Patel Engineering Limited (NSE: PATELENG) Q4 2026 Earnings Call dated May. 14, 2026
Corporate Participants:
Kavita Shirvaikar — Managing Director
Rahul Agarwal — Chief Financial Officer
Analysts:
Purvangi Jain — Analyst
Pritesh Chheda — Analyst
Ritesh Poladia — Analyst
Viraj Mahadevia — Analyst
Rajiv — Analyst
Vimal Kayal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The Patel Engineering Limited Q4 FYI 2026 earnings conference call hosted by Valorum Advisors. 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 we need assistance during this conference call, please signal an operator by pressing star and then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms.
Purvangi Jain from Valorum Advisors. Thank you. And over to you ma’. Am.
Purvangi Jain — Analyst
Thank you. Good evening everyone and a very warm welcome to you all. My name is Parvangi Jain from Ballarum Advisors. We represent the investor relations of Patel Engineering Ltd. On behalf of the company and Valerie Advisors. I would like to thank you all for participating in the company’s earnings conference call for the fourth quarter and financial year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today’s earnings call may be forward looking in nature.
Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated. Such statements are based on management’s belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward looking statements in making any investment decision. The purpose of today’s earnings call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review.
I would now like to introduce you to the management team. Joining us on today’s call, we have with us Mrs. Kavita Shirvaikar, Managing Director and Mr. Rahul Agarwal, Chief Financial Officer. Without any delay, I request Ms. Kavita to start with her opening remarks. Thank you. And over to you, Ma’. Am.
Kavita Shirvaikar — Managing Director
Thank you, Ma’. Am. Good evening everyone and thank you for joining us today for Patel Engineering’s Q4 and FY26 earnings call. I extend a warm welcome to all our stakeholders and analysts joining us here. We truly appreciate your continued trust, encouragement and support towards Petel Engineering. We have uploaded our investor presentation along with the financial results on the stock action. For your reference, I will begin by taking you through the key highlights for the year, the progress we have made across our projects and share our outlook on the infrastructure sector and growth opportunities ahead.
Following this, our CFO Mr. Rahul Agarwal will walk you through the financial performance in detail. FY26 has been another important year in Petel Engineering’s journey. Despite a competitive environment and industry wide challenges during the year due to geopolitical situations and other factors, we continue to focus on disciplined execution, selective bidding, balance sheet strengthening and building a high quality order book with projects where our exhibition expertise creates a competitive advantage.
Let me start with taking you through the key developments and the order inflows during the year. During FY26 we secured new orders worth around 4400 crores across hydropower, urban infrastructure, irrigation and other segments. This order wins further strengthen our execution visibility over the coming years and reinforce our position in complex infrastructure projects requiring strong engineering capabilities and large scale project management. Speaking about the orders secured during the year, the largest order secured was around Rs.
1300 crore Kondane dam project from SITCO in Maharashtra to improve the water supply in the region. The project involves construction of the dam along with hydromechanical and electrical work including radial gates and allied infrastructure. This project significantly strengthens our presence in Maharashtra and further enhances our positioning in the urban infrastructure segment which we believe will continue to witness strong investments over the coming years. In the hydropower segment we secured around 700 crore crore Heo Heo hydropower project from Lipco.
The scope includes civil and associated infrastructure work along with testing and commissioning of hydro mechanical Systems. For the 240 megawatt hydroelectric project we also secured around 900 crore project being one of the package of Renukaji Dam project from htpcl. The scope includes construction of major diversion tunnels, hydromechanical systems and associate infrastructure work which further reinforces our strong hydropower expertise. In Sikkim we secured the 240 crore Tista 5 power station project from NHPC involving tunnels, fieldway construction and associated infrastructure works.
In the irrigation segment we secured around 958 crore Dira Devdar right Bank Main Canal project from Maharashtra Krishna Valley Development Corporation. The project includes development of pipe distribution network. Our share in this project is rupees 192 crore. During the year we also secured two packages of 798 crore project which was for the coal mining contract In the Area of Madhya Pradesh where principal is Southeast Coalville Ltd. On the international front we secured Rs. 231 crore Torjili Hydroelectric Power project in Bhutan. The project includes construction of diversion tunnels, road tunnels in hydromechanical works. This project is strategically important for us because it further strengthens our international hydropower credentials and enables us to put our footprints in Bhutan where substantial hydropower development opportunities are expected in coming years.
