Ceigall India Ltd (NSE: CEIGALL) Q1 2026 Earnings Call dated Aug. 08, 2025
Corporate Participants:
Ramneek Sehgal — Ceigall India Limited
Bhagat Singh — Ceigall India Limited
Analysts:
Aryan Sumra — Analyst
Vaibhav Shah — Analyst
Mohit Kumar — Analyst
Analyst
Jainam Jain — Analyst
Lokesh Kashikar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Ceigall India Limited Q1 FY ’26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Aryan Sumra from MUFG Intime. Thank you, and over to you, sir.
Aryan Sumra — Analyst
Thank you. Good evening, ladies and gentlemen. I welcome you all to the Q1 FY ’26 Earnings Conference Call for Ceigall India Limited. To discuss this quarter’s full year and business performance, we have from the management, Mr. Ramneek Sehgal, Chairman, Managing Director; Mr. Bhagat Singh, Group CFO; Mr. Kapil Agarwal, CFO.
Before we proceed with this call, I would like to mention that some of the statements made in today’s call may be forward-looking and may involve risks and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found on the company’s website.
Without further ado, I would like to hand the call over to the management for their opening comments, and then we’ll open the floor for Q&A. Thank you, and over to you, sir.
Ramneek Sehgal — Ceigall India Limited
Good evening, and good evening, everyone. This is Ramneek Sehgal. I’m pleased to welcome you to the Quarter 1 Financial Year ’26 Earnings Call for Ceigall India Limited. Our financial results and investor presentation have been uploaded on the stock exchanges. I trust you had a chance to review them. I’m joined by today by Bhagat Singh, our Group CFO; and Kapil Agarwal, our CFO.
Starting with the macroeconomic backdrop, the Indian economy continues to demonstrate strong resilience despite global headwinds, including the ongoing geopolitical tension and recently imposed tariffs by U.S., India’s GDP is expected to grow by approximately 6.3% in financial year ’26. Supported by robust infrastructure spending growth across key sectors as per the recent report by Fitch Rating, the first quarter of the financial year brought some initial headwinds, particularly due to the early monsoon activity in some states, which temporarily slowed construction activity. However, this space provided an opportunity to reinforce our operational foundation and enhance preparedness for the coming quarters. We are optimistic about business momentum improving as the year progresses.
The government continued emphasis on the urban and the rural development, metro expansion, transport infrastructure, transmission and distribution, a strong way to growth in the renewable business. The NHAI, for instance, is expected to bid out 124 road projects worth INR3.4 lakh crores in financial year ’26 across HAM, BOT and EPC model. We are well positioned to leverage these opportunities. The recent 50 basis point rate cut by RBI is another positive development, making project financing more cost effective, thereby improving margins and further supporting the sector’s growth.
Coming to our performance, we maintained stable momentum in quarter 1, supported by the diversified mix of EPC and HAM projects. In line with our long-term strategy, we continue to expand our portfolio across segments and geographies. Our dependence on highway projects is steadily decreasing as we strengthen our presence in railways, metros, tunneling, T&D renewable business and other underground infrastructure.
I’m pleased to share some exciting updates on our ongoing and upcoming projects. First, I’m happy to announce that both of our Ayodhya projects, Southern and Northern Ayodhya valued at INR23,116 million have now started. These projects mark another important step in strengthening our presence in this region. I am confident they will set a new benchmark execution qualities and time line.
In Punjab, out of 2 HAM projects, the date for one is scheduled before October, while the other is planned again before October. The company also infused INR4,198.41 million of the equity into HAM projects up to June 2025, an addition of INR759.6 million in July 2025, taking the total equity infusion to date to INR5,129.2 million. Post IPO, equity of INR2,592.5 million has been infused. This steady progress keeps us well on track with our commitment in the state.
On VRK 11 and 12 front, we have positive development to report. We are now expecting the Stage 1 clearance as early as possible, which will be a significant milestone moving these projects forward. Adding to our momentum, the recent NHAI MORTH circular dated 11th July 2025, introducing the new qualifying criteria is a great and a welcome change.
We have received 4 entities till date for Ceigall Malout Abohar Sadhuwali project amounting to INR1,771.23 million from NHAI. This development aligns well with our capabilities and will further escalate our growth in the infrastructure sector.
I am also delighted to share that we have now entered into transmission and distribution and renewable energy businesses. As a first win in this new vertical, we have emerged as L1 in Velgaon 400 kV substation tender worth INR4,900 million. This is a clear sign of our ability to diversify and complete strongly in emerging sectors. These achievements are not just milestones. They’re stepping stones towards our vision of becoming a leader across the multiple infrastructure domains. Let’s continue to work with the same passion, precision and purpose that have brought us this far.
