Power Mech Projects Limited (NSE: POWERMECH) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Rahul Kudnani
S.K. Kodandaramaiah — Director – Business Development
Nallamothu Aravind — Chief Financial Officer
Analysts:
Pritesh — Analyst
Mohit Kumar — Analyst
Rishabh — Analyst
Amar Ahir — Analyst
Devang Shah — Analyst
Rajesh Kumar Rati — Analyst
Hitali Shah — Analyst
Mudit Bhandari — Analyst
Bhagwat — Analyst
Amar Ahir — Analyst
Vedant Kabra — Analyst
Presentation:
operator
Ladies and Gentlemen, Good day and welcome to Power MEC Projects Limited Q3FY26 earnings conference call. As a reminder, all participants line 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rahul Kudnani from Nirmal Bank Equities. Thank you. And over to you sir.
Rahul Kudnani
Thank you ikra. Good morning. On behalf of Nirmal Bank Institutional Equities I welcome you all to the three QFY26 earnings calls of Power Meg. The management is represented by Mr. S. Kodan Ramaya, Director Non Board Mr. N. Nani Arvind, CFO. Now I will hand over to the management for their opening remarks which will be followed by the Q and A.
Nallamothu Aravind — Chief Financial Officer
Good morning everyone. I’m Arvind, CFO of the company. I have with me Mr. S.K. ramaya, Director of 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 Q3FY25.
This increase was driven by sustained execution across Power O and M and emerging segments such as mining and civil works. The O and 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 at 12.08%. The margin remained 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 remained strong. Profit after tax for the quarter was 100 crore marking a 15% increase from 87 crore in quarter 3 FY25 with PAT margins improving to 7.02% from 6.47% in quarter 3 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 key verticals particularly in O and 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%. Pack 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% and 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 Rs. 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 megawatts singer and thermal project from BHL which expands our scope from execution packages to integrated EPC delivery in BOP systems.
We also received a grid scale battery energy storage system project under build own operate model from state to DLTY which marks our entry into the utility scale storage assets with long term contracted revenue structure. The total order backlog including MBO projects is about 56,800 crore 70,300 crore excluding MDO orders. The executable travel order book provides multi year revenue visibility across power, civil, EPC and O and M segments. The order pipeline remains active across thermal balance of land, civil infrastructure, railways and energy transition projects so the company’s operating cash flow has Improved reducing from minus 253 crore in 9 months FY25 to 113 crore in 9 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. Then the average debt equity ratio as of the Same date was 0.35 times. In summary, 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 PULI targets and driving long term value for our stakeholders. With this I now request Mr. Ramayagaru to update on the key business development initiatives and future outlook.
S.K. Kodandaramaiah — Director – Business Development
Thanks Arvind for your initial numbers and all the aspects of the activities of the company and I also thank the our investor community here and to carry forward what Arvind has said. Particularly in the business side I think.
S.K. Kodandaramaiah — Director – Business Development
We continue to drive on the investment.
S.K. Kodandaramaiah — Director – Business Development
Bullish investment profile in the country across many sectors and as a company which is strongly embedded in the power sector business we continue to build a power sector.
S.K. Kodandaramaiah — Director – Business Development
And then having diversified to infra.
S.K. Kodandaramaiah — Director – Business Development
Non power sector divo also there is a continuous opportunity available in various sectors and that is how the the order booking has been consistent with our expectation.
S.K. Kodandaramaiah — Director – Business Development
And overall increase in the order backlog.
S.K. Kodandaramaiah — Director – Business Development
Has gone up by 10% from 14, 387 to end of the quarter to 15,764 crores under 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 the two in a native state in Telangana which drives the business better for us because of the customer interaction and all reach and all and that has helped the company to grow in many sectors with 2,550 crores and balance out about 300 crores.
S.K. Kodandaramaiah — Director – Business Development
Orders are mainly in O and M.
S.K. Kodandaramaiah — Director – Business Development
In the domestic and international market.
S.K. Kodandaramaiah — Director – Business Development
The mechanical side of the business has.
S.K. Kodandaramaiah — Director – Business Development
Grown from the backlog has increased from 2303 to 2959 crores increase of 28.5%. Civil has grown up from 8472 crores to 9103 crores a growth of 7%. And then O and M their last year order backlog was 24 9. Now it is 2522 a small dip of 8.2%. And electrical also has seen an upstate mainly because of the electrical portion of the business we got in the EPC that contributes 180 crores which has increased the electrical backlog to 18.3%. And the domestic business continues to drive the market because of the opportunities and international we’re focusing mainly on the wind department short term contracts with high margins.
Now that is in line with the company’s goal of improving our margins.
S.K. Kodandaramaiah — Director – Business Development
And these are the key numbers as far as the business profile is concerned. Now the for the this year target of 10,000 crores was we discuss with.
S.K. Kodandaramaiah — Director – Business Development
The team and what we have got hard opportunities around 5162 crores mainly driven by Adani. They are investing continuously and they are taking the decisions in ordering.
S.K. Kodandaramaiah — Director – Business Development
And then om there is a strong profile of opportunities with Vedanta Group. And these two groups should enable us to reach the targets reasonably. And what has been recently a great.
