Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
G R Infraprojects Ltd (NSE: GRINFRA) Q4 2026 Earnings Call dated May. 12, 2026
Corporate Participants:
Ajendra Kumar Agarwal — Managing Director
Ankit Maheshwari — DEPUTY CHIEF FINANCIAL OFFICER
Unidentified Speaker
Analysts:
Aditya Sahu — Analyst
Unidentified Participant
Shravan Shah — Analyst
Vaibhav Shah — Analyst
Presentation:
Operator
Ladies and gentlemen. Good day and welcome to the GR Intra Project Limited Q4FY26 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. Aditya Sahu from HDSE Securities.
Thank you. And over to you, sir.
Aditya Sahu — Analyst
Thank you, Sadnali. On behalf of HDFC Securities, I welcome everybody to Q4 and FY26 morning’s conference call for GR Inter Projects Ltd. From the management we are joined by Mr. Ajendra Kumar Agarwal, Managing Director Mr. Anand Ratty, CFO. I now hand over the call to the management for your opening remarks followed by the Q and A session. Over to you sir.
Ajendra Kumar Agarwal — Managing Director
Thank you, Adityaji. Good afternoon ladies and gentlemen and a warm welcome to the Q4 Financial Year 26 earning conference call of GR Infrastructure Limited. Thank you for taking the time to join us today. I hope you and your families are keeping well. I am joined on this call by Anand Rathi, CFO and Ankit Mehswari, Deputy CFO of the company. I will begin by sharing an overview of our operational performance during the quarter along with our prospective on the infrastructure sector. Thereafter, Ankitji will take you through the financial performance in detail following which we will open the floor for questions.
As we all know today business environment is becoming increasingly interconnected and volatile. Global uncertainty arising from geopolitical tension, ongoing conflicts, changing trade dynamics and tariff related measures continue to create challenges across sectors and economies. These developments are placing pressure on business worldwide and impacting supply chain commodity prices and investment decisions. In response to such involving challenges the company continues to maintain a robust enterprise risk management framework that enable us to effectively monitor and manage multiple categories of risk.
Despite the uncertain environment. I believe the company has delivered a resilient performance during the year. During Q4 financial year 26 the company recorded revenue from operation and approximately Rupees 2,521 crore representing a growth of 27% compared to corresponding quarter of the previous financial year. Adjusted EBITDA margin stood at 11% approximately for the quarter as against 15.5% in the corresponding period last year. During the year the company repaid that amount to approximately Rs.
262 crore resulting in further improvement in our debt equity ratio to 0.03 which is continuing to remain among the best in the sector. During the year, the company has secured new order amount to rupees 10,700 crore of which in Q4 the company has secured three new projects comprising one tunnel project and two hemp road projects aggregating the approximately rupees 5,500 crore. In addition to about two hemp projects appointed date of the one DBF 40 worth around rupee 3,600 crore is also awaited as on date our order book stands at approximately rupees 26,470 crore.
Further bids aggregating to approximately rupees 13,500 crore are yet to be opened. During the year peace royalty of five HEM projects has been received. We also successfully monetized four HEM assets to Indus Infra Test for total consideration of rupees 321 crore and recorded an exceptional gain of of rupees 253 crore. I would also like to reiterate that the company growth strategy is not limited to the road sector alone. We continue to see growing opportunities across Metro and railway, power transmission, battery, energy storage system, telecom infrastructure, oil and gas logistics and warehousing internal projects.
While the place of project award may vary across sectors, the overall infrastructure outlook for India remain positive. We believe the country’s long term infrastructure requirement continue to be substantial and companies with strong execution capabilities, disciplined bidding practices and healthy balance sheets will be well positioned to benefit from these opportunities. Let me now briefly touch upon key sector developments. In transport sector more than railway got about rupees six lakh crore approximately in financial 27 union budget we see a strong pipeline of rupees 7.6 lakh crore worth project including ham dot, EPC and railway.
Hence we expect order inflow in the sector to grow by around 10 to 15%. In financial 27. The railway sector also continue to move toward corridor based capacity, freight, decongestion and technology led operations. A significant recent development is the approval of six private rail projects worth approximately Rupees eighteen thousand crore and multi tracking projects worth around Rupees twenty seven thousand crore. During the year order book of transport view increased by 25% approximately. We target a new order book of rupees 12 to 14,000 crore in current financial year 27.
In power and transmission India power sector is expected to attract investment potential of nearly rupees 45 lakh crore over the next seven year. Cross generation transmission and energy storage renewable energy location continue to be drive transmission investment. Our focus would be on 20% of the bid pipeline of Indian rupees 1 20,000 crore with a target new order book of rupees 5000 crores financial year 27. In tunnels and hydro, the government is targeting tunnel projects worth approximately rupees three lakh crore over the next decade.
