Kalpataru Projects International Limited (NSE: KPIL) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Unidentified Speaker
Analysts:
Unidentified Participant
Amit Anwani — Analyst
Parikshit Kanpal — Analyst
Ashish Shah — Analyst
Vaibhav Shah — Analyst
Sumit Kishore — Analyst
Mohit Kumar — Analyst
Parikshit Kandpal — Analyst
Sukhrit Patil — Analyst
Presentation:
operator
The conference is now being recorded.
operator
Ladies and gentlemen. The conference for Kalpatru Projects Internationals will begin in the next couple of minutes. Thank you for your patience and please continue to be online. Ladies and gentlemen, good day and welcome to the Kalpatru Projects International’s Q3FY26 results earnings conference call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Kishan Mundra from Dam Capital Advisors. Thank you. And over to you, sir.
Unidentified Speaker
Thanks, Andrik. Good morning everyone. And thanks for joining in. And a warm welcome to the Q3FY26 earnings call of Kalpatru Projects International Limited. Today we have the management which is represented by Mr. Manish Mohanot who is the Managing Director and CEO. Mr. S.K. tripathi, who is Deputy Managing Director. Mr. Sanjay Dalmia, Executive Director. Mr. Amit Umplechwar, Director Group Strategy and Mr. Ram Patodia, President Finance and the CFO. Now at this point I’ll hand over the floor to Mr. Monod for his initial remarks post which we’ll open the floor up for. Quite a question and answer.
With that, thank you. And over to you, sir.
Unidentified Speaker
Thank you, Kishan.
Unidentified Speaker
Good morning everyone. Thank you for joining us today and for your continued interest in Kalpatu Projects International Limited. We trust you have had a chance to review our financial results and the presentation available on the stock exchanges and our website.
Unidentified Speaker
To start, this has been an exceptionally.
Unidentified Speaker
Strong year operationally, financially and strategically.
Unidentified Speaker
Before we dive into the specific performance metrics I would like to provide a.
Unidentified Speaker
Broader perspective on our progress achieved in the last three quarters.
Unidentified Speaker
First, our revenue has consistently improved over the last three quarters.
Unidentified Speaker
Driven by robust execution and a healthy order backlog.
Unidentified Speaker
At the console level, we achieved 27% YoY growth for nine months. 26. While standalone growth reached 28%. Both at standalone and console level we are already ahead of our full year.
Unidentified Speaker
Guidance of 25% of revenue growth.
Unidentified Speaker
Second, we have maintained a steady trend of securing new projects with better margins. The same is reflected from improvement in Consol and standalone pvt margin of 110bps and 80bps respectively for 9 months FY26. This performance exceeds our guidance of console PVT margin improvement of 100bps and and.
Unidentified Speaker
Standalone PVT margin increase of 50bps of FY26.
Unidentified Speaker
Third, our achievement on the net working capital front reflects our relentless focus on timely project delivery and disciplined bidding approach with an aim to improve returns on the invested capital. With net working capital at 79 days at consol level and 97 days at standalone level, we are performing significantly better.
Unidentified Speaker
Than our year end target of 100 days.
Unidentified Speaker
Fourth, we have significantly elevated our competitive positioning this year by securing several large.
Unidentified Speaker
Scale strategic orders in our TND and BNF business.
Unidentified Speaker
With 19,456 crores in YTD order inflows and an additional 7,000 plus crores in favorable position, we are well positioned to meet our annual inflow target of 26,000 plus crores. Fifth, and the most important, our balance sheet is at its strongest point in recent history. We have reported a notable decline in net debt due to improved operational performance. Furthermore, we have completed the divestment of the Vindhyachal road asset in January 2026 and we are on track to fully monetize the Indore Real estate project by March 2026. These steps align with our commitment to redeploy capital into our core EPC businesses.
Unidentified Speaker
To enhance our return ratios.
Unidentified Speaker
Let me now get in more details on the financial performance at console level. We delivered Q3FY26 revenue of 6,665 crores, a 16% YoY increase for nine months. FY26 revenue rose 27% YY to Rs 19,365 crores. Similarly, standalone revenue grew by 20% in Q3, 26 and 28% for the nine month period. The growth in revenue is broad based with most of the business verticals delivering a healthy double digit growth led by.
Unidentified Speaker
Strong execution and healthy order backlog.
Unidentified Speaker
Our Consolidated EBITDA rose 23% yy for the first nine months of FY26. At a standalone level, EBITDA grew by 20% yoy in Q3 and 28% yoy for nine months period. For nine month FY26 our consolidated standalone EBITDA margins remain healthy at 8.3% and 8.4% respectively. We continue to deliver solid earnings performance characterized by healthy improvement in PBT margins. Our consoled PBT before exception items grew by a robust 37% in Q3 and 69% for nine months FY26. Similarly for the stand alone business, PPT rose by 45% PBT before exceptional items rose by 44% in Q3 and 52% for the nine month period for nine months.
FY26I consoled PBT margins expanded by 110bps to 4.6% while the standalone PPT margin increased by 80bps to 5.3%. More importantly, we have continued to strengthen our balance sheet through notable improvements in.
Unidentified Speaker
Working capital management and leverage.
Unidentified Speaker
Our net debt at both console and standalone levels declined significantly dropping by 29% and 16% respectively compared to the previous quarter. As of 31st December, our consolidated stands at 2240 crores while standalone net debt.
Unidentified Speaker
Is at 1849 crores.
Unidentified Speaker
These debt numbers would further improve in Q4 given the inflows of Vindhyachal and.
Unidentified Speaker
Normally a healthy inflows in Q4.
