Concord Enviro Systems Ltd (NSE: CEWATER) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Kanav Khanna — Investor Relations
Prayas Goel — Chairman and Managing Director
Prerak Goel — Executive Director
Anish Goel — Chief Financial Officer
Analysts:
Unidentified Participant
Sucrit D Patil — Analyst
Maulik Patel — Analyst
Soniya Varnekar — Analyst
Balasubramanian — Analyst
Dheeraj Ram — Analyst
Presentation:
operator
Good morning ladies and gentlemen and welcome to the Concorde Enviro Systems Ltd. Earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Kanav Khanna. Thank you. And over to you sir.
Kanav Khanna — Investor Relations
Thanks and good morning to all the participants on the call and thank you for joining our Q3 and 9 months FY26 earnings call of Concorde Enviro Systems Limited. Please note that we have mailed out the results to everyone and you can see it on our website. It’s also uploaded on the stock exchanges. In case you have not received it, you can write to us. We’ll be happy to send it over. And before we proceed to the call, let me remind you that the discussions may contain some forward looking statements and may invoke known or unknown risks, uncertainties and factors.
It must be viewed in the conjunction with our business model and could also cause future results or performance to vary significantly from what is expressed or implied. To take the results of this quarter and answered all your queries, we have the management of Concorde Enviro Systems Limited with us. Please welcome Mr. Priyas Goel, Chairman and Managing Director, Mr. Priya Goyal, Executive Director Mr. Anish Goyal Group CFO. We’ll be starting the call with a brief overview of the quarter gone past and then we’ll follow it up with some question and answers. Now with that being said, I’ll transfer the call to the management over to you.
Prayas Goel — Chairman and Managing Director
Hello, Good morning, My name is Prayas Goh. A very warm welcome to Concord Enviro’s third quarter and nine months FY26 earnings call. Thank you for taking the time to join us today. We are beginning a very exciting chapter of our journey with the launch of our HX stream heat exchanger products that we launched in Q3 and showcased the recently concluded Chemtech exhibition in Mumbai. This cements our place in the process industry where we can apply a mix of our membrane and thermal products generating higher value for the clients as well as getting a larger wallet share from the same clients.
The Etch Extreme Heat Exchanger, our next generation shelving tube system is engineered for highly corrosive industrial environments. This product directly complements our focus on waste heat recovery for zero liquid discharge applications in making the zeoliquid discharge not only greener but also lower in cost. This HX product range fits directly into flueglass carbon capture applications for both Concorde’s own carbon capture and utilization solutions and the broader carbon capture and utilization market where flue gas cooling is an inevitable first step. Our solution makes recovering energy a simplified step. The focus from the government through a budget allocation for carbon capture and utilization makes us very excited about the future opportunities in the near term for this product range.
We believe this complements our broader strategy of expanding beyond wastewater treatment into adjacent process separation and sustainability led applications such as solar, photovoltaics, green hydrogen, carbon capture and semiconductors. We will continue to share updates as these initiatives translate into commercial traction over the coming quarters. With the introduction of this product, Concord Enviro is leveraging its over three decades of experience in water and wastewater management and has evolved into a technology driven globally integrated solutions provider. Our focus continues to be on zero liquid discharge and energy efficient technologies that enable industries to meet their sustainability goals while optimizing life cycle costs.
Our businesses operate across three core systems and plants, consumables and spares and operational maintenance allowing us to serve the entire value chain from design and commissioning through long term performance optimization. In addition, our foray into compressed biogas last year is beginning to show early momentum with initial projects moving into execution during Q3FY26. Supported by a strengthened and experienced project team, we continue to serve a diversified client base across pharmaceuticals, chemicals, food and beverage, defense, automotive energy, steel, textile Reflecting the adaptability and scalability of our solutions, the order received from one of the largest tequila brands in Mexico is proof of the superiority of our solutions for wastewater globally.
In line with our strategy to strengthen our technology capabilities, we have also made a strategic investment of US$2million for an equity stake in a US based polymer company. This investment enhances our access to advanced material science capabilities and supports our long term product development roadmap. This is our second investment in the US in a membrane technology company on the raw effluent membrane space. We have expanded our field trials and are changing the face of wastewater treatment with our partnership with great technology companies in the international marketplace. FY26 we have also faced challenges with delayed project executions post Africa.