The CCEA has also recently approved the two large hydroelectric project in Ronachal Pradesh worth around rupees forty thousand crore. Bid pipeline looks promising at rupees eighty seven thousand crore with company focus on rupees twenty three thousand crore
Ankit Maheshwari — DEPUTY CHIEF FINANCIAL OFFICER
Bids,
Ajendra Kumar Agarwal — Managing Director
We are targeting a new order book of rupees two thousand to three thousand crore rupees worth purchased in Finance India 27. In oil and gas Brent crude price touched nearly one hundred and twenty six per barrel during the late April 26th amid high geopolitical tension creating a volatility in the energy market. Despite these near term challenges, we continue to remain positive on the long term outlook of the sector. Bid pipeline remain healthy and we target a new order book of rupees two to three thousand crore rupees in financial year 27.
Similarly for other sectors including rope, telecom and renewable, we are targeting a new order book of rupees 1 to 2000 crore rupees in financial year 27. Our focus throughout the year has remained on ensuring business continuity, protecting execution timelines and maintain financial discipline. As the external environment evolves, we will continue to take timely and strategic decisions to safeguard the company’s interest and deliver sustainable value to stakeholders. Financial 26 has been an important year for us during which we maintain a prudent balance sheet between execution order book expansion, diversification and financial discipline as we enter financial year 27.
Considering the economic and geopolitical situation, we remain optimistic about the opportunities ahead and expect to grow our top lines in the range of 15% and strengthen the order book with the target of new wins by Rupees 20 to 22,000 crore approximately. While continuing to remain selective and disciplined in our project bidding approach. I would like to thank our clients, lenders, partners, employees and shareholders for their continued trust and support. With that I now request Ankiti who take you through the financial performance in detail.
Thank you.
Ankit Maheshwari — DEPUTY CHIEF FINANCIAL OFFICER
Thank you sir. Here are the key highlights
Unidentified Speaker
Of quarter four performance. Standalone revenue from operations was 25. 21 crore in quarter ended March 26 which is increased by 27% approximately year over year compared to 1990 crores in the quarter ended March 25. The standalone revenue from operations was 7620 crore in the year ended March 26 which has increased by 17% year over year compared to 6515 crores in the year ended March 25. The increase is primarily on account of better execution of the oil and gas and power transmission projects.
The consolidated revenue from operations was 2500 crore in quarter ended March 26, which has increased by 10% approximately year over year compared to 2275 crores in quarter ended March 25. The consolidated revenue from operations was 8398 crores in the year ended March 26 which has increased by 13 and a half percent year over year compared to 7395 crores in the year ended March 25. The standalone EBITDA margin stood at 10.85% in quarter ended March 26 from 17.5% in quarter ended March 25. The decrease was primarily due to one time claims income recognized amounting to INR 47.5 crores in quarter ended March 25.
The standalone EBITDA margin stood at 11% approximately in the year ended March 26 from 13.88% in year ended March 25. The decrease was primarily due to one time claim income recognized amounting to one hundred and twenty three crores in the year ended March 25 and higher construction cost in the current year.
Unidentified Participant
The EBITDA
Unidentified Speaker
Margin at group level has marginally decreased to 14.73% in quarter ended March 26 from 23.96% in quarter ended March 25.
Unidentified Participant
The EBITDA margin at
Unidentified Speaker
Group level has decreased to 19.31% in the year ended March 26 from 22% in the year ended March 25. Profit after tax at standalone level increased to 14. 17 crores in quarter ended March 26 as compared to 371 crore in quarter ended March 25. The PAT includes one hundred and eighty two crore approximately net of tax of exceptional gain on sale of four subsidiaries to Indus Infratrust. Profit after tax at consolidated level decreased to 209.86 crores in quarter ended March 26th as compared to 403 crores in quarter ended March 25th.
The standalone net worth stood at 8,869 crores at the end of March 26th. It was 7,888 crores at the end of fiscal 2025. The network at consolidated level is 9,391 crores at the end of march 26th. It was 8,503 crores at the end of fiscal 25. The total standalone borrowing outstanding at the end of fiscal 2026 is 234 crores with debt to equity of 0.03 times. The consolidated borrowing outstanding at the end of fiscal 26 is 4845 crores with debt to equity of 0.52 times.
Aditya Sahu — Analyst
During the
Unidentified Speaker
Quarter, the company has made additions to the fixed assets amounting to 36 crores approximately and in the entire year around 133 crores. The net block of property, plant and equipment including work in progress and intangibles is 1057 crores approximately. The end of current fiscal.
Unidentified Participant
The investments in
Unidentified Speaker
Our subsidiary companies in the form of loans and equity are 2,271 crores at the end of March 26. The balance promoter contribution required to be made for our operational ham and bot projects is 3,486 crores of which we are expecting contribution of approximately 1000 crores in the current fiscal 27. Working capital in days at the end of March 2026 is 128 days as compared to 117 days at the end of fiscal 25. And the increase is primarily on account of the debtors days. The trade receivable at standalone basis are 2,372 crore including 1667 crores HAM debtors at the end of March 26 and the trade receivables at the consolidated level are 745 crores at the end of March 26.
