HG INFRA ENGINEERING LTD (NSE: HGINFRA) Q3 2025 Earnings Call dated Feb. 07, 2025
Corporate Participants:
Harendra Singh — Chairman and Managing Director
Analysts:
Saloni Ajmera — Analyst
Shravan Shah — Analyst
Mohit Kumar — Analyst
Deepak Purswani — Analyst
Yash Dedhia — Analyst
Vishal Periwal — Analyst
Vaibhav Shah — Analyst
Jainam Jain — Analyst
Parth Thakkar — Analyst
Uttam Kumar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Infra Engineerings Limited Q3 and Nine Months FY ’25 Earnings Conference Call, hosted by Go India Advisors. As a reminder, all participant lines will be in 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 Ms Saloni Ajmera from Go India Advisors. Thank you, and over to you, ma’am.
Saloni Ajmera — Analyst
Thank you. Good morning, everybody, and welcome to Infra Engineering Limited Earnings Call to discuss the quarter three and nine months of FY ’25 operational and financial performance, hosted by Go Advisors. We have on the call Mr Harendra Singh, Chairman and Managing Director; Mr Rajiv Mishra, CFO. 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 risks that the company faces.
We now request Mr Harendra to take us through the company’s business outlook and performance, subsequent to which we will open the floor for Q&A. Over to you, sir.
Harendra Singh — Chairman and Managing Director
Thank you. Sir. Thank you,. Good morning and welcome to HG Infra Engineering earnings call for our quarter three and nine months FY ’25 results. As India celebrates 76th Republic delay, the country remains one of the bright spots on the global economy and the nation stands poised to seize immense opportunity. I hope you had the chance to review the investor presentation and financial results, which are now available on the exchange. The government’s continued focus on infrastructure creation will play a pivotal role in making the country the world’s first third-largest economy in the foreseeable future, creating opportunities for millions of people. At Infra, we believe we have a larger role to play in India’s development agenda for now and into the future. On the strength of the interesting potential of our business model, prudent deployment of resources across every facet of our operations, we have been able to deliver exceptional performance in the Nine-Month FY ’25 and believe to do so in the coming years as well. NG has fortified its position as a reliable and important player in India’s infrastructure and in renewable sector.
With a successful 22 years track-record in constructing roads and highways across the country and further, we firmly believe that the execution of solar project will gain momentum for sustainable growth, acting as a significant tailwind for our company in the coming years. Let me now provide some updates on the infrastructure sector. The Government of India’s vision for infrastructure development is deeply rooted into its goal of making India a $5 trillion economy with a long-term outlook region 2047, which inspired to make India a developed nation by its 100th year of independence. The national infrastructure pipeline launched in 2019 is a key initiative of this journey, aligning closely with the Union budget, which continues to allocate significant resources to infrastructure projects. The NFI began with an investment plan of INR1 lakh say INR11 lakh crores covering key sectors like roads, railways, renewable, energy and water segment. Sector-wide progress against the NIP and the budget 25-26 allocations clearly that the center has its strategy focus on Vixit Bharat 2047 and infrastructure development in-roads and railways a key catalyst of this journey.
The government has announced the budget for roads and highways by 2.4%, paving the way for accelerated infrastructure growth and locking newer opportunities for our companies like ours to drive innovation and nation building. As highlighted in the budget, each infrastructure-related ministry is set to develop a comprehensive three-year project pipeline under the PPP model. The strategy move — this strategy move will help us bolster investors confidence, attract greater private sector participation and unlock large-scale project opportunities. Additionally, it will establish a robust and continuous pipeline of projects ensuring long-term sustainable growth in the infrastructure sector. Renewable energy and the transmission sector, where India has set our target to achieve 500 gigawatt of renewable energy capacity by 2030, reinforcement its commitment to green energy. The government is also focusing on battery energy storage systems that is best to stabilize the grid and improve our reliability.
The Union budget includes investment in green energy corridors and transmission line expansion to support large-scale solar park and wind power generation. In addition, the MNRE budget of 25-26 has been allocated at INR26,000 crores, marking 53% increase from its previous year, further standing India’s renewable energy ambitions. Water irrigation, program like Jal mission and additionally focus on river linking projects wherein that strengthening the India’s water infrastructure will enable us to have a good opportunities in water sector as well. We, as a company see opportunities in all of our sectors, we have traveled long journey of seven years after listing of the company and as today we proud to — sorry, we can proudly say that we are on right track and with our traction in renewable energy sector in the preparedness to execute big-ticket size projects and enter into another segment like transmission and water. With this positive tone of my statement, let me begin by sharing the journey of this quarter and providing you with a glimpse of our operational highlights.
As of Nine-Month FY ’25, the order book stood at INR15,080 crores with highway strength at INR11,235 crores, railways and macro at INR2,289 crores and solar at INR1,56 crores. Our order book comprises 33% from HAMD, 67% from EPC and segment-wise road and highway contribute 75% railways 15% and solar 10%. Let me now provide an update on our ongoing EPC project. The Ganga Expressive project is at 81.2% completion and progressing as planned. The same is expected to be complete in next few months. And the Delhi UER project, which has always completed, only COD is awaited. The Kalim Mandhar project, which is again an EPC project of NHI, is at initial stage and currently at 5.4% progress. The progress has a bit delayed because of some changes in the design from the authorities. The project, which is the EPC, which of NHI was stalled for the last six months stands at 32.7% because of the land issue.
The settlement agreement with NHA was executed in December ’24. NHA and VA will complete the remaining work of Phase-1 by March ’26 and Phase-2 by March ’27. And as per the settlement agreement, the project cost has now been revised, descoping certain portion of ROBs from INR844 crores to INR650 crores. LOA from MSRDC, these two projects of Nagpur Chandrapur is likely to be received by March ’25 with the delay mainly caused because of — on account of acquisition and some alignment changes. Let me brief you the progress of the HAM project projects the Kandal Ring Road project has reached 55.1% completion and meanwhile, the Raipur Vishata Progress project that are OD 56 and AP1 projects, they are around 85% and 93%.
So we are on-track to finish all three projects of AP OD 56 by this financial year end. Having received the PCC as per the settlement agreement, we have already had applied the PCC. The project KD1 and 2, they have made solid progress with around 70% progress each. Both the projects will likely to be completed where the PCC is aligned within this quarter only and the balance of completion by June ’25. Discussions on the monetization of these five sets, which are nearing completion are set to begin soon and we anticipate that the entire monetization process will be concluded in this financial year and the upcoming financial year. Update on the monetization of four assets, which earlier we had executed a — as informed earlier, we have successfully monetized our three projects, wherein INR315 crores were received in FY ’23, ’24 and remaining INR54 crore received in October ’24, that is post-approval of NHIE related to GST change in locally. Regarding the fourth HAM project that is rewarded bypass, NOC was received from NHIE and the lenders in March ’24. However, because of some delay in the permission regarding ROBs it has a bit delayed, but now the SPA conditions are compiled for and the transaction is likely to be completed in February ’25.
So there is around INR133 crores expected to be received from Revani bypass proceeds in this quarter where we have invested equity of INR75.7 crores. Regarding equity requirement on HAM projects, the total equity requirement of 11 HAM projects, excluding Revadi bypass stands at INR1,733 crores and as of now, December ’24, INR930 crore already has been infused. Remaining INR123 crore is expected to be infused in three months of FY ’25 and balance INR300 odd crore to be infused in FY ’26 and around INR300 crores in FY ’27. Turning onto the progress of the railway projects, the project, which is around 70.3% completed though a bit delayed because of the land issue, now progressing as per the scheduled timelines. The Bilasu Himachal Pradesh project, that is our project is 51.6% complete, traversing well on-target. The railway station project is around 14.1% complete. So although initial challenges with land clearance and utility shifting have been addressed, now preparation in the state and traffic constraint — railway traffic constraint has slowed down the execution to — of the full-scale construction. However, these challenges are expected to be resolved soon, allowing the progress to gain momentum in this quarter and we will be able to complete this particular project well within the timeline only. The Dule Azara project, which is at 5.3%, the Gara Sundagar and project that is our Rangabad project are at 3.3% and 4.8% completion.
The slow progress of these two projects is primarily due to design and drawing revision and some land issue by the authority. However, we expect the progress to pick-up in the coming quarters. So update on the solar project here that in this financial year, we strategically see significant opportunities within the rapidly expanding solar sector by actively pursuing solar power projects under the government’s scheme, which is designed to boost renewable energy development across India. Through these efforts, the company successfully secured 183 solar power plants contributing a substantial 700 megawatt DC capacity in total. Of this HG is responsible and out of this estimated, the cost is INR2,243 crores EPP, that is excluding of GST. The land is agreement in all of these projects is in-place and the PB has been signed by the discount. And as of now, Project Progress has achieved around 30.6% where the installation commissioning is according to the schedule.
Debt funding for the solar project is in-full swing and approximately 70% of the project have received the sanction with partial disbursement in-place, the remaining sanctions followed — remaining sanctions followed by the disbursements are expected to be secured in-quarter four ’25. Regarding project financing, the total equity required for this solar project is estimated at INR721 crores. As of December ’24, approximately INR130 crores has been infused into the project. Another INR120 crore is expected to be contributed during quarter-four ’25 and with the remaining balance plan for FY ’26. This well-structured capital infusion plan ensures HG Infra has the financial flexibility to meet project milestones we are fostering long-term growth in its renewable energy portfolio. Let me now share other significant updates for quarter three and nine months of FY ’23, ’25. The appointed date for the Chenni Turupati project has been declared at 14th December ’24. And during the quarter, we also received completion certificate for the material project. The LOA of 484 in near to, AOCI in Uttar Pradesh was received on 9th December 24 and Naro’s junction to that is in Gujarat on 9th September 24.
Additionally, the two-way of newly awarded best projects has been received NTPC project on 22nd November 24 and GVNL project on 3rd January 25. As previously mentioned, NTPG’s best project is setting up 1845 megawatt, that is 375 megawatt are plant with a tariff of 2,38,000 per megawatt per month, generating an estimated INR52.83 crores in annual revenue over the course of 12 years in. The total projected revenue is approximately INR633.96 crores. The GVNL’s BS project, which is setting up a 250 megawatt, that 500 megawatt our plant has a tariff of INR2,25,985 per megawatt per month is also expected to generate INR68 crores of in annual revenue and over its 12-year term, the total revenue is projected to be INR814 crores. Now I will provide an overview of the financial highlight of quarter three and nine months FY ’25.
As the standard of financials in-quarter three FY ’25, our revenue from operations grew by 12%, reaching INR1,509 crores, up from INR1,346 crore in-quarter three FY ’24. EBITDA for the quarter stood at INR250 crores with a margin of 16.6% compared to INR214 crores as a margin of 15.9% in the same-period last year. PAT for the quarter stands at INR1,137 crores and the PAT margin of — at the PAT margin of 9.1%. Revenue for nine months FY ’25 reached at INR4,079 crores with an EBITDA of INR668 crores with a margin of — as of EBITDA margin of 16.4%, reflecting 19.8% increase compared to nine months FY ’24. PAT for nine months FY ’24 stood at INR365 crores with a PAT margin of 8.9%.