On the legal front, the arbitral tribunal ruled in our favor in the matter of the Himachal Pradesh Works Department regarding the winding improvement of NH88. The award was of INR19.36 crores along with the future interest. Additionally, in the ongoing matter with Punjab Small-scale Industry and Export Corporation, we received a alternative reward of approximately INR3.17 crores, along with the applicable interest.
Our order book is well diversified across 8 states, minimizing both regional and project concentration risk. We are currently executing multiple mid- to large-sized projects across different sectors, which supports more balanced cash flow and faster execution time lines.
Now turning to the financials. Our stand-alone revenue from the operation, excluding the bonus and royalty rose to INR8,183 million in quarter 1 financial year ’26 at 8.7% increase from INR7,513 million in quarter 1 financial year ’25. EBITDA for the quarter stood at INR935 million, reflecting a margin of 11.42%, while the profit after the tax came at INR559 million with a PAT margin of 6.83%.
At June 30, 2025, order book stood at INR1,03,374 million, comprising 36.87% from EPC project, 61.75% from HAM project, 1.38% from BOT project. In terms of the verticals, 83.42% comes from elevated highways, structures and flyovers, 2.05% from tunnel, 13.15% from the railway and metro projects and remaining 1.3% from emerging segments like airport runway and bus terminals.
Now I would like to hand over the call to Group CFO, Bhagat Singh, who will take you through the financial — company’s financial performance. Thank you.
Bhagat Singh — Ceigall India Limited
Thank you, Ramneek, sir. Good evening. Good evening, everyone. I will now take you through the financial highlights for the first quarter FY ’26, beginning with the stand-alone performance. For Q1 FY ’26, revenue from operations, excluding bonus and royalty stood at INR8,183 million, representing 8.7% Y-o-Y growth from INR7,530 million in Q1 FY ’25.
EBITDA, again, excluding the bonus and royalty stood at INR935 million compared to INR961 million in the same quarter last year. This translates into an EBITDA margin of 11.42%, which is within the guidance which we have given in the earnings call. Profit after tax came at INR559 million compared to INR691 million in Q1 FY ’25.
On the debt side, our stand-alone gross debt stood at INR6,848 million, comprising of INR160.85 million in equipment loan, INR3,370.90 million in term loans and INR3,316.42 million in the working capital loans.
Moving on to the consol number for Q1 FY ’26. Revenue from operations, excluding bonus and royalty, reached at INR8,382 million, marking a 4.3% increase from INR8,038 million in the corresponding quarter last year. EBITDA for the quarter stood at INR1,091 million compared to INR1,225 million in Q1 FY ’25 with an EBITDA margin of 13.02%.
PAT for the quarter came at INR513 million, resulting in a net margin of 6.12%. On a consol basis, gross debt stood at INR14,247 million, including INR652.12 million in equipment term loan, INR3,558.40 million in term loan, INR6,720.06 million in the HAM term loan, and INR3,316.42 million in the working capital.
On net debt-to-equity ratio, it remained healthy for the company on a consol basis. We stood at 0.5 as on Q1 FY ’26. In terms of working capital, our net working capital days stood at 75 days as of 30th June 2025. This figure factors in inventory days, WIP days, receivable days.
On the execution front, we currently have 29 ongoing projects with a total order book of INR1,03,374 million. This includes 13 EPC projects, 8 HAM projects, 1 BOT project, covering a wide range of sectors, including roads, highways, tunnels, railways, metros, airports, runways and bus terminals. Importantly, NHAI projects contribute at 80.47% of our total order book with a diverse portfolio, strong order pipeline and continued focus of the government on the infrastructure development, we are very well positioned to sustain momentum and drive long-term growth.
With this, I conclude my opening remarks and open the floor for question and answer. Thank you.
Questions and Answers:
Operator
[Operator Instructions] The first question is from the line of Vaibhav Shah from JM Financial.
Vaibhav Shah
Sir, firstly, we haven’t removed the Bhubaneswar Metro from the order book. So there were some news that the project has been canceled. So what is the status on that?
Ramneek Sehgal
So that happened in July. And yes, we have removed it in our grant thing. Yes, that project got terminated by Delhi Metro because they were unable to start. From our side, we mobilized. We started the initial diversion and the piling work. So the government of Odisha wants to change the project into underground with double decor and they want to get a fresh contract for that. So yes, it has been terminated. We have already uploaded that on SEBI.
