PSP delivered a strong 65% year-on-year revenue growth during Quarter 1 FY '27.

Our performance demonstrates the strength of our execution capability and the process achieved across key projects. Importantly, most of our major projects have now moved beyond the initial stage involving excavation and underground works and entering the core construction phase, enabling improved execution momentum.

During the quarter, we deployed a workforce of over 16,000 labor across project sites, reflecting the scale of our operation and execution readiness. As labor availability normalizes in the coming quarters, we expect construction activities and project execution to gain further traction.

I would also like to highlight our continued investment in strengthening organizational capabilities. The increase in employee cost during the quarter reflects our strategic focus on the enhancing leadership and project management bandwidth across various levels of the organization.

We have expanded our team across key functions and geographies to ensure we are well positioned to manage a significantly large project portfolio while maintaining our commitment to timely delivery, quality execution, and operational excellence. During the quarter, the company successfully completed six projects and receiving order inflows of ₹630 crore with 93% order from Adani Group.

Major orders are Adani Health Care and Research Foundation project, Mumbai; Airport Office Building at T1, Mumbai; refurbishment of Port User Building, Mundra; construction of Skilled Accommodation at Green PVC Project, Mundra. The order book is diversified with institutional projects comprising of 39%, residential projects 37%, government projects 23%, and industrial projects approximately 1%.

Our current order book, please make note of key projects and their outstanding contract values: Shree Ambaji Mata Temple, ₹962 crore; SMC High Rise Building, ₹693 crore; construction of Fintech Building at GIFT City, Gujarat, ₹259 crore; Human Biology Center, a science gallery at Science City, ₹248 crore; biggest residential project in GIFT City, ₹202 crore; development of Dharoi Dam region, ₹198 crore; Sabarmati Riverfront development Phase 2, ₹187 crore. The bid pipeline is ₹6,200-plus crore with 61% group projects and 39% external projects.

Now let me share certain project-level updates. SMC core and shell activity has been completed, and now full-fledged MEP, interior works, and facade work is going on.

RVNL, out of three buildings, two buildings will be handing over soon, and hostel building RCC is completed, and MEP work, interior works, and facade work is going on. Ahmedabad Airport and city-side development, we are at a different level for RCC work.

It's going on in full fledged. For Ambaji Mata Temple, we are at excavation level and some of the buildings are in footing level.

With this, I now hand over the call to Hetalben to share the financials in further details.

Namaste. Thank you, ben.

Good afternoon, everyone. We'll brief you about consolidated financial performance for the quarter and quarter ended 30th June '26.

Quarter 1 FY '27 versus Quarter 1 FY '26: Revenue from operations for the quarter is ₹853 crore versus ₹518 crore, which is increased by 65% on YoY basis. EBITDA for the quarter is at ₹55 cr versus ₹25 cr, increased by 121% on YoY basis.

EBITDA margin is at 6.42% versus 4.79%. Net profit for the quarter is ₹18 cr versus ₹37 lakhs, which is increased by almost 50 times YoY basis.

Net profit margin is 2.12% versus 0.07%. During the quarter under review, employee cost has increased from ₹35 cr to ₹46 cr, which is mainly on account of annual increments performed in April month and increasing number of employees from 2,400 almost to 2,600.

Increase in depreciation from ₹17 cr to ₹26 cr is mainly attributable to additions in asset block during FY '26 as well as in Quarter 1 FY '27. During Quarter 1 FY '27, company has incurred capex of ₹28 crore.

Gross block is at ₹793 crore as on 30th June '26 and net block is ₹417 cr. Would like to mention few of the important consolidated balance sheet numbers as on 30th June '26: Long-term borrowing is ₹38 crore, which includes short-term borrowing of short-term maturities of ₹19 cr.

Short-term borrowings ₹217 cr, which is excluding short-term maturities of ₹19 cr. Net unbilled revenue is ₹473 cr.

Trade receivables are at ₹745 cr. Trade payables are ₹356 cr.

Retention, long term and short term, ₹222 cr. Mobilization advance stands at ₹836 cr.

Inventories of ₹362 cr comprises of ₹205 crore of construction material, ₹137 crore of work-in-progress, and ₹19 cr of finished goods. Out of total sanctioned credit facility of ₹1,497 crore, company has utilized non-fund-based facilities of ₹678 cr, and fund-based utilization is ₹166 crore.

