Ems Ltd (NSE: EMSLIMITED) Q3 2026 Earnings Call dated Feb. 14, 2026
Corporate Participants:
Ramveer Singh — Chairman and Executive Director
Ashish Tomar — Managing Director & Chief Financial Officer
H.K Kansal — Chief Executive Officer
Analysts:
Unidentified Participant
CA Garved Goyal — Analyst
Kaushal Sharma — Analyst
UDIT Mittal — Analyst
Nishita — Analyst
Presentation:
operator
Ladies and gentlemen and welcome to the earnings conference call for Q3 and 9 months FY26 of EMS 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 or on your touchstone phone. EMS Limited was incorporated in 2010 by Mr. Ramveer Singh and Mr. Ashish Tomar and is involved in business of severance solution provider, water supply system, water and waste treatment plants, electrical transmission and distribution, road and allied works, operation and maintenance of wastewater scheme projects and water supply scheme projects for government authorities.
Let us now begin with the introduction of the management team we have with us today. Mr. Ramveer Singh, Promoter and Chairman of the company. Also joining us today is Mr. Ashish Tomer, promoter and Managing Director. I would now like to request Mr. Ramveer Singh, promoter and Chairman to give his opening remarks over to you Sir.
Ramveer Singh — Chairman and Executive Director
Namaskar Sabiko. Mr. Good morning everyone.
Ashish Tomar — Managing Director & Chief Financial Officer
This is Ashish Tomer, Managing Director EMS Limited. So first of all I’d like to give a brief introduction about the company. The company was incorporated in 2010 and commenced business in about 2012. We started out with a modest revenue of about 100 odd crores and were able to scale it up to about 930 odd crores in the last financial year. We primarily execute the projects in infrastructure sector with our focus being in water sector. About 70 to 80% of the revenue comes from water sector and rest is from other infrastructure sectors such as buildings, electricity, transmission and distribution etc.
Now about the results of this quarter. As you already must have seen the results, the results are much lower than expected. This was due to certain contribution factors which were beyond the control of the company. Such as because the major revenue of this quarter was expected to come from Uttarakhand and as you know, Uttarakhand saw unexpectedly huge rainfall and natural disasters in the Q2. So in Q3 our work was mainly focused on repair and revamping of the work in progress and due to extension of the monsoon to Q3, about 15 to 20 days were lost in the Q3 and after that when the work resumed a lot of time was lost to remobilization and repair of the executed works.
Because of that, along with that almost half of other order book that we currently have about 1150 odd crores was procured in Q2 and Q3 respectively. And it is in design phase in which the expenditure of the company is being carried out and no revenue can be generated till the execution begins on the site. Apart from that, we would like to reassure you that from the next quarter of the financial year we would be on our path to recovery and would be back on track. The projects secured by us are with healthy margins and we would be making it up in the coming quarters.
Thank you.
Questions and Answers:
operator
Should we begin with the question and answer session now?
Ashish Tomar
Yes please.
H.K Kansal
Yes please. I am HK Kansal, CEO of the. Company and would like to answer the questions. Thank you.
operator
Sure. Thank you very much. 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 withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handsets asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of CA Garved Goyal from Serene Alpha. Please go ahead.
CA Garved Goyal
Hi AM audible. Yes, good morning to the team. And my question is specifically to Mr. Kantal in the opening remarks. Management is seeing we face some challenges up to 15 days of Q3. But at the same time in last phone call when we spoke to Mr. Kansas Mr. Console said October month they delivered very good projections, very good execution in the terms of executing the projects. So why where is the difference that I’m not understanding? Last phone call you were people were very confident and now you are saying there were some issues and we were not able to deliver the project.
So where is the gap, sir? Means your own words are not matching this concord and the previous.