Vaibhav Shah
So will we be interested in the newer tender which comes out?
Ramneek Sehgal
Yes, why not? We already bid everywhere for metro. And we have already won a new vertical project, which is a T&D in Maharashtra, Velgaon, which is closer to INR500 crores. And in that, we have to build it in Velgaon and their annuity for next 35 years, annuity of about INR58.5 crores every year.
Vaibhav Shah
Okay. And sir, what work have been already done in the project Bhubaneswar? And what are the receivables? And have we received any mobilization advance from the client?
Ramneek Sehgal
Yes, we have received one shot of mobilization vans, but other we haven’t received it. And in fact, the department has to return our bank guarantees also. But they want to settle it. The discussion has already started. Yes, there would be a claim. We have already put one claim. The second claim is ongoing, and it should be submitted very soon.
Vaibhav Shah
So what are our net receivables as of now from the project — from the client?
Ramneek Sehgal
From this Bhubaneswar?
Vaibhav Shah
Yes.
Ramneek Sehgal
One second. How much is the — So we have already spent close to INR30 crores on this project and the claims are underway besides the machinery. Machinery, we have sent a lot of new machinery for this project, and we have established the camp also. So the team is already on the job to evaluate and submit a claim. And receivables, yes, as I said before, they have given us one part of the mobilization one. The second was never given. And the mobilization part, BG is also to be returned. And we are going to submit a fresh bill where diversion was done or other works were done. So it will be submitted very soon.
Vaibhav Shah
Okay. Sir, so mobilization advance would have been somewhere around INR30-odd crores, assuming it would be 5%?
Ramneek Sehgal
INR21 crores, INR21 crores.
Vaibhav Shah
INR21 crores. Okay. Sir, secondly, on the equity infusion front, so what our pending equity to be infused? And how much will be putting in ’26, ’27 and ’28?
Ramneek Sehgal
So I think it should be around INR800 crores. Exact number, Bhagat will tell.
Bhagat Singh
INR872 crores.
Ramneek Sehgal
INR872 crores. So typically, these large projects of 30 months, and we are targeting to put in the next 2.5 years. And the equity, which we’ve already infused, we’ve already shared in the call.
Vaibhav Shah
So can you give guidance for the entire year for ’26, ’27 and ’28?
Ramneek Sehgal
So only VRK 11 and 12 have not started. Otherwise, equity for Ludhiana, Bathinda and Ludhiana Southern bypass as per the requirement of the sanction letter, we will be putting our equity in next, say, about 24 months.
Vaibhav Shah
Okay. Okay. Sir, when do we expect to receive the appointed dates for VRK 11 and VRK 12?
Ramneek Sehgal
So VRK 11 and 12, we’ve been getting a positive response from the government of Jharkhand, where we are expecting to get the Stage 1 approval any time. Once the Stage 1 approval is there, I think we should get a appointed date.
Vaibhav Shah
So any guidance per se in 2Q or 3Q, are we targeting?
Ramneek Sehgal
So we are targeting that we should get it in 3Q, quarter 3.
Vaibhav Shah
For both the projects?
Ramneek Sehgal
Yes, yes, yes. We should. So they’re at the same stage. And for Punjab, we should get it one by next month, conservative.
Vaibhav Shah
Southern Ludhiana?
Ramneek Sehgal
Southern Ludhiana, October.
Vaibhav Shah
October. Moga-Barnala?
Ramneek Sehgal
Moga-Barnala is the same Ludhiana-Bathinda — that we should get it next month. We’ve already started the mobilization and the preconstruction activities there at the site.
Vaibhav Shah
Okay. Okay. And sir, lastly — last question from my end. In terms of guidance, so given the delay in ADs for VRK 11 and 12, and you are factoring a good amount of execution in ’26 itself. So are you revising the guidance for FY ’26?
Ramneek Sehgal
No. So since certain approvals are delayed by the government, so there, we are helpless. Otherwise, we are on track in terms of — we already started 2 projects in UP, that’s Ayodhya. And as per the earlier guidance, we are trying our level best to achieve that.
Vaibhav Shah
Sir, also — metro project also canceled. So revenue from that also has been.
Bhagat Singh
Yes. So the first quarter only got affected because of the metro project and the monsoon season, which started early because 3 of our sites have got affected due to the monsoon.
Vaibhav Shah
So we maintain our revenue guidance of 10% to 15%?
Ramneek Sehgal
Yes, yes, yes.