The unbilled revenue at the standalone basis is 808 crores approximately at the end of March 26. Whereas the unbilled revenue at the consolidated level is 436 crores at the end of March the 26. The inventory are at 739 crores at the end of march 26th compared to 538 crores at the end of fiscal 2025. I sincerely thank to all our stakeholders including employees, business partners, vendors, bankers and auditors who have supported the company on behalf of GR Infra Projects Limited. I thank everybody.
Thank you. Over to you,
Operator
Sir. Shall we open the floor for questions?
Ajendra Kumar Agarwal — Managing Director
Sure.
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 the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and then two. Participants, you are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all. You may press star M1 to ask a question. We will take the first question from the line of Shravanshah from Dalit Capital.
Please go ahead.
Questions and Answers:
Shravan Shah
Yeah. Thank you, sir. Good commentary in terms of the segment wise and in terms of inflow that we are looking at just couple of things so whatever Sarah said in the opening remarks so broadly now we are looking at 20 to 25,000 crore inflow in this entire year so and particularly the the major still the chunk is from the road 12 14,000 watt cr so there just wanted to understand given still the NHI the activity has not picked up so this entire RV are we looking at the major would be the bot toll form or it would be a kind of equally the ham and beauty tool.
Ajendra Kumar Agarwal
Again upon ham or bottle they can hammer prepared or authority or bot concession agreement changes K will be positive. The pipeline
Shravan Shah
Approximately particularly say Kitna kilometer Kitna value and even for FR26 actually the exact number is still not clear how much they were awarded in terms of the kilometers so if you have you can share also.
Ajendra Kumar Agarwal
No doubt. 80% 70 80% Achieve Karnachi Outlook no doubt. The transport infrared
Vaibhav Shah
Okay
Shravan Shah
But. But any case specifically Sir FR27 May Kitna Kilometer value. Again it will be okay last fourth quarter.
Ajendra Kumar Agarwal
Last week they can equally spread first Q1. Or 66 hemp k project or.
Aditya Sahu
Okay and so
Shravan Shah
Sir. On the conservative side let’s say. So there is a possibility that last Dosalka kind of a backlog in terms of whatever we were thinking execution so can we look at even 20 kind of a possibility is also there and let’s say next year so can we look at growth for 28.
Ajendra Kumar Agarwal
Impact aglisal man.
Shravan Shah
Absolute level pay agarapka next year next year make.
Ajendra Kumar Agarwal
Pandran
Shravan Shah
Okay and margin.
Ajendra Kumar Agarwal
Is. Disturbance they came upon joy. Particularly your commodity or fuel or bitumen petroleum product.
Shravan Shah
Okay got it. And sir lastly Capex or other income particularly Joe capital proportion increase versus the interest and dividend though at a standalone Leon Pejomro G other income to Arata industry so woe for FY27 may CASA. No doubt. So yes but the investment largely it is more of yield product income capital it is more about to the more in terms of the movement of cash flow it is so dividend interest again it will start giving more dividend and all that but yes cash flow so that would be in the range of range.
Aditya Sahu
Got it. And capex for F of 27 billion. Okay okay sir thank you and all the best sir
Shravan Shah
Thank you.
Operator
Thank you. We will take the next question from the line of Abhinav from ICICI securities. Please go ahead.
Ankit Maheshwari
Yes, thanks for the opportunity. My first question is on the execution front. You had guided for about 3,000 crores of revenue in Q4 what has impacted the execution? We were expecting about 600 crores from oil and gas sector as well. So how has been the execution from in that segment? How was the execution in oil and gas segment?
Shravan Shah
The quarter May we have done almost 400. And largely see because of change in prices there is a drastical change in the prices. What increase in the prices actually resulted in slow execution. Because that flat rewards was supposed to be given by the authority right? Or in terms of price variation and clause. And that’s the main reason.
Ankit Maheshwari
So second question is on bot projects. So are we keen on building this high value projects? Even the higher equity requirement for these projects
Shravan Shah
We are evaluating subject to of course. I mean if it fixed to our you know metrics then certainly we’ll be keen but depend on that return on those investment and all right
Ankit Maheshwari
So last question on the three three projects. Agra BOT and the two HAM projects. When can we start? Expect the execution to start
Ajendra Kumar Agarwal
After.
Shravan Shah
There is no point in starting even if. Let’s say so we’ll try. The appointed date would should be in sync with you know our execution period as well.
Ankit Maheshwari
So any risk maybe the agar value on getting cancelled or anything of that sort
Shravan Shah
Of ah. Risk Though time though it is already expired right? So one year to already over. But this these kind of indications so far we haven’t received from the authority and they have to pay the claim also. Right? It is not as simple as that. Right. So I think this could be minimal. But yes, it depends totally and totally in the control of NHI So far whatever discussion we are having with NSI people will be able to get that appointed date maybe and there. I mean July, August because then there would be rainy period September and May.
