HG INFRA ENGINEERING LTD (NSE: HGINFRA) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Harendra Singh — Chairman and Managing Director
Analysts:
Unidentified Participant
Saloni Ajmera — Analyst
Shravan Shah — Analyst
Vaibhav Shah — Analyst
Sarvesh Gupta — Analyst
Veenit Prasad — Analyst
Vishal Periwal — Analyst
Jainam Jain — Analyst
Mohit Kumar — Analyst
Parth Thakkar — Analyst
Madhuvendra Kumar — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the HG Infra Limited Q1FY26 earnings conference call hosted by Goindia Advisors. 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 the 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 Saloni from GO India Advisors. Thank you and over to you.
Saloni Ajmera — Analyst
Good afternoon everybody and welcome to HG Infra Engineering Limited earnings call to discuss the first quarter of FY26 operational and financial performance hosted by Go India Advisors.
We have on call Mr. Harindra Singh, Chairman and Managing Director and Mr. Rajiv Mishra, the Chief Financial Officer. We must remind you that the discussion on today’s call may include certain forward looking statements and must be therefore moved in conjunction with the risk that the company faces. I now request Mr. Harendra Singh to take us through the company’s business outlook and performance subsequent to which we will open the floor for Q and A. Thank you. And to you sir.
Harendra Singh — Chairman and Managing Director
Thank you Saloni. Good evening everyone and welcome to the HG Infra Engineering Limited earnings call for our Q1 FY26 results. During this call we will provide an overview of our financial and operational performance, discuss our strategy roadmap and outline our growth ambitions. We will also highlight the key initiatives undertaken during the year and share our vision for sustainable long term expansion in FY26 and beyond. HG Infra Engineering Limited has over 22 years of proven expertise in the construction of roads and highways and has earned a strong reputation for quality and timely execution in road sector.
Building on this foundation, we have now diversified into a critical infrastructure domain such as railways, Metro, renewable energy and transmission projects. We commence FY26 with a steady momentum further reinforcing our position as one of the fastest growing infrastructure company in India. As a part of a strategic approach, our goal is to derive around 30 to 40% of order book from known road sectors over the next 23 years. In this line with this during this quarter we successfully secured our first transmission project worth approximately 350 crore in Orissa and received 1/3 of best project from GUNL for 300 megawatt.
With this addition, cumulative contracted capacity for best project has reached 735 megawatt. That is equivalent to 1470 megawatt hours. Reflecting our commitment to supporting the government’s vision for a green and sustainable future while meeting the nation growing per capita energy demand. These achievements position us for the third largest best player in the country. Moving on to some updates on the infrastructure sector, Talking regarding the road sector, the government has set a construction target of 10,000 km of highways for FY26. NHI plans to award 124 projects spanning 6376 km at an estimated cost of 345 lakh crores and HAM remaining dominant through 84 projects covering 4714 km and with this outlook we foresee significant opportunities to secure new projects in the coming months.
For the year of the year, the company plans to pursue bids worth 1 lakh crore in HAM and EPC segment targeting project award of at least 6000 crores in FY26. Underscoring its strategic emphasis on winning large scale high value contracts in road sector, rails and metro with government visions is anchoring a large scale modernization and capacity expansion and by 2030 Indian Railways expand to complete 100% of the electrification and broad gauge network, cutting the carbon emissions and improving efficiencies. Thousands of kilometers of new rail lines are being constructed while track doubling and gauge conversion projects are rapidly enhancing the capacity and connectivity.
Under this nationwide station redevelopment programs, more than 1200 stations will be transformed with the world class facilities to improve the passenger experience with this this year the company plans to participate in bid worth approximately 5,50,000 crore. In these sectors the company is actively pursuing railway and Metro opportunities aiming to secure projects worth approximately 15 lakh crore in the current financial year. In solar and bass, the total installed capacity if you see in the country has reached up to 220EAWR as on 31st of March 25th and that in addition to these installed capacities, India has 169.4 gigawatt of renewable energy projects under implementation as India leads to the clean energy transition, the battery energy storage systems, the market is projected to grow from $7.8 billion in 24 to $32 billion by 2030 with 66 GWh of storage capacity planned by 2032.
On the solar front, India has crossed 100 GWh of installed capacity with over 2 added in 24 alone. So this strong policy backed tailwinds present massive opportunity for infrastructure players like us to unlock value across both EPC and asset platforms. The company is targeting a 5% share of India’s total available battery market for FY25 26. The estimated order inflow for BEST is approximately 2000 crores which includes one secure project which he already has backed around 800 crore rupees and transmission and distribution where the government envisions a robust modern and green power grid to meet rising energy needs with major investment in high capacity lines and advanced substation and HVDC system over the next decade with one nation, one grid, one frequency policy that has unified all regional grids enabling one 12,250 megawatts of inter regional transfer for stable, reliable nationwide power.