On a standalone basis, our gross debt stand at INR1,329 crores, which comprises of INR566 crores in working capital and other INR763 crores of term-loan maturities. The increase in the total debt by INR566 crores is attributed to the significant delay in the sanction of SPV’s approval of all solar plants from Discom and thereafone, the sanctions and disbursement which got delayed, which has now been resolved and on a track thus leading the time gape arrangement of debt, which is just one of the instance. However, the same will cool down and debt will be normalized in this quarter. Moving on to the consolidated financials. Revenue of quarter three FY ’25 reached INR1,265 crores with EBITDA of INR287 crores, an EBITDA margin of 22.7%, reflecting a 25.7% increase to quarter three FY ’24. PAT for the quarter three FY ’25 stood at INR115 crores with a PAT margin of 9.51% compared to INR102 crore at the PAT margin of 7.5% in Q3 FY ’24. And the revenue of nine months FY ’25 reached INR3,695 crores, reflecting a 0.7%, up slightly from INR306,070 crores in nine months FY ’24. EBITDA stood at INR819 crore and with a margin of 22.2%, marking a 12.3% year-on increase from INR729 crores and a 19.9% margin in the same-period last year. PAT for nine months FY ’25 was INR358 crores with a profit margin of 9.7% compared to INR349 crore and a margin of 9.5% in Nine-Month FY ’24. On our consolidated debt, which is INR3,233 crores.
Let us provide our outlook for the future. We have targeted an order inflow of INR11,000 crores INR12,000 crore for FY ’25. Until date, we have successfully secured new order approximately INR8,200 crores in projects from infrastructure and renewable, which includes the new projects we have won yesterday only for the redevelopment of New Delhi releastation on EPC model, where we are 49% partner in the consorption. We are confident to maintain an EBITDA margin of 15% to 16% and achieved revenue growth of 17% to 18% in the upcoming quarters. Furthermore, we are actively pursuing opportunities in new segments while concentrating on operational efficiencies, prudent capital allocation and strategic project selection to sustain margins and enhance shareholder value.
That concludes my remarks. We can now open the floor for the question-and-answers. Thank you.
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 their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Shravan Shah from Dolat Capital. Please go-ahead.
Shravan Shah
Hi, sir. Thank you for the opportunity. So before asking any questions, just needed all the balance sheet data points. So first, inventory, trade receivable, trade payables.
Harendra Singh
So inventory is INR405 crores. And the data that is the trade receivable is INR1,445 crores, 1,000 you require it.
Shravan Shah
Sir, debtors you said 1,400
Harendra Singh
INR1,545 crores. And trade payable is — trade payables is INR1,035 crores,
Shravan Shah
1,075 crore. Okay. Unbilled revenue, mobilization advance and retention money
Harendra Singh
So the retention money this is included in debtor retention money is around INR122 crore and this is contract asset which is unbilled revenue is INR1,297 crores
Shravan Shah
And mobilization advance?
Harendra Singh
INR305 crore.
Shravan Shah
And sir, you mentioned the gross debt at standalone level is INR1,319 crores
Harendra Singh
Or INR387 crore, crore. INR1,329 crores.
Shravan Shah
INR1,329 crores Okay. And cash is on standalone basis is
Harendra Singh
Around INR200 crores.
Shravan Shah
INR200 crore. And consult — sorry, sir.
Harendra Singh
This is INR150 crore, not INR200 crore.
Shravan Shah
INR160 crore. Yeah, yes. Yeah. And consol case is?
Harendra Singh
That I have not that little solid volatility. INR180 crore.
Shravan Shah
Okay. Okay. Got it. So now, sir, a couple of things in terms of the — so 4th-quarter now we are saying a 17% to 18% kind of revenue growth. And for FY ’26, last-time we said more than 15%, so that remains the same.
Harendra Singh
Yeah, that remains the same.
Shravan Shah
Okay. And in terms of the inflow, already we have to say INR200 crores and the remaining INR300 crores to INR4,000 odd crores, so if you can help us how much we have already bidded the projects and even if the segment-wise and how much more are we planning to bid by March? So even if you can also help in terms of the build pipeline segment-wise
Harendra Singh
Yeah, as we have received around INR8,000 plus crores of project till-date and around INR17,000 crores of project in which highway is around 9,000 and railways around 6,000 and solar — not solar to be very specific. It’s a battery and solar mix, which is around INR1,100 crore piece. So this is what already has — we have bidded. And apart from that, we are having a pipeline of highway and railway that in not in solar as of now, which we will like to bid. I think solar is one of the EPC project is there of ONGC that we will be bidding. So these are altogether around INR72,000 crores of projects in highway specifically more than 550,000, railway around 18,000 and solar around 7,000. Solar or batteries is around 8,000.
Shravan Shah
Okay, okay. Got it. And in terms of the — okay, now you to –.
Operator
Rejoin the queue for your follow-up question. Thank you. The next question is from the line of Mohit Kumar from ICICI Securities. Please go-ahead.
Mohit Kumar
Yeah. Thanks for the opportunity, sir. My first question is, sir, what do you make out-of-the government announcement of Pipeline for three years? Do you think that we can see some progress on this front in next few months?
