Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Dilip Buildcon Limited (NSE: DBL) Q4 2026 Earnings Call dated May. 14, 2026
Corporate Participants:
Rohan Suryavanshi — Head, Strategy & Planning
Sanjay Kumar Bansal — Chief Financial Officer
Analysts:
Chaitanya Sathe — Analyst
Shravan Shah — Analyst
Sanjay Parekh — Analyst
Unidentified Participant
Darshika Khemka — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Dilip Buildcon Limited Q4FY26 earning conference call. As a reminder, all participant line will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. I now hand the conference over to Mr. Ashid Salyan from Act Factors PR. Thank you. And over to you sir.
Chaitanya Sathe — Analyst
Thank you. Good evening everyone and thank you for joining us today to discuss the audited financial performance for Q4 and FY26. I have with me Mr. Devendra Jain, MD and CEO Mr. Rohan Suryavanshi, Head Strategy and Planning, Mr. Sanjay Bansal, the CFO. Before we proceed, I would like to bring to your attention that certain statements made during this discussion may constitute forward looking statements. These statements are based on our current expectations, assumptions and beliefs regarding future developments and are inherently subject to various risks, uncertainties and factors beyond our control.
Such forward looking statements involve both known and unknown risks and we advise you to interpret them with caution. I will now hand over the call to Mr. Rohan Suryavanshi for his opening remarks. Thank you. And over to you sir.
Rohan Suryavanshi — Head, Strategy & Planning
Thank you and good evening everyone. On behalf of the whole DBL family, I extend a warm welcome to all our investors and analysts to our quarter four FY26 earnings conference call. The financial results and investor presentation for the quarter have already been uploaded on the stock exchanges and we trust that all of you had the opportunity to go through them. I’m very pleased to inform all our partners that this time we prepared a new presentation format which simplifies how one should look at our company given the new direction that we have embarked on.
It talks about our past, our current status and where we are intending to go into the future. It divides the company in three verticals, epc, the MD vertical and the Assets vertical. Now all these three verticals have different role. The EPC vertical is going to be the one building all the assets while the MDO and the asset business will continue to give us long term revenue, visibility and profitability. The reason why we have moved into direction, I have already enunciated in the earlier calls.
However, it is very important for me to point out right now that this strategic direction is very important for everyone to kind of pay attention to closely because by FY29 we anticipate 3/4 of our profits to be coming from long term assets and only 1/4 to be coming from our EPC business. That is the scale of ramp up that will happen in our asset business and the cash flows and profitability that it will provide. Along with taking a lion’s share in the profitability, it also is going to give us a visibility of the next 15 to 50 years of cash flow visibility.
As you are all aware, the EPC business only gives a visibility of 23 years. So having said that, let me now give you
Sanjay Kumar Bansal — Chief Financial Officer
Highlights
Rohan Suryavanshi — Head, Strategy & Planning
On the broader sector environment before which I talk about DBIL’s performance. The infrastructure sector continues to offer strong long term opportunities supported by sustained government focus on roads, railways and other sectors that we’re currently involved in now. During FY26 the average monthly tendering activity for the overall infrastructure sector by national and state governments put together remained healthy at rupees 1.4 trillion.
Shravan Shah — Analyst
However, this awarding activity was little sluggish
Rohan Suryavanshi — Head, Strategy & Planning
In terms of the initial FY26 target that the government had set. This was obviously on account of various state elections, regulatory scrutiny and other administrative delays, but we remain optimistic about the sector in the mid term
Sanjay Kumar Bansal — Chief Financial Officer
And the long term
Rohan Suryavanshi — Head, Strategy & Planning
Given the government’s continued focus
Sanjay Kumar Bansal — Chief Financial Officer
On building assets across the infrastructure vertical.
Rohan Suryavanshi — Head, Strategy & Planning
With all that positivity, there is also certain near term challenges. The ongoing geopolitical conflict and the elevated crude oil prices have led to inflationary pressures across fuel, bitumen, transportation and other key raw material costs impacting margins across the infrastructure industry. And in addition to this, the competitive intensity in bidding remains high in certain segments while delays in project approvals, land acquisition and receivable cycles continue to impact execution timelines.