S.K. Kodandaramaiah — Director – Business Development
Breakthrough had been in the business of energy storage.
S.K. Kodandaramaiah — Director – Business Development
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 10,000 megawatt hours. In fact, energy storage both in the. Form of battery storage and the pumper storage are going to be the future. Growth, growth engines for a company like us. And it brings us energy into the system. Based on our expertise in execution and also engineering expertise.
S.K. Kodandaramaiah — Director – Business Development
We are gaining it.
S.K. Kodandaramaiah — Director – Business Development
And this energy storage is both in the battery storage and the bumper storage is required to balance the power grid stability. And we will be contributing a little way our contribution to that. This project, you know, with a thousand megawatt hour output and expected revenue of. Nearly 103 crores per year over 15 years. That will give a overall revenue of 1563 crores. And involves a capex of about 800 crores. And that we have got a consortium. Of partners led by power MEC 51%.
S.K. Kodandaramaiah — Director – Business Development
And this one as 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. And then the agreement is in place. And we have to get going on this project. And the battery is the main part of the this. This investment. And the balance of systems is mainly the electrical systems and balancing facilities and all. And that is a key breakthrough. And then synchrony as we said, you know, 2550 crores. It has got the three components of the business. Of course engineering integration has to be done.
S.K. Kodandaramaiah — Director – Business Development
Then lot of outsourcing and integration of the in house expertise in construction and engineering coordination. Project management to take it up. And out of 2550 crores the breakup is mechanically 1550 crores. Civil is about 720 crores. Electrical is 280 crores. Therefore that drives the business in all these segments. And let me the schedule is about 38 months and there is a fair payment terms available from BHL. This has been taken from BHL and.
S.K. Kodandaramaiah — Director – Business Development
With the 10% advance and then retention of 5% only. And now we are aggressively driving their business. And 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. And already a lot of engineering work. Has been taken up. October is the zero date and we. In fact out of 38 months schedule we would like to do it in. A shorter cycle time based on the drive and the inputs between can thrive it. Already a lot of initial action has been taken. Engineering and also some ordering has been done in the key packages in coal. Handling, ash handling and cranes. And most of the balance ordering should. Be completed by April May. Key major orders that should help us.
S.K. Kodandaramaiah — Director – Business Development
Or all day side work I already taken up. Therefore this is the main aspect of the two businesses we have recently taken. And now coming back to the major business segments. Sorry, power sector continues to drive the business and as we have seen almost 66% of the business is in the power sector driven. And now looking at the investments coming in the way. Adani Group is a major player in terms of the capacity, addition and ordering. And if you look at the last two years and plus where the continuous flow of investments are coming up and then the key players like BHL and getting the order.
The major players in this segment are the Adani which has has got a profile of 24,520 megawatts of ordering and.
S.K. Kodandaramaiah — Director – Business Development
Substantial ordering they have done.
S.K. Kodandaramaiah — Director – Business Development
And then NTPC is about 12,380 megawatt. Other key players are Damodar Corporation and then Mahajan Kot Karate then Singreni.
S.K. Kodandaramaiah — Director – Business Development
We recently we have taken the BOP.
S.K. Kodandaramaiah — Director – Business Development
Job and then various LHC boards all together. The capacity ordering which has been done in the last two years it has gone up to 54740 megawatt. And these two players are the main beneficiaries in terms of the EPC and the ordering aspects and both is of interest to us. Only the BHL with a total ordering of about 37,140 megawatts. They have got nearly 2 lakh quotes of orders over the last two plus two years. And LNT has come back into the play as we have brought out earlier. Also apart from the Nabi Nagar and Gadarwara where they have Taken from the NTPC to keep in front orders.
Adani has diversified the ordering apart from BHL to LNT also in four projects in Assam code. The new projects which are to be identified and that is helping the LNT profile for about 12800 megawatt with a order booking of 42,523 crores. And therefore these two players are going to play a major role. And BHL is a keep key customer for us.
S.K. Kodandaramaiah — Director – Business Development
And our excellent relationship from the point.
S.K. Kodandaramaiah — Director – Business Development
Of view of performance consistent ordering on us. We continue to expect orders from them. And then Adani has been an important part of our business growth and substantial ordering also is there. And the current setup is that as on today, out of this 49,940 aspect of the work orders, this 1 megawattage nearly about 12,900 megawatt ordering has been completed by BHL and balance tendering is of 24,000 megawatts. And then tendering balance by Adan is about 18,400 megawatt. And that transfers out to opportunities is.
S.K. Kodandaramaiah — Director – Business Development
A plus 60,000 crores in various sectors. That is in the contracts in the civil, structural, mechanical and then associate auxiliaries. And that should help us to continue the growth profile in the power sector. Business next to two to three years.
S.K. Kodandaramaiah — Director – Business Development
Now one more aspect if in this capacity addition of what is going to be it has been ordered is that these opportunities which also drive the windm which I 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.
S.K. Kodandaramaiah — Director – Business Development
Even though the Central Authority has kept. A target of 16,000 megawatt. There can be some shortfall. But our Expectation is about 8 to 10,000 megawatt and average should be added. That should help us to get a OM profile of roughly 10,000 crores in. The next five to seven years.