Overall, our order inflows during the year have been well diversified across sectors and geographies and provide strong medium term revenue visibility for the company. With this as of March 31, 2026, our order book stands at Rupees 15,119 crore. The composition is hydropower 63%, 16% is irrigation, 5% tunneling, 10% from urban infrastructure and remaining 6% is roads and others. Further, we already started FY27 on a positive note by being declared L1 for another 1600 crore worth of order which gives us good momentum entering the new financial year and gives us confidence about future growth visibility.
The diversified order book positions us strongly across multiple infrastructure themes which are expected to drive India’s next phase of infrastructure growth. Apart from above, we have currently submitted tenders of around 6000 crores which are currently under evaluation. Further, we have identified and evaluated an immediate pipeline of around 20,000 crores which we plan to actively pursue over the next few months. Beyond this, there are another 40,000 crore worth of projects to come up for bidding in next one year.
Therefore, the opportunity pipeline which across sectors remains extremely strong. Now let me share some key operational highlights in project execution updates during the year. As guided earlier, revenue in FY26 has crossed 5000 crore and we achieved revenue of rupees 5103 crore. During the quarter we witnessed consistent progress across all our project sites and several important milestones for it. On the hydropower front, work at Subhansari Lower Hydroelectric project continues to progress well with the recent commissioning of Unit 4.
The project now has four operational units contributing 1000 megawatt of clean energy to the national grid. Work on the balance units is also progressing steadily. Civil work have been completed up to Unit six and execution remains on track across the remaining sections of the project. All eight units are expected to be operational in this financial year. Another major achievement during the quarter came from our CITCO treated water tunnel project. I am extremely proud to share that the project achieved a record tunneling progress of 812 meters in a single month during January 2026, setting up the national benchmark across TBM tunneling execution.
We also completed around 6.2km of tunneling and achieved a successful TBM breakthrough at the site in this quarter. Our projects in Jammu and Kashmir, particularly the Kiru and Quar Heb projects are also witness strong progress during the quarter with concreting activities Progress at full scale during FY26 across our major project sites we executed more than 13.5 lakh cubic meters of concreting works and completed reinforcement works of nearly 60,000 metric tons. Now let me briefly touch upon the industry outlook and opportunities ahead.
We remain highly optimistic about India’s infrastructure growth story. The Union Budget 2026-27 has further strengthened our confidence across sectors where we operate. The government has increased planned capital expenditures to record 12.2 lakh crore reaffirming its continued focus on infrastructure led economic growth. Indian Railways has received its highest ever allocation of 2.78 lakh crore. Importantly, the government has announced seven high speed rail corridors across the country. Many of these corridors pass through difficult terrains including the Western Ghats and Himalayan region which will require significant tunneling and underground engineering expertise.
This creates a very large long term opportunity pipeline for us considering our capabilities in underground and complex tunneling works. India is also witnessing rapid growth in metro infrastructure with the government continuing to invest heavily in urban transport across major cities. Large metro projects are under implementation or planned across cities like Bengaluru, Mumbai, Chennai, Pune, Hyderabad and Delhi. These projects are expected to create significant opportunities in tunneling, underground stations and associated urban infrastructure works over the coming years.
Similarly, the government is also focusing on rrts Regional Rapid Transit System projects which are being developed to improve connectivity between major cities and nearby regions. These projects are expected to generate substantial opportunities in transportation, tunneling and underground infrastructure now coming to Hydropower we continue to remain extremely positive on the hydropower opportunities both with India and internationally. Agencies such as nhpc, savnl NIPCO and NTPC together have a very large upcoming pipeline exceeding 30 gigawatt.
Some of the key projects expected to come up for bidding in near term include SavalCode projects of 1856 megawatt Kalai 2 of 1200 megawatt Kamla of 1720 megawatt. These projects are in advanced stage of clearance and would be out for bidding very shortly. Also projects like upper Karnali of 900 megawatt upper Subhantari 1600 megawatt Kirtai 2820 megawatt of 3000 megawatts to come up for bidding in the near future. In addition, pump storage projects are emerging as a major future opportunity. The Central Electricity Authority has outlined a roadmap targeting 100 gigawatt of pump storage capacity by 2035-36 which significantly expands the future opportunity size for companies operating in hydro infrastructure internally.