Shravan Shah — Analyst
However, despite these challenges,
Rohan Suryavanshi — Head, Strategy & Planning
We believe the industry is gradually moving towards a more disciplined and execution led growth cycle. In this backdrop, we continue to focus on selective tendering by prioritizing high quality projects with better margin visibility, balanced risk reward and strong counterparties. Rather than pursuing scale only, we remain focused on maintaining execution discipline, strengthening operational efficiencies and preserving balance sheet strength which we believe will help us navigate near term volatility while positioning the company to benefit from long term infrastructure opportunities in India.
Now coming to DBL’s business performance, our performance this year must be viewed through the lens of the DBL 2.0 philosophy which which we have shared earlier and spoken about in the presentation. We have consistently communicated that our approach to order booking is selective. We are prioritizing profitability, cash flow visibility and return ratios over pure top line growth. Increasingly we view our EPC business not just as a volume driven profit center but as a capital efficient execution and incubation engine.
This engine allows us to create long duration monetizable platforms across diversified asset classes. I’m also very happy to report that for the FY26 DBL has secured total order inflows of rupees 18,548 crores, which is much higher than our original guided figure. We had also communicated this that we have exceeded that full year order inflow guidance earlier, but
Shravan Shah — Analyst
Quarter 426 has further
Rohan Suryavanshi — Head, Strategy & Planning
Added to it. Our order book today remains among the most diversified in the industry, providing strong visibility across multiple infrastructure segments without relying on any single one. Our current bid pipeline stands at Rupees eighty thousand crore plus across sectors. With optimum utilization of existing assets and a disciplined approach towards capital expenditure, the company continues to enhance capital efficiency and deliver improved return on investments. Now turning down to our mining vertical which is increasingly becoming an important driver of DBL’s long term earnings visibility and cash flow generation, our core MD operations have continued to scale up steadily during FY26, beating our own targets in terms of production and helping diversify a larger part of business away from the cyclicality of a traditional EPC business.
At the Pachwala at the Siarmal mine, quarter four production stood at 7.24 crore tonnes and cumulatively FY26 production stood at 22.35 crore tonnes, achieving full year production target. Similarly, the Pachwala coal mine continued its gradual ramp up with FY26 production closing at 6.37 million metric tons. So on a consolidated basis D bill coal production for FY26 stands at 28.72 million metric tons. Now we remain committed to achieving our annual coal production of around 57 million metric tons by FY29, which at its full capacity would represent a significant part of India’s total coal output and positioning DBL as a critical partner in the nation’s energy security.
As production scales up, further mining is expected to contribute meaningfully to the company’s EBITDA generation and overall cash flow strength. Our INVIT strategy continues to progress in line with the roadmap we had outlined earlier. Following the successful listing of anantham highways in VIT, we currently hold about rupees 1400 crores worth of units in the Anantham highways and around rupees 200 crores in the shrimp inwit, taking the total value of invit units on our balance sheet to nearly rupees 1600 crores.
Now this has created a long term platform for predictable distributions and structured deleveraging for the company. We also remain on track to transfer the remaining HAM assets in phases through March 2027. The next branch of 11 assets is expected to require less than 200 crores of incremental investment while generating invit units valued at around rupees 101800 crores, implying a net equity value creation of rupees 1500-1600 crores. Now while I’m explaining these other sectors, I also want to take this opportunity to debunk some commonly held perceptions about the company which we have also highlighted in the presentation.
The first perception is that we have made significant revenues from our state throughout our history or the past two decades. However, the data suggests otherwise. You would all be surprised to know that in the last 20 years only 10% of the total revenue that we have made has come from the state government of MP, while 90% has come from national government and other states. Now this is a very big important perception that I’m trying to correct that we have been working mostly outside our home state rather than in our own state.
Similarly, there has been a perception about our debt that has lingered since many years. And even though in the past our debt might have been higher than our peer groups as we were in a capex cycle and in a growing stage, our debt position today is very comfortable. And besides that we have significant assets against it, which was not the case in the past. Now coming to our debt position, outstanding Debt as of 03-31-2026 stood at approximately Rupees 1800 Crores at the standalone level and Rupees 7082 Crores at the console level.
Now the console obviously is because we keep building these new assets and it’s a temporary phenomena where as soon as we build the SPV and those are completed, we either sell them or we’re going to put them into our invidge. So it’s a temporary two, three year thing that we are going to do and it is all the revenues, future revenues of those assets are tagged against that. So it’s a very safe investment from that perspective. Now against our standalone debt of rupees 1880 crores, today we hold nearly 1600 crores of invit units on the balance sheet.