Unidentified Speaker
Our net working capital days have shown further improvement both on a year on.
Unidentified Speaker
And quarter on quarter basis.
Unidentified Speaker
For the period ending December, NWC days for both console and standard basis improved by 15 days. As a recent and significant update, we successfully completed the divestment of 100% equity stake in the Vindhyachal Road asset in January 26. This transaction was based on an enterprise value of approximately 799 crores post closing adjustments and has resulted in net cash inflows exceeding Rs 600 crores for KPIL. Looking ahead, we are on track to complete the full monetization of inventory in our indoor real estate project before the.
Unidentified Speaker
End of March 2026. These strategic divestments will help us to further reduce leverage and strengthen our financial. Position as we approach the end of the fiscal year.
Unidentified Speaker
Turning now to our order book position, our console order book remains exceptionally Strong standing at Rupees 63,287 crores as of 31st December 25th. This provides us with significant revenue visibility.
Unidentified Speaker
For the quarters ahead.
Unidentified Speaker
We maintained robust business momentum in FY26, securing 19,456 in new orders year to date. Furthermore, we have favorably placed additional orders.
Unidentified Speaker
Exceeding 7,000 crores predominantly in our TND business.
Unidentified Speaker
We continue to gather substantial TNDO orders both domestically and internationally alongside several significant.
Unidentified Speaker
Wins in our BLF business.
Unidentified Speaker
These orders will further solidify our leadership in the global EPC landscape. Now coming to the performance of individual businesses first, starting with T and D business, business visibility in the T and D business continues to improve and remain strong. On the back of global push for renewables and development of grid infrastructure both domestic and internationally, we have solidified a position as a global leader in the TND business with key wins in the strategic markets and reputed clients. We have received orders of rupees 7826 crores in the TND business till date in 26 and further our L1 or favorably placed in projects over rupees 5800 crores.
Our T& D business order backlog stands at over rupees 25,752 crores as on 31st December 25th reflecting a growth of 12% YoY. TND revenue saw strong yu wide growth of 37% for 9 months 26 to reach Rs 8,992 crores and back of improved execution and healthy order backlog in.
Unidentified Speaker
India, Sweden and other international markets.
Unidentified Speaker
Talking specifically on the Indian TND market, we expect the growth momentum to remain strong led by major impetus on renewable energy integration and rising electricity demand. This is amply supported by PGCL CAPEX numbers and annual pipeline projection of 90,000.
Unidentified Speaker
Crores per annum for the next four years.
Unidentified Speaker
With a strong order book and robust trader pipeline in the focus markets over the next three to four years, we remain confident to deliver strong growth in the TND business going forward. Our B and F business have reported one of the best performances with order inflow crossing the 10,000 crores mark in nine months. We have secured orders worth 10,911 crores till date in FY26 and further have.
Unidentified Speaker
A L1 of rupees 1100 crores.
Unidentified Speaker
Our B&F order book has grown by 40% YoY to rupees 18,596 crores during the year. We have added prestigious projects in terms of data center, large size residential projects.
Unidentified Speaker
Hospitals and industrial works.
Unidentified Speaker
Our strong execution capabilities and ability to deliver large scale projects has helped us to improve our competitive position across marquee developers in India. Our B and F business maintains its growth momentum recording revenue growth of 17% YoY for nine months FY26. Our oil and gas business delivered strong y growth of 58% for nine months FY26 led by robust execution in Saudi projects, our water business saw decline in revenue in Q3 and 9 month FY26 collections in the water business have started to improve especially from UPJGM project starting January 20th, 2026 till date. In the current year we have received collections of over rupees 1250 crores and in the month of January we have.
Unidentified Speaker
Received collections in the range of 250 crores.
Unidentified Speaker
We remain confident in improving collections from.
Unidentified Speaker
Water projections in Q4 itself.
Unidentified Speaker
In our railway business, revenue improved by 31% in Q3 and 15% for nine.
Unidentified Speaker
Months 26 our order book in the.
Unidentified Speaker
Railway business is rupees 2713 crores and further, we are L1 in a metro rail electrification project. The outlook for railways business remains positive with considerable opportunities in areas like high.
Unidentified Speaker
Speed rail, rrts, safety and signaling works.
Unidentified Speaker
Our urban truck business delivered strong performance this quarter with a 79% wire wine growth driven by progress on Metro rail projects. We have strengthened our process in the Metro rail segment with major order win.
Unidentified Speaker
On the Thana Metro rail project.
Unidentified Speaker
Before I conclude, I would like to reiterate my opening comments that we continue to deliver consistently strong results underpinned by three key pillars. First, strong growth in revenue and earnings. Our operational performance has consistently outpaced our guidance reflecting robust execution across most of the business verticals. Second, a robust order book with significant new wins mainly in TND and BNF businesses. We have built a high quality order backlog that ensures long term revenue visibility with improved margins going forward. Third, a strengthened balance sheet. We are successfully reducing debt and maintaining an efficient net working capital ensuring we remain financially agile without compromising on capex.
We have incurred more than 500 crores.
Unidentified Speaker
Of capex in the first nine months of the current year.
Unidentified Speaker
More importantly, we are well positioned to deliver in the strategic priorities and guidance set for FY26. We expect revenue growth for the full year to be approximately 25% accompanied by improvement in earnings of minimum 50 basis points at standalone and 100 basis points in consol. Furthermore, we remain confident in reaching a target console EPS exceeding rupees fifty per.
Unidentified Speaker
Share for the current year.
