Thank you, Iqra. Good morning.

On behalf of Nirmal Bang Institutional Equities, I welcome you all to the 3Q FY26 earnings calls of Power Mech. The management is represented by Mr.

S. Kodandaramaiah, Director Non-Board, Mr.

N. Nani Arvin, CFO.

Now I will hand over to the management for their opening remarks, which will be followed by the Q&A.

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

I have with me Mr. S.

K. Ramaya, Director, Business Development.

I would like to extend a warm welcome to all of you joining us the quarter three and nine months financial year '26 earnings call today. I take this opportunity to welcome you all to our Q3 FY26 earnings call.

As we reflect on our performance during the third quarter of FY26, I am pleased to report that the company has continued to execute on its growth plans with strong results across all key segments. This quarter has demonstrated the consistency and scalability of our business model with our core segments contributing to the positive momentum.

For quarter three financial year '26, the company recorded total revenue of ₹1,433 crore, reflecting 6% growth compared to the ₹1,347 crore in Q3 FY25. This increase was driven by sustained execution across power, O&M, and emerging segments such as mining and civil works.

The O&M business in particular performed well, supported by new order inflows and strong execution of ongoing contracts. EBITDA for the quarter was ₹173 crore, up 8% year-on-year, with EBITDA margins set 12.08%.

The margin remains stable compared to the previous quarter, with a slight dip due to provisions created for compliance with the new labor code. The underlying operational performance, however, remains strong.

Profit after tax for the quarter was ₹100 crore, marking a 15% increase from ₹87 crore in quarter three FY25, with the PAT with PAT margins improving to 7.02% from 6.47% in quarter three FY25. For the nine months ended December '25, the company achieved a total revenue of ₹3,987 crore, reflecting 17% increase compared to the ₹3,409 crore in the same period last year.

The strong nine months performance was largely driven by the ramp-up in our peak verticals, particularly in O&M and industrial power construction projects. EBITDA for the nine months period was ₹513 crore, a 23% increase over the previous year, with EBITDA margins improving to 12.88% from 12.2%.

PAT for nine months was ₹258 crore, a 19% increase over ₹218 crore in the same period last year. The geographical mix for the quarter was 95% domestic and 5% international, while power sector contribution remained at 70%, with non-power sector accounting for the remaining 30%.

Revenue mix for nine months the geographical mix for nine months was 95% domestic and 5% international, while power sector contribution remained at 67%, with non-power sector accounting for the remaining 33%. From an order inflow perspective, order wins during the year-to-date have reached about ₹6,761 crore.

We are progressing towards achieving ₹10,000 crore order intake in FY26. During the quarter, we secured several large and strategic orders across EPC, O&M, and new energy infrastructure.

A key award includes a large BOP EPC package for the 800-megawatt Singareni thermal project from BHEL, which expands our scope from execution packages to integrated EPC delivery in BOP system. We also received a grid-scale battery energy storage system project under build, own, operate model from state utility, which marks our entry into the utility-scale storage assets with long-term contracted revenue structure.

The total order backlog including MDO projects is about ₹56,800 crore, ₹17,300 crore excluding MDO orders. The executable order work order book provides multi-year revenue visibility across power, civil, EPC, and O&M segments.

The order pipeline remains active across thermal, balance of plant, civil infrastructure, railways, and energy transition projects. The company's operating cash flow has improved, reducing from -₹253 crore in nine months FY25 to ₹113 crore in nine months FY26, primarily due to realization of receivables during the period.

This is further expected to improve operating cash flow and reduce reliance on working capital limits. Gross and net debt levels remain well controlled despite delays in certification of water bills and realization of receivables.

As on 31st December 2025, the gross debt was around ₹833 crore, and the net debt was ₹233 crore. The average debt-equity ratio as on the same date was 0.35 times.

In summary, we are we are pleased with the progress we have made during Q3 and the first nine months of FY26. The company's diversified order book, strong execution across segments, and strategic focus on high-value projects continue to position us for sustained growth.

With a solid pipeline of orders and ongoing project execution, we are confident in achieving our full-year targets and driving long-term value for our stakeholders. With this, I now request Mr.

Ramaya garu to update on the key business development initiatives and future outlook.

Thanks, Arvind, for your initial numbers and all the key aspects of the activities of the company. I also thank our investor community here.

To carry forward what Arvind has said, particularly on the business side, I think we continue to drive on the bullish investment profile in the country across many sectors. As a company which is strongly embedded in the power sector business, we continue to drive a power sector business with a lot of opportunities.

Then having diversified to infra and non-power sector and IO also, there is a continuous opportunity available in various sectors. That is how the order booking has been consistent with our expectation.

Overall increase in the order backlog has gone up by 10% from 14,387 at the end of the quarter to ₹15,764 crore. The key aspect of the driving of this increase in the order backlog is due to the key order we have received for the first time, a comprehensive EPC order that too in a native state in Telangana, which drives the business better for us because of the customer interaction and all reach and all.