Had we chosen to sell all these units, our net debt would have been roughly 300 crore or so. But because we decided that we wanted to build a platform where we have cash flows coming in for the next 1520 years, we have decided to retain them as we realize we are in a very comfortable position going forward and we have a very good order book as well. Besides these INVIT units, let me also point out two assets that we already have. We also have about 1000 crores plus invested in under construction projects which will soon get transferred into the INVIT and generate additional invit units of like I mentioned, 1800 crores.
Similarly, we also have a gross block of little about 3600 crores on balance sheet which translates into about an 800 crores of net block. Now these assets are all debt free, these are all equipment that the company uses and we have no debt against it. So while our only working capital debt is shown, we have significant assets against all our debt. And more than this, as you have already said, our agenda is to be a near to be a net debt free balance sheet by the FY28. We are very confident of this because of the continued cash generation from our EPC operations, our MV operations and the growing income from our INVIT holdings.
So it’s a clear pathway that we see. So overall FY26, while it was a relatively challenging year for the infrastructure sector, we believe it also marked an important transition towards a more disciplined and execution oriented industry environment. Dilip buildcon, with its diversified order book, steadily scaling mining operations and a well defined INBIT monetization platform along with a continuous focus on capital efficiency, we are structurally positioned much better than before and as we move ahead our focus remains firmly on disciplined growth, execution, excellence, balance sheet strengthening and sustainable cash flow generation.
Now supported by the long term infrastructure opportunities in India and improving contribution from our own stable cash generating businesses, we remain confident in our ability to create sustainable long term value for all our stakeholders. Now with that I would like to hand over the call to our CFO Mr. Sanjay Bansal who would like to take you through the financial performance for the quarter in greater detail. Thank you.
Sanjay Kumar Bansal — Chief Financial Officer
Thank you Rohanji. Good evening to all. I will now briefly take you through the key highlights and financial performance for the quarter and full year ended 31st March 2026. During FY26 the company added projects worth 18,548 crores and completed projects worth 2,812 crores. As a result, the company continues to maintain a healthy and diversified order book with strong execution visibility across multiple infrastructure segments on standalone basis. The revenue for FY26 stood at 7005 crore as compared to 9004 crore in FY25 reflecting a YUI change of approximately 22.2%.
Negative EBITDA for the year stood at 734 crores against 903 crores in the previous year representing a YUI change of negative 18.72%. While the profit after tax to debt 841 crore is against rupees 311 crore in FY25. Now on console basis, FY26 revenue stood at 8984 crores as compared to rupees 12317 crore in previous year reflecting a YUI change of minus 20.62%. The consolidated EBITDA stood at rupees 17. 66 crore with an EBITDA margin of 19.65% while profit after tax stood at rupees 1398 crores is against rupees 840 crore in FY25.
With that overview we are now happy to open the floor for questions. Thank you.
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue you may press star. Participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of Shravan Shah from Daulat Capital. Please go ahead.
Questions and Answers:
Shravan Shah
Thank you sir. And congratulations on historic highest ever order inflow for us, 18,000 crore plus. And also good to see that the new presentation and particularly the MDO revenue profitability that you have said which we were asking from. So now a couple of questions. So first on the MDO front itself. So now we will be sharing this on a quarterly basis the MDO revenue profitability. What we have said on the front slide number 14.
Rohan Suryavanshi
Sure sir, we’ll be sharing it on a quarterly basis and thank you for your feedback. We understand you were asking for certain things but strategically what the company felt that this was the right time now to talk in greater detail about how we are planning to go ahead.
Shravan Shah
Yeah, so couple of questions on the MDO front. So is it possible for us to kind of a broader thought process in terms of the kind of one can say a guidance in terms of the broader. The revenue and the margin given the. We need to still do a whole handling plant capex for crmal. So obviously the depreciation will Increase. So how one can look at after two years kind of a maybe a profitability or margin at MDO level. And the related is how we are, we are thinking to kind of monetize this from the investors perspective.
So whoever holding DBL says how they will get benefited through this. The significant profitability that we have and obviously the revenue visibility. Significant.
Rohan Suryavanshi
Thank you Shamanji. I think that’s a great question. Obviously as any analyst you would like to understand how this business will shape up and how the profitability and the revenues will shape up. See the beauty about this business It’s a very simple to sort of project kind of business because every year by law we are supposed to do a contracted value and the pricing per ton that the government is going to pay for us is already set. So simply what you have to do is as you keep on expanding our volume that you’re providing every year if you just do a simple mathematical number that okay this year if DBL did this much.