S.K. Kodandaramaiah — Director – Business Development
That means apart from the existing O and M profile, these are the new ordering which will which will happen and that will increase our O and M presence in the market. Now the key sectors of the business, as I told you, apart from this one there is there are opportunities in the infrastructure, railways, roads. And then another aspect we are trying to look at is the mining and material side. NMDC is coming with the investment of for a 50 million tonne extra additional iron ore capacity. Then Steel Authority is having investment profile of more than 1 lakh crore.
And we have already started participating in these tenders. NMDC for their two mining projects which of auto they call tenders for about 30 million tons of capacity addition in the iron ore. That 20 million tons tenders we are participating. And then ISCO Bharanpur, part of the Steel Authority of India has got an investment of over 45,000 crore and about two jobs we have at present. We have quoted for about 2,200 crores.
S.K. Kodandaramaiah — Director – Business Development
And there are other opportunities also expected.
S.K. Kodandaramaiah — Director – Business Development
Therefore, mining side, steel side and then O and M side. We continue to expect the opportunities. As I said, on the power sector itself there will be 1200 additional opportunities crores every year. Apart from the renewal of the projects. Which will take place. That should substantially increase the O and M profile.
S.K. Kodandaramaiah — Director – Business Development
Then the organization is also quite geared up in terms of resource management. In terms of capacity building. And then, you know, training of the people. And then handling the higher market size of the O and M business. And we have the manpower strength has gone up based on the business requirements from 40,000 in the beginning of January 25 to by December 25 has reached almost 48,000. And O& M continues to play key.
S.K. Kodandaramaiah — Director – Business Development
Role in terms of about 18,000 skilled engineers, engineers, supervisors, technicians and operators. With very high skill based control room operation. Field operation, field management. These aspects have been taken up.
S.K. Kodandaramaiah — Director – Business Development
And the important thing of the OM is that we are a leading player which have reached a profile of about 75,000 megawatts and recently about 4,000 plus megawatts. Also. The additional jobs we have taken from Vedanta Group that will add to the profile. And the key aspects in this is our consistent performance with reference to the availability guarantees. 90 to 95% auxiliary auxiliary power capacity. Meeting their parameters and then specific fuel consumption.
S.K. Kodandaramaiah — Director – Business Development
These are the most important things for driving the higher margins for the Hong Kong. For the owner. The better these parameters are maintained. Better is the availability and also generation. And that is how the renewal of the O and M auto source comes regularly. The O and M sector therefore as the balance immediate opportunities.
S.K. Kodandaramaiah — Director – Business Development
We are targeting about 4,500 to see. That how much we can meet our. Target of 10,000 crores in the current year. Mainly from Adani, BHL and possibly a few other models. Then the continued investment. I think recently we have seen Government of India is planning a capital investment 12.5 lakh crores. Infrastructure in other sectors from more than 10 lakh crores. And that should open up a lot. More opportunities in the coming year also. And we continue to depend on these type of new investments from EPC players. Like BHL and then.
S.K. Kodandaramaiah — Director – Business Development
Customers Like Adani and then all our valued customers in the power sector and also infrastructure in railways also 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 down. And then the Metros are also growing up. Therefore company having diversified long back from the power sector, 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.
S.K. Kodandaramaiah — Director – Business Development
Thank you very much.
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 Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Pritesh from Lucky Investments. Please go ahead. You can go ahead.
Pritesh
Yeah. Hi sir, just a couple of questions. One on this 17,000 crore of backlog. You know you always have a fairly strong backlog and additional orders. How much of this 17 is where the execution is slow and what are the challenges there? And if you look at your executions for the first nine months, you know, vis a vis the aggression in backlog, the execution is slightly weaker. So maybe you want to call out some Comments on these two areas please.
Nallamothu Aravind
Yeah. Out of this 17,000 crore of order. So the execution challenges are not there. Mainly some of the new orders we received during the last year there was a delays in the starting of the project because of the extended monsoons during the last Q2 and Q3. And some of the projects like Kaiga were extended monsoons. And Vijapur is one project where environment issues are there. So there are delays in starting the projects. And we expected 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, all the order book existing 17,000 book is executable order book. There is no long pending order book in this.
Pritesh
Does this still include the FGD order or this exclude now the FGD order in the 17,000.
Nallamothu Aravind
We have removed this last financial year itself for a thousand two only 936 crore of ODP project only running in this.
Pritesh
Okay. And you know on the the new areas that you’ve taken that is balance of Plant order or a best order or all these new areas. Now you know here what is the margin profile and have you compromised any margins?
Nallamothu Aravind
So the BOP EPC’s new line where we were planning to enter into to scale up our operations to expand our scope of execution from construction activity to the EPC delivery. EPC delivery in BOP system in Bess actually we ORMEC has been in the forefront for India’s energy growth story and we do not want to miss the energy transition phase as well. So we have found 100% subsidiary PM Green for this. And this is a small attempt to see where the renewable segment fits into the powermax vision of sustained growth and margins. We are cautiously optimistic about this segment and we will.
So we have investment of around 16 to 18% IRR. We are anticipating on this projects on equity investments.
S.K. Kodandaramaiah
Ramaya here regarding the synchrony I think what we have to do also looking.