We have also seen delays in land acquisition for the DOO project Bimanbay taking by our service arm. This has resulted in rescheduling of delivery of the systems. Given these shifts SAP RE implementation taking place this quarter and higher engineering lead time for large projects. Currently on order for FY26, we are guiding towards the revenue of approximately 600 crore rupees, implying an expected growth band of 2% for the year. While near term execution timelines remain important, we believe this range reflects a balanced view of current visibility and and conversion schedules from an order book perspective. Our lifetime order book continues to remain very healthy with meaningful execution expected over the midterm.
That said, we recognize the need to enhance disclosure granularity going forward. We have issues TCB and ACB metrics this quarter so that investors can better track down inflow’s execution progress and recurring revenue visibility. Looking ahead to FY27, several growth drivers are beginning to take shape. We expect CETP related orders to start contributing supporting revenues in the next financial year. Export markets are also witnessing strong traction and we see this segment emerging as an important contributor to incremental growth. We therefore see a strong order book for FY27 to meet our growth targets for the year. Our Solutions as a service or SaaS business Roserv is scaling up meaningfully.
Water as a Service as a concept is gaining popularity the world over and we believe that partnering with the right local partners will help us scale up proserve to the heights it can achieve. Our focus on the solar PV industry has resulted in our first order consisting of both ultra pure water and wastewater recycling and reuse. The systems supplied to a leading power company to generate desalinated water for solar panel cleaning have also been successfully commissioned at a large solar farm in West Western India. We believe this segment will continue to scale steadily. The energy efficiency of our solutions is what drives us apart from others and is being recognized by the market.
Discussions with other leading industries in the solar PV manufacturing space are currently at an advanced negotiation stage and we expect momentum in this area to build from Q4 onwards. Overall, we remain focused on execution discipline, strengthening technology differentiation and building diversified growth drivers across geographies and segments. With that, I’d like to now hand over to Mr. Prayag, Goal executive Director to walk you through the financial performance for Q3 and nine months of FY26. Thank you.
Prerak Goel — Executive Director
Thank you Pras. Good morning everyone. For the quarter ended December 25, revenue of firm operations stood at 1,245.75 million compared to 1,248.45 million in Q2 and 1,228.21 million in Q3FY25 reflecting a marginal decline of 0.2% quarter on quarter and a growth of about 1.4% year on year. EBITDA for the quarter stood at 43 million compared to 76.57 million in Q2FY26 and 17.15 million in Q3FY25. This represents a decline of 43.8% sequentially while growing at 150.7% year on year. EBITDA margin for the quarter stood at 3.5% compared to 6.1% in Q2FY26 and 1.4% in Q3FY25. Net loss for the net loss after tax for the quarter stood at 81.77 million compared to a net profit of 44.91 billion in quarter two FY26 and a net loss of 85.64 million in Q3 FY25.
For the nine month period ended December 25, revenue from operations stood at 3518.12 million as against 3874.46 million in the corresponding period last year, reflecting a decline of 9.2% year on year. EBITDA for the nine month period stood at 110.69 million compared to 342.91 million in the corresponding period last year, reflecting a decline of about 67.7% year on year. EBITDA margins for nine month FY26 stood at 3.1% versus 8.9% in nine month FY25. The net profit after tax for the nine month period stood at 44.33 million compared to 43.62 million in the corresponding period last year.
While the near term performance reflects the impact of project delays, our order visibility remains strong. We are confident that the strategic investments we are making in talent, technology and execution will enable us deliver sustainable long term value. With that we now open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets with while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assemble. We have the first question from the line of Sukrit D. Patel from Eyesight Pentrate Private Limited. Please go ahead.
Sucrit D Patil
Two questions My first question to the. CEO is Looking beyond the guidance which you have given, what will be the key priorities guiding the company’s strategy to strengthen growth and profitability. How do you plan to balance expansion in waste management services with sustaining margins over the next few quarters? That’s my first question. I’ll ask my second question after this. Thank you.
