Ladies and gentlemen, good day and welcome to Dilip Buildcon Limited's Q1 FY2027 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded.

I hand the conference over to Mr. Sanjeev.

Thank you, and over to you, sir. Thank you.

Good morning, everyone, and thank you for joining us today to discuss the audit financial performance for Q1 FY2027. From the management, we have Mr.

Devendra Jain, MD and CEO, Mr. Rohan Surawanshi, Head, Strategy and Planning, and Mr.

Sanjay Bansal, the CFO. Before we proceed, I would like to bring to your attention that certain statements made during the discussion may constitute forward-looking statements.

These statements are based on our current expectations, assumptions, and beliefs regarding future developments and are inherently subject to various risks, uncertainties, and factors beyond our control. Such forward-looking statements involve both known and unknown risks, and we advise you to interpret them with caution.

I will now hand over the call to Mr. Rohan Surawanshi for his opening remarks.

Thank you, and over to you, sir. Good morning, everyone.

On behalf of the entire DBL family, I extend a warm welcome to all our investors and analysts to our Quarter 1 FY2027 earnings conference call. The financial results and investor presentation for the quarter have already been uploaded on the stock exchanges, and I trust you have had the opportunity to go through them.

Let me begin with providing the broader sector environment. The infrastructure sector continues to enjoy strong policy support with sustained government focus on roads, railways, water, transmission, and renewables, all sectors in which we are currently and actively engaged in.

The awarding cycle in the first quarter was on the softer side, as is usually the case, and particularly in the national highways, on account of the ongoing recalibration of the Bharatmala pipeline and the process-related delays. However, the medium-term signal from the government remains constructive.

During the quarter, NHAI articulated its FY2027 project pipeline of 54 highways and expressway projects covering 2,442 kilometers with a total capital cost of approximately rupees 1.80 lakh crore, spread across 13 states. Of these, 25 projects are proposed under the EPC route, 21 under the HAM route, and seven under the BOT route.

This gives the industry a clear line of sight on award activity for the balance part of the year. It is also heartening that aligned with our own strategy is the acceleration of the government's own monetization program.

NHAI has finalized 17 highway stretches, spanning approximately 1,693 kilometers, for monetization in FY2027 through which BOT and InvIT routes, and which is expected to generate proceeds in the range of rupees 32 to 35 thousand crore. This is part of the second National Monetization Pipeline, under which the roads sector alone is targeted to unlock rupees 4.42 lakh crore between FY2026 and FY2030.

This validates the InvIT-led capital recycling model we are building at DBL and reinforces the depth of the institutional market for the operating road assets we develop and transfer. Now, global uncertainties around crude prices definitely continue to weigh on fuel, bitumen, and related input costs.

Working capital cycles across the industry remain elongated and administrative delays on project approvals and payments have persisted through the quarter. Now, in our assessment, these are cyclical rather than structural, and the medium-term thesis for Indian infrastructure remains firmly intact.

Our approach, therefore, continues to be one of selective tendering, execution discipline, and preservation of balance sheet strength. Now, coming to DBL's performance, our order book stood at rupees 27,691 crores as of 30 June 2026, with a well-diversified presence across 12 verticals.

Key segments include mining, roads and highways, irrigation, and renewable energy, which together form the core of our order book. This spread is a deliberate outcome of the DBL 2.

0 strategy and gives us strong revenue visibility without dependence on any single segment. Now, out of this order book, in the NGO, the reported order book is about rupees 5,224 crores, which represents only a three-year rolling snapshot across the Sianmal, Pachwada, and Potangi SPVs.

Beyond this, the balance contract value of the mining sector stand at approximately rupees 1.03 lakh crore at current pricing. These assets provide a substantial pool of long-term contracted revenue beyond the reported order book.

In FY2027 quarter one, order inflows stood at approximately rupees 268 crores. As I mentioned, this is the first quarter, and the ordering activity usually picks up at the end of the financial year, and we are very hopeful of maintaining our guidance of 10,000 to 12,000 crores of new orders in this financial year.

Currently our bid pipeline stands at approximately one and a half lakh crore across sectors. We continue to maintain our selective bidding approach, prioritizing profitability, cash flow visibility, and balanced risk-reward over pure top-line growth.

Additionally, I am pleased to share that DBL has been declared the L1 bidder for the construction of the Kachel to Kodar Reservoir Link Canal pipeline project in Chhattisgarh on a lump sum basis, which is valued at about rupees 2,524 crores. This win further reinforces our positioning in the water and irrigation vertical, which remains a strategic focus area within our diversified order book.

Now on the execution front, during the quarter we completed three HAM projects worth rupees 1,700 crores, all forming part of the Bengaluru-Vijayawada Expressway in Andhra Pradesh. Each of these packages were completed ahead of the scheduled COD, consistent with our track record of nearly 90% early completion across our project portfolio.

Our mining vertical, which is progressively becoming the most important driver of our long-term earnings visibility and predictable cash generation, the total coal production for quarter one FY2027 stood at 4.79 million tons. At the Potangi bauxite, production is yet to commence, and we will update the market as we approach the operational startup.

However, we remain firmly on course to reach our previously guided coal production of approximately 57 million tons by FY2029. At that scale, DBL will be one of the top three participants in India's energy security architecture and a significant contributor to the country's coal supply mix.