H.K Kansal
Okay, okay, I got your point and I am actually speaking again actually in. Last con call we thought that we will cover it up in two months particularly in November and December. But in civil works and on the road works there was some disaster management also in Utrakhand and the administration is also with there with us. Because administration always directs that this work has to be started now after the. Security and safety of the citizens. So definitely we started in October, you know, first, second week of October. But it could not be with that pace which we wanted basically to cover up the things. So it got a bit late. And second thing, as far as revenue generation is concerned, out of those 2,200 crore order book we could start the work of about 1100 crore in Calcutta, Ayodhya, Agra and Fatehpur which was started in mid of October for design investigations and all other things and slight procurements also. So we have done the expenditure on these projects of 1100 crores. But there was no milestone achieved for which we could achieve the receivables or could receive the revenue.
That is why revenue received is looking less. It is definitely less. And margins are even in more pressure because expenditures done and receipts could not be made. So that happened. And in civil engineering there are. This is not a simple industry. Basically it depends upon so many things. So we couldn’t do that. And it is definitely not as per our expectations. Not as per your expectations. And let me tell you again that company is not in any type of financial distress or any order book distress or anything. But this is just a phase of time that in the quarter ended December 25th we couldn’t perform as we thought and we assured you in the last con call.
And again we are assuring that in this quarter we will try to cover certain things. But definitely now we are of the opinion that in two months or something we will not be able to cover up to that extent. But if you compare, if you will compare it after the Q4 then Q4 will definitely be better than Q3 and Q1 of the next financial year we will definitely progress very hard because our order book which is under design and you know pre engineering faces we will definitely double up lot of revenue from that. So I think this is the explanation which I can give.
And this is from the management side.
CA Garved Goyal
When you say Q4 will be better than Q3. Q3 is already I would say like very lower level.
H.K Kansal
Right.
CA Garved Goyal
So even if. Yeah, but normal execution that will look like it is better than Q3. So can you put a number to it? Like means whether the situation is improved now from when the situation was improved from when the the recovery started. Is it from the January month or from the February month? So can you give some color on that?
H.K Kansal
Yeah, actually Q. There are two things. If we compare Q4, Q3 from the last Q3 that is QQ then we are definitely not to the expectation as far as PAT or EBITDA is concerned. This is in line with the industry but this is not in line with the our records. Actually we have done in last 10 years pet around 18, 19 or 20% EBITDA 26, 27% which is not in that line. Still if you compare it with the other peers that is in line with the other companies but not as per our expectation. Definitely not.
So we have now started our pre engineering in certain projects that is of around 1100 crore rupees projects. Engineering is in the approval phase but it may take another one month or so and then we will start generating the revenue. Because once the work will come in the field then the revenue will be generated. So Q4 we will get better and cure of the next fiscal years. We will overtake it definitely from the previous year. So that is what we can, we can be. We are a bit conservative for that because we are not giving any aggressive guidelines for this quarter.
Again because this is civil engineering work. It takes time to revamp for pre engineering and eventually this is the cycle that 1100, 1200 crores new projects are falling in this quarter, previous one and this one. So that takes around four, five months to give the revenue. Otherwise expenditures are always there for investigations, for soil investigations, for design, surveying and everything. And revenue starts coming after four, five, six months. So previously what used to happen, one project has come in one quarter, two projects have come in another quarter and now the fourth big projects have come in this quarter only.
So this is looking like that. But we are very sure that we will not disappoint any, any of you. Or any of us. And we will definitely do whatever we are committing. But next quarter will not cover the whole, the entire thing of the whole year. So it will start aggressive cover up from the Q1 of the next fiscal and covering in the Q4 also in comparison to Q3 of this year. Thank you.
CA Garved Goyal
Thanks sir.
operator
Thank you. The next question is from the line of Kaushal Sharma from Equinox Capital. Please go ahead.
Kaushal Sharma
Hi sir. Very good morning and audible.
H.K Kansal
Good morning. Good morning.
Kaushal Sharma
Please tell me what is the current order book as of December 2025. And what kind of order inflows are we expecting in next one to two years?
H.K Kansal
Unexecuted order book is around around 2,200 crores as of now.
Kaushal Sharma
And what kind of order inflows are we expecting going ahead?