Prayas Goel
Yes, thank you. And that remains a strong priority for us in terms of balancing margins. And frankly the focus comes from differentiated technology and looking at value added solutions for the same industrial space. And I’ll take an example of the SOVA market where the type of solutions in the value add that Concorde as a solution provider delivers is very differentiated and which allows us to remain focused on margin. So that will remain a continued focus going forward.
Sucrit D Patil
Thank you. My second question to CFO is as Concorde plans forward, what financial signals will drive decisions on cost control, capital allocation and debt management? How will these signals influence long term earnings stability and shareholder value creation? Want to understand the plan of action and point of view on this? Thank you.
Prerak Goel
Yeah, so hi Prak here. So see, I think from a long term value creation perspective, you know we are obviously targeting the sectors which are adjacent to our business, our core business which is water and wastewater. We obviously see the need and the drive to, you know, move into larger project executions and that’s where the company has been pivoting to over the last few years, both in the international and the Indian market space. So I think we’re looking at sectors like CEDP et cetera, which will add or bring in that value. Now coming to capital allocation, etc.
The company has put in capacity over the last, I would say five to six years where we have built in enough strong capacity to be able to achieve our next scale of growth. The focus today remains on new products and technologies which we feel are big contributors to both our existing production technology and also expanding the market for ourselves, especially going into process industry or going into more value add components that we are seeing a demand for in the market. And currently let’s say there’s no other any other vendor who’s kind of creating that kind of product in the market so that that remains the strategic focus.
I’ll just hand over to Anish to add some more points.
Anish Goel
Hi Anish here. Regarding capital allocation and need for capital for up to with our recent IPO and the funds we have, we don’t see any need to raise any equity for at least couple of years or at least we are at least double the top line that we have today and we are adequately funded. So in terms of ROE or investors return, I think we will not ask for any more capital if that answers. Thank you.
Sucrit D Patil
Thank you and best wishes.
operator
Thank you. We have the next question from the line of admin. Shaw, an individual investor. Please go ahead.
Unidentified Participant
Hi sir, can you explain commented, but can you explain detail? I mean what is happening? Why is the execution lagging since last two quarters and you’ve cut the guidance for this year’s growth also. So I mean where is it that we are lagging? So I mean it’s quite long that the execution has somehow been not happening and the order book and the opportunity size is so huge.
Prayas Goel
Yeah, thank you. Yeah, yeah, thank you. Agam. I think, you know, there are a couple of things that have happened this year. I think last quarter we talked about the Kenya project which had got Revised to an FY27 because of some internal aspects at the client’s end. We’ve seen some similar kind of project delays that have taken place with a couple of our key clients. Also one of our projects which you know was being implemented by a leasing company had some land acquisition delays. So there too we missed one quarter’s, you know, let’s say execution.
What should have been done in Q3 is now looking to be a Q4 come Q1 sort of a number. And that was also one of our larger projects in this financial year. So yes, there has been some slippage in terms of execution, but there have been factors which have kind of been beyond our control as well. We are currently in the midst of an SAP RE implementation because obviously the company is realigning so that is creating some challenges in being able to catch up with execution in Q4. So that is the main reason why we are kind of lowering the guidance for this year.
Because given that we had a flat Q3 and the Q4 while being on track would only be able to help us reach our revenue target of 600 crores. So that’s really been the hit, I think long term the aspects that we’re putting into place for our long term growth in terms of our team building the project teams have come into place with the new products as well. We have teams in place. So I think it’s reflecting that over the next couple of quarters these things will stabilize and execution will be back on track. But yeah, there is a minor hit in, in this financial year because of this.
I just like to add to that.
Unidentified Participant
Hello, considering the two hits which happened this quarter. So I mean I’m talking in terms of longer term. So what are we doing? I mean, let’s say some other. It might happen next quarter, something else might come up. So what is the strategy out here or what is the thought process? Have you thought anything? I mean, how to tackle these things?
Prayas Goel
Yes, sir. So I think in recognizing the fact obviously that, you know, the growth has to be sustained. So what we are seeing is a couple of things. First and foremost, more importantly, we are seeing a stronger order book with a bigger focus on Q1 and Q2. And that’s what we are. If you look at the current order book, and we can probably separately talk granularly as well, to look at how the current order book is in fact going to transform into quarter one and quarter two deliveries. And secondly is more of the product diversification wherein we’re going to be getting in revenues not only from the core, the railway segment.
