Ahluwalia Contracts Limited (NSE: AHLUCONT) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Shobhit Uppal — Deputy Managing Director
Satbeer Singh — Chief Financial Officer
Analysts:
Unidentified Participant
Sudeep Bora — Analyst
Vaibhav Shah — Analyst
Lakshminarayanan — Analyst
Parvez Qazi — Analyst
Mahesh Patil — Analyst
Shravan Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Aluvalaya Contracts India Limited Q3FY26 earnings conference call hosted by Ambed Capital Private 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 100 on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mrs. Sudeep Pora. Thank you. And over to you sir.
Sudeep Bora — Analyst
Good afternoon everyone. On behalf of Amber Capital, I thank the management of Aluwalia Contracts India Limited for the opportunity to host Q3FY26 earnings conference to discuss the results. I am pleased to welcome Mr. Shaubat Uppal, Deputy Managing Director Srikanth Aluwalia Director Mr. S.A.G.B Singh, Chief Financial Head Officer. Now I move key highlights of the quarter post which we’ll open up. Thank you and over to you.
Shobhit Uppal — Deputy Managing Director
Hi. Good afternoon. Good evening everybody. Aluwaliya contract India Limited has announced its financial results for Q3FY26. During Q3FY26, the company has achieved a turnover of 1060.72 crores and a PAT of 54.02 crores in comparison to a turnover of 951.96 crores and a PAT of 49.39 crores. During Q3FY25, the company has registered a growth of 11.43% in turnover and a 9.38% growth in patients. During Q3FY26 as in comparison to the corresponding quarter FY25, EPS of the company for Q3FY26 is 8.06 compared to 7.37 in the corresponding quarter FY25. During Q3FY26, the company’s EBITDA margin is 9.05% as compared to 8.86% in Q3FY25 and PAT margin is 5.02% as compared to the PAT margin of 5.11% in Q3FY25 during the period of nine months FY26 is the company.
The company has received a turnover of 3242.90 crores and a PAT of 184.18 crore in comparison to a turnover of Rupees 2882.79 crores and a PAT of 118.35 crores during the corresponding nine months of the last financial year. FY25 EPS of the company for the period of nine months FY26 Is 27.49 as compared to EPS of Rupees 17.67 during the period of nine months FY25 during the period of nine months Fy26. The company’s EBITDA margin Is 9.59% as compared to 7.57%. PAT margin of 5.60% as compared to 4.05% in the period of nine months FY25 net order book of the company as on 31st December 2025 is Rupees 1-867950 crores.
To be executed in the next two and a half to three years. Total order inflow in FY26 year to date is 9562 crore. Thank you. We are open to take questions now.
Questions and Answers:
operator
Thank you very much. We’ll begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the 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 will wait for a moment while the question queue assembles. The first question is from the line of Vaibam Shah from JM Financial. Please go ahead.
Vaibhav Shah
Yeah, so firstly given the margins and the execution in nine months. So how do you see the annual revenue for FY25 for FY26 targeting around 15 to 20% kind of growth?
Shobhit Uppal
No, more like anywhere between 10 to 15%. You know margin projection is what I had given last time. It will be double digit. But you know December, January have been impacted by NGT and project closures in Delhi. And as nearly 44% of order book comes from Delhi that’s impacted the top line a bit. And you know we are expecting slight disruption in March also this time because Holi is earlier this time. So yeah, anywhere between 10 to 15%.
Vaibhav Shah
Top line for next year.
Shobhit Uppal
Next year it will be 15 to 20%.
Vaibhav Shah
Okay, so given the very strong order book and you mentioned that the orders are to be exited in up to three odd years. So can the growth be even higher? Are we being conservative for 27?
Shobhit Uppal
Vaibhav, you ask me this every time. We are being slightly conservative. The order book is. It was healthy last time around. It’s healthier now. You know we’ve given a projection about 8,000 crores worth of order book in this. Inflow fresh order inflow. In this year we’ve crossed that. It’s at about 9,500 crores. So. So yeah, we’re being conservative when we are saying 15 to 20%.
Vaibhav Shah
Okay. Secondly on a few key projects. So when do we expect to start the work on Davidson Jersey Park?
Shobhit Uppal
We will start it in Q1FY27. I mentioned last time around. Also in April I said we’ll start the drawings. Approvals are coming in now and the client is in the process of handing over part of the site to us. There was an overburden of earth which was to be removed by the client. They have already done that substantially and 30 to 40% of the area they are in the process of handing over to us which should happen in the next month and we should start the work.