That has helped the company to grow in many sectors with the ₹2,550 crore. Balance would about ₹300 crore orders are mainly in O&M in the domestic and international market.

The mechanical side the backlog has increased from ₹2,303 to ₹2,959 crore, increase of 28.5%. Civil has grown up from ₹8,472 crore to ₹9,103 crore, a growth of 7.5%.

Then O&M, their last year order backlog was 2,749, now it is ₹2,522, a small dip of 8.2%. Electrical also has seen an upset mainly because of the electrical portion of the business we got in the EPC that contributes about ₹280 crore, which has increased the electrical backlog to 18.3%.

The domestic business continues to drive the market because of the opportunities, and international we are focusing mainly on the O&M and short-term contracts with high margins. That is in line with the company's goal of improving our margins.

These are the three numbers as far as the business profile is concerned. Now, for this year's target of ₹10,000 crore, what we discussed with the team, business team, and what we have got hard opportunities are around ₹5,162 crore, mainly driven by Adani.

They're investing continuously, and they're taking the decisions in ordering. Then O&M, there is a strong profile of opportunities with Vedanta Group.

These two groups would enable us to reach the targets reasonably. What has been recently a great breakthrough has been in the business of energy storage.

In fact, energy storage is going to drive the business substantially with the first breakthrough of what we received for a 250-megawatt energy storage project in West Bengal. That gives a daily availability of 1,000 megawatt-hours.

In fact, energy storage, both in the form of battery storage and the pumped storage, are going to be the future growth engines for a company like us. It brings the synergy into the system based on our expertise in execution and also engineering expertise we are gaining it.

This energy storage is, both in the battery storage and then the pumped storage, is required to balance the power grid stability. We will be contributing in a little way our contribution to that.

This project, with a 1,000-megawatt-hour hour put there, and a expected revenue of nearly ₹103 crore per year for 15 years, that will give an overall revenue of ₹1,563 crore. It involves a capex of about ₹800 crore, and that we have got a consortium of partners led by Power Mech at 51%.

This one, a short-duration project, 18 months, and facilities are available. Land is not a problem.

There is a proper contract with West Bengal Power Development Corporation. Then the agreement is in place.

We have to now get going on this project. The battery is the main part of this investment.

The balance of systems is mainly the electrical systems and balancing facilities and all. That is a key breakthrough.

Then Singareni, as we said, ₹2,550 crore, it has got the three components of the business. Of course, engineering integration has to be done, then a lot of outsourcing and integration with the in-house expertise in construction and engineering coordination project management, we have to take it up.

Out of ₹2,550 crore, the breakup is: mechanical is ₹1,550 crore, civil is about ₹720 crore, electrical is ₹280 crore. Therefore, that drives the business in all these five segments.

The schedule is about 38 months, and there is a fair payment terms available from BHEL. This has been taken from BHEL.

With a 10% advance and then a retention of 5% only. Now we are aggressively driving that business.

We have taken up on the board some of the experts in the balance of plant business in the country, and they are leading the team. Already a lot of engineering work has been taken up.

October is the zero date. In fact, after 38 38 months schedule, we would like to do it in a shorter cycle of time based on the drive and the inputs we can drive it.

Already a lot of initial action has been taken in engineering, and also some ordering has been done in the key packages in coal handling, ash handling, and cranes. Most of the balance ordering should be completed by April-May, key major orders.

That should help us, and already site work has already taken up. Therefore, this is the main aspect of the two businesses we have recently taken.

Now, coming back to the other major business segments. Power sector continues to drive the business, and as we have seen, almost 60 80% of the business is on the power sector driven.

Now looking at the investments coming in the way, Adani Group is a major player in terms of the capacity addition and ordering. If we look at the last two years and plus, where the continuous flow of investments are coming up, and then the key players like BHEL and L&T are getting the orders, the major players in this segment are the Adani, which has got a profile of 24,520 megawatts of ordering and substantial ordering they have done.

Then NTPC is about 12,380 megawatt. Other key players are Damodar Valley Corporation, and then Mahagenco Koradi, then Singareni, where recently we have taken the BOP job, and then various electricity boards all together, the capacity ordering which has been done in the last two years, it has gone up to 54,740 megawatts.

In these, two players are the main beneficiaries in that, with the EPC and the ordering aspects, and both is of interest to us. Only the BHEL, with a total ordering of about 37,140 megawatt, they have got nearly ₹2 lakh crores of orders over the last two to plus two years.

L&T has come back into the play, as we have brought out earlier also, apart from the Nabinagar and Gadarwara, where they have taken from the NTPC two key main plant orders. Adani has diversified the ordering, apart from BHEL to L&T also in four projects in Assam, Korba, and then new projects.

This has to be identified, and that is helping the L&T profile for about 12,800 megawatt with a order booking of ₹42,523 crore. Therefore, these two players are going to play a major role.