Limit available for utilization is ₹653 cr. As on June 30th, '26, the company has total fixed deposit of ₹324 cr, out of which lien-free deposits are ₹139 cr, and FDs worth ₹185 cr are under lien with banks for credit facilities and given as security deposit to client.

Work on hand on consolidated basis as on 30th June '26 is ₹13,245 cr, and the detailed breakup is provided in the uploaded presentation. That concludes our update on financials and we are now open for the question-and-answer session.

Thank you.

Hi, sir. Great to see a significant improvement on the execution front.

Couple of things to understand. First, sir, in terms of guidance, just to get a sense, that FY '27, ₹4,500 crore revenue that we were looking at and for even going forward, we were looking at 20%, 25% kind of a revenue growth, so that remains intact?

We can say it will be on an average more than 25%, it can be between 4,000 to 4,500. Still we remain on the same line.

Okay. Now, sir, on the margin front, this quarter also 6.4%, we were looking at 7%, 8% kind of a margin.

Can we start seeing that 7%-plus kind of a number from Q2 onwards, or maybe it would be from the second half onwards we can start seeing that kind of a number?

Yes, you are right. From second half onwards we should be in that range.

If you see this here this quarter also, our employee benefit expense is ₹46 crore, which is 5.39% of the sales. Because of the first 2 months sale of April and May was down, and the third month it was ₹319 crore, previously 2 months were 270, 270.

That will itself speak about there is almost 1% more expense due to the turnover not being converted work not converted into reality. That itself is making 1% difference.

If you add at least that ₹7 crore, ₹8 crore in the EBITDA, it would be somewhere above 7%. Fine.

This will be in a better position from quarter two from Quarter 3 and Quarter 4.

Employee cost now from second quarter onwards, can we see the similar, or maybe a ₹40 crore, ₹40...

No, no, see, on an average we have been into the range of 4% to 4.5%, or 4.5% almost, 4.5%, 4.6%. This quarter it is almost 5.4%.

That's the basic difference, because first 2 months of April and May, as you are aware that there was a huge requirement of labor and deficit of labor on the site. If it could have been converted into sales, then it is almost at 4.5%.

Okay. Okay.

This quarter we got 630-odd crore, and previously we were looking at 6,000-odd crore and close to ₹5,000 crore from Adani Group. That now will remain the same for this year?

Maybe in the second half, are we seeing a significant order coming in?

Probably will be in the same range, maybe plus or minus ₹400 crore, ₹500 crore. We still remain in the same range of plus ₹5,000, because there are so many other projects which are under discussion, which will be taking in second quarter and third quarter.

We still remain on the same range for the visibility of the orders.

Okay. The capex also, the similar 3%, 4% of revenue, in this quarter we have done 28-odd crore.

That also remains the same, or once as we see the execution picking up...

More or less, today it is very difficult to say, but in case there are few projects and which are the volume size of the project is large, then the capex can be a little bit high, but on an average, I think it will be somewhere in the range of 3% to 4% only.

Okay. This quarter, sir, out of this broadly ₹853 crore revenue, how much would be the Adani Group revenue?

Just to get in terms of the pickup in the execution of the Adani projects.

Hetalben?

Yeah. Right now we don't have exact numbers, but it will be mostly around 60%, 55% to 60% will be Adani Group.

Because we are executing this RVNL around that is also high-value project, SMC sir. Around 60% we can say it will be from Adani Group.

Okay. Okay.

Got it. This mobilization advance, this is entirely kind of interest-free?

It's...

Yes.

Working capital, can we see a further improvement in the working capital?

That we can see, because you might have noticed finance cost has reduced compared to previous quarters. We have utilized less working capital facility.

We have surplus FDs also, going forward, we expect some more reduction in that.

In next two to three quarters, then we will be having a kind of a zero kind of a finance cost and will be becoming debt-free?

We can expect so.

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

Thank you.

Good evening, sir. Thank you so much for the opportunity.

Sir, what is our current status of execution of Mumbai projects, especially in Mahim and Matunga side?

See, Mahim, the first two blocks foundation, the basic raft foundation has been done, and we are now in the first basement floor work. In Matunga, the piling work is on.

Before excavation, the sheet piling is going on.

