Thank you, Shruti. On behalf of Nirmal Bang Institutional Equities, I would like to welcome you all to the 2Q FY26 earnings call of Power Mech Projects Limited.

The management today is represented by Mr. Rohit Sajja, Whole-time Director; Mr.

S.K. Ramaiah, Director, Business Development; and Mr.

N. Nani Aravind, Chief Financial Officer.

I will now hand over to the management for their opening remarks, after which we will open up the floor for Q&A. Thank you and over to you, sir.

Good morning everyone. I am Aravind, CFO of the company.

I have with me Mr. S.K.

Ramaiah, Director, Business Development, and Mr. Rohit Sajja, Director, Business Development and Operations.

I take this opportunity to welcome you all to our Quarter 2 FY26 earnings call. The company's performance for the second quarter of financial year 2025-26 remained in line with our set targets, reflecting consistent operational momentum.

For Quarter 2 financial year 2026, the company reported total income of ₹1,249 crore, representing 19% increase over the ₹1,046 crore in Q2 FY25. EBITDA stood at ₹158 crore, up 18% from ₹134 crore in the corresponding period last year, while profit after tax was ₹78 crore, registering a 12% growth compared to ₹70 crore in Quarter 2 FY25.

The EBITDA margin remained stable at 12.7% against 12.8% last year, marginally impacted by higher operating cost. The PAT margin declined from 6.7% to 6.3%, primarily on account of increased finance and depreciation costs.

For the half year FY26, the company delivered a strong performance during the first half of FY25-26, maintaining growth momentum across key parameters. For half year FY26, the company reported total income of ₹2,554 crore, reflecting a 24% increase over ₹2,062 crore in half year FY25.

EBITDA stood at ₹340 crore, up 33% from ₹257 crore in the corresponding period last year, while profit after tax was ₹159 crore, comparable to ₹131 crore in half year FY25. The EBITDA margin improved from 12.5% to 13.3%, supported by the exceptional revenue recognized from the riverbed mineral project in the previous quarter.

However, the PAT margin was marginally declined from 6.4% to 6.3%, primarily due to higher finance, depreciation, and tax costs. Revenue mix for the Quarter 2, the company's revenue mix was mechanical business, ₹435 crore, up by 90% from ₹229 crore in Quarter 2 FY25, driven by strong traction in industrial power construction projects.

Civil segment, including railways and water distribution projects, ₹309 crore, down by 22% from ₹395 crore in Quarter 2 FY25, impacted by extended rains in key projects and delayed bill certifications in the water division. O&M, ₹440 crore, up by 12% from ₹391 crore, supported by new O&M orders received during the year.

Electrical business, ₹22 crore, up 138% from ₹9 crore of last year FY25, due to execution of railway civil and signaling telecommunication works during the year. Mining business, ₹31 crore, up by 164% from ₹12 crore of last year, supported by higher offtake arrangement from SAIL.

Other income of ₹11 crore, compared to ₹10 crore in Quarter 2 FY25, mainly on account of increase in the margin money deposits. The geographical mix for the quarter was 95% domestic, 5% international, while power sector contribution remained at 79%, with non-power sector accounting for the remaining 21%.

Revenue mix for 6 months, for the first half of FY26, the company's revenue mix was mechanical business, ₹658 crore, up by 99% from ₹331 crore in half year FY25, driven by strong traction in industrial power construction projects. Civil segments, including railway and water distribution, ₹890 crore, down by 5% from ₹937 crore half year FY25, impacted by extended rains across key sites and delayed bill certification in the water division.

O&M division, ₹837 crore, up 14% from ₹732 crore in half year FY25, supported by new order inflows during the period. Electrical business, ₹89 crore, up 427% from ₹17 crore in half year FY25, reflecting a strong execution in railway and civil works and signaling and telecommunication works.

Mining business, ₹57 crore, up 122% from ₹26 crore in half year FY25, supported by increased offtake arrangement with SAIL. Other income, ₹22 crore, compared to ₹19 crore in half year FY25, primarily due to higher margin money deposits with banks.

The financial parameters are concerned, the company's witnessed a marginal reduction in return on equity from 3.4% in FY25 to 3.37% in FY26, primarily due to higher finance and tax costs, which impacted PAT. Similarly, return on capital employed decreased slightly from 4.73% to 4.58%, driven by lower operating margins resulting from the seasonal factors such as extended rains.

With the anticipated normalization in collections with continued strong traction in industrial power construction and ramp-up of MDO revenue from the KBP mine starting Quarter 3, both ROE and ROCE are expected to improve in the coming quarters. The company's negative operating cash flow has improved, reducing from ₹166 crore negative in half year FY25 to ₹63 crore negative in half year FY26, primarily due to the realization of receivables during the period.

The company is actively engaging with the clients to expedite certification and clearance processes and is confident of realizing the outstanding dues in the coming months. This is expected to further improve the operating cash flow and reduce the reliance on the working capital limits.

Net current asset days, excluding cash and cash equivalents, increased from 128 days in FY25 to 151 days in FY26, primarily due to delays in certification of waterworks and realization of receivables. These delays have resulted higher current assets.

Company is actively pursuing certification and payment clearance with the client, and significant improvement in the net working capital days is expected post certification and realization of bills in the water division. Gross and net debt levels remained well controlled despite delays in certification of water bills and realization of receivables.