Vaibhav Shah
Any target that we look forward to this project in FY27 in terms of.
Shobhit Uppal
Revenue, Definitely German Jewelry Park. Definitely. We are, as I said Q1FY27. The work will start. Actual billing will start.
Vaibhav Shah
Can you do this 30, 35 kind of existence which you are targeting earlier for 27?
Shobhit Uppal
Sorry, come again. 30, 35. What? Sorry,
Vaibhav Shah
FY27.
Shobhit Uppal
Yeah.
Vaibhav Shah
What kind of revenue are we targeting from this widget?
Shobhit Uppal
Of the total value of the project, I think it would be to the tune of about 20%. 20 to 25%.
Vaibhav Shah
Okay. So secondly, on CSMT we have seen some weakness in execution in Q3 compared to the quarterly run rate of last 4 quarters. So how do you say for entire year and for next year?
Shobhit Uppal
I think totally. We had projected that we will execute in this financial year. We would be executing anywhere between 300 and 350 crores worth of work on CSMP and we are confident we will be doing that work. Progress is picked up there and so we should be meeting that target. As far as the next financial year goes, we should be doing a work of about 700 crores.
Vaibhav Shah
Okay sir. Lastly one data point. So an order info number is 9562 crores. So of this what would be the value X of GST. Value?
Shobhit Uppal
Yeah.
Vaibhav Shah
Okay. Okay.
operator
Thank you. The next question is from the line of Lakshmi Narayan from Tonga Investment. Please go ahead.
Lakshminarayanan
Hello.
Shobhit Uppal
Yes sir.
Lakshminarayanan
Hello.
Shobhit Uppal
Yes, please go ahead.
Lakshminarayanan
When we had a call in, in the third week of November, we were confident of growth of around 15 to 20%. And did you anticipate that this would actually get toned down to 10 to 15% or what actually happened in the last, you know, five to six weeks of Q3? That is my first question. The Second question is that, you know, one of our key accounts, Signature Global, they called out some bit of slowness in the. In their projects, particularly the sector 37B server. I don’t know whether we are working on the dlx.
Shobhit Uppal
We are, we are working. Yes, we are working on DXP Deluxe, Signature 37D, not the new one. New one is the name that you took. We are not working on that.
Lakshminarayanan
Okay, okay. And also I think what they.
Shobhit Uppal
Sorry, sorry to interject, but this is. What was the name that you said?
Lakshminarayanan
Yeah, they talked about the project Sarvam, which was launched in December 2025.
Shobhit Uppal
Yeah, they are talking about the slowness in sales there. I don’t think so that’s why we are not associated with that job, nor have we bid for that job.
Lakshminarayanan
And also the larger question, because we have, you know, DLF is also a large important client and what is your sense of the entire market? I think last time also you said that we are somehow reinvented ourselves from any particular slowdown or any particular cash issues with any of the developers. Can you just elaborate a bit more on that? So These are my two questions. One is that what happened between November 17 to December end, which led to seemingly underwhelming guidance that somewhere you started, is there something that really happened? And then the second, in terms of the Gulpam stuff.
Shobhit Uppal
Yeah. So first question, you know, as I mentioned to Weber in response to the question that he asked, the NGT impact this year has. Has been more prolonged, so to say, since 44% of our order book is from NPR. You know, December and January have been impacted. Even the first week of February was impacted as far as the project closure on account of pollution was concerned. And you know, beside March, the Holy Festival is in the first week of March. So generally what we’ve seen in the past is that three or four days before the festival, the labor force starts going back to their hometown and then it takes about a week for them to come back.
So, you know, March is also going to be impacted. That’s why we have reduced our projection by 2, 3, 4 percentage points. As far as the top line is concerned as regards ring fencing or our exposure to the slowdown as far as sales of residential buildings or projects is concerned. I had mentioned last time around that we have now slowed down as far as bidding for further residential projects is concerned. We feel that out of our total bouquet projects, residential is quite a bit. So we are now focusing on institutional projects or airports or hotels or commercial projects.
Residential is not a focus area for Us, especially in ncr. Having said that, the projects that we are working on, be it with dlf, as you mentioned, we have not seen any sort of issues with payments. DLF being obviously the premier development company in the country, even with the likes of Smart World or Emaar. You know, all the projects that we are executing were launched more than two years ago. Rera, you know, being in place, I don’t see we’ve not felt any financial issues with all the clients that we are working for on these residential projects in anti.
Lakshminarayanan
So just to understand. So the RERA ensures that the cash flows are restricted to that project and it is not actually taken out for any other.