So these are two sections which would help things improve going forward.
Unidentified Participant
And on the new product which we have launched, can we expect commercialization and revenue from next quarter or the Q1 onwards?
Prayas Goel
Yes, we expect the ramp up orders to start. We are starting to receive orders in the squad in Q4 which will be for deliveries in Q1, FY27.
Unidentified Participant
Okay, okay. And any big projects which are working for the solar or the semiconductor space. Any big orders or anything which you have built for and can commercialize?
Prayas Goel
Yes, as we mentioned earlier, we are in the negotiation, negotiation, final negotiation stages with one of the largest players in this case. This is going to be a more grungy kind of play, but it’s a significantly large one. Along with that we are also in the final stages for a large steel and other metals and mining liquid discharge. So as Kedak mentioned earlier, from a ramp up to larger project sizes, there’s been quite a successful traction there. And if all goes well, we hope that we announce some good news very soon.
Unidentified Participant
What is the timeline for this? So I mean, when will you come to know whether we are winning the order or no or whatever it is?
Prayas Goel
It should be in the next six weeks.
Unidentified Participant
Next six weeks?
Prayas Goel
Yes.
Unidentified Participant
Okay. Okay, thank you.
operator
Thank you. We have the next question from the line of Molik Patel from Equity Security. Please go ahead.
Maulik Patel
Yeah, hi. Thanks for the opportunity. So I understand that we have some slippages in that 10 year order and one more order which led to this neutral execution in the Q3 and Q2. If I look at the gross margin, they have tipped significantly over the last year. And if I look at, if you just go back to one year before that, we used to have an MSM 43.7% of the gross margin three years back. Now we are about 37, 38%. So what’s leading to this kind of dip in the margin.
Prerak Goel
Hi, Malik. Sorry Malik. I’m not able to see the numbers that you’re reflecting because I think our gross margins have been pretty consistently stable. I think between the 48 to 51%. That’s where the band has been over the last, I mean, I would say couple of years in fact. So right now I think if you look at Q3, our gross margin is 49% and if you look at Q2, it was 50%. So I hope you’re calculating.
Maulik Patel
I consider service charges in a part of the cost only because it’s linked to that in that. And if you look at from that perspective. Yeah, so if I remove the service charge, we used to have close to around 53 gross margin in 3Q FY24, which was close to around 60% in a 3P of 25. Right. And last year and this quarter is close to around 49 or so. I mean, yeah, that number 50 or.
Prerak Goel
So, but yeah. Okay. No, I mean, see, honestly from a business perspective, we haven’t really seen any big change in, in margin or services because I think, see right now if you look at the O and M business, it’s, it’s, it’s kind of been under, let’s say, I mean from an overall percentage of overall turnover right now the O and M is probably higher. So therefore the service charges are higher. But yes, on the project execution side, the exports which are generally a slightly higher gross margin product have been lower. We have some export projects which will go out in Q4 as well.
So that will probably set right some of the numbers in terms of consumption. But overall on a granular level across the board for the organization, we’re not seeing any change in gross margins. What we have done over the last quarter is we have brought in the teams which are looking at implementation of the new heat exchanger business. These, the CBG business, those teams are strengthened. So in fact, the major hit that we’re seeing this year is because of the higher employee costs that have arisen because of this. Now part of that will obviously come from the growth.
The turnover to EBITDA will come once the growth from these divisions starts to scale up. But otherwise, on an overall water wastewater business perspective, I think we’re seeing margins to be pretty similar to what they have been.
Maulik Patel
In your assessment for the last. If I look at that first nine months, we have not seen any growth. We still expecting to, to do the same kind of revenue which was last. Year of around 600cr. Right. That implies close to around 250cr of top line four. Because see what’s happening is that every quarter we started the year with some around 18, 20% number. Then we came down to 12% growth number. Now we are talking about another kind of growth. Every quarter there has been a downward revision in the guidance. That’s number one. And is this guidance given that this financial year is very, very flattish number and you see that of the order to the main next. Next financial year. Next financial year can be very, very big number. Are we looking at the 30, 40% kind of a growth because of the slippage of this FY26 projects to the FY27?