Internationally as well, countries like Nepal and Bhutan continue to offer substantial untapped hydropower potential. In the last quarter we have been awarded a package in the Dorjeeling project in Bhutan and have expected our presence in the region as well. In Nepal we continue to execute work at the Arun 3 hydropower project. During the first quarter of FY27 we have been declared lowest bidder L1 for the lower Arun project value at approximately 1600 crore. This project is very close to our existing Arun 3 project site giving us strong logistical and execution advantage.
Collectively, Nepal and Bhutan have an untapped hydropower potential exceeding 70,000 megawatts and we will continue to actively evaluate opportunities in these markets. Now, on the water infrastructure side, the opportunity landscape remains highly attractive. The government’s National River Linking Program has now moved into active implementation phase. The Ken Betwar River Linking project which is the first 30 identified inter basin links major river linking project has already commenced execution while DPR for several more linking projects are in advanced stages.
Simultaneously, Maharashtra’s planned irrigation investments and enhanced allocation under the Jal Jeevan mission are expected to create significant opportunities for our irrigation and tunneling business over the medium term. Now let me briefly update you on the balance sheet and asset monetization. It which was concluded during the year in line with our strategy of monetizing approximately of around 150 crore of non crore assets annually. During FY26 we successfully completed monetization of certain non crore assets and realized approximately rupees 185 crore.
This included around 135 crore from land sale and around 50 crore through arbitration awards under NTIO. We also successfully completed our REIT issue during the year. The inflows from the REITs have been significantly strengthened. Our balance sheet supported working capital requirements for ongoing projects and enabled significant debt reduction of around 450 crores during the year. With a stronger balance sheet and improved liquidity position today, we are well positioned to scale up execution across newly secured and upcoming projects while maintaining financial discipline.
To conclude, Patel Engineering enters FY27 with a strong order book, improving execution momentum, a healthier balance sheet and a very large opportunity pipeline across sectors. We remain committed to sustainable growth, disciplined building and operational excellence. With the recent order inflows and further order opportunities expected during FY27, we expect revenue growth momentum to strengthen meaningfully from the second half of FY27 onwards. Considering our current order book and strong future pipeline, we expect FY27 revenue to grow by 10%.
With that I will now hand over the call to our CFO Mr. Rahul Agarwal who will take you through the financial performance in greater detail. Thank you.
Rahul Agarwal — Chief Financial Officer
Thank you Kavitha. Good evening everyone and welcome to the earnings call. I’ll now take you through the company’s financial performance for Q4 and full year FY26 for Q4 on a consolidated basis our revenue is at 1421 crores, operating EBITDA is 215 crores with a margin of 15.14%. Profit after tax it is at 71.5 crore compared to 32.8 crore in Q4 FY25 on a standalone basis revenue is 1413 crore, operating EBITDA is 210 crores with a margin of 14.89% and profit after tax is 96.9 crores compared to 36.61 crore in FY25.
Q4 coming to financial performance for full year, revenue from operations is at 5102 crore as compared to 5093 crore in FY25. Operating EBITDA is 684 crores with a margin of 13.41% and profit after tax is 294 crores as compared to 242 crores in the previous year which is up by 21%. On a standalone basis revenue is 5066 crores as compared to 5007 crores in FY25. Operating EBITda stands at 659 crores with a margin of 13%. Profit after taxes 319 crores compared to 259 crores in FY25. Sector wise revenue breakup is hydropower 55%, irrigation 23%, tunneling 17%, roads, urban infra and others 5%.
Now coming to debt and working capital. The consolidated gross Debt as of 3-31-26 is 1187 crores compared to 1,645 crores at the end of FY25. Hence the debt numbers have come down significantly by 458 crores as compared to the previous year, majority of which has reduced in the last quarter due to right issue. Planned Advances as of 3-31-26 is 622crores compared to 665crores at the end of FY25. Debt to equity ratio has improved to 0.27 as compared to 0.43 as of March 25th. Breakdown of debt out of the debt 847crores is working capital and 340crores is term debt which includes OCD, NCDs and the project specific debt.