At HG we aim to secure transmission and distribution projects worth 1,000 crore at least for the year and one we have already backed is 350 crore. Given by strength, agility and steady growth we are poised to capture emerging opportunities in renewables, power transmission and road sector as well as metro and urban infrastructure. With proven execution, technical expertise and industry expertise we are ready to deliver large scale infrastructure projects that power India’s long term development. Let me begin with a glimpse of our operational highlights as in quarter 1 FY26 the company’s order stood at 14,600 556 crores comprising 9,623 crore from Roads and Highways, 2,912 crore from Railways and Metro, 1,620 from Beds, 500 crore from Solar.
Within the road sector 30% of the roads are under the HAM model and 36% are the EPC projects. Railways account for 20% of the total order while Solar and Belts contribute 11% and 3%. This is update on the EPC project while Ganga Expressway which has reached at about 97.4% completion as an on track for completion of 100% by quarter 2 FY25 the Delhi UAR project has been completed successfully and handed over to the authorities and is anticipating to receive the completion certificate shortly. The janshed put that elevated project is running smoothly with a progress of 15.2%.
The neem manga Tumkur project is gaining execution momentum and has reached to 42.5% completion. Regarding the HAM projects, the Kernal Ring Road project has reached 77.1% completion marking steady progress and likely to be completed in Quarter 4 FY25 as shared in our previous quarter, the provision completion certificates for the projects of Raipur Veshakha Patnam corridor that is OD 5 and 6 already received and the both projects remain close to completion. Now the project AP1 of Raipur Visakha Patnam project is also progressing towards completion with PCC recommended and all these three projects continue to be on track for 100% completion that is COD in quarter three FY26 the solid progress continued on if Khamam Devaratli the project of KD1 and 2 the PCC already received these projects are at 88.4% and 85.5% respectively and both the packages are expected to be completed 100% by quarter 2 and quarter 3 respectively.
The Chennai Durubati ham project has reached at 21.4%. The appointed dates for Varanasi Ranchik packages I.e. package 10 and 13 of this corridor are expected in quarter 3 of FY 2526 where significant development for forest clearance has been done. For Kosi Parigomba Package 6 Ayodhya the concession agreement is signed on 21st of March June of 25 and execution stands at 2.2% and the appointed date is expected very soon. In Naro Zurkesh project the financial closure has been achieved and the appointed date is expected within the month only. As for the railway project, the DMRT project is around 82% progressing as per the scheduled timeline and within next three months it is going to be completed 100%.
The Bilascore Arden L project that is 69% complete Kanpur Railway Station project is at 26.42% completion and now the project execution is going on full swing after the initial design and land Ecuador railway project is at 13%. The Gayana Sonagar project Karanjigaon project they are at about 12.7 and 9.3% completion respectively. Appointed date for the New Delhi Railway Station has been declared as 6 August 25th. The execution will start by end of quarter two. FY26 and the update on the solar project which we so Q during last financial year we are now at around 8070 plants completed.
HG Infra out of 183 plants cumulatively this is 700 megawatt BCA capacity and among these the company is directly responsible for 167 plants with an estimated EPC value of 2,243 crores. In terms of financial structuring, the debt funding for this project is progressing well with approximately 83% of the required funding already sanctioned till June 25. The remaining approvals and subsequent disbursements are anticipated to be finalized in quarter two and quarter three. Regarding the equity financing, the total equity investment required for the solar project stands at 721 crore and as of 30 June 2025 the company has infused approximately 610 crore into these projects and the remaining balance is to be set to be deployed in quarter 3 till quarter 3 of FY26.
As far as Best project is concerned, as we have shared in the previous quarter, the company executed binding agreement with GML and NVVN for 435 megawatt that is 870 megawatt hour of project, the scheduled commissioning that is in November 26 and December 26 respectively. In May 25 we have secured an additional 300 megawatt that is 600 megawatt hour of project from GUNL and with this the cumulative contracted capacity standard 735 megawatt or oblique 1470 megawatt hour. Upon completion and commissioning of all these desk projects, company expectations annual revenue of 225 crores. From there the equity requirement for all these three projects is around 500 crore of which around 1 crore has already been infused and balance 119 crore is expected to be done within this financial year and rest in financial year 27 and 28 respectively.
Procurement progress for Best project has been initiated and the key component are in advanced stage of negotiations. We have shortlisted tier one Chinese supplier after our team visit to China for import based system and power conversion systems and we are likely to finalize the order for power transmission switching at etc. By 30 September 25th. This is a recent update on the monetization of five new HAM assets I.e. the tranche two of HAM. Over the past few months our leadership team engaged in intensive discussions with several prospective bidders investors to monetize our second lot of five hamp project.
So those projects are Raipur, Vishakhapatnam corridor od5, od6, ap1 and Khammam developer Lee package 1 and 2. So our goal was to secure a partner who could provide both financial strength and the sector expertise to maximize value of our stakeholders. It is a pleasure to inform you that during this week we executed a binding offer document with new Infra Income Opportunities Fund. Under this agreement our holding company SGS will sell 100% of its equity stake in the five wholly owned subsidiaries managing this HAM assets. This milestone marks the cumulation culmination of a well or tested negotiation process and demonstrate market confidence in the quality and profitability in these infrastructure projects.