Vaibhav Shah
And margins of 11% to 12%, pure EPC?
Ramneek Sehgal
Yes.
Operator
The next question is from the line of Mohit Kumar from ICICI Securities.
Mohit Kumar
Is it fair to assume that all 6 projects where the work has not started, especially on HAM, we expect the date to be in place by this fiscal year? Is that a fair assumption?
Ramneek Sehgal
So thank you for the question. We have already started 2 projects, which is Southern Ayodhya and Northern Ayodhya bypass. Third one is getting started next month. Fourth one is getting started in October. And we are targeting quarter 3 for VRK 11 and 12. So we are really expecting all these projects will be started next year.
Mohit Kumar
Understood. Sir, my second question is, can you help us understand your entry in T&D, especially on TVC side? And what is your aspiration for this segment in medium term?
Ramneek Sehgal
So there are a lot of works and a few days back also, there was a news that government is going to spend in INR100 billion on T&D business. And we also see — as you know, we’ve acquired CNC, which has some machinery and expertise and PQ and in fact, team for working the team also has joined us.
We are really looking forward to growing this business as a lot of projects are available in the market in terms of the tariff-based plan. We’ve already are successful in one project, and we are waiting for the LOI. And we have quoted for other transmission line business also in the same department. And we are looking forward to add a good order book from this particular division. We’ve already quoted for a renewable business also. That is the KUSUM scheme in Madhya Pradesh.
Mohit Kumar
Understood, sir. My last question, sir, are you seeing the tenders pipeline from NHAI building up since NHAI is INR3.8 trillion? Or do you think this will most likely will happen in the second half of the fiscal?
Ramneek Sehgal
So good question. NHAI have done a cleanup in the last 1.5 years, where they were not going for tendering till the time land is available, like in the cases of our where the tenders are lotted and land was not available. Now till the time, the availability of the land is not bidding out. Now NHAI has announced 20, 25 days back that they’re coming up with a lot of tenders worth INR3.4 crores or something and in which about 70% is HAM, 20% is BOT and 10% is EPC.
My figures might vary 10%, 15%. This is what we’ve understood and we’ve got the list. So these tenders, we are targeting to launch in this year. And good thing about NHAI and MORTH, NHIDCL is they have changed the qualifying criteria, which happened on 11th of July last month, with which I really feel they would be a great tutor in our industry because earlier the competition level was crazy and now it will be a healthy competition because larger the net worth, you can get more contracts.
The prequalification, which was earlier diluted during the COVID has been reinstated and made a better one for large companies and companies like us. And we really look forward to it. And I think there will be no dearth of getting worse in NHAI as well. And in HAM also, so people will be — people have to plan and have to pick and choosy for these large projects from NHAI and MORTH.
Operator
The next question is from the line of Darshil Jhaveri from Crown Capital.
Analyst
So sir, just wanted to know like I think since the last few quarters, our order book has been in the range of around INR10,500 crores. So now how do we see that going forward? And just wanted to know like I think we have around INR5,000 crores of EPC contracts, right? So what is the execution period for same? And why the guidance for revenue is around 10%, 15% when we have such a decently big order book?
Ramneek Sehgal
So good question. Thank you. So the — we have a mixed order book of HAM, BOT and EPC. So typically, when we get a HAM tender, it takes about 1.5 years to 2 years to start the project. And EPC, it takes almost 5 to 6 months to start a project. Whereas these projects, the tenure of the projects ranges from 2 years to even 5 years.
So typically, our projects because we are doing specialized structure projects, we are doing country’s longest elevated, one of the longest elevated, which is Danapur-Bihta. So these projects are typically for 30 to — which goes up to 40 months also. And the revenue is divided into all 30 months. So it’s typically it’s like 2.5 years. So the order book, which we have guided before, which is about INR10,000 crores. So if we have to do it, it will be spreaded into 2.5 years.
Analyst
Okay. Okay. Fair enough, sir. So based on that also, I think per year, we should be crossing INR4,000 crores, right, even that base. And — I don’t know if we’ll be able to reach that this year. Is that a fair assumption, sir?
Ramneek Sehgal
So we have a target to reach there. And since we have got this new T&D business also, we are trying to get more orders also. And gradually, the order book value will also be increasing going — coming months in progress.
Analyst
Okay. Okay. Fair enough, sir. And sir, the new NHAI order that you’re speaking about that can come in. So what will be our targeted order inflow for this year?
Ramneek Sehgal
So our target is INR5,000 crores.
Analyst
Okay. Okay. INR5,000 crores is our target. And I just wanted to know like how is the competition intensity that you feel? Like is there very high? Will there be pricing pressure that can lead to some kind of margin issues? Or how do we see it, sir?
Ramneek Sehgal
So it was there before earlier. But now since the qualification criteria has been changed, so I think now the position will be changed, and we really look forward for doing healthy competition.
Analyst
So there would not be a situation of undercutting or something, everyone can enjoy healthy margins?
Ramneek Sehgal
Yes, yes, yes. So the large companies can only bid. More the network you have, you can get more contracts if you see this qualification.
Analyst
Okay. Okay. Fair enough, sir. And sir, just wanted to know just like I think pre-IPO, we were able to grow at 40% plus. So when do we see — be able to reach at least more than 25% growth target? Like how do we see ability to reach that, sir, again?
Ramneek Sehgal
We always try our level best, best of the team. They are putting the best ability and trying to execute at the level best and this team has done before, and we, as a Board, always try and management always try to push them for the best results and best. But as I said before, whatever we guide, we really want to achieve and maintain our stability there. Organically growing always helping companies becoming larger companies.
Analyst
Okay. Fair enough, sir. I just wanted to know like this Bhubaneswar project, like do we see any other kind of risk of some projects getting hampered down or some pause coming in or delay, any sort of that on ground do we see, sir?
Ramneek Sehgal
So not really at this moment. And otherwise, also, let me tell you one thing. Wherever the project gets terminated, government always pay for the termination payment. And as I said before, we have already put a claim, and we are going to put another claim very soon Delhi Metro. And eventually, yes, order book is the loss, but it might take 2, 3 years in getting the award.
If you see, we’ve already got one award payment in our account in first quarter and an award of INR19.36 crores from one of the NH project in Himachal and around another from in December. So that way the company is very well in the contract division matter. So eventually, there will be no loss. It might take some time till the time the award money comes into the account.
Analyst
Okay, fair. And just last question from my end, sir. Sir, overall on a consolidated basis, what kind of EBITDA margin is sustainable, sir?
Bhagat Singh
Sir, on a stand-alone basis, we have guided an EBITDA of 11% to 11.5% pure EPC EBITDA margin, excluding bonus and royalty. And we are targeting that whatever turnover guidance of 10% to 15% growth and EBITDA margin of 11% to 11.5%, pure EPC. We believe that we would be able to maintain the same in the future to come.
Yes. As Ramneek sir mentioned that we are entering into new domain, so company is trying its level best to generate value engineering in new verticals, and we are trying to generate delta over and above the guidance number. But that will depend upon the performance. And on a conservative note, we feel that whatever guidance we have given for turnover and EBITDA, we would be able to achieve the same.
Analyst
Okay. Okay. So just wanted to know, sir, previously, we’ve done 15% and our pure EPC is around 11%, 11.5%. So what’s the difference of delta? Like how did we — how are we able to achieve the extra 3%? Like could you just explain that, sir? I’m not — I’m new to the industry. That’s the only reason I’m asking that, sir.
Bhagat Singh
No problem. No problem. I give you a clarification. If you see our last earnings call, we have guided that our pure EPC EBITDA is 11% to 11.5%, that is by executing the EPC work. Over and above it, if you see the ladder to 15%, now what are the components which leads to 15% One is royalty, which depends upon situation to situation. Another is a bonus that is for early completion. Again, it depends whenever the project will be early completed and authority issue us the letter of abort or bonus, we will book it. Lastly is a claim that is again dependent on the situation.
So what we can say is as an investor or as a company, which we feel that we should take into consideration the pure EPC margin because over and above the journey from pure EPC to 15% depend upon situation, depend upon the facts and depend upon the contract, which may or may not arise. But yes, we are trying to maintain the consistency of pure EPC margin over a period of time.
One more thing I would like to clarify. Whatever we are talking about, it is a EPC margin of Ceigall India Limited. But whatever investments we have made in the HAM assets in the SPV, so whatever delta they are generating, that is being passed in the SPV. So that is also a profit of the company. But that will be earning will be booking or recognizing it in the books once the assets are monetized, either in the form of NOH or in the form of.
Operator
The next question is from the line of Jainam Jain from ICICI Securities.
Jainam Jain
Sir, as you said earlier that we’ll be retendering for new Bhubaneswar in Metro project. Sir, will we be given any preference within that project?
Ramneek Sehgal
Thank you. But there is no preference as such. There is no right to this. But yes, since we established there, we’ll try a level base to get the tender. But as such, there is no preference in the tender.