Ankit Maheshwari
Got it sir. Thank you and all the best.
Shravan Shah
Thank you.
Operator
Thank you. Before we take the next question a reminder to all. You may press star N1 to ask a question. We have the next question from the line of Mohit Kumar from ICIC Securities. Please go ahead.
Aditya Sahu
Yes, thanks for the opportunity. Oil and gas project contribution, how do you see it contributing in FY27 and are you ready to bid on our own for this oil and Gas pipeline project
Shravan Shah
For 27? Our target for this sector is around,200 crore target for this, this particular sector. And in terms of direct bidding. So what we are evalu is to you know participate with the technical member who can make us eligible for direct bidding as well. So we are just evaluating to directly and we. We are actually active on this front as well. So maybe next six months of time we’ll be able to be directly as well. That’s our intention. This, that’s we aspire to. That’s we are targeting. Yeah.
Aditya Sahu
Can you just help us with your outlook on the transmission projects pipeline. But do you expect the entire thing to get bid out in FY27 or do you think part of it will go in FY28?
Shravan Shah
So current year may. What target is to basically target? Our target or focus pipeline is around 25,000 crore only. So we are not targeting that 21.2 lakh crore. Right. So it is only 25,000 30,000 crore out of which we are targeting. We’ll be able to get around 5000 crores order. This is our basically plan.
Aditya Sahu
So how do you decide a large pipeline, how to select this 25,000 crore? Is it based on the bid value? Is it based on the areas you want to work? How to decide arrival these numbers?
Shravan Shah
So it is it’s combination of both. Actually. Sometimes it is area, sometimes it is value. Because we may not be you know willing to bid for 20,086, 30,000 kind of project value. But at the same time sometimes we are also not willing to go into such kind of area where execution is difficult. Right.
Aditya Sahu
It’s a mix
Shravan Shah
Of.
Aditya Sahu
And what was the equity investment in HAM and HAM and transmission projects at the end of FY20 and how much are looking to invest in F27? F28. Is that number handy with you?
Ankit Maheshwari
Yeah. Yeah.
Unidentified Speaker
So the total contribution which was required was approximately 5400 crores. Of which already 2055 crore has been contributed. And the remaining contribution is 3486 crores approximately of which in the current financial year 2627 we estimate a contribution of thousand crores.
Ankit Maheshwari
Understood sir. Thank you. And that’s all the best. Thank you.
Operator
Thank you. We will take the next question from the line of Pavin Modi from Anandra. Please go ahead.
Unidentified Participant
Hi sir. Thank you for the opportunity. Just wanted to you know dwell on the you know, your logistics and warehousing business. So I think there are three parts right forward which is MMLP Indoor. Then there’s a 4C which I think is a Guatian sam and the you know, foreign. There are some 15 operational dark stores. So just wanted to understand. You know I also saw your results and there’s a one already. You know warehousing SPV is already created. So have we already, you know acquired some land, you know and are we, you know have you know started working on it?
Or you know, on the warehousing thing, whatever plans, you know, in terms of you know, investments. And since you know these are the, you know, you can the front heavy, you know, capex investment, is it going to affect our roe for some period of time.
Shravan Shah
So investment other than multimodal logic. Our target is to invest in terms of equity. 500 to 700 crore of equity which we are targeting in next. No total
Unidentified Speaker
Investment. We are targeting 600 crores of which around 25%. 200 to 250 crores would be equity.
Shravan Shah
And for current year, right?
Unidentified Speaker
For current year. Right.
Shravan Shah
So I’m giving the basically number for next three years. So this is the plan for or you know, in this particular sector where we are targeting almost 600 or 700 crore of equity investment in next years of time. What do you ask for is that it would be impacting that return on equity on yes, for the current year. It may because it will take time. Once it is, you know completed and will be able to, you know, monetize it through some other vehicle then certainly it will give that Philip also right for to equity return.
But yeah, it may take time for next. In next two years of time that would be. I mean for current year certainly will be developing and then in next two years of time we’ll, we’ll be focusing on monetizing as well. Then it will certainly. So this, this is of course a long distance period. It is, it is not that in the current year itself will be getting the result here. Yeah.
Unidentified Participant
Hello. So when you say this 600 crore, the equity investment, it’s from our side, right? From the promoter side or are we also, you know, engaging some, you know, you partner, you know like 50, 50 partnership or something or this 600 totally from our side.
Shravan Shah
This is our own plan maybe depending on the project. Right. Where let’s say because of the project size or where we believe that we need some partner we can get get them also along with us and then probably the total investment in that project would be more than what we are assuming right. On our own.