BHEL is a key customer for us, and our excellent relationship from the point of view of our performance, consistent ordering on us, we continue to expect orders from them. Then Adani has been an important part of our business growth, and substantial ordering also is there.

The current state is that as on today, out of this 49,940 aspect of the work orders of this one megawattage, nearly about 12,900-megawatt ordering has been completed by BHEL, and balance tendering is of 24,000 megawatt. Then tendering balance by Adani is about 18,400 megawatt.

That transfers also opportunities is of plus ₹60,000 crore in various sectors, that is in the contracts in the terms of civil, structural, mechanical, and then associated auxiliaries. That should help us to continue the growth profile in the power sector business next two to three years.

Now, one more aspect in these capacity addition of what has been ordered is that these opportunities will also drive the O&M with a expected 8,000 megawatt to 10,000 megawatts of commissioning every year. Of course, last one or two years, there has not been much of progress.

This year, about plus 4,000 megawatts have been added to the grid. Even though the Central Electricity Authority has kept a target of 16,000 megawatt, there can be some shortfall, but our expectation is about 8 to 10,000 megawatt on average should be added.

That should help us to get a O&M profile of roughly ₹10,000 crore in the next 5 to 7 years. That means apart from the existing O&M profile, these are the new ordering which will happen, and that will increase our O&M presence in the market.

Now, the key sectors of the business, as I told you, apart from this one, there are opportunities in the infrastructure, railways, roads. Then another aspect we are trying to look at is the mining and material side.

NMDC is coming with an investment for a 50-million-ton extra additional iron ore capacity. Then Steel Authority is having investment profile of more than ₹1 lakh crore.

We have already started participating in these tenders. NMDC, for their two mining projects, they have called tenders for about 30 million tons of capacity addition in the iron ore, and then 20 million tons tenders we are participating.

Then IISCO Burnpur, part of the Steel Authority of India, has got an investment of about ₹45,000 crore, and about two jobs at present we have quoted for about ₹2,200 crore, and there are other opportunities also expected. Therefore, mining side, steel side, and then O&M side, we continue to expect the opportunities, as I said, on the power sector itself, there will be 1,200 additional opportunities crores every year, apart from the renewal of the projects which will take place.

That should substantially increase the O&M profile. Then, the organization is also quite geared up in terms of resource management, in terms of capacity building, and then training of the people, and then handling the higher market size of the O&M business.

The manpower strength has gone up based on the business requirements, from 40,000 is the beginning of January '25 to by December '25 it has reached about 48,000. O&M continues to play a key role in terms of about 18,000 skilled engineers, supervisors, technicians, and operators, with very high-skilled-based control room operation, field operation, field management.

These aspects have been taken up. The important thing of the O&M is that we are a leading player have reached a profile of about 75,000 megawatts.

Recently, about 4,000-plus megawatts also the additional jobs we have taken from Vedanta Group. That will add to the profile.

The key aspects in this is our consistent performance with reference to the availability guarantees, 90 to 95%, auxiliary power capacity, meeting their parameters, and then specific fuel consumption. These are the most important things for driving the higher margins for the owner.

The better these parameters are maintained, better is the availability and also generation. That is how the renewal of the O&M orders also come regularly on the O&M sector.

Therefore, the balance immediate opportunities, we are targeting about 4,500 to see that how much we can meet our target of ₹10,000 crore in the current year, mainly from Adani, BHEL, and possibly a few other O&M orders. Then, the continued investment, I think recently we have seen, Government of India is planning a capex investment ₹12.5 lakh crore in infrastructure and other sectors, up from more than ₹10 lakh crore.

That should open up a lot more opportunities for the coming year also. We continue to depend on these type of new investments from EPC players like BHEL and then customers like Adani, and then all our valued customers in the power sector and also infrastructure.

In railways also, huge investment is there, but the competition seems to be pretty high, and same is the road sector. Therefore, that is based on what we would like to take it, based on our capacity to handle it and also our interest in how much margin we should keep it on.

Then the metros are also growing up. Therefore, a company having diversified long back from the power sector to non-power sector with about 35-36% in the non-power sector, that growth remains consistent, and we continue to drive on these new capacities and also opportunities.

Thank you very much.

Hi. Sir, just a couple of questions.

One, on this ₹17,000 crore of backlog, you always have a fairly strong backlog and addition of orders, how much of this 17 the execution is slow, and what are the challenges there? If you look at your execution for the first nine months, vis-a-vis the accretion in backlog, the execution is slightly weaker.

Maybe you want to call out some comments on these two areas, please?

Yeah. Out of this ₹17,000 crore of order, see, the execution challenges are not there.

Mainly some of the new orders we received during the last year, there is a delays in the starting of the project because of the extended monsoons during the last Q2 and Q3. Some of the projects like Kaiga, where extended monsoons, and Mirzapur is one project where environmental clearances issues are there.