The working capital, the net working capital days is around 120 days and the net adjusted working capital is 106 days. Now coming to the exceptional items during the quarter. During the quarter we have provided for impairment of investments made in Hydro subsidiaries of approximately 56 crores. Considering the feasibility of revival in the near future and in the quarter we have already signed the MoU which is for Gongri project. Further, as part of our non core asset monetization strategy we have decided to sell our investments in a toll road project ACB tollways where we have 32% stake.
We have received an offer of rupees 55 crore for the same and hence provided for 30 crores being the difference between book value of investment and which was made in 2011-12. Considering that any equity return from the SPV shall be possible only after repayment of the debt in the SPV in NPV terms this expected realization is considered reasonable. Above monetization will be towards our target monetization for 150200 crores during the year from non core assets. That concludes the financial overview.
We are now happy to take any questions which you have.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and then one on their touchstone phone. 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 will wait for a moment while the question queue assembles again. To Register please press Star and then 1. Your first question comes from Pritesh Cheddar from Lucky.
Please go ahead.
Pritesh Chheda
Sir. What was the market share that you had in the hydropower order wins that you have which is 4400 minus 800 so about thousand six hundred crores of inflows. So what was the market share?
Rahul Agarwal
So if you talk about the success ratio last year we if we exclude one large project of you know debank almost 1617,000 crores then it is around 2530%. And if you include that it is coming to around 12 13%.
Pritesh Chheda
So if it is 12% so which means closer to about 30,000 crore of inflows were given and maybe that one large project was 16,000. So with that project we lost the bid. And why did we lose the bid?
Rahul Agarwal
So there was very competitive bidding done. So we somebody took it at a very low value. So we we didn’t get it.
Pritesh Chheda
Okay. Is it a new player or is it an old player?
Rahul Agarwal
A new player.
Pritesh Chheda
Okay. The other thing is on the. Why have we taken this whole mining works? Is this first time that I’m seeing you taking a MD of project.
Rahul Agarwal
So we are trying to explore new opportunities and we got this project.
Pritesh Chheda
Okay.
Rahul Agarwal
And this is a small project actually seven, eight years.
Pritesh Chheda
It’s executable over eight years.
Rahul Agarwal
Yeah. Yeah.
Pritesh Chheda
Okay. And my last question is what kind of. Or what kind of inflows are expected this year? What kind of water finalizations expected this year? And you had given revenue guidance last year about not growing which happened the same. How do you see FY27 standing out?
Kavita Shirvaikar
FY27 we expect around 10% growth in the revenue.
Pritesh Chheda
And on the order side.
Kavita Shirvaikar
Order side. See this year is a good beginning. We are already L1 in 1600 crore worth of job. So we expect around 8000 crore new order book during the year.
Pritesh Chheda
Okay, thank you.
Operator
Thank you. The next question comes from the line of Ritesh Polaria with Gary Capital. Please go ahead.
Ritesh Poladia
Yeah, we just wanted to know about your exceptional items. There is a debt and advance return of 100. Last year it was 270. 280 crores. So is there anything remaining to be written off or this is end of it?
Rahul Agarwal
No, this is. There’s nothing remaining to be written off. So last year we had done Vivasa Vishwa settlements around 150 crores. Vivasa Vishwa settlements was done for that. That exceptional item was there this year, this quarter. I’ve already explained because while two investment, one is for hydro subsidiary where we have revived one project and the other project we are thinking that you know it will take time. So we have written off that. And one is for the toll road project where we have got an offer from the.
For 55 crore and investment was around 85. So we have provided that and in the previous quarter we have some settlements for a litigation and also that provision was done. So there is nothing remaining.
Ritesh Poladia
Okay. And also there is some excess credit return back of 100 crore. So is there anything on that part still pending or even that is over?
Rahul Agarwal
No, no, everything is over. There is not. Not much excess credit written back of 100 crore this quarter. Where. I don’t know from where you’re getting it but it’s on cash flow
Ritesh Poladia
Statement. There’s a third last statement in the.