Shobhit Uppal
Yes, yes. In fact, it also puts pressure on the developer to sort of ensure that the projects are delivered in time. So we continue to face those pressures from developers to execute faster and build faster. And as I said, we’ve not faced any cash flow issues from these developers.
Lakshminarayanan
Just on the NPT thing, this seems to be a recurring phenomenon every year, right? So if that is the case, is it that how do we build in our growth expectations internally? I mean, how do you realign yourself? Because this is happening maybe competitively for the second or maybe third year also. I mean we have 44, 45% in Sierra region and that’s something we should use there for the next two, three years also. So is it fair to assume that that’s something which is a given and you know, is there any way in which you can address this? So you’re right.
Shobhit Uppal
It’s pretty much become a part of the annual calendar, especially the third quarter of the financial year. But having said that, because it’s become a part now, all the constituents of the ecosystem have become alive to it and we are all constructively brainstorming as to how to mitigate the impact of this, how to sort of sensitize the powers that be, be it the courts or the government, be it the state government or the central government, the impact that this is having on the livelihoods of the workers involved with our industry. And we are reasonably hopeful that in the coming years this impact is going to be mitigated with the measures that we are taking on the projects to ensure that we are not contributing as much to pollution as the popular notion is, we are sensitizing the governments to this fact also.
And you know, the most important point is all of us, be it the developer or be it the contractor or be it the bureaucracy, we seem to be getting aligned on this point. So we are hoping that, you know, in the coming year or years the disruptions are not going to be as much as they have been the last two, three years. And this year has been a little. More peculiar in the sense that you know, right from the festive season onwards the disruption started. So the. And now Holi as I said is also earlier. So this impact starting from Diwali from October till January, January end has impacted our top line performance.
Lakshminarayanan
Just one more question. Sometime back, maybe a year back, some of the three quarters back you mentioned that there is non availability of workers and especially post elections, you couldn’t get assembled etc. Now I mean how have you taken, I mean as any steps have been taken by the industry or by yourself so that we have, we will have some up elections coming next year and so on and so forth. So how do you ensure that the labor availability at the right time, at the right amount is actually taken care of or it’s still. That’s a lurking issue that you’re right.
Shobhit Uppal
So it’s actually a full blown issue. It’s not a lurking issue. But again the slight advantage of this becoming such a large issue is that again all of us are aware of this fact now it’s not in the days gone by it was only the contractor who used to grapple with this issue. Now everybody is aware, more importantly the clients are aware of this, the governments are aware of this. And so what is happening is that this is leading to greater standardization wherein you know, we can do a lot of work off site, use more mechanization to reduce the impact on or reduce the dependency on labor and then training is also something that we started but that’s in a very nascent stage.
Have I answered your question or. Hello?
Lakshminarayanan
Yeah, thank you so much. You have answered my question.
Shobhit Uppal
Yeah, thank you. Thank you so much.
operator
Thank you. The next question is from the line of Parve Kazi from Nuvama. Please go ahead.
Parvez Qazi
Hi, good afternoon sir and thanks for.
Shobhit Uppal
Hi Parvez. Hi.
Parvez Qazi
Hi. So first, I mean on this NGT issue, assuming let’s say if it had not been there, what kind of execution would we have done in Q3?
Shobhit Uppal
What kind of execution we would have stayed on course for a 15 plus percent growth in our top line.
Parvez Qazi
Sure. Secondly, on, I mean on the payment etc, how do you see things now especially from the government department in some of the other segments of intra, we have seen slowdown in payments in FY26. So how is the situation in your government funded projects?
Shobhit Uppal
A lot of our or most of our government projects are central government projects. We are not really seeing much of a problem there other than in the odd project here and there. Like we’re doing a central university project in the state of Himachal Pradesh which is partly funded by the state and partly by the center. So there we are facing some challenges. That project is nearing completion. We are hoping to complete it in Q1 of FY27. So there is a bit of a challenge there. We completed another hospital for the center and state government in again Himachal.
The final payment, sorry there has been stuck for a while. So yeah, with the state of Himachal there is a bit of an issue and we are also seeing some issues with the state of Assam. I think that’s also due to the fact that the machinery there has slowed down a bit on account of the impending elections. Otherwise we don’t. We haven’t seen all our other slow moving projects be it for the state of Bihar or other states. They are. Okay. Now we’ve got our payments.
Parvez Qazi
Sure. And couple of data points that I needed from Sadeep. What is our current gross debt level? I mean gross borrowings.