Harendra Singh
Not in a few months, but definitely we are positioned in that manner because government is seeking the private investment to be there, especially in renewables and where the transmission is there. And apart from this in highway also, they have seen that the — any project, which not many of the projects are now coming on EPC. So in that sector also in water also, there is a high focus like in Easter rice Canal project, they are on-hand models. So they are all the project which now government believe that the private investment is likely to be there?
Mohit Kumar
Understood, sir. My second question is what is our share? I think you mentioned, but I missed out. What is our market — what is your share in the New Delhi redevelopment, what you say in the JV? And are you still looking to bid more for the railway station redevelopment? And how is the pipeline for that?
Harendra Singh
Yeah. As of now, I think immediately we are not having any of the old Delhi rail station likely to be there in coming future. But in this particular project where the 49% stake is up, where around INR800 odd crores of project exclusively is having the road elevated where they have to be billed for this access to railway station like an airport. And apart from this, we will be having some INR300 odd crores of share coming to us as of 49% in other MEP works. So this is all about this New Delhi registration.
Mohit Kumar
And this is included in the INR8,200 crores. Is that right, sir?
Harendra Singh
Sorry.
Mohit Kumar
And is this part of the order inflow, which announced INR8,200 crores, this is additional.
Harendra Singh
Part of this inflow, which we are totaling around INR8,200 crores out-of-the estimator of this INR11,000 for the year.
Mohit Kumar
Understood, sir. Thank you and all the best, sir. Thank you.
Operator
Thank you. The next question is from the line of Deepak Purswani from Swan Investments. Please go-ahead.
Deepak Purswani
Yeah. Good morning, sir. Sir, just wanted to check it out on the new projects which we have recently received in the BESS segment. So what would be the kind of the investment we would be requiring in this? And typically what are the kind of the cash-flow, which we mentioned about the revenue from each of the project of INR52 crores to INR58 crores in each of these businesses. But how should we look into the cash-flow point-of-view in this business? And what are the typical IRR profile in these kind of projects? And secondly, on the standalone debt front, there has been some rise from the last quarter to the extent of INR500 crores. If you can elaborate more, I mean, what was the specific reason for that? And what has been the execution on the solar project at the current juncture?
Harendra Singh
Okay. Let us just first touch your point of debt, which has been significant increase in-quarter three and also quarter two also, it was fall very-high. So the total solar project in which initial phase of land procurement to other activities where the ordering is to be done for securing the solar modules and other balance of plant. So that has involved a lot of cash where the sanctions which took time because there was some SPV approval which delayed by two to three months. And thereupon like last — in December end only, it started sanction and then the disbursement, now it is — they have started in the month of January and February rather. So for that timely arrangement, it went up to a very-high number. But again, it will be coming back to against INR600 crores INR700 crores, which earlier we have accentrated for. The second part, which you are saying that the receivables also and the contract assert also do have some kind of a scale higher because of that reason only in solar because we have executed around INR700 crores plus and we are ordered for around INR200 crores plus of a funds being invested order to the solar module and this is how the big involvement of INR1,000 crores into solar only.
As far as the solar project where we have already initially estimated that we will be having roughly around 18% EPC margins and around 14% plus of equity IRR, which we have initially estimated for. That remains the same in battery projects, which we are talking for the best. So these are the projects where we are going to set-up the battery energy storage systems where 65% of the total scope is around battery and the 35% is the balance of plant where the substations and evacuation is to be there. This is the entire scope of work. So we will be involving into doing this 30% 35% and directly SPV will be given the order to the other battery card. So ultimately, we have secured this project with a target that we will be having the cash-flow in this where around 14%, 15% of the equity RR is maintained. And apart from this, the order which is coming to AG and will have around 10% to 12% even more than 12% to 13% of the EPC margin. So this is how I think the project of do have the similar kind of a say as we are doing in HAM or we are doing in solar.
Deepak Purswani
Okay. And sir, in terms of the scope of EPC work-in this BESS, what would be the kind of scope of work for the — this is the best project for us?
Harendra Singh
Yeah. So as explained that there is around 65% which is going out to the — generally the supplier, which is the bottout item, which is a battery container and the power distribution system PBS. So — but the other part is which is a civil and the transformer and the substation and the switchyard which is we develop. So this is — this lies with the system, which we are already integrating and doing it for solar projects also.
Deepak Purswani
Okay. Thank you. Thank you and wish you all the best.
Operator
Thank you. The next question is from the line of Yash Dedhia from Maximal Capital. Please go-ahead.
Yash Dedhia
Good morning, sir. Sir, on the order book now, if I look at your order book, which currently stands at INR1,500 — INR15,000 crore, around INR4,000 crore of MSRDC, sir, sir is not having the right visibility. In fact, some other players are not even counting it as part of their order book. So given this, now you are targeting INR6,000 crore of revenue this year and INR7,000 crore maybe next year. Sir, how viable is that because ex of these MSRDC projects, we are left with very little, sir.
Harendra Singh
Okay. So if your specific point is give for the year, which we are estimating at about, say, touching or getting INR6,100 crores of around revenue in this year with this quarter is only balanced. So that is always not considering any MSRDC project. Further that,
Yash Dedhia
Sir, I’m talking about FY ’26. FY ’25 is well-understood, sir.