There was delays in starting the projects. Yadadri township project also expected some major revenue in Q2, but due to rains and delays in the starting of the projects impacted the projected revenue.

Apart from there are no challenges. Existing ₹17,000 crore order book is executable order book.

There is no long pending order book in this.

Does this still include the FGD order, or is excluded now the FGD order in the ₹17,000 crore?

Sir, we have removed this last financial year itself, ₹4,260 crore of FGD order. This is without FGD order.

Only ₹936 crore of Udupi project only running in the FGD.

Okay. On the new areas that you've taken, that is balance of plant order or a BESS order or all these new areas now, here what is our margin profile and have you compromised any margins?

Sir, BOP EPC is new line where we were planning to enter into to scale up our operations to expand our scope of execution from actual construction activity to the EPC delivery in BOP system. In BESS, actually, Power Mech has been in forefront for India's energy growth story, and we do not want to miss the energy transition phase as well.

We have founded 100% subsidiary as PM Green for this, and this is a small attempt to see where the renewable segment fits into the Power Mech's vision of sustained growth and margins. We are cautiously optimistic about this segment, and so we are investment of around 16 to 18% IRR we are anticipating on this projects, on equity investments.

Ramaya here. Regarding the Singareni, I think what we have to also look into is that the synergy the company brings about in the execution on a backward integration basis.

As we said, we are strengthened with a very strong engineering and the project management team. More than that, in-house value addition is substantial compared to other BOP players, where they have to outsource everything because of our capacity in different segments and the site execution.

Civil constitutes almost 25% of the total segment, and then installation work, services job, and then some of the other local sourcing, all this supply chain management, we'll be able to do. More importantly, there is a provision of a advance, which helps the working capital management.

The retention is only 5%, which can translate into better cash flows. Then escalation provision also, which compensates for any variation in the prices.

Therefore, and then the nearness of the site for better access and execution. Therefore, the basic strength, as I said, is on in-house capability substantially in execution and outsourcing.

That should help us to see this project is done properly, and also the reasonable margins.

Sir, my last question is on the revenue side. What growth do you expect now on the full-year number?

The MDO business, what is the profit now expected next year? Don't give us for this year, but next year what is the profit expected out of MDO?

What is the revenue growth on the contracting side expected?

Revenue growth this year maybe at 17 to 18% we may try to touch even 20%, sir. We're targeting 20, but may touch at 17 to 18%.

The margins of MDO is concerned, the second mine, KBP mines, just started the revenue generation, and we touched ₹41 crore for 1.5 months of revenue in the Q4 Q3. Q4, we are projecting around ₹100 crore from this KBP alone.

Overall, we may touch around 15-16% during the current year. Next year, the production ramp-up will happen in the KBP mining, and our washery in Tasra will be ready by December, only one quarter will operate with full capacity.

The ramp-up will happen from '28 onwards, the major ramp-up in the margins. Next year, we may touch around 16 to 17% range of average EBITDA we can expect from the MDOs.

Sir.

Hi. Good afternoon, sir, and thanks for the opportunity.

My first question on the revenue guidance, sir. I think we had given revenue guidance of ₹6,500 crore, if I'm not wrong.

Are we on track to achieve that, or are you guiding a lower number now?

Out of 6,500, we projected almost ₹700 crore from the UP water division revenue, but in last quarter, we revised this guidance to the 6,200 ₹6,100 to ₹6,200 level. Now, based on till nine months of growth trajectory at 17% growth, we may touch around ₹6,000 crore, because now Singareni is also started billing.

Now we're hoping that now top line may surge by another ₹100 crore from Singareni. Again, the mining also ramp-up happened, we are expecting around ₹6,000 crore we might touch this year.

Understood. What was the mining revenue for the last nine months?

Sorry, what?

What was the mining revenue for the last nine months, and how do you think it will shape up in FY27 and FY28?

This quarter we touched almost ₹41 crore we recognized from KBP and 20 ₹29 crore from Tasra. Expecting maybe by next quarter ₹100 crore from KBP and ₹30 crore from KTK mine, 130.

We may touch around ₹250 to ₹260 crore this year overall.

How do you think about FY27 and FY28, given the progress?

'27 we'll touch around 600 to 6- ₹700 between, depends on the scale-up of operation in KBP and the likely offtake of client. FY28, we may touch around ₹1,800 to ₹1,900 with escalation value.

If I remember correctly, I think there was some washery or something was, I think, pending for Tasra, right?

As per the timeline, we have to complete this by this December-end. We are on the track now.

All the activities at the washery are ongoing, under process. We are hoping that by September we are targeting to complete the washery, and by December we will be ready with our washery.

Understood. My last question is on the prospect list, especially for the coal EPC.

Of course, there are a number of coal projects which, I think, construction has started. Do you think that, of course, compared to the fiscal when it started in April '25, are you seeing the prospect list getting bigger?