Satbeer Singh
Which is 22 crores approximately.
Parvez Qazi
What would be the cash level that we have currently?
Satbeer Singh
Hold for a moment. The cash balance is 253 crores and bank balance is 587 crores.
Parvez Qazi
What is the capex that we have done In Q?
Satbeer Singh
In nine months we have incurred around 193 crores.
Parvez Qazi
Okay. And apart from this order book Are we L1 in any other project?
Satbeer Singh
Yes, we are L1 in four projects. This is amounting to rupees 2485 crores approximately.
Parvez Qazi
Sure. Last question. And what is the status on the Chandigarh station redevelopment project? Has worked pickup picked up there or. And what is the status now?
Shobhit Uppal
So Chandigarh station is nearing completion. We are targeting to complete it in Q1FY25. The two stations Panchkula and Chandigarh have already been completed and we have offered the client to take them over. And platform work is also substantially underway. And as I said somewhere by May we should be completing it.
Parvez Qazi
Sure sir. Thanks. And all the best.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is from the line of Mahesh Patil from ICICI Securities. Please go ahead.
Mahesh Patil
First question is on the DLF project. I think last time we guided for more than 100cr of revenue in this fiscal and around three to three and a half billion next year. So are we on track for that this year?
Shobhit Uppal
No, this year it will be about 40% of that because you know new earthquake codes were put in place and DLF has redesigned or is in the process of redesigning or doing the structural design again. So that is why, you know, a lot of work had to be redone obviously at the client’s cost. So that is why our target is going to be. Our turnover is going to be lesser by March end. But we should be post holy. We should be. We should be in a position to take up the work in real ordinance. The designs are coming in as we speak.
Mahesh Patil
What is the estimate for FY27 on.
Shobhit Uppal
This project from Dalia’s for the next financial year? It remains what we had said last year.
Mahesh Patil
Okay. Okay. And for this right. Coalition issue, Right. Are we facing any challenges in the current month as well or. Because I think.
Shobhit Uppal
You’Re not very clearly audible. Repeat that please.
Mahesh Patil
Sir, I was asking in the last. Con call in November we highlighted that till that date we were around 11% of margins. So apart from this grab issue, anything else that impacted our revenue and margin this quarter?
Shobhit Uppal
Primarily it was. Primarily it was graph only as I said, you see. Hello, come again. Yeah.
Mahesh Patil
And so was there any impact of. This issue in the base quarter last year? Q3.
Shobhit Uppal
The impact of graph you’re talking about.
Mahesh Patil
Correct.
Shobhit Uppal
In the last year it was there definitely. But it was lesser since our exposure now has increased to the NCR market.
Mahesh Patil
Okay, so you mentioned around 40% of.
Shobhit Uppal
The order book is more than 40% is now from NCR.
Mahesh Patil
Okay. And for next year, if I may. Ask, what could be our, you know, revenue estimate from this NCR region for FY27? Any ballpark number?
Shobhit Uppal
We are in the process. It should be about 40%.
Mahesh Patil
40% of revenue strength. Okay. Okay. Thank you.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is from the line of Shravan Shah from Dollar Capital. Please go ahead.
Shravan Shah
Hi. Thank you sir. Couple of questions and clarifications. So in the fourth quarter, how much are we, are we looking to do do kind of a revenue 1400 or crore kind of a revenue that we are looking at in this fourth quarter.
Satbeer Singh
It would be 10 to 15%.
Shobhit Uppal
Yeah. About 1400 crores. Yes.
Shravan Shah
Okay. And next full year then we should be doing 20 to 25%.
Shobhit Uppal
I said 15 to 20% earlier.
Shravan Shah
But some, some recoup should be there in the FY27 given the inflow is also on the higher side, sir.
Shobhit Uppal
Yeah, it should be. I had also mentioned that this is a conservative estimate that I think the recovery, what we’ve sort of lost out 3, 4 percentage points should be made up in the next financial year. That’s why I said 15 to 20%.
Shravan Shah
Okay. And the margin for fourth quarter and.
Shobhit Uppal
Our project just to put things in context more so with the Central Vista project which has come in, which is the fast. Which is a fast moving project. Will be a fast moving project. And that is one project which the Central Vista projects are insulated from the graph impact. So that should also contribute substantially to our turnover next year.
Shravan Shah
Yeah. So I was about to ask that only so this out of this.
Shobhit Uppal
I know you well. That’s why I preempted you. Yeah.