On our multi-asset platform, Anantam Highway Trust continues to progress in line with the roadmap we had shared at the time of listing. As of 30th June 2026, DBL along with its associates and economic interest hold units of approximately rupees 1,314 crore, at face value, in Anantam Highway Trust, and approximately rupees 207 crore, fair value of units in Shrem InvIT, taking the total value of units held by the group to approximately rupees 1,521 crore.

On the pipeline of asset transfers to the Anantam Highway InvIT, we remain on track to transfer the balance HAM assets in phases through March 2027. The next tranche of 11 assets that will be flipped is expected to require less than rupees 81 crore of incremental equity investment while generating InvIT units valued at approximately 1,750-plus crore.

Beyond the HAM portfolio, I am very happy to report that our multi-asset platform is being built further through the 1,977 megawatt solar plant mandate that has been awarded to us in FY26, and the Mehkali interstate transmission project in Karnataka. As these assets are also commissioned, they will feed into the recurring distribution income over the medium term.

Beyond these assets, we also have water, HAM and oil and gas portfolio, which we will also look to put into an InvIT structure, so that it is held off DBL balance sheet, plus held in the most tax-efficient manner, and providing long-term cash flow visibility to the group. Now coming to our debt position.

Now this is the question that is usually asked, and I'll just take some time to explain where we are. On a standalone basis, as on 30th June 2026, stood at rupees 2,106 crore, compared with rupees 1,880 crore as on 31st March 2026.

Now this movement reflects a normal seasonal build-up in working capital that is typical in the first two quarters of the fiscal year, and has been the same in the last few years, if you look at our past record. The normal working capital cycle has moved marginally from 131 to 133 days.

However, we expect working capital to normalize in the second half of the year. The standalone net debt to equity stood at a comfortable 0.31 times as of 30th June 2026.

The consolidated net debt as on 30th June 2026 stood at rupees 7,801 crore, and the company will provide the additional current shortly. Now while these are the numbers, as I have said before also, our debt must be viewed in the context of whatever has happened in the last couple of years, and in the context of the asset base that sits on our balance sheet.

Now when we first gave the vision of DBL 2. 0, we expected our debt levels to reduce significantly further than what we have been able to do.

Part of the reason has been the last two years, two and a half years, has been years of low order book, which eventually led to lower revenue, which eventually led to lower profitability and lower capital generation, because of which we were not able to do as much as we had intended. In the same time, we were also investing in our assets, where DBL in the last two and a half years has invested 1,200 crore-plus from its own books into these assets, which will convert into InvIT units going forward.

Now had we not made this call of holding this investment and doing this investment, we would have been able to reduce our debt significantly, but all these things led to it. Now today, we hold InvIT units of rupees 1,521 crore already on our books, and we're expecting 1,700-1,800 crore of more InvIT units to come as the balance 11 assets are transferred to Shrem InvIT.

Besides this, I'd like I had mentioned last time also, our gross block of about 3,600 crore, which roughly is about 800 crore of net block, which is also almost entirely debt-free, is also on our books. That's again very positive.

Our goal to reach net debt positive on a standalone balance sheet by FY28 remains firmly on track, let me assure you guys. It will be supported by the combined cash generation from the EPC, MDO and the rising InvIT distributions.

I reiterate that our debt reduction guidance of 600-800 crore that we mentioned at the start of the year is on track, and we will achieve that. At the same time, let me reiterate that our guidance on our revenue of 30-40 percent also remains on track.

None of our guidance that we have given in the last quarter has changed, and we are very positive on that. See, the key thing that we need to understand that the revenue from our large projects, whether it's transmission, whether it's, road projects, whether it's solar, all those projects on water have not really started.

By as the year progresses, we will see significant build-up in our revenue because of all these new projects which are there on our order book. Now let me come to one of the most important and last agenda that I have to share with you.

I'm very happy and glad to share that the board has considered and approved a stake sale in our under-construction power transmission and solar projects, which represent a combined project cost of approximately rupees 8,400 crore to Alpha Alternatives. Now this deal is like the past deal that we've done with Alpha Alternatives, where the consideration under this transaction will be received in two parts: partly in cash and partly in units.

Once the final terms are firmed up, as the definitive agreements are signed, which should happen in the very near future, we will be able to disclose in detail how that is structured. What is most important that I can say, that as part of this arrangement, Alpha will also co-invest alongside DBL throughout the construction phase, to the extent of 49 percent, which will meaningfully reduce our equity commitment into these projects.

This freed-up equity commitment can be used for redeployment across our businesses, and will also help us in reducing our debt. More on this when we, and we will hold a separate call once we announce this deal to explain it in detail.

Like I said, as per regulations, I can only share this broad part right now, that this is a transaction in line with our past transactions, and which further both our debt reduction goals, and also our second goal of building long-term cash flows for the company. To summarize, quarter one FY27 has been a quarter of steady execution against a sectoral backdrop that was on the softer side in terms of awarding activity, but constructive in terms of medium-term policy signals.

Every one of our three engines, EPC, MDO and the multi-asset program, is progressing in line with the roadmap we shared with you last quarter, and the strategic direction of the company remains unchanged. We are confident the compounding effect of these three engines will translate into strong and sustainable value creation for all our stakeholders over the coming years.

I can very confidently say that our capital efficiency will be amongst the top guys in the sector, and the ROE and the ROC will be much better, as not only our investment has reduced significantly, but also the return that we will accrue to DCM will be meaningful. Now, with that, I'd like to hand over the call to our CFO, Mr.