Prerak Goel
Malik, I would probably not be able to comment on that completely right now. But I mean see, yeah, the orders are not gone away. The orders have just been, you know, delayed to FY27. So we have to look at execution. We have to look at a lot of other internal requirements while doing that. While yes, in principle that should translate especially we have seen good order traction in the last quarter. So if you see the order book, we have replaced more than what we have supplied in the last quarter and we continue to see that in fact even in this quarter our expectation is that our order book will exceed.
So given that execution challenges are there in the business with respect to certain contracts do move depending on what the client’s requirement is. We have a lot of sites where civil works are not completed. So therefore clients with daily deliveries. So these things do keep happening as projects keep getting executed. So I think that risk will remain with us. But yeah, I mean a lot of the orders which we are talking about are translating into revenue in FY27. So that should kind of add up numbers now whether that leads into 30, 40% growth, I would refrain from committing on that right now.
Maulik Patel
Sure. Great. Thank you.
operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. We have the next question from the line of Sonia Varneekar from Dalalan Rocha pms. Please go ahead. Hello.
Soniya Varnekar
Thank you for the opportunity. So last quarter in the con call you had revised your EBITDA margin guidance from 16 to to 15 to 16%. Now considering Q3’s performance, do you think for full year we’ll be able to deliver that 15 to 16% EBITDA margin?
Prerak Goel
No. Sonia. Hi Sonia. So there will be an impact because of the lower revenue? There will be an impact in terms of the ebitda I think, you know, given the higher employee costs and everything I think that’s almost. We’re looking at a 2 to 3% impact there. So. Yes, I mean, it would kind of go down. We’re looking at anywhere between 10 to 12% at the current moment.
Soniya Varnekar
Okay. And the thing what you were discussing that these orders which were impacted, there’s likely chance that it will come in FY27. So from FY27 perspective, will the margin come back to the same trajectory? This 15, 16 or 17% in that range, we’ll be able to achieve that.
Prerak Goel
Yeah. See, that’s the target. I think given that couple of the products that we’ve been working on over the last 12, 18 months are now at commercialization stage. So obviously a lot of that investment that has gone in there in developing products while testing them, obviously all of that will also kind of go away and start translating to margins. So our target EBITDA does remain between the 14 to 16% band for next year.
Soniya Varnekar
Okay. Okay, thank you, sir.
operator
Thank you. A reminder to all the participants, you may press Star and one to ask a question. We have the next question from the line of Bala Subramanian from Arihan Capital. Please go ahead.
Balasubramanian
Good morning, sir. Thank you so much for the opportunities, sir. Our 7.5 ton per day CO2 capture is capture pilot is slated for H2FY27. So I’m trying to understand the cost competitiveness and the penalties in this slide. The government penalty for non compliance is set to a 2x of the average carbon credit price. I’m trying to understand what the estimated levelized cost of cost of capture per ton for a ton of CO2 using your biological system. And obviously it should be below the penalty rate for that cost. I’m, I’m trying to understand what is the difference between the penalty rate and the cost of the cost of using our biological system.
So I’m trying to understand how this is scalable in future.
Prayas Goel
Good morning. So, yes, I, I think maybe we can share some information separately with you on the details of cost. But largely speaking there are two or three points which I’d like to highlight to you. One is that the biological carbon capture systems tend to be more capital efficient than the chemical capture systems. So there’s a significant advantage in the biological carbon capture kind of technology with heat recovery that we provide on the cost versus the penalty for not meeting the targets. It’s a function largely of the scale of the projects. And this is something which I guess we will have a little bit more clarity on once we are through with the pilots.
We are developing Models for the larger scale projects as well. And the third thing which I’d like to draw your attention to is that I think we have seen interest across the sector which is not only driven by the, by the penalty for not matching which is only let’s say limited to a set of sectors today. But we’re also seeing that there is genuine demand from switching over to, you know, becoming green, becoming carbon neutral from a customer driven focus which is textiles and pharmaceuticals, from export driven industries where selling to the EU for example.
There’s not necessarily a government set target in the Indian market space which is driving demand there. So there are a lot of factors but we’ll certainly reach out to you and share more information on the scale up and the cost economy.
operator
Does that answer your question?