H.K Kansal
We are very aggressively bidding now because Delhi JAL board had started tenders, you must be knowing. And we are bidding in about 2000 crore rupees tenders in Delhi Jalboard and other places. So we are expecting it to enhance in last three, four in next three, four months by about 1000 crore rupees.
Kaushal Sharma
And so what is current bidding pipeline.
Ashish Tomar
As of now around 4000 crores.
Kaushal Sharma
And what is our winning ratio on an average?
H.K Kansal
Actually our winning ratio used to be 15%, 10 to 15%. But as competition is increasing we have become a bit aggressive for that. And we are planning to get our win ratio enhanced up to 20%. So thousand crore rupees. We are just planning and we are still bidding and bidding in every place. So thousand crore. We are expecting in next 3, 4. Months to achieve the orders.
Kaushal Sharma
And sir, as you said that there is. There was a challenging phase in Q3. But if I compare Q2 to Q3 performance, the sale grew around 15%. But our cost of raw material grew around 25% and the other expenses grew 34%. So could you please highlight what kind of key expenses in other expenses grew a lot more than sales growth and the cost.
H.K Kansal
As I told you, there are three, four phases of any project. Once the tender is awarded, agreement is. Made, then the extensive surveys are started. And certain procurement, certain vendors are decided so on site. Certain deployment of the employees has to be done for proper monitoring and license with the government agencies. So there are. There are expenses in investigations, surveys and we have to start some procurement also which are the delayed thing. For example, I have to lay the 100 kilometer sewer line. So 100 kilometer procurement of pipe or manholes I cannot make in a single step. So we start doing it after tentative finalization of the designs. But you know, for that that is not a milestone in the eyes of the government authority.
So the payment doesn’t come as a revenue or even as a receivable. Because there are certain milestones though it is an item rate contact. But certain items have to be executed so it is not converted. So expenditures are shown. Expenditures are apparent in the balance sheet or in the account, but receivables are not. That is why our EBITDA and PAT. Has impacted that much. So this will be covered, but definitely it will not match with that 1819 packed as in the previous years. Because competitiveness is increasing. Definitely. So you know, it may remain around. 15% as an average for this year.
Kaushal Sharma
The expenses moving the P and L is against the sales that you executed and booked in the particular Q3. So the expenditure pertaining to that that sales should be recorded in the PNL. So that’s why I’m asking. The sales growth is 15%. But your cost of raw material and direct spend grew faster than sales.
Ashish Tomar
That is because some expenditure was done in about 50% of the order against 50% of our order book which is at the stage of design and engineering. So we cannot book receivables or bill it to the department. But we have to book expenses in mobilization, site establishment, procurement of raw materials, etc. So going forward, when in the next quarter as the billing starts, we will be able to build Revenue against the expenditure already carried out, I think. And that would also lead to improvement in the margins.
Kaushal Sharma
So what kind of EBITDA margin we are closing in this financial year? What is our expectation in terms of EBITDA and PAD for financial 26.
Ashish Tomar
Yeah. For financial 23 we expect it to be above 15. That is PAT and EBITDA. EBITDA in excess of 22. 23%.
Kaushal Sharma
22 to 23%. And so what is our current trade issue as of December 2025 and what is the portion of more than six months?
Ashish Tomar
Yeah please. I’ll just check it and tell it to you. Please hold. Yeah.
Kaushal Sharma
And the ratio of unbilled revenue as well showing in the balance sheet.
Ashish Tomar
Yeah. So the unbilled revenue is about 283 crores. Approximately 500 crores.
Kaushal Sharma
More than 6 months.
Ashish Tomar
More than 6 months would be. Almost 120 odd crores is less than 6 months. And other than that it is more than 6 months out of 500 crores.
Kaushal Sharma
Is quite heavy in our trades. Are we expecting any provisioning or something or any challenge are we expecting over there? Hello. Hello.
Ashish Tomar
Hello. Yeah, sorry, sorry. That. That was a mistake on my part. The 500 crores is the total sum of all the receivables. That is includes not unbuilt and build also. So the unbuilt portion is 23 crores.
Kaushal Sharma
Okay.