The enterprise value of these of the entire Transaction is at 3585 OT4 crore and the total equity invested in these and the total debt obligation of all five assets are at 767 crore and 2200 crore respectively. Soon we will be initiating the process of fulfilling the compliances of the condition precedence as per the binding offer, which includes client approval, lender’s consent and other representation and warranties. We expect to conclude these formalities and expect to conclude the transaction within this financial year. This transaction will deliver significant strategic benefits to the group by strengthening the balance sheet and reducing leverage, thereby enhancing our financial flexibility.
The realized fund can be redeployed into our new HAMP bed road expansion or other high return infrastructure opportunities. We believe this deal achieved a robust valuation positions the company for accelerated growth and value creation in the upcoming years. Regarding the equity requirement on the HAMP projects On the balance of HAMP projects the total equity requirement for 11 HAMP projects those are balance is 1066,604 crore rupees and as of June 25, 997 crore has been infused out of the remaining 298 crore is scheduled to be done in nine months of FY26 followed by 183 crore in FY27 and 187 crore in FY28.
Let me now give an overview of the other significant updates of Quarter 1 FY26. The company has secured its first transition project from PFC Consulting Limited in boot model with a project cost of approximately 350 crore for establishing the Interstate Transmission system in the Eastern Region Generation Scheme 1 in Orissa. The project duration is 35 years from the date of commissioning. Additionally, the Company has received a project for military engineering services valued at 117.8 crore for creation of integrated material handling facilities at Naval Dockyard in Mumbai. Moving on to the Financial Highlights of Q1FY26 the revenue for Quarter 1 FY26 reached 1,709 crore with an EBITDA of 236 crore and at an EBITDA margin of 13.79%.
PAT for Quarter 1 FY26 stood at 125 crore with a PAT margin of 7.34% compared to Rupees 140 crore and a margin of margin 9.27% in Q1FY25 On a standalone basis our gross debt stands at 1049 crore. This comprises of 664 crore working capital debt and other term loads and maturities. Now the consolidated financials are at revenue of a quarter one FY26 reached 1482 crore with an EBITDA of 268 crore and an EBITDA margin of 17.52%. PAT for the quarter one 26 stood at 99 crore with a PAT margin of 6.7% as compared to 163 crore at a margin of 10.64% in quarter one FY25 as informed in last two quarter as well.
The dip in consolidated revenue and PAT is due to elimination of intergroup transaction with solar SPVs for solar projects which are recorded as capital work in progress in consolidated accounts. While standard results reflect EPC revenue and taxes, the tax cost remains in consolidation results until the SPVs start generating operational revenue after which the margins will improve. Let’s explore what’s next turning into our future strategy plans as we are confident aiming for ordering flow of around 11,000 crore in FY26 with clear data backed strategy to secure 75% from roads and railways where our execution capacity outpaces competitors and 25% for rapidly expanding verticals.
Our historical dominance in roads and highways continues to drive core growth but we are not resting on our laurels. Recognizing increased competition and margin compression, we are taking proactive steps to reshape our portfolio for a long term value creation. We are aggressively entering into high growth decent margin sector like Basin Transmission Distribution, capitalizing on the deep engineering routes and a proven execution track record. This is not just diversification and targeted expansion into future profit pools. Our relentless focus on strategic bidding, cost control and technology driven project management is designed to protect and expand margins, minimize the debt, maximize shareholders return.
In essence we are positioned for accelerated growth and superior returns. Diversified pipeline, financial discipline and the bold sector bets are key levers as we redefine ourselves as the future ready multi sector infrastructure leader delivering outside value to our investors year after year. I would now like to hand over the call to the Goindia team for further deliberation and future for the further question answers.
Questions and Answers:
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 2. Participants are requested to use handsets while asking a question. In order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Should you have a follow up question we would request you to rejoin the queue. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Shravan from Dollar Capital. Please go ahead.
Shravan Shah
Thank you sir. First one is the latest 5M deal. So sir if I work out or 3584 corrode is the EV and versus equity and debt amount what you mentioned 767 and 2200 crore. The total is 2967. That means the equity value that we are getting is 617 crore versus 767 crore invested. That means a 0.8 time price to book. Correct me if I’m wrong.
Harendra Singh
Yeah, almost we are at correct stage 3584. And the debt is 2200 crores. Into this the total 767 crores of equity is invested.
Shravan Shah
But sir, then not able to understand why we are selling at 0.8 time price to book.
Harendra Singh
It’s not I think 1.8 times, not 0.8 times. You see. You see the number is 3584 crore of enterprise value. 2200 crore is a debt. So the net amount which we will be getting is 1384 crore against the equity investment of 767 crore.
Shravan Shah
Okay, okay, okay, okay. My mistake, my mistake. Got it. Second. And then this cash we will be getting by.
Harendra Singh
Sorry,
Shravan Shah
this. This cash amount of when we’ll be receiving this cash.
Harendra Singh
We are expecting that two of the projects where the COD and finally NOC firm lenders and clients could be managed within next three months by December and further next three probably by March.
Shravan Shah
So if you can break in terms of the value how much we will be receiving in FY26 and.