Unidentified Speaker
We are well placed to achieve targeted net working capital and order inflows guided for the year. Lastly, we expect growth momentum to remain buoyant supported by clear visibility in TND, B&F and civil businesses. We strategically align with evolving market needs and occupy a strong position in the global EPC landscape backed by an integrated expertise, robust execution capabilities, global reach and a resilient financial profile. On back of this, we expect growth momentum to continue along with margin improvement in financial year 2027. With that, I conclude my opening remarks and moderator may now open the floor.
Unidentified Speaker
For Q and A. Thank you.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press time to Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Amit Anwani from PL Capital.
operator
Please go ahead
Amit Anwani
Hi sir. Thank you and congratulations for good set of numbers.
Unidentified Speaker
Good morning, Amit.
Amit Anwani
Yeah, so first question sir, on there’s a kind of decent decline in the console versus standalone and you did explain that your legacy projects are getting executed and Hostel. So just want more explanation what led to kind of 10 12% pet decline on console? And where are we today with respect to the legacy executions in this? Yeah.
Unidentified Speaker
No. So Amit, as we’ve explained in a.
Unidentified Speaker
Presentation, also on the console level, at a PBT level, obviously we have done reasonably well. When you look at the EBITDA level, there were three specific areas. One, water EBITDA is much lower than what it was in the previous year. Driven by results, driven by reasons. All of us know that. And I’m hoping this will improve in Q4 because in January itself we have collected 220 crores as I said earlier and looks like majority of the states now have the budgets to start paying us. We’re keeping fingers crossed. Second, you know, in the previous year we had our road assets with us, all of all three of them.
Now it’s only two. So there’s some decline in consolidated coming from there also in Q3. And third, we continue to suffer on Brazilian operations as we are just closing some of our old projects while we have claims and all of that with client. But normally we don’t take that in books till the claims materialize. So I think Brazil has been a dampener in some form. The good part is the Brazil order book has nearly completed the historical order book. We have less than 100 crores of orders left to be delivered and we are reviewing what we need to do in terms of Brazilian operations going forward.
Unidentified Speaker
So it was a combination of three.
Unidentified Speaker
Things at EBITDA level, while EBITDA has grown not exactly in the same form of revenue on a quarterly basis, but.
Unidentified Speaker
If I look at IT on a nine month basis. While our revenue has grown at 27%.
Unidentified Speaker
EBITDA has also grown by 23% and BBD at 69%.
Unidentified Speaker
So this was a few challenges in.
Unidentified Speaker
EBITDA and I think it’s maybe one more quarter or if not maybe, you know, this was the last quarter where because road assets could continue, you know, in terms of comparison from previous year, water should improve in Q4 and Brazil losses should start coming down, at least consolidated given that we have a lower order book there.
Amit Anwani
Yeah there in terms of pipeline since I think the budget is also over and so just wanted to understand this year definitely would be strong with 12 to 15 perspective. What is the Pipeline for domestic T and D international tnd. Any changes you have seen post budget where you feel that the pipeline can improve or can be reasonably okay, especially Metro if you’d like to highlight there in terms of pipeline additionally.
Unidentified Speaker
Post budget.
Unidentified Speaker
I think on an infrastructure overall given the kind of thrust by the government and given the thrust of all the PSUs, I think pipeline has only improved significantly. Significantly. We’re still looking at finer details but whatever numbers have come out, whether it was PGCL yesterday increasing their capex guidance significantly, whether it was in metro projects, we were seeing a lot of tenders now coming in. Whether it is even on B and F where you’re seeing industrial projects coming in, whether you’re seeing data centers coming in, whether you’re seeing airports coming in.
Unidentified Speaker
And residential and commercial continue to come in.
Unidentified Speaker
We’re also seeing some good traction on the international front on oil and gas.
Unidentified Speaker
So if you ask me from a pipeline perspective, all businesses, TND, B&F, oil.
Unidentified Speaker
And gas, urban infra as well as.
Unidentified Speaker
Sweden, they only look more promising than.
Unidentified Speaker
What it was prior to budget. We are looking at the finer details now and hopefully in the next few months we’ll get a lot more clarity.
Unidentified Speaker
The good part is today we have.
Unidentified Speaker
A visibility of orders in excess of two and a half years. So and even if we grow at a reasonably good number, we have good visibility for the next two to three years.
Unidentified Speaker
So with improved pipeline and strong visibility.
Unidentified Speaker
I think you know, performance should improve only going forward.
Amit Anwani
All right, so fair to assume that even next year the growth can be 20 plus percent.
Unidentified Speaker
I would come back with exact numbers in the April call but yes it would be definitely a very good growth with improved margins. Just two commitment you can take but the exact numbers give me some more time to come back.
Amit Anwani
Thank you so much. Thank you all the time.
operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Parikshit Kanpal from HDFC Securities. Please go ahead.
Parikshit Kanpal
Congratulations on a great quarter. So my first question if I see you on under both. So now TND is about 41% and 29% in PNF and I understand these will have excess of double digit margins. So if I have to look at profitability from here on in the coming quarters every quarter from here on. So what are the pain points currently are facing in terms of legacy order book? How do you think the margin trajectory will move quarterly from here on into the next years? Whether it will improve on a sustainable basis given 70% of these order backlogs from double digit plus kind of margins.
Unidentified Speaker
So Parikshit, first to answer the pain points, you know the pain points clearly where we exist today, one still continues to be water where our outstanding is in four digit crores, a very high number of crores while collections have improved and we’re keeping our fingers crossed that still as of today is a pain point and we are hoping that that would improve significantly in February, March 2 from a pain point perspective today it’s just the volatility in whatever has happened in exchange or whatever else will be 90% plus hedge. But that second pain point because you know in tendering in all our businesses that continues to be it’s calls which needs to be taken.