Unidentified Participant
Okay. And this also, this investment also includes the foreign. Right. Where you already have 15 operational dark stores. So are these dark stores, you know, are we, are we owning these dark stores or we have taken on lease. So how is that model?
Shravan Shah
These, these dark stores are actually on lease. So it’s not much investment over there which we are anticipating. Right. So. So these all are only here
Unidentified Participant
In the last two questions. I think the you know, NHA has come up with your new bot. You know RFP and there are many, you know, like stringent, you know, consideration conditions are involved. Just wanted to understand. We have already placed bid for the Nasik Fada or Fata Kit project which is something around 7,300 crore. So do you think will it again go for the rebidding or you know now it will directly go for the financial evaluation stage.
Shravan Shah
It’s something which nhi I’m. I may not be that privy. I mean to that extent I’m not privy too because that bid has already been, you know, received by the nhi. Probably I believe that that would be under evaluation. I don’t think they would be, you know, handling this process. And I mean I haven’t heard so far about this
Unidentified Participant
And so last point, you know, just a bookkeeping question. So you have you know, given the profit, you know on the sale of monetization. So does this, all this profit also includes you know, from the deferred consideration, you know, whatever you mentioned. And what is the you know, color of this deferred consideration? If you can you know, throw some light on that.
Aditya Sahu
Yes, we can you repeat the question. Deferred consideration? Yes, of course
Shravan Shah
We haven’t received that hundred percent amount in case so far. Reason being 63 crore is the reason being there there are something at SPL which is to be settled by nhib. These are the, you know, for example in terms of fixation of the amended or revised bid project cost. Right. There are some GST claims which would which are yet to be released by the NHI over there. Right. So these as and when those claims or those settlements happened over there on those SPVs, we’ll get that payment.
Unidentified Participant
But have we incorporated?
Aditya Sahu
Yeah, sorry,
Unidentified Speaker
Profit in the P and L.
Unidentified Participant
So sorry, your voice is not audible. Hello. No, I was mentioning that.
Unidentified Speaker
Yeah, this deferred consideration is already included in the profit in the current ESP&L.
Unidentified Participant
Okay. And you are stand and showing as a receivable in the balance. Yeah, that is from my side.
Operator
Thank you. We will take the next question from the line of Parviz Kasi from Nirvama Group. Please go ahead.
Aditya Sahu
Hi, good afternoon sir and thanks for taking my question first is just wanted to get update on the BSNL project and also the MSRDC project.
Shravan Shah
See on SNL project. We are waiting for ROW clearance. So far we have not received the RW though maintenance activity has already, you know started over there on existing stretch. I mean that existing project which was handed over by you know, local authority to us. We are maintaining, we started maintaining those. Those Equipments and those lines. Right. And and because of that you know election. Because of that election era. Right. I mean this. That that was the reason that row also get delayed by another one one and a half months.
So probably what we are expecting is that in next one month of time we start start receiving row clearances and will be starting execution as well. Right. And and the second question was related to
Ajendra Kumar Agarwal
Progress. Sure.
Aditya Sahu
And sir you had given a guidance of 20,000 to 22,000 crore of order intake. 14,000 crore maybe once a 2,000 crore. And oil and gas
Shravan Shah
Power transmission is there. Power transmission is also there. Right. And tunnel hydro there we are targeting 2500 crores. Right. Similarly to optical fiber cable, Oil and gas is also there. Right. The renewable is also there. So almost be spices are good that the amount which we are targeting.
Aditya Sahu
Sure sir. That’s it for my side. Thanks and all the best. Thank
Shravan Shah
You.
Operator
Thank you. We will take the next question from the line of Prabhav Shah from GM Financial. Please go ahead.
Vaibhav Shah
Firstly on oil and gas so we are targeting revenue of close to 200 crores in 27. So is it a part of our order book or does it include any oil and gas for 3-26-27
Shravan Shah
With 200 crore? 1200, right?
Aditya Sahu
1200.
Shravan Shah
Yes. See some part of it is already part of order book and those are things approved. But thousand crore will. Will be. You know will be actually targeting for this current year from
Unidentified Speaker
The new order.
Shravan Shah
From the new order and new order I would say it is more existing. I mean it is already existing order where we have to continue our engagement. Right. With that same company. So that’s why
Vaibhav Shah
Which is there in the oil and gas.
Shravan Shah
Right? Right. Right. Right.
Vaibhav Shah
Okay sir. So secondly on the appointed date for the new to ham assets so should come sometime in next year first quarter.
Shravan Shah
Oh I pointed data. I mean depending on the land availability it can be the. The third quarter or maybe depending on October. I mean October to January February. That that’s the date which we are. That’s the period which we are expecting.
Vaibhav Shah
You are expecting within this year itself.
Shravan Shah
Yeah.
Vaibhav Shah
And what is the land status current in both the hems
Unidentified Speaker
Right now that we can let you offline. You can send us an email.
Vaibhav Shah
Okay? Okay, sure. Lastly on the depreciation part we have seen a very sharp reduction on a quarterly basis which has gone down to roughly 45 odd crores now versus our peak numbers of roughly 6065 odd crores. So incrementally now this should jump significantly given the higher capex plants we have in next couple of years.
Unidentified Speaker
No, no. So CAPEX is basically for the plant and machinery and certain other specialized equipment which we are planning for our tunnel project and power transmission projects. This inventory pile up is basically to execute our existing power transmission projects.
Vaibhav Shah
Right now on a quarterly basis of 46 crore for Q4. So incrementally similar we can see a big jump.
Unidentified Speaker
Yeah, you can see a jump because the in inventory. Right? The inventory you are asking, Correct.
Vaibhav Shah
Any capex depreciation?
Aditya Sahu
Ah,
Unidentified Speaker
Depreciation. Yes. So depreciation. As sir already mentioned that we are planning the new capex in the range of 300 to 350 crores. Correct. But at the same time we will also recycle our old equipments so depreciation will remain more or less in the same range.
Vaibhav Shah
Okay. And we can extract a similar number of CAPEX in FY28 as well or it can taper off
Shravan Shah
28th of is too far to right now CAPEX for this current year we have. What we are targeting is basically as we are going on power transmission. Right. On tunneling also we have taken which project some equipment is required for those projects. Right. So which may not be required for those kind of capex may not be required for 28. Right. But for 28 then if we are growing some other sector then probably. I mean so as of now we what we are saying is this is one of kind of investment because for last 3, 4 years at least for last 3 years our capex was in the range of 100 crore odd, right?
Vaibhav Shah
Correct. Correct. This
Shravan Shah
Time we are targeting in the range of 300, 400 crore right. It’s only because of that we diversify into different sector. Right. And we have taken this project also. So next year it is too early to say but yes, as of now we don’t see that 300, 400 project would CAPEX would be there in FY28 as of now.
Operator
Thank you. We will take the next question from the line of Ayush Kohen from Cavi Capital. Please go ahead.
Vaibhav Shah
Yes hi sir, thank you for taking my question. So I just wanted to ask that will we be transferring any projects to the invid during this financial year?
Shravan Shah
This is ongoing process so I think will continue with this. I mean we’ll be transferring certainly at least three, four projects which we have completed. You know which we received the COD at least one year before, right?
Vaibhav Shah
It’s
Shravan Shah
Only after one year of completion of operation period. We are. We are eligible to transfer, right? So we can transfer. Yeah. Okay
Vaibhav Shah
Sir and like if you could explain the multiple at which we transfer these projects to the invit. That would be really helpful.
Shravan Shah
The multiple, I mean this is cash flow discounting method. Right. So it not that key. We have agreed to a certain multiple while transferring any project. So depending on the future cash flow and depending on the market condition at that point of time. Right. That valuation is done by the you know, independent valuer and basis that we are transferring the asset.
Vaibhav Shah
Okay. So like there, there’s no ballpark multiple that we can think of or that usually. Yeah, this is big range. I
Shravan Shah
Mean it can be between 1.25 to 2.25. This is a big range. Right. So there’s no point.
Vaibhav Shah
And so about the cash flows in, in this year the cash flow from operations is like really low compared to the previous years. So how are we going to manage the working capital going on forward?
Shravan Shah
So far we are comfortable with our working capital. You know we haven’t utilized our bank limit as well. Right. And this year because we have enter into different, you know, diversify into different sector. Right. And that, that may be the reason which I believe that that is actually you know pushing us to you know invest more in the first year or second year up and maybe next over the period of next year one or two, two year will be again, you know, normalized in terms of our working, working at lit lesson.
Vaibhav Shah
So it’s just because of accelerated execution.
Shravan Shah
Accelerated execution I won’t say. But it is more kind because of diversification we are entering into different sector. Right. So that is where we have to invest.
Vaibhav Shah
Do we ever plan to monetize the invit units? If we require in the future like we have 2400 crore worth of investment in that.
Shravan Shah
Depending on. I mean we just don’t have things for it so far. But yes, of course. I mean to certain extent maybe under 200 crore is a different. I mean we can have, we can think at any given point of time. But yes, I. We just don’t have that confidence plan where we have to you know offload 50% of the unit which we are holding on our balance sheet so far we haven’t had, you know. But yes, of course a piecemeal of that, a small piece of that we can certainly look to, you know, divest.
Vaibhav Shah
Okay sir, thank you. That’s all.
Shravan Shah
Thank you.
Operator
Thank you. We will take the next question from the line of Girachade from Nirmal Bank. Please go ahead.
Aditya Sahu
Hi, thanks for taking my question. So I have couple of questions. So I believe the education rate as Compared to order book has came down. So what where exactly we are stuck? So that you know, our order book is strong. But whereas our execution rate is coming down. That is first question, second question the previous related to the previous participate. The three assets have methods what we transfer to in vid the the multiple. Specifically if you can, you know, throw some light on price to book value kind of things that will be helpful.