Sanjeev Ansal, who will take you through the financial performance in greater detail. Thank you.

Thank you, Rohanji. Good morning to all.

I will now briefly take you through the key financial highlights for the quarter ended 30th June 2026. On standalone basis, the revenue from operations for quarter one FY27 stood at ₹1,930 crore, and EBITDA stood at ₹199 crore.

EBITDA margin was 10.32%, marginally expanded from 10.11% in quarter one FY26, reflecting steady cost management even in a quarter of moderate execution. The profit before exceptional item and tax grew to ₹72 crore in quarter one FY27 from ₹57 crore in quarter one FY26, an increase of approximately 26% year-on-year.

The profit after tax stood at ₹39 crore in quarter one FY27 as against ₹123 crore in quarter one FY26. The base quarter profit after tax included an exceptional gain of approximately ₹98 crore relating to divestment transaction, and once we adjust for this, the underlying profitability is a clean improvement during the last quarter.

Now come to the consolidated performance. The consolidated revenue from operations for quarter one FY27 stood at ₹2,378 crore against ₹2,620 crore in quarter one FY26.

The EBITDA excluding other income was ₹429 crore with EBITDA margin of 18. 05%.

The profit before exceptional item and tax at the consolidated level was ₹127 crore during last quarter. The profit after tax on consolidated basis was ₹128 crore in quarter one FY27 against ₹271 crore in quarter one FY26.

With this, I would like to hand back the call to the operator for the questions and answers session. Thank you so much.

Thank you very much. We will now begin the question and answer session.

Anyone who wishes to ask a question may press star and 1 on the telephone. If you wish to remove yourself from the question queue, you may press star and 2.

Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles.

Participants, you may press star and 1 to ask a question. First question is from Nanu Shivansha from Dolat Capital, please go ahead.

Hi, thank you sir for the opportunity. A couple of questions, Rohan sir has already mentioned in terms of the guidance, most of the parts, just two three things on that front.

On the EBITDA margin guidance for this year 11-12% that remains the same? The guidance is as we had indicated earlier on, that 10-12% comfortably, that guidance is still there only.

Okay. In terms of the execution, when we are saying 30-40% growth, primarily the fourth quarter, then we will be seeing a significant growth; that's the way one can look at?

हाँ, सर वो third quarter से ramp up दिखने लगेगा and fourth quarter में फिर और हो जाएगा. This will continue to the first quarter till rains come, मतलब next year, next financial year.

Okay. Till now, how many value of projects that we have bided and where bids yet to be open?

करीबन 15-20,000 करोड़ के नीचे projects किए होंगे, sir, हमने bid, जो अभी खुल रहा है 15,000 के कम से. Okay.

This working capital that we are seeing, obviously in 1Q, 2Q normal cyclical increase, year end how one can look at, will it be a kind of a 10-15 days kind of a reduction versus the last year? How one can look at on the working capital days core?

120. हाँ, yeah, the working capital days will reduce about 120, where we expect, and overall debt also, like I mentioned, that will also reduce 600-800 crores, that we have given the guidance for.

Got it. Sir, now on the MDO part, a couple of things I just wanted to understand.

This quarter, first, last time we have talked about that saying for 27, 28, and 29 we were looking at 2,500, 3,000 crore plus and 4,000 crore kind of a revenue. In terms of the coal production you have mentioned that 57 million ton by FY29.

Looking at the first quarter number, it seems that to achieve for FY27 2,500 crore this quarter we have done 362. We need a significant kind of a 82-83% kind of a growth.

Similarly in terms of the coal production also we need a decent growth. Just wanted to understand that we will be able to do that.

In the coal production, exactly जो plan था, इस साल में in the CR month, we have planned around 37 million metric ton of the coal production. First quarter में वो कम इसलिए है कि वहाँ पे vacation उसका कम हुआ था and another second and third quarter में replenish होके we will close with 27 million ton in this year and 7 million ton will be in Pachwara project.

Pachwara project में अभी coal production कम इसलिए दिखता है, there was some strike between the PTCL and वहाँ के employees के बीच में, तो वो sorted हो गया, rather two-three quarter में वो ramp up हो जाएगा. The same plan is there, 57 million ton we will achieve in the FY29 as per the contract plan, उसमें कोई change नहीं है.

Okay. Sir अगर हम broadly, मतलब थोड़ा सा realization के angle से, मतलब whatever the numbers we have, this quarter का अगर 362 crore का revenue and production जो 4.79 million ton है, अगर वैसे देखते हैं तो realization जो 756 rupees per ton आता है, I understand there is a overburden का अलग है, coal का अलग है, but still Q4, मतलब Q4 FY26 last quarter से this quarter अगर देखते हैं तो वो close to 58% का jump हुआ है.

Just wanted to understand कि ये अभी realization का जो run rate है, ये continue रहेगा, या कुछ one-off जैसा था ये quarter में and जो coal handling plant है, वो कब तक आएगा? So कैसे यहाँ पे अभी कैसे अपने revenue angle से अपने कैसे देख सकते हैं MDO का अभी?

आप इसको coal handling plant contractually अभी ये financial year और next financial year the coal production will run without coal handling plant, as per the contract. और वही वो एकदम routine में चल रहा है coal handling plant में करीब डेढ़ साल पूरा करने में लगेगा.

Accordingly coal production ramp up होगा this year 27 million next year 35 million and फिर उसके बाद coal handling plant पे with the 50 million. In case of the Pachwada, 7 million is the contracted capacity, जो last two years में achieve भी किए, इस साल भी उतना ही होगा.

तो बाकी separately आपके numbers को एक बार हमारी team आपके साथ update करके आपको बता देगी कि आपके numbers कैसे हैं. लेकिन major जो आप revenue में jump देखोगे, वो coal handling plant जब बन जाएगा, then our coal fee 78% will become 100%.

Then the major jump will come in the FY29. Okay, समझ गया.

Broadly अगर इसको भी, if I have to broadly break it, breakdown करना रहेगा, तो इस साल में जैसे अभी ये quarter में 362 करोड़ है, तो full year के लिए अपने कैसे देख सकते हैं? मतलब broader level पे अगर अपना अगर highlighted है कि 27 and 7, kind of 34 million then अगर होता है, coal production...

मैं आपको बताता हूँ. तो simple maths करो, आप 27 million in the CRML with the rate of around 600 rupee per metric ton, and 7 million in Pachwada with the rate of 1,200 metric ton whole year.

Okay, समझ गया, समझ गया, समझ गया, sir, समझ गया. Sir, just one thing to understand, ये जो 11 projects अपने को भी transfer करने के हैं, तो उसमें से ये साल में कितने हो जाएंगे, and बाकी के कैसे होंगे.

तो ये जो अभी just wanted to understand जो 1700-1800 करोड़ अपने को भी InvIT अपने को मिलने के हैं, तो वो कैसे आएंगे अपने पास? इसमें से 11 projects में से, इस ही महीने में 4 projects InvIT में flip हो जाएंगे, and balance 7 projects में से 4 का COD already हो चुका है, 3 का COD up to the September हो जाएगा.

Once that we cross the six month after the first COD, जैसे ही एक LOC आता है, most likely this financial year end से लेके Q1 of the next financial year 100%, 18 projects पूरे transfer हो जाएंगे. Okay.

Sir, जो भी अपना MDO में अपने पास कोई extra, obviously we are doing much better in terms of the margin at MDO level. तो वहाँ से अपने को standalone पे जो debt reduction करने का है, मतलब अभी जो 2100 करोड़ का है, this year 600-800 करोड़, तो वहाँ से हम लोग can we divert or maybe can give a dividend to the standalone?

That will also help कि खाली अपने को जो InvIT से ही जो income आएगा and the standalone पे जो improvement दिखेगा, उससे ही हम लोग debt reduction देखते हैं. अभी देखिए bank ने permit किया है कि उसमें internal accrual का जितना भी पैसा already bank में है further equity investment CRML coal project में zero हो जाएगा.

तो आगे उसमें कोई भी equity internal accrual से लगने वाला है. Plus further अगर आप देखोगे तो last financial year में जो 15,000 plus करोड़ के project आखिर में Q4 में आके add हुए थे उसका किसी का भी revenue participation अभी शुरू नहीं हुआ है.

The major project is our Bihar का 35-40 करोड़ का जो project है, अगर हम इसमें solar में देखेंगे तो लगभग 55-60 करोड़ का project है, 1700 करोड़ का project है, transmission project, and KRC, राजस्थान canal करीब 2,000 करोड़ का project. ये सब का revenue participation will start from the Q2 slowly and Q3-Q4 में ये peak पे चला जाएगा.

Once the revenue will come, तो बाकी सारी चीज़ें ramp up हो जाएंगी. बाकी अगर आप देखोगे तो last पूरे quarter में, जब पूरा war के कारण disruption था, we buy the diesel in the 140 rupees and the bitumen prices is double, उसके बाद भी सारे revenue guidance जो थे, वो पूरे हुए, सिर्फ थोड़े से plants आगे पीछे हुए लेकिन ultimately जो हमने last quarter में भी बोला था कि इस साल में लगभग 700-800 करोड़ का हमारा debt reduction होगा तो 100% होगा.

We will achieve the 30-40% revenue guidance जो plus करके दिया वो 100% achieve होगा और आपको Q2, Q3 onwards वो सारी चीज़ें हमारे results में दिखने लगेंगी. Great, great, sir.

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

Thank you. Participants, you may press star and 1 to ask a question.

Next question is from Mr. Deepak Purswani from Swan Investments.

Please go ahead. Yeah.

Hi. Thank you for the opportunity and congratulations for the deal.

Sir, just wanted to check it on this deal front. In the presentation we have shown that the balance equity requirement for these two projects is going to be around 1,250 and 420 crore.

Once this deal culminate incrementally, do we have to put the equity or this would come entirely from the Alpha equity? Thank you for your question.

Yes, you are right. In both of these projects put together it comes 1,600-plus crore of equity needed.

Now Alpha will be putting 49% during construction, which means 800-odd crore of equity, somewhere around in that range will come from Alpha, and only the remaining 800 will need to be put from DBL side. Okay.

Secondly, just wanted to check on some of the development which has recently happened, especially related to the Kerala project. How should we see that development from overall project execution point of view, and how much debt is already there in the order book, and is there any implication for us going ahead?

Kerala project में committee ने वहाँ पे visit किया था, they were given the report that was a natural calamity, और वो tunnel में हमेशा दो portals होते हैं construction के, तो वो एक portal side में है. Most likely इस month end में एक portal से उसका tunnel का construction start हो जाएगा, तब तक जिस portal पे ये दुर्घटना हुआ है उसका कुछ ना कुछ ज्यूरी related चलेगा.

बाकी project पूरा on track है and that accident was due to purely natural calamity है. वहाँ की एक Supreme Court की guided committee ने report दी है इसका.

Okay. Secondly, sir, I mean two things.

One, from the working capital point of view, आगे से कैसे देखना चाहिए कि overall what is the kind of reduction जब ये आपका ramp-up होगा तो उसको कैसे देखना चाहिए, especially in the case of inventory जो at this point of time relatively थोड़ा higher level पे है. Secondly, on the margin front, because of the commodity price hike, वहाँ पे हमारा pass-through हो जाएगा या still we are facing some problem in terms of the commodity prices?

Commodity prices तो government ने कुछ-कुछ relaxation दिए हैं, उसमें especially in case of the fuel and bitumen, तो 60-65% आपका वापस reimburse हो जाएगा. लेकिन overall कहीं-न-कहीं margins पे impact पड़ा है उसका, क्योंकि disruption के कारण बाकी भी चीज़ें costly हुई हैं, like cement, steel and everything, transportation कारण.

बाकी in future मुझे ये लंबा disruption नहीं नजर आता है. मुझे लगता है Q2-Q3 में जाके ये level up हो जाएगा.

और working capital के लिए मतलब आप, working capital basically, like by this year end, we may reach to 120 days and next year probably around 90 days of the total. Sir, from the finance cost point of view इस साल में how should we see this finance cost?

The finance cost for full year would be total 350 crore, because we are basically expecting some lesser utilization of working capital during quarter three and quarter four. Our targeted cost is around 350 crore.

Okay. Thank you.

Thanks a lot and wish you all the best. Thank you very much.

Padesh Bhansal ji has asked to answer question. Next question is from line of Vishal Periwal from PL Capital.

Please go ahead. Yes, thanks for the opportunity.

Sir, a few questions on the slide that we gave on equity investment tracker. I think just a few clarifications.

One is you mentioned that for transmission and solar, the total equity requirement is almost 1,600-odd crores, and then half of it is coming from Alpha. In that slide, has the serial number H and I, if you just do a summing of both, then the number is coming lower than 1,600-odd crores.

How do you reconcile that thing? As Rohanji said, the total requirement in transmission and solar is 1,650 crore, and around 49% will be infused by Alpha.

We have also arranged structured equity of about 900 crore. If you refer the H, N, I line, almost 85% equity will be sourced through investor and through structured equity.

Okay. When you say structured equity, it is not an internal accrual.

It is coming from... It is not from internal accrual.

We have already raised 900 crore. Okay.

Then this very clearly, like you mentioned, in the last two-and-a-half years also, we will from its book will invest 1,200-plus crores of equity, which obviously had we not done, we could have reduced our debt by the same number. Now while our goals are twofold.

We want to reduce debt on the standalone front. We also want to build a long-term cash flow business, which is why the individual units we want to hold assets.

For that, how do we achieve that goal is, A, we don't use a lot of capital from our own books to build these assets. What we will do is, A, one party we have a partner, the one party is sourced by having a partner who will invest with us.

The second part is structured equity, where we get a structured equity player in place. One way is convert into a higher valuation at COD.

We will let go of whatever was the structured equity we have raised, and there we will sell that much off and use the remaining assets and keep the remaining assets on the book. In a sense, DBL balance sheet has free cash to reduce debt, plus we have equity for our assets, where we build those assets and we get the upside of the higher valuation once the COD happens.

Okay. Now, I think you're linking it with debt also.

As we raise debt at a role, I mean standalone, and that's the same we are putting in equity, and that is once, like, Alpha putting money, we can reduce the debt. Is that what the...

No, no, no. There are two separate parts.

One is the equity that Alpha is putting in. That they are putting as a partner into it.

Besides the 49% that Alpha is putting in, we have also made arrangements for structured equity to come in for our part of 51%. For that part.

Now that what we are putting in is the idea and the goal there is that we will use whatever we want to. The idea and goal that our standalone debt does not increase, and we use our standalone cash flows to reduce our debt.

My very simply, whatever cash flows I have today, whatever free cash the company generates, either it can reduce debt or it can put in equity, correct? Yes.

I am saving all the free cash that the company creates for reducing the debt, while and keeping a line open for structured equity, where as soon as my project, during construction we build it, and as soon as it gets... my project gets completed and I get my units, I will flip the structured equity into those units, pay off whatever structured equity is left, and retain the remaining units for DBL.

Okay. Then in the same slide, the serial number F and G.

Is it fair to say these 20 crore and then 161 crore, they will be coming in P&L as other income for us? This distribution from Alpha, this 161 crore partly will be received at DBL level, because the total 1,314 crore equity is held at two places, DBL and one subsidiary.

Basically this 161 crore will receive from the Alpha in DBL and partly in one of the subsidiaries. Okay.

The reason why I am asking is because if you do a difference of our number which was there in FY26 PPT and this number. Ideally the reduction which is happening is to the extent of like 60-65-odd crores.

Just thought to check, like, is it everything coming in other income, or probably something is some other subsidiary in a standalone business, or some other, the number is also going? The change in number is because the timing of transfer the asset to InvIT and getting the units.