Harendra Singh
So in that scenario, which we are expecting around 17% to 15% to 17% growth year-on-year for ’26. So out of this we only has considered only a very small portion of MSRDC that is roughly around INR250 crores. So because the land where the realignment is being done and the land acquisition is going at a very, say, not at a very fast pace and the land of LOA, if you see any project of NHI, wherein the lander acceptance and actual appointed date usually will take a year or so. So in that scenario, we believe that by May, if they secure 70% land and they release the LOA by March or say, and within two months of that, the appointed date is there. So in those projects, they are the big difference between NHI kind of a project where the land acquisition and appointed date LOA and they the land acquisition LOA and the appointed date do not have a big say time gap.
Yash Dedhia
So the question was basically from the remaining part of the order book, which is around INR11,000 crore, excluding MSRDC, you are saying from that INR11,000 crore, we can extract INR6,500 crore-plus of revenue next year?
Harendra Singh
You see, you see there is INR2,300 crores of sold railway in which this railway station project, if we add this number also, this becomes 3,300. So there is INR3,300 of railway out of this significant portion is going to be carried out in next year, say around 1,500. Solar will all be completed because INR1,500 crores of solar, which balance is there, they will be all completed next year. If you see the big number coming out-of-the solar and railway and the HAM project, which we already are having INR500,000 crore balance and even in Ganga project, which is around INR800 crore balance. See, we see the numbers which we are operating as of now. So both altogether, which gives us the comfort that we will be reaching out very comfortably to 7,000 crores.
Yash Dedhia
Okay. And on the solar project, sir, now you are talking about 14% to 15% equity IRR, but then — and then we are getting some margins from the EPC business also. So including the margins on the EPC business and also including the —
Harendra Singh
This is return-on-equity is a separate portion and the EPC margin which we are doing the EPC of solar, that is a different portion.
Yash Dedhia
Yeah. So on EPC, you would require some working capital and then you require capex on which you are earning 14%. But if you include everything, sir, then how much of an equity IRR including EPC, what is the total equity IRR, sir?
Harendra Singh
So equity is definitely is 25% is a total project of INR2,300 crores. So this is INR700 crores. Out of INR700 crores, if you look at the returns, which is a year-on-year basis, not upfront. So this is a year-on-year basis. If you look into the EPC, which we are operating of INR2,300 crores, so we are looking at around 18% margin which are falling in within the timeline when we are doing this EPC. Okay. And you cannot just have totally of both together at one install.
Yash Dedhia
Okay. Okay. But sir, cash flow-wise, if you draw it out and extract the IRR, then
Harendra Singh
I have given the indication, because of the sanctions which took — were delayed, sanctions were delayed not because of the bank. The in-principle sanction was received somewhere in August or September only. But because of the SPV approval, which took almost three months delayed for three months. So that’s why this particular cash-flow, which now already say around INR400 crores of disbursement has been done within refractory only. So things are all now track.
Yash Dedhia
Okay. Sir, on the road side, finally, I mean, we’ve been reading that December onwards, there has been some push from the government side to sort of give more orders because nothing happened till December. So are you seeing any tangible changes in the ground in terms of ordering, which we can expect because till January also we haven’t heard much and now we are already in mid-February. So for this year and coming year, sir, are we seeing any changes on-the-ground because the spends are really low even though the capex budget is there, but there is nothing which is coming as the real spends from the government. And then there are concerns that with the Bharatana project mostly over, you know there is nothing much that is there in the pipeline from the government side anyways. So how are you looking at it and what are the you are picking from the government — from the ground, sir?
Harendra Singh
Definitely, it has been delayed for a long, I think it’s more than one and a half year where nothing has been picked-up as far as awarding is concerned ordering is concerned. But I believe there are many projects which the government has also get, say, got a cabinet approval where the certain DPRs because now the focus is very clear that because of the time delays, there has been some prolongation costs and so they are now focusing more on the first securing the land, having all utilities alignment clear, then they will be looking into awarding and this has been a bit delayed. And the further the approvals which earlier was being very easy, if you see two years back and now it is taking a bit of a time. So — but it’s not that it’s all the projects are dried out and there are not any projects to be rolled-out. So there are projects. We have also seen like Hyderabad outer is being announced and where the EPC projects already where the bid is likely to be invited. So it’s not that the projects are not there, but definitely the traction as of now what not may have seen, but I believe not big number is going to be there in-quarter four. But then upon, I again is having the optimistic say where the big amount of orders elected for coming from in NHA for.
Operator
Thank you. The next question is from the line of Vishal Periwal from Antique Stock Broking. Please go-ahead.
Vishal Periwal
Yes, sir. Thanks for the opportunity. Sir, one thing on this battery energy storage. You mentioned 35% is the EPC. So size-wise, this will be how much?
Harendra Singh
Sorry, I couldn’t understand your question. Can you please repeat.
Vishal Periwal
Yeah, sorry. Yeah. So battery energy storage system, which you mentioned 65% is a bought-out component, 35% is the EPC that we’ll be doing. So in that 35% in rupees crore, this tantamount to what number sir?
Harendra Singh
Yeah it would be roughly around INR500 crores.
Vishal Periwal
That is for the 100%.
Harendra Singh
For the entire both the projects.
Vishal Periwal
Yeah. So INR500 crores, this includes your battery plus the balance of plant. Right, sir.
Harendra Singh
Apart from battery. Yeah.
Vishal Periwal
And no, sorry, sir. I think I didn’t get that. So INR500 crore is an EPC work.
Harendra Singh
So yeah, EPC work, which will be — will be done. This is INR500 crores for both the project, which is 35% of the both.
Vishal Periwal
Okay, okay. Sorry. Sorry. I got it that. And then second on — I think you did briefly mention that we are also planning to enter into new verticals and what we put together is like recently we also made one higher — I mean like in the senior management. So any particular segment that we are planning to enter, any color that you can provide will be helpful, sir.