As on 30th September '25, the gross debt stood at ₹839 crore, and the net debt is around ₹360 crore. The average debt-equity ratio as on the same date was 0.37 times.

The company is focusing on expediting certification and recovery of bills in the water division, which is expected to further reduce the net debt and debt-equity ratio in the coming quarters. Order book status: during Quarter 2 FY26, the company secured new orders worth of ₹1,042 crore.

As of 30th September '25, the order backlog stood at approximately ₹15,776 crore, with executable order, excluding two MDO projects, at ₹14,226 crore. In Quarter 3 FY26 till date, the company has received new orders worth of ₹2,577 crore, taking the total order backlog of ₹56,353 crore, with executable order book, excluding two MDO projects, increasing to ₹16,804 crore.

The company continued to actively pursue tenders and is targeting to secure ₹10,000 crore in the new orders by March '26. During FY26, a significant increase in order inflow is anticipated, particularly from the power sector across segments, including O&M, mechanical, civil construction, and BOP EPC.

As of date, the company has already secured orders worth of ₹4,889 crore, achieving approximately 49% of the annual target. The company will continue to prioritize high-potential areas, including industrial plant operations and maintenance, railway and water infrastructure, and MDO projects, to drive substantial growth and strengthen market leadership.

All existing projects are progressing well and remain on track, except for the water division, which has experienced delays due to slower bill certification due to non-allocation of funds. For financial year '26, the company has set a revenue target of ₹6,500 crore, subject to the pace of traction in MDO business.

EBITDA margins are expected to remain consistent with the FY25 levels, and the company is confident of achieving approximately 25% year-on-year revenue growth. Margins are anticipated to remain stable, with potential upside depending on the contribution mix from O&M and mining segments.

The order book outlook for the current financial year remains robust, supporting the growth trajectory. Power Mech is well positioned to demonstrate execution and conversion of approximately 40% of its opening order book annually.

Additionally, the MDO business is ramping up steadily, and both O&M and MDO segments are expected to be key drivers of the growth in the coming years. With reference to our MDO business progress is concerned, KBP mining, mobilization of heavy equipment has been completed, and mining operations commenced on 15th of April '25.

Till October '25, the company has achieved around 6.15 lakh cubic meter of overburden removal, and the activity is continuing as planned. Coal production is expected to commence in November '25.

The mine approach roadworks are in progress, and the company is targeting minimum coal dispatch of 1 million tonnes during the year, with a plan to scale up of operations to 1.5 million tonnes. All land required for mining has been handed over to CCL.

The other second one at Kalyanpur-Tasra project, OB removal and coal dispatch operations have been ongoing since January '24, with approximately 8.7 lakh tonnes of coal produced and dispatched to the existing washeries as per the SAIL direction. The project received environmental clearance for the 3.5 million tonnes per annum washery in October '24.

Design consultants have been appointed for railway sidings and washery development, and the major washery equipment design and vendor finalization have been completed. Equipment mobilization is in progress, and civil construction works have commenced.

The washery construction is targeted for completion by September '26. The Phase 1 R&R colony spread over 4.5 acres has been completed and handing over of the colonies to project-affected families is in progress.

Approvals for Phase 2 covering 41.11 acres are 41.11 acres are currently under process. While SAIL's current coal offtake remains below the planned due to the limited external washery capacity, the company is actively engaging with stakeholders to resolve these constraints and ramp up the production in the coming months.

With this, now I request Mr. Ramaiah garu to update on the key business development initiatives and future outlook.

Thanks Aravind,

Rohit garu. Thanks

Aravind for all the numbers you have brought out. Now I think as Aravind has rightly said, the business is continuously driven on the bullish phase because of the government initiatives in process of new projects and many of the other initiatives have been taken.

Now private sector also is catching up. As a company it has got all-round spread in many segments: power, infra, and then railways, roads, and then export also, we are well positioned to catch up these opportunities.

There can be some variations based on quarter-to-quarter basis in terms of investments and the way the scheduling of the tenders have come. Particularly, our key areas of focus will be BHEL and then L&T, which are the EPC contractors which have taken bulk of the orders from the developers like NTPC and generating companies.

There is a substantial flow is expected on that in terms of the ordering in the next 6 months because the initial order pickup was a little bit slow because of the engineering phase which has involved. That is where we are expecting more opportunities.

Other key developers are the Adani Group, which we have substantial established our presence in many projects in about 6,000 MW and working in about ₹2,500 crore of ongoing jobs. They also have to do substantial balance ordering of the new projects and all because Adani's total intake of the new projects what they have taken is more than 22,000 MW, and NTPC has taken nearly 12,000 MW, more than 12,000 MW.

Together they contribute substantially after the total 46,000 46 47,000 MW of ordering which has been done last 18 months. Therefore, there is a substantial balance ordering in the main power plant sector itself which can open up the opportunity side which can be between ₹30,000 to ₹45,000 crore in segments of ETC, then civil, structural, and other miscellaneous projects.

There another key element of this capacity addition is that the annual capacity addition which has come down drastically is expected to go to 8,000 to 10,000 MW. Since O&M we have got a very strong presence and we got a substantial penetration in the market, it is expected about ₹1,200 to ₹1,500 crore of opportunities will be generated every year in the next 5 years based on these capacities being added.

Now this is one part of the power sector business which is about 47,000, 48,000 MW which has been ordered by the developers. There is an ongoing investment which is going to come up with the new developers, that is another 40,000 to 45,000 MW is there.