So now crmal you know that the rate is around let’s say I think about 500 or so is the rate at CRMAL and about 1100 rupees ton is a rate at Bachwala. So the simple math that you will have to do is just do it a multiple into how the next few years. Because by FY 29th we will achieve full year target of 50 million metric ton at CRMAL. And while Patchwara is already working at the same 7 million metric ton per year. Now if I talk about FY27 we’re expecting about 33, 35 or 30 or the 13 plus in in that and.
Similarly the year after that we are targeting upwards of 40 million at CRMAL and then 50 like I mentioned in the fifth year. Now Pachwana like I said will be same Potangi in the next three years we’ll be setting it up again as per contract. We’ve defined how much we’ll be doing in the next three years earlier in our earlier presentation as well. So the mining plan will be kind of flowing through that way only with the EPC business and the mining business will flow in that. So put together and I think it’s a safe sort of way assumption to take that you take similar profitability for your sake of making the model that that would be how you can sort of do the mining from of revenue separately and how the profitability will look now.
Shravan Shah
Hello.
Rohan Suryavanshi
So yeah, sorry. So what we anticipate in FYI. So from the current 1600 crores of revenue in this year we expect Revenue to increase to about 2500 crores or so in FY27 which will further increase to about 3000 plus hundred crores in FY28. And eventually I think in FY29 we should be somewhere in the range of around. Around 4000 crores of revenue coming from the sector. So that’s how it will kind of play out if we were to do just a simple math of the multiplication of the total tonnage and the rate that we’re at.
So that’s how it will work out. Now coming to the second part that you answered. See all these are subsidiaries held completely under delivered con. And obviously we would want to ensure that our shareholders always get maximum returns. So at an appropriate time, if we feel there is a certain way which will help us extract a greater value from all these assets that will be functioning at their peak capacity, we will take that call. Currently we have no such agenda to apprise the market of.
Shravan Shah
Got it, Got it. Sir for second question on the, on. On the invit part. So you have mentioned that currently we are closely it is having a 200 corroding weight in the frame and the 1600 crore, 1400 crore in the alpha. So put together 1600 crore and after maybe 200 crore investment we will getting 1800 crore more. So roughly 3,3300 crore in mid value that we will be having maybe or two year down the line. So there in presentation last time we were kind of the. The distribution from both alpha particularly that number was on the higher side 4 21.
Now that number is on the lower side 350 or then 29 it is coming 386. So just wanted to understand is there are some understanding that now we will be getting a lesser dividend deal or whatever the return on the equity or the units that we are holding.
Sanjay Kumar Bansal
So as far as the invit units value is concerned you are right. After 11 assets further divestment to Invit. That kind of invit units holding will be there. But at the same time you must appreciate that the timing of transfer the assets to invit changed in FY26 and in 27 also we will be transferring four assets in quarter one and then balance in quarter four or quarter one of FY28. So basis that the the cash flow from the distribution is in visas in the slide number 24 shown in the presentation.
Shravan Shah
Okay, got it. Now sir, on the, on the standalone part the broader guidance number just wanted to recheck. So on the standalone front the revenue for FY27 EBITDA margin order inflow, how much we are looking at Capex and also if you can help us in terms of the net debt you have said that by FY28 we will be a net debt free but in FY27 how much one can look at to a reduction.
Rohan Suryavanshi
So Shivanji, as I mentioned earlier as well now FY27 the revenue target from if we look at FY26 number I mentioned it will be a 30 to 40% growth from this number. So we are in line with that because we have the order. The order book is very healthy right now at almost 28,000 crores. So we are very confident of the revenue that we should be able to get. That’s where the revenue number would be at. Now in terms of our EBITDA we are targeting that same 11 12% EBITDA that we have mentioned that will be in line with that.
Now more than that we are also targeting about 1012,000 crores of new order inflow to come in this financial year which will provide us good visibility extending up to FY30. So that will be there. Similarly now you also asked us about the debt, how much we are anticipating to reduce in this financial year. We anticipate somewhere between 600 to 800 crores of debt will be reduced in this in this financial year. And already from last quarter we reduced about 2,300 crores of debt already. And we anticipate going forward in the next two years.
Like I mentioned we should be where we are at near that net debt zero kind of numbers.
Shravan Shah
Yeah, thank you sir. I have more questions will come up in queue. Thank you and all the best.
Rohan Suryavanshi
Thank you sir.