But while we say so, I completely agree with you that at least 3 of our business units, transmission B and F and oil and gas are at a double digit EBITDA level. And going forward also they’ll continue at that levels. So assuming that the water business cash flow improves, definitely margins should improve going forward including in Q4 itself. We would just like to wait for guidance, you know, post March once we have this clarity on water. But the current order and on the legacy orders, I don’t think I have anything left now. Maybe on 63,000, maybe a thousand odd crores.
Otherwise legacy orders with lower order margins are all gone. Yes, on some of our business segments like urban infrastructure, we have not taken orders at similar double digit margins because these are businesses we have grown in the last three years. But even with that overall you’ll see margins improving reasonably well going forward.
Parikshit Kanpal
So on these water orders, 8,000 crores of backlog. So what kind of margin will be there? I mean is it more of an overhead issue because you are only progressing to the extent you’re receiving cash flows or is it that these now have much lower margins given that projects have been significantly delayed. So how does one evaluate or look at this profitability in this segment? Supposing the payments are coming on time.
Unidentified Speaker
So Parikshit, out of the 8,000 crores.
Unidentified Speaker
Of orders you’ll have to divide this into two around 5,500 crores of orders which have to be delivered and there’s around 2,500 crores which is O&M for the next five, six, seven years across various projects. Okay.
Unidentified Speaker
So on the balance five and a.
Unidentified Speaker
Half thousand crores orders to be delivered at. If I look at it at a gross margin levels, I don’t think there’s a big dent.
Unidentified Speaker
The dent is only coming because of interest cost.
Unidentified Speaker
You know interest cost typically with all those delays get hit at a project level.
Unidentified Speaker
So at a gross margin level the dent is minimal.
Unidentified Speaker
You know if I was at whatever X levels it is maybe 100 basis points debt, not more than that. But the bigger dent comes out of interest trust. So that’s where we’re waiting and watching.
Unidentified Speaker
Second, I think it’s the speed of execution, right? Today we are, while we are delivering on water projects, we’re not delivering at the speed ideally which we would like.
Unidentified Speaker
To given the constraints on cash flow.
Unidentified Speaker
The moment cash flows come you can work on everything. You can increase the speed and deliver this quickly.
Unidentified Speaker
You can also build a healthy order book also because tenders would also start.
Unidentified Speaker
Coming and you could rationalize these cash.
Unidentified Speaker
Flows to do better things on other business units also.
Unidentified Speaker
So it’s a combination of all of this, all dependent on water. But dent in terms of EBITDA could be 100, 200 basis points, not more than that.
Unidentified Speaker
As far as water business is concerned.
Parikshit Kanpal
Just on the monetizations you receive I think 600 crores from EPL. So now the question is how one should look at that and what are the other low hanging fruits. I think we have some arbitration in progress and you have termination gone for termination. So over the next two, three years how do you think further cash flows can come in? And also from indoor real estate monetization point of view, what is now pending from there.
Unidentified Speaker
So on monetization means to.
Unidentified Speaker
First answer your question, whatever cash flow receiving are just going into working capital and debt improvement and some capex. So that’s clearly our indication going forward as far as Indore is concerned as of 31st December we had a outstanding of approximately 75 crores. In January we have already collected 35 crores. And we believe the entire amount should come in maybe a few crores here and there should come in before March. We’re pretty confident that all collections would be done by March. So we would be done as far.
Unidentified Speaker
As Indore is concerned and that would.
Unidentified Speaker
Also go in debt reduction only as. Far as monetization of the other assets are concerned. I think now we have all transmission assets are monetized. We just have one road asset left. We have Shubham which we have declared. As non core where also we are selling specific warehouses to reduce debt. And you can see that debt reduction coming at a console level also. So I believe there also debt reduction. Should happen by selling specific assets at a Shubham level.
Unidentified Speaker
Besides this, as we had indicated earlier.
Unidentified Speaker
Also that we have important bankers to advise us on fundraising at Sweden which is also progressing well. We do not know which options and what timing it exactly is. But we have appointed bankers to look at exploring fund options raising at Sweden also which I’m expecting in 26, 27 should give us further cash flows.
Parikshit Kanpal
And from arbitration like whether you’ve gone for termination. So what kind of realization do you think we can get over the next two, three years?
Unidentified Speaker
So parish, it’s a very difficult question to answer. I can say that on arbitration we have a lot of awards and the total amount of those awards might be in 4 digit crores. But whether it would happen, whether we would get that money in year one, year two, year three, difficult to assess that we have not taken any of this awards in books as and when this comes through, you know, we would take that with the quarterly numbers but difficult to assess from a three to five year perspective.
Parikshit Kanpal
Thank you, I will go to the questions, I’ll join with you for more. Thank you.
Unidentified Speaker
Thank you.
operator
Thank you. The next question comes from the line of Ashish Shah from HDFC Mutual Fund. Please go ahead.
Ashish Shah
Yeah, good morning. Thank you sir. My question is on the commodity cost inflation. So you know, with aluminium, copper etc going high, you know, can you just explain or walk us through how we are protecting ourselves from any potential pressures and where does a risk, if at all exist still on this particular issue?
Unidentified Speaker
Sure. On the commodity front, you know, we have exposure primarily on aluminium, zinc, copper and steel. As of today, as per our risk management policy on aluminum, zinc and copper we are 80 to 90% hedged, if not 95% plus hedged in some of them.
Unidentified Speaker
I can confidently tell you that whatever. Levels we are hedged are lower than our our tender cost on 99% of our tenders. And so to that extent our profit margins, whatever we have bid at tender level is reasonably protected. At a steel level we obviously cannot. Hedge steel because there isn’t a market available for that. We’re carrying an inventory which is in excess of 50,000 tons. When I look at raw materials, finished goods and WIP.