Shravan Shah
So roughly how one can look at. So the overall timeline for Central Vista is 24 months and in FY27 can we see kind of a 40 odd percent of this 2600 crore.
Shobhit Uppal
Yeah, that’s. That’s what you know initially there is time is going to be taken by designing. It’s a large project, it’s a very complex project. So designing is already started. We are awaiting clearance from the authorities. You know these are important buildings which are having to be demolished. They have yet not been vacated. So we should be billing at least 30% plus in this year.
Shravan Shah
Okay, got it. And in terms of the margin Q4 and next year 10%. Is this doable or we can say even.
Shobhit Uppal
It is definitely doable.
Shravan Shah
Okay. Okay. But. But a possibility towards our 10 and a half percentage is there for next year.
Shobhit Uppal
Let’s stick to 10%.
Shravan Shah
Okay. Okay. And then just to clarify this 9,500 crore plus order inflow. So this is excluding the GST you are saying. 603.
Shobhit Uppal
Yes. Is included in the figure of 9562.
Shravan Shah
Okay. Okay. So if we remove that and broadly 8900 odd crore without.
Shobhit Uppal
Yes.
Shravan Shah
Okay. And the L1 that we said 2485. So that is also excluding GST or including.
Satbeer Singh
That is also including GST because motivates government projects.
Shravan Shah
And okay. So these are three projects. So last time we were having the two projects. University and RML Hospital Delhi.
Shobhit Uppal
These are four projects.
Shravan Shah
Can you sir, name it? All these four projects.
Shobhit Uppal
One is rml. One is Odisha University. One is Assam Judicial complex. One is Kota Airport.
Shravan Shah
Okay. And lastly sir, balance it details. Inventory data, straight payable and mobilization. Retention and unbilled.
Satbeer Singh
Are 638 crores.
Shravan Shah
Okay.
Satbeer Singh
And retention 431 crores.
Shravan Shah
Okay.
Satbeer Singh
Mobilization 729 crore.
Shravan Shah
Okay. Sorry, 738 is what?
Satbeer Singh
And inventory 359 crore.
Shravan Shah
639 crore. And in terms of the CapEx in the fourth quarter, how much more? 19193 crore we have done how much more we will be doing.
Satbeer Singh
But that is around.
Shobhit Uppal
100 crore.
Shravan Shah
Okay. Total so around 300 karo for the entire. And next year also similar. 300 crore.
Shobhit Uppal
Yes. Next year also similar. It’s similar. Should be lesser actually because the order inflow that we’ve had now we’ve more or less by the end of March we would have catered to the capex for those projects.
Shravan Shah
Okay. And so this L1 most likely will be converted into LOA by this March. This 2485.
Shobhit Uppal
Say on all these jobs. Really it’s very difficult because as we’ve seen sometimes with government projects, especially state government projects it takes a long time.
Shravan Shah
Okay, so so next year then the apart from this the price if I have to look at can one can look at 9000 crore similar run rate in terms of inflow for FY27.
Shobhit Uppal
As I said we are picking and choosing our projects. We have focus on residential is not there. So I think logically speaking next year the inflow will be slightly lesser.
Shravan Shah
5,000, 6,000 crore.
Shobhit Uppal
Yes. Because our focus is going to be in increasing our efficiency and increasing our margins and doing delivery on the projects that we bagged in this year and last year.
Shravan Shah
Yeah, yeah. That’s it from my side. Thank you and all the best.
Shobhit Uppal
Thank you. Thank you.
operator
Thank you. The next question is from the line of Sandeep Sabarwal from Ask Investment. Please go ahead.
Unidentified Participant
I just wanted to find out about this new labor code provision. So most companies actually put this as an extraordinary expense. You have I think included in the labor salary and wages. So x of that if you have to see what would have been the. Margins and the fact. Have you done some calculations.
Satbeer Singh
During this nine months.
Shobhit Uppal
The impact till December is 1 crore and 31 lakhs.
Unidentified Participant
Oh it’s one core 31. It’s not 13 crores. Okay.
Shobhit Uppal
No, 1 crore 31 lakhs.
Unidentified Participant
Okay. Okay, that’s fine. Thanks.
operator
Thank you. The next question is from the line of Vaibhav Shah from GM Financial. Please go ahead.
Vaibhav Shah
What would be our bid pipeline as of now?
Shobhit Uppal
Bid pipeline as of now is about 7,000 crores.
Vaibhav Shah
Okay. In your guidance of 5 to 6,000 crores of inflow does it include the L1 orders as well of around 2 and a half thousand crores?