S.K. Kodandaramaiah
To is that the Synergy company brings about in the execution of a backward integration basis. As we said, you know we are strengthened with a very strong engineering team. Engineering and project management team and more.
S.K. Kodandaramaiah
Than that in house value addition is.
S.K. Kodandaramaiah
Substantial compared to other BOP players where they have to outsource everything because of our capacity in different segments and site execution civil computes almost 25% of the total segment. And then installation, work services, job and.
S.K. Kodandaramaiah
Then some of the other local sourcing all these supply chain management will be able to do. And more importantly there is a provision of a advance which helps say working capital management. And the retention is only 5% which can translate into better cash flows and then escalation provision also which compensates for.
S.K. Kodandaramaiah
The any variation the prices. Therefore until the nearness of the site. For better access and execution. Therefore the basic strength as I said. Is an in house capability substantially in execution and outsourcing. And that should help us to see. This project is done properly and also reasonable margins.
Pritesh
So my last question is on the revenue side. So what growth do you expect sir now on the full year number and the MBO 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 MBA and what is the revenue growth on the contracting side?
Pritesh
Expected
Nallamothu Aravind
revenue growth this year maybe at 70 to 18% to we may try to touch within 20% sir we are targeting 20 but may touch at 17 to 18%. And the margins of MDO is concerned. The second main KPP mains just started the revenue generation and we touched 41 crore for one and a half month of revenue in the Q4, Q3 and Q4. We are projecting around 100 crores from this KBP alone. And overall we may touch around 15, 16% during the current year. And next year the production ramp up will happen in the KBP mining.
And our Washri in Tasura will be ready by December. So only 1/4 only will operate with full capacity. So the ramp up will happen from 28 onwards. The major ramp up in the margins. But next year we may touch around 60 to 70% range of average EBITDA we can expect from the mandibles.
operator
Thank you. The next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Hi. Good afternoon sir. And thanks for the opportunity. My first question on the revenue guidance. I think we had given revenue guidance of 6,500 crore. If I’m not wrong, are we on track to achieve that or is it are you guiding a lower number now.
Nallamothu Aravind
Out of 6,500 we projected almost 700 crore from the UP Water Division revenue. But as per we revised this guidance to the 6200 6100-6200 level. And now based on the till 9 months of growth trajectory 17% growth we may touch around 6000 crore. Because of him also also started building. Now we are we’re hoping that no top line may surge by another 100 crore from singer India. And we will. And again the mining also ramp up happens. So we are expecting around 6,000 crore meters this year.
Mohit Kumar
Understood. What was your mining revenue for the for the last nine months?
Nallamothu Aravind
Sorry,
Mohit Kumar
what was the mining revenue for the last nine months? And how do you think it will shape up in F27 and F28 this.
Nallamothu Aravind
Is last this quarter we touched almost 41 crore. We recognized from KDP and. And 2029 crore from. And. And expecting maybe by next quarter. 100 crore from KBP and 30 crore from KTM bill. So 130 we will may touch around 250 to 260 crore this year overall.
Mohit Kumar
So how do you think about F27? F28 given the progress
Nallamothu Aravind
27 we touch.
Nallamothu Aravind
Around 600 to 6700 between. Depends on the scale up of operation KBP and the likely uptake of client. And FY28 we may touch around 1800 to 1900 with escalation value.
Mohit Kumar
And if I remember correctly I think there was some wash tree or something. Was. Was. I think pending for Tatra. Right?
Nallamothu Aravind
Yeah. As for the timeline, we have to complete this by this December end. So we are on the Track now all the activities at the Washeris are undergoing under process and so we are hoping that by September we are targeting to complete the washery and by December we will be ready with our Washeri.
Mohit Kumar
Understood. My last question is on the prospect list especially for the coal epc. Of course there are a number of coal projects which are which I think construction has started. Do you think that? Of course. Compared to the fiscal when it started in April 25th. Are you seeing the prospectus getting bigger and are you getting more confident for F27 order inflow from this cold EPC BOP?
S.K. Kodandaramaiah
Yeah, I think BOP is going to be an opportunity.
S.K. Kodandaramaiah
Three more projects are expected because actually. BHL has got a lot of input. Capacity is filled up and they are also trying to see that outsourcing is a better option. And with the very capable parties like Power make and all who are strong on execution because BHS problem is in execution. And then that is how they would. Like to balance it that we are expecting three more opportunities. Maybe another nearly 7 to 10,000 crores of opportunities. But is a question of hall we have to take it on that pop.
S.K. Kodandaramaiah
But what is expected is that in.
S.K. Kodandaramaiah
Other sectors also similar opportunities are expected to come in EPC in mining and mineral sector also. As I said about NMDC on a good basis. And then the steel business also it is there and then infrastructure. Therefore this company has a based on the administration developed. We are quite conflict couple of projects we can handle it because of the.
S.K. Kodandaramaiah
In house industry available,
Mohit Kumar
the private thermal epc. Do you think do we have a chance to take those opportunity?