Ashish Tomar
Okay. The unbuild is 283. Less than six months is about 116 crores. Six months to one year is about 23 crores. One year to two year is about 87 lakhs. And yes, that, that is all.
Kaushal Sharma
Okay sir, thank you. Perfect. Thank you very much.
operator
Thank you. The next question is from the line of UDIT Mittal from Mittal family office. Please go ahead.
UDIT Mittal
Oh yeah. So I just wanted to increase about your interest cost. I was looking at your interest costs have gone up significantly higher. So what’s the level of current debt and what’s the borrowing plan going forward? Is the company facing any working capital issues?
H.K Kansal
Hello. Yeah. Yes sir. Yeah. So the interest costs have ballooned because of a loan of about 25 crores that we took against the HAM project that is in Mirzapur Gazipur STB Private Limited which is a subsidiary of EMS Limited. So that was a HAM project for which we have taken this loan.
So that would lead to. Would have led to escalation in the interest costs. Oh, and what’s the level of current debt? Yeah please, I’ll just answer that. Yeah, so that would be around 700 crores is our exposure to the banks which includes 650 crores of non fund based bank guarantees and about 50 crores in shape of cash credit limit. And that this loan that I told you about. So any plans of further borrowing or something like that? No, no plans on expanding in our borrowings. The facilities that we have are sufficient for execution of our projects.
One more thing I just wanted to know. Recently you had given a disclosure of the promoter holding getting pledged. So what was the reason of the pledge and is there any timeline to reduce the pledge? Yeah, so sir, we took loan of about 210 crores out of which we have already paid about 70 crores. And the current outstanding stands at 140 crores. Within this financial year we will reduce it to about 100 crores. And by next financial year this would be settled. So this was secured to make some investments in the promoter side. No company funds were involved in this.
The loan was in personal capacity only. Okay.
operator
Thank you. The next question is from the line of Ahmed, an individual investor. Please go ahead. Mr. Ahmed, are you there? No sir, we can’t hear you.
Unidentified Participant
Yuck. Can you hear me?
operator
Yes, please continue.
Unidentified Participant
Yeah, so firstly I want to touch upon the last question that was asked by the investors. Firstly the same reason was given two quarters ago when it was asked about this financial year. It will be reduced but from 11 it has gone to 24. So there is no synonymity with the, with the earnings calls and how the things pan out. And now we are looking at the last conference call that was Q2. So it was a rain heat and we took at it as fast face value and in this quarter as well. Again now when we are doing this convol, it is already a month and a half that is passed.
So you already have a visibility of Q4. Likewise you have the visibility in Q3 for the Q3. Yet you went ahead and you know, guideline guided for a better Q3. And now we are looking how the Q3 is looking. Like now you have the visibility of Q4. It doesn’t cost much to be transparent. That is what we would expect at least. So bordering the revenues have gone down. Now I want to check whether this phase where we were doing somewhere around thousand crores a year, whether that case is passed and this is the new normal or probably we’re going to touch upon that kind of a revenue again.
H.K Kansal
Actually we couldn’t get the full question. But what we could get is that probably you are asking that in the. Last con call which was Somewhere in. Middle of the October or in the middle of the November that we would have known the situation about this quarter’s results. Also. That is what probably you are asking and why we couldn’t project better than. What we have done. I think this is a question if. You can confirm and then I will. Try to answer it. Yes, that that is one. That that is one question. And the other question was that like you have said that you will buy FY27, you will reduce. The promoters will reduce pledging to zero. Now when the plugging is somewhere around 28, it was 11.21 and it was communicated by end of. We are very sorry that your voice is not clear and we are not getting the things. Basically that portion I have got and.
operator
I. Mr. Ahmed, I request you to rejoin the queue. Thank you. The next question is from the line of Nishita from Sapphire Capital. Please go ahead.
Nishita
Yes, hello.
H.K Kansal
Yes, hello.
Nishita
Am I audible?
H.K Kansal
Yes, you are audible.
