Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Bondada Engineering Ltd (BSE: 543971) Q4 2026 Earnings Call dated Apr. 28, 2026
Corporate Participants:
Vinay Pandit — Investor Relations
Bondada Raghavendra Rao — Founder, Chairman and Managing Director
Unidentified Speaker
Unidentified Speaker
Satyanarayana Baratam — Director and Chief Financial Officer
Unidentified Speaker
Unidentified Speaker
Unidentified Speaker
Unidentified Speaker
Unidentified Speaker
Unidentified Speaker
R. Srinivas — Chief Executive Officer
Analysts:
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Urmish Shah — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Presentation:
Vinay Pandit — Investor Relations
Ladies and gentlemen on behalf of Captify Consulting investor relations team I welcome you all to the Q4 and FY26 post earnings conference call of Bondada Engineering Limited today on the call from the management team we have with us Dr. Raghavendra Rao Bondada Chairman and Managing Director Mr. Satya Narayan Bharatam Director and CFO and Rear Admiral R. Srinivas VSM retired CEO Bundada Group. As a disclaimer I would like to inform all of you that that this call may contain forward looking statements which may involve risk and uncertainties.
Also a reminder that this call is being recorded. I would now request the management to briefly run us through the investor presentation for the period ended March 2026. The growth perspective and vision for the coming years post post which we will open the floor for Q and A over to the management team.
Bondada Raghavendra Rao — Founder, Chairman and Managing Director
Yeah Good morning to all shareholders and Captify team. Thanks for joining this call to get more updates on last year performance and Q4 updates and future prospects updates as well of your company Bernard Engineering Ltd. Yeah Today’s presentation consists of these business overview the future forward and then industry tailwind and then business opportunity then financial performance and the highlights of Q4 as well as last whole financial year. Yeah Most of you all know that actually this Bernard Engineering Ltd.
Is into the renewable energy is a major business segment and then telecom and then railways, Indian Railways and also expanding into the rapidly into the battery energy storage system and data centers and even defense and aerospace manufacturing. So go back, go back, go back, go back. So this is the first one is order book.
Unidentified Speaker
Yeah.
Bondada Raghavendra Rao — Founder, Chairman and Managing Director
Net worth of the company is around 7325732 crores. 732 crores and everyone 7.8 gigawatt of portfolio in Solar GPC and as well as the best is under execution 1.3 gigawatt commissioned so far from the inception and out of the 7.8 gigawatt plus this 850 megawatt hour of this is under this execution. Yeah we have Pan India presence and excellence around 2500 plus employees are exist in this company. ISO9001 certified in addition to that actually we have that voshas and even ISO14000 certifications are also there Crystal a stable rating and great place to work certified.
These are the some of the credentials of the company. Yeah so diversified EPC and telecom and renewable and energy and best segments so we undertake engineering, construction, procurement engineering procurement construction of the all the renewable energy projects and even telecom projects and thereby thereafter actually we will also undertake the operational maintenance of the of the projects that we handled and also we are ventured into the Indian Railways where actually we are providing the passive infrastructure for their coverage implementation.
We are also into energy conservation products manufacturing and it is backed with our EPC contracts is a backward integration manufacturing of all towers and MMS model mounting structures. Even BLDC motors are there and LED lights and we also into green construction products that is UPVC windows and the AAC blocks and going forward actually we are looking for IPP IPP of around 2 gigawatt in AP and also our manufacturing units are spread across in two states. Actually we want to make that world class.
We want to want to have a world class manufacturing facility going forward. Yeah this is what actually I’m telling actually integrate infrastructure and emerging sectors I.e. Renewable energy, telecom, Indian Railways battery energy storage system then data centers, manufacturing and also defense and aerospace segments. Best data center and then defense and aerospace is the upcoming business segments for this engineering. Bernard Engineering update these are the subsidy structure we have almost around nine subsidiary companies.
A few of them are actually project project based SPBs otherwise each company is a it’s statutory body independently running. These are majority this take one way again one other engineering limited in this banana echo build deals with that green construction products deals with the LED and solar street lights at coal technologies deals with BLDC motors one other managed services deals with operational maintenance services One other green engineering private limited deals with complete fabrication of our telecom towers transmission towers and module mounting structures Solar MMS and banda Renewable energy Private limited deals with EPCR for battery battery energy storage system projects and green pond green bond re park private limited is our IPP 2 gigawatt this is a project based SPV and one other dynamics private limited deals with our defense and aerospace manufacturing products.
It’s a diversified portfolio Technology driven innovation is there and
Unidentified Speaker
Proven execution excellence
Bondada Raghavendra Rao — Founder, Chairman and Managing Director
Driven execution excellence and sustainability focus in house manufacturing Strong client relationships Canada presence and the robust order book is there. We will discuss in detail about order book in upcoming the slides what is that to closer order book and what is that Actually we have at Artemis So we have complete man India presence. All these I think actually most of these points have these next these are the customer base customers, major customer base. Top line reflects that our telecom customers.
And then second line is our renewable energy. And very near future we are going to have relations with this coal India and then NHPC and then Gujarat where we have participated some of the tenders. And we are looking forward for getting the address from these people. Yeah. So this is the growth and expansion of this company. We started way back in 1213 and then subsequently we ventured into the lot of manufacturing units. And 2017 we have entered into this solar EPC and 2023 we have we gone for public.
And then we listed on Bombay stock exchange in 2023 and in fact 2022 we won the one of the biggest project from PSNL that is 4G saturation. And since then actually we listed the listed 24 we have reported a revenue of around 88801 crores. And then 25 we have reported revenue of almost around 1571 crores. And now 26 we have reported almost 228502843 crores of revenue which is coming almost around last three years. If you see that our average CSR CAGRs of around 1995% but last four 14 years of CHR is around 53%.
And this financial year more focusing this financial year on this bus implementation data centers and even defense manufacturing from this 26 financial year onwards. And also we want to have integrated manufacturing plant in Hyderabad. Yeah. Next. So these are the. This is business units. Remas Gar is taking care of group operations. That is a CEO of the group. Omar takes care of renewable energy. Mary Prasad takes care of manufacturing units. Pradeep takes care of that re part that is ipp. Surya Moti takes care of our telecom business and Thandi Varanasi takes care of our Eco bill.
And Ravi Gutturi is the end. And then Jagdish is our head for takes care of it for. And all those CEOs are supported by this key management team. These are the CTO and special levels. This is strategic growth growth road map for this financial year. That is FY27. So one of the major and important event which is going to come up for this company is migraine migrating to main board that is BSE and NSC. To enhance the to enhance our market presence and then targeting 1.5 gigawatt of EBC commissioning to scale the execution capabilities.
Because 7.8 gigawatt of portfolio is There which needs to be commissioned next to two to two and a half years out of that actually around 1.5 gigawatt peak which we are targeting to complete as per the budgeted timelines and the establishment of an integrated world class manufacturing facility to combine all our products in one place and as well as actually need to have enhance the volumes underneath to have with the world class facilities.
Unidentified Speaker
Yeah, the company has already identified. Yeah, yeah.
Bondada Raghavendra Rao — Founder, Chairman and Managing Director
The company has already identified the land parcel for this facility which we are going to start soon. Yeah, you see, I think we have been Talking this Vision 2023 quite some time back actually. So we have the target of 25 gigawatt renewable energy energy capacity to be achieved by 2030. So this is out of our RE emission by RE mission of Government of India’s re emission of around 500 gigawatt renewable energy. This 25 gigawatt again further divided into 16 gigawatt of solar and around 9 gigawatt of best both go and even EPC EPC scope and strengthen our telecom leadership for digital Bharat and 5G expansion.