That is perhaps to be ordered in the next 2 years based on the development phase and all. Therefore, we expect a bullish phase in the power sector development both for our traditional business of construction, then the civil works, structural works, and other miscellaneous works, and then once it is commissioned, the O&M in at least 7 to 8 years is there.

That is one of the key things. Now the new business areas what we are focusing is particularly in the infrastructure side, railways, and then about ₹30,000 crore of ongoing opportunities we are tracking it, and that should take us reasonably well to the targeted program of achieving order booking of about ₹10,000 crore.

The other new investments which is expected is in the steel sector is opening in a big way, particularly SAIL is planning to invest more than ₹1 lakh crore, and IISCO, Burnpur has already started issuing the pre-tender inquiries and we are participating in that. That is mostly related to the installation jobs, service jobs, and civil structural work.

This is our domain strength. That is expected about ₹8,000 to ₹10,000 crore in the next 3 to 5 months.

That is a major area of investment for us. Then there are opportunities in the other sectors also.

Then, for example, NMDC, they have got a planned investment of ₹50,000 crore to enhance the capacity of the iron ore from 50 million tonnes to 100 million tonnes. We are in continuous discussion with NMDC.

NMDC has also started the tendering process. Three BOOT tenders have already notified: two in NMDC Kirandul, one in Donimalai.

That is one of the areas of interest because iron ore demand is going to be there and we would like to see how we can enter that business and with the expertise what we have developed in the MDO business and BOOT business. Therefore, these are the two significant developments which can be there in the next 6 months.

As they already said, the ongoing tenders of nearly ₹30,000, ₹35,000 crore that is on tracking and that should take us reasonably well for meeting about ₹10,000 crore of target. Export jobs also, on the O&M side and the maintenance side, certain initiatives have been taken place.

That is going to happen. O&M side also, we had some successes in this year also, and based on the commissioning program of the balance new plants and all, we are keeping a track on that and that to be continuously focused.

This is what I would like to say. Thanks.

Thanks to the team.

Just wanted to understand how much is your outstanding receivables from the JJM projects?

Sir, receivable is around ₹226 crore, sir.

₹226 crore. After that, last 1 year, there is no fund allocation to this project and work executed to the extent of ₹220 crore of work is under certification.

Total ₹446 crore is the total receivable and WIP together. Okay.

In your total books, how much is your unbilled revenues?

₹220 crore.

No, that's for JJM projects. Overall?

Overall is around ₹960 crore.

Okay. You were saying something?

₹960 crore. In that, if you remove this ₹220, roughly ₹700 is the regular operation business.

Okay. Just on one thing, your dependence on power sector, especially thermal power plants, is very substantial.

In the long term, post the 2030 scenario, are we looking at any kind of reduction in that from the environmental point of view? How would the company be looking at it?

It's a very long term, but still.

Correct also. After all, ultimately the CO2 emissions has to come down in the whole of scenario.

This is a short-term measure of 7 to 8 years because of to maintain that thing. We have discussed this matter many times over the grid stability and that's why government's plan is to add 80 to 80,000 MW to 1 lakh MW.

Ultimately what happens, these power plants also has to run another 25, 30 years minimum, and then somewhere in 47 to 50, perhaps, they will looking at a downward trend in the emissions and the decommissioning of the power plants. What will be there, there may be a up-trend in the business in the EPC segment and civil and structural in the next 5 to 7 years.

Afterwards, O&M also will be there. As a part of our O&M business will substantially go up, as I said, ₹1,200 to ₹1,500 crore is opportunity, and we have got a huge penetration in the market and ownership there.

That should continue to rise in a big way. Therefore, to some extent, that will definitely be made up.

What is going to be the other scenario is that the non-power sector, steel sector, infrastructure side, and then petroleum and oil and gas sector also, new plants are expected and there we can possibly look for diversification and with experience what we have gained it. Like Andhra Pradesh, they are planning to put a ₹60,000 crore capacity plant, and then Madhya Pradesh is coming up.

SAIL has told you about ₹1 lakh crore, ₹1 lakh crore of investment. ArcelorMittal is coming up.

JSW is coming with a huge investment in Maharashtra. Therefore, in all these areas, is already company has got some sort of a penetration and expertise and experience, and that will be enhanced into where these gaps will certainly happen and therefore we are confident to maintain our growth.

Thank you, sir. Thanks a lot.

Hi. Good afternoon, sir.

My first question is on the large BOP opportunity, especially from the likes of NTPC. There was the Gadarwara, there was I think one more, Nabinagar.

Then the third one which will come up, I think, for the bidding is the Telangana, right? See, I don't think we have participated in those large BOP opportunities, be it Gadarwara, be it Nabinagar.

I just want to understand, is it that we don't have pre-qualification for the large opportunities or do you think is it not wise for us to bid for the large projects? What is holding us back that we're not even participating in those large tenders?

Mohit sir. This is Rohit.

Thanks for the question. I think it's very relevant, especially considering the fact that we recently won a BOP order with BHEL for Singareni thermal power plant in Telangana.

By the time these tenders have been conceived, NTPC took a slightly different pre-qualification route in which we were only qualifying as a consortium partner along with other players who would bring in some kind of expertise. Then later on, one more evolution has happened and then this pre-qualification criteria had come up, and through this, we are qualifying.