Operator
Thank you. A reminder to all participants you may press star and one to ask questions. A reminder to all participants, you may press star and one to ask questions. Next question is from the line of Vignesh Iyer from Sequent Investments. Please go ahead.
Shravan Shah
Hello. Hello sir. Thank you for the opportunity. So my first question is actually related to the investments that we are going to make in the renewable energy and the transmission segment of it. And I was you know looking at the slide number 24 on our PPD where I see that 1250 crores for solar plus another 39 crores and a transmission for 35 crores investment is what we are planning over the period of next two years. So firstly I want you to understand the structure around this investment in a manner like what is exactly the structured equity, you know from acquirer for transmission and Solar that is stated separately.
Would it be more like an spv?
Rohan Suryavanshi
We can’t understand very clearly because your voice, your neck, there is some problem in the network.
Shravan Shah
Am I audible now?
Rohan Suryavanshi
Yeah, you’re audible now.
Shravan Shah
Yeah, yeah, sorry. So my question was again on the solar and transmission business where we have decided to commit certain X amount of funds over the period of FY27 and 28. So I wanted to understand the structure of this investment. Firstly, on the part where you are stating in slide number 24 that structured equity from acquirer for transmission solar a certain amount is given. What is it exactly? I mean I want to understand the structure behind that. Secondly, I wanted to understand what would be our equity commitment and what would be the expected IRR on this project.
Sanjay Kumar Bansal
Basically the idea of Dilip Buildcon in transmission and solar is to raise around 85% equity commitment to these projects from the investor who will be putting in equity during construction. So the commitment from DBL side would be 15% of the total equity requirement in these projects. In terms of EBITDA margin in transmission it is upward of 24% and in solar. So sorry, you asked about IRR. So IRR would be high teens in both the projects.
Shravan Shah
Okay, so if I understand it right, for these projects would you be floating a separate SPV where any fundraise would be done? How is it? That is the structure I was thinking.
Sanjay Kumar Bansal
So basically this is the. I said the acquirer will put in equity directly into the project calls so transmission spv, the potential acquirer will put in direct equity to the SPV of transmission and similarly in solar.
Shravan Shah
Okay, okay, got it. And yeah, so my second question on this is on our, you know, the coal uh, business, uh, I heard you earlier uh, regarding the MBO business where uh, you gave a stated guidance on how you see uh, the picture uh, moving ahead, wanted to just understand how do we see this business from the margin point of view? Majorly, I mean especially in quarter four, I think the margins have come down a bit versus how do we see this margin going forward, you know, for the next three years to our stated target in FY29?
Would we see more like a fixed percentage of margin coming in or as we scale up or as we scale up, would we see that operating leverage playing in it?
Rohan Suryavanshi
So thank you for your question. See the margin that you are talking about that has come down in the, in the mining business temporarily right now is primarily because the evacuation by the government could not be done on time. So there is at the Siamal mine right now we have about 6 million metric tonnes of stock which is lying at site because of delayed evacuation by the government and because of unavailability of racks. Otherwise production from our side was doing well and these are temporary issues.
We expect this to kind of normalize with the government taking a keen interest in ensuring that all the supply chain logistics are kind of worked out. So we expect in the mid to term this will all kind of normalize long term. If we talk about the margin profile, you’re very right. You know, there will be economies of scale that will play out as we work at peak capacity as our coal handling plant comes online. There is also kicker in the contract where once the coal handling plant comes online, we will be entitled to a higher revenue share.
So all those things will add to a sweetener much later. However, we are just saying when you are looking to build your model, you can build it conservatively around these numbers and understand how this business will kind of flow. But we are confident that as scale hits and as we also complete our coal handling plant and hit cod, the margins will meaningfully improve.
Shravan Shah
Okay. I mean if I have to see just from the numbers perspective, FY25 blended, the margin was around 26. Now it is 23 and quarter four because of one time impact has led to a lower margin. So it would be fair to say that 24, 25 is a more stabilized level of margin and any economic of scale that come after this would add on to the margin that is in place. Right. If I said you’re
Rohan Suryavanshi
Right, you’re right. That range is the right range to take and there’ll be, you know, improvement on that. Yeah,
Shravan Shah
Yeah, yeah. That’s all from my side and I’ll get back in the Q if I have any more questions. Thank you.
Operator
Thank you. Next question is from the line of Sanjay Parikh from Soham Asset Managers Private Limited. Please go ahead.