And this year we are expecting 5G expansion by all the private operators as well as the BSNL also as a lot of thrust is there and 5G expansion by providing both new towers as well as the fiber to the last mile connectivity. So where in which we are looking reasonably good business in this segment also. And coverage is now picking up actually that the safety railway rail safety project and for that actually we are providing passive infrastructure alongside of their railway tracks. Our job is to provide the communication towers across railway tracks and then connecting those towers and railway stations and then locomotives with fiber so that actually coverage can be installed and coverage can enable its functioning.
So a lot of tenders are coming across railway zones and railway lines of the standard as a first tender we want for this South Central railway and many times we are participating which are under evaluation so scaling up of data centers. We are because of our telecom experience and renewable and renewable experience and having our own IPP power plants. So getting into the data centers infrastructure is a very easy easy task for us. Actually that’s the reason actually we ventured into the data centers and already as you all know that actually we have MoU with UK based company that brainstorm where they will their scope is that they will find out the data centers hyperscalers data centers operators and where in which we our scope.
Our scope is actually creating infrastructure and giving to the hyperscalers as a part of it. Actually we are working on two facilities, two data centers, one is in Hyderabad and one is in Vizag. And this, this, this revenues from this data centers also will add to from this financial year onwards. So expanding into defense and then defense and aerospace segments as a national self resilience. As you all know that actually is a trust is there from government of India having this defense manufacturing not only for in India for even to supply even global and which we are looking at very two, three very niche products that system integration and then subsystem integrations which we are targeting.
And. And we are going to supply these systems to the all DPSUs and even Indiana Indian defense as well as Indian Defense and even export also. So this is about battery energy storage system. This is actually last year we have conceived this concept battery energy storage system. There’s a huge huge discussions are going on in India. That battery energy storage system has huge potential because of our grid stability. And then to manage the peak power demands we already packed around 850 megawatt of our of address from both Tamil Nadu and AP state and many tenders are in pipeline.
The these are the annuity based contracts which we have to install this best container solutions their existing substations and which we have to install it and then take it for next 12 years. We will get the annuity based revenue from this best plans. So data centers as I already explained this is the creation of data centers for the hyperscalers and provide by providing fiber network as well as the green energy solutions for their cooling and even power 24 by 7 round the clock power requirements.
Not only just limiting to these two activities. We can, we can. We are also working on that actually finalize finding out the strategic spaces.
Vinay Pandit — Investor Relations
So your voice is cracking up. We are not able to hear you clearly. Yes. No, we are not able to hear you clearly still.
Satyanarayana Baratam — Director and Chief Financial Officer
No. Since beginning it is like that.
Vinay Pandit — Investor Relations
Yeah, now it’s better sir.
Satyanarayana Baratam — Director and Chief Financial Officer
Now it’s better.
Vinay Pandit — Investor Relations
Yeah, we can see the screen. So I think it’s better move to read mode.
Bondada Raghavendra Rao — Founder, Chairman and Managing Director
So am I audible now clearly?
Vinay Pandit — Investor Relations
Yes sir.
Bondada Raghavendra Rao — Founder, Chairman and Managing Director
Okay, so next. Yeah, this is again another new segment that is defense sector entry into this Aerospace and uavs and then a lot of naval subsystems and even airframes subsystems that we are very seriously working on it. And even actually in fact we are also looking at inorganic growth of even merging the small companies which are already there in this space and where they need some push on actually expanding this thing and which we are in making due diligence up with two companies and we would like to take over majority stake in those Two companies with that actually we can scale up in this defense and aerospace segment.
Yeah. Next. Yeah, this is these numbers. I think most of you know that actually when you see that last year that is 2024, 25, 25 last year numbers. You see that total total peak demand power demand demand was around 240 gigawatt. But whereas expected to rise this power demand by 690 to 700 gigawatt by 2036. This is one target which is. Which is giving us a huge potential for next 10 years. Even other than this actually also the 500 megawatt energy target by 2030 that is there and even battery energy.
So I think there’s no problem. Opportunities Energy storage and pump storage and associated associated a lot of other product manufacturing, even green hydrogen. So many things are going to evolve here in this segment. I think we are well positioned in this and actually we will continue to excel and continue to perform even on future projections and projects of this our segment especially in renewable energy. These are the some of the numbers actually they have as as per industry India energy transition from solar plus best opportunities for this thing.
Yeah.
Satyanarayana Baratam — Director and Chief Financial Officer
Yeah. So good morning once again to everyone and good morning. So coming on to the financial highlights. We would like to give you some information on this finances. So we are backed up with the strong order book and order book in pipeline. In terms of the total order book we are sitting on 7147 crores of order book as of 31st March 2026.
Unidentified Speaker
Okay.
Satyanarayana Baratam — Director and Chief Financial Officer
Majority sharing. Okay. Majority majority share is coming from again renewable energy. The palm was kind of 4136 crores which is close to 65%. And then followed by best about 1463 crores of two major projects. And then. Oh my God.
Unidentified Speaker
Two crore very much with your mount.
Satyanarayana Baratam — Director and Chief Financial Officer
And I. I think there is some class. One minute.
Vinay Pandit — Investor Relations
I don’t know. Just hold on. Yeah, you continue sir.
Satyanarayana Baratam — Director and Chief Financial Officer
Maybe you can make everyone mute by default if you. If you can make.
Vinay Pandit — Investor Relations
You continue. Sir,
Satyanarayana Baratam — Director and Chief Financial Officer
My voice is clear now.
Vinay Pandit — Investor Relations
Yes. Yes.
Satyanarayana Baratam — Director and Chief Financial Officer
Okay. Okay. And then followed by Indian Railways in terms of AP2 gigawatt IP projects we are having 9,000 crores of order which is in pipeline now.
Unidentified Speaker
Okay. Very very good.
Vinay Pandit — Investor Relations
Mr. It’ll be good if you stop unmuting in between. Otherwise we’ll have to put in the waiting room. Yeah, go ahead sir.
Satyanarayana Baratam — Director and Chief Financial Officer
Next. Next. So this is the more of a geographical order of allocation. If you see this overall 7,147 crores of breakup majorities in Maharashtra, Gujarat, Tamil Nadu and Rajasthan. AP and then followed by Telangana Pradesh and Karnataka and then followed by Kerala basically. Is more of a renewable energy project. And what is the portfolio we are having? You see in this Rajasthan we have almost a kind of one 134 megawatt week which is projects are under execution. In Rajasthan we are having NLC and NTPC as our customers.
And in Gujarat if you see it’s almost a kind of 1800 megawatt peak capacity in Gujarat we are having we are working with the Adanis, NLC and even KP Group. And in Maharashtra PC we are almost executing 568 kilowatt peak DC capacity. In the Maharashtra we are majorly working with. We have one client, the private client by name PNK. So we are almost working one for 142 megawatts. And in terms of Telangana we are working for singular which is under execution. It’s almost completed now. So we will be project mostly next one to two weeks sometimes we are having works with NTPC which is about 435megawatts and expected in order to rest on same clients.
And in AP Telangana, AP and Tamil Nadu we have better entry storage system projects which we are working for government and these two are under execution at this point of time. Totally, totally about 850 megawatt. So these are the key highlights of last year financial year 2025, 2023. So from existing sector CTC it is a solar EPC we have commissioned almost a half gigawatt of projects and this year we are targeting almost a kind of 1 1/2 gigawatt of projects to get commissioned and accumulative commissioned as of 31st March 2026.