Sir. Sir, what is our current interest-free advances?

I think madam has mentioned the overall mobilizations. What is our share of interest-free?

It is the whole amount is interest-free.

Ma'am.

Good evening. Congrats on very strong set of numbers.

Just wanted to know, any update about this Commonwealth project, what is the status, when it is going to be tendered, or...

I think still we are not having any clear idea, but the movement has started. Few days back they have started with to make a control room for the Commonwealth development which is going to happen in Ahmedabad.

Probably still nothing on paper or nothing on news that when this tender will be coming up. Last week also we have heard that our Home Minister has visited this Glasgow for Commonwealth discussion also.

Maybe in the next quarter we should hear something for what is going to happen, because now it's high time to start some of the projects.

Sir. This year, order inflow guidance we have not considered anything from that side, whatever 6,000...

No, no, no, as far as government projects are concerned, we are not considering order inflow considering that part of segment. In bid pipeline we can consider, but in order inflow, it is always when the orders get cleared.

Okay. Also, any progress on this UP medical project collection?

Any improvement or it is still...

Now almost three of the projects, EOT is almost at the verge of signing. Last one day back only I was there in Lucknow to discuss about the last three projects also.

Probably by this week end or maybe end of this month, first week of August, we'll be in a better position to get all the EOTs. The money will be due, and once the money is in place, we expect that this account should close somewhere in by end of August or mid of September.

Okay. Both receivable as well as unbilled part?

Yeah.

Both will settle?

Yeah.

Sir.

Unbilled part is ₹200 crore.

Unbilled also we will...

That was...

Okay.

Yeah. Sir, going by your EBITDA margin guidance of 7% to 8%, do we expect to beat this guidance by the first or the second half of the financial year?

Is there any upside to this guidance, the 7% to 8% EBITDA margin is?

I think I already answered you in the second half only. First half, as I said that there is a employee cost is more than 5%.

Once the sales is more and we have full availability of labors throughout the year, we should be in a better position in second half of the year.

Thank you.

Sir, any update on SDB receivables?

No, not clearly, but yes, I had one call to and have some discussion with the top management, the Board of Directors. Probably I'll be visiting next week, matching their time.

They have called me for some discussion. I don't know what is the positive direction in that.

Yes, they have contacted me to come and meet for that issue.

Sir, what is the outstanding amount of receivables in the books?

₹90 cr.

₹90 cr.

Okay. Sir, secondly, on margins, you mentioned 7% to 8%, so that is for the entire year or only for the second half?

No, no, it should be for the entire year. Once the execution speed is coming up in the next few quarters, we should be in a better position to go beyond 7% to 8%.

Okay. Sir, lastly, when we see the revenue on the consol and standalone books, difference is for which projects?

Is it for Dharavi?

Standalone and consol books, you mean to say what are the projects we execute in subsidiary company, right?

What is difference between the standalone revenue and consol revenue?

Yeah. Around ₹80 cr of revenue we have booked in our subsidiary, so that is some miscellaneous projects which we have taken up in that company.

Adani Group projects.

Adani Group projects only.

Okay. Whenever now you give the guidance, that should be the consol, we should take it as a consol guidance?

It will be on a consol guidance only.

Okay. Thank you, sir.

Those were my questions.

Hello?

[unclear] can you share on the [unclear]?

Your voice is breaking. Your voice is breaking.

Can you hear me now?

Not clear.

Hello?

Yeah.

I just [unclear] order book [unclear] '27, is there visibility you have?

Sorry, your voice is seriously not coming that well.

Achha. I'll just try again.

All right.

Yeah.

Sir. Thanks for the opportunity.

Just a few data points. Sir, order book that is there with us, ₹13,000-odd crore, what is coming from Dharavi side in this order book?

A portion...

I can't expect the exact figure what is coming from Dharavi side, but I think there are two projects of Dharavi which is considered in this order book.

Around 3,000.

₹3,000 cr. It is about ₹3,000 crore, right.

3,000. Okay.

Then overall, I think, in this Adani meet which happened a couple of months back, when we attended and then there was big opportunity that we could see they were projecting. For us, what could be probably a number that one can look at because the size is pretty big?

Probably what is what we are eyeing from this opportunity, any ballpark number that can be shared?

You are talking about Dharavi?