Sanjay Parekh
Yeah, thank you to the team. I just wanted, you know, as we move to 29 and 30, what are the annuity streams of revenue if you can broadly for each of the segment, you know, you can explain that is one. And secondly, particularly the renewable project. While my colleague asked, but where are we? Because I think these are short tenure projects. So what is the status? A little bit on the payback and the structured equity? Again, I just wanted to understand that of the equity portion, 15% will be put by us, 85% will come as equity, but they will be given debt returns.
Is that the way? And who could be the potential investors here? So that is a little more granular understanding of that project and when do we start and when do we complete that is that will help me.
Rohan Suryavanshi
Sanjay sir, thank you for your question. I think you asked a bunch of questions. So let me start with the last bit that you were saying. So the transmission and the solar project that we are doing, the largest categories for us, as we mentioned earlier that we want to build different asset classes. Just like what you’ve done in the road sector, we want to build it in other sectors as well. Whether it’s water, whether it’s transmission, whether it’s renewable, whether it’s oil and gas, we want to do it across.
But having done that, we have also promised the market that we want to be a debt free company by FY28. So while our larger goal long term remains to create different platforms short term we also realize the reality that if we invest all our free cash in equity then we won’t be able to achieve our goal of being a debt free company by 28. So the model that we are going to do in between right now is that whatever these assets that we are building, we will build these assets, make our EPC margin and we are looking to divest these assets at an earlier stage and, and find an investor right now also so that we attain our short term goal of 2028 being near net debt free.
That is why we are looking for investors currently in these assets. Now two years down the line when I’m completely debt free, when I’m doing these assets, I will look to hold on because we will have significant amount of free cash flow coming from our mining operations, from our invit operation. So my thing would be at that time where do I deploy this capital which not only gives a greater return for my investors but also gives us EPC business. So that will be the long term goal that we have. So I hope my, my.
The strategy that the company has is, is basically on the short term why we are doing this, finding a buyer. Right now it’s kind of clear because we want to also be net debt free and not put all our equity into building these assets and then sell it completely at that point. Hence this methodology, the via media has been adopted right now. That is the goal, the structure that you are asking. It won’t be like any investor who is coming in. It won’t be a near death kind of return that they’ll be looking at.
They’ll be looking at obviously a more higher return than that and we will be structuring to see how both their sort of aspirations and Our goals can meet and we can find a common way between both of them. That will be the idea and the goal for us. And those discussions are ongoing. Obviously I’m not at a liberty to talk about, you know, any names and what it is, but I am, I’m. I’m sure we’ll be able to give you a better clarity and good news on that in the coming sort of short term only because those discussions are going on and we will give you better clarity going forward.
Sanjay Parekh
Only one thing on the year the the structuring of this will be the debt portion will be depend on the structure. Right? Just to understand the structure has to be in place for you to get the debt for the project.
Rohan Suryavanshi
So the structure of. So the SPV has already been formed. All the SPVs have been formed. Now the equity and debt that has to be put in them, all of them have also been def already that how much equity and how much debt will go in each that has been defined. We’ve also gone to the lenders with that same structure. Okay. That this is the equity that we’ll put in and this is the debt that we will need. We also have in principle approval from lenders for all the projects that we’re talking about. So we also have that.
So all that process is done now that equity, let’s say in solar about 1200 crores of equity and in transmission about 400 crores of equity has to go. Now what we are doing is of the 1600 crores of equity we are looking to find a solution that 85% of the capital that has to be invested as equity comes from the investor while 15% is put by own DBL’s own balance sheet. So essentially the cash that then gets, you know, the free cash that is generated at the company level goes and reduces my standalone debt.
So that is the goal. Because in these two areas right now we don’t have an invitation however for the road. We already have an invitation. We already have an exit platform, we already have units already that we’re holding. So we would not want to let go of, you know, all those finished assets right now, but rather, you know, do this. And because this is not a ready platform that we have, we are open to selling it completely also at this juncture just to like I said, achieve our short term goal of being a near net debt company by FY20.
Sanjay Parekh
Perfect, perfect. This is very helpful. And, and what is the commissioning deadline for this? Is there any commissioning deadline?
Rohan Suryavanshi
Two years. Two years.
Sanjay Parekh
Two years from April 26th.
Rohan Suryavanshi
Yes. Whenever that is broad line, whenever we start this price or two years from there it will go from the letter of. Yeah,
Sanjay Parekh
Thank you. Thank you. Thank you very much.