If you see it’s close to 1.3 gigawatt pick and if we complete 1.5 gigawatt in this year. So by end of this year we will be having almost commissioned products of 3 gigawatts. And in terms of telecom if you see we have VSNL towers installed as of now about 1536 numbers. And on air which means which is getting radiated is about 1506 numbers. It’s almost 90 99% strike rate. And in terms of emerging sectors we are now seriously focusing on battery energy storage systems wherein we have already got two projects and we have participated in three tenders as of now which are yet to open the tenders and a lot of efforts are going for this PESS in terms of both go model as well as in EPC model.
In terms of data centers we had one mo with the register Based out of Dubai and one. One assignment is currently happening. We will be informing you very soon about.
Vinay Pandit — Investor Relations
I think you’ll have to. Your network is coming.
Bondada Raghavendra Rao — Founder, Chairman and Managing Director
Can you
Vinay Pandit — Investor Relations
Just stop the screen share and start it again please?
Bondada Raghavendra Rao — Founder, Chairman and Managing Director
Need to sort out your network problem. Last time also. Same problem.
Vinay Pandit — Investor Relations
So shall we. Shall we move to the Q and A, sir?
Satyanarayana Baratam — Director and Chief Financial Officer
Yeah, we’ll. We’ll just run through the numbers once again. Maybe give me another three minutes time.
Vinay Pandit — Investor Relations
Yeah.
Satyanarayana Baratam — Director and Chief Financial Officer
Is it okay now? Voice is good now?
Vinay Pandit — Investor Relations
Yeah. Yeah. It drops off in between. So problem is that I would request participants just be patient. Somebody is messing around on the screen. Can you please stop doing this? So your voice is really really bad. Sir, I would suggest if you can just quickly run through the presentation. Can you can just speak up, sir?
Satyanarayana Baratam — Director and Chief Financial Officer
Yeah.
Vinay Pandit — Investor Relations
So your presentation is taking up the bandwidth. Your voice is not clear. I would suggest if you just speak up.
Unidentified Speaker
Are we. Are we audible now?
Vinay Pandit — Investor Relations
Yes sir. Now you’re audible. Let’s just quickly speak. Let’s not run the presentation since it’s taking up your bandwidth. Sir. So you can go ahead and speak. Sir, we’ll just take up the Q and A. Hello.
Unidentified Speaker
The recording has stopped.
Vinay Pandit — Investor Relations
Hello management team, are you available?
Unidentified Speaker
Hello. So we’re not able to hear you. We’ll just wait for the management to join. I request participant just to hold on. You just wait for the management to join in again.
Unidentified Speaker
It. Hello. Can you hear us? Sir? Now? Hello. Hello.
Vinay Pandit — Investor Relations
Ramesh, can you hear us? Vin. Yeah. Hello.
Unidentified Speaker
Hello. Vin.
Vinay Pandit — Investor Relations
Yeah. Can you hear me? Hello.
Unidentified Speaker
Yeah. Yeah, we are. You are audible now.
Vinay Pandit — Investor Relations
Yeah. Okay. Okay. So we now move to Q and A. Yeah. Yeah. Yeah. This line is better. I’ll just restart the recording.
Unidentified Speaker
Yeah. Please, please. Please.
Unidentified Speaker
This meeting is being recorded.
Questions and Answers:
Vinay Pandit
We’ll take the first question from Randir Singh. Randir, you can go ahead please.
Unidentified Participant
Yeah, please go ahead.
Unidentified Participant
Fy 27th May revenue guidance over FY26 and net margin. FY27 net profit margin.
Bondada Raghavendra Rao
So Randirji, I think you have seen the Tatar book. Around 7,200 crore is there in existing and.
Vinay Pandit
Mr. Rao, we are not able to hear you.
Unidentified Participant
The recording has stopped.
Vinay Pandit
So we are not able to hear you at all. So we completely lost.
Bondada Raghavendra Rao
Yeah.
Vinay Pandit
Yeah. I’ll just resume the recording. Then you can answer the question. This
Unidentified Participant
Meeting is being recorded.
Vinay Pandit
Please go ahead.
Bondada Raghavendra Rao
Yeah. Actually if you have seen that our presentation, our order book is standing at around 7 months.7150 is.7150 crores are there which we have to deliver in next 18 to 20 months time. So that is one thing. And even ongoing orders are there which. Which are going to add to our order book. So having said this maybe anything around 60 to 70% of revenue growth will be there even. Even coming financial year. And most of these contracts are long term contracts. And this profitability is going to be almost in terms of.
Is going to be the same or in terms of absolute number. And you see that it is same almost around there. Also around 60 to 70% growth is going to be there in from last financial year.
Unidentified Participant
Net profit margin.
Bondada Raghavendra Rao
That’s what I’m telling now actually you have seen that our net profit is around 211 crores. Around 60, 60 to 70% growth. As an. As a absolute amount
Unidentified Participant
50 to 60% growth. Bottom line.
Bondada Raghavendra Rao
Yeah, bottom line.
Unidentified Participant
Thank you sir.
Vinay Pandit
Thank you. We’ll take the next question from Nishita. Nishita, you can go ahead please.
Unidentified Participant
Yes, hello.
Vinay Pandit
Yeah, please go ahead.
Unidentified Participant
Yeah. So sir, you mentioned that we also have ongoing orders. So if you can let us know what is the current order book. Pipeline.
Bondada Raghavendra Rao
Yeah. So in addition to the existing order book I found seven seven one five G order book and anytime actually which we are tenders participation Is is around around 25 to 30000 crores. But our strike rate is around 20 25%. But currently we are almost sitting on around 2850 crores artists L1 which we are going to get in the first quarter.
Unidentified Participant
Okay, so 2850 crore of L1 orders and any time we participate in 25 zero crore of order book. Right?
Unidentified Participant
Yeah.
Unidentified Participant
And the win rate is around 25 to 30%.
Unidentified Participant
You’re right.
Unidentified Participant
Right. And my next question is on the new facility if you can like let us know more about the facility. You mentioned that you already have the land parcel for that. So when are we going to like start the construction on the facility? And what is the facility going to be used for?
Bondada Raghavendra Rao
Yeah, so this facility is primarily to integrate all our manufacturing units that is renewable energy products, that is MMS structures, even transmission towers, even even our battery energy storage system facility with new technology that is vanadium technology. So we have already identified around 27 acres nearby Hyderabad. And this plant construction will start anytime in the second quarter of this financial year.
Unidentified Participant
Okay. And what will be the total capex for that?
Bondada Raghavendra Rao
Sorry,
Unidentified Participant
What will be the total capex for this new facility?
Bondada Raghavendra Rao
So the capex would be around 100. 120 to 130 crores.
Unidentified Participant
122 crores.
Unidentified Participant
Including cost of land.
Bondada Raghavendra Rao
Including cost of land.
Unidentified Participant
122 crores right?
Bondada Raghavendra Rao
Yeah.
Unidentified Participant
120 to 130. In between. 120
Bondada Raghavendra Rao
To 130.
Unidentified Participant
Okay. Okay. And like what is the increment revenue that we can get from this facility?
Bondada Raghavendra Rao
So whatever that actually we have projected for this financial year. And even going forward for next five, six years. It will cater those revenue revenues. When you. When you see this. Actually our existing business versus versus even new initiatives that we are doing. That we are thinking for next four or five years that that ratio of that revenue revenue. Add that revenue constitution is almost around 30%. So for that reason actually this band will make advantage for us in in future.
Unidentified Participant
Okay. Okay. Understood. And when will we commission this plant?
Bondada Raghavendra Rao
It takes one year.
Unidentified Participant
So we’ll expect any incremental revenue from this facility in FY28.
Bondada Raghavendra Rao
We already plotted that this financial year numbers without this plant. This is for future
Unidentified Participant
Next year there is going to be some incremental revenue register.
Unidentified Participant
Okay. Okay. Yes. That is already considered
Unidentified Participant
In our business model. Other.