Dharavi, sir.

See, Dharavi is a development. The first part is redevelopment, and then second part is the development of Dharavi land once it is vacated.

As far as redevelopment is concerned, it is going to go for at least 4 to 5 years, maybe 6 years. After we see that the whole redevelopment is completed, then that land will be vacated and then fresh development of those land will be coming after 6 to 7 years.

Today, out of the first 2 lakh projects which is being announced for Dharavi, we have right of refusal, that we are doing. Since these 2 lakh houses has to be made within a period of 5 years, I think by the time we are through with some of the projects, we can further get an opportunity of the same size later on after 2 years.

Presently we are the first person to right of refusal, and if we can build up our capabilities in Mumbai, then we will be getting more and more chances. They have a fixed timeline of making 2 lakh houses, then that can be through other players also who can be participating for Dharavi redevelopment project.

Okay. If I just to, I mean like, probably what you all said just to repeat, the new opportunity for Dharavi will come only once we deliver these two projects, is that...

No, no, no, not only two projects. The whole Dharavi redevelopment is requiring 2 lakh houses to be built first.

Once those 2 lakh houses are built in phases, after 3 years if we are able to deliver 40,000, 50,000 houses, those 40, 50 or whatever 20,000 houses will be shifted from Dharavi to this new location of redevelopment. Later on those land should be vacated and then only this new development of Dharavi will start.

Okay. Got it, got it.

Then maybe in terms of your presentation mentioned we have deployed almost 16,000-plus labor across the project sites. Just to understand the intensity of it, historically, how this number has been, and it is becoming 16,000-odd crore, just to get a perspective, can you share the previous numbers, what it used to be like?

It is very difficult to mention this previous number because it depends on the typography of the work going on each project. Presently my requirement is in the range of 16,000 to 17,000, and we are almost through with the requirement of all the projects.

In peak, you can still see 3,000 to 4,000 number will still be added in next one or two quarters, because more and more activities start at each project. Some of the projects are in foundation, some of the projects are in finishing, some of the projects are in MEP.

It depends on that what type of activities is going on. If it is purely core and shell, then the requirement is a little bit less.

When the project core and shell is over and all finishing, MEP, and everything is going on, then there will be a requirement from different trades also.

Okay. Sure, sir.

Sure. I think that's all from my side, sir.

Thank you very much.

Thank you. Thanks.

Thank you for the opportunity. Sir, my first question is I wanted to understand what sort of impact we have seen on the cost front because of the war escalation, and out of the total order book, what is the percentage of the order book which is fixed price in nature?

See, as we have been telling you every time that all Adani projects are pass-through cost, there is not much impact on any of the projects of Adani. And 30% order book which is consisting of our order book which was in that 5,500 to 6,000, large projects are almost under completion.

RVNL, as Pooja already said that it is going to get completed by October. SMC tower, we are going to complete by next June, 2027.

Dharoi, package one is completed, package two is going on. Ambaji is my fresh order, it has no much impact because now the things are a little bit improving.

We can say that the few of the activities at SMC and RVNL were impacted because of the cost of aluminum and copper going a little bit high.

Sir. Sir.

Sir, my second question is, are there any new segments which we are planning to enter post the acquisition of leading parent?

Pardon me? Again repeat your question.

Sir, after Adani has acquired us, are we planning to enter a new segment in company?

No, no, no, as far as our expertise is concerned and as far as our infrastructure we have created, we try to remain in building only. Building anything right from industrial, data center, commercial, hotel, hospital, anything, but not out of any projects which is not related to buildings.

Sir. That answers my question.

Thank you so much and all the best.

Thank you.

Yeah. Am I audible now?

Yeah.

Yeah. I just wanted to clarify on the order book.

What could be this number at the March end? Is there anything that we can share on this side?

I think as we have already told you that we'll be expecting some ₹5,000 to ₹6,000 crore of order book, and if we completed that we are able to execute more than 4,000, you can calculate what is outstanding order book. It is in the same range, plus 1,000.

Okay. Sir, also geographically, Northern side of the state other than Gujarat and Maharashtra, any major projects are we looking out for, maybe even airport projects?

No, presently we are focusing on our own projects and Adani projects. We try to make our order book between 75% to 25%, as 25% non-Adani and 75% 70% to 75% as Adani.