Unidentified Speaker
And we have continuously loaded the steel increase expected cost into our tenders. So to the extent on steel, you know, our total order book is approximately 3 lakh tonnes. As of now we have a visibility of already 50,000 and some would be on in terms of we would have ordered for Q4 also. So there could be some exposure to. Steel but at a tender level we. Have adequately provided contingency for that. So my view is, you know, even on steel increase from here of five.
Unidentified Speaker
To seven thousand rupees. Further, it shouldn’t enter margins to any extent on a totality basis.
Ashish Shah
Sure. And particularly coming to transmission projects in India from PGCI etc. Now are these sort of fixed price EPC contracts for you or there is a provision for commodity cost pass through in some of these projects.
Unidentified Speaker
I think majority of our transmission projects are fixed price projects and we have to load the expected increase in cost at a tender level itself.
Unidentified Speaker
Right. And then you do go and hedge for the commodity again.
Unidentified Speaker
Active steel as.
Unidentified Speaker
I said we are 90 to 95% hedged on all our commodities including some.
Unidentified Speaker
Of the L1 positions.
Unidentified Speaker
We are hedged which we are reasonably sure we should be getting them sooner than later.
Ashish Shah
Right Sir. Also the other issue is on the water side where you did mention that you are expecting things to improve. So this is your expectation primarily from the central budget starting to flow or you expect state to really come and chip in more and hence your cash flow will improve in the water.
Unidentified Speaker
So Ashish, it’s a combination of both. Before the budget came in the state level we had already collected closer to 220crores in the month of January. The budget just came in a few days ago. Even in the budget I think the allocation to water at 67,000 crores is a huge number. And they also indicated that out of the the current year 67,000, hardly 25, 30% has been spent. So with that message of saying that they would be spending more at a central level and with states coming in.
Unidentified Speaker
With their own cash flow and we’re seeing that improvement at the ground also. Except Jarkhand up mp, Orissa, Punjab we’re seeing improvements across. So today if you ask me, except Jharkhand everywhere I’m reasonably sure that Q4 you should see good inflow coming in. But I would still like to keep. My fingers crossed because you know we get this hope several times in the.
Unidentified Speaker
Last six seven quarters.
Unidentified Speaker
But I’ll just keep myself positive right now and hope that it goes the way we have planned.
Ashish Shah
Right.
Ashish Shah
And so last one, LMG could be on what sort of a margin range right now.
Unidentified Speaker
So LMG if you look at the margin range is more at level of. 5 and a half to 6 both EBITDA and PBT because their EBITDA is nearly equal to PBT they hardly have interest cost. I think it was 5.9% if I’m not mistaken. But more in the 6.9% for 7.8% EBITDA for nine months and PBT at 6.9. But I expect this should be at an annualized basis more in the range of 6 to 7. Only
Ashish Shah
at the PBT level.
Unidentified Speaker
At the PBT level.
Ashish Shah
Okay sir, thank you. Thank you very much.
operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Vaibhav Shah from JM Financial. Please go ahead.
Vaibhav Shah
Yeah, so firstly what capex are we targeting for the entire year this year and for FY27?
Unidentified Speaker
So for the current year I think.
Unidentified Speaker
We had already taken approval of capex outflow of closer to 700 plus crores. We have already incurred capex outflow of 500 plus crores. So if you ask me, for the current year capex outflow should be in the range of 700 to 758 crores. In terms of outflow I believe that we should be at a similar range going forward also because we are seeing good traction across all our businesses and given the healthy cash flows which we have and some more cash flows which will come in January, I think we believe that you know that’s the best place to invest from a long term perspective.
So I think on a cash outflow basis next year should be also similar numbers. But we’ll come back to you in April with exact trend on that or exact numbers which we are projecting for the next year.
Vaibhav Shah
Okay so secondly when you mentioned the revenue growth guidance of 25% for FY26 it is for standalone as well.
Unidentified Speaker
Yes, at the standalone level also we.
Unidentified Speaker
Believe that we should be in the range of 25% for the current year.
Vaibhav Shah
Okay. Secondly what is our plan at faster now going ahead in the next couple of years given the almost negligible order backlog right now. So are we looking to slow it down or close the business or will be doing at a nominal level.
Unidentified Speaker
So Bhai Bhavav, we are reviewing the business in detail in Q4 including some detailed presentations at the CP level and meeting clients and all of that. We clearly are not very optimistic about the business where we stand today. And in the last few years we’ve seen several challenges coming on that business. So as far as optimism is concerned looks slow as far as way forward. I think we’ll have a lot more.
Unidentified Speaker
Clarity in the next two months and.
Unidentified Speaker
Clearly the business is on a downturn and not an upturn in any form.
Vaibhav Shah
So currently what would be the EBITDA loss right now at the faster level? In nine months?
Unidentified Speaker
In the nine months I think at.
Unidentified Speaker
A faster level we have already Provided at a console level a number closer to 230 odd crores. 238 odd crores. And if you look at it, in. The last two years we have provided. Closer to 325 plus crores at a console level. So at a console level we provided for majority of the losses which is equal into the amount we’ve already invested in fossil.
Vaibhav Shah
So EBITDA was negative 230crores in first.
Vaibhav Shah
Nine months
Unidentified Speaker
in the current year.
Vaibhav Shah
Okay. Okay.
Unidentified Speaker
So sorry, I just correct myself. At a EBITDA level.
Unidentified Speaker
In parcel it’s 186 crores.