Unidentified Participant
Okay. Thank you so much.
Unidentified Participant
Thank you. Thank you.
Unidentified Participant
We’ll take the question from Mr. Prem Kumar. Mr. Prem, please.
Unidentified Participant
Sir, congratulations on the great year, sir. So we hope same would continue. Sir, my question is on one of the biggest orders for you. That is from Adani. Around 1050 crores. Which was disclosed in the earlier presentation as well. Just wanted to check on the status of the project, sir. Whether the specific of the project. Sir. Whether the land has been allocated. What exactly is happening? Supply has started all those things, sir. And also I want to highlight. Sir, this presentation was not shared to to on BSC website.
Sir. Maybe after this shared. Just
Unidentified Participant
30 minutes before it is
Bondada Raghavendra Rao
Shared. You can. You can now check and actually you can download it now. It is already shared shared.
Unidentified Participant
There is a little delay because of some technical issues. Yeah.
Bondada Raghavendra Rao
We already shared that presentation in bse. You can check it and verify. That is number one. Number two is Adani order which we have received a few months back. That is already under execution. Because actually after having the land and after having the connectivity only Adani is allotting the project to allotted the project to us. And this is in midway. This. This plant needs to be commissioned by next March. So already I think we have executed around 20% even few crores. I think almost around 70, 80 crores.
Even billing is also billing. Billing is also done with Adan. It is under full swing. It is under under construction under wip. And which we are in fact as of now actually which we are little ahead of timelines of this project.
Unidentified Participant
Thank you. We’ll take the next question from the line of. Mr. Mo, Mr. Mo, you can unmute and go ahead please.
Unidentified Participant
Good afternoon sir. Good morning.
Unidentified Participant
Last year our target for 2030 was to achieve 10 gigawatts of capacity. And last year we upgraded it to 1025 gigawatts. So initially our target revenue for 2030 was $1 billion. So like are we going to expect any additional revenue as well? Because the target expanded by 1.25 times. So can we expect similar revenue expansion by 2030 as well? I
Bondada Raghavendra Rao
Think $1 billion revenue in compensation with 25 gigawatt only. Because in 25 gigawatt most of most of the orders are coming from EPC. EPC segment. That is, that is also by. So I think one billion dollars. One billion dollar revenue consideration with 25 gigawatt of target only.
Unidentified Participant
Okay. And so we got the Adani order I think in the month of August last year. So are we expecting any follow up orders? So I read in the news that Adani is also expanding massively in best segment. So are we expecting any orders in that as well?
Bondada Raghavendra Rao
Yeah, but this is actually once it is commissioned, the first order actually immediately they are going to you. And now we are already discussing with one more follow up order actually repeated repeat it and Adani orders are going to come for next three to four years continuously.
Unidentified Participant
Also sir, in revenue our guidance was to achieve around 3002100 to 200 crores. But we ended up with 2800 crores something. So like in which segment did we lack to mean? I think we’re projecting 100 revenue growth but I think we ended up achieving 80%.
Bondada Raghavendra Rao
So I think Moyes, maybe that is your assumptions. You never given 3100, 3200%
Unidentified Participant
Growth. No sir. Like year round here
Bondada Raghavendra Rao
We are always giving. We are always giving around 80 to 90% growth. But almost all the segments have actually performed well this, this financial year.
R. Srinivas
100% is generally the expectations from the well wishers like you Mo.
Unidentified Participant
Thank you. So next year are we expecting like around same 80% or it’s going to be lower?
Bondada Raghavendra Rao
Yeah, maybe around 70%. 60
Unidentified Participant
To 70% can be expected for this year.
Unidentified Participant
Okay sir, thank you very much sir.
Unidentified Participant
Thank you. Thank you. Thank you. Mr. Mo. We’ll take the next question from the line of. Urisha, you can unmute and go ahead please.
Urmish Shah
Am I audible?
Bondada Raghavendra Rao
Yeah, you are audible.
Urmish Shah
Yeah. So thank you for the opportunity. My first question is on the data centers. You know, could you just throw some light on the MOU with Branston Inc. What is the Revenue potential are we seeing and how does the margin profile look for particularly data centers?
Bondada Raghavendra Rao
Yeah, so with the Brainstone I think during call during that presentation I already explained with Brainston or MOU says that actually Brainstone brings the data center hyperscale, hyperscaler operators and be here setting up the data center and handing over to them them including both connectivity and power connectivity as well as the communication connectivity is a fiber network and having a strategic play, strategic location and even making the shell out of this data centers. So one assignment is already on right now.
And this revenues from this data centers around 78% of our total revenue will be constituting this financial year. Around 78% of revenue from data center will constitute in this financial year. And coming back to the Ebitdas as of now, anything that actually 14 to 15% we are looking forward for this data center. Okay.
Urmish Shah
And that will be the run rate going forward also.
Bondada Raghavendra Rao
Yeah, yeah.
Urmish Shah
Okay. Okay, so next question is on defense. What was the rationale behind entering the defense sector? I do understand it’s an emerging sector, it’s an evergreen sector that way. But you know, why are we focusing, diversifying into defense rather than focusing more on data centers and our core expertise?
Unidentified Participant
Yeah,
R. Srinivas
Yeah, that’s a good question. The voice Right now our like ratio between the EPC contracts and the products is about 90 to 10, which we would like to you know, upgrade towards, you know, products with the ratio of 70 to 30. So in the products, the possibly the best, you know, the, the product array that you can have is from the defense where your, you know, margins can be higher. And plus we also were actually keenly looking at intellectualize our products rather than, you know, being in the, in the regular.
No, no, you know, like exclusivity products to a few exclusive intellectual property based, you know, like products. So that is like defense fits in that particular aspiration of ours very well. And that’s the reason for you know, like getting into depth.
Urmish Shah
So but those, as I see in your presentation that you mentioned critical components. Could you just give some more color on what type of components are those and whether it will be low value, high margin. Is that the way we should look at it?
R. Srinivas
Yeah, yeah. To start with, these ones will be middle, medium value and then like larger numbers which are. Our first order that we backed was actually a missile component for the prototypes we have supplied. On successful completion of the trials, we will be getting, you know, multiple orders for this, for this, you know, like regular production. So that like value of that component is a very high precision medium Value item that is or typically if you do an ABC analysis of course it comes under you know, class C category C kind of a thing and we will be slowly graduating to you know, higher categories of products.
Urmish Shah
Right. So one final question before I join back. This quarter we have seen a slight dip in the margins. Could you just throw some more light on it? You know what was the reason?
R. Srinivas
No, but if you look at annually it is actually highlight is increased but accumulatively if you specific
Unidentified Participant
Specific.
Urmish Shah
But if I see yoy also it or you know, sorry Q1Q. It’s been a slight dip so I just wanted to know if there was some particular reason for that or.
Unidentified Participant
Yeah, there are, there are two major reasons. One is in the last quarter actually we have booked some low margin projects billing in this fourth quarter and second reason, second reason being there is little increase in the material costs particularly in terms of renewable energy. Steel and cable prices gone up little higher. So because of that also there is a little increase in the cost of material. These two actually ended up in little dependence last quarter profitability. But if you see in the overall revenue of the overall profit of the year it is absolutely, absolutely.
It is increased by almost a kind of 30 base points. Last year we were at 7.2% and this year we were at 7 and a half percent closed.
Urmish Shah
Right. Okay. So I’ll join back for further questions. Thank you.
Unidentified Participant
Thank you. Thank you so much.
Unidentified Participant
Thank you. We’ll take one question from chat from Mr. Ayush Sharma. So he says how are we generating 200 crores in revenue from 120 crores of plant and equipment and also receivables as a percentage percentage of revenue still remains elevated at nearly 27 to 28% of revenue. Do you still see the same trend continuing?