Going forward, NTPC has also chosen a bulk tender route, right? I think our focus is mostly on unit capacities where there is a one unit of 800 MW being set up or two units of 660 MW that are being set up.

Going forward, you'll see us participate in a lot of these tenders.

That's the update on this. Understood.

Nabinagar is pending. Nabinagar should come up in next 1 year, we should be able to participate, right?

Correct? Is that fair understanding?

Because Gadarwara and Nabinagar is done, I think. We are not one of them, we are not going to participate.

They also have a large opportunity from some of the states, right, like some of the states where BHEL have won the [unclear]. Won the tender.

How is the BHEL pipeline looking like? We have seen a lot of [unclear] tenders from BHEL's side.

Are we only looking for a particular kind of packages or do we have the capability to do this CHP, AHP also?

See, we have developed the expertise not only in the traditional ETC business, O&M business in the power sector, we also developed the expertise to handle the one of the key packages in the balance of plant and the supporting packages on the coal handling also. That is we have done about four, five contracts, and we gained that experience.

That should help us. Basically, BHEL's outlook is that they will continue to drive the orders because L&T is there, unless the government takes a policy decision to import the equipment from outside.

I don't think that will happen. BHEL had the wherewithal capacity to do 16 to 18,000 16,000 MW per year a couple of years back.

Of course, we have seen the downward trend and all those things happened. Now it has picked up.

Looking at the long-term investment, at least 7 to 8 years, BHEL should be ramping up their capacities and they should be reasonably able to bid for all these things. They will be continue to be a key player because, as I said, the 47,000 MW what has been ordered by the developers, still some substantial ordering has to be done by the various vendors like Adani and even NTPC for the new tenders what they are going to call, and also all the various utility companies.

Utility companies have got a share of more than 12,000 MW. That also has to come up.

Of course, to some extent, they have started ordering. Then balance ordering of the, as I said, the 46,000 MW, new developments which are going to happen.

Therefore, this 46,000 MW will be a substantial chunk of the order which will come up in the next at least 2 to 3 years, which will be reasonably shared substantially by BHEL and to some extent by L&T also. Therefore, these will be having a long-term plan for at least executing 8 to 10,000 MW in the next 10 years.

Then, Mohit sir, just adding as sir had said, the recent BOP package that we won entails us to construct a coal handling plant, ash handling plant, which is an expertise that we have developed over years as a construction company. Now we are just adding engineering as an expertise.

We have partnered with Tata Consultancy Engineers, TCE, and also procurement is anyway a commercial activity, and hence our entry into this space. Also going forward, as I had said earlier, we want to participate in this state utility projects that are either planning on separating the BTG and BOP or are awarding the entire plant to an EPC player like BHEL, and then we don't mind subcontracting under BHEL or L&T to take up the BOP EPC works and BTG erection works.

Understood, sir. Thanks and all the best.

Thank you.

Thank you.

Yeah. Hi, sir.

Thanks for the opportunity. My first question is on the steel opportunity that you mentioned, right?

Just if you can explain what exactly are we doing there and how much is our opportunity in terms of if we consider a cost of steel plant, say, capex for 1 MTPA, how much will be our opportunity if you can quantify?

Because a long-term investment profile of the government is to invest about ₹10 lakh crore in the next 5 to 7 years. That is because the present steel capacity is 200 million tonnes, where in last year's production was 154 million tonnes.

That has to go up to 300 million tonnes of capacity addition by 2030, 2032. As we have seen, a 5 million tonne 4 to 5 million steel plant needs about ₹35,000 to ₹45,000 crore of investments.

All the players, for example, SAIL has got a clear plan they have established. First, I think it is IISCO, Burnpur, then they will have a plan for the Bokaro and then Rourkela expansions also.

Then ArcelorMittal is coming with a greenfield plant in Andhra Pradesh and some expansions will be there. JSW Mittal and JSW and then JSPL both are planning capacity additions.

Then there are some new players also coming up. For example, Rashmi Group is coming with a investment of about ₹10,000 crore, and there is a group available in this one Bellary-based mining groups also.

They are also planning investment of about ₹15,000 to ₹20,000 crore. Therefore, the total investment of more than ₹3 lakh crore will happen because of the continue to be growth of the large After all, steel is linked to the growth of the economy.

As the economy grows, steel requirement demand has to be there. In fact, many of the steel suppliers are also complaining that why we are importing also material from outside.

Therefore, we have already had a experience of doing steel plant construction in JSW Dolvi and then JSW Vijayanagar, and ongoing we are doing some jobs in JSPL. Our construction experience and our O&M experience and our project management experience what we have developed over the years in the power sector will be rightly used for the steel sector and also in the mining sector, for example, NMDC jobs on the mindset facilities which they are going to create.

Therefore, this is where we are quite bullish on these two areas.

Okay. Sir, on the MDO side, what is the production that we are expecting in FY26 and '27?

The

first mine, which we took with CCL, Central Coalfields Limited, we anticipate to do 1 to 1.2 million before March '26. Which is going to translate to ₹140 to ₹150 crore in top line.

The other mine, which we took with SAIL, the 4 million metric tonnes per annum one, we anticipate to do 360 to 400,000 tonnes before March. We are already on track.

We have done half of that already [unclear]. This is going to translate to ₹57 to ₹65 crore in terms of top

line. Sir.

Thank you so much.

FY27 ramp-up, in both the mines, there's going to be a significant ramp-up in FY27. FY27, KTMPL, the 4 million metric tonnes per annum with SAIL, we anticipate to reach peak rated capacity.