The transfer of units got delayed by one quarter because in June we could not transfer. Now this transfer will happen in this quarter and we will receive around 700-odd crores units against for asset transfer what Rohanji said.

It is because of that. Otherwise all this long-term amounts written from F to I will be received in cash.

Okay. Then thank you very much.

R. Sabans ji, may press star and one to ask a question.

Next question is from the line of Vinay Chaudhary from Enixa Capital. Please go ahead.

Hello. Hi, thanks for the opportunity.

My question also is around the consolidated and the investment tracker slide. Where we mention the coal MDO, the requirement, cash requirement will be from SPV internal accrual.

Also currently what is our cash flow generated from this MDO? Because we need to also spend some capex for the coal handling plant and other stuff.

Can you share some, numbers on the cash flow, what's currently being generated, and over next two years, how will this get, addressed by the internal accruals? Okay.

Basically the total capex at CRML was originally envisaged to 2,750 crore. Out of that around 40-45% capex is already done.

More than 50% equity already put in. There is around 300-odd crore cash is already sitting at the CRML level.

Basically this slide, the slide number 24 says, as per the total original assessed equity, 275 crore is still balance, which we are saying it will be managed through the SPV internal accruals and the cash sitting at the SPV. To answer your question, I have already have cash generated sitting at the balance sheet, which is higher than 275 crore.

The equity will be met out of the internal accruals and balance will be raising debt, which is already sanctioned and disbursement will happen. One is our equity commitment of 235.

The other would be the capex requirement, as you mentioned, 50% order is pending. Just to understand, what would be the current debt on the MDO and the cash it can throw up through, advances.

Total outstanding debt as of 30th June at CRML level is 60 crore, which is partly equipment debt and partly the mining facility debt. Balance debt is basically total sanctioned at the CRML level is 2,000 crore.

We are still to draw around 300 crore. Equity, we have already said it will be managed through internal accrual.

Balance will be through disbursement from the sanctioned facilities. Got it, got it.

Lastly, where we have on the solar and transmission equity, as clearly mentioned that 1,600 is the total and our share attributable is about 51%. The 1,400 in HNI, that is on the total level.

The attributable cash inflow, what we are assuming here, is also supposed to be about 51%. Is that the right way to see?

Can you come again your question? Because there is some...

While the equity requirement in our column CD and E is on the total level, and out of that about 51% is supposed to be infused by us. Likewise, the cash inflow as well, the 1,450 crore.

That also has to be attributable on 51% to us? What we have assumed that...

Let me clarify again. The D and E, the total equity requirement is 60 crore.

Out of that 49%, meaning 830 crore will be invested by the Alpha. The balance 730 crore will be met out of the DVL contribution and some structured equity we already raised.

Total equity requirement will be met from three sources: Alpha, DVL, and structured equity. Right, right.

Lastly, on the consolidated, what we have about 7,800 on the net level, where do we see, this, say, the end of this year for FY27 and 28, where do we expect that to go? Sorry, sir, what was that question?

Can you repeat? Where do you expect at the end of the year to go?

For the net debt, which is currently standing at 7,800. We understand that on the standalone level we aspire to be net debt-free by FY28, but on the consolidated level, with the transfer of the assets and all, and the cash flow on the company level, where do we see this number of 7,800 going to by end of this year and, say, the next year?

Consolidated net debt will always be a cycle that will continue going on. We will complete assets, and as soon as the asset is completed, that debt will move out and go to, let's say, if we sell it to our own InvIT, it goes there, or if we sell it to someone, it goes out of our balance sheet.

At the same time, DVL will continue also investing. Because as a growing company, we will continuously investing in assets in PPP mode.

For every of those assets that we take, we will keep raising debt, we putting our equity, because that is how we will grow our business. That is how we will grow our asset business as well.

That will be a constant methodology that we will build assets, sell them, again build assets, keep selling them. That will go on.

There is no consolidated-level goal that we have put in place. There is a standalone thing that we have done.

All the assets that we do are primarily more on the annuity kind of, where the fixed return is already kind of envisaged. Hence we are very comfortable taking that kind of risk.

Banks are very happy funding that kind of project portfolio for us, and we have a very good track record as well. In the road HAM alone, we have done upwards of 45,000 crore of projects in the road HAM alone, which is the largest portfolio for any road EPC company.

This is a model that we are comfortable with, and we'll continue doing it. When we're looking at the company, it will be also standalone levels where we are saying we will be a near-debt-zero company in two financial years.

Thank you. Next question is from Nano Bhavan Mori from Anand Rathi.

Please go ahead. Hi, sir.

Thank you for the opportunity. Sir, first thing I just wanted to understand, sir, how does the MDO billing, the revenue recognition works, you know?

There are two parts to it, right? One is the overburden removal and second is the coal extraction.

Do we get the reimbursement or the billing when only the exactly coal is being removed, or do we also get for the OB removal? How does it work actually?

CRML का revenue recognition different है पहले मैं आपको बता देता हूँ. पूरे साल का एक year का mining plan होता है, उसके according वहाँ का एक striping ratio होता है.

तो आपको साल के end में वो striping ratio match करना होता है. During the month on month, आपको OB का एक certain rate पे payment होता है, और coal का एक payment होता है mining to the stockyard and stockyard to the siding.

अगर coal dispatched हो जाता है तो वो एक certain payment होता है. Ultimately year end में जाके आपको OB का जो भी payment हुआ है, वो adjust हो जाता है stripping ratio के against.

थोड़ी सी math complicated है, आपको separately मेरी टीम समझा देगी इसके लिए. पसवाला में little simpler है.

Once we dispatch the right from our siding, और जब Punjab government उसको receive कर लेती है तो वहाँ OB का कोई payment नहीं होता. सीधा उसके 1,150 to the 1,200 हमारा उसका coal receiving का rate होता है per ton basis में.

This is the way to recognize the revenue in both the mines. To keep it simple for my financial modeling purpose, right?

Can I directly take whatever the coal is being extracted, multiply by the rate, as per the coal mining agreement? That would be the right way to look at it?

मैं explain you. आपके modeling के लिए जितना coal production year-wise होता है, उसका around 55-50 rupees per ton CRML का around अभी rate है.

आप वो rate का करीब 70% लेके आप revenue कर सकते हो, क्योंकि 100% coal dispatch नहीं होता है, coal production करके रखा होता है. 7 million के लिए simple math है, आप 1,200 से math कर सकते हो.

Got it, got it, got it. Thank you, sir.

Thanks. Second thing, sir, I just wanted to understand about why not tunnel collapse.

Can this have an impact on our technical score? Just wanted to understand, especially, seeing the tunneling business, right?

Will that impact our future bids in the tunneling business? Just wanted to have a color on that.

नहीं, भविंजी, उसमें technical score जैसी कोई चीज़ नहीं होती. मैंने अभी already आपको बताया है कि एक committee ने ये report दिया है that was purely natural calamity.

उसमें हमारे construction के, हमारी procedure का कोई defect नहीं था. Last night जब ये वहाँ पे accident हुआ, उसके last night 300 एक night में बारिश हुई थी और हमने आपने देखा होगा, ये वही place है जहाँ 2024 में 400 लोगों का एक पूरा village collapse हुआ था और वहाँ पे casualty हुई थी बड़ी सारी.

ये वो वाला place है. तो this is a purely natural calamity.

हमारे technical score या हमारी tunneling bidding को ये impact नहीं करता. Got it, got it, sir.

Is there anything from the construction industry side, looking at these things? Because now we are facing more like, you can say, the torrential rain types, right?

We also saw the similar collapse, or maybe similar accident happening in the missing link. As a construction industry, are we trying to increase our standards?

How are we looking at these things? भविंजी, बहुत सारे discussions होते हैं technical लोगों के, बड़ी-बड़ी committees, जिसके लिए बनती हैं हमारे यहाँ के IITs और सारे institute इस पे लगातार काम करते हैं.

लेकिन ये जितनी भी natural calamity होती है, इसके लिए कोई भी structure, आपके पास जो precedent available होता है, उसी पे design होता है. अगर कोई precedent पे चीज़ें, आपका 300 बारिश या एक particular high flood level के लिए कोई design है और उससे अगर two times या three times होगा, तो कोई भी infra उसके लिए design नहीं होता.

तो इस तरह की चीज़ें आज ही नहीं. आज 30-40 years में भी कभी-कभी natural calamity होती है, कहीं bridge गिरते हैं, कभी-कभी overtop होते हैं पानी से, ये चलता रहता है सब.

लेकिन 100% engineers इस पे काम करते हैं कि last time क्या हुआ था, कौन सा soil characteristics था, अभी जो missing link पे गिरा है वहाँ पे भी heavy rainfall के कारण वो accident हुआ है. Got it.

Got it. Thanks.

Thank you. Next follow-up question is from Leno Sawancha, from Dalal Capital.

Hi. Sir, ये quarter का जो other income है standalone पे 40 odd crores तो उसमें InvIT का कितना रहेगा, मतलब उसमें SRM, Alpha का भी कुछ broad breakup अगर आप दे सकते हैं.

Total current income is 40 crore. Out of 40 crore, 26 crore pertains to the dividend, and 5 crore from the InvIT interest.

Around 31 crore pertains to the distribution, and out of 40 crore, you can take 31 from InvIT and 9 from my FDR interest and other income. Okay.

And ये 31 में से broadly SREM में से कितना होगा and Alpha से कितना होगा? मतलब income से.

Just a second. Okay.

26 crore, 19 crore dividend is from Anantam. Alpha's...

Total 26 crore dividend. That dividend is entirely, that 26 crore dividend is entirely from Alpha, and the interest is from Alpha and SREM rate.

Okay. नहीं, why I was asking broadly is, ये जो अपना capital equity investment tracker में जो for let's say for 28 for 28, for 28, के लिए भी हम लोग जो देख रहे हैं broadly, कि SREM में से 27 crore and Alpha में से 339 crore.

So वहाँ से standalone पे कितना number roughly होएगा? One of the participant was also asking.

Standalone में कितना जाएगा? Because we don't hold the entire units in the RDBL standalone, maybe in two, three companies.

Just wanted to understand, roughly one has to look at. SREM का कितना proportion that we hold as a standalone and Alpha में how much percentage as a standalone that we own?

भविंजी, total units are 1,300-1,400 crore of Alpha. Total 850 crore is basically at the DVL level, and the balance Alpha units and SREM units, these are at the subsidiary level.

Total distribution will come like, out of the total 1,500, 850 crore distribution will receive at the DVL level and balance at the subsidiary level. If you are reconciling with amount shown in equity tracker and the other income, then one part is missing, which is capital return.

Capital return is primarily in all the distribution, it varies. Sometimes it is one third, sometimes it is half.

Overall basis, as a thumb rule, you can take two third as a dividend and interest and one third as a principal return. Then...

Got it. That is very much clear.

Just one thing on the MDO. Sir has explained very well, Nivendra sir.

Just one thing, this current अपना जो margin, sir, that will remain even for next 2-3 years and maybe one can see a slight improvement is also possible there at a margin level. अभी श्रोभन जी, margin level अगर CRML की बात करेंगे तो till CHP completion margin will almost same रहेगा, थोड़ा बहुत inflation और उसके कारण थोड़ा ऊपर-नीचे होगा, and जब उसके अंदर CHP चालू हो जाएगा and then 78% will become 100%.

तब margin profile में tremendous change आएगा positive side में and in the Pachwada 7 million का margin का profile almost same रहेगा. Okay, समझे.

Broadly अपना coal handling plant आ जाएगा, पूरा capex हो जाएगा, उसके बाद अपने पास जो cash बचेगा MDO पे CRML particularly, that we can kind of transport to the standalone or any of our subsidiary to use for a debt repayment or for maybe further equity in any other project. We can pick it in DVL standalone.

Okay. मतलब वो जो पैसा जो MDO पे जो है, वो जब तक coal handling plant बन नहीं जाता, पूरा capex नहीं होता, तब तक भी हम लोग standalone पे उसको shift नहीं कर सकते.

वो एक बार हो जाएगा, उसके बाद ही हम लोग कर सकते हैं. वो understanding बराबर है, sir?

That's understanding मैं आपको clear कर देता हूँ कि coal में वो terminology होती है peak rated capacity. That is 42.

5 million metric ton in a year. That is the COD of the project.

तो the definition of the COD is the 42.5 million achievement, completion of the coal handling plant is the COD. तो जब ये दोनों चीज़ें हो जाएंगी तो 42.5 achieve कर लेंगे, जिसकी जगह we are planning for the 50 million.

Then COD will come. तो ये सारा का सारा जो आपने गणित बताया, complete हो जाएगा उसमें.

Okay. मतलब I was trying to understand कि in terms of the value unlocking अगर अपने को देखने का है, मतलब for the investor going forward, so that's the time that one can look at in terms of the value unlocking for the MDO, अगर whenever we want to plant.

That's FY29. Yeah.

Got it, got it. Sir lastly, ये quarter में कितना capex हम full करके, obviously बहुत ही कम है अपना standalone पे, but just wanted the number, and full year के लिए जो less than 100 crore जो हम सोच रहे हैं, तो that will remain the same?

हाँ, is will remain the same. Already तो quarter one में कोई बहुत बड़ा capex नहीं हुआ है, तो 100 crore लेके चलते हैं, वही कम replacement capex, again some important equipments.

Okay. Got it, sir.

Thank you and all the best. Thank you.

Thank you. Next question is from Mr.

Deepak Perswan from Sun Investments. Please go ahead.

Yes. Thank you.

Thank you for the follow-up, Ajit. Sir, just wanted to confirm on the pipeline, Bid pipeline which we mentioned, which are the key verticals which are a part of this.

Secondly, river linking segment as a whole, how we are looking at it, वहाँ पे bid pipeline कैसे grow हो रहा है, and what are the incremental opportunity we are seeing in this segment at current times, sir? Bid pipeline में most of the bid pipeline comes from the NHAI and MoRTH, लगभग 1.

25 lakh crore के projects already pipeline में हैं, जो roads से आते हैं. इसके अलावा अलग-अलग state-wise irrigation के projects हैं, उन्हीं irrigation के projectsों का river linking part होता है.

आपको कहीं पे river linking का अलग से identify project नहीं मिलेगा. We are doing one project in Rajasthan, जो एक dam से दूसरे dam को connect कर रहा है canal के द्वारा by the gravity canal.

That's also a river linking. Already the whole pipeline comes from the vertical, most of the roads, highways, tunneling, metro.

हमारे जितने भी 11-12 sector हैं, सबका मिलाकर करीब ढाई-तीन लाख करोड़ का अभी pipeline bid में दिखता है. Okay.

River linking specifically next two-three years side में हम लोग को कैसे दिख रहा है? वहाँ पे कुछ बड़े अच्छे projects आ रहे हैं या अभी जो irrigation side है?

काफ़ी सारी pipeline हैं. लेकिन आपको river linking जैसा आप project को एक बार distinguish नहीं कर पाएंगे कहीं पे कि river linking already चल रहा है.

लेकिन आप ऐसा उसका अलग से कोई bid pipeline निकालेंगे कि ये river linking है, वो irrigation के projectsों को भी जहाँ पे water अच्छे से होता है और जहाँ पे water की scarcity है उसको connect कर रहे हैं already. All the state governments are working on that river linking type of projects.

Thank you. Further line for the participant dropped.

That was the last question. I would now like to hand the conference over to Mr.

Ronsuriwanchi for closing comments. On behalf of the whole DVL family, I'd like to thank all our investors, analysts and friends who joined this and asked all the questions.

In case you missed out on any of the questions, please feel free to reach out to our team internally or to the Attractors team to understand whatever doubts you may have. I look forward to seeing all of you guys on our next quarterly call.

Thank you for coming. Thank you very much.

On behalf of the L&T Limited, that concludes this conference. Thank you for joining us and you may now disconnect.

Thank you.