Nishita
Yeah. So I just wanted some clarification. You mentioned that in FY26 we can end at an EBITDA of 22 to 23 and a part of 15. But in Q3 I could see that we’ve done a part of 10 and an EBITDA around 15, 16%. So are we confident that we can get to these margins in FY26 as a whole? Because even in Q2 our margins were under pressure.
H.K Kansal
Yeah madam, actually this is very evident. This is not a free flowing industry. Basically not works on the daily basis or weekly basis. What we do. Actually I have told in the earlier conversation or in some question answer session. That in this quarter, that is Q3. In the month of October, we have. Started three big projects. That is about 50% of our total, you know, order book. That is about 1100 crores. We have started the work one of. The of the order of 700 crores. At Calcutta, 100 crore in Ayodhya, 100 crore in Agra and 200 crore in Fatehpur. So once we get the LOI and get the agreement done. So there are so many things we have to mobilize on the site. First is the investigation portion. Second one is the hutment of the. Labor and other infrastructure office etc we have to establish. So eventually in this quarter we have to do this for the four big projects. So our expenditure have been made. But that is not tangible for getting. The revenue or the billable amount. That is why in this quarter it is looking like PET is around 10% and the EBITDA is 15%. And this is A routine process that if we go in the next quarter. In this quarter that is running quarter. Or in the next quarter, the revenue will be more than the expenditures in the ratio wise. So we will definitely get it more than 15% or at least 15 for this financial year. And otherwise for the next thing we will remain about 17, 18 of the PET as we have done in the history of the 1011 years of the company’s history. So this is eventual portion of this quarter. So on nine months basis it is still 15.86% pet. So we are not behind 15% if. We take the nine month period. But if you take the quarter only. So I have explained it that in a quarter you can start certain projects which have the expenditure side stronger than the receivable sides. So that is what happened in this quarter. Okay, so it’s a routine and civil engineering project sometimes. Thank you so much.
Nishita
Okay, so in general, so like you mentioned that we have the current order book of 2200 crores. So is that a routine process that once we start the project there revenue will, we’ll start booking the revenue post. Four months of like starting.
H.K Kansal
Yeah, yeah. This is cyclic. Once we execute the work we get the receivables and the 90 days we take as the receivable amount. So this is 60 days to 120 days. And sometimes we as an average we take it 90 days period after expenditure. So 90 days revenue, that is three months working capital. We always require say thousand crore turnover. So we require mostly 250 crore rupees. As a working capital. Minus 250 crore minus the 20% EBITDA. That is about 20 crore rupees we have to have in our hands for as a working capital. But this figure fluctuates a lot quarter by quarter because civil engineering projects on ground they may face so many problems. Sometimes the land is not clear. Sometimes as we have seen in this these two quarters that rainy season has affected so much in Q3, in Q2, it affected so much in Q3 we tried to revamp it and to reorganize it. But you know, once there is a heavy rain, there are some disasters also. So the administration which look after the development works, they also give the priority to the disaster restoration. So that took some time and certain times we were stopped to do the work. And that is why this quarter, otherwise we assure you that this, this quarter will be much, much better and we will definitely be on our pace that we will outpace from the Q1 of the next financial year.
There is no Doubt about it. And our order book is also likely. To get ended because we are aggressively bidding now in you know, in Delhi jail board and other states also for AMRA 2 and DJB fundings.
Nishita
Okay, okay.
H.K Kansal
I think. Yeah.
Nishita
Yes, yes, I got your point. And my last question is that you mentioned we can get thousand crores in next two, four months. So in FY26 what will be our exit order book? Can we expect it to be around 3000 crores?
H.K Kansal
Our exit order book? You know if we, if we are having 22, 2,200 crores. We will, we will grow as per. Order book is concerned. We will go buy about 40 to 50%.
operator
Thank you. The next question is from the line of Azar, an individual investor. Please go ahead.
Unidentified Participant
Yeah, good morning, can you hear me?
H.K Kansal
Yeah, we can.