Are you getting more confident for FY27 order inflow from this coal EPC/BOP?

I think BOP is going to be an opportunity. Three more projects are expected, because actually BHEL has got a lot of in-house capacities filled up.

They are also trying to see that outsourcing is a better option, and with a very capable parties like Power Mech and all who are strong on execution, because BHEL's problem is in execution. Then that is how they would like to balance it.

We are expecting three more opportunities, maybe another nearly 7.5 to about ₹10,000 crore of opportunities, but is a question of call we have to take it on that BOP. What is expected is that in other sectors also similar opportunities are expected to come in EPC in mining and mineral sector also.

As I said about NMDC on a BOOT basis, and then the steel business also it is there, and then infrastructure. Therefore, based on the organization's strength developed, we are quite confident a couple of projects we can handle it because of the in-house synergy available.

Sir,

the private thermal EPC, do you think do we have a chance to take those opportunities?

It is again a competition, and that depends on how do we position ourselves based on our interest and also the margins we have to keep it. More than that, the number of players or competition can also be less in this segment for BHEL, maybe two to three players.

Of course, recently Thyssenkrupp has entered in a big way. They have taken a couple of jobs in Koradi, Raghunathpur, etc., because of every organization, particularly BOP, they have their in-built strength like Thyssenkrupp on the coal handling.

That is how they have entered, and that is a qualification for them also. For us, our execution capabilities, that is how there can be.

It can be maybe three-four players maximum.

Sir, my question more of like Adani, Torrent Power, JSW, Adani, of course, the pipeline has only ballooned, and I think we're working with Adani a number of projects. Does that part of piece, do you think that is a very large prospect, and you can get some meaningful order inflow in the next 12 to 18 months?

Yeah. Adani's basic philosophy of outsourcing and supply chain management is that they try to in-house manage their engineering and supply chain orders.

Now, unlike BHEL, which has come to the stage of ordering more on the balance of plant and on a turnkey basis, Adani still keeps those engineering in-house, and they have got a strong support system from their consultants. Then key supply orders, they have got a very strong supply chain in major equipments like coal handling, ash handling, water systems, electrical and C&I systems.

They would like to outsource it to the extent possible on execution side strongly. That is where we are the preferred vendor for them.

We have got a strong relationship with them, mainly depending on our performance only. In fact, our presence in Adani is substantial.

As I said, coming to Adani, it is about 2,000 more than ₹2,500 crore, about 7,500 megawatts we are working. In the case of BHEL also, it is a similar thing.

Therefore, as I explained earlier, Adani's ordering balance backlog is there. We continue to work with them, and recently also we have given some more quotes for some of the jobs in Mahan Phase 3 and then Amarkantak, etc.

Same thing with the JSW also.

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

Thank you.

Hello. Am I audible?

Yes, sir.

Thank you for the opportunity. Actually, I just wanted to ask about the revenue guidance for FY27 and why you revised the guidance for FY26 from ₹6,500 crore to 6,000.

Yeah. FY27 guidance, we will come with the guidance after the full year.

Based on the order book so far, we are on the course to achieve at least 20 to 25% growth, and also improvement in the margin profile depends on the mix of O&M and increase in the MDO order. We are confident of getting on the final March number on that 20-25% growth we can project for the '27.

And '26 guidance, we projected ₹6,500 crore. Earlier, I explained to Mohit also.

₹700 crore of revenue projected from the UP water division, where because of Jal Jeevan Mission where central government funds were not allocated and bills were uncertified, because of that, we have not recognized any turnover during the current year. That impacted the guidance of '26.

Which we are mitigating with the increase in the new orders and other alternatives. Earlier ₹700 crore shortfall, but we are managing ₹200-300 crore extra by way of bringing extra revenue from the other new orders.

Now, coming back to what Arvind said, with a present backlog of 17,326, if we take the normal conversion margin of about 40%, it should reach reasonably 6 to ₹7,000 crore. That is a fair game, plus what we expect to get in the first two quarters of the next year.

That is how their revenue gets fixed up. That's why there can be growth also like this year we had a growth ₹5,200 to ₹6,500, this one plus.

The same growth is also expected in the coming year also.

Sir. Thank you.

Hello. Am I audible, sir?

Yeah.

Can you help me with the geographical mix of the order book?

Yeah. I think coming to domestic and international, it is 95% domestic and 5% international.

Let us look at the investments where they are taking place. They are taking place in north and east, and to some extent south and west also.

Therefore, I don't have the exact figures for the breakup, but our substantial power plant works are mostly going in the eastern side and northern side, and to some extent on the western side also. Whereas the infrastructure is spread all over the country.

It's a question of where we are going to take a call. Railways and then roads, we are working in, for example, in Chhattisgarh we are working, in Andhra we are working, in Telangana we're working, then Maharashtra also we are working.

