HG INFRA ENGINEERING LTD (NSE: HGINFRA) Q4 2025 Earnings Call dated May. 23, 2025
Corporate Participants:
Harendra Singh — Chairman and Managing Director
Analysts:
Saloni Ajmera — Analyst
Shravan Shah — Analyst
Gaurav Uttrani — Analyst
Vaibhav Shah — Analyst
Jainam Jain — Analyst
Veenit Pasad — Analyst
Uttam Kumar — Analyst
Deepak Purswani — Analyst
Sarvesh Gupta — Analyst
Girija Ray — Analyst
Tushar Raghatate — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Q4 and FY ’25 Earnings Conference Call of Infra Engineering Limited hosted by Go India 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 touchdown phone. I now hand the conference over to Ms Saluni Ajmera from Go India Advisors. Thank you, and over to you, ma’am.
Saloni Ajmera — Analyst
Good morning, everybody, and welcome to Infra Engineering Limited Earnings Call to discuss the quarter-four and FY ’25 operational and financial performance hosted by Go India Advisors. We have on the call Mr Harindra Singh, Chairman and Managing Director; and Mr Rajiv Mishra, 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 risks that the company faces. We now request Mr Harindra Singh to take us through the company’s business outlook and performance, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
Harendra Singh — Chairman and Managing Director
Thank you, Saluni. Good morning, everyone, and welcome to the LG Infraengineering earnings call for our quarter-four and FY ’25 results. So 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 FY ’26 and beyond. AG Infra Engineering Limited with seven-plus years of going public has demonstrated in all fronts, maintain a speedy revenue and margin street and with good controls or financials and process thus well-positioned to look beyond the present growth story.
SG has delivered a good performance across all parameters, reaffirming its position as one of the fastest-growing infrastructure construction companies in the country. We made meaningful progress in diversifying our order book, securing high-potential projects across all sectors in highways and railways, also renewable energy, including solar and best. This marks a significant steps forward into new verticals, including transmission and distribution, airports and water infrastructure projects.
Backed by a visionary leadership, we aim to generate approximately 40% of our orders from known road sectors over the next two, three years. This forward-looking strategy not only broadens our growth horizon, but also elevates the GIL to the next-stage of evolution, creating long-term value for all stakeholders and contributing meaningfully to India’s infrastructure transformation. Moving on to some updates on the infrastructure sector, to sustain its high-growth trajectory, India continues to prioritize infrastructure development as a national imperative.
The Union Budget 24/25 reaffirms the government’s commitment to positioning infrastructure as a key driver of economic progress. Strategic measures such as enhancing funding, increased private sector participation, a strong focus on sustainability and adherence to stringent safety and quality standard can pave the path for inclusive and resilient vision of Pixit Bharat. The road sector, though it has been a dull awarding in the last two years, years.
However, the government is steadfast on its vision to transform India’s rural structure, targeting the construction of 10,000 kilometer of national highways in FY ’26, ’25, ’26 to enhance connectivity and reduce logistics cost flagship programs like Bharat Mala and PM are propelled this growth with ambitious plan to develop 50,000 kilometer of excess control ex wave by 2037 under Vision 2047, thus we have a almost a great confidence during the year, railways plan to invest approximately INR16.7 trillion by 2031 in freight corridors, high-speed rail network and station modernization.
Key initiatives include the redevelopment of 1,324 stations out of 508, which already under-construction and expansion of dedicated corridors with robust private sector private participation. The National rail plan outlines the detailed roadmap for future capacity and investment identifying projects worth around INR15 trillion in HSR currently under discussion. Is now positioned well with good experience in running railway projects and prepared to take more projects in this sector.
Renewable energy and best, where the country is having strong focus wherein from 78 gigawatt in FY ’24 — FY to 199 gigawatt in FY ’23, ’24 already done, solar energy has been the prime driver contributing nearly 80% of the new capacity additions during this period. And to meet the 500 gigawatt renewable energy target by 2030, India has accelerated deployment through initiatives such as PM CL as well. Additionally, the government plans to issue 50 gigawatt of renewable energy tenders annually until 27-28 with 90 gigawatt already under-construction and 44 gigawatt in development pipeline.
The National Electricity Plan prepared by the Central Electrical Authority outlines specific energy storage requirements to meet growing demand. As renewable energy penetrates deeper, the role of energy storage becomes critical and ensuring grid stability and enabling round-the-clock clean power. The battery’s energy storage system that is based are emerging to the two key technologies, the best capacity in India is expected to reach 47.23 gigawatt by 2031-32 supported by a suit of financial incentives, regulatory frameworks such as energy, obligations and delierate national defenders.
This forward-looking approach reflects the government’s commitment to sustainable growth, energy security and a resilient powered infrastructure and give us the opportunity to further extend our diversification into transmission and distribution segment as well, thