You are on mute, sir.

Thank you very much. Good morning, everyone.

Welcome to Dilip Buildcon's Q2 FY26 earnings conference call. From the management, we have with us today Mr.

Devendra Jain, Managing Director and CEO; Mr. Rohan Suryavanshi, Head Strategy and Planning; and Mr.

Sanjay Kumar Bansal, Chief Financial Officer. Before we proceed with the call, I would like to mention the standard disclaimer.

The presentation that we have uploaded to the stock exchange, including the interaction in this call, contain or may contain certain forward-looking statements concerning our business prospects and profitability, which are subject to some uncertainties and the actual results could differ from those. Now I request Mr.

Rohan to take us through the key remarks, after which we can open the floor for a question-and-answer session. Thank you, and over to you, Rohan.

Thank you, Gautam. Good morning, everyone.

On behalf of the entire DBL family, I welcome you all to this conference call. The results and presentations have been uploaded to the stock exchanges, and I trust you've had a chance to review them.

To provide a brief overview of the industry, we've observed some positive developments in terms of order activity. It is still lacking the momentum that we expect, but then usually first half is always lighter, and the second half is when the momentum really picks up.

In the road sector, NHAI has awarded 300 km of orders up to date this year, which is just 5% of the overall target of around 6,000 km that they want to do. In the past few months, we're witnessing good progress in the balance 124 projects of over 6,000 km, which is valued around 3.5 lakh crores.

Based on these, we are hopeful to achieve significant traction in quarter four of this fiscal year. What is also very heartening is that the government has increased the qualification criteria, which has led to reduced competitive intensity.

This increased competitive intensity was what had caused significant damage to the industry, and I think the government has finally woken up to that because progress and quality has both suffered. In the water distribution sector, particularly with the government's flagship Jal Jeevan Mission, the government has extended the execution timelines to 2028 in the last budget.

Similarly, in the metro rail sector, there are plenty of new projects in the planning and approval stage. The aim is to improve last-mile connectivity, support urban growth, and offer cleaner, faster, and more inclusive public transport across emerging and established cities.

Some of these upcoming projects are Pune Metro Rail Phase 2, Delhi Metro extensions, Ahmedabad Metro, Bangalore Metro, water. These are different, different projects across different cities.

From our perspective, we have the highest level of PQs in all these growth segments, a strong balance sheet, our own equipment fleet, and a proven track execution record. We will continue to work in all these areas and the areas that we have expanded into already.

Now focusing on DBL performance in the last quarter, I'm happy to report that out of our total guidance of order inflows of ₹15,000 crores, we have successfully managed to secure orders of around ₹5,500 crores in the year to date. This has been despite the challenging environment where NHAI ordering has been weak till date.

However, we're very optimistic to achieve the total order inflow of ₹15,000 crores on a full-year basis, which will set a good pace for next year revenue growth. As a business development strategy, we continue to remain committed to our long-term strategy of profitable growth, which obviously has resulted in lower order book in the past 2 years, where multiple headwinds were prevalent such as lower ordering activity and intense competition.

However, we are optimistic about the market scenario in the long term, and we had utilized this slow period as an opportunity for strategic refinement, where we reduced fixed cost, optimizing resources, and cutting capex. From a peak of 38,000 employees when COVID hit to now about 18,000 employees, DBL has made significant cuts in its own employee fixed cost.

However, revenues have continued to be in the same range. Similarly, we have also reduced and almost brought to nil our capex, which was earlier ₹500 crores range every year, to now ₹50 to ₹100 crores, and that too only going in smaller and replacement capex.

In our HAM project portfolio, I'm also delighted to inform you of our own InvIT in partnership with Alpha Alternative Fund, named Anantam Highways, got listed on the NSE in October 2025. From DBL perspective, it's a landmark achievement and a long-term dream, as this platform will provide a monetization source, literally on a tap basis for all the projects that we do, and will also provide our investors with comfortable way forward on how our assets will move from DBL to another buyer.

As of now, seven assets of the total of 18 assets have been transferred to the InvIT. The balance assets will be transferred in the next 2 years based on execution timelines.

In all the balance projects, the execution is progressing as per the contractual schedule. Now on our coal MDO operations, I'm happy to report that we're progressing ahead of schedule.

In our Siarmal MDO, we've achieved a sales volume of around 10 million metric tons in first half of FY26. We are on target to meet our full-year target of 25 million metric tons for the full year of FY26.

Similarly, our Pachhwara MDO has achieved 3.6 million metric tons in H1 FY26, positioning us well to reach our full-year target of 7 million metric tons for FY26. In total, we'll achieve a production of 32 million metric tons of coal in FY26, putting us in the league of one of the top producers of coal in the country.

This trend will keep on increasing in the next few years, as will the profit. We're expecting to do 57 million metric tons of coal by 2029, which will be in both these two mines, which will total to almost 8% to 9% of the total coal output of the country.

Along with this, we're also looking at other projects, and whatever we are able to secure, we will keep our partners and investors updated. Now towards our vision for DBL 2.0, we are still committed to becoming debt-free at a stand-alone level.

Now although it has been delayed, now let me talk about why that has happened. It has primarily happened due to the steep reduction in order inflows in the past 2 years, which in turn has led to reduced revenues and reduced free cash flows for the company.

Now as you are all aware that DBL prided itself on its in-house fleet and people, our current capacity gives us the capability to execute ₹10,000 crores plus of revenue easily, which is our optimum scale of operations. That is what we have done in the past as well.

However, in the past 2 years, with the multiple headwinds that I spoke about, we have been suffering from a lower order book, because of which we have not been able to achieve our revenue optimum number. Now these external factors have obviously impacted our cash flows, which has led us to not being fully able to deliver on our debt reduction commitments.

We had originally promised that this year we will reduce ₹500 crores of debt. However, in the current scenario, it has increased a little bit.

By the end of this year, we will come to the same number as last year, which is around ₹1,500 crores of debt. This is happening because even our revenue guidance, which we had given for earlier of ₹8,500 crores for this year, is getting reduced further as the pace of projects that we expected has not come in in terms of new orders.

We're expecting now our full-year revenue guidance to be only around ₹8,000 crores. Obviously, that will result in reduced EBITDA and reduced cash flows, which leads us unable to fulfill our debt reduction commitments.

However, the new orders of this year, which will be around ₹15,000 crores, like I mentioned, will end up leaving our next year revenue for around ₹10,000 crores. Now at that number, when we get that, we're sure that we will reduce our debt by another ₹500 crores, which will be around ₹1,000 crores in FY27 once we complete that.

In total, the good news is that the worst is over. We have a good order book pipeline.

There will be a significant jump in next year's revenue, as this year revenue is coming down. We will be able to generate good free cash, which will help us in reducing the debt.

Our commitment remains on track, even if slightly delayed, because as a policy, the management has decided that we will remove all stand-alone debt, and that is the way forward for us. On our two long-term revenue generating business, the coal MDO and the HAM portfolio, we are progressing very robustly.

We will see good cash flows coming from both the HAM, InvIT, and coal. These are predictable cash flows, a more balanced risk profile, and in turn help us improve our return ratios.

Now also in the EPC business, with the uptick in order inflow, this growth engine will also start firing and support in the overall growth journey of DBL. Now as I mentioned before, evaluating DBL from a consolidated perspective is essential to fully appreciate our various business verticals, our nuances, strengths, performances, and potential.

The last bit that I would like to inform all our participants and investors here that we've also continued our diversification journey and entered into another new area, which is solar energy. Renewable is also going to be one key area for the company going forward.

We won a 100 MW project already, and we are hopeful to secure another 1 GW of solar in the two coming year or so. Now with that, I'd like to hand over the call to our CFO, who will provide a detailed overview of the financials.

Thank you, Rohan-ji. Good morning, everyone.

I welcome all our stakeholders to our earning call. Let me present the results for the quarter and half year ended September 30th, 2025.

During FY26 YTD, the company completed three HAM projects aggregating to ₹2,500 crore, and company secured six projects aggregating to ₹5,665 crore. Now let me move to business financial performance.

First, on standalone performance. The revenue in second quarter remained at ₹1,417 crore, and on first-year first half, it is ₹3,427 crore.

As far as EBITDA is concerned, in quarter two, the EBITDA margin increased by 60 basis points to 10.80%, and in absolute terms, ₹153 crore. On half-yearly basis, the EBITDA margin is 10.40%.

EBITDA in absolute terms on first half is ₹356 crore. At the PAT level, first 3 months, the PAT profit after tax remained at ₹41 crore, and first-half basis, it is ₹164 crore.

Now from standalone to console, the revenue remained at ₹1,926 crore, and first-half basis, it is ₹4,546 crore. EBITDA margin for first quarter second quarter it is 24.5%, which is ₹471 crore absolutely.

On first half first half, the EBITDA margin is around 22% for the console, and in absolute terms, it is ₹991 crore. Profit after tax profit after tax for quarter two ₹214 crore, and for first half, it is ₹485 crore.

Debt net debt has increased by around 5 ₹500 odd crores. This is mainly due to the faster payment to the creditors.

The company creditors reduced by for a ₹450 crore. This is the only reason the increase in debt from March to September.

With this, I now open the floor for questions and answers.

Hi, sir. Thank you.

Sir, couple of questions. You have already highlighted that now we are looking at ₹8,000 crore revenue this year and next year ₹10,000 odd crore revenue.

Just to understand the current ₹18,600 odd crore kind of order book is there, how much value of projects where the AD is pending or the work has not started? When can we expect whatever the balance AD is there?

Shravan, sir, the AD is pending for all the new projects that we've just won, which we are expecting the AD to come by Q4 max.

By Q4. Got it.

On the order inflow, another ₹10,000 odd crore, kind of ₹9,500, ₹10,000 crore, so that primarily we are looking at from the HAM perspective in the road space? There also, if you can, because that's the one pain point for the entire industry, just wanted Devendra, sir's view, do we think that the NHAI can award and how much in terms of kilometer or value and of that also, if possible?

Where do you see in terms of the HAM would be and maybe toll projects?

Shravan-ji, even if you look at our current orders that we've won this year, they're all from very diversified sectors, from an industrial corridor, to roads, to irrigation, to metro, to solar. We're doing across the things.

The same trend will continue even going forward. We will have all the different sectors giving us different, different orders.

The new one that I mentioned is solar. We're expecting good orders to come from there as well.

If you want to know what is NHAI and MoRTH pipeline, is that what you are keen on knowing right now?

No, pipeline is there, but in terms of how do we see the kind of a confidence that how much you think that awarding is likely from the NHAI perspective, and that too, how much would be the kilometer and the value, and in terms of HAM and toll?

Sir, if I talk about total bids, about 1,60,000 right now only, which is there, which is both HAM, EPC, and BOT project, everything. That much is already there.

Now we are very confident of doing good here, but our agenda is to get profitable projects. We will not be going and winning something at a stupid rate.

The good part is, because of the government's new qualifying criteria, competitive intensity has reduced, and we're expecting to win good orders here also. If all goes well, we might exceed that ₹15,000 crores of order inflow guidance that we have for ourselves.

Even if not, we are very confident that there is enough of projects available across all these sectors that we're working in for us to achieve that ₹15,000 crore. There are some more projects that we expect to materialize over the next few days.

I think that will also give us a good idea of the pipeline that is being built by DBL.

Till now, how many value of projects we have already bidded, and where bid is yet to open?

About ₹15,000 crores we have bid for right now.

Got it. Got it.

On a EBITDA margin front, 11 odd percent that will be there for even second half and for next year also?

Next year Next year, this year that will be around 10 and, ha, 10 to 11 max because of the reduced sort of revenue, sir. As I mentioned earlier also, our fixed cost and all that, if we are unable to do the revenue that we expect, it obviously eats into our margins.

Even if we have reduced our cost drastically over the last 3, 4 years when I mentioned reduction, almost 20,000 people have been reduced out of 38,000. More than half have been reduced.

Equipment, we have not you've seen the capex has reduced significantly. The gross block has continued to remain in that range while the net block has been coming down.

Our focus very much is only on making sure that our return ratios improve, that we do not increase in debt, and that we keep reducing it, and that we are able to execute the mode that we can efficiently through our people.

Got it. Sir, in the solar, when we say that we want to have a 1 GW of award in next 2 years, just wanted to understand, this will also be a BESS also, battery storage will also be there.

There, obviously, we need to put in the equity. In that sense, how much are we in terms of looking at in terms of the equity investment there, whatever the projects 1 GW that we are planning to win?

Next 4, 5 years, that will translate to how much kind of an equity that we'll need to invest? There do we see that in terms of the IRR level, can we see a 13%, 14% kind of a equity IRR, or that also depends on the kind of a market is so dynamic on the battery pricing front?

Once you get the project and once you go for actual there, is there a scope of further in terms of the pricing going down on the battery front?

Sir, very interesting that you've asked very detailed question around it. Our agenda for the solar, and let me give you idea why DBL is looking at that sector.

We mentioned that our stated goal is to build more consistent, long-term cash flows. While we do that, DBL is known for its execution capability.

Solar projects are much less complex and sooner execution timelines as well than any of the other large infrastructure projects that we take on. The good part is now that once we build these projects, we have a way to monetize it through an InvIT platform.

There is one InvIT platform which is already there. If this on its own becomes a large enough thing, who knows, we might come up with another InvIT platform very specifically targeting energy sector.

Now you asked about equity. Equity, we already have partners who are committed to investing in this along with us, as their interest also lies in creating platforms.

Just like the road platform that we've created, we would want to create more platforms where, because these are all 25, 30-year projects, long-term investors can come in and participate in the growth journey of the country. The energy needs are only going up, and with the advent of AI, data centers, electric vehicles, the energy needs will continue to go up, which is why we want to be participative in this whole process, and which is why we are looking at renewable space.

That's the broad idea for why DBL is doing this. Equity, like I mentioned, commitments are already there.

In terms of IRR, we target broadly mid-teen IRR returns from here. Now obviously, once we flip an asset into an InvIT, there are two, three areas where we look at.

Number one, the EPC margins that we make, that is also IRR for us. Then the equity that we've committed, what is the IRR that we get on it straight up what we make.

Then secondary, when we flip it into an InvIT or when we sell it, what is the IRR that we make. That is where we'll do.

Our focus, like I mentioned, is on cash flows, and we will continue to remain focused on our return on capital employed on every project. Even if you look at our strategy in the coal MDO and the InvIT strategy, we have demonstrated that the amount of money that we'd invested in the road assets, even if you look at it currently in the Anantam InvIT, we have about 12 ₹1,300 crores of InvIT units there...

₹1,400.

...valued at ₹1,400 crores or so. If you look at the total sort of value enhancement that has happened from the equity invested in those seven projects, I think the total equity invested was about 800 ₹950 crores...

₹950 crore, and we realized ₹1,050 crore in cash.

Earlier we've already done that, and then there is this additional. I think ₹950 crores of investment has passed it to 2,200, ₹2,400...

₹2,700 crore in all, one asset remaining.

About ₹2,500 crores of sort of value addition for DBL. That is the idea that we want to create value creator.

What this will also do is, if you look at our consolidated balance sheet, our idea is more than three-fourth of our profitability should continue to come from long-term sources. While EPC will continue to fire, but year after year, our profitability, even if not in terms of revenue, but in terms of profitability and the amount of free cash that DBL is generating, 75% plus will come from long-term assets.

That is the goal for us as a company, that because we are in a cyclical industry, whether the cycle is up or down or whatever is happening, we want to continue remaining as however risk we can reduce, that is the goal.

Thanks for detailed answer. Just one clarification on the net debt.

As per the presentation, is ₹2,102, but if I look at the gross debt minus the cash, that number is significantly lower, around ₹325 odd crore difference is there. Can you help us in terms of where the cash is?

As reported, the cash shows around 67, ₹68 odd crore. Where is the balance to ₹32, ₹40 odd crore cash?

Is there on standalone I'm talking about?

Shravan-ji, the net debt is ₹2,102 crore, which is given in the presentation. Just a second.

Yeah.

Basically, my cash credit is ₹2,362 crore, term loan ₹131 crore, and I have cash equivalent ₹392 crores.

That's what I wanted to know. The cash in reported balance sheet, ₹67 crore cash and bank balances is there, 67, ₹68 odd crore.

Where is the rest cash lies? That's the only I wanted to understand.

Basically, the FDs, which is more than 12 months, this goes into investment, the other investments.

That is a non-current investment, you are saying?

Yes, non-current investment.

I have more questions. We'll come back in queue.

Thank you.

Thank you.

Yeah. Thank you for the opportunity.

Good morning, sir. Sir, just wanted to check it out on the recent listing of Anantam Highways.

What is the unit currently we have at the current juncture, and what is the value of that unit based on the current valuation?

Let me tell you, the DBL directly holds around 958 9.58 crore units. We have another units 3.60 units we have placed with Alpha Alternative Fund.

In total, company is having 1,300 1,332 crore worth units. Basically, these are at the ₹100 issue price.

The total valuation against this is around ₹1,400 crore.

Okay. If you can also give the sense, once all this 11 projects will be transferred to this in the InvIT, what will be the

Basically balance, because out of eight assets, we transferred seven, and we got around ₹1,400 crore units. Now with balance 11, we will be close to 3,400, ₹3,500 crore overall units.

Okay. Secondly, sir, just wanted to get the sense about the debt part.

I do understand in terms of the slowdown in the order inflow and everything. If you can also give the sense, last year there were some stuck payment from the JJM.

Where we are at the current juncture on that projects, whether these are getting completed and payment has been released, and what are the current outstanding? Would that be enough to compensate and probably look into the debt reduction if this materialize, and probably at the year-end again we would be at the ₹1,000 odd crore, or how should we look into?

If you can share your perspective on that part.

In terms of the debt increase from March to September, the debt increased by ₹526 crore. If you can see my current assets and current liability items, my inventory remained almost same, by ₹30 crore it is lesser, but I would say it is same.

Then basically receivable invested around ₹512 crore. Receivable plus other current assets item, including GST and other.

You can see I have basically reduced the creditors faster because though our revenue remained at low level, but my creditors were basically paid through LCs. Basically, those LCs payment made on due dates.

Basically, the ₹591 crore worth creditors reduced during. We expect because of these two items, the debt got increased by ₹526 crore.

Okay. What about the receivable from the JJM scheme?

If you can

No, JJM, it is only one month. Only one month the receivables are coming on time.

Okay. Progress on the existing project has been as per the schedule or

It is as per the schedule.

Great. Thank you and wish you all the best.

Thank you.

Hi. Just wanted to check from our debt perspective and also from our growth guidance that you just gave, Rohan.

Should we assume that this will be a peak debt and from here on, the growth requirements of 85 ₹8,000 to ₹8,500 to ₹10,000 next year, and from thereon and for all the new HAM projects, this will be a peak debt and there will be a significant reduction and we are on a self-funding mechanism. From a capital requirement perspective, how do you see that?

Amit-ji, you're very right. This is the peak debt level.

If you see in the last few years, we've only kept on reducing. If the external environment had been supportive, if we had not seen reduction in our top lines in the last 2 years, we would have obviously made strides and been able to make even a larger sort of reduction in our debt.

Now if I look at the other things you mentioned, yes, we are at almost a self-funding level for different assets. We also have large assets in terms of the InvIT units that we hold.

If I look at that, that is something now almost as cash which the company can always use even if we ever need to raise any capital for further new projects. We have a lot of additional currency that the company has, and that's basically the way going forward.

We, on a standalone level, our revenues, while will increase next year, we continue to want to have them at a level where we don't have to take more debt at a standalone level, but we can grow it profitably. That is the goal for us.

On the consolidated basis, the cash flows will keep on growing year after year, just because the cash flows from coal MDO operations will keep on increasing, not just the scale and size of those operations are increasing every year, but also the rates keep on increasing every year because of inflation. That will keep on increasing.

Then we will have the cash flows from InvIT that will keep on increasing. As this new solar sector comes online, that will also start firing a long-term cash too from this.

Even in terms of what you asked me earlier, is this the peak number? This is the peak number, and this is already ₹200 crore less from the last peak number of June 2024.

September, sorry, September 2024. This is already ₹200 crore less than that time.

This number should not go up here. It will only keep on reducing.

Now with a very good sort of visibility in our order book and next year's revenue, while this year's revenue is again not how we anticipated the year to start. We anticipated more projects will come earlier.

That is what the external environment is, and we can't control that. Next year now gives us a good runway for growth.

Sure. Thank you.

Thank you for the follow-up opportunity. Sir, just wanted to check it out since you mentioned about the debt reduction and this creditors' letter of acceptance has been reduced, how should we see the finance cost?

Broadly, it will remain the same, because again, the interest-bearing trade bills would also get reduced.

My my interest cost shown in P&L, it includes everything: commission of LCs, BGs, LC discounting cost, interest on working capital, and interest of term loan. The interest, if you can see my quarter-on-quarter and first half versus first half, it is reduced because of even even after increased utilization.

There is a reduction in borrowing cost as well. All the cost related to LCs, BGs, it is already plugged in.

For next year, we can target for this full year, we can target around ₹450 crore interest and finance cost, and next year, we can target around ₹350 crore.

Got it. Secondly, sir, if you can also give broader sense in terms of the bid pipeline, one on the NHAI front and also there has been some delay in awarding, how should we look into it?

Secondly, extra road project, which are the key project which we are looking out, and what is the bid pipeline there?

Deepak-ji, bid pipeline agar aap road ki dekhenge toh lagbhag 1.5 lakh crore ki MoRTH aur NHAI ki bid pipeline abhi available hai, jo almost last year se same maintain ho rahi hai. Par due to the land clearance aur ye aage badhti ja rahi thi, aur abhi finally in logo ne qualification criteria ko bhi improve kiya hai, toh we are expecting Q3 and finally Q4 mein kaafi bid activity road projects mein dikhne wali hai.

Iske alawa lagbhag 25,000 crore ke aise bid hain jo other sector mein, jisme hum log diversified hain. Jisme dams hain, irrigation hai, Jal Jeevan Mission hai, coal hai, in sab ka bid bhi hum logo ne select kiya hua hai jo aane wale future mein hum log bid karne wale hain.

Okay. Thank you, sir.

Finally, on the long-term asset portfolio which we are targeting, if you can also give the sense in terms of 3, 4 year down the line on the broader basis, how should we look into it on the MDO part, still we would be looking out some more project to add in the portfolio? Then we have the separate annuity project here, and thirdly, we are looking onto the solar.

Putting in all perspective, if you can also give the broader sense, what is the kind of the annuity rental income which we are looking out from the next 3 to 4-year perspective? What we have the target?

You mean annuity from road, sir, or from other sectors? This annuity from road

Putting, yeah, putting all together from the entire portfolio, what is the aspiration we want to achieve?

₹400 crores of cash every year. That should be in that range.

So 380 to ₹400 crores of cash should come from the road sector alone. Solar, because it's still early days, right now we just have 100 MW.

As that scales up, the solar market rate's a well sort of socialized and industry's well aware. Whatever that happens, that will be again in the mid-teen kind of returns that we'll be looking at.

To give that number, I will work on detailed numbers with my team, and I will give that separately. Because it's very small right now, ha, but coal, now if I talk about the third part, coal cash flows, both Pachhwara and Siarmal put together, we expect at least about a

Next year, not next year, 3 saal baad.

Both Pachhwara and Siarmal put together at full capacity, about ₹1,000 crores of cash coming from there. That about ₹1,000 crores of cash from both of those, ₹400 around from our road annuity business, the current 18 assets, and then whatever gets added via the solar, as that portfolio also builds up.

Then

Irrigation project.

Ha, yeah, irrigation HAM is also one part that we won in Rajasthan. That will also come as a long-term cash flow.

That is also for 10 years. That cash flow will also come in.

Besides that, the EPC business, like I mentioned, will be firing on its own and doing its typical EPC margins. That idea which I explained earlier also that 75% or so of our profit at least will be coming from long-term fixed assets.

Okay.

Even if you look at it today, against our total debt, when people just look at the company, we have our net block which is there. Then we have the InvIT assets, about 13, ₹1,400 crores, that is there.

Then there is more equity at the coal sort of SPVs also. There is another 350 plus crores of cash at the coal SPVs as well.

Net-net, there is far more assets available even which can be immediately monetized by the company if we were to be a net-zero company today. We could immediately monetize a whole bunch of assets.

Our idea is to build these portfolios because the cash flows coming in the years to come is looking strong, and we are optimistic.

Okay. Sir, finally on the solar front, I think the recent which 100 MW we bagged, what is our equity stake in this project?

Basically, the total equity requirement is ₹70 crore. Out of ₹70 crore, because it is a captive by MP Jal Jeevan Mission, they will be putting ₹31.2 crore equity.

DBL's equity in this project is only ₹39 crore.

Okay. This entire EPC

Means against the ₹31 crore, JJM will have 26% equity.

Okay. This entire EPC work would be done by us only.

This would also build up the qualification for the EPC as well?

Yes.

In EPC as well, DBL will be doing EPC work.

Okay. Would we also be looking out some of the standalone bids on the EPC front going ahead once these qualifications are built up?

Yes, we are targeting continuously.

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

Thank you.

Hello, am I audible?

Hi. Thanks for the opportunity.

Sir, mujhe jaanna tha, last quarter we had guided about ₹3,850 crores of debt reduction on a consolidated level for FY26. Wanted to know where we stand on that and the timelines as to how soon can we transfer that debt into the InvIT?

Console level, the major debt reduction was from the transfer of HAM assets to the InvIT. We were targeting that time the eight asset transfer to the InvIT, but one asset NHAI NOC doesn't received, we transferred only seven asset.

That has happened in second week of October. In quarter three, ₹2,961 crore precisely will be reduced.

If I compare on 30th September, the debt has increased to ₹9,097 crore, but in quarter two, it is already reduced, means transferred ₹3,000 crore debt. It will reflect in 31st December balance sheet.

Okay. By the end of the year, what numbers should we arrive at finally on a consolidated level?

At the end of this financial year-end, we are not basically targeting very significant reduction. There will be increase only because we will draw the debt in the under-construction assets.

The second set of transfer asset to InvIT will happen in Q1 and Q3, Q4. Reduction of all other debt, the remaining debt will be done in FY27.

It will be range-bound in the range of 6,000 to ₹7,000 crores. That is where it will be.

It's about, I think, somewhere in that range, 6 to something, that will be the range.

There. Yes.

Okay. Should we expect that, say, by Q1?

Q1, we are targeting four asset transfer. Around, say, ₹1,500 crore debt will be reduced by Q1 FY27, and balance around ₹3,000 plus crore debt will be reduced by March '27.

All right. Thank you.

Thank you, Devendra-ji, and thank you, team. I just had a question.

Coal, we've done a good job. First question is first half, obviously, there is a rains, the volume in Siarmal is less.

Do you still feel that we will hit the 25 million this year?

Sanjay-ji, 100% 25 million ton hona hi hona hai is saal mein. Initially kuch hiccups hote hain rail dispatch ke karan.

To accordingly, we have to reduce the some coal production due to the less dispatch from the rakes. Abhi wo matter close ho gaya hai aur abhi bache hue H2 mein hamara jo 25 million ton ka target tha, wo 100% Siarmal mein poora hoga aur 7 million ton in the Pachhwara.

It will be 100% fulfilled.

Superb. Aur Devendra-ji, aur aise projects possible hain ya toh coal mein ya toh other mein because this is clearly where you have done very well.

Are we bidding for such projects in MDO?

Sanjay-ji, abhi hum log lagataar project dekhte hain jo company ki strategy hoti hai ki jo hamare ko suit karte hain profitability ke hisaab se, hum log wo project hamesha bid bhi karte hain chahe wo coal MDO ho, even we are bidding some other mining project like hum logo ne past mein koi bauxite project bhi bid kiya tha, wo bhi MDO format mein hi tha. Lekin abhi agar aap dekhoge toh Siarmal ka jo safar hai agar main 5, 6 million ka koi project leta hoon, uski jagah mujhe abhi Siarmal mein 25 million se 50 million pahunchna hai in another 3 years.

There will be a lot of potential in the Siarmal now from 25 to 50 million. Toh we are targeting ki hum logo ka jo abhi tak pace raha hai, ahead of the schedule hum logo ne kiya hai, agle 2 year mein instead of any lower profitability project, we are targeting ki hum isko 50 million tak ache successful tareeqe se leke jaayein.

7 million already hamare paas 55 year ke liye hai. Ek baar agar hum 50 million pe pahunch jaate hain, toh jo Sanjay-ji ne abhi bataya ki 3 saal baad lagbhag hamara ₹1,000 crore ka free cash only from coal business se hamara per year aana hai.

Toh already we are very open to bid some good mining project. Wo hum log search karte rehte hain, par hamara pehla jo hamara endeavor hai ki hamara coal mining jo Siarmal project hai, wo 50 million tak successfully pahunchana agle 2 saal, 2 year mein.

Great. Aur wo jo because we had visited the site and it was a phenomenal thing, toh jo railway ka jo linkage, I think that belt that we need to put, usse bhi our realizations will go up, right?

Today, we are getting part.

Abhi ka jo order book aap dekhenge, toh usme teesra jo ₹200 crore ka ek project hai, wo railway Barpali loop ka hi project hai. Usko bhi humne apne control mein le liya hai ki finally jab 50 million Barpali loop se jaayega aur us samay hamari jo coal mining fee 78% se 100% ho jaayegi, toh wo bhi project hum logo ne hi ultimately hamare haath mein le liya hai jiske karan kisi aur project ke karan delay ka impact hamare upar na aaye.

Aur ye kab hoga, sir? Devendra-ji, kab ye hoga?

Ye already start ho chuka hai, Sanjay-ji. Already start ho chuka hai.

Oh, toh this 78 ka 100 the conversion from 78 to 100 should take what? Should be in 1 year, ke from now on we are getting 100%?

Main aapko batata hoon. Agle 2 year mein hum logo ko next year our target is the 30 million, 30 to 35 million.

Uska next year 42 million, that is our peak rated capacity. That is the COD of the project.

Uska agla financial year jab hume Barpali loop ready ho jaayega, hamara CHP ready ho jaayega, that will be FY29. Wo hamara final 78% will become the 100% mining fee.

Got it, got it, got it. That's how we are taking this big leap from ₹350 crores to ₹1,000 crores cash flow.

Yes, yes, absolutely. Absolutely.

No, no, great. Aur sir, just structurally, this three companies because isme kaafi value hai.

InvIT toh clearly jo ₹3,500 crore total value aapko aayega. Toh at a point, you think you consider this as a separate company, ke it's too early right now?

Abhi Sanjay-ji, thoda ye early hai. Jaisa aage strategy banega jo company ke liye best hoga, jo hamare investors ke liye best hoga, hum waisa aage sochenge aur sabke saath discuss karke waisa implementation karenge.

Abhi our focus is only to achieve the 50 million ton and to get the 100% mining fee jo hamare liye ₹1,000 crore ka free cash more or less create karta hai.

Perfect. Perfect.

Perfect. No, no, thank you very much.

Best of luck.

Thank you.

Thank you so much.

Sir, couple of things. Abhi standalone pe we will be net debt free by FY28?

Yes, sir. Yes, sir.

Okay. Sir, ye other income for Q2 ka if you can give us a breakup in terms of the Srei se apne ko kitna aaya hai?

Going forward, though the presentation is have in the second half that we are looking at ₹13 odd crore from the Srei. Just to get a sense this number jo ₹400 crore ka jo hum bol rahe hain jo Alpha se InvIT se aayega, that is after all the 18 assets will be shifted, that will be by FY27 end mein ho jaayenge and then we will be looking at ₹420 odd crore jo presentation mein diya hai, that number we are looking at annually we should be getting.

Toh ha, jab sab asset shift ho jaayenge, tab utna aa jaayega jo aap number dekh rahe ho. When all 18 assets are fully transferred, ab wo total utna us par aayega.

Baaki aapne jo other income poocha, toh Sanjay-ji bataenge.

Basically, total other income for the period and you asked about the quarter two, right?

Yes, yes. Yes, sir.

Quarter two, we have received a total ₹1 crore from unwinding of security deposit, profit on sale of fixed asset ₹11 crore, dividend on investment in units around half a crore, and other miscellaneous income from Siarmal and other lease income 18 ₹18.5 crore.

Sir, nahi, ye total nahi hua because standalone mein 37, ₹38 crore ka other income hai. Srei se other matlab Srei se kitna aaya hai?

Matlab whatever dividend, interest aur ye sab mila ke Srei unit se kitna aaya hai ye quarter mein?

Just a second. Basically, Shravan-ji, the Shrem InvIT units around three ₹3 plus per unit was distributed.

We hold only 2 crore units. Total overall, we received around ₹6 crore.

Out of ₹6 crore, interest and dividend is around ₹1 crore.

Got it. Sir, ye abhi apna next year when we will be having a ₹10,000 crore at a standalone revenue when we are looking at, jo working capital as you highlighted ke payables have obviously has reduced, but inventories is still at that decent level.

There how we will look whether this will remain at this level or will it reduce or increase?

Shravan-ji, this working capital in last one half first half, it increased investment. We expect by this year-end, the working capital investment will reduce.

There will be release of funds from the working capital.

Okay. Broader days ke angle se if we look at, it should be because in this quarter, it is around 114 odd days.

Broadly, it should remain here, or it will come back to the matlab, for I'm talking about debtors and inventory?

We will come closer to 90 days.

Back to the earlier.

Siarmal ka jo apna the conveyor belt and coal handling plant wala jo cheez hai, uska capex total kitna hai aur abhi humne 26 mein second half mein kitna karenge, 27, 28 mein kitna hoyega rough idea?

Shravan-ji, the total capex on CHP is around ₹870 crore including GST. The planning and designing is already done.

No significant capex is invested. The facilities from SBI, Union Bank, and Power Finance Corporation is sanctioned in '22, and it is available.

We have already invested ₹236 crore, the equity requirement. There is no further equity requirement for next 15 months.

We can draw almost 50% debt, ₹600 crore. We don't see any equity investment in the next 1 1.5 years.

We are eligible to take debt. This CHP will complete between 18 to 24 months from now.

Okay, 18 to 24 months. There broadly in terms of the depreciation if we look at, I understand maybe slightly difficult, but just trying to understand, roughly it would be kind of a 13%, 14% kind of a depreciation rate that we have because it is on a full-year basis because it is a scaling up.

Difficult to take a generalized number, so that's what I'm trying to understand. Broadly 13%, 14% kind of a depreciation on the entire gross block of the MDO at the Siarmal, that's the

No, Shravan-ji, there are two parts. One is basically my HEMM, where the depreciation charge is close to 10%, 11%...

Okay.

I thank all our participants, all the investors for coming on the call and for asking all the questions. In case we have missed out on any of the answers or in case any of you were unable to ask any questions, please feel free to reach out to our team, and we'll be very happy to answer them on a personal basis.

Thank you, everyone, for your time. Have a great day.