S.K. Kodandaramaiah
Yeah, that is. It is again it is a competition. That depends on how do we position ourselves. Based on our interest and also the margins we have to keep it. And more than that, the number of. Players or competition can also be less in the segment for BHL maybe two to three players. Of course recently the ISO group has. Entered in a big way. They have taken a couple of jobs in Corradir, Raghunathpur, etc. Because of every organization they are BOP.
S.K. Kodandaramaiah
They have their inbuilt self Tyson group on the coal handling. That is how they are entered and. That is a qualification for them also. And for us our execution capabilities that is how that can be. But it can be maybe three, four players maximum.
Mohit Kumar
My question, more of the likes of Adani, Torrent Power, JSW Adani. Of course the pipeline has only ballooned and I think we are working as Adani a number of projects. So does that part of peace? Do you think that will that is, that is a very large prospect and you can get some meaningful order inflow in the next 12 to 18 months.
S.K. Kodandaramaiah
Yeah.
S.K. Kodandaramaiah
Adani’s basic philosophy of outsourcing the supply chain management is that you know, they try to enforce manage their engineering and supply chain orders. Now unless like BHL which has come to the stage of ordering more on. The balance of plant and on a turnkey basis, Adani still, you know, keeps those engineering in house and they have got a strong support system from consultants.
S.K. Kodandaramaiah
And then key supply orders. They have got a very strong supply. Chain in major equipment like in coal handling, ash handling, water systems, electrical and sandy systems. And they would like to outsource it to the extent possible on the execution side strongly. And that is where you know, we. Are the preferred vendor for them and. We have got a strong relationship with them. Mainly depending on our performance only. In fact, our presence in Adani is substantial.
S.K. Kodandaramaiah
As I said, you know, it is. Coming to Adani it is about 2005, more than 2500 crores, about 7500 megawatts. We are working and in the case. Of BHL also it is a similar theme. Therefore with as I explained earlier, Adani’s. Ordering balance backlog is there. We continue to work with them. And recently also we have been some more quotes for some of the jobs. In man stage 3 and then Amar contact etc. Same thing with the JSW also.
Mohit Kumar
Understood sir. Thank you and all the best. Thank you.
operator
Thank you. The next question is from the line of Rishabh from NEXA securities. Please go ahead.
Rishabh
Hello.
operator
I audible yes sir.
Rishabh
Thank you for the opportunity. Actually I just wanted to ask about the resume guidance for FY27 and how. Why you revised the guidance for FY26 from 6,500 to 6,000.
Nallamothu Aravind
Yeah. So FY27 guidance revenues and will come with the guidance after the full year. But based on the order book so far we are in the course to achieve at least 22, 25% growth and also improvement in the margin profile depends on the mix of WINDM and increasing the MD order. So we we are content of getting on the last the financial March number and that 2025% growth we can project. For the 27 and 26 guidance we projected 6500 crore in a layer explained to Mohit also 700 crore of revenue we projected from the UP Water division where because of J Mission the central government funds were not allocated and bills were uncertified.
Because of that we have not received any recognized any turnover during the Current year that impacted the guidance of 26. So which we are mitigating with the increase in the new attacks and alternative. So Even there is 700 quote shortfall. But we are managing 200300 crore extra by way of doing extra revenue from the other new orders.
S.K. Kodandaramaiah
Now coming back to the water said. With a present backlog of 17,326 if we take the normal conversion margin of. About 40% you know it should reach. Reasonably 6 to 7,000 cores. That is a fair game. Plus the what we expect to get.
S.K. Kodandaramaiah
In the first two quarters of the next year. That is how the the revenue gets fixed up. That’s why there can be growth also. Like this year we had a growth from 55200 to 6005 this one. Plus the same growth is also expect in the coming year also.
Rishabh
Okay sir. Thank you.
operator
Thank you. The next question is from the line of Amar Ahir from Raiden Capital. Please go ahead.
Amar Ahir
Yeah. Can you help me with the geographical mix of the order book? You know.
S.K. Kodandaramaiah
Yeah. I think coming to domestic and international. It is 95% domestic and 5% international. And let us look at the investments where they are taking place. They are taking place in eastern, north and east and to some extent south and west also. Therefore I don’t have exact figures of the breakup. But our substantial power plant works are.
S.K. Kodandaramaiah
Mostly going in the. Eastern side and. Northern side and to some extent on the western side also. Where are the infrastructure is spread out all over the country. It’s a question of where we are going to take the call. Railways and then roads we are working in. For example in Chhattisgarh we are working.
S.K. Kodandaramaiah
In the terminal working. Then Maros also we are working. And then UP for example mission we are working with the UP. That is a opportunity wherever it is available. Based on this selection of the projects and our interest on that we are taking as far as geography is concerned. PowerMac has got one unique strength. We are capable of executing the job.
S.K. Kodandaramaiah
Even in the eastern sector. So 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 working in Assam also. It is not a challenge for us. To say Springal is there or there is or Bihar is there and all these places where we got a substantial presence in working.
Amar Ahir
Okay sir. God. And could you help with the breakup for the 17,000 odd crores across erection works O and M civil works, electrical.
Nallamothu Aravind
Around roughly around 3,000 crore. For the mechanical, power etc business civil is around 9100. That includes all water, sand mines and mining. O and M business of around 2500. Electrical 1000 crore and solar 159 and best 1563.