Jainam Jain
Okay, sir. And sir, my second question is?
Ramneek Sehgal
We have already constructed the casting yard.
Jainam Jain
Sir, my second question is what is the plan for asset monetization given the fact that has been already operational, Bathinda-Dhamali is also at the stage of completion and also Jalbehra Shahbad.
Ramneek Sehgal
So we are always open to discussion. We do it also. So we always wait for the right multiples. And whenever we get it and we get best price, we are ready to sell it. We are very open.
Jainam Jain
So are we looking to sell it out in this fiscal?
Ramneek Sehgal
So as I said before, it depends upon the right price. If we get it, why not? We are ready to sell it anytime.
Jainam Jain
Okay, sir. Sir, I wanted a couple of data points pertaining to working capital. Sir, can you help me with the inventory, trade receivables and trade payables number? Also If you have any distribution money?
Bhagat Singh
Yes, yes, sure. So as far as the working capital is concerned, so as on Q1 FY ’26, we have an inventory of 13 days. We have debtors of 5 days. We have a creditors of 102 days, and we have a WIP of 99 days. So in effect, my net working capital is 75 days.
Jainam Jain
Sir, can you give those in that — in the value terms?
Bhagat Singh
Come again, please?
Jainam Jain
Yes. Can you give the numbers in value terms?
Bhagat Singh
Yes, yes, please. So on a stand-alone basis, my debtors stood at INR841 crores. And on a consol basis, my debtors stood at INR529 crores. And apart from debtors, my inventory value is — and my inventory value is INR96 crores. My unbilled contract value is INR1,014 crores and my vendors are INR818 crores.
Jainam Jain
INR816 crores. Okay, sir. And sir — am I audible?
Bhagat Singh
Yes, yes, please.
Jainam Jain
Sir, my last question is what was the bonus and royalty income in the base quarter and in this quarter?
Bhagat Singh
What is the bonus?
Jainam Jain
Bonus and royalty income, which we have booked in Q1 FY ’25 and in this quarter?
Bhagat Singh
Those — there is no bonus or royalty income in this quarter. Whatever EBITDA we have quoted, what we have achieved in this quarter, that is a pure EPC EBITDA, what we have quoted in the press release that you see. So we have EBITDA of 11.42%, that is a purely EPC margin that we have generated.
Jainam Jain
And sir, in base quarter?
Bhagat Singh
See, we — any futuristic statement. But as I mentioned that as we are completing the Bathinda-Dhamali HAM project, so once the COD has been issued, it is likely, depending upon the issuer date, which is likely to be getting the bonus for the Bathinda-Dhamali HAM project.
Operator
The next question is from the line of Lokesh Kashikar from SMIFS Institutional Equities.
Lokesh Kashikar
Sir, a couple of questions from my side. Firstly, just wanted to get a sense on the NHAI pipeline. You have mentioned that it is around INR3.4 lakh crores. But what do you think what would be the realistic number for FY ’26, considering that there has been projects in the pipeline, but tendering was very muted in the past couple of years. So just wanted your sense, what would be the realistic number for awarding?
Ramneek Sehgal
So thank you so much for the question. NHAI, this NHAI only got it published, I think I was there in ET, as these are the projects they are looking forward to bid out very soon. And a few of them have been approved by the cabinet also. And the only and only thing where NHAI did not bid out was they were waiting for the land acquisition to happen. So that what has happened before that the projects were allotted and they were not started for 2, 2 years. They don’t want to repeat that kind of instance.
So that’s the reason NHAI allotments or projects got delayed, but now they are on right track and they have done a lot of homework. So they are ready to bid out these tenders and majority of the tenders are available and a few have got the cabinet approval also. So we are really looking forward to these tenders. And yes, you know it very well that NHAI has done it before also. It is just a matter of time.
And a good thing is the relaxation which everyone had in NHAI bidding process has been tightened. And now — where earlier, a person can bid at, say, 15% to 20% net worth, now it has gone to — minimum 20% net worth. And then second, there is a kind of bid capacity requirement, which is mandatory for all good companies, including us. And then the third one is the minimum single work requirement of 20% has gone to 30%. So only good large companies who have executed large projects will be only qualified for these large projects.
Lokesh Kashikar
Okay. So — but is it fair to assume that for this INR3.4 lakh crores of projects that the NHAI has mentioned, the land acquisition might be at the advanced stage. So the bidding would be happened very soon. Is it fair to assume?