And third question is related to construction cost. So I can see around, you know, this time the construction cost has increased and in fact per full year this is also it is increased. So as a percentage of sales I can say it is 75%. It has increased around 3, 4% as compared to prior year. So is there any initiative or anything we can do to reduce this construction cost so that our margin will expand? I’m happy that we are maintaining the margin 10 to 12% and gradually we are focusing to improve the margin.
So is there anything, any initiative we are taking to expand the margin by reducing the cost? So these are my questions.
Shravan Shah
So. So. So let me take your question. The order you have raised, right one first is that execution rate. Yes,
Aditya Sahu
Yes. Yeah.
Shravan Shah
We have gone down. So execution see issue is in last I would say couple of years. What we have seen is that generally land see when this model came up, right in what has happened when this industry, you know, was actually, you know, back on track in initial years in 2017, 18, 19, that point of time, it was a lull period, right? Between 2010, 11, there was no execution at all, no awarding at all. So at that point of time, generally authority, you know, what did they do at that point time was they were just accumulating the land and there was no awarding, there was no taker, there was no lender was supporting.
But once they started, so that was the backlog which was pushed actually into this sector. And the 100% land was made available. And, and. And all the contractors started executing fast with you know, new new strength or whatever you say. But over the world what has happened is that they could not, you know, keep the same pace of accumulating land. Land is a big issue in the SEC in the country, right? And and Bengal method you have seen or news article, you might have read that then because of so many projects are stuck in that state because of land only, right?
Aditya Sahu
Right. Similarly
Shravan Shah
That is the case for Punjab also, right? Land aggregation is the biggest challenge in the sector. And of late what has happened is that. And we are not able to execute at the same speed, right? Because if we are getting in the peace mill different different pocket map. When we are executing the project, it is also increasing the cost. And it is also taking time as well, right? Because time wise be to execute, right? Continuous strength of 5 kilometer versus 5 different patches of 1 kilometer. So they are taking time.
So. Challenge which we are facing key execution and. And of course appointed last things. The project was there but appointed date could not be declared. And when appointed date start declaring right? Then land was 100, land was not there. So authority came up with the new concept provisional appointed date where not 80% land was also there, but even 60% land. Because we are into industry. We have already, you know having mobilize that machinery plant over there. Assuming that the land would be acquired on time.
And then we also, you know somehow convinced by the authority that okay, let’s start on execution so that there’s no point. So that was kind of arrangement and. And actually it resulted into delay execution. Right? In terms of execution rate. Now second question you asked about that price to book value. You have asked for these specific SP which we have transferred 1.18 or 1.2 gas, right? And. And construction. Construction cost, what you are saying is increasing. Rather I can say it is revenue which is decreasing because competition, right?
Where you can say. I mean you. This is also visible to everybody that NHI estimates bid price now it is coming going up to 30, 40% down from NHI estimate. So it is because of competition. So it is not going to reduce. I mean. I mean this is my theory. I mean there may be player. There may be people who would be, you know, reducing accordingly their input also, right? But logically in last five year of period you will see that because of increased competition prices have come down which actually is, you know creating pressure on revenue rather than cost.
So agar effectively if we have to compare that lended cost of the material what we were actually having at five year back, right? That. That five year back it was higher, right? There was good that that mechanism, I mean various kind of methods was available to us which is available to us right now was not available at that point of time, right? Funding methodology, whatever you say. So it is actually, you know, impacting the cost. Maybe in 2020 my cost of material on absolute number was higher than what right now I am making payment today, right?
But if we are comparing it with my revenue, revenue has drastically come down. I can’t, I mean 40% revenue. I can’t reduce my cost of material cost of concern to 40%. At least it is actually other way around it is not that construction cost is increasing, it is be to going basically revenue which is decreasing and where it is perceived that construction cost is increased. Right?
Aditya Sahu
Correct. Sir, if I may ask the last question pertaining to the first question about the execution rate. So as you mentioned several factors are impacting execution, right? So can someone assume that 80%, 85% of execution risk factor is factored in your execution, current execution rate or someone can assume the same or the little marginally increased increasing order of, you know, execution rate going forward
Shravan Shah
Execution rate, we have to assume at same level. I don’t think it is going to increase. Yeah, it is not going to.
Aditya Sahu
Thank you sir. That’s all. All the best.
Shravan Shah
Okay, thank you.
Operator
Thank you. We will take the next question from the line of Sudeep Boyra from Ambit Capital Private Limited. Please go ahead.
Aditya Sahu
Thank you sir for the opportunity. So my question is regarding the oil and gas projects that we do. So what are, what is the tentative kind of a margins that we make in these projects and how do we see it going ahead?