Balasubramanian
Yes madam. For my next question, on the nuclear side we have seen lots of nuclear orders awarded to players in the industry. I’m trying to understand like what is the margin profile in our core area for especially in the nuclear specific. And secondly if you could touch upon green hydrogen site and especially what is the total addressable market share especially in electrolyzer cooling loop or the feed water for the hydrogen model side. Hello.
Prayas Goel
Yes, sorry. So the first part of your question is what’s. Could you please repeat the first part?
Balasubramanian
So first part like especially in the nuclear side nuclear grade desalination required a specific safety or quality certifications. That’s the first thing. Whether we have alter certification in place and whether we can able to participate alter nuclear related contracts. And what is the margin profile in those nuclear nuclear areas the margin profile is lower or higher because of stringent complaints cost.
Prayas Goel
What we’re seeing on the nuclear side is we have orders which are currently in the in under execution. So the margin profile we are seeing is quite, quite in the range of the regular margin. This remains significantly competitive space here.
Balasubramanian
Okay sir, on the second part in the green hydrogen side I’m trying to understand what is the total addressable market size for electrolyzer cooling loop and feed water for the hydrogen models and what are the opportunity size for output area.
Prayas Goel
As you have probably seen over the last few years this has been. There are several reports and numbers on the TAM in this segment but we have seen significant lag in terms of execution when projects being announced and actually kicking off ground. So my sense is that there is a significant difference on this and projects are moving slowly.
Balasubramanian
My last question I think we have entered into solar PV was and steel and semiconductor water treatment side and the solar PV side. What is the contract value and you could share further pipeline opportunity side. You can also, you can also share some details, detail support semiconductor. Because we have seen lot of fabrication plays are coming up like a micron power. I’m just trying to understand like what kind of inquiry pipelines we have. Oil, steel, semiconductor and.
Prayas Goel
Yeah, sorry, did you mention steel as well sir?
Balasubramanian
Yes sir. Waste picker system.
Prayas Goel
Yes, that’s right. So I think if you look at just the whole scheme, solar, semiconductor, the pipeline would probably be north of 800 crores at the current moment. Which is what I would call kind of the, you know the active, very active pipeline. On the, on the steel side it’s a lot of wastewater, liquid discharge, it’s a lot of liquor recovery which you know the industry spends a lot of money on external disposal. On the solar side we have some great solutions for dealing with the concentrated alkali and concentrated acid streams which is really a hazardous waste where the industry spends a lot of money again in really external disposal of these waste streams which we are today able to conveniently offer low cost greens or any type of models.
So between both the steel semiconductor and solar markets there’s considerable traction.
Balasubramanian
Okay, thank you sir.
Prayas Goel
Thank you.
operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. We will take the next question from the line of Dheeraj Ram, the BNK securities. Please go ahead.
Dheeraj Ram
Hi sir, thank you for taking up my question. So just circling back to the previous participants question. What is, what is giving the guidance of 600 crores maintaining for FY26 while in last call we’ve committed that some of our orders are in finalization of completion which is expected to give us the boost of top line margins which hasn’t happened so far. So what is giving the confidence to maintain it? 600 crores? 526.
Prerak Goel
Hi Devaj. These orders are currently firmed up. In fact I mean we’re midway through our quarter so a lot of this is also supplied. So right now we’re not banking on any new orders. This is basically all orders in hand which we are executing through to 31st of March. So the other 600 number should not go astray. We have a couple of discussions ongoing with respect to deliveries for the deferred projects. So they could go either ways. We’re still obviously hoping for the best. But I think as a conservative practice we’re giving a guidance which we know is again you know we’re going to try and meet.
Dheeraj Ram
Okay. And second one is your order inflow guidance in Q1. You’ve guided for 600 crores to 700 crores of order inflow. And even order inflow has also remained below your guidance. What order book do you want to close by the end of FY26? So. So that we can look up to FY27.
Prerak Goel
Yeah dear, so I think see there’s we have, I mean roughly about 300 odd crores is revenue that is coming from the after sales business, right? That’s the O and M and the spares and consumables. So I mean leaving that aside, I mean ideally we would like to. Our target is always to get to at least 1x coverage. Right? Now if you look at the current order book that we have, we are at about 60% coverage of let’s say a 20, 25% growth target for FY27. If we said that then we are at about 60% of that.