Ramneek Sehgal
Yes. So — yes, the tenders which are already out, they’ve been doing a lot of working on that. And I really feel they have a constraint that they have to get the cabinet approval and a few of the projects they have started getting the cabinet approval also. We are very positive on these projects and fingers crossed that we’ll try and get maximum.
Lokesh Kashikar
And sir, secondly, on the bid pipeline in other segment where we are targeting, let’s say, in the T&D segment or in the tunnel or in the metro segment. So can you just highlight some bid pipeline on this segment as well?
Ramneek Sehgal
So there are a lot of cities which are coming up with metro. Some are coming underground, some are coming via ducts or elevated. We are keen to bid both types of projects. In fact, we were L2 in this Kolkata Metro. It was cut and cover underground metro. So for us, the state doesn’t matter, the region doesn’t matter. We’ve been bidding across the country. And you’ve seen us, we have already 11 states. So we worked everywhere. So that’s one point.
Second, we are working with the railway also. Today also, we have quoted one of the railway projects. And going forward, we have NHAI, we have 10, 11 departments. So we have a few projects. We are trying to get projects in renewable also and T&D business also. So T&D business is going to be a very big business. For us T&D, the good thing is it’s not only India, it’s international business also you can grow well. So T&D is going to be a very, very good vertical for us.
Lokesh Kashikar
Okay. So out of the targeted order inflow of INR5,000 crores, so what is our internal target to back projects from the other than road segment, around 20%, 25%?
Ramneek Sehgal
So if you ask me, we don’t have any such target. We keep on bidding. Right now also, we have quoted tenders worth INR16,000 crores. We — the HAM duty, we always target and plan in such a way that our project IRR should not be less than 25%. And for our EPC business, as we are getting the PAT and EBITDA about 11.5% to 12%. So we always target to bid on these things.
It doesn’t matter we get highway business, we get elevated, we get structure, we get airport, we get tunneling business. So it doesn’t matter because we have all kind of verticals, we have all kind of people with us. So we only and only target that we should get projects at.
Lokesh Kashikar
Okay. Okay. And just last few questions. Sir, what is the land status in the Varanasi-Ranchi Expressway project?
Ramneek Sehgal
So it is at an early stage where I think we should get the Stage 1 approval soon. Fingers are crossed. Once it is there, then we’ve already mobilized for these projects. The financial closure is already done. So we are very positive about these projects that these projects should start early.
Lokesh Kashikar
But sir, is there a possibility that the project will get canceled or something because we have secured the project 2 years back and nothing — we have not yet received appointed date. So is there a possibility that the project will get canceled or something like that?
Ramneek Sehgal
There are about 3 listed companies who are already having projects, 2, 2 projects each on this Expressway. And there are total 13 packages out of, I think, one is not bid out, 12 packages are already allotted. See difficult to — for NHAI also to terminate all these projects.
Terminating, they have to pay a lot of payment and they’ve already paid a lot of land acquisition. And these projects are almost 2, 2.5 years old. So I don’t think — we have not heard anything negative about these projects. So department is also really pushing hard to start these projects. And we’ve been getting only positivity about these projects.
Lokesh Kashikar
Okay. Okay. And sir, last one only. Out of this total order book of around INR10,300 crores, if you look at present, one has to exclude Bhubaneswar project of around INR800 crores, correct — INR900 crores?
Ramneek Sehgal
We have added also one project that is T&D project.
Lokesh Kashikar
Okay. So on INR10,300 crores minus INR900 crores, that comes to around INR9,400 crores plus around INR400 crores. So you are saying at present, it would be around INR9,800 crores, correct, closer to that?
Ramneek Sehgal
Something like that, yes.
Operator
The next question is from the line of Hitanshi Agarwal from AB Investments.
Analyst
Sir, my first question is our stand-alone and consolidated EBITDA margins have contracted on a year-on-year basis despite the revenue growth. So like what were the key drivers of this margin pressure? And do you see this on a temporary basis or like structural basis?
Bhagat Singh
So ma’am, if you see my EBITDA margins, first of all, I’ll let you know my stand-alone. So my stand-alone EBITDA margin, if you see from FY ’24 itself, so we are between 11% to 12% to 12.5%. So how we need to understand how we derive the EBITDA margin. It depends what sort of construction activity executed in the respective year or a quarter.