Harendra Singh
Everything every total amount. What we would be we are expecting is we would be getting within the FY26. So only so by December 2025 of say let’s say for this particular quarter three of the quarter quarter FY27 26. Tentatively two of the project could be done as a transfer and the rest 2, 3 will be done by March 26th. So everything would be done within the year only.
Shravan Shah
Okay. Okay. And then, then whatever the gap would be that we will be reporting as an exceptional gain in the standalone books
Harendra Singh
of course
Shravan Shah
on the equity transfer.
Harendra Singh
Yes, yes. Yes.
Shravan Shah
Yeah. So now on the operational front. Sir, so this.
operator
I will request you to get back to the queue for follow up questions please.
Shravan Shah
Okay.
operator
Thank you. The next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Vaibhav Shah
Yeah. Sir, when do we expect to receive the appointed dates for the AMP projects especially the VRK ones.
Harendra Singh
So there are five projects where the appointed date is expected. So one is which we have received very recently is New Delhi deliver session. That is on 6th of August. Next week we are going to have this appointed date for Ahmedabad HAM project and subsequent to that in September only we would be able to receive the appointed date for both Jharkhand project. This is 10 and 13 of Varanasi Kolkata corridor and rest last one which is the Ayodhya and that project. We are expecting that somewhere in November we would be getting the appointed date.
Vaibhav Shah
Sir. And any what are the expectations for LOA on output central both the packages.
Harendra Singh
So those project where the land acquisition Is at about say 42% as of now. So the minimum requirement is 70% for issuance of alloy. So probably it will take another. It will take another three to four months. So by December we are expecting the LOA could be released.
Vaibhav Shah
So so from these five hams, four hams by ad spending what kind of revenue are you factoring in? And also for the MSRDC project for FY26.
Harendra Singh
So we are not considering anything for from MSRDC project because say since the alloy would be we will be getting then the appointed is likely to be declared. So it is not expecting. We are not expecting much from those projects. But apart from these those projects is four ham which we are targeting about 1200 crores of total order execution in these four hams within this year.
Vaibhav Shah
Okay so what is the receivables currently and of that what is the HAM and solar?
Harendra Singh
The majority portion of receivable is HAM and solar only. So the solar SPB the receivable is around 458 crore rupees and HAM project is 395 crore rupees in the total number. And the total number is 1360 crore rupees.
Vaibhav Shah
So you are expecting the solar receivables to come down sharply. So when do you expect the overall.
Harendra Singh
Something something has happened. We have executed around 300 crore during the month. During the month or during the quarter. So out of 300 crores we could receive say the number which was at the same and remains same. So whatever was the closing number for March 25th remains the same. So it’s the only 300 odd crores of disbursement could happen within this year. But now the things are very rapidly because 83% of the sanction has been done. And we are getting the release of funds from banks through spv. HG INFI is also getting this. So by September and by December say things would be 100% we would be recovering the entire receivables from SPV to banks.
Vaibhav Shah
Okay sir. Lastly I missed the initial part. Initial commentary. What is our guidance on revenue and EBITDA margin for the entire year? And why were the margins impacted in 1Q so we saw that we have put 1011 crore of one offs which is impairment losses. And it was 5 crores in Q4 as well. So what are these entries?
Harendra Singh
So I think the reason behind for 2.2.5% of the immediate this EBITDA correction has been there. So there is one of the item which we were expecting. The change in law in Ganga Expressway. There’s a change in law of royalty revision, is there? So in this project of Adani we are eligible to get anything variation like change in loans. Variation is us from the client. Whatever is being approved by a client. So as of the recent trend we are revealing the facts that they are likely that change in law approval is not likely to be the there within this particular year.
So it will take. It is going to take time. So we have corrected our number around 40 crore rupees. So because of that number there is a deep correction in the EBITDA margin. Otherwise in none of the other projects the margin correction has been done.
Vaibhav Shah
So entire impact has been taken off right now or some we can explain.
operator
I will request
Harendra Singh
43 crore rupees which is 11 crore is exceptional item. If you see. So this is there. There is a provision has been done and around 43cr out of Ganga Expressway that we have corrected in our margin.
Vaibhav Shah
Okay, thank you. I’ll fall back in with you.
operator
Thank you. The next question is from the line of Sarvesh Gupta from Maximal Capital. Please go.
Sarvesh Gupta
Good afternoon sir. And congratulations on the transaction. So.
operator
Sorry to interrupt you. Your voice is very low.
Sarvesh Gupta
Is it better now?
operator
Yes sir. Thank you.
Sarvesh Gupta
Yeah. So sir, congratulations on the transaction. So just continuing on the previous question. So you know earlier we were consistently being able to deliver around 16% EBITDA margin. I think last quarter we were in around 15%. And now this quarter we have delivered like less than 14. So. So you said. So 14 crores you are saying is an exceptional item for this quarter.
Harendra Singh
No, no, no. I am correcting it there. Last year, last quarter it was a 5 crore of provision was except for has been done by the auditors for the long due receivables as a whole. It is now 74 crore rupees of total provision has been done till date against the debtors this current asset receivables. Okay. This is the one thing which has happened is the other Item which is 43 crore rupees. This is a change in law item which we are not expecting to get realized very soon. Within the fear as far as Adani project where it’s a back to back arrangement with Upida So where we are not looking immediately.