Then UP, for example, Jal Jeevan Mission we're working at UP. That is a opportunity wherever it is available, based on the selection of the projects and our interest on that.

As far as geography is concerned, Power Mech has got a one unique strength. We are capable of executing the job even in the eastern sector also.

That is how we have seen a strong presence in eastern sector recently. Now we are trying to look at the opportunity in Assam also.

We have got an experience of working in Assam also. It is not a challenge for us to say West Bengal is there, or Orissa is there, or Bihar is there.

All these places we've got a substantial presence in working.

Sir. Got it.

Could you help with the order breakup for ₹17,000-odd crore across erection works, O&M, civil works, electrical?

Around roughly around ₹3,000 crore for the mechanical power ETC business. Civil is around 9,100.

That includes all water, sand mines, and mining. O&M business of around 2,500.

Electrical, ₹1,000 crore. Solar, 159; and BESS, 1,563.

Sir. That's all from my side.

Thank you so much.

Yeah. Hi.

Good morning, sir. I just want to know the way you are anticipating next year, what kind of your order inflow we can expect in general and also on our MDO business also if there is anything for the FY27.

Looking at the opportunity size, as on today, we have mapped opportunities of about ₹1,30,000 to ₹40,000 crore. Of course, the balanced opportunities which are strong we're looking about 3,500 to ₹4,000 crore in the next two months, and we are vigorously following that.

That is spread across different sectors. Different sectors it is spread across.

Therefore, power sector will continue to be a major role, and then railways and roads, and then O&M also there should be more opportunities coming up with more plants getting commissioned. Then also in the ETC business, we have seen, as I told you, the total opportunity size in the contracts on power sector itself is plus ₹60,000 crore.

We hope substantial portion will be ordered based on the how much is the push comes from the BHEL side. BHEL has to do a lot of ordering.

Then Adani is doing timely ordering. Then we're waiting for the actions of L&T also about ₹42,000 crore.

Of course, our interest is in the site construction execution EPC. That we have identified ₹60,000 crore in item-rate contracts, and about 9 to ₹10,000 crore in balance of plant, BOP contracts.

Maybe around 10,000-plus only we'll get, sir, next year, the guidance on the order inflow is concerned. Regarding MDO is concerned, this year we will touch around ₹250 crore turnover.

Second Tasra mine also washery will be ready by Q4 of '27. We are projecting around 600 to ₹700 crore of revenue as from the MDO overall together.

Okay. It's fair to assume ₹10,000 crore in normal in your business we may expect with this kind of opportunity as a order inflow for the FY27.

That is bare minimum level. Am I right, sir?

Am I understood correctly? Quite

right. Second,

sir, as far as the capex is concerned, what would what would be your current month current year FY26 the capex that is, trajectory is going on? Looking forward in FY27, what kind of capex you are looking for?

Right now the regular capex in the Power Mech is only 100- ₹120, depends on the order inflow, regular capex. Washery we are constructing in our books, around ₹280 crore this year approximately ₹280 crore will incur.

Next year maybe around ₹400 crore. Total 680 to ₹690 crore of capex we will incur on the washery itself.

So 380 you can take the current year and ₹520 crore next year.

Next year, you are saying ₹480 crore, right?

This FY26 by March, you can take roughly 300 out cash outflow will be 380 in advance form, but that will be booked as a capex post receipt of the material. Overall, this year and next year together around 690 to ₹700 crore as a washery cost in our books, and ₹100 crore to ₹120 crore on an average on regular capex, the cranes and the vehicles.

Okay. Sir, the way we are you are saying, now the MDO business is also started to, contributed to the revenue, and FY28 onwards, it is going to have a significant contribution.

Currently we are having some kind of, operating margin somewhere close to 12%, and you are saying there is some kind of improv improvization we are going to see in FY27. What kind of number we can expect is as far as range is concerned above 12%?

The starting with 0.25% minimum EBITDA jump, and after that, year-on-year, maybe 0.5% jump till we reach the peak rate capacity. By '29 onwards, you will get peak of 13.5 to 14% EBITDA margins,

sir. Somewhere close to 12.5% we can expect from initial level?

Yeah. Last year it was around 12.3 level, and we will maintain maybe 0.25% extra, maybe this year we'll maintain at 12.5.

Hoping that this will maybe increase of 0.25 year-on-year, and once we are ready with our washery by '28 onwards, maybe 0.5% jump will be there in the margin.

Okay. Okay.

Thank you, sir. Okay.

Hi. I'm not sure if somebody has asked question before.

I was late to join. I have questions regarding the new labor laws.

Industry sources are telling me that post implementation of the law, especially for the contract labors, the cost can go up by 8 to 12% because of the PF and ESI matters, etc. Do you concur with that view?

Yeah. That is an important point what you raised, sir.

You see, minimum wages is a government prerogative. Most of our contracts also tied up with the minimum wages as part of the price variation.