Unidentified Speaker
At a PBT level it’s 237 crores. I correct myself for nine months,
Vaibhav Shah
EBITDA is 186. Yes. Yes.
Vaibhav Shah
Okay. Okay. I said lastly in terms of the receipt. So the money we have received. So we have received 600 crores already in the Q4, right?
Unidentified Speaker
Yes, we’ve already. The money is in the bank.
Vaibhav Shah
Yeah.
Vaibhav Shah
So how
Unidentified Speaker
there’s a debt reduction at a console level.
Unidentified Speaker
Because there was around 190 crores of debt which has been taken over by the acquiring entity. So at a console level the impact of cash inflow plus debt is closer to 800 crores.
Vaibhav Shah
So how do you see the debt? The debt number which we have right now, gross debt of around 3100 crores as of December. So how do you see it moving ahead around March.
Unidentified Speaker
So at a net debt level, I believe March should be lower than December on account of everything normally Q4. Your cash inflows are normally very healthy in our business. Business. Also the VPN and also what is coming from Indore. So the net debt level we would be much lower. And also in a net working capital we would like to be lower than where we are. Difficult to give you exact predictions.
Unidentified Speaker
But I can tell you it will. Be much lower than Q4. Then Q3, whatever. We reported net debt at Q3. It is much lower than that both at standalone and console.
Vaibhav Shah
And our total investment the asset would be somewhere around 420 odd crores.
Unidentified Speaker
Total investments in.
Vaibhav Shah
In VPL loans and equity put together.
Unidentified Speaker
I think it was around 340 odd crores. Sorry. Yes, sorry. My team just. It’s around 417 crores. You’re right.
Vaibhav Shah
Okay. So the game should be booked in Q4.
Unidentified Speaker
Yes, for sure.
Vaibhav Shah
Yeah. Yeah.
Vaibhav Shah
Oh.
Vaibhav Shah
Thank you, sir. Those are my questions.
operator
Thank you. The next question comes from the line of Sumit Kishore from Access Capital. Please go ahead.
Sumit Kishore
Thanks for the opportunity and very strong performance on factors that are within your control. The first question is your working capital is again, you know, well below your guidance. X of water, what would be your working capital days at the consolidated level?
Unidentified Speaker
So with X of water, the working capital days could come down by six to seven days at a curve at a standalone and console level, assuming that the cash inflows were normal, it could.
Unidentified Speaker
Be in the range of six to.
Unidentified Speaker
Seven days because we have not done so much revenue also for the current year.
Unidentified Speaker
If it was a normal situation, the.
Unidentified Speaker
Numbers could have been added, the revenue would have been on time, numbers could have been lower by eight to 10 days also. But as of now, six to seven days is what the impact is
Sumit Kishore
Understood.
Sumit Kishore
And following up from an earlier question, you know, from Ashish, what is the hedging cost that you have incurred for, you know, commodity and or exchange in Q3, FY26 and 9 month FY26 in case you have the number handy?
Unidentified Speaker
I do not have the hedging cost number, but I’ll be happy to explain you that as far as FX is concerned, we are a net exporter, so there is never an hedging cost. We always get a premium. And as far as commodities are concerned, whatever is the cost, it’s loaded at a project level. So at a project level when we.
Unidentified Speaker
Bid we take the, let’s say the.
Unidentified Speaker
Three month forward plus assuming that it is required, nine months, we add that forward cost also at a project level itself. So typically our forward cost, which is.
Unidentified Speaker
Let’S say a 12 month, 18 month.
Unidentified Speaker
24 month forward cost is what is.
Unidentified Speaker
Bid at a project and what is.
Unidentified Speaker
Charged also at a project level.
Unidentified Speaker
As I said earlier today, where we.
Unidentified Speaker
Stand on 99% of our projects, whatever is at hedged at actual cost forward, including the forward premium, it’s lower than what we have bid at a project. Level, it’s significantly lower.
Unidentified Speaker
And that’s where you’ll see margins improving going forward.
Sumit Kishore
Okay, but this cost of hedging would be sitting as part of your other expenses.
Unidentified Speaker
So not necessarily the cost of hedging is sitting as a part of the project cost. As and when delivery happens, it comes into P and L. It sits in the project cost as a CTC cost.
Unidentified Speaker
Of saying that this is the cost to be incurred going forward. As when delivery happens, the revenue and cost both comes into P and L lot. In other costs cost, it would come. In the direct cost itself.
Sumit Kishore
Right.
Sumit Kishore
So it would be as part of the landed raw material costs for you in your RM expenses for your commodity after the whatever.
Sumit Kishore
Yeah,
Unidentified Speaker
perfect.
Sumit Kishore
Yeah, that is very clear. And just you know, for bookkeeping, what was your fastel ebitda loss in Q3? If you can tell us, help us.
Sumit Kishore
Adjust numbers better
Unidentified Speaker
in Q3 faster EBITDA loss is around 63 crores.
Unidentified Speaker
In Q3 itself. Yeah. And total for nine months around 186 crores. This is one area where we believe against whatever we had projected for the year. This is one area where we have not been able to achieve on whatever projections we did. So that’s something which is a setback for us.
Unidentified Speaker
But in totality at whatever we have guided at a PBT level, we have.
Unidentified Speaker
Extended our guidance on all account phenomenal.
Sumit Kishore
So with the hundred odd crore of faster backlog remaining. Even if you have. To quantify remaining pain, it should be less than 100 crores.
Unidentified Speaker
Yeah, much less than that. At a console level.
Sumit Kishore
At a console. Thank you and wish you all the best.
Unidentified Speaker
Thank you.
operator
Thank you. The next question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead. Yeah.