Shobhit Uppal
Yeah, it does.
Vaibhav Shah
So likely conversion would be in next year.
Shobhit Uppal
Yes.
Vaibhav Shah
Okay. And so secondly on the Bihar animal husbandry project. So when do we target to complete the project.
Shobhit Uppal
In fy?
Vaibhav Shah
Printed down in last two to three quarters.
Shobhit Uppal
Yeah. Because you know, the area, it’s an existing campus. So the new buildings are coming up as and when they are handing over or vacating existing old buildings, they are being demolished and the new ones are being constructed. So in the last quarter and a half, you know, the vacation of these buildings is. Has slowed down. But this will definitely complete in FY27 because part of the complex in this quarter has been inaugurated by the honorable CM and he’s announced a date for completion of the entire campus. So we are reasonably confident in the next year it will be completed.
Vaibhav Shah
Okay. Last year on January and jewelry. So when do we. What is the timeline of. Or is. I’m not construction. When do we intend to complete the project?
Shobhit Uppal
I think the timeline. Vikas is on the call. Vikas, are you there? You want to answer this question?
operator
Is not online.
Shobhit Uppal
Okay, never mind. The period for this completion of this job is about three and a half years, if memory serves me right. And as I mentioned earlier, we are going to start billing in Q1FY27. The work will start on the ground. Since this is an EPC job, engineering is already happening.
Vaibhav Shah
Okay, thank you, sir.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is from the line of Rajat from. I thought pms. Please go ahead.
Unidentified Participant
Hi. Am I audible?
Shobhit Uppal
Yes, you are.
Unidentified Participant
Thanks. With regards to CSMD projects, is there any delay relative to the original timeline?
Shobhit Uppal
Yes, there is a delay. There is a huge delay. And so we’ve. As I had been explained in the earlier calls, the entire design of this project had to be redone because the design conceptual design which was given by the tender was not tenable. Certain aspects of that design were not tenable on the ground that designing is complete. Work is now moving at a fast clip there. That’s why there’s a delay.
Unidentified Participant
So can that result in any cost overruns for us like lower margins in this project for us?
Shobhit Uppal
So yes, there has been an impact on the cost. But you know, as we move along, we are hopeful that some of these costs will be mitigated either through extra work or through extra claims.
Unidentified Participant
Okay. And can there be any penalties as well?
Shobhit Uppal
No, we’ve got the extension of time owing to the delays till now which are not attributable to us has been.
Unidentified Participant
Granted, that has been amicably agreed upon.
Shobhit Uppal
Yes. What happens in all government contracts is that, you know, there is a hindrance register which is the. Which is maintained and which is jointly signed off, which helps establish the delays which are not attributable to the contractor generally. These are finally quantified towards the end or the last stage of the project. But in this project, since the delays have been quite large and very obviously not attributable to us up until now, the extension of of time has been granted.
Unidentified Participant
Sure. And the margins on this project were. Same as company level margins going into. The project or since it was a marquee project. So we went at a lower margin.
Shobhit Uppal
No, these were, these were similar to the company wide margins that we target. In fact, you know, because the competition on this job was lesser since because the scale of the job, only the larger players were there. So we had bidding with the same margin that we keep for other projects or other blue chip projects. I think. Have I answered your question or something else?
Unidentified Participant
Yeah, yeah. And one more related to this given it’s a very complex project and a lot of traffic at the station. So do you any such, any delays in execution because of that reason in the future?
Shobhit Uppal
You are right, because while the buildings, the greenfield buildings, you know, the DRM or the node, the building, you know, or the other buildings, they we don’t envisage any delay, further delay, but platform, you know, or doing them up for the concourses. That depends on the shutdown which is given to us. So you know, it’s very hard to predict. But yes, generally going by our experience at Chandigarh Railway station, there may be some delays there.
Unidentified Participant
Okay. And those delays, I mean can again cost overruns or that has been budgeted in. Or how is that?
Shobhit Uppal
Those have been budgeted in to some extent.
Unidentified Participant
Okay. All right. You just mentioned that will start from April and the timeline original was probably. Two and a half years or three years. So that timeline will begin from April or it has already started from the time of.
Shobhit Uppal
It’ll begin from April. It’ll begin from April.
Unidentified Participant
Okay. Okay, understood. And one last one. Given the pollution related construction ban in. Delhi has been happening for the last. Two, three years and it is affecting our top line growth and the march and the guidance that we need to revise it downward. Now my question relates to the next year when we are seeing where we are seeing 15 to 20% growth. So do you think that we might. Have to again revise it downward or. We are budgeting in 10 or nine months of construction activity only in Delhi while we give this slide for FY27.