That should reasonably hostage the in terms to cover up the any increase of cost and all. Any such type of statutory variation the government notification, if the provision is not there, it becomes a matter of issue.

Previously that's happened in 2018-19 also, similar problem came up. Finally, government settled it, and most of the contractors, public sector companies, and the private companies also started implementing it.

That means

when

the variation was allowed, and finally we got the compensation. Therefore, we don't expect any impact on that because it is fairly covered in the contract provision itself, because we put a very specific clause, our prices are quoted based on the existing minimum wages, and any variation, that means extra to all the normal variations comes as a PVC or the price indices.

The ad hoc revisions made by the government, it is subject to a variation clause. For that way, we're confident it can be covered.

Change in law clauses will kick in, sir. We can claim with the client on the difference of cost.

All the existing contracts we can claim. For the new contracts, we can load the additional cost, and we can submit our tenders.

Of course. For the new contracts, you can do that.

What about the MDO and non-government contracts? I don't think they generally accept that labor cost increase clause, etc.

Sir,

there my clients is Steel Authority. It's EPC contracts for me.

It is not an investment case for me. Steel Authority and Central Coalfields will compensate that.

PVC clauses are there in that, in that way they'll cover this escalation.

Now, these ad hoc prices will still be covered in the MDO contracts, because the prices at which it was quoted and taken based on the conditions existing or whatever the levels of pricing were available for the minimum wages. If there is a substantial variation as per government directive, that's it subject to a contract variation.

As a

part of this pricing, sir, in the MDO contract, labor indices are also part of that escalation clauses, accordingly that's it covered.

Oh, I see. You don't expect any dent on the EBITDA margins?

Also majority of those projects are construction projects only. They are not into EPC engineering and all, majority covers all escalation clauses in this.

Almost 75 to 80% of our contracts, S&P 500, these standard provisions. Then statutory variation or the ad hoc revision is also a matter of basic our contract offer.

You don't expect any dent on the EBITDA margins?

It will not have any dent, sir. For the company employees, marginally we have to shift the

Yeah. That's the one-time.

That's a one-time, and there's a 4. ₹4 crore of provision we created this quarter.

What about production slow down or some disruption, because I'm told that this contract labor thing, a lot of paperwork has to be done, etc.? Will it slow down the process a little bit for a couple of months or so?

No, I think some of the labor contractors are demanding some other additional benefits and all, for that purpose they're fighting. I don't know, government's already looking into that.

If any changes are there, it will not have no impact on our financials. It will impact the employers' financials.

Every 3-4 years, it is always a case for the contractors and labor people to start for a rise in the minimum wages basically.

No, because I'm told there is a bandh today due to all this by this contract labor group, etc.

That is by the farmers against Indo-US trade agreement.

Okay. That's all from my side.

Thank you so much.

Hello. I wanted to know the breakup of the order inflow, the ₹6,700 crore, in the various segments of mechanical, civil, O&M, and all.

Mechanical is around ₹1,600 crore, ma'am. ₹2,063 crore from civil, O&M ₹1,097 crore, electrical 280, solar 159, and BESS 1,563.

This comes around 6,761.

Thank you.

Hi, sir. Out of total order book of around 17,000, what's our pending order book for JJM UP, and have we done any execution within this 3Q or nine-month FY26?

The pending order book is ₹1,000 crore, sir. We are not executing because of the fund issue, certification issue.

We are executing only the O&M projects, where once 100% completed projects, we are bringing these projects into the O&M phase. So 250 schemes which we have converted so far, and we were going to start billing this from Q4 onwards.

The existing pending works, till the clarity from the government on the allocation of fund, we will slow down on the execution of these works. Only to bring the projects into the O&M phase only the balance minimum requirements only we are infusing funds and we are using.

That too this year we received almost ₹140 crore from the Q1 till YTD, around ₹140 crore we received from the state government. Another ₹100 crore-plus they're proposing.

The file is pending before the Chief Minister, we're expecting another 100-plus crore before March.

Got it, sir. Regarding our EPC of BHEL Singareni, you said around 1 to 2 months we'll do procuring, it will start execution and start FY27, right?

Sorry, which one, sir? Singareni.

Singareni we already started executing, sir. ₹100 crore we are expecting this Q4 revenue.

Got it. Regarding BESS, when do we expect to achieve financial closure?

This, actually, we have as per the agreement, 9 months' time is there from the date of agreement. This mid of this month, we are signing the agreement.

We have 9 months' time after that to close the financial.

Agreement is by

this month. Yeah, 15th of

this month. Got it, sir.

Thank you so much.

Thank you for the opportunity. Most of my questions have been answered.

Just two more points I wanted to understand. Number one, what is the expected peak borrowing and the corresponding interest rate considering the MDO segment also peaks by FY28 or '29?

Okay. Majorly our borrowing is only the working capital limits so far, and we have equipment loan of ₹98 crore, and the balance is ₹700 crore-odd is the working capital limits which we borrowed.