So we are corrected that number the margin by 43 rupees.
Sarvesh Gupta
Okay, but is that have we assessed. All the projects
Harendra Singh
for the shortfall? Otherwise all other projects are going as per the expected margins and.
Sarvesh Gupta
And have we done everything that we were required to do across all projects or are there any future provisions also that we need to take from Q2? Should we expect normalized margin of 15, 16%?
Harendra Singh
It is likely to be normalized margin only. So we are not see we never have factored such things. Where the current asset or unbilled revenue is having some contract or different lanes. We usually have the certainty of those numbers. Then only we’ll keep it. Otherwise we what we did last and last quarter. So the provision being done on the basis of their contractual auditor’s obligations.
Sarvesh Gupta
Okay, okay. And so on the road order. So what is the expectation now? Because even in this quarter, you know, last two, three quarters and last six quarters or the industry has not received but we have been hopeful because NHAI had a pipeline. So you know, what is the expectation now and are there some tangible work that has been done from their side? And in terms of our pipeline, what where are we, what is the percentage that we are looking to sort of win in the near future etc.
Harendra Singh
Recent Past we have seen a significant improvement as far as sentiment is concerned. So as of the press release they already have declared the pipeline of the project which are going to be say awarded within this year only. There’s a long pipeline, more than 5 lakh crores of projects which are there with including BOT, HAM and EPC. And apart from that there’s a the correction in the long awaited correction and the pre qualification criteria has been released. So in both in EPC and ham. So that gives us the relief in the sense that the project pipeline is there but the only two riders which are there.
One is the quality of the DPR where the DPR checks being taken for time, so much of time and the land accretion which always has been the real critical area, gray area rather where the progress and any of the claims do occur. So in that sense they are just guaranteeing that 80% of the land as per the contract should be there prior to issuance of alloy. So these are the two factors which are taking a bit of a time but we are very much hopeful and I think the ministry is very much optimistic of awarding this at least 3.5 lakh crores of orders within this year only.
So we are expecting the traction to be There by November, December onwards not many projects are likely to be awarded.
Sarvesh Gupta
What will be our full year revenue guidance for this year? Sir.
Harendra Singh
It remains same. It is 7,000 crores of. Because we did around 13.5% year on year for the quarter one and almost will remain in this range only.
Sarvesh Gupta
Okay sir. Okay. Thank you and all the best.
operator
Thank you. The next question is from the line of Vinit from Investech. Please go ahead. Hello Mr.
Veenit Prasad
Hi. Yeah. Am I audible?
operator
Yes sir.
Veenit Prasad
Hi. Hi. Good afternoon sir. So just wanted to recheck on this revenue growth guidance number. Now given a lot of our projects currently either in L1 stage which are Maharashtra orders, 3, 4 HAM projects where we are yet to get appointed dates. And if you exclude a lot of these projects our executable order book currently stands at less than 10,000 crores. Considering this, how confident are you of us achieving 7000 crores? And what should actually drive such a strong execution or conversion into revenues?
Harendra Singh
So if you can see the project which we are at very advanced stage of completion like Ganga, like Odisha, all OD5 6, AP1, KD1 2 and even Kernal. So there are the project, these whatever is the balance would be completed. So this is the one thing which is. And again the solar and some significant part of best execution is likely to contribute within this year only. So if you see the other railway projects where the progress was not that good in the initial phase of the project because of the design and the land issues. So now that has picked us and in quarter 2, 3, 4 of this particular year we are seeing around thousand crores of execution in railway only.
So in these new projects where the appointed date is going to be they are declared and including New Delhi radio station this is around 15 crore crores of execution is likely to be there in quarter two, three and four. So this gives put together that we would be around 7,000 crore even if we are not considering anything to be coming from Nagpur Chandrapur projects.
Veenit Prasad
Understood? Understood sir. And sir, even on the margin guidance given we have done slightly lower margins this quarter. How confident are you of delivering 15 and a half, 16% EBITDA margin for the full year. And I’m just asking because now the ask rate to get there is slightly on the higher side where we’ll have to deliver 16, 16 and a half percent EBITDA margins consistently for the next three quarters to be getting anywhere around EBITDA margins which we did last year.
Harendra Singh
Basically it’s only checking upon the margins. If anything is not guaranteeing our the same. So It’s a matter of only a time when quarter four or quarter one of this year we have seen the margin dip is there otherwise all the projects we do have a decent margins and we are doing such projects. And with the margins probably in the range of 15 to 16% we are quite hopeful that by the year end we would be maintaining the same speed.
Veenit Prasad
Okay. So for next three quarters we should be back to 15, 16% margin levels.
Harendra Singh
Yeah.
Veenit Prasad
Okay. Okay. Thank you so much. Thank you.
operator
Thank you. The next question is from the line of Vishal from Antec stock broking. Please go ahead.
Vishal Periwal
Yes sir. Thanks. Yes sir. Thanks for the opportunity. You mentioned in your initial commentary that 83% of the debt for the solar is sanctioned. So have we taken any disbursement from that side?