Shobhit Uppal
No, no, we are not budgeting in only 10 or 9 months of this thing. What I had said earlier was while some impact will be there but we are hopeful that this year, this year or next year because the entire ecosystem is Totally sensitized and much more aware about this issue. Every constituent of this ecosystem is working to mitigate its effects. So we are hopeful that this time around the effects will be lesser. Much lesser.
Unidentified Participant
Sure. I hope so. And that’s the case because we were hoping that FY26 will also have much lesser impact. But it turned out to be the opposite.
Shobhit Uppal
You’re right. And it’s not only impacted the top line, it’s also impacted our profitability. Because, you know, while we bagged a lot of large orders and to execute those large orders, our overhead cost had also gone up. So, you know, in the short term our profitability has been hit. But the silver lining is that now going forward, not only are we well stocked on our order book, but we are also well equipped every which way to ramp up our execution speed. So hopefully next year we will make up. We are very optimistic that we’ll make up the shortfall that we encountered this year.
Unidentified Participant
Sure, sir. Thank you so much and wish you all the best. Thanks.
Satbeer Singh
Thank you.
Shobhit Uppal
Thanks.
operator
Thank you. The next question is from the line of Ankit, an individual investor. Please go ahead.
Unidentified Participant
Yeah, hi. So I just wanted to check on. Well, I see the results for this quarter. I see a subcontract work as well as other expenses are substantially high. Almost 30% year on year which are very similar to our quarter two. So the first question is, is there a substantial reason to it apart from the NGT issue which has been discussed already.
Shobhit Uppal
Just a second, please let me take a look at the number.
Satbeer Singh
You are asking about to. In comparison to which quarter?
Unidentified Participant
The same quarter last year, sir. The subcontract work as well as other expenses.
Satbeer Singh
If you have to see, including cost of material and other expenses and subcontract, then you will find that as at par. Because our bank is also approximately on the similar line. 6.90% was last year and now 6. 6.85.
Unidentified Participant
Right. So that has.
Satbeer Singh
Basically you have to include entire things of contact, construction expenses and quarter method. Then we’ll find a appropriate answer.
Shobhit Uppal
Fair enough. Fair enough. Thank you. The second question I just had was, you know, there have been news of lately on income increasing steel prices. Does that impact you on quarter four onwards or are we. Because in the last call we discussed that we will use or we normally use our cash positions to sort of hedge against, you know, the supply chain costs. So is that something which we see as an inflation in terms of raw material costs or have we already hedged it?
Shobhit Uppal
No, the inflation definitely is there. But in, in the pricing of cement and steel. This is pass through because in all our contracts or most of our contracts, there are base prices for these materials. But there is an indirect impact on account of increase in steel prices because of, you know, the other material, our equipment that we buy, be it mixers, transit mixers, so on and so forth, scaffolding, aluminum, shuttering. There is an impact on account of this pricing.
Unidentified Participant
Sure. These were two questions I had. Thank you.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is on the line of Samrat Sarkar, an individual investor. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Shobhit Uppal
Yes, you are.
Unidentified Participant
Yeah. So I just wanted to know why your other employee expenses are as compared to your percentage of revenues is so high this quarter or as a. As compared to last year.
Satbeer Singh
Method has been made around 3, 4. That’s why there is a slightly different.
Unidentified Participant
Okay, okay, okay. And when do you expect the this, your operating margins to be 10% from which financially onwards. Okay, okay. Okay. That’s it. Sir, thank you so much. Thank you. All the best.
Shobhit Uppal
Thank you.
operator
Thank you. A reminder to all participants to press Star and one to ask a question. Ladies and gentlemen, if you wish to ask a question, you may press Star and one. The next question is from the line of Shravan Shah from Dollar Capital. Please go ahead.
Shravan Shah
How much value of projects that we have already bidded and outcome is yet to come?
Shobhit Uppal
That’s the number that we don’t have handy at the moment. L1, we’ve already told you it’s 2485. The other value is more on the private sector side. We can. Can we get back to you on that number? Yeah, that’s not going to be substantial. As I said, we have, we have. We are not focusing on the government or sorry on the residential side. So primarily government projects. I don’t have that figure handy. We’ll get back to you on that.
Shravan Shah
No shish. And private government which is at 68%, which is a private. So last time we said that we want it to reduce to 60%.
Shobhit Uppal
Actually if you take the central Vista which has come in after, after December. Yeah. It will be about 60, 40.