As far as order visibility is concerned and the order is concerned, we have sufficient visibility for next 2 years, we are not going to enter into different region as of now. We'll be focusing on Gujarat and Mumbai only.

Okay. In terms of the Dharavi work that you mentioned, what is the total pool of order that Adani Group is trying to execute?

What will be PSP share of that building in whatever the Dharavi project has to be done? Is there any...

Mentioning what will be the share is difficult, as I answered in this before 2 minutes, that this is a long 5 years project and they have to build 2 lakh houses. Probably if we are able to perform well in next 1, 1 and 1/2, or 2 years, we will get the first right of refusal as far as Dharavi is concerned.

To complete the project within 5 years to make 2 lakh houses so that the residents can be shifted to their new houses and the development of the Dharavi land can be taken up after 5 to 6 years, they can give it to some other contractors also. PSP will always have a better edge as far as being a part of this Adani Group company.

Just on the capability side, so that we are in the first two, like you mentioned, we have the right of first refusal. What all things have we done in the last 6 months or 9, 8 months to ensure that execution side we don't falter, or we'll be able to at least exceed the expectations?

That's what I said that this month employee expense has all gone little bit high, because we are building up the team to multiply ourselves to 1.5x to 2x from last year. We are in the process of standardizing ourselves so that we can cater more and more orders from Adani Group and deliver their projects on time.

Okay. Sir.

Thank you.

Hi, sir. Hope I am audible.

Yeah. Sir, just one question, while you were mentioning the building segment, you mentioned the data center part as well.

Just wanted to check, do we have any specific order from the data center, maybe just the civil work of the building, and are we planning to enter into it? What kind of size we would be looking at?

Because this is a segment which can give us a drive our order book going forward to a larger extent. What is your view on that particular segment?

Is it going to be big, let's say 10%, 20% of order book, or it is just something that we are starting as of now?

See, presently we are focusing in Gujarat and Mumbai, and specifically Mumbai, as we already declare this will be a more major part of Dharavi only. As far as data centers are concerned, in Mumbai and the new data center which are coming up in Visakhapatnam, I think we are not that part as of now.

Later on we don't know, because it's again a part of a building only. That can come to our order book.

The things which are going to develop in Gujarat like Dholera, they have two lands, one is for the data center and the second is for defense. Those types of work can come in future.

As of now, we'll be focusing on airports, city-side airports, reality, their own requirement of housing colonies at Mundra, and MediCity. MediCity, both the projects that can come later.

First, we are already started in Ahmedabad, and Mumbai it will come after 3 to 4 months. Probably these two projects we can consider can be a part of PSP.

One is already a part of PSP, second can be a part of PSP in future.

Got it, sir. Okay.

That's it from my side. Thank you.

Hello?

Am I audible?

I want to know, sir, what is the revenue in this quarter from precast side?

See, I think we don't have a separate revenue for precast side because the projects which are we doing is a part of the precast also. We do not have a separate identity, but I think we are doing better and better.

Throughout the year, our precast plant capacity is in the range of ₹200 crore. We'll be executing about ₹150 to ₹200 crore throughout the year, whatever may be the project.

Getting exact revenue for precast today, I don't have the figure. In general you can understand that the precast can generate a revenue of ₹200 crore from the plant side.

Sir. Okay.

Approximate precast margin, sir?

See, it is again a part of the business, it remains in the same margin as we are not working for any other project except Adani. Previously working for some infrastructure work for bullet train for L&T.

Now we are purely focusing on buildings, and that buildings are also related to Adani Group only.

Got it, sir. Got it.

Thank you.

Hi. Sir, just to get a clarity on Dharavi 1, ₹3,000 crore order book that we have, which if if we translate in terms of in terms of the number of houses, is it does the entire 40,000, 50,000 houses that we want to build, that is a part of this ₹3,000 crore order book or this will be a even even lesser number?

No, no, no, it will be a little bit lesser number. You see, ₹3,000 crore, each house is in the range of ₹10 to ₹12 lakh.

If you consider 350 square feet and ₹3,500 per square feet as a cost of the house, it is about ₹10 to ₹12 lakh per house. So 3,000 means 30,000 houses we are at presently building.