Harendra Singh
So look, I think in the space which we have recently has entered, which is renewable or green and in this particular transmission and say water, these are the businesses which we always look that if the opportunity is now being invited on a — either it was a NVT mode or the — or even a hybrid entity. So these are the projects which we believe that we look-forward that in any case for that distance when highway projects are not many and the cost, competitiveness and the aggression has gone very-high, where we are not able to have at least the orders as well as margins. So in that scenario, we are looking beyond the space for this instance like looking into the future opportunities, which their margins are also good and opportunities give both ways where the equity IRR is fine as well as EPC margins are good.
Vishal Periwal
Okay, okay. And then just a clarification that INR500 crores battery energy storage you mentioned, so it is not yet part of our order book. That’s fair to understand.
Harendra Singh
That’s not that. No. No.
Vishal Periwal
Okay, fine. Yeah. Sure, sir. That’s all from my side. Thank you.
Operator
Thank you. The next question is from the line of Vaibhav Shah from JM Financial. Please go-ahead.
Vaibhav Shah
After you mentioned that our total receivables is around INR145 crores. Just out of that, what would be your HAM receivables and what would be from solar?
Harendra Singh
It is 15 45 out of which solar constitutes INR535
Vaibhav Shah
And HAM?
Harendra Singh
And HAMS is 375.
Vaibhav Shah
We have seen some improved recoveries in Jan so-far in month of Q4.
Harendra Singh
In solar it has increased no doubt it has increased in solar as was the contract asset also and — but now since there are the projects which we are operating which are nearing completion like I expressed about Urisa projects and that where there are contract receivables, which in COS variations which all settlement agreement executed, now we are getting the payments within this. Like also, we had INR100 odd crores of projects which were all executed, but could not be built. Now it has been built. So we are now seeing that quarter-four maximum of this debtor receivables and the contract assets they are going to be within the range.
Vaibhav Shah
But solar would you see an increase in as of March ’25 as well.
Harendra Singh
That is not going to increase because the disbursement is not taking place. This is the disbursement is coming to SPV and SPV definitely is going to pay the EPC liability.
Vaibhav Shah
Okay. Okay. Sir, secondly, you mentioned that we are looking for a debt of closer to INR600 crore, INR700 odd crores. So that is by March ’25 or is it a longer-term target?
Harendra Singh
No, no, no. March ’25 only because this — I already has explained about it, because of the gap of six months where we want to secure the module orders, not to delay the time and the cost. So that was the big reason which we have increased a bit in this duration almost. But then again, it will be coming back to 600 to 700 only.
Vaibhav Shah
By March ’25. Yes, yes, yes. And sir, lastly, when do we expect to receive the appointed bids for four HAM projects, VRK, VRK2 packages and two more recently won HAM projects?
Harendra Singh
Project, they are advancing very well because earlier, I think the forest plant was not has given the clarity, but now the replacement of the forest plant has been given by NHI. So in that scenario by March-end or maximum in April, we will be getting the appointed for both the projects. Also, in the project with the land is 100% available. So as per the timeline, probably by April or May, we will be starting the project. We already have started the mobilization. And in also by June, we will be taking on the appointed.
Vaibhav Shah
And sir, you mentioned that MSRDC, we will be targeting revenue of INR250 odd crores only for FY ’26, right?
Harendra Singh
Yes, yes.
Vaibhav Shah
For both the packages combined.
Harendra Singh
Yeah, for more the packages, correct.
Vaibhav Shah
And when do we expect to start the project in May-June or after monsoon?
Harendra Singh
No, they will be started post this monsoon only. So by May, we are expecting that by March LOA and then two years, two months down the line, entire mobilization and aparted is being declared. So we believe that actual execution will be picked-up post-monsoon only.
Vaibhav Shah
Okay. Thank you, sir. Those are my questions. I’ll come back-in queue.
Operator
Thank you. The next question is from the line of Jainam Jain from ICICI Securities. Please go ahead.
Jainam Jain
Thank you for the opportunity. Sir, my first question is, after solid execution in H1 FY ’25 with 20% revenue growth, why have we seen a decrease in the revenue Y-o-Y growth number of 12%? Like is there any slowdown in execution?
Harendra Singh
See, there has been some issues with respect to the project Vijar and Delhi DMRC and which are all nearby because of. So that is because of those significant delay has happened. Otherwise, if you have seen that the Ganga contributed around INR500 crores, solar INR350 crores, but in these projects, the revenue doesn’t trickle a lot. As well as in railway, it’s a bit slowdown at the initial phase because of the design as already in the remarks, I explained all those things. But if there is a gap of around just INR100 crores INR150 crores, which would have been done even better. But this is all now sorted in-quarter four, we believe that as initially has projected that we will be touching around INR6,000 crore-plus crores. So around INR2,000 plus crores of execution will be done in-quarter four.
Jainam Jain
Okay, sir. And initially, we have been guided with the order inflow guidance for — with INR11,000 crores to INR12,000 crores of orders and we believe that we are yet to meet the guidance by roughly INR300 to 3,500 watts of crores. Are you confident about meeting the guidance number? Like is there any key project that we are — from which we are expecting the numbers to be made?
Harendra Singh
No, with this new railway station order, which is — this is around INR8,200 and this includes MSRTC order also. And if that is the — if you take it that order, then definitely we can’t have the number which we expected, but no doubt it is 8,200 and what the bid which we have already has bidded and the results are yet awaited and the bid is likely to be there in 45 days from now, say 50 days from now, which we expect that’s around INR2,000 to INR3,000 odd crores of order can be easily be added.