Unidentified Participant
All right. So first of all I would like to say that it doesn’t take much to be transparent. That is the first thing. Now when we look at earnings call of Q1 promoter pledging was somewhere around 11 and it was guided, it was guided that it will be reduced by FY26. Now it is below the 28 and you’re saying that it will be reduce the FY27, that being one thing. So the commentary is not synonymous with what is happening now. Looking at the Earnings Call of Q2 In Q2 it was mentioned you already had the visibility like you have the visibility now for Q4, you had the visibility for Q3 but yet you chose on certain hypothetical assumptions that you will be probably rebounding.
I just want to understand, is this the new normal or probably we are crossing that 980 odd crores of financial year figure, let’s say in FY27 or FY28. Do you have that kind of visibility? Understand there was rain issues in Q2 Q2. Now you’re saying that there were delays in Q3. You expected something that didn’t pan out. Looking at your competitors, Q2 rained in effective them in Q4. Probably the numbers are better both in the terms of bottom line and on the top line. That’s all.
Ashish Tomar
Yeah. So first I would like to explain or give answer to your second question. So I would request you to please understand the nature of the business. The projects that we get vary from year to year and state to state. So as a coincidence the major portion of the revenue that we expected to book was to come from uttarakhand AS about 800 odd crores in excess of our work order comes from that state. The work that we do involves digging up of roads and laying the pipelines in that area due to unexpectedly heavy rainfall and the landslides and natural disasters that took place in that state.
In the Q2 we expected it to recover by Q3 but the disaster management taken up by government that took some time more than what we expected and we could not execute or book revenue in that state. So that is for the but on overall business side we think we can resume our pace by next quarter. This quarter would likely be still be affected as far as loan against share is concerned. Out of 210 odd crores that we took from NBFCs, 70 crores has been paid. We are committed to bring it down to 100 crores by end of this quarter quarter and the loans the shares that are pledged will can only be released after we pay the whole amount.
Unidentified Participant
So I would like to have a rebuttal over here. Now that you have the visibility of Q4 and you say Q4 will still be affected and Q1 onwards you will outpace. So does that mean we are at FY27 crossing 1000 crores of a revenue that was we did 980 of a revenue in FY27. Does can we safely project that FY27.
Unidentified Participant
Would be better than FY25? FY26 is a corner looking at Q2 and Q3. FY20.
Ashish Tomar
Yes, yes, yes. Yes. FY27 would be better than FY 25.
H.K Kansal
Correct.
Unidentified Participant
Okay, thank you. Thank you. That’s all.
operator
Thank you. The next question is from the line of Amit Agicha from HG Hava. Please go ahead.
Unidentified Participant
Yes, thank you for the opportunity.
operator
Yes sir. Please continue.
Unidentified Participant
Yes sir. Entering the text sheets and paper products. Hello. Yes sir. Can you please repeat the question? What is the long term strategic rational behind entering the flex?
H.K Kansal
Yeah sir, as we have already clarified this in previous calls also we took that factory from NCLT to put it as collateral with banks against our non funding bank guarantees etc as collateral. So that land came with an established factory and so we initially were not enthusiastic to run it. But since it was a running factory when we realized that it can give us a profit of about 5% in over revenue in that business also.
So that is an additional benefit to the company. It is self sufficient. It does not require any funding from the company. So we are letting it run. And if it maintains this profit or it improves then much better. But we would not invest any further money if it starts to decline. So that we would like to clarify can you brief us like what is the employee size and what is the output that is being generated there and what was the investment done? Yeah, so we purchased that land for about 60 crores and currently its market value would be almost 100% higher than that.
It is in near Kanpur, in a town called Fatehpur. About 120 bighars of land. The employee size and the production like I think so 25 crore is the revenue this quarter. Yes, employees I think are somewhere between 50 to 100 employees, mostly semi skilled in technicians. It might be possible in future but till now I think that plant is producing about 800 to 900 tons of output and it can reach an output of about 1100 plus tons in the coming financial year. I appreciate you answering your question.
Unidentified Participant
Thank you. All the best. Thank you.
operator
Thank you. The next question is from the line of ca. Garvit Goyal from Syrian Alpha. Please go ahead.