Rohan Suryavanshi
Thank you. Thank you. Thank you. Yeah,
Operator
Thank you. Next question is from the line of Shubhankar Oja from SKS Capital and Research. Please go ahead.
Unidentified Participant
Hi. Thanks for this. So just quickly in terms of how many more assets to be transferred to this Anantham inbit and by when this will be done.
Rohan Suryavanshi
Sir, this is. We have 11 more assets to be transferred into the Anantham invit, the road assets that we’re talking about. And this will be happening, happening gradually through this year and by first quarter next year is what we’re expecting.
Unidentified Participant
And, and how much more equity, I mean how much investment you’ll have to put in for these assets to be completed and transferred. So for the
Rohan Suryavanshi
11 assets in total, it is less than 200 crores, 169 to be exact right now, which is there on the presentation slide number 24. You will find it there.
Unidentified Participant
Okay. And, and once this is transferred. So by next year quarter one, what will be your the value valuation of those? About
Rohan Suryavanshi
3,000, 3,300. That will, that will be the total invit value that we’ll have. Including the seven assets that we’ve done and these 11 that will go so against the total 18 assets that we have that we will be putting in the invit, we will have Inuit units worth between 3,000 to 3,300 crores.
Unidentified Participant
So, so, so here you have 3,300 crores and, and the other one is 200 crores. So there is. Yes, so that 200 crores is there and you don’t have any further increase of value in that same. No,
Rohan Suryavanshi
That will be same step as it’s an invit unit though those units are there. It is giving us dividend income.
Unidentified Participant
Yes, that’s about 3,500 crore plus in your ownership of assets in these two.
Rohan Suryavanshi
Yeah, somewhere in that range, sir. So this is obviously all these are dependent on the finals number, you know, because there is always change of scope that happened at the project level. The government is not able to give us all the land at times. So the, the final BPC value obviously always determines. So these are obviously broad strokes that we’re telling you.
Unidentified Participant
Great. Sir, in terms of. Obviously you have talked about it in terms of your payment from JJM last quarter status. Now do you have any further payment to be received from JJM and
Rohan Suryavanshi
Monthly payments are happening there. We don’t have any hold up there that was earlier in the year that had been there but that there are no hold up on JGM payments.
Unidentified Participant
Great. Thank you. Thank you.
Operator
Thank you. Next question is from the line of Ishita Lodha from Swan Investments. Please go ahead.
Darshika Khemka
Thank you for the opportunity and congratulations on a very strong order inflow. Much better than the other industry peers. I have a few questions for the CFO. Sir. As per slide number 33 the receivables have increased from 1384 crores as on March 25 to 1783 crores as on March 26 despite 22% decline in revenue. And the funds that were blocked from Jalvan mission have been released. So can you please explain this.
Sanjay Kumar Bansal
So basically there are two types of payments from Jaljeevan Mission. One is basically regular bills and one is basically the final amounts. So Jaljeevan mission the last 10% which is basically uncertified one which will be paid once we will do the last hydro testing. So that 400 crore will be paid once we will do the hydro testing thing. So basically it will happen partly this quarter and partly next quarter. So the. The increase in receivable from FY25 to 26 is mainly on account of this 400 crore receivable from the uncertified from the from the judgment mission projects.
Darshika Khemka
Okay. And given the debt reduction target of 600 to 800 crores in FY27 what is our interest outgo from the cash flow next year?
Sanjay Kumar Bansal
So basically if you can see this year also we reduced around 11% interest cost. Next year the interest cost with the reduction in the net debt we feel the total interest outgo would be close to between 375 to 400 crore.
Darshika Khemka
Thank you. And I heard that in the opening remarks that the order inflow was 18500 crores. But if I do the back of envelope calculation taking closing order book of 28,800 and opening order book of almost 15,000 crores. An execution of 7,000 crores. The implied order inflow comes to 22,000 crores. So the differential of 2,400 crores is change of order or the order inflow that you received first FY27.
Sanjay Kumar Bansal
So madam, you can see, you can see. Let me tell you the slide number and remark below the slide number we aid. Because the the 18,550 crore order book order is from third parties. Whereas we have. We have orders from our coal business. So we aid the coal business next three years order book book and every quarter is changed because we, we are in the phase where the volumes are increasing. So every quarter there is addition. So just see the not on the slide number 18.
Darshika Khemka
Okay, understood. And so what was the distribution income from Shrimp and Alpha that was included in the standalone other income in FY20?