The first mine, in which we are going to do 1 million, will get ramped up to 2.5 to 3 million by FY27. Translating to a combined top line of ₹550 to ₹600 crore.

Sir, just observation, and I don't know how the company is looking at this. If you look at the last half, basically the first half now, and also the second half last year, if you see the financial deleverage is kicking in with the rising debt because of some of the receivables which have been stuck, working capital being expanded, and the investment which is done in the coal assets, which is not giving the still desired revenue.

If you see, your even coal business the forecast has been postponed by in excess of 1, 1 and 1/2 year easily. How are you viewing this equation?

You may have your 15%, 20% top-line growth, but nothing's flowing down to the bottom line. How should we be viewing as a management this situation?

Sir, then what you said What are the guardrails? What are the steps taken?

See,

the major increase in the working capital utilization is because of the Jal Jeevan Mission water receivables pending. If you look at the March, I have a receivable of around ₹287 crore and where as of September, it is ₹226

crore Sir, we know the figures. We know these figures.

What should be done? We know the figures, we know the opportunities, incremental new inflows.

We are pursuing with the client, government, sir. Recently we have met this Chief Minister of UP government, called for all the clients, and they assured us that they'll certify these bills in a couple of months.

They are releasing the funds from the state funds. We are hoping by March we'll bring all this into the control and we'll reduce our working capital utilization with that receivable, sir.

Any For

the washery, as of now, we have not raised any new loans and we have raised a QIP of ₹240 crore, that ₹200 crore funds still is with us, we are utilizing that for the current year. The next year only we'll raise the borrowings, sir.

By that time, we will also recover our existing receivables, and certifications will complete and we'll bring this to the normalcy. We were not active in water.

We ended up taking some of these projects at the fag end. Any review process that you implemented incrementally?

Okay. From the execution point of view, what kind of revenue execution that you will see ex of mining this year in FY26?

Around ex of mining, around ₹256 crore around ₹6,000 to ₹6,200 crore we can achieve from the regular business, sir. ₹250 crore we projected from the mining business.

How much was mining business last year?

Last year it was around 30 ₹84 crore, sir.

Around ₹84 crore.

Basically ₹5,100, ₹5,150 crore in ETC and moves to basically ₹6,200 crore. Yes.

Okay. Thank you, sir.

Hello. Thank you for the opportunity.

I wanted to ask you what is the split of the order book and order inflow of the various segments, like civil and mechanical, O&M, all of that? Hello?

One 1 minute. I'll explain.

Total ₹14,226 crore as of 30th September consists of 16 ₹1,700 roughly from the mechanical business, power erection business; ₹9,000 crore is from both power civil and infra civil; O&M of around ₹2,700; electrical business of around ₹800 crore. We have a domestic of around ₹14,000 crore and international order of around ₹220 crore.

From power side, mix is ₹8,300 crore is from power side, and infra side is around ₹5,900 crore.

Sir. For the order inflow?

For the order inflow, this year we are projecting ₹10,000 crore. We are projecting from erection business around ₹2,000 crore, from the civil business ₹2,400 crore, O&M around ₹2,600, electrical business of around ₹300.

Apart from, as a new initiative, we are starting the solar and other green energy projects we are targeting, we received around ₹159 crore orders during the year, and BOP EPC of around ₹2,555 crore. Around ₹10,000 crore, this is a mix of various segments.

These orders are expected, right?

In that, some of orders we achieved, ₹4,900 crore of orders we already received, and balance we are expecting before March.

Could you give the split of the ₹4,900 crore in these segments?

In that, we received mechanical business of around ₹49 crore, civil business of ₹1,500 crore, and O&M business of ₹761 crore up to September. Till date, we have received around ₹2,570 crore orders from the BOP EPC.

For the mechanical, new SBU addition of EPC, around ₹2,550 we added.

Okay. Thank you so much, sir.

What would be the execution timeline of these major projects that you just listed out?

Generally, it will be 2, 2 and 1/2 years. It's typical 2 to 3 years is the general typical.

For the EPC, it is 38 months, ma'am. It's roughly 3 and 1/2 years for the BOP EPC.

Okay. Thank you, sir.

Good morning, sir. Am I audible?

Yes, sir.

I have a conceptual question on the power sector. One, if a project cost is around ₹10 crore per megawatt in the thermal side, what is the scope for Power Mech to say with opportunity or orders from this particular ₹10 crore per megawatt?

You are correct. ₹10 ₹10 crore per megawatt can be including the IDC cost.

The EPC cost can be ₹8 to ₹8.5 crore, depending on the scope of responsibility. If it's a single unit, it can be more.

Two units or three units, it will be slightly less. Latest order BHEL has got is ₹8.3 crore for NTPC 1 to 60 MW.

Now as far the opportunity in this for the Power Mech is concerned, there are two sectors of the business: the main plant side. Main plant side, the total investment can be around 55% of this ₹8, ₹8.5 crore.

Normally the service portion of it, we can say it will be around something like ₹1,000 crore will be coming in the main plant for each unit, for each plant of two units. That is suppose 1,600 MW is there, about ₹1,000 crore can be the opportunity there.

That is the main plant. The balance of plant, entire thing opportunity is available, whether we want to bid on the service side of the business or on the balance of plant of the business, subject to the qualification.