Jainam Jain
So what’s it is — what is your order inflow and revenue and margins guidance for FY ’26?
Harendra Singh
For the next year, we are expecting about INR7,000 odd crores of execution and with order inflow of around INR10,000 crores.
Jainam Jain
And what about margins?
Harendra Singh
Margins almost will be around in 15% to 15% range.
Jainam Jain
So all right. So that answers my question. Thank you so much.
Operator
Thank you. The next question is from the line of Pat Thakkar from JM Financial. Please go-ahead.
Parth Thakkar
Hi, thank you for the opportunity. Sir, will the interest cost in Q4 will be on similar line with quarter three or will it reduce?
Harendra Singh
See, as of the total INR72-odd crore is the total in nine months it has been there. So roughly around say it would be INR20 crores in overall, it will be in around INR90 crore for the year.
Parth Thakkar
INR90 crores for the overall year, right?
Harendra Singh
Yes.
Parth Thakkar
Okay. And also, sir, how much revenue are we targeting from Nil Mangla project for FY ’26 and FY ’27?
Harendra Singh
So FY ’26 would be roughly around INR200 crores. And FY ’27 balance, everything will be completed.
Parth Thakkar
Okay. Thank you. Thank you, sir. Those are my questions.
Operator
Thank you. The next follow-up question is from the line of Shravan Shah from Dolat Capital. Please go-ahead. MR., I would request you to unmute your line and speak, please.
Shravan Shah
Yeah. Sir, how much capex we have done in nine months and for 4th-quarter, how much planning to do and for next year?
Harendra Singh
Yes. So we have done around INR92 crore of the capex during the year and just I think few crores, I think INR5 crore to INR10 crore in the quarter-four. And for the next year, we don’t require foresee any big number to be there. It’s just around INR40 crore to INR50 odd crore would be good enough for the next year.
Shravan Shah
Okay. Okay, okay. And as if sir, you mentioned that the working capital, you are looking at it to come down and accordingly the debt level also will fall to INR600 crore INR700 odd crore. So in terms of the working capital particular because now the solar you said that the disbursement is happening, that will be helping. So even for next year also, as such, one should not be a worrying in terms of the working capital increase in terms of the days.
Harendra Singh
So it’s the only what we had just had discussed about it. It’s only a time gap, which was because of the SPV approval, which took three months, four months delayed. So that is where I think the banks were not having any reservisions. In principal approval was already received sometime back. So it’s only that. For next year, we don’t foresee anything where the cash brunch of that increase in the working capital debt will be there.
Shravan Shah
Okay. And lastly, sir, you also mentioned in your opening remarks that you are looking to monetize further five odd projects. So if you can help us have we started any kind of a talk with the investors and broadly just a sense in terms of the total equity, obviously, how much we have invested in a broader sense, if you can say because the first deal is was at much better valuation price-to-book 1.5 times odd. So how one can look at in terms of the valuation there?
Harendra Singh
As far as total equity, which we have invested in this would be roughly around INR770. So out of Auto 770 we are expecting and the discussion is already we have started of the, say, potential buyers. And I believe that as we are going to get the PCC for all five projects within the month of February only as per the settlement agreement, which we have executed because there have been — in three of the projects, there have been some portion where the PCC 2 is going to be there or COD is going to be a bit three months, four months down the line. So by June, we are expecting that all the projects will be tentatively all project will be done, completed. So within six months of timeline, which we are expecting that if the deal can be done and six months, we then just started taking out the NOC from lenders as well as NHL. So this is quite, I think going on well on-track only. And then again, the valuation, you never know definite, but we are expecting and there also has sounded quite a good valuation for these projects.
Shravan Shah
Okay. But in terms of the cash, most likely it would be by end of March ’26 or maybe it would be in the 1-H of FY ’27 that we will be getting the cash — our equity back
Harendra Singh
No, no, I don’t see much of a challenge that can be done within this year only because if you see February to February, it’s a one-year duration. If we buy PCC to that again the deal and then getting the NOC, everything can be done within the year ’26.
Shravan Shah
Okay. And sir, are we open to bid for BOT toll projects now or are we seeing any pipeline and-or are we liking any project where we would like to be?
Harendra Singh
No, no, not a T yet. Anything related to BOP tool, which already we have — has expressed our views that we would be happy working with any of the developers as EPC as earlier we would be investing that.
Shravan Shah
Okay, okay. And then even for next year also, let’s say if the road let’s say the inflow is not to the extent or let’s say the competition as you are mentioning, the competition is too high in road. So even reach a IN 10,000 odd crore. So if you can help us how much are we looking at from the road and all the water, solar or railway broadly.
Harendra Singh
Railway definitely is not always railway opportunities are EPC only and we all — we have looked into this kind of opportunity with the margins around 11% 12%, 13%. So this we believe that will be our priority. But then roads, if they are going to shrink their ordering — ordering, then we are looking into this water where the HAM opportunities are there, like why I’ve discussed with it right now that extern rail railway, Eastern canal projects or intraver linkages projects in the MP, UP and there where the almost Government of India has indicated around 90% of the funding will be given by central government. So those are the projects on HAM basis. So we would be looking to such opportunities.
Shravan Shah
Okay. Okay. Got it, sir. Thank you and all the best. Thank you.
Operator
Thank you. The next question is from the line of Uttam Kumar from Axis Securities Limited. Please go-ahead.