Mohit Kumar
Good morning sir.
Mohit Kumar
Thank
Unidentified Speaker
good morning.
Mohit Kumar
My question is on the TND opportunity in India especially, right. I think last quarter was pretty weak. Just talk about the TND opportunity pipeline or tender opportunity which you see in the, especially in the, for the next six to six to 12 months.
Unidentified Speaker
So Mohit, as I said earlier on. The call, we’re seeing lot of tenders coming on TND while we, while and we presented that earlier also as of now out of our 7,000 crores, around 5,800 crores, we L1 in TND itself both domestic and international. Also if you look at the guidance of power grid in terms of what capex they plan, you know they increased that guidance significantly and it’s visible now. So whether it is tenders coming up on hvdc, whether it is in Rajasthan and Gujarat to support renewable, whether it is southern India, whether it is northeast or whether it is Jammu Kashmir.
So overall we continue, we believe that next two to three years these opportunities will only increase multi fort level both domestic and international.
Unidentified Speaker
And we’re well positioned in terms of. That because we are among the top two, three globally in all markets except China and the TND space. So it always is a good position. To be in and that would be. One of our biggest drivers of growth from a three year perspective.
Mohit Kumar
And what was the international TND inflow in the last nine months compared to FY25?
Unidentified Speaker
So if you look at the TND international In the last nine months we. Have received orders of around 3600, 600 crores and we are L1 in orders of around 4500 crores. Some order we declared yesterday. So I believe by the end of the year TLI should get orders closer to 8000 crores. And this includes, this excludes the Sweden orders. If I include Sweden also TLI should. Be reaching a number around 9 and. A half to 10,000 crores of water inflow in the current year.
Mohit Kumar
And how is this number in the base year?
Unidentified Speaker
If you look at the previous year, TLIO and Plus Means International all put together was around 5,500 crores which includes TLI, LMG and Fossil for nine months in the previous year.
Mohit Kumar
Understood.
Mohit Kumar
Thank you. And all the best. Thank you.
operator
Thank you. The next question comes from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Parikshit Kandpal
Thanks for the follow up. So now, so in this year how much loss funding is provided? And from Q4. So how are you at the loss funding for the road projects?
Unidentified Speaker
I don’t think we have provided significant. Amount of cash funding to any of. The road projects as far as loss funding is concerned. The first six months we had approximately. 40 odd crores but that was more a P and L. I don’t think funding we did significantly nine months.
Unidentified Speaker
If you look at it we did some 40 crores for loan repayment. It was not for lost funding. I think going forward we just have. One asset so there’s no more loss.
Unidentified Speaker
Funding required and that asset is positive in every form both at a P and L level as well as on a cash flow level. So going forward I expect zero loss funding to be done on road assets.
Parikshit Kandpal
So on the pipeline. So if you can quantify segment wise total prospects pipeline both domestic and international. And also want to do a view on pipeline opportunity because after that last big order I have not seen anything major coming up. Cpg, give us some sense in terms of quantifying the pipelines both internationally and domestic segment wise RB actually
Unidentified Speaker
so as.
Unidentified Speaker
I said earlier Parikshit, on the oil.
Unidentified Speaker
And gas front our major focus continues to be on the international market. We had taken a large order at Saudi Aranpur last year and were focused more on execution of that project. I’m happy to say that as of now we are closer to 50% of the project. You know what needs to be delivered closer to that where we stand today. And I expect the balance project to be done in the next 15 to 18 months. We are on track as far as execution of Saudi project is concerned.
Unidentified Speaker
As far as pipeline is concerned, we’re seeing a lot of Tenders coming from. Saudi Abu Dhabi as well as Qatar. We are now qualified for maximum projects.
Unidentified Speaker
And there’s no size restrictions. And now that we have already delivered significant portion of the project, we would continue to bid for a lot of these projects. We ourselves were conscious in bidding in the last 12 odd months because you know this size was itself very big and you know our typical approach is being cautious when it comes to taking large size projects. Given that I don’t have the exact.
Unidentified Speaker
Quantification but I know while we speak.
Unidentified Speaker
We have bid for at least four or five large projects in Saudi and Edna which in the next three to six months we should hear from them clearly. As I said earlier going forward from a 2627 perspective, one of the largest drivers of order book will be oil and gas in the international front.
Parikshit Kandpal
About African quantified domestic and international TND opportunity in the next 12 months.
Unidentified Speaker
So from a bidding. So if you look at it in.
Unidentified Speaker
The current year, you know when I look at PND out of our 26,000 crores expected order for TND itself would be around 15 or 1000 crores going.
Unidentified Speaker
Forward next couple of years I expect this inflows to increase by at least 15 20% on an annualized basis, if. Not more than that. If I have to give you a number perspective it could be trillions of dollars differently at different places. But clearly the focus today for us. Is India number one focus, CIS countries number two focus, Sweden number three focus and neighboring countries and Latam which is a big area for us. Not necessarily Brazil, but Latam, Chile, Guyana, all of that is our number four focus and we’re seeing opportunities everywhere.
Unidentified Speaker
I don’t have the exact quantification of what kind of orders but I can say it’s trillions of dollars of tenders. Expected over the next 24 odd months. Clearly that business growing at 2025% on. Order book would be a bare minimum. For us and with improved margins which. Is very very important for us.
Parikshit Kandpal
And.
Parikshit Kandpal
During the robust pipeline and ordering expected. So how are you looking at capex in TND segment looking? I mean both from tower expansion. So how are you looking at it?