Sanjay Kumar Bansal
Total dividend and interest income during FY26 from both the units are 64.5 crore and the distribution was higher. So the total distribution was close to 100 crore.
Darshika Khemka
Okay, and with respect to. So in the opening remarks it was mentioned that bitumen and raw material costs have increased due to the crude oil price impact. So can we pass this on entirely? What is the impact on our margins?
Sanjay Kumar Bansal
So basically for every contract there is an inflation formula from which we get the impact of the increase in pricing of this raw material or the items. But you know this formula may not give you 100% increase because you can see the increase in the HSD and bitumen prices sharply. But the formula gives. Partly adjusted through the formula. But the balance is impact on the margins. So you can see some margin impact on coal business where the HSB is the major cost. So there will be some impact.
Darshika Khemka
Thank you. That’s it.
Sanjay Kumar Bansal
Thank
Shravan Shah
You.
Operator
Thank you. Next question is from the line of Vishal Perival from PL Capital. Please go ahead.
Shravan Shah
Yeah, so thanks for the opportunity. So in terms of interest cost though you did clarify how do you see the trajectory next year? But if I look at FY26 interest costs have gone down but debt level has seen an increase absolute level basis. So
Sanjay Kumar Bansal
Basically let me tell you at the standalone level, yes, interest cost is reduced by 11% and that is mainly because of the reduction in the cost of debt. Basically the working capital cost of debt is reduced significantly. On WTDL, the interest rate reduced by almost 125 basis point. That is the impact on the interest rate interest cost.
Shravan Shah
Okay. Because our revenue has also declined. So maybe probably mobilization advance or the interest cost linked to that it will have certain bearing on the. The reason I’m asking partly
Sanjay Kumar Bansal
Yes, you are right. Partly the impact of the lesser mobilization advantage.
Shravan Shah
Yeah. So maybe like next year when we are targeting a growth interest cost, I mean like you know, as an absolute level, do you see it will reduce Reason is in terms of the outflow equity tracker that you mentioned, there is a shortfall around 250 odd crores. Short term debt could see an increase, revenues are increasing and interest for absolute level it could see increase. So is that fair to understand or probably I’m missing.
Sanjay Kumar Bansal
So basically if you heard Rohanji in the opening remark he said this year basically by March 28th our target is to make this company debt free. So this year we will be reducing close to 600 to 800 crore debt gradually. So the primary impact of interest reduction in absolute terms would be from the debt reduction.
Shravan Shah
Okay. Okay, got it sir. And in terms of. Yeah, I think that’s all from my text. Thank you sir.
Operator
Thank you. Next question is from the line of Vignesh Iyer from Sequent Investments. Please go ahead. Hello. Yes Mr. Please go ahead.
Shravan Shah
Yeah, yeah. So my question is I wanted to understand on our standalone EPC order book I wanted, I wanted to understand the part where due to the ongoing war there has been RM escalation and how so do we have a clause in place for you know, pass through of this escalation of raw material? How is the arrangement, you know, for us and whichever order we have, you know, got.
Rohan Suryavanshi
Sir, obviously whenever there is such a sudden spike or increase in prices, no contract will ever protect you against that because government contracts are linked more towards the WPI and CPI and not does not take into account this thing. So it’s not completely passed through and we will be facing those challenges as well as will be the rest of the industry. The, the. I guess the saving grace here is the government is aware of this issue and we as a federation, the national highway, you know, Builders Federation, we are also talking and with the government about these issues and we’re trying to see how this blow can be softened and hopefully in the coming sort of days there should be some kind of resolution that could do.
I don’t think and know that everything can or would be protected. But, but there’ll definitely be some kind of respite that we hope the government will kind of step in and do.
Shravan Shah
Could you share what is our cost of borrowing? So
Sanjay Kumar Bansal
Our cost of borrowing around 9% on average basis.
Operator
Thank you ladies and gentlemen. That was the last question of the day. I now hand the conference over to Mr. Rohan Suryavanshi for closing comments over to you.
Rohan Suryavanshi
On behalf of the whole DBL family, I thank all of our partners to come and join and ask questions. I think please do go through our presentation in detail because we have taken significant, we put significant thought in terms of designing it for you guys to how the future of the company will pan out. And I think that might be very useful for an investor looking at how the company will shape up. So thank you very much and I look forward to seeing all of you guys for our next quarter call.
Operator
Thank you. On behalf of the Dilip Buildcon limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.