Amar Ahir
Okay so that’s all from. Thank you so much.
operator
Thank you. The next question is from the line of Devang Shah from All west investment managers. Please go ahead.
Devang Shah
Yeah. Hi. Good morning sir. You know I just want to know the way you are anticipating next year. What kind of you know your order inflow we can expect in general and also on a NBO business also if there is anything for the FY27.
S.K. Kodandaramaiah
Now looking at the opportunity side as on today we have mapped opportunities over 1 lakh 30 to 40,000 crores. Of course the balance opportunities which are strongly looking about 3,005 to 4,000 crores. In these two months. And we are vigorously following that. That is spread across different sectors. Various sectors it is spread across and. Therefore power sector will continue to major road and then railways and Railways and roads and then O also there should be more opportunities coming up with more. Plants getting commissioned and then. And then. And also in the ETC business we.
S.K. Kodandaramaiah
Have seen as I told you the total opportunity size in the contracts on power sector itself is plus 60,000 crores. We hope substantial portion will be ordered based on the how much is the push comes from the BHL side. BHL has to do a lot of ordering and then Adana is doing timely ordering and then we have not.
S.K. Kodandaramaiah
We are waiting for the actions of. LNT also about 42,000 crores. Of course our mine my our interest is in the site construction execution EPC that we have identified 60,000 crores in item rate contracts around 9 to 10,000. Crores in balance of pop contracts.
Nallamothu Aravind
So maybe around 10,000 plus only we’ll look at sir next year as the guidance on the order inflow is concerned regarding MDO is concerned this year we will touch around 250 crore turnover. And second taskra also vast will be ready by quarter Q4 of 27. So we are projecting around 600 to 700 from the MD.
Devang Shah
Okay. So it’s a fair to help you 10,000 crore in normal your in your business we may expect with this kind of opportunity you know as an order inflow for the FY27 that is bare minimum level. Am I right sir? Am I understood correctly?
Nallamothu Aravind
Right? Right.
Devang Shah
Second sir as far as the CAPEX is concerned what would be your current month? Current year FY26. The capex that is you know trajectory is going on and looking forward in FY27. You know what kind of categories you are looking for?
Nallamothu Aravind
Yeah. Right now the regular capex in the power Mac is only 100. 120 dependent. Depends on the order inflow. Regular capex and washer we are constructing in our books. So around 280 crore this year will approximately 280 crore will incur. And the next year maybe around 400 crore total 680 to 690 crore of capex will incur in the and unbasher itself. So 380 you can take the current year and 520 crore next year.
Devang Shah
Next year you are saying 480 corrode right.
Nallamothu Aravind
This FY26 by March you can take roughly 300 cash outflow will be 380 in advance form. But that will be removed as a capex post receipt of the material. So overall this year and next year together around 690 crore to 700 crore as a variatory cost in our books and 100 crore to 120 crore and an average on the regular capex, the cranes and the vehicles.
Devang Shah
Okay. And the way we are you are saying, you know now the MBO business is also started to you know contributed in the revenue. And FY20 onwards it is going to have a significant contribution. So you know currently we are having some kind of you know operating margin somewhere close to 12%. And you are saying there is some kind of improvisation we are going to see in FY27. So what kind of number we can expect in as far as range is concerned about 12%.
Nallamothu Aravind
Yeah. So they’re starting with 0.25% minimum EBITDA input jump. And after that year on year will be 0.5% jump till you reach the peak rate capacity by 29 onwards you will get up to 14%.
Devang Shah
So somewhere close to you know 12 and a half percent we can expect from initial level.
Nallamothu Aravind
Yeah. So the last last year it was around 12.3 level and we will maintain maybe 0 to 5 extra will be this year we maintain at 12.5.
Nallamothu Aravind
Hoping. That this will maybe increase of 0.25 year on year. And this once we reach the major. Once we are ready with our washer by 28 onwards maybe 0.5% jump will be there in the maximum.
Devang Shah
Okay. Okay. Thank you sir.
operator
Thank you. The next question is from the line of Rajesh Kumar Rati from right. Shopping Private limited. Please go ahead.
Rajesh Kumar Rati
Yeah. Hi. I’m not sure if somebody has asked question before. I was late to join. I 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 conquer with that view?
S.K. Kodandaramaiah
Yeah. It is an important point what you raise. You see minimum wages is a government prerogative. But most of our contracts also tied up with the minimum wages as part. Of the price variation and that should reasonably upstage the in terms of power of the any increase of cost and all under any such type of statutory variation the government notification if the provision is not there it becomes a matter of issue and previously it has happened in 2018-19 also similar problem came up. Finally government settled it and most of the contractors public sector companies also started implementing it. That means the variation was allowed and finally we got the compensation. Therefore we. We don’t expect any impact on that.
S.K. Kodandaramaiah
Because it is fairly covered in the. Contract provision itself because we. We put a very specific thing. Our prices are quoted based on the. Existing minimum wages and any variation that means except for the normal variation it comes as a PVC or the pricing disease the ad hoc revisions made by the government it is subject to a variation clause for that way we are confident it can be called up.