Harendra Singh
No, no. See the sanction to disbursement there is a gap. We have only has taken the disbursement about 60%. Though we have progressed it’s around 58% roughly though we have progressed around 80, 78%. So there is a deficit. There is a gap of about 30% in what we have progressed to what we have. The loan has been disbursement. The loan disbursement has been done. So this is.
Vishal Periwal
Yeah. Sorry sir, sorry.
Harendra Singh
So the sanction is 83%. The rest is 17% of the sanction is still awaited. Where the progress is going on under wherever sanction has been done, it’s the only partial disbursement or only few of the plants where the disbursement is not yet done. So in July and August, September until November we what wherever and whenever we are going to complete the entire thing by December. So we are hopeful that as we. So this is a 45% of the balance disbursement would be done 43, 4%.
Vishal Periwal
Okay. Okay. So see if one has to understand what is the total debt that is in we have taken for this solar as of now.
Harendra Singh
So it’s around 1100 some crore rupees. 1100 in the total. I am not remembering right now. It’s 11 8.
Vishal Periwal
Okay. Okay. This was related to the working capital. Like you know, just thought to check. Okay. Secondly sir, on that battery energy storage you did mention like you know 500 crore is the equity that will be putting. And if one do a financial closure at maybe like you know 80, 20 then the project cost come to almost like 2,500 odd crore. That is one. And second, I mean like you know when we are putting cost is not.
Harendra Singh
More than these project cost is around 1800 crores. All three. All three best projects. This project is current around 1800 crores plus GST. And the total debt. The equity which Is committed is 500 crore. Which is 25% of the total project cost. And out balance is dead and out of the total debt. Once we commission this project we would be able to get around 300 crores of grant from government in all these three projects.
Vishal Periwal
Okay. So 1800 plus GST and I’m 300 crore grand. That’s a total project cost.
Harendra Singh
1800 plus GST minus 500 is equity is becoming 15 records of bed. And less than 300 rupees would be plus 1200 crores of debt would remain once the grant is settled.
Vishal Periwal
Okay, Got it. Got in. My mistake. Yeah. 1800. Okay. So. So I think then.
operator
Sorry to interrupt you, Mr. Vishal. I will request you to join back the Q4 follow up questions please. Thank you. The next question is from the line of Jam Jain from ICICI Securities. Please go ahead.
Jainam Jain
Thank you for the opportunity. Sir, I wanted a couple of data points for working capital. So can you provide the number for inventory, trade receivable, contact assets, trade payable and contract liability.
Harendra Singh
So inventory is at all the same number. It’s 519crores. Inventory and working capital. Say you are asking for tickets. 60 crore rupees. And current asset is 1310 crore rupees.
Jainam Jain
1400. Oh so sorry, I didn’t get your contact asset number. Okay, so trade trade tables and contract liability.
Harendra Singh
Sorry.
Jainam Jain
Trade payables and contract liability.
Harendra Singh
The contract liability is trade payable. So trade payable. Just a minute. Trade payables is around 1324 crore rupees. And
Jainam Jain
okay.
Harendra Singh
Liabilities is around 1200 something. I think it’s 1200.
Jainam Jain
Okay.
Harendra Singh
But it’s around 1200.
Jainam Jain
1200 crores. Okay.
Harendra Singh
Because Datab already has given trade payables is. Yeah. 130024 crore rupees. Correct.
Jainam Jain
Okay, that answers my question. Thank you so much.
operator
Thank you. The next question is from the line of Shravan from Dollar capital. Please go ahead.
Shravan Shah
Hi sir. Just to complete this thing. So standalone cash and bank balance is how much? Sir,
Harendra Singh
162
Shravan Shah
162? sir. 162 cr.
Harendra Singh
Correct. Correct.
Shravan Shah
Yeah. And retention money is how much. And unbilled revenue is.
Harendra Singh
Given the 1310. 1310.
Shravan Shah
Okay. 11310.
Harendra Singh
Debtor of 1360 crore rupees. There is a retention and deposit of about 170 crore rupees.
Shravan Shah
170. Okay. And mobilization advance is how much? Sir?
Harendra Singh
382.
Shravan Shah
382. Okay. And sir, this 500 crore BE equity. You said this uh 1 crore. We have invested another 119 crore in this year. And uh, next year will be the remaining. The balance entirely in FY27.
Harendra Singh
Next year some portion would be done. Next year 100187 crore rupees. And probably in 28th the balance would be done because the first project is going to be done in FY27.
Shravan Shah
Okay so then. Okay, so this year 120 crore, next year 187 crore and balance will be in
Harendra Singh
correct.
Shravan Shah
correct Okay. Okay. And sir, if you can repeat the ham equity to be invested in this year and next year for 28. I heard the figure 187 but balance in 26 and 27 is how much.
Harendra Singh
The projected is. The balance is 997 which is being say which has been done. So you see the projection is for the year it is 427.
Shravan Shah
Okay.
Harendra Singh
That is a total number including. Okay. Okay. Sorry. So there is a total number including solar and best. If you want to split it out in such a manner. Equity which is balance for the year it is including best it is 427 crore rupees. Correct.
Shravan Shah
No sir no.