Rahul Agarwal
Right, right. So that. See basically what happens is the project will get concluded during the year. So from that project whatever balances are there, you know receivable, payable that we have to write back and write off.
Ritesh Poladia
So where will be the corresponding entry for this?
Rahul Agarwal
That will be mostly other income.
Ritesh Poladia
Okay. Ma’ am said that expected order win is of 8,000 crore. If you can give some more ideas of what all the projects you are targeting.
Kavita Shirvaikar
So as we say 6,000 crore projects were already submitted which is under evaluation. Another 20,000 crore we have identified which includes Metro, which includes hydro and irrigation projects where we are going to bid in near future. Another 40,000 crores which will come up for bidding in next one year. So more or less it will remain in the sector where we operate in next year.
Ritesh Poladia
Okay, that’s it from my side. Thank you.
Operator
Thank you. The next question comes from the line of Viraj Mahadevia with Moneygrow. Please go ahead.
Viraj Mahadevia
Hi. Congratulations to the team on the stable results and particularly the high free cash flow generation. I want to understand, you know Rahul, what is driving this high free cash of 450 crores in FY26 and is that likely to continue going forward?
Rahul Agarwal
Free cash flow we have come, it is combination of what we have got from projects and non core assets monetization. So we expect that
Viraj Mahadevia
That should continue. And in that case given the high cash flow generation, the debt pay down both from organic cash as well as the rights issue which I’m not sure if all the cash has already been used to pay off the term loans. Can you guide us towards an interest cost for the next financial year?
Rahul Agarwal
The interest cost for the next financial year overall may not, you know change drastically because so whatever it borrowing has been reduced this year, new project, whatever we expect there will be some advances taken for that. So some interest will come for that. But what we expect is the interest cost will not go up drastically from here. It will remain around that region.
Viraj Mahadevia
But presumably you will also repay some principal right of the term loans. So that should come down.
Rahul Agarwal
That will come down. So if we take new projects of around 8,000, around 8 to 10% advances may come for equipment and for, you know, mobilization
Viraj Mahadevia
7800
Rahul Agarwal
Crore advances will come and there will be repayments also. So overall we don’t see, you know, the interest cost going up.
Viraj Mahadevia
Okay. And in terms of non core monetizations you’ve highlighted that you monetized 185 crores this year and arbitration money was how much in FDA FY26. And can you guide us towards those two numbers? For 27,
Rahul Agarwal
27 we again consider around 150, 200 crores will come from non core assets. All combined we can’t split it right now between what will come from awards or what will come from other non cores. But this is our target is there that between you know all land bank on investments and arbitration awards we should get between 1 to to 200 cash.
Viraj Mahadevia
So the 185 in 26 was land bank plus arbitration.
Rahul Agarwal
Yes. So 50 crores was for arbitration which we got against DG31. 35 crores was for land bank.
Viraj Mahadevia
Understood. So you’re guiding towards a similar number for next year between the two.
Rahul Agarwal
Correct.
Viraj Mahadevia
And that will be prioritized to repay term loan I’m assuming.
Rahul Agarwal
Correct. Correct. So we have this year also rights issue. We have prioritized for term loan. So there was ocd, there was IRR on OCD also that is also repaid. So it has primarily gone
Viraj Mahadevia
Any other OCD is outstanding in future years
Rahul Agarwal
Balance OCD outstanding is around 10010020 crore
Viraj Mahadevia
In which year.
Rahul Agarwal
So that will be. We will be repaying in some in FY27, some in FY28 earlier depending upon when the realization happens. Okay. So
Viraj Mahadevia
By 28 all should be repaid. Okay. Sorry, just last question. Two orders I believe are coming up in Arunachal of 20,000 crores. Can you comment on that in terms of likely timelines of bidding, likely timelines of awards etc.
Kavita Shirvaikar
Arunachal Kamla. I said like lower Subansari Kamla. The next six months it is going to come up for bidding.
Viraj Mahadevia
Okay. Okay. Thank you ma’. Am. All the best.
Kavita Shirvaikar
Thank you.
Operator
Thank you. Before we take the next question, a reminder to all the participants. You may press star and then one to ask a question. The next question comes from the line of Rajiv, an individual investor. Please go ahead.