The total is 2 lakh houses. What we can consider as total Dharavi development, it is 2 lakh houses, out of which we are making 30 to 32,000 houses today by doing these two projects.

Okay. Once this two projects will be over, then only we can take the new, or it can be even the mid of this ongoing, we can also take other Dharavi projects also?

See, once, Shravan, we should understand, most of the concrete when they are settled project and it is going up beyond basement and from the first to second floor, all the other floors are typical. The complexity is more at the foundation level.

Once any good site is settled, you can always start a new site. That depends on how we are established in Mumbai and how we are performing on these two projects.

Once we are stable on these two projects, you can always take up a third or fourth project of Dharavi.

Okay. Got it.

Hetalben, this quarter the tax rate was 35%. For full year, can we have this normal 25% tax rate, or it would be on the higher side?

No, it will be slightly on the higher side because there are certain expenses which are not deductible in tax. It's a permanent difference.

For the year, it will be slightly on a higher side.

Okay. If you have to look at in terms of the cash balance versus what we report, so as on March let's say we were having around close to ₹400 and ₹13, ₹15-odd crore cash.

Against that, as on June the cash level would be the similar 400-odd crore?

Cash, you mean to say...

Cash and bank, what we report in the balance sheet, yeah, combined.

Yes, yes. It will be on the same level.

It will be slight higher.

Okay. Thank you.

Good evening, and congratulations on a very good sales growth this quarter, and especially with the better working capital. That is very encouraging.

Now, Prahaladbhai, you've mentioned this pass-through costs with projects. What is the margin we are keeping in them?

See, it is more about cost plus percentage on overall cost of the projects. It is not about what is the margin on pass-through.

All the materials whatever we are buying, it is always a pass-through. Once we understand the cost part, we put one base as a cost when we are calculating cost plus percentage, we are putting one X cost.

When we buy, there is a difference, and that difference is already paid in the running bills.

Hello? Okay.

I haven't fully understood, but...

See, when we talk about cost plus percentage, it is on the overall cost of the project. That whatever cost which we have decided as overhead, profit, and profit on material, and profit on labor, it comes as a consolidated figure which will be in the range of 20% to 25%, which we usually are going to bid.

When we talk about each of the material, there is not a separate percentage for each of the material. That's what I'm trying to tell you.

Okay. The margin is pre-decided, and as and when the material is utilized, it's all inbuilt into the ongoing billing.

It's all inbuilt.

Yeah. It is an item rate contract where the materials which you are utilizing comes at a base rate when you quote it.

When you buy it, if there is a difference on plus or minus side, that difference is again paid in the bills.

Okay. What is the range, low and high range on these projects, on the cost-plus projects?

No, no, it is never you mean to say the inflation part of the material which is going...

No, no, no, the pre-decided cost plus on the pass-through. You have mentioned that mostly the Adani projects were the cost-plus.

What would be the range, 10% to 20%, or something like that?

I already said the total EBITDA level when we talk about Adani projects, it comes in the range of 6% to 7%. We talk about projects which are with PSP, we have been doing at a range of 8% to 9%.

At EBITDA level you can consider cost-plus formula works out at 7% at EBITDA.

Oh, so that is it's very very tightly controlled. It's not a large range.

It's a very small...

There is always a gap of 1% to 2% in terms of execution. These are standardized rates for each type of projects.

If I am working in Mumbai, there will be difference of 3%. If I am working in Mundra, there will be difference of 1 and 1/2%.

It depends on what type of project you are doing. Sometimes whatever the overheads which we have considered in the type of projects jiska average gina tha, uske hisab se koi project fast chal jata hai, then we can have a saving on 1, 1 and 1/2% on overheads side also.

This is one of the example. Once we go through with 1 or 2 years, we will get a clear idea how does this cost-plus formula is working.

Mathematically, this is coming at 7%.

Okay. Okay.

Thank you.

Thank you.

Thank you all for joining us today and for your active participation in the earnings conference call. We sincerely appreciate the continued trust, confidence, and support of our shareholders, investors, analysts, and our stakeholders.

We hope we have been able to address your key questions and provide a clear perspective on PSP's performance, growth plan, and outlook for FY '27. Should you have any further queries, please feel free to reach out to our investor relationship advisor, EY, who will be happy to coordinate with us and assist you offline.

Thank you.

Thank you everyone.

Thank you.