Harendra Singh
So if it is only roads then it’s 298.
Shravan Shah
298 crore means full year of FR 26 or balance 9 months.
Harendra Singh
26. 9 months. And then 183. And then 185.
Shravan Shah
83 and 185. Okay. So total. Okay. And for transmission how much is equity needed? And for this year and next year how much we will be investing
Harendra Singh
this. Year 10 crore rupees. Next year 25. And further 22 crore rupees and FY28. So if you see the total number. For this year it is by 4:27. Followed by next year 438. And next to next year 388. Total commitment balance 997.
Shravan Shah
Okay. Okay. Got it. Got it. Yeah. And sir, just to. Yeah, yeah, yeah. I, I will. I will complete. I, I will. I will complete this. I will complete this. Sir, just to clarify on this EBITDA margin provision. So this quarter you said 74 crore provision. We have done till date. Out of that how much was it till effort? 25. And in Q1 how much we have done and what you are mentioning 43 crore is, is yet to be done or. Yeah it is. It is part of 74 crore for. For Ganga.
Harendra Singh
So the provision of 74 in total only 5 provision has been done in this quarter. Earlier provision would hold at 5 rupees. But for this year a quarter 43 crores of not the provision. It is the margin we have taken for Ganga expressway project because of the one of the items. This is a change in law which we likely expecting. It may take some time.
Shravan Shah
Okay, okay, okay. So this will be maybe a part of other expenses or somewhere. It will be part of this 43 crore that we have taken a hit.
Harendra Singh
Expenses. Basically it’s. No, no, it’s not expenses. Basically it’s the margin dip already has been taken. It’s not provision. Margin dip already has been taken.
Shravan Shah
Okay, okay, okay. Got it, Got it, Got it, Got it. Yeah. Thank you sir.
operator
Thank you. The next question is from the line of Mohit from ICICI securities. Please go ahead.
Mohit Kumar
Yeah, good afternoon sir. And thanks for the opportunity. My question on the deal, sir. What will be tax implications on the realized gains? What would be tax implications on the gains which will arise from this deal?
Harendra Singh
Debt reduction will be 2200 rupees.
Mohit Kumar
No, sorry about tax tax implication. Tax. What with the tax tax which you pay on the realized gains. Yeah,
Harendra Singh
we are not worked out yet.
Mohit Kumar
Understood. And have you given any roofer for the python of the asset and the. And also will be. Will we be doing the maintenance work. Post transfer of asset to the new owner?
Harendra Singh
No, no. It’s outright selling the asset out. It’s outright transactions.
Mohit Kumar
Any rofer for the. For the pipeline of the future asset? No. Right.
Harendra Singh
No. I think the future asset which is likely to be there is Karnal inroad which probably we are looking at further selling it out. So it’s nearing completion. So by June or September of next to Next say by FY26 and FY27 we are expecting to close the deal.
Mohit Kumar
And so are we going to do maintenance work on this?
operator
Sorry to interrupt you Mr. No, no.
Harendra Singh
We are not doing any maintenance work in these. In these projects. This is outright selling the project. Entire transaction is to be selling out.
Mohit Kumar
Understood. Thank you. All the best. Thank you.
operator
Thank you. The next question is from the line of path from JM Financial. Please go ahead.
Parth Thakkar
Hi sir. Thank you for the opportunity. I just wanted to ask if you can quantify your benefit time and also if we have put out any bids where results are yet to be announced.
Harendra Singh
Sorry,
Parth Thakkar
can you quantify our bid pipeline?
Harendra Singh
bid pipeline?
Parth Thakkar
Yeah. And also if we have bid for any projects where results are yet to come out.
Harendra Singh
So it’s around in all three sectors we have submitted around 16,000 crores of project where the bid results are yet awaited. And apart from this, the Pipeline which we are expecting say as we had already had explained about it because it’s a pipeline, huge highway pipeline. But we are expecting that we will be building around 1 lakh crores of highway, around 50,000 crores of railway and another basin solar projects in the upcoming time which we are expecting that we should get at least 10,000 crores out of these bit submissions.
Parth Thakkar
Okay sir, can you just quantify the solar build pipeline 1000.
Harendra Singh
The solar bit pipeline is in two say in a different mode. It is the best as well as solar because that’s also there around 20,000 crores of orders which are yet to be awarded for the year. And transmission also there is around 50,000 crores plus of bit pipeline which is today available.
Parth Thakkar
Okay, thank you sir.
operator
Thank you. The next question is from the line of Vishal from antique stock broking. Please go ahead.
Vishal Periwal
Yeah. Yes sir. Thanks for the follow up. So on this battery energy storage system are the equipment awarded?
Harendra Singh
The first round of negotiation has been done. So our team is in China only. So very soon they are going to come back and probably all further negotiation and due diligence then maximum a month we would be able to close it.
Vishal Periwal
Okay, got it. And. But.
operator
I will request you to mute yourself whenever the management is speaking because there are.
Vishal Periwal
Okay, okay, fine.
operator
Voices coming from your side.