Shravan Shah
So now we will keep it at this level or we want to it toward 50, 50 going forward.
Shobhit Uppal
Going forward. But it can. It’s very difficult to say whether it will be 55, 45, around the 60 40s one way or the other of 40, 60. But it will be, it will be quite even.
Unidentified Participant
Okay. Okay. Okay. Got it sir. Got it. Thank you, sir.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is on the line of Rahul Kumar From Baikaria fund. Please go ahead.
Unidentified Participant
Hello.
Shobhit Uppal
Yeah, hi. Yeah hi.
Unidentified Participant
Yes, one question, sir. Is there an impact of the new labor code on. If. Yes, how do you see.
Satbeer Singh
I think we have answered this question.
Shobhit Uppal
1.31 crore in absolute numbers up to December.
Unidentified Participant
So I understand sir, this is for. The hour employee wage. Right? I was just wondering the you know the outsourced labor. Okay, okay.
Shobhit Uppal
You know outsourced labor is generally. You know we for labor rate works we have petty contractors. Right. And there the its rate per unit which is the work is contracted out to them. So this impact going forward, you know even the rates that is agreed with them. So it becomes very difficult to quantify this. Am I. Am I. Have I been able to articulate? Have you understood?
Unidentified Participant
Yes, understood. I was just trying to understand from a. You know from bidding point of view. Or you know pricing point of view for going forward. How does this impact us?
Shobhit Uppal
So you know as far as labor is concerned due to its scarce availability and diminishing skills. You know on the quarter. On quarter the. When we bid for a job we see. We are seeing that the unit rates are on the increase every three months or four months. And they are far more than what the governments are recognizing. So we are putting. We are sort of accounting for this increase based on the past data. Past one year or past two years. We are extrapolating that data and using it to sort of hike our bids also.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question is from the line of Munir Shamadia, an individual investor. Please go ahead.
Mahesh Patil
Hello.
Shobhit Uppal
Yeah, hi.
Unidentified Participant
Thank you sir for the opportunity. Sir, in the Q2 presentation year to date order was 4374 crore. And in Q3 presentation it is 956-9565 crores. And in the meanwhile we have just. We have received two orders of 3.070crore and triple 8crore. Still there is a difference of around 1200crores. Have we like received any other order?
Shobhit Uppal
We need to. I don’t have that data handy. But Satbir, you can reach out to Satbir. We’ll provide you that detail.
Unidentified Participant
Okay. Thank you sir.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is from Ankit, an individual investor. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity again. I just wanted to ask a couple of points. One is in on quarter two presentation we had mentioned whitelist Corporation is around order value of around 1065 crore which has in the quarter three presentation has come up to be 821 crore. So is there a change here? That’s the first question.
Shobhit Uppal
I think there is a mismatch. The 1060 includes GST. Okay, so a 21 is without GST.
Unidentified Participant
Okay. Okay. And the second question was that what type of benefits in terms of the operational, financial or any other organizational benefits we would like to extract from the action of subsidies which are getting merged into the parent company?
Shobhit Uppal
No, this is, this is. These are the subsidiaries which own tract of land in Kolkata which has been on our books for a long time. As we have been mentioning in our investor interaction, we are now looking to leverage this land. To do that we have applied for necessary clearances and for those clearances to go through amalgamation of this land is, is required. That is why we have, we are merging these companies with the parent company.
Unidentified Participant
Sure. Thank you.
Shobhit Uppal
Thank you.
operator
Thank you. The next question is from the line of Samrat Sarkar, an individual investor. Please go ahead.
Unidentified Participant
So, thank you for the follow up. So I just wanted to know when do you expect the growth to be in mid 15 or 20% growth annually from the current 10% growth. So from this year onwards or from the next FY27 you expect this growth to be much better? Sales growth?
Shobhit Uppal
Sales growth or top line growth? As I said, Between 15 to 20% it will be there in. We are extremely hopeful it will be there in the next financial year.
Unidentified Participant
Okay. So that’s great. Thank you sir. Thank you.
Shobhit Uppal
Thank you.
operator
Ladies and gentlemen. We take that as the last question of the day. And now I would like to hand the conference over to the management for closing comments.
Shobhit Uppal
Thanks. Thank you everybody for joining in. Hopefully we’ve answered all your queries. If there is any more questions, feel free to reach out to Mr. Sadheer Singh, our CFO and and hope to see you again in a few months time. Thank you. Bye.
operator
On behalf of Ambit Capital Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.