Balance of plant will be anywhere between ₹3.5 to ₹4.5 crore. That is also, in some segments, if it is called individually, we can bid also for the coal handling and material handling, and then civil structures, then for the other miscellaneous civil works like IDCT, cooling towers, and various other jobs, structural jobs, etc.

Therefore, we can say including the civil works, structural works, civil, then service portion of the installation-wise, we can safely take as 35% to 40% is the opportunity available out of these. Correct?

So 30% of ₹8.5 crore?

Overall, that is the maximum.

Okay. So 30% of ₹8.5 crore.

This will be during the project construction, and O&M comes in the operational period, right?

O&M opportunity, that will come between ₹11 to ₹15 lakh per megawatt per year. Then one more thing is that where BOP is there as a complete package, as I already told you, that will be the complete opportunity on 40%, 45% of ₹8.2 crore as an opportunity for the BOP.

Right. Coming to the next question, you mentioned about 46,000 MW yet to be awarded in the coming years plus about 12,000 MW from state utilities.

I can roughly take 40% of this overall opportunity to be our long-term opportunity, right, during construction?

The total ordering which has been done in the last 1 and 1/2 years, which is under execution at various stages is roughly comes to about 40 47 and 1/2 thousand megawatts. What I said was this is, you can say, mostly ordered in the EPC mode on the main plant side.

In the case of Adani, they have taken a different route. They are ordering the main plant on the equipment suppliers, whereas the balance of plant and the services job, they are awarding themselves.

Therefore, that also, as an opportunity is available for a contractor like us. Apart from that

Sir, overall, to answer your question, in this capacity, 55% will be our opportunity.

Understood. Basically 46 plus 12, that is around 58 GW, 58 GW Into 8.5

to 9 into 60%.

Okay, 8.5 into 60%. Got it.

That comes to around ₹3 lakh crore. Okay.

Fine. Got it.

Fine. My second question is the ability to actually foresee this 46,000 MW and 12,000 MW upcoming thermal, is there assurance that this will happen in the light of, say, storage capacities ramping up or becoming more prevalent?

Do you foresee any delays or this not actually happening in the next 3 to 5 years?

Planning by the CEA and the Power Ministry. Even the customers also have been identified.

Like Adani, NTPCs have plans in expansion, Farakka, Meja, and then Obra, Lara, Tata Power has got plans, Vedanta has got plans, then for example, SJVN, Buxar has got a plan to add one more unit, SAIL, Coal India wants to enter the power sector also, and then JSW and JSPL both are planning it, NLC is also planning it. Therefore, all these people, either in a brownfield or a greenfield, they are going to put up this.

That is the capacity has been arrived at it. It's a question of in terms of timing and execution, it is normally a development process in terms of environmental clearance, land acquisition, investment, achieving the financial closure.

This we all have seen there are always certain things can be there in that which can take the project forward or some slowness is there. These capacities are a must to balance the grid capacity for under 7 to 8 years, it should be established.

Therefore, positively it's expected to come up.

Sir. My final question: since we identified the opportunity of ₹3 lakh crore for this 58 GW in, say, medium to long term, what would be roughly our market share or expectation to win over this 5 to 7-year period on this ₹3 lakh crore of opportunity?

No, you can take, as I said, on the upper side, if you take, it's about 30% on the service side, on the civil, structural, services side of installation. If it's a balance of plant, we can take about 35% to 40%, 45% easy.

You're talking about the market share, right?

Everything we get qualified there.

Yeah. That's the total addressable market again.

Out of this ₹2 lakh ₹3 lakh crore, close to ₹3 lakh crore, we anticipate to bid for at least ₹2 lakh crore worth of these projects, sir, and in power sector, our traditional hit ratio has been 50%

to 60%. Okay.

Got it. Essentially ₹1 lakh crore.

₹2 lakh crore we'll bid, ₹1 lakh crore, potentially in-flow. Yeah.

Idealistic scenario, a little conservative number is what I gave you.

Understood. Great.

Thank you so much. Thank you so much and all the best.

Yeah. Am I audible, sir?

Yes, Deepak.

Yeah. Thank you very much for the opportunity.

Just wanted to understand, first up, on the MDO side, you mentioned, I think, this year around ₹225 to ₹250 crore and next year ₹550, ₹600 crore of execution that we might do on the MDO side, combining both the mine. What sort of margin profile we are looking at both this year and next year at MDO level?

This is now just started the production, because Tasra has not yet is we are using only a small capacity of production we are doing monthly around 50,000, 60,000 of tonnes. Whereas the KBP just started this year and slowly we will ramp up the production.

On average, we may get around 15% to 16% EBITDA blended together,

sir. Deepak, also most of our margins in both the mines, they'll kick in when we achieve PRC.

For the SAIL mine, we expect to achieve PRC in FY27, March FY27. That's when the washery will also be commissioned, commercial operation of the washery shall be declared, and we'll get our full mining fee.

The EBITDAs are expected to touch 26% to 28% percent around that time. The first mine, the CCL mine, 5 million metric tonnes per annum, we are expected to achieve 5 million metric tonnes per annum in FY28.

There's going to be a gradual ramping up. Right now, we're doing around 14% to 16% and it's going to ramp up all the way to 20% to 22% in this mine when we achieve the peak rated capacity.

Understood. At below peak capacity, this year, we still expecting 15%, 16% margin at ₹250 crore kind of a scale, right, at MDO?