Unidentified Speaker
So on the DND front typically the. Capex is much lower than when I compare at a B and F level. So typically on a B and F front you know capex is more in the range of. Capex is more in the range of 5 to 6% of our revenue. If you need to do the entire. CapEx on the TND front our CapEx would primarily and which is Continuing would.
Unidentified Speaker
Come in plant expansion of capacity. Our plant has already reached closer to two 75,000 both plants put together in terms of capacity on transmission itself. Besides that we do staging, shuttering, girders, all of that separately and railway projects.
Unidentified Speaker
So some capex would go in plant expansion, some capex would go in terms. Of TSC equipments and you know cranes and all of that for the transmission side. But it’s not going to be as significant as we’re looking at B and F side. So if you ask me a number of hundred to one hundred fifty crores or max one hundred fifty crores should be enough as far as capex on transmission is concerned for the next year.
Parikshit Kandpal
And what kind of bookings? I mean which capacity is 2.7 lakh lakh terms? Is it completely bored? So what? But kind of like just to get undercurrent on the ordering through the orders which you have currently. So is the capacity fully booked for the year or like how one thing. Look at it
Unidentified Speaker
as we stand today.
Unidentified Speaker
We are at 90% plus capacity booked for the next year and if I include the L1 orders we are nearly fully booked. But the good part is capacity expansion in this business is very, you know it’s very simple. We have used galvanizing capacity so it’s.
Unidentified Speaker
Only about adding CNC machines which takes.
Unidentified Speaker
Three odd months and you can easily increase your capacity to a higher level. But as of now looks like 2.
Unidentified Speaker
Lakh 75 thousand to 3 lakh tons.
Unidentified Speaker
Should be enough for us from a next two year perspective.
Unidentified Participant
Okay, sure. Thank you sir.
operator
Thank you. The next question comes from the line of Sukhrit Patil from Eyesight Fin Trade. Please go ahead.
Sukhrit Patil
Good point to the team. I have two forward looking questions. As Kalpaduru operates across multiple infrastructure segments and geographies where project selection and exhibition discipline matter as much as order inflows from a strategic point of view what factors now play the biggest role in deciding which projects to aggressively pursue versus where to remain selective? Especially competition and execution risk are involved. That’s my first question. I’ll ask my second question after this.
Sukhrit Patil
Thank you.
Unidentified Speaker
This is Sudeep. I think a very valid question. I think we, we are very clear. That we, we are all our six. Businesses are cyclical in nature and if. You look at the last five, six.
Unidentified Speaker
Years itself you know you saw first two years TND domestic there were hardly any orders. There were orders in water and railways. Last two years you’ve seen TND and TLI and B and F running at a different Speed. So starting point is assessment of what the market is and what competitive strength. We have and what is the strength in terms of delivery. The starting point, the second point is.
Unidentified Speaker
Which markets to focus. So it’s domestic, international, which clients to focus, private, public, out of it, which clients. Third important aspect is availability of labor because there are some projects which are. Very high where labor requirement is very. High versus some projects, for example urban infra for the same volume labor requirement is much lower NP and F. Then the fourth aspect comes as CapEx.
Unidentified Speaker
You know, what are the CapEx requirements? So it’s a mix of five or six things based on which we decide. Resource allocation strategy based on which we decide our bidding strategy, based on which. We decide a margin strategy which we. Need to bid at and based on which we decide what is that our balance sheet can afford. If you ask me personally, that’s been our biggest trend for the last few. Decades, not even for the last few years. And that’s why you see that even with growth, which has happened over the. Last 10 years of around 15% per. Annum, our net debt number nearly stays.
Unidentified Speaker
The same even after we have done capex every year. Last three years we have done capex. Of closer to 2000 crores. So it’s a mix of 6, 7 factors which go in and it’s a larger team which gets involved. So it’s not about one person but it’s a team which five, six man. Team including guidance from the risk management. Committee and what we need do to do. I don’t. It’s not Excel spreadsheet based or it’s. Not something which is a yes or. No, but a combination of various factors. Based on which this gets decided as. Far as execution methodology is concerned, which is the point you asked. I think our strategy has been very simple.
Unidentified Speaker
We first build teams and then we take work. That’s been a strategy always. Whether I look at, you know, urban. Infra, whether I look at Saudi Aranfo. Whether I look at the solar business which we are looking at the international front where we already have one large L1, you know, our strategy first is to build a team, a reasonably good team before we bid for an order and then continue building that business. And that’s been very effective for us all across.
Unidentified Participant
It’s Mr. Ram again along the similar lines from a financial point of view, as the order book makes changes across different segments and regions, what internal metrics help you assess whether the execution quality is improving or not, particularly in terms of cash flow, working capital discipline and returns on deployed Capital. Just want to understand how you look at this beyond just the reported margin numbers.
Unidentified Speaker
I think maybe it might help for you to have a specific discussion on this arm separately. But RAM is on the call. But I can just say that as I said earlier, for us one of the biggest drivers is balance sheet strengthening. And last five years our rose has improved by more than 500 basis points through various aspects. Improvement of profitability through reduction and non core investments, all of that. So at a project level we have all three components. PBT level tenders, Roast, Roe and Capex. When we tender, all of them are available. And if you need to further deep dive, you could meet Ram Sri Lanka in office.
I can ask my office to schedule that meeting with you.
Unidentified Participant
That would be wonderful. Thank you and best of luck.
Unidentified Speaker
Thank you.
operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing remarks.
Unidentified Speaker
Thank you everyone for joining us on the call.
Unidentified Speaker
We expect results to improve going forward. Thank you.
operator
Thank you sir. Ladies and gentlemen, on behalf of Dam Capital Advisors Ltd. That concludes this conference call. Thank you for joining us and you may now disconnect your lines.