Rajiv
Yeah. Thank you for the opportunity. My question was regarding the promoter pledge. So I think over the last one one and a half year the management has been commenting that the promoter pledge will come down after March. So can we have an update on that please?
Rahul Agarwal
So now post match results. We will be contacting the lenders and then we’ll update you.
Rajiv
But that you have said earlier. So by when can that come down and by what percentage could you give a timeline to that?
Kavita Shirvaikar
So at present will not be able to give you the exact timeline. But our endeavor is to reduce gradually
Rajiv
That Ma’, am, you have been saying for the last two years. But you know we need a timeline. Okay. By six months this much pledge will reduce up. After one year so much will reduce. We need a guidance.
Rahul Agarwal
Yeah, so the guidance wise I’m saying that you know post this March result as we had said we will approach the lenders and maybe next quarter we can get an update as to how much we can be reducing this year.
Rajiv
Has the promoter any percentage in mind? Okay, I’m going to reduce my this much.
Rahul Agarwal
So see the target is that you know we reduce it by around 15, 20%. But let’s see and we’ll come back to you.
Rajiv
Okay. And my next question was regarding that. A real estate project, Patels Modo in Hyderabad. So I believe the OC was pending and 372 flats were made. I think there were three towers, two were residential and one was a hotel. So can we have an update? How much when will we get the O.C. Number one? Number two, how many flags have been sold? And what about the third tower which was proposed to be a hotel? Can we an update?
Rahul Agarwal
I think we have applied for the oc. There’s some. Something was pending, some litigation or something was there. So we have to. We are expecting that to get sorted this financial year and we should get that OC this year
Rajiv
And. Sorry to interrupt. Rajiv
Operator
Sir, may we request you return to the queue for follow up questions. Thank you. The next question comes from the line of an individual investor. Please go ahead.
Vimal Kayal
Hello. Thank you for the opportunity. My first question is if you look at the interest cost it’s 79 crore this quarter. So it’s. And the rate of interest seems to be very high at 18%. Can you help me understand what it is due to? Maybe it’s due to the earlier restructuring. So can you give some color on what the terms are and when can we expect this to go down?
Rahul Agarwal
Their interest rates are around 11, 11 and a half percent. So see that interest cost comes with basically the finance cost considers of three components. Okay. One is the interest on the borrower. The second is the interest on the client advances. So there we have around 600 odd crores of client advances. So that also carries interest of similar nature. Plus we have non fund based limits which is bank guarantees, LC’s etc. Which we have to give to the client for advances and for procurement of material.
So that also carries the cost. So on an annual basis I can give you that broad breakup like around 70 odd crores is for the non fund based limits. Then around balance what is remaining? If you add up the debt and the client advances average interest rates will come between 11 to 12.
Vimal Kayal
Okay. Yeah. Thanks for explaining this. So my second question is we have sold our ACP tollways stake for 55 crores. And that announcement mentioned that it contributed 18 crores of profit annual. So it seems like only three times the profit. So can you please explain what what is how this valuation was there and maybe that process. Yeah,
Rahul Agarwal
So I’ll tell you see the net worth if you see of the company. Okay. It is around 38 crore only. That is up as of March 25 because. March 26, because you already got an offer. So we have not consolidated it and it is held for sale. So 38 crores was the network and the carrying value of the investment as of March 26th in our books is now 26 crores only. So 18 crores was the profit in March 25th. And that company, although profit, what is there, there is a still a borrowing remaining of around 600 crores.
And 200 crores is approximately the major maintenance which has to be incurred. So this next few years collection will go into repayment and the incurring of the major maintenance. So once that is completed, when only some equity return can happen. So we can see only equity return after only four or five years. So it is better that you know, we sell the investment and we get the money and reduce our debt.
Vimal Kayal
Okay. Yeah, thanks for explaining that. Also one more question. Our Subhansary project, if we complete this year, will we get substantial cash flow from that and will that help our debt reduction further
Kavita Shirvaikar
For us? We are the contractor and we are getting paid monthly as and when we do the work. So it is not a substantial for us. It is a contract. NHPC is developing this project and they are going to get a larger chunk of revenue after commissioning.