Vishal Periwal
Sorry, sorry. I’ll just ask question. Yeah, I’ll ask question and then mute. So maybe follow up for that. I think if we award a project now then probably like you know, the costing coming at the range of like you know, maybe 0.8 cr per megawatt hour and the project cost that we have mentioned that comes to almost like you know, 1.2, 1.3 megawatt per hour. So I mean can the project cost actually go down? Because if you are warding now and the battery prices have corrected in the last six, eight months.
Harendra Singh
You are probably very much correct. I think there is a bit of a correction which we have seen in the last six, eight months only. And what we have estimated at the cost which are going to be there and the discovery which of the price which we are now negotiating at. So there’s upside chances that we would be having at least 10% upside in the margins front.
Vishal Periwal
Okay, that’s helpful sir, thank you. And I’ll come back to the queue. Thank you.
operator
Thank you. The next question is from the line of Madhavendra Kumar, an individual investor. Please go ahead.
Madhuvendra Kumar
Yeah, hello. Hello.
operator
Yes sir, you are audible. Please go ahead.
Madhuvendra Kumar
Sir. I want to understand one thing, how HM projects work. I Mean we have sold this project. So are these projects completed revenue boot and now we are selling it. So can you please help me understand how it works?
Harendra Singh
I can’t understand you sir.
Madhuvendra Kumar
The the project that we are selling means how these selling work means are these products projects are completed and revenue has been good. And now we are selling to release capital.
Harendra Singh
These projects are about 85 to 90% completed. So once we have received the provision completion into these projects we have started see started this monetization proceeds. So by the six months. Within the six months entire completion would be done and we are completing. And by the time we complete we will be getting the NOC and we are going to sell this.
Madhuvendra Kumar
Okay. So they are sold after after completing and putting all the revenues. Okay.
Harendra Singh
[Inaudible]
Madhuvendra Kumar
And the next question is do you think that execution and growth will improve from this quarter onward? Ongoing quarters.
Harendra Singh
Execution dip.
Madhuvendra Kumar
In the Recent quarter this Q1 I think there was a slight miss on execution front. So from Q2 will be the execution.
Harendra Singh
Has been quite quite good as far as almost 13% plus. But it’s the only problem. It’s not a execution risk. It’s only a margin dip which we have seen because of the margin correction which over 40 crore rupees. As I already had explained.
Madhuvendra Kumar
Our revenue and path is still lower.
operator
I will request you to rejoin the queue for follow up questions please. Thank you. The next question is from the line of Shan from dollar capital. Please go ahead.
Shravan Shah
Hi sir. To consolidate and console cash is how much? Sir.
Harendra Singh
I think I’m not having the ready member of console. I will ask my CSO to get back to you.
Shravan Shah
Okay. Okay, got it. And second sir, the 7,100 crore revenue that we are looking at So I understood the whatever the balance the projects where we are 70% plus kind of of completion is that. That is roughly 1500 crore or 50 odd. So that we will be completing. We have already mentioned and four HAM projects thousand odd crore. 1700 crore. We have done so close to. If I Summit up around 4300 odd crore is there. So just trying to understand the remaining projects where obviously Maharashtra one We are saying we are not factoring any any revenue.
So the then the main revenue likely are to be to be come would be a Chennai Cherupati which is and Kosi Parikrama maybe and maybe Bilaspur and Jan Kipur railway. So if you can help us the remaining railway projects except the Bilaspur and Jan Kapur how much more revenue we can are likely to get in the in the balance.
Harendra Singh
So we are Expecting to the entire completion would be done in DMRC Metro and the Belas project would be 100 completed. Will pack up very fast now onwards because of the initial brown being a brownfield project. So in New Delhi railway station this would be. We are expecting around 200 of execution within the year. So it’s around 1100 crores of railway execution which we are expecting in nine months. And apart from this there’s a solar 500 crore which we already total will be done and around 300 will be coming from best. So this is put together if you consider the new ham ward four four ham where the appointed rate is being declared around 1200-1300 crores.
So this is coming at about say even more than 5,400 crore rupees which is is probably the number which is coming. This is balance which we done in.
Shravan Shah
Okay. Okay. And then next year as previously we guided we will be doing a 8,000 crore plus kind of our revenue in FY27.
Harendra Singh
Yes. That would be around 8,000 crores. Right.
Shravan Shah
Okay. Okay. Okay. Got it sir. Thank you. And then sir, lastly on the capex front last time we said nothing much capex in this year done. Okay. Okay. Anyway. Okay. And even not in for next year also would be very minimal.
Harendra Singh
So we are having almost very good gross work and where the project which we are almost completing. So this entire fleet of our construction equipment is free to be deployed to sufficient to about 8,000 non thousand crores of project.
Shravan Shah
Okay? Okay. Okay. Got it sir. Thank you. All the best.
operator
Thank you ladies and gentlemen. We will take that as the last question. I now hand the conference over to the management for closing comments.
Harendra Singh
Thank you for joining us today. We have a strong year marked by solid financial performance and a growing order book and a committed team. We remain confident of our continued success and here to exist. For any further queries please feel free to reach out to our advisor Goindia Advisors. Thank you.
operator
Thank you ladies and gentlemen. On behalf of goIndia Advisors and HG Infra Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.