Weighted average cost of the working capital is 8.5%, and equipment loans we are borrowing at 7.8%. Blend of around 8.2 to 8.3% average weighted cost will be there.

With regards to MDO is concerned, the KBP mine we are raising term loan of ₹256 crore. We have not drawn that money.

That we are raising at 9.5% project fund loan. Washery also we are raising loan at 9.5%.

Okay. On a total basis, what we can expect the total number of borrowings?

As of now, it's 833 gross debt as of December, sir. This will go up another ₹400 crore by next year.

Okay. 1,200 roughly.

Okay. Second question, what's the effective tax rate on the full-year basis on consolidated numbers?

Sorry, what?

The corporate tax rate on consolidated book.

This is 25% on the main company, and the increase in the corporate tax is mainly some of the sand mines are on LLP names. LLP where the tax rate is 35%.

When we are consolidating that revenue, your average cost is coming is a higher side.

Can you expect around 28 or 29%? That's what we can expect on consolidated number?

No, it will come to 2.8 to 2.9% average, sir. 28%, yes, average.

Thank you, sir.

Hello. Am I audible?

Yes, sir.

Just one last question. That where do you see a strong demand within all your verticals?

Sorry, your voice is breaking, sir. We are unable to hear.

Is it fine now?

Now better.

I was asking that from which vertical of yours do you see a strong demand going ahead?

Power sector is the major vertical where we are going to get new orders from the power sector,

O&M

also, O&M power. Now we are venturing into the O&M of non-power also.

Recently we won the monorail project of Bombay. We're yet to receive the order.

We are majorly expecting orders from the power side.

Sir. Thank you so much.

That's it.

Hi, ma'am. Am I audible?

Yes, sir.

Yes, I just have a follow-up question on the labor laws. Just to estimate for the worst-case scenario, assuming the labor laws go into full implementation, do we have a quantifiable EBITDA margin impact?

Our labor component of the total cost can be about, say, in the service jobs it is 50

to

60%. And 50 to 60%, for example, service, installation, O&M, etc.

Whereas in the material-based contracts, it will be less. Absolute figures cannot be there because we pay to the contractors based on the item rates of the fixed rates.

The actual values on which the labor payments are made is we don't have a certification on that. On a broad basis, we know that.

We have a limited impact on this rate variation, sir, because of the PVC clauses and minimum wages already we are implementing, there are not much impact for the Power

Mech. Just to assume, let's say the cost goes up by somewhere between 8 to 10%, in that case, what will be our EBITDA impact?

That's what I'm saying. We can claim the PVC from the client, our revenue also will go up.

The compensation will come from the client, we'll pass that compensation to the subcontractor.

Okay. This is true for even the locked-in contracts?

Yes.

Okay. Sir, just last question.

What is your current understanding on this implementation timeline of the labor law codes, especially across the states in which you are operating?

Actually it is applicable from April. Certain people are saying is applicable from 1st April onwards.

The act is already announced in the month of November. We are creating provisions in the Q3 itself for existing liabilities in the books.

Actual implementation will be from 1st April, there are various interpretations are there. Now we're seeking clarification on that.

With effect from 1st April only generally the government will implement this.

Okay. Thank you so much.

That's all from my side.

Because the rules to be framed from the government side, there is a delay.

Noted. Thank you.

Thanks for participation for the thing. Thanks, Arvind and his team.

I think looking at what we can say is that the reiteration of the profile of investments, government is bullish on investments. Now private sector is coming in a big way, mostly in the power sector also.

Power sector capacity expansion is going on, say, it will go up to 320 gigawatts. Maybe earlier they were planning 80 gigawatts addition from 220, then went to 320 gigawatts.

That will add as on today I told you about 55 to 60,000 gigawatts have been added, and then some more ordering will come up because the projects which are in the pipeline development is about 35 to 40,000 megawatts. Therefore, this will happen in the next 2 years.

Then, of course, nuclear power we have to see a catch there. Present capacity of 9 gigawatt, it will go to 20 gigawatt.

Battery storage where we have entered recently, government is very bullish on that. Battery storage, pumped storage, they want to increase the capacity to battery storage to 47 gigawatts by '31-'32, and pumped storage from 4.75 gigawatt to 18.8 gigawatt.

In fact, we are looking at some of these opportunities of pumped storage, which brings in the synergy in our working system on the civil and the electromechanical packages, and we are discussing with some of the players also on that. Therefore, and then O&M, as I said, the increased capacity addition of 8 to 10,000 megawatts, they add on opportunity about 1,200 to ₹1,500 crore.

That will be every year it will be getting added. It depends on how much we can capture that and who are the customers who will be taking to type that O&M in-house or outsourcing completely.

Therefore, that is how we are there looking at it. We hope that next year also we'll have a growth of 20-25%.

Thank you.

Thank you.