Unidentified Participant
Yeah. In terms of receivables. Answering to the second second question, 27 28% of overall revenue in receivables is very quite common in any APC company. In fact it is is better actually generally for any EPC company in that industry it is ranging from 30 to 35%.
Unidentified Participant
So we are,
Unidentified Participant
We are managing very well in terms of working capital management that that too if you see on the numbers we are operating cash flow we are positive by 125 crores. And in terms of net debt also if you see as of 31st March 2026 the company is hardly having any debt only in terms of classification we are showing some debt on balance sheet but otherwise if you net it off full, we are still having Cash surplus of about 100 crores. After, after netting of all the debt. Still the company is sitting on 100 crores of cash, cash positive.
So that way, that way we manage the working capital very well.
Bondada Raghavendra Rao
The first question actually, that 120 crores investment, 200 crores. We don’t, yeah, we don’t understand. No, actually what
Unidentified Participant
They’re asking is this integrated plant. We told 120 crores of investment and, but we never committed on the 200 source of revenue. Even if you
R. Srinivas
Look at the like today’s BGPL annual sales is about 200 EPLs is going to be possibly about one third of the new integrated plan. Correct. Even if you just go on then you know, replicate the same existing trend, it’s going to be around 200 plus crores.
Unidentified Participant
600 plus crores. Yeah, threefold. Even
R. Srinivas
If you just do this part alone, it’s going to be at least around 200k. But there are other, there are a lot of upgrades that we are looking at. We are adding additional facilities also to manufacture high precision items even for defense. And then also if you look at the new, you know, the battery technologies that we are, you know, foraying into all those, you know, like high precision, you know, like reactors for these, you know, best plants of. Yeah, like newer technologies, all those things are going to be manufactured in this, in this facility.
Yeah.
Unidentified Participant
So
R. Srinivas
Possibly you would have brought in the 200 crores from the present BGPL or this fabrication plant that we have that revenue. Correct. Am I right?
Unidentified Participant
But otherwise, otherwise with this 120 crores of. Yeah, he’s in charge with this 120 crores of capital investment. To give you a single answer, it’s. It can generate up to 1500-1800 crores of revenue per annum.
Bondada Raghavendra Rao
Yeah. Going forward. Going forward. Going forward.
Unidentified Participant
I hope we, we clarified the point.
Unidentified Participant
Yeah, thank you sir. We’ll take the next question from the line of Mr. A.Y. Sharf. Mr. A, you can unmute and go ahead please. Mr. Ayush,
Unidentified Participant
Am I audible?
Unidentified Participant
Yeah, yeah. Aish, you’re audible now. Good
Unidentified Participant
Morning and congratulations on the results. I just had a question on the current liabilities are the current liabilities of yours I think jumped from 171 crores to about 501 crores, which is about a 330 crore increase. Can you confirm how much of this is customer advances and from which specific projects? And obviously as you execute against these advances in the next year and receivables from those same projects accumulate before the final payment, your Gross working capital requirement will expand significantly.
So like what’s your peak working capital requirement in come about the next year and how are you funding it? Whether it’s advances, bank lines, internal accruals and also the average collection period from a PSU clients like nlc, ntpc, how is that changing and how will that change over the next 12 months?
Unidentified Participant
Okay, so I think you have three questions. We’ll clarify one by one. One. On the other current liabilities, we have two major components. One is advances from customers. We as of 31st March 2026, we have advances from customers to the tune of 150 crores which is a component of this 500 crore. And the second one is actually we have started using this THREADS facility to fund some of the MSME payments, MSME suppliers and vendor payments. So because of these two things actually it got shot up from 170 crore to 500 crores.
Both are, both are actually particularly for working capital management and both are giving a better results in terms of fund cost management. That is, that’s your point number one. And can you please tell me the second point? I did not get the second point for you.
Bondada Raghavendra Rao
We are going to manage your working capital. Working capital,
Unidentified Participant
Okay. That is on the working capital cycle. And third point, what you have asked is on the collections from the public sector. Things like NTPS and nnc. As of now, our experiences, we are getting very good payments from these PSU companies. Not only NLC and ntps. Even from Singer, any calories, even from Mahajanko. We are, we are managing the working capital of about 85 to 90 days with these companies. And we, we are sure that we will be continuing the same working capital cycle even for the PSU companies.
We are not seeing any kind of challenges at this point of time.
Unidentified Participant
Got it? Yeah. In fact in
Unidentified Participant
The last quarter, in the last quarter, major collections we have achieved from nlc, NTPC and so that, that way, that way we are comfortable. Isg.
Unidentified Participant
Okay. Okay, great. I just have one more question. On the AP2 gigawatt IPP project that kind of is worth like 9000 crores which has been disclosed but excluded from the official order book. So is this order confirmed or contingent? And if it’s confirmed then what’s the equity capital that Bondara needs to deploy to execute it? Because if it requires like a QIP or a rights issue then I guess we’ll need to understand that dilution risk.
Unidentified Participant
Yeah, it is a confirmed order book for sure. It is. 9,000 crores of order book is confirmed. It is on hand at this point of time. But why we have not included in the 7,100 crore is because it is separately seen as an SPV. This is a special purpose vehicle for which we need to install 2 gigawatt of plant time.
Satyanarayana Baratam
And since
Unidentified Participant
It is already on hand, we are showing it separately. That’s your point number one. And coming to second point, equity infusion in this project. It is, it will, it will happen in a phased manner. It will not happen in one go.
Unidentified Participant
Okay. So out
Unidentified Participant
Of this 2,000 gigawatt we have a timeline of almost two, three to four years of time.
Unidentified Participant
Okay. So
Unidentified Participant
Our idea is to start with once we pull the land and get the connectivity, we will be installing a 250megawatt of plant to start with. Once we complete that, then we will be adding another 500 megawatt. Likewise, over a period of till 2030, we will be installing the entire 2 gigawatt which will be giving revenue generation from 2031 onwards. So in, if you see in this phased manner first, for first 250 megawatts we will be requiring close to about 250 crores of equity infusion. So for 250 crores of equity infusion we have a lot of avenues.
We have, we have no issues on that. And moving forward as we go along, based on the timing and all, we can raise the equity which is required for the IPP2 gigawatt.
Unidentified Participant
Okay.
Unidentified Participant
We have a plan for that.
Unidentified Participant
Okay, great. And if I just may ask quick last question, so you said that the, this last quarter EBITA margins came down because of these low margin projects that you all did. Is that kind of a structural pressure from larger project sizes with thinner margins or like what’s your EBIT margin guidance that you would say for the next year? Is it like towards the 10.5% or will it be back to about 11, 11 and a half percent?
Unidentified Participant
EBITDA margins for this year will remain same or maybe we will have a little improved margins of by about 2030 base points here.
Unidentified Participant
Okay. Because
Unidentified Participant
Whatever order book we have as of 31st March 2026, the 7200 crores.
Unidentified Participant
Yeah.
Unidentified Participant
All projects are yielding good margins. So we don’t see this kind of fourth quarter dip in coming this year.
Unidentified Participant
Okay, perfect. Thank you so much.
Unidentified Participant
Thank you. Thank you.
Unidentified Participant
Yes sir, we’ll take one question from the chat from Mr. Prathamesh. What is the expected execution timeline for best orders and what is the expected IRR on best orders for the company? Also what are the, what Are the IR for the clients who are investing in the best Is it economical viable now now all the orders are policy driven. What is the customer profile for best order?