Vimal Kayal
Okay, thanks. That’s all from my side. Thank you for that.
Operator
Thank you. Participants, if you wish to register for a question, please press star and one. Now. The next follow up question comes from the line of Rajiv, an individual investor. Please go.
Rajiv
Yes, sorry, the moderator cut me in between so that my question, my answer was incomplete. That Patel’s model, how many flats have been sold in the two towers? And what about the third tower? You’re going to make a hotel on that or what? Can you please explain in detail please
Rahul Agarwal
The number of flats sold? Details I don’t have right now but that there was two residential towers in there and there was one service apartment.
Rajiv
Okay, so what is regarding the service apartments? It’s lying vacant or what’s happening on the tower? Is it complete? What’s happening?
Rahul Agarwal
Yeah, it is completed from outside everything. Now the service apartment operator has to start it.
Rajiv
Okay, so what kind of revenue can it generate and from when does it Happen.
Rahul Agarwal
See, we don’t have any idea about when the revenue starts. Because that is the service operator window.
Rajiv
And you don’t know how many flats have been sold in the 2000s. I think there were 372 flat.
Rahul Agarwal
Right now I don’t have those details.
Rajiv
Okay. And then my next question was regarding the arbitration award. So sir, I am saying we are getting only 50, about 50 crores per year. And 700 crores are in our favor. So can we expect we get only 50 crores every year for the next 4, 5, 10 years. When can we get by? When this major chunk of the 700 crores come to us.
Rahul Agarwal
See, out of the 700 crores more than 400 crores is in High court right now. And balance is in this. So it can take some time. High court generally takes one or two years and then supreme court maybe one year. So but what happens is something or the other out of that either against NITI IO bank guarantee or code deposit of bank guarantee we try to withdraw that cash flow and then that’s how we get. So overall expected timeline of this will be around five to six years overall. Okay, but it’s not that everything comes after that.
Rajiv
Got it. And what about the balance 2300 crores. Any update on that?
Rahul Agarwal
The balance 2300 crores. There are multiple arbitrations going on. So what we expect is we get. We get some arbitration awards and then post arbitration award if we are able to draw the money against bank guarantee then it comes earlier. If it has to be realized from then post overall it may take five to six to seven years.
Rajiv
Okay, my next question was regarding the promoter stage. You know the promoter stake has fallen from 39% in June 23 to now 31.48%. And the promoter has not participated in the rights issue also. So I mean if the promoter didn’t want to participate in the rights issue, you know why then why do a rights issue? Why didn’t you sell the remaining land back to raise funds? Please clarify.
Rahul Agarwal
There has to be a timing requirement, right? So rights issue was done because we needed money for the operations and the future projects which are coming immediately. Land bank sale, I mean we cannot timeline timing wise we cannot ensure that it happens immediately. It takes a little bit of time. We have been doing that every year. Like this year also we sold some land parcels current again this year we are expecting some land parcels to be sold. But we can’t expect that. Okay. This quarter we need the money and it will come this quarter from landscape.
Rajiv
But to me it seemed very absurd that the promoter is not participating participating in the rights issue and the public. You want the public to subscribe to your rights issue.
Rahul Agarwal
The promoters have subscribed around 20 crores partly. And rest was taken by public.
Rajiv
But they should have subscribed to the full full quota. That’s my question.
Rahul Agarwal
But they had already mentioned in the document that they will subscribe partly only.
Rajiv
Okay. And my last question. This. Whatever the balance land sale is there your by when this whole the entire land bank be sold. In the next three, four years.
Rahul Agarwal
Yeah, for four or five years which should happen. So we have targeted few land parcels to be sold first. That will happen in the next couple of years. And rest will take some time. So around four, five years.
Rajiv
Thank you.
Operator
As there are no further questions from the participants. I now hand the conference over to the management for closing comments.
Rahul Agarwal
Thank you all for joining this call. If any questions you have, you can write to us and we can revert to you. Either you can write to us or you can write to Valorant. Thank you.
Operator
Thank you ladies and gentlemen. On behalf of Patel Engineering limited. That concludes this conference. Thank you everyone for joining us. And you may now disconnect your line.