Uttam Kumar
Yes, sir. Good morning and thanks for the opportunity. Sir, in the opening remarks, you mentioned about transmission project. So what kind of transmission projects you are eyeing on and what kind of order intake you are envisaging in transmission sector?
Harendra Singh
So since we have had entered into the solar and renewable and battery. So we are seeing the similarity, let’s say the solar is the power generation and the power generation than the evacuation where this step-up is being done with the and switchyard and other balance of this all items. So in that scenario, we have seen that the transmission business, where-is there a TBCB side of a business, which again gives a similarity of execution where the certain party is EPC, where the foundation work is to be done. This is civil construction, which is at a INR3 crore INR35 crores percent. And there is a tower fabrication and erection. This is again a very simple kind of a project and this is. So this is a similarity. So what we are looking into how we are exploring this opportunity that going further, if we may opt for this where the — both means the return is should be there. One is the equity return and the second is the EPC margin, not a big margin which we can consider, but 10% to 12% always will be our focus.
Uttam Kumar
Okay. And now, sir, coming to the labor issue, so most of the infra companies they were citing labor issues in last two quarters. So what has been a same is the case with your new company or is it something different?
Harendra Singh
No, that definitely Delhi project struggle because of the labor, because of the crap and then near to the near to Delhi and because of, say, in Bihar, or Bengal where the opportunities are opening up. So not many people are looking at moving out from those states. But that is a crunch, but it’s not that significant where we are struggling a lot. It’s the only thing which we have seen the election has definitely impacted this looks of election. That is very impacted. But now that things are all normalized, it’s not that a big gap in there.
Uttam Kumar
Okay. Okay, that’s all from my side and wish you all best.
Operator
Thank you. The next question is from the line of Deepak from Swan Investments. Please go-ahead.
Deepak Purswani
Yeah. Thank you, sir, for the follow-up opportunity. Sir, just wanted to check it out on the railway project, where we have been declared as a L1. Just looking at the RLD estimated project cost appears to be crore, whereas our bid project cost is INR295 crore. So if you can give the broader sense in terms of how should we look from the profitability point-of-view in this project and what has been the difference between L1 and L2 in this project and why there is so difference in the — their estimated project cost and the cost?
Harendra Singh
Yeah. So if you can just compare that the L1 L2 gap is hardly 2.5%. So that’s not a — and L3 followed by L3 also. So there’s not a big gap. Number-one is because of this project is that kind of a unique combination where the highway constitutes the rights, not highway, it’s a particularly elevated road to be developed. This is around INR800 crores and INR700 crores is just concourse, air concourse, which is a purely fabricated item majorly. And where the other partner is having the proficiency because they are having near to Hyderabad, this very big fabrication unit they have set-up. So this is the two big one and then other is the MEP and HVAC. So it’s a civil part is very less in this project, where the building is already — the construction has been started. So in that scenario, this rates which we have calculated do have the margin visibility of about 12%. There is no doubt on that. So 11% to 12% margins is always there.
Deepak Purswani
Okay. Secondly, sir, on the bid — if you can also throw some light on the bid pipeline on the railway as well as you mentioned about the rever linking. If you can give some more sense in terms of what are the bid opportunities which are coming up over the next 12 or 18 months, how do you see that segment growing for us over a period of time?
Harendra Singh
Sir, railway is over a period of last two, three years where the EPC concept was revealed and now the project DPRs to land to other things, which are shaping up. So in that scenario, we have seen that the significant number are visible, where the — it’s a new line or it can be existing lines where the doubling or three lane or four lane is to be done. So these are the project which we are aiming at. No doubt. This year which they are expecting that one more than INR70,000 crores of project are to be awarded. For this year to next year, I believe there is an opportunity on railway, which we believe this is a big number. But apart from railways, rails, highways are also giving the sense where few of the states are also giving the indication that there are expressways or some project will be there.
Deepak Purswani
Okay. And if you can also give some sense on the river linking project, which we — in terms of the bid pipeline or how should we see from the next 12 to 24 month point-of-view?
Harendra Singh
See in that context, this is one thing is the Eastern. This is the three rivers to be linked in which two states are benefited, one is NP and one is the bigger, say, larger beneficiaries on that where and also in River is going to — the feeder is going to be developed. So there’s around say around INR1,25,000 crores of project where the central government has given us say, go-ahead for giving the 90% of the funding. In also came Beswa in MP. So these are the projects again for MP State where the state like also in UP is going to be benefited. In also, there are many more projects which are likely to be there. So you see this is the opportunity which earlier or five years back it was planned now is shaping up. So I believe the opportunities could and in any scenario for PAM or EPC, we will be looking at these sector.
Deepak Purswani
Okay. And sir, finally, just wanted to check it out on the equity requirement which would be required for these battery project, would that be around INR500 crore or INR600 crore over the next two years?.
Harendra Singh
This is around yes, INR450 plus crore in next two years, correct.
Uttam Kumar
Okay. Thank you. Thanks a lot. Thank you all the best.
Operator
Thank you. Ladies and gentlemen, due to time constraint, that was the last question. I now hand the conference over to Mr Harindra Singh for closing comments.
Harendra Singh
So I extend my gratitude to everyone for contributing their expertise and experience to the discussion. We value our presence on today’s call and trust that we have addressed all your queries. Should you have any additional questions, please feel free-to contact our Investor Relations advisor, Go India Advisor. Thank you and good day.
Operator
On behalf of Go India Advisors, that concludes this conference. Thank you for joining us and you may now disconnect your lines.