Bondada Raghavendra Rao
Yeah so huge is it’s surrounding between best projects. So this execution timelines is another for another one project is we have two projects. One is 400 megawatt hour in Tamil Nadu and 450 megawatt hour in AP. That 400 megawatt hour needs to be completed next one year and then 450 megawatt hour needs to be Completed company next 18 months time. So for these two projects IRRs are ranging between anything between 13 to 14%. And the first project Tamil Nadu is already financial closed is done and then Kendra bank is funding funding for this project and AP project financial closer is at to done.
We have the time because recently we made the best buy agreement and banks are in many banks are in line to give us give us the funding. And this is these two projects are absolutely in line with the framework of MNRE guidelines and then MNRE guidelines even these two projects are having that VGF facility also from the MNREA. So these two. Okay, whatever that we are having two projects it is very viable and in terms
Unidentified Participant
Of IRR it is 13 to 14%. And in times of timelines what he’s asking is this Tamil Nadu we will be completing in this year hopefully and EIP might I think it it will take next half year. Next year of first half. First half.
Unidentified Participant
Okay sir, so there’s one more question from him. What is the cost of 100 megawatt R for customers and what is the EPC portion of that
R. Srinivas
Solar or best
Unidentified Participant
Question is not clear.
R. Srinivas
Megawatt R pass.
Unidentified Participant
No. So what is the cost of. So he’s asking what is the cost of 100 megawatt hour for the customers.
Unidentified Participant
Depends on so many parameters. It all depends on the scope of work. What we agree with the customer. So maybe what we can do if at all we can meet sometime personally we can explain him everything here instead of answering in the car. We may
Bondada Raghavendra Rao
Not able to tell that actually what is the cost of per megawatt hour in this public forum Actually is something. It is confidential. And second one is this all as SA told that is all depends upon the scope of the work actually. But everybody knows that actually what is the battery price of per kilowatt now actually is anything customer
R. Srinivas
The cost is only the tariff for
Bondada Raghavendra Rao
Customer. For customer it is a tariff for us epc, epc EPC depends upon the various parameters and specification of the customer. Why? Because actually lot of specifications are prevailing around this actually is a one single cycle, two cycle two hour storage four hour storage argumentation. So many things actually ac, AC scope, DC scope. So many things are there Actually I think we’ll able to explain him in one to one may not be in this forum.
Unidentified Participant
Sure. Thank you sir. We’ll take the next question from the line of Shanik PETA. Shanik, you can unmute and go ahead please.
Unidentified Participant
I wanted to understand how you see this Bondada engineering company in terms of the positioning. You were always seen as an EPC company. Now with this 2 megawatt of IPP, 2 gigawatt of IPP and also the 850 megawatt of the BO project this will certainly shift very significantly. So what is the expected. I know you answered a bit of this in terms of the overall CapEx in the projected IRR but do you see these two parameters moving significantly in the next two three years because of these two projects?
It
Bondada Raghavendra Rao
Next two years still EPC is going to be a significant revenue contributions EPC maybe in after two years actually this IPP is also will add. But actually going forward EPC is the major. Actually if. If I can say that by 28 financial year or 29 financial year EPC is still 50 60% is there even IPP contribution will come around 2030. That 20 to 25% rest products will occupy another 15 to 20%. These are the contribution that we are looking at
R. Srinivas
Even for our IPP projects. The EPC will be done by another arm of us. So you know like this will also be you know parallelly increasing.
Unidentified Participant
Yeah but the CapEx requirement are quite large. So the typical IRRs that you get in EPC are over 30% whereas the typical IRR that you get for IPP projects are typically around 12%. So that significantly changes the flavor of the company. So you think you see that this will happen not in the immediate next one or two years but more in the three to four year framework, right?
R. Srinivas
Yeah, but the. But the addition of exclusive products and again like foraying into defense is basically to. To you know like set that balance to. And then to keep up the irr. That’s
Unidentified Participant
That’s point number one. Second point in terms of best projects boo projects that IRR is at 12 to 13% but in terms of solar plants IPP solar plants that IRR would be anything in the range of 17 to 18%. So that’s again going to compensate our overall margin framework.
Unidentified Participant
Okay, and is that similar expectation for the. The Best projects also.
R. Srinivas
Yeah,
Unidentified Participant
Yeah,
R. Srinivas
Yeah, yeah. That’s actually whatever is that IRR mentioned, you know that like around the 13 is for taking into consideration the plant life of 12 years. But there’s going to be substantial life even beyond. If we’re able to develop a model where we are going to exploit the, you know, infrastructure from that, it is going to be much more now.
Unidentified Participant
Okay, thank you. Thank you. Shik.
Unidentified Participant
We’ll take the next question from the line of Karthik chain. Karthik, you can unmute and go please.
Unidentified Participant
Hi, are you able to hear me?
Unidentified Participant
Yeah, Karthik, please go. Good morning. Yeah,
Unidentified Participant
Hi. Good morning. I just wanted to check in the segmental breakup in FY26 that you have given. There’s a significant drop in the services revenue. Now what I understand is that the services revenue typically is the O and M part of your revenues that comes in. But it has declined from around 356 crores to about 140 crores. And I think that is one of the primary reasons for the margin profile that has changed in the last year. So is that understanding correct and what has happened in that segment particularly?
And is it going to be that going forward as well? Well,
Unidentified Participant
I think in terms of services you are asking on the segmental reporting, right?
Unidentified Participant
Yes.
Unidentified Participant
Okay. Okay. In terms of segmental reporting what happened is that some of the services actually we have included in this EPC services because it’s basically it is predominantly into epc but otherwise overall, whatever services we mean here is only OM services.
Unidentified Participant
Yeah, but O has it declined over. I mean over in a. As opposed to
Bondada Raghavendra Rao
Is increased. In fact YM is increased from 90 crores to almost crores. YM is not declined. I think this is. I think you are referring some wrong numbers. There is no decline in services as epc. It is a service actually. It is not a product actually as EPC itself is a service entire.
Unidentified Participant
Okay. Because in your. In your quarterly reporting on the consolidated basis the segmental reporting has been given that way. I mean
Bondada Raghavendra Rao
Maybe
Unidentified Participant
We. We will. We will also have a look at it. Yeah, yeah. Correct. So that is the first question.
Unidentified Participant
Yeah. What’s your second question?
Bondada Raghavendra Rao
Otherwise. Otherwise as a. As a margin profile it doesn’t change actually. In fact it is improved. It improved from last year. Last year. He is
Unidentified Participant
Referring to the last quarter. No,
Bondada Raghavendra Rao
No, no. In holy areas is improved. But I think that segmental reporting of the services we will check but actually there is no data di. There is no dip at all.
Unidentified Participant
Okay. Second is on the receivables part I mean what is the aging of the, the receivables? Because it is about 760 crores and how much of it is some
Unidentified Participant
87 days here that average aging is coming to 87 days.
Unidentified Participant
Okay. And all are considered good, right?
Unidentified Participant
Of course. Yeah. Yeah.
Unidentified Participant
Okay.
Unidentified Participant
There are, there are few, few outstandings which is more than one year. But that is as per the payment milestones.
Unidentified Participant
Okay, got it. Third is regarding the best. I mean is there any meaningful revenue that we are expecting in FY27?
Unidentified Participant
Yes. Yes. Your revenues
Unidentified Participant
Would be that approximately in FY27
R. Srinivas
Actually. Yes. As IPP,
Bondada Raghavendra Rao
I think that will start getting generated from FY28 first quarter.
Unidentified Participant
Okay, got it. As
Bondada Raghavendra Rao
Annuity, as annuity revenue, actually we will get it from next financial year. But as EPC we will get in this financial. In this
Unidentified Participant
Financial. Okay, got it. And what about data centers and defense and aerospace? I mean is there any meaningful contribution this financial year? I mean in the current one, FY27,
Bondada Raghavendra Rao
Definitely it will get stuck from this financial year, but it will, it is going to be go up in next three to four years. But definitely these two segments is going to contribute from this. This financially. Financially. Done.