If the contract involves a lot of structural work, the EBITDA margin would be on a very higher side. It is a normal work without structural work, then it depends — it will be range between 11% to 11.5%. And I just want to quote the number. My FY ’24 EBITDA margin, excluding bonus and royalty was 13.64%. FY ’25, it is 12.24%. Q1 FY ’25 last year, it was 12.76%. And this quarter, it is 11.42%. So what we need to see is the company is generating the pure EPC margin, what they have given a guidance, that is 11% to 11.5%, number one.
Number two, can you talk about the consol numbers? So I just want to restate how we derive the consol. Consol depends upon stand-alone plus whatever profitability you dive upon from the HAM project. In HAM, in the case of HAM project, the profit arises when a contract is completed and you start the annuity. In the present case, as we have mentioned in the press release, that contract contract has already been completed.
We have already received amounting to INR177 crores, which has been duly accounted for. And accordingly, the EBITDA is increasing in the consol. This year, we are expecting that we are completing 2 more projects, that is Bathinda-Dhamali and Jalbehra. So we feel that consol number, this number could be on a higher side as compared to a stand-alone number.
Analyst
Okay. Okay. Got it. Got it. And sir, one question on the HAM project, the equity infusion, which we have done for this HAM project. So do you see our finance cost increasing in the future?
Bhagat Singh
No. See, whatever need to infuse, it will be infused in the SPV. And the source of equity is the cash accruals, which we are generating in the Ceigall India Limited. So there is no question of increasing the finance cost purely because of equity infusion. Because equity is infused from the sources, all equity sources rather than taking the borrowing from the bank.
Analyst
Okay. Okay. And sir, just a follow-up on the HAM. So what annuity visits are expected from the operational HAM assets in FY ’26 and ’27?
Ramneek Sehgal
Yes, of course.
Bhagat Singh
So we — as we said that in case of Malout we are already receiving an annualized annuity of INR100 crores to INR120 crores. And we are also expecting that COD, we are expecting the COD of the contracts precisely maximum by the end of the second quarter or the early part of the third quarter. So from — once the COD is issued, we will be likely to receive the annuity amount from these 2 projects also.
Analyst
Okay. Great. Great. And sir, just one last question. How do you see the equity requirement profile over the next 12 months? And is internal accrual sufficient or we’ll raise fresh debt or equity?
Bhagat Singh
Yes. So as we mentioned to the reply to the another query, the total equity which is pending to be infused is INR872 crores. This is the equity which we need to infuse over the remaining. Now as per the bank sanction, we get a sanction structure in a way that at the time and issued, we need to infuse only 30% of the equity.
Remaining will be issued in line with the progress of the report. So considering this 30% level, we believe that INR872 crores would be infused over next 2 half years. This is the first point. This I’m giving you a bifurcation of the equity.
Number two point, which is very important to understand. What are the sources of equity. Number one is cash accruals, which the company is getting. Number two is the unencumbered FDR, which we are having with us as we speak, which we normally keep on a month-to-month basis just to support the equity requirement of HAM, number two.
Number three, Malout HAM project was completed. Now we are in the process of getting it refinanced. Once it is refinanced, we would be getting a top-up amount ranging from INR120 crores to INR140 crores. This is from only pure Malout. Since we are expecting the COD of the remaining 2 projects in the third quarter this year, we will be getting it refinanced, and I’m expecting a top-up of close to INR200 crores from these 2 HAM projects.
So considering a top-up of INR200 crores from 2 HAM projects, INR125 crores to INR140 crores from Malout, I believe we would be having a source of — independent source of INR340 crores in the parent company, which we derive company to support the equity requirement. And this equity will not be for the existing HAM. Yes, it will enable me these 3 top-up amount, unencumbered FDR, independent cash accrual from Ceigall.
These 3 sources put together will provide me a very strong cash flow support for meeting the equity requirement of existing projects as well as the future HAM projects, which we feel, which we have already bidded, we feel, as Ramneek sir mentioned that we are expecting an order inflow of INR5,000 crores. So out of which whatever will be the proportion of equity, we feel that this total capital inflow will enable us to meet the equity requirement.
Operator
Ladies and gentlemen, in the interest of time, we’ll take this as the last question for today. I would now like to hand the conference over to Mr. Aryan Sumra from MUFG Intime for closing comments.
Aryan Sumra
I would like to thank the management for taking your time out for this conference call today. And also, I would like to thank all the participants for joining. If you have any further queries, feel free to reach us via MUFG Intime India Private Limited, Investor Relations Advisers for Ceigall India Limited. Thank you so much.
Operator
Thank you. On behalf of Ceigall India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Ramneek Sehgal
Thank you so much.
Bhagat Singh
Thank you.