So yeah, we’re looking for anywhere between order intake of about 160 to 180 crores in this quarter. Obviously, as Priyas mentioned, we’re six weeks away from a large order discussion. So I think that is something that will shape up our order book. But given the three or four large projects that we have currently in pipeline, we’re bidding for that, I think if we do not win something which is imminent in this quarter, we’ll probably close out a couple of the larger projects by Q1 of FY27. So that should kind of give us a 1x coverage if not by the 31st of March, at least by the 30th of June for FY27.
Dheeraj Ram
Okay, this last question, sir. So the orders that you’ve seen for the delay in this financial year this has rolled forward to FY27. What is the kind of margins that you’re expecting? Do we still have any margin dilute to orders in the order book? Apart from those few orders which were delayed?
Prerak Goel
I mean see they’re not margin dilutive. It’s more like the shift has happened. So delivery and top line will get booked in the next year. But I think if you look at our current order book, the mix of orders that we have are pretty healthy. It’s quite regular for our business. So if you ignore the increase in manpower cost that we’ve seen this year, slight increase in expenses, I wouldn’t say our gross margins are really moving too much. They’re pretty much in the same band. So it’s just a translation to EBITDA because of some of these expenses that is going to be a little bit Margin negative.
So as I said, we are targeting between 10% to 12% EBITDA for this financial year, which is lower than the 14% that we had. But that’s purely a hit because of the lower absorption of fixed overheads to the top line that we are now projecting.
Dheeraj Ram
Okay, okay, this last question. I’ll come back in the game since you’re talking about some large orders. Previously we have seen working capital getting affected due to some large orders from the igo. Now again, you’re talking about some large orders. So do we see an increase from current levels of working capital next year? Or how do we have to see this?
Anish Goel
Hi, Anish here. Yes, Diageo. There was working capital which got there. The project is already executed so that working capital will be allocated in these projects. So there will not be any increase. And now these projects are little smaller in chunks than what Diago as a single project was. We don’t see any increase in working capital. Rather there will be some 5 to 10% reduction.
Dheeraj Ram
Only got any target of working capital days that you want to have? Sir, for FY27, it will be in.
Anish Goel
The same range today. On a net net working capital, we are close to 127 days. We will be closer to 121, 25 days while we’ll attempt to reduce the days even more. Thank you.
Dheeraj Ram
Okay, thank you.
operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. We have the next question from the line of Siddharth Biani, an individual investor. Please go ahead.
Unidentified Participant
Hello? Yeah, am I audible?
Prerak Goel
Yes,
Unidentified Participant
hi. Good morning. So just wanted to understand that last quarter you had guided that, you know, there were a couple of CBG projects that you are looking at for an execution perspective starting Q3. Just wanted to get an update on that. And how are you looking at the overall landscape? Because we are seeing that, you know, there have been a lot of CBG plans that are getting implemented under the setup scheme. So just wanted some thoughts from you on that.
Prayas Goel
Yes, hi. Yeah, so the current kind of project that we have, they’ve started execution in Q3 and I think we will complete most of it by Q1 end of Q1. From the current order book standpoint, we are seeing good inquiry traction as well. There are from standalone operators to larger kind of more consolidated players who are looking for good technology, low energy, captive energy consumption and reliability in terms of operations. So we have several active conversations ongoing with customers. We definitely see this to be interesting for FY27.
Unidentified Participant
Okay, sure, sir. And just one more follow up. There was I think the last service call you had, you know informed us about a desalination project where you were in. You were sort of shortlisted as the L1 for that entire project. Any updates on that project if it is going forward or not?
Prayas Goel
Yeah, that’s converted to an order. It’s an order book this year, this quarter.
Unidentified Participant
Okay, thank you so much sir.
operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. As there are no further questions from the participants. That concludes the question and answer session. I now hand the conference back to the management for closing comments. Thank you and over to you sir.
Prayas Goel
Thank you everyone for your time. We look forward to speaking to you in the next quarter. Thank you.
Prerak Goel
Thank you.
operator
Thank you members of the management on behalf of Concorde Enviro Systems Ltd. That concludes this conference. Thank you for joining with us today. And you may now disconnect your lines.