Nallamothu Aravind
So change in clauses will keep in. Sir, we can claim with the client on the difference of cost all the existing contracts we can claim but for the new contest you can load the additional cost and you can submit out interest.
Rajesh Kumar Rati
Yeah of course for the new contest you can do that. But what about the MDO and you. Know non government contacts I don’t think. You know they generally accept that labor. Cost increase clause etc
Nallamothu Aravind
there my clients is still authority. I see PC contracts for me there is not a investment case for me. So this steel, an RT and central coal fields will compensate that PVC clauses are there in that. So in that we will cover this additional cost.
S.K. Kodandaramaiah
Now these adult prices will be still be covered in the MDO contracts or. Yeah, because you know the prices at. Which it was quoted and taken based. On the conditions existing or the whatever. The levels of pricing were available from. The minimum wages if there is a a substantial variation as a government directive that is subject to contract variation
Nallamothu Aravind
part of this pricing. Sir, in the MDO contract labor indices are also part of that escalation clauses. So.
Rajesh Kumar Rati
I see. So you don’t expect any dent on. The EBITDA margin.
Nallamothu Aravind
Construction projects only they are not into EPC so majority covers. Are all
S.K. Kodandaramaiah
almost 75 to 80% of our contract is. Stat variation or a revision is also is a matter of basic or contract offer.
Rajesh Kumar Rati
So you don’t expect any. Any dent on the EBITDA margin.
Nallamothu Aravind
It will not have any denture. But for the company employees where you’ll have marginally we have to shift the.
Rajesh Kumar Rati
Yeah, yeah. That. That’s a one time.
Nallamothu Aravind
That’s a one time. And there’s a 4.4 frozen we created this quarter.
Rajesh Kumar Rati
What about production slowdown or some disruption? Because I’m told that this contract labor. Thing, you know a lot of paperwork. Has to be done etc. So will it slow down the process a little bit for a couple of months or so?
Nallamothu Aravind
No. I think some of the labor contractors are demanding some other additional benefits and all in. So for that purpose they are fighting. I don’t know Government already looking into that. And if any changes are there it will not have no impact on our financials. It will impact the employer financials.
S.K. Kodandaramaiah
Every four years it is always a case for the contractors and labor people. To start for a rise in the minimum wage.
Rajesh Kumar Rati
Because I am told there is a. Bun today due to all this by this contract labor etc.
S.K. Kodandaramaiah
That is by the farmers against no US trade agreement.
Rajesh Kumar Rati
Okay. Okay. Yeah. That’s all from the side. Thank you so much.
operator
Thank you. The next question is from the line of Hitali Shah from Sriram Mutual funds. Please go ahead.
Hitali Shah
Hello. Yeah. I wanted to know the breakup of the order inflow. The 6700 crores in the various segments of mechanical. Civil omn
Nallamothu Aravind
mechanical is around 1600 crore 2063 crore. From civil O&M 1097 crore. Electrical 280. Solar 159 and best 1560. This comes around 6761.
Hitali Shah
Thank you.
operator
Thank you. The next question is from the line of Mudit Bhandari from IIFL capital. Please go ahead.
Mudit Bhandari
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 9 month FY26.
Nallamothu Aravind
The pending order book is 1000 crores. We are not because of the fund issue certification issue. We are not execute. We are executing only the O and M projects where once 100% completed projects. We are bringing these projects into the O and M phase. So 250 schemes which we have converted so far. And we are. We were going to start building this from the 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 phase only the balance minimum requirements only.
We are increasing funds and we are using. And that this year we received almost 140 crore from the Q1 to till itd around 140 crore. We received from the state government another 100 crore plus. They’re proposing the file is pending before the chief minister. So we’re expecting another 100 plus crore by before March.
Mudit Bhandari
Got it sir. And regarding our EPC of dhel. So you said around one to two months we’ll do procuring. So it will start execution in start start FY27. Right.
Nallamothu Aravind
Sorry, which one? Sir, singularly we already started executing Sir 100 core. We are expecting this fusion revenue.
Mudit Bhandari
Okay. Okay. Got it. And regarding Bess. So when do we expect to achieve financial closure?
Nallamothu Aravind
This actually we have. As for the agreement nine months time is there for the from the date of agreement. So this bit of this month we are signing the agreement. So we have nine months time after that to close the financials
S.K. Kodandaramaiah
agreement is by.
Mudit Bhandari
Okay. Okay. Got it sir. Thank you so much.
operator
Thank you. The next question is from the line of Bhagwat from Prosperity wealth management. Please go ahead.
Bhagwat
Thank you for the opportunity. Most of my questions have been answered. There’s two more points I want you to understand. Number one, what is the expected fixed borrowing and the corresponding interest rate considering the MDO segment also peaks by FY28 or 29.
Nallamothu Aravind
Okay. We are majorly. Our borrowing is only the working capital limit so far. And we have equipment loan for 98 crore and the balance is 700 crore. R 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%. So blend of around 8.2 to 8.3%. Average weighted cost will be there. With reference 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 and Vashary also we are rising loan at 9.5%.
Bhagwat
Okay. On on total basis what we can expect the total number of borrowings
Nallamothu Aravind
as. Of now it is 833 gross date as of December. Sir this will go up another 400 crore by next year.