Unidentified Participant
Hi, thanks for the follow. In continuation with the earlier participant, I think she asked about the exit order book for this financial year and you said 40 to 50. I think the answer was not what she was expecting. So can you just clarify what, what is the expected order book that you are people are anticipating after execution of this quarter? Maybe the new order inflows that you are anticipating in next two months. So what will be the order book look like as on 31st March 2026?
H.K Kansal
That is, that is, you know we are having the order book of more than 2200 crore. 2200 crores. As of now we are expecting thousand crore but that could not be a date like the 31st of March because that could come in the first week of April, second week of April or something because you know, bidding process sometimes get litigated also. So we have bidded but we are expecting the order book to increase by up to 3,000 crore and the Q1 of the next financial year, that is for sure because we, we don’t want to give much optimistic guidelines type of thing that the 31st of March couldn’t be that, that date because sometimes you bid and there is some dispute and there is some dispute resolution boards where it goes and the final LOI or agreement is performed.
It may take four or five months altogether. So we are bidding. There are some bids under pipeline, some under technical evaluations and different stages. So in Q1 we will definitely have the order book of around 3000 crore because 2200 crore and in this quarter we can exhaust it by 200 crores almost. And of course we can have 3000 crore in Q1 of the next financial Year.
Unidentified Participant
All right. And secondly on the pledge part means. I maybe missed the earlier communication on that but can you please clarify what is the exact purpose of this pledge?
H.K Kansal
Yeah. So that money was used to invest in lands and properties. No.
Unidentified Participant
What kind of land and properties?
H.K Kansal
In individual capacity, not in terms of company.
Unidentified Participant
So that means the promoter is basically pledging the share to having its own land and properties in the personal capacity. That’s what you are saying?
H.K Kansal
Yeah. To start that is for a real estate business.
Unidentified Participant
Okay.
H.K Kansal
So. Yeah, what Sir.
Unidentified Participant
I’m trying to understand like why are we doing so what is the thinking process behind it? Because on a listed shares we are pledging it and buying the properties in the individual capacity.
Ashish Tomar
Yes sir. So the shares that are listed are also his own personal shares. And we have already reduced it by almost 31 third and it would be.
Unidentified Participant
Firstly you increase it then reduce it, right?
Ashish Tomar
Yes, yes.
Unidentified Participant
Still it is more than what we were having two quarters back, isn’t it?
Ashish Tomar
Yes sir.
Unidentified Participant
So I’m trying to understand what is the thought process like why when, when are we planning to reduce it to 0%? Like again earlier participant also mentioned about it. He said earlier we were speaking about FY26 and now we are speaking.
Ashish Tomar
We have already. Already we went up to 210 crores of money borrowed. We have reduced it to 140. We have repaid about 70 crores of the principal amount along with interest. And we are planning to reduce the principal amount to less than 100 crores by the end of this financial year and repay the whole amount in the next financial year. The shares that are pledged with can only be released after we repay the whole amount. Okay.
Unidentified Participant
Okay.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Ashish Tomar for closing comments. Over to you sir.
Ashish Tomar
So as I’m HK speaking CEO of the company. So as a closing comments, definitely we couldn’t meet the expectation in this quarter as a result and pat. But we can assure that we are on the right track and right path. We are aggressively bidding companies not in any financial distress or any type of distress. And we will definitely revamp it in this quarter and next quarter onward of the. You mean first quarter of the next fiscal. We will see high growth and everything will be perfectly matched. Actually we have also faced the same situation after the COVID and we fall.
In 20, 21 and 22. But we maintained the growth of 20% in 23 and we covered it up in the eight years span of the eight years span. So we are confident that in this year, if we are not able to match with the expectation, we will definitely be aggressive on next year. And next year we will do the COVID up of the whole things. Thank you so much.
operator
Thank you. Ladies and gentlemen, on behalf of EMS Limited, that concludes this conference. Thank you for your participation. You may now click on the exit mark button to disconnect. Thank you.
Ashish Tomar
Thank you.