Unidentified Participant
Got it. And in defense specifically we are going into precision manufacturing. Is it? So we are actually going to do the manufacturing part
R. Srinivas
System. Manufacturing of mechanical systems is only one of the arms.
Unidentified Participant
Okay.
R. Srinivas
We will also be working in rf. We will also be working in composites. We will also be working on the missile shields and these kind of of things. And we will also be doing to start with a few like subsystems for like larger systems in the RF and then microwave segment.
Unidentified Participant
Okay, got it. Great. I think that is all from my side. Thanks a lot and thank you. Thank you. Thanks
R. Srinivas
Mr. Karthik.
Unidentified Participant
We’ll take the next question from the line of. Mr. Sunil. Sunil, you can unmute and go ahead please. Sunil, you can unmute and go ahead.
Unidentified Participant
Can you hear me?
Urmish Shah
Yeah,
Unidentified Participant
Yeah. Good afternoon, sir. Just going back. Yeah, just going back to the Q4 margin which you said it is like one of. Because of the raw material prices and pressure on raw material prices. It has went down. So can we expect say between 11 to 12% of EBITDA and 7% of fat going forward?
Bondada Raghavendra Rao
Yes, very comfortably.
Unidentified Participant
Yeah.
Bondada Raghavendra Rao
Also I think.
Unidentified Participant
Yeah, yeah, thank you. Also I think you have mentioned in your earlier con call that you will be cash flow positive and we can see that the cash flow is positive now. So can you. Yeah. Can you throw some light on how like cash flow become the positive
Unidentified Participant
Of Course, yes. So during the fourth quarter if you see our major focus was on collections of receivables only. Only during the fourth quarter itself if you see we have almost collected more than thousand crores of total receivables. And in the month of March alone we have collected almost a kind of 457 crores. So which made us to become cash positive from operations as of 31st March 2026. That’s point number one. And second point actually the last quarter of last year we have started using threads facility for making payments to this MSME suppliers and vendors which is giving us a 90 day vintage to make the payments to the threads.
And that too with a very cheaper cost of finance. These two actually made us to become cash positive as of March 2026. And we expect to continue the same kind of cash from operations even for this upcoming quarters. You got it sunil. Hello.
Unidentified Participant
Hello. I think I got muted.
Unidentified Participant
Yeah sir, I got that. Yeah, yeah. Also
Unidentified Participant
A last one if you can. So out of this 791crores of receiver as of 31st March how much is kind of received so far? Because we are almost at the close of april
Unidentified Participant
Out of 790. Yeah. As during this last 2425 days we have collected about 130 crores.
Unidentified Participant
Okay. Okay. Yeah. Yeah. Thank you sir.
Unidentified Participant
Thank you.
Unidentified Participant
Thank you Sunil. We’ll take the next question from the line of Suryan Chan. You can unmute and go ahead please.
Unidentified Participant
Hello. Good afternoon sir. So my one question to you is in Andhra Pradesh there is lot of booming in data center sector. So is there any major project or any major group of which your order is in pipeline related to data center?
Bondada Raghavendra Rao
Yeah, I think that’s what I’m keeping on explaining that actually we are already working on 1:1 assignment in Hyderabad itself. And we’re already in touch with almost all the hyperscalers for their fiber connectivity and as well as the power connectivity that round the clock power requirements and even even to establish establishing their shell data center shell. So we are already in touch with all the hyperscalers.
Unidentified Participant
Okay sir. Thank you sir.
Unidentified Participant
Thank you. We’ll take the next question from the line of Apurvaraj. Apurv. You can unmute and go ahead please.
Unidentified Participant
Hey, am I audible?
Bondada Raghavendra Rao
Yes,
Unidentified Participant
You’re audible.
Unidentified Participant
Thank you for the opportunity sir. Sir, regarding the bell order I understand the revenue is 4 million INR. I wanted to know a few details as far as the timeline of execution of this order. And what is this critical component exactly being talked about. If you can share it with us also where is the facility that you are planning to manufacture this critical component? And my second question related is do you have an operating vision for the defense play in your business till 2030?
R. Srinivas
Yeah, yeah. The, the component, the, the, the first question, the timeline is the execution time is another three months for it. We will be supplying the item in the next three months and coming to the component. This is for, for a missile, a critical component for missile uh which till the time the you know the, the the trials of the missile are executed we wouldn’t like to you know like reveal exactly the component which we are bound by an NDA with, with Bell for this. And once on successful completion of trials there will be regular, you know production, mass production for this.
So there will be the requirement of multiples and for this particular component. So that is that and we are going to add a similar more such, you know, products to in the next few years to come. That if you look at is the you know, large number items and we will also be in our, in our product line for defense. We also have you know like subsystems and also in the pipeline. So by about 2030, if you are talking about by 2030 we may also roll out a few products actually for direct use by defense forces as well as subsystems for you know, defense
Unidentified Participant
PSUs.
Unidentified Participant
Okay sir, thank you so much.
Unidentified Participant
Thank you. Apurva. We’ll take the next question from the line of Pranav. You can unmute and go ahead please
Unidentified Participant
Everyone and create set of results. First of all, my first question is very similar to what has already been requested. I think there is something wrong with the segmentation in the, in the what you’re provided to exchange because revenue goes down from 315 crores to 30 crores which is not understandable. So probably you need to have a look at it. But on the other hand if you can also provide in your presentation if you can add or if you can provide separately an understanding of what is what comes under EPC services and products.
It’ll help individual investors a lot. That’s one point. Second. Yeah, second thing I wanted to understand is you’ve mentioned there has been some impact on your margin in Q4 because of the increase in cost. What we’ve seen is the real increase of cost has happened in April with respect to steel or whatever. Do you expect this quarter will also have some impact on the margins because of the increase in energy and the commodity prices and are your contracts pass on contracts or you need to absorb the increase in cost once your contracts are already closed and before locking down.
My third question is recently there has been some best contracts which were awarded by NTPC and I think one to Coal India and I was not able to see Bondada even though they were in the region of Telangana and Andra. Were you, were you part of these tenders or what was the reason why Bonda was not a part to these tenders?
R. Srinivas
We will answer your like last question first. Most of the you know best contracts awarded in the in the recent past to you know various players in the best are actually like mostly you know like unviable. So we have, we have cautiously not participated in some of the tenders and then also wherever there is a reverse auction we have you know halted at a particular point there. So like that answers your last last question and our CFO will be addressing the first contingent. Sir
Unidentified Participant
Answer Actually though we have participated in tenders with NTPC for base because of our pricing. Actually we were not L1 and we don’t, we don’t want to. We have no regrets for them because because those projects are anyways unavailable as told by our group CEO s and
R. Srinivas
As of today in the best less you know space in the country the the RFPs issued by us are some kind of an industry benchmark. The people do follow the RFPs issued by us and then the conditions for this life cycle sustenance and then the warranty model that we have put are being considered as one of the best by the industry. And if we take a conscious call that you know be below this it will not be viable and you will not have you know assured IRRs on that one that is you can you know take it for granted is one of the best you know like industry judged.
You know remark.
Unidentified Participant
Yeah purposefully
Bondada Raghavendra Rao
The reason actually so it’s getting mad that actually people are coming and then participating in this question. We stayed away and reverse action. We have participated almost all the tenders we participated but we are stayed away in the reverse action because it is going beyond some certain threshold levels. That first question your answer is I think margin levels will remain same from last quarter to this quarter because actually if you see that these procurement has to happen actually prior to the execution after execution we have to build it.