Bhagwat
Okay. Okay. And second question. What’s the effective tax rate on the full year basis on consolidated numbers.
Nallamothu Aravind
Sorry.
Bhagwat
The corporate tax rate on consolidated book.
Nallamothu Aravind
Yeah. It is 25% on the main company. And there are the increase in the corporate tax is mainly some of the sand mines are an LLP names. So LLP where the tax rate is 35% when we are consolidating that revenue. Your average cost is coming is a high, higher side.
Bhagwat
But can you please comment like can we expect around 28 or 29. That’s what we can expect on consolidated number.
Nallamothu Aravind
No, it. It will come to 2.8 to 2.9%. Average. 28. Yes, average.
Bhagwat
Okay. Okay. Okay. Thank you.
operator
Thank you. The next question is from the line of Amar Ahir from Radian Capital. Please go ahead. Amar, you can go ahead.
Amar Ahir
Hello. Am I audible?
Nallamothu Aravind
Yes sir,
Amar Ahir
just one last question. Where do you see demand across all your verticals?
Nallamothu Aravind
Sorry, your voice is breaking. Sir, we are unable to hear.
operator
Your voice is breaking. Amar.
Amar Ahir
Is it fine now?
Nallamothu Aravind
Yeah, no better.
Amar Ahir
Yeah, I was asking that from which vertical of yours do you see a strong demand going ahead?
Nallamothu Aravind
Power sector is the major vertical where we are going to get new orders from the power sector also. Oy M. Power. And now we are venturing into the windm of Nan power also. Recently we won the monorail project of Bombay. We had to receive the order. So we are majorly expecting address from the power side.
Amar Ahir
Okay sir, thank you so much. That’s it.
operator
Thank you. We’ll take the next question from the line of Vedant Kabra from AVN Capital. Please go ahead.
Vedant Kabra
Hi ma’, am. I’m audible.
Nallamothu Aravind
Yes sir.
Vedant Kabra
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?
S.K. Kodandaramaiah
Our labor component of the total cost can be about say in the service jobs it is 50 to 60%. 50, 60% for the actual service, installation, wind up, windmill etc Whereas in the material based contracts it will be less. But absolute figures cannot be there because you know we pay to the contractors based on the item rates of the. Fixed rate and the actual values on. Which the labor payments are made is have a certification. But on a broad basis we know that.
Nallamothu Aravind
So we have a limited impact on this rate variation. Sir, because of the PVC clauses and minimum wages already we are implementing. So there are no much impact from the power bank.
Vedant Kabra
So 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?
Nallamothu Aravind
That’s what we can claim the PVC from the client. So our revenue also will go up. The compensation will come from the client. So we’ll pass that compensation to the subcontractor
Vedant Kabra
okay. This is true for even the locked in contacts.
Nallamothu Aravind
Yes.
Vedant Kabra
Okay. And so 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?
Nallamothu Aravind
There’s a certain. Actually it is applicable from April. Certain people are saying is applicable from April onwards. But the act is already announced in the month of November. We are creating provisions in the Q3 itself for the existing liabilities in the books and actual implementation will be from the 1st of April. So there are various interpretations, are there now we are, we are seeking clarification on that. But with effect from the 1st of April. Only the general the government will implement this.
Vedant Kabra
Okay, thank you so much. That’s all from my side
Nallamothu Aravind
because the. Rules to be framed from the government side. So there is a delay.
Vedant Kabra
Okay, noted. Thank you.
operator
Thank you ladies and gentlemen. That was the last question. I would now like to hand the conference over to the management for closing remarks.
S.K. Kodandaramaiah
Yeah, thanks for the participation. Thanks again. I think looking at the. What we can say is that a reiteration of the profile of investment is bullish on investment. Now private sector is coming in a big way. Mostly in the power sector. Also power sector capacity expansion will go from say it will go up to 320 gigawatts. Maybe earlier they are planning 80 gigawatts addition from 22320 gigawatt.
S.K. Kodandaramaiah
That ladder as on today I told. You about 55 to 60,000 robots have been added. And then one more ordering will come up. Because the projects which are in the. Pipeline development is almost 35 to 40,000 megawatts. Therefore this will happen in the next two years. And then of course nuclear power.
S.K. Kodandaramaiah
We have to see the catch there. Present capacity of 9 gigawatt. It will go to 20 gigawatt. And battery storage where we have entered recently, you know, government is very bullish on that battery storage, pump storage. They want to increase the capacity to battery storage to 47 gigawatts by 3132 and pumper storage from 4.75 gig up to 18.8 gigawatts. In fact we are looking at from of these opportunities of pumper storage. It brings on the synergy in our working system on the civil the electromechanical packages.
S.K. Kodandaramaiah
And we are discussing some of the. Players also on that. Therefore then windm, as I said, you. Know the increased capacity addition of eight. 10,000 megawatts they add on opportunity about 1200,500 crores. 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 keen to take that O and M in house are outsourcing completely. That is how we are there looking at it. And we hope that next year also we will have a growth of 20, 25%.
operator
Thank you very much on behalf of Nirmal Bank Equities Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Nallamothu Aravind
Thank you.
S.K. Kodandaramaiah
Thank you.