Yes, 14% to 16% margin at a ₹250 crore turnover scale.

Understood. Then next year, I think at the SAIL mine, you're still expecting achieving PRC next year, FY27 itself.

There, FY27 at ₹550, ₹600 crore, a 19%, 20% EBITDA margin is achievable.

PRC in March '27, which means there's going to be a ramp-up from the current 60,000 per month, which is translating into 360,000 per annum, there's going to be a ramp-up of 360,000 to 4 million metric tonnes over the last 5 months of the financial year, right? The washery is also going to get commissioned.

We want to commission it by July next year and we want to declare COD by September. We want to be ready around the time when washery gets commissioned.

Two We want to enhance the capacity By the time the washery gets commissioned, we want to be ready for 2 million metric tonnes per annum, and when it gets commissioned, we want to ramp up to 4 million metric tonnes by end of March in 5 months. That's the plan.

Okay. Peak revenue, combining both the mine, can be around ₹1,800, ₹2,000 crore per annum?

Would that be a right assumption? Plus ₹2,000 crore because of escalation and all of that.

Plus Escalation. At ₹2,000 crore, what, a EBITDA margin of 20 25% is what that we might be envisaging at peak?

Yes, sir. 20 23% to 24%, precisely to be 23% to 25% also.

This peak MDO ₹2,000 crore will be achieving by which year, FY29, FY28? FY28.

Both the MDOs' PRC, peak rated capacity, will be achieved by FY28. SAIL mine, we are going to achieve PRC by FY27 and it's going to continue through '28 also.

But 5 million metric tonnes per annum CCL mine, we'll touch PRC in FY28 towards the end of FY28.

Great. Understood.

Basically you're expecting a big ramp-up in your mining revenue from FY28, from FY27 to FY28, right?

Yes. Exactly.

Understood. Secondly, you spoke about your business mix.

Currently 75% is the power sector, right? You're looking at new opportunities in the steel sector.

Railways, you spoke about, right? How do we envisage your business mix changing, which is 75% power?

All this new sectors, how's

the margin profile? Sir, the margin profiles are concerned, on an average as of now, in the construction we are getting up to 10% is the EBITDA margin we are generating.

O&M and MDO, once we reach the peak rated capacity, are the main driving force for increasing our EBITDA margin. O&M is giving on an average of around 15% to 16% of margins.

Business mix is concerned, right now next 2 to 3 years power orders will come more and parallelly we are also looking at the steel opportunities also. More or less the margin will be 5% here and there.

We are maintaining at the same level of percentages. Okay.

This 75% will continue?

Yeah. Yeah.

The 75% will continue with power thermal capacity addition and O&M capacity addition also being a major driver. There's going to be a slight EBITDA improvement because there's O&M mix getting added as we see new capacity that's being commissioned every year.

International O&M is also doing good. We are achieving good profitability levels there.

International O&M is growing at 25% to 30% year-on-year CAGR. That's also a good sign.

We see this add to the EBITDA margins slightly.

Sure. Understood.

Just one last small thing from my side. You spoke about the guidance for this year.

Anything you want to talk about for FY27 as well, given the scale-up and a higher-margin revenue mix will increase for FY27? Sir,

see, this year we projected around 25%. Year-on-year, we are projecting 25% growth, but being the volume is increasing and we are adding the more MDO business during the next year.

We are in the line of 20% to 25% between only we are projecting, sir, maybe in the range of around ₹7,500 to ₹8,000 crore.

What margin profile?

It will jump, sir, maybe around 0.25% to 0.5% depends on the mix of MDO and the O&M business.

How much jump you mentioned? Your voice was not audible.

0.25% to 0.5%. 0.25% to 0.5%.

At EBITDA level.

At EBITDA level. Fair enough.

That's very helpful, sir. All the very best to you.

Thank you so much.

Thank you, sir. Hello.

Hitali,

Hello?

Please carry on, ma'am.

Yeah. Sir, we have seen headwinds in the electrical segment for a few quarters now.

I would like to understand what is the headwinds there?

We received railway civil signaling and telecommunication and overhead electrification works in the state of Chhattisgarh. Two projects we received during last year.

These execution and supply of material we supplied during the year and we are executing these projects, which resulted the increase in the revenue compared to the previous years.

Okay. Are we expected to continue or is there any improvement expected in this segment?

Yeah. Transmission distribution, we are slowly closing the shop.

That is not fitting into our DNA. We are slowly closing the existing projects and we are taking up the new jobs in railway works and this team will execute going forward all this civil-cum-techno works they'll take up under that division and they will execute.

We are targeting some projects.

Okay. That those segments will replace this one?

Sure.

I would like to understand the opportunity in the renewable energy segment, like in nuclear, battery energy storage, pumped storage, and all of that, if you can share that?

Ma'am, while we continue to focus on renewable energy projects actively, but there's also been a lot of irrational bidding. Our primary focus was on solar and battery energy storage systems on a BOOT basis.

We see a lot of erratic bidding trends currently, we have slowed down in bidding for projects there. You'll see us in a few bids and we continue to focus on solar plus battery energy storage systems.

It's a small pivot to as what we were doing earlier than a standalone basis. Now we want to combine these expertises and bid for a few projects.

Again, with healthy discoms and healthy utilities.

Can you share a number of the opportunity in the solar and battery energy potential opportunity?