So most of the materials we procured for this this quarter execution. So I think margin levels are intact are going to be intact in this quarter in going forward by adding these new projects and new products I think we will be maintaining the same Ebitdas and the same fat levels
Unidentified Participant
And One more thing Pranav, you told that steel prices increases from April month. It’s not correct. Actually it is increased in the last quarter of last year. Not only steel price, if you see on the cable prices also there is almost an increase of 17 to 18% in the last quarter.
R. Srinivas
There are actually two reasons for this increase. One is you know like normally like seasonal and the other one is owing to this, you know the present geopolitical. Geopolitical, you know situations those increases in the seasonal one since we know the pattern we have managed. But of course when this those coming out of geopolitical scenario we’ve actually slightly staggered our deliveries, you know, wherever the costs are very abnormally high.
Bondada Raghavendra Rao
Yeah, most of our contractors are actually few contracts are pass on and few contracts are fixed. So for the third question. Exactly
Unidentified Participant
Third question is correct. So for fourth quarter, whatever building we have planned for that that already orders are placed on the suppliers within the budgets in. So as confirmed by our CMD sir, mostly 4th 1st quarter we will not have, we will not have any dip on the ebitda. We are sure that we will be maintaining the same EBITA levels. Hope, hope this clarifies your question. Yeah,
Unidentified Participant
Thank you. We’ll take first questions from the line. Who have not, who have not got opportunity to ask the questions. The first question will be from Venkat Raman. Mr. Venkat, you can unmute and ask please.
Unidentified Participant
Thanks for the opportunity and. And congratulations to the management for great set of numbers. I have three strategic questions to the management. Apologies if you have already addressed us. One is there seems to be a market perception around the oversupply of solar capacity in India vis a vis the 2030 vision. How do you see this from your perspective and how do you see this, you know, affecting the prospects going forward? Second, I want to understand the geopolitical tensions you spoke about the raw material cost impact etc outside of that do you see those war situations fundamentally affecting in any way or shape for the business?
And third as with regards to the defense I know you mentioned some confidentiality etc compared to some of the other defense players that we see in the market like data patterns, Zentech and others. How do you want to be differentiated from the rest of the the players out there in the market? What is your NVSA’s positioning in the market as far as difference is concerned? Sir?
Bondada Raghavendra Rao
Yeah, I think first question I will answer. First question I will answer and second and third will be answered by rco. So this coming back to the over capacity is built by solar. It’s first of all that perception is wrong actually it’s not so over capacity is built actually capacities are even required even that 500 gigawatt to achieve even that 2047, 50% of net zero. 2070, 100% of net zero. It needs lot of capacities to be built. But intermittently what we are facing is actually one is that management of that peak hours and non peak hours where actually we don’t have that grid stability and grid connectivity availability.
And second one is, is a storage. These two things are actually very seriously prominently addressing by government of India. That is the reason I think actually a lot of storage projects are coming into the picture and also grid connectivity is being see seen as a very serious impact. And actually the way a lot of efforts are being put in this central utility transmissions and even state utility transmission. If these two things can be addressed very quickly. I think going forward in next 10 years actually this renewable energy capacity building is continuously going to be there and it, it is required.
It.
R. Srinivas
Yeah yeah. It’s only you know like perception because of the intermittency of both you know solar and wind. And then again the grid stability targets falling slightly behind the like renewable energy capacity creation. That that over capacity. What you said was a short thought that was felt and I think the government reacted very well. They are actually augmenting the grids. They are actually going for smarter grids. And then all these you know like best projects that are coming in are basically for getting the grid grid stability.
But otherwise if you look at the government of India’s 2030 target or even the 2047 target or otherwise the net zero, you know targets we need actually much more. And then going to your second question about the geopolitical scenario. This is not actually directly not going to impact us because most of our products, you know they come from the eastern part of the world or, or they are actually like indigenous products. The only thing that comes through these geopolitically, you know, sensitive area present are basically petroleum products.
Marginal impact of that particular one and hopefully even that is also going to get you know sorted out shortly. And then coming to the how different we are going to be as compared to the other defense players. One significant difference that we already shown is in the, in the very first year of our, you know coming into, coming into the defense area we backed our first critical component order which we are going to execute in the next two to three months. And you know that is a, that’s a very significant you know difference as compared to the other companies who, who Took some time to actually mark their first revenues.
And the coming to the other part how different we are going to. We. We are actually you know to come in to. To make our space in the defense segment we are relying more on inorganic growth wherein we are in the advanced talks with the. I mean another weeks away. We are going to you know acquire or you know like going in for merger of a few companies, three companies to be very precise with substantial you know the intellectual capital they will be coming in and we will be simultaneously working on meeting the small products requirement to medium subsystems requirement while working on the development of you know like independent products for direct use by the defense services.
That is how we make a distinction with others.
Unidentified Participant
Thank you sir. We’ll take the next question from the line of Mr. Surya Nayak. Mr. Surya, you can unmute and go ahead please. Can you. Can you speak a bit louder please?
Unidentified Participant
Yeah, yeah. Okay. Thank you. Thank you for opportunity. So one question is that what is the data centers wallet set we are targeting? If you can give a 1 megawatt of GR centers capex and in terms of RTC and cell what you have crack.
R. Srinivas
Yeah, yeah. What the the arrangement between us and like Rhinestone is to actually two outcomes. One with the brainstone is to have you know like ready to build data center parcels means that they land for and for meeting the requirement of you know like hyperscalers along with these connectivity and then also grid as well as data connectivity with. And then the subsequent ones for us is that we build you know shells over that for a ready to deployment to data center Again for like hyperscalers.
Hyperscaler is anything between you know a few megawatts of know capacity which generally comes in 20 to you know 40 acres of land.
Unidentified Participant
Okay so then. Then what is the wallet especially I mean there is an arrangement but generally what we target.
Unidentified Participant
Your voice is not clear. Actually we are
Bondada Raghavendra Rao
Not able to understand your question.
Unidentified Participant
So what is what in terms of capex? Capex for the data center around whatever the amount is. So what would be the. What would be the. Our share. We are target out of that campus.
Bondada Raghavendra Rao
Actually we are not listening to that. It’s because actually it is a multi billion requirement of data centers but actually our activity here is at least to start with 2 gigawatt 3 gigawatt of data centers. Sorry megawatt is 2 megawatt and 3 megawatt of data center. So each megawatt is coming maybe around 35 to 40 crores of our scope of work actually. So that is the kind of sizes that we are starting maybe we can even. We can go even after the 10 megawatt of.10 megawatt size of the data centers.
Again we are talking about capex. We are not. We are not putting any capex in this actually we are making it ready and then giving back to the hyperscalers. So we are not going to sit on any capex in long term, very short term, maybe for six months or maybe up to seven, eight months. Actually we are going to create this and handing over to the developer data centers, data center operators.
Unidentified Participant
Thank you sir. Since we are overshooting the concord time I would request the management to give a closing comment if they wish to.
Bondada Raghavendra Rao
Yeah, I think it means that
Unidentified Participant
It’s okay. Answer session is over. Okay,
Bondada Raghavendra Rao
Thank you.
R. Srinivas
Cmd Garu will be giving his conclusions.
Bondada Raghavendra Rao
Thank you very much for taking all your busy schedules and participating in our earning call today and thank you very much for that very qualitative questions. I hope that actually we given answer for all of the. All of the. All of the questions and some of the observations are there in our presentation in the stock exchange that we will look into that and also if any further information is required you always can reach us to one to one on one so that actually we can clarify furthermore and thank you captivate team for arranging this call and thank you all.
Thank you very much.
Unidentified Participant
Thank you sir. All the participants can log off now. This is the end of the conference call.