Shravan Shah
The target is to have at least 10%, 8 to 10% kind of margin. But what has happened is because we are the, you know, new entrant into the sector. So we have to learn, you know, through this process and not only that new entrant, but yes of course of this geopolitical situation which is impacting that fuel prices, petroleum, the large scale basis. So margin has yet to be seen. I mean let, let us complete one or two cycle on this particular sector and then only we’ll be able to, you know, give you some guidance on what kind of margin which we are expecting on the sector.
Aditya Sahu
Okay. And some second question would be like in terms of the geopolitics or like the crude prices. So what, what part of our cost or how, what percentage of our cost is directly kind of impacted by the increasing crude prices?
Shravan Shah
So if we talk about highway sector, road sector or transport sector, it is almost 40% of the cost, 30
Ajendra Kumar Agarwal
To 40%, 15% fuel and
Shravan Shah
20
Ajendra Kumar Agarwal
To 20, 25%.
Shravan Shah
And again because raw material also somewhere is, you know, getting. Yeah, it is to be transported. It is to be, you know, prepared by your, it is to be, you know, I mean diesel is somewhere, somehow it is getting consumed over there, right. For so to 40%. I would say reasonable number which is actually impacting our cost. 40% of cost is getting impacted because of this.
Aditya Sahu
Okay. And like do we have a, like we would have a pass through mechanism as well, right?
Shravan Shah
Pass through mechanism is there in normal situation this is abnormal Situation. I mean we are also struggling right now. We have been, you know discussing with the authorities how to you know, get out of this situation. Right. They are supportive in this time of crisis. So I wouldn’t say that they are supporting. But we have to you know develop some mechanism for to basically have some insulation from this kind of impact. Right. And probably will come out with some more good formula also. But until then probably we.
We have been impacted there.
Aditya Sahu
Okay. Thank you sir. And my last question was just a clarification. So you said the two MSRDC project going for a rebate. So those are included in our 26471 crore order book or. Yeah. No,
Shravan Shah
No, no, no, no, no, no, no. Not. So those projects are annulled. Those processes annulled. So it is already out from our bit. Out from order book. So we never include L1 in our order book.
Aditya Sahu
Okay. Thank you sir. Yeah. Thank you.
Operator
Thank you. We will take the next question from the line of Vishal Perival from PL Capital. Please go ahead.
Aditya Sahu
Yes, thanks for the opportunity. Initially commentary. Geopolitics has an impact on execution. So just to understand since our order book is from NHEIC Maharashtra state government says so any authorities are they saying like you know to slow down execution or probably like you know there’s a delay in the payment for us. As I could share something. If we have to make a relation with the geopolitics.
Ajendra Kumar Agarwal
Abnormal condition.
Aditya Sahu
Okay. Or any. Any delay in payment. Okay. Okay. On second sir, related to this margin probably explain. But just to since NHAI maybe state orders there may be a lag.
Ajendra Kumar Agarwal
Normal condition. Again abnormal condition. Joe escalation Milta generally Joe material cost or CPI or wpi. Joe. Directly bitumen diesel prices comparison wholesale price index.
Aditya Sahu
Sure sir. I think this is helpful. Sir. I’ll come back in the queue. Thank you.
Operator
Thank you. We will take the next question from the line of Mudit Bindari from IFL Capital. Please go ahead.
Aditya Sahu
Hi sir. Thank you so much. Sir, we said we two MSRD process projects were cancelled. So it was two Pune ring road projects or one was also Nagpur. Okay. Which one is which? We are executing
Shravan Shah
Western.
Aditya Sahu
Got it. For that it is received. Huh.
Unidentified Speaker
Work is already in progress.
Aditya Sahu
Got it. And lastly any update on sir income tax search which happened in I think October 25th.
Shravan Shah
So income tax search. May I think beyond that we haven’t received any. I mean communication is there. They have you know shown some material. We have also replied them. Right. Right now it is up to them. They will be doing some because this is a process which we have to follow. They will be coming up with their suppose notices going forward and we have to file our return back and so far nothing material probably which I would say we have to we have find out. Right? So
Unidentified Speaker
Understood sir. It is regarding which period
Shravan Shah
See search is generally for last six plus current year period. So it is for saving years, right? It is as per law. I mean they have to cover they can go up to six years back. Right?
Unidentified Participant
Understood. Understood sir. Thank you so much.
Shravan Shah
Thank you.
Operator
Thank you very much ladies and gentlemen. We will take that as a last question and with that concludes the question and answer session. I now hand the conference back to the management for closing comments. Over to you, sir.
Ajendra Kumar Agarwal
Immense opportunities upon KCB decay power transmission May they keep power transmission may appreciate the power production. Power transmission line requirement either second. Production high capacity cover lake in storage capacity storage. Well placed company. Thank you.
Operator
Thank you members of the management on behalf of HDFC securities. That concludes this conference. Thank you all for joining with us today and you may not disconnect your lines. Thank you.
Shravan Shah
Thank you.