See, FY26, we already won a Kusum Yojana project of 13.5 MW of AC capacity. Next year, we plan to enhance this to 100 MW of solar and around 200 to 250 MW megawatt-hour of battery energy storage system capacity.

Those are the numbers we're looking at. This is FY27's projection.

Okay. Thank you, sir.

That was really helpful. Sir, are you projecting any cost escalations in your current projects that you're handling that can affect the margins?

No. Majority of the contracts, we have that clause on the price escalation is pass-through.

We are not losing any money. There is no cost escalation because of the escalation.

We are getting the escalation amount from the clients.

Okay. Thank you, sir.

Yeah. Hi.

I'm sorry I joined a little bit late, I may have missed out. Did you give any guidance for the full year of saying that achieving the ₹6,500 crore turnover?

Is that still on track or are we changing that guidance? Sir,

this again the ₹6,500 is linked to the MDO projections also. Maybe 1% or 2% slippage may be there because of delays in getting the new orders which we anticipated during the year.

Most likely we may touch around ₹6,200 to ₹6,300 level of business during the year.

Sure, sir.

And Which still represents an 18% growth.

Yeah. Absolutely, sir.

I think a 20% to 25% growth still is good enough. The question I had was again on the margin side.

Do we see a 0.25%, 0.5% bump for FY26 over FY25? Is that a possibility?

More or less we'll have the same level as last year, sir, and if depends on the mix of any new orders of O&M and increase in MDO may probably jump the number, but at this moment, we are estimating that it's stable at the last year level.

Understood. Do we have any plans for raising funds?

At this moment, no, sir. If any new opportunities comes up, any investment opportunities, then probably we'll approach the market.

What would be our net debt levels at present?

Around ₹360 crore, sir. Net debt is around ₹360 crore.

Got it. Okay.

On the similar lines, we should expect a 18% to 20% jump in top line for FY27 with margin increase of at least 0.5%, given MDO orders.

We are projecting the same line of 20% to 25% between we are projecting for the next year also. With a margin increase of not 0.5%, sir, 0.25% to

0.5%. Noted.

Yeah. Perfect.

Thank you so much. Thank you.

Yeah. Just one clarification I wanted.

In your previous answer, you said that the potential for you in the power sector is around ₹1 lakh crore. This would be over what, 3 to 5 years?

What time frame are we looking at in this ₹1 lakh crore?

No, it is like this. The opportunities what has been mentioned is based on the balance ordering to be done on the main EPC orders already ordered, which is there some of the items like main plant services work, balance of plant work, then structural work, civil work.

That is substantially it is yet to be ordered by BHEL should be ordered, Adani has to order, then NTPC also has to order. The other thing what we said was the new investments and development will come in 46,000 MW new plants.

That has to take shape. That will be continuously be there in the next couple of years.

Where the EPC orders have been placed by NTPC, Adani, and utility companies in the last 6 months or 1 year, there the ordering has to be done more because they have to ramp up the ordering. That is where we said that initially we can have immediately about ₹40,000 to ₹50,000 crore, and the balance ₹40,000, ₹50,000 crore will develop in the next couple of years.

Okay. Even if I take say ₹1 lakh crore over a period of 6, 7 years, we are looking at around ₹14,000 crore per year roughly, not in the same linear method, but is that the number?

Because or am I getting it wrong?

That should be reasonably okay.

That is only in the That would have to add

potential also which will add up every year ₹1,500 crore.

75% of your business. We are currently doing around ₹6,500 crore a year.

Is that the jump that you're looking at?

Yeah.

Okay. Thank you very much.

Hi, thank you for the opportunity. I just had one question.

Why was there this huge increase in the mechanical segment revenue to ₹435 crore, and do we expect it to sustain for the rest of the year as well?

Yeah. See, during the year, there is a slowdown happened in the FGD orders are concerned, and suddenly there's a government direction, they had given a direction and the Udupi project, which was in the slow progress, and now the Adani has given an instruction to complete this project by March.

Because of that, they started doing this execution since last Q2 onwards. That resulted more order execution in the power sector.

What is the size of the Udupi project?

Around ₹936 crore.

We expect it to complete in this financial year,

FY26? Yeah.

Okay. We expect this momentum to continue for the rest of the year as well?

Yeah. Before March, we'll complete.

We can expect this level of order execution till March.

Okay. Thank you so much.

Thanks, madam. Thanks for our investor community and our colleagues here.

I think as projected by Aravind and also Rohit and as we discussed with very interesting questions and all, it's reasonably assured to say that we will be on track in achieving the targets on the ordering, about ₹10,000 crore, because we are almost near to that 50% beginning of the third quarter. With a lot more opportunities are coming up and newer segments of the business we are looking at it.

The revenue side, we have seen the third and fourth quarters are always will be upswing will be there. That is where that ₹6,200 crore will be reasonably be possible.

With these type of opportunities and the investments coming up, I think particularly in the power sector, steel sector, infrastructure side, railways, and other segments, perhaps, we'll continue to focus for the growth in the coming couple of years. Another area perhaps we can look at towards diversifications in data centers.

Of course, data centers development and the software part of it is different, but the hardware part of it is a interesting point because these data centers need lot of power capacity substations, which is our specialization, then it needs lot of infrastructure works in development, civil works, and then other facilities, balancing facilities. For that is a segment which we can gainfully use it based on the expertise what we have gained.

There are other sectors also to come. I said refineries can come up, and apart from the steel plants, all those areas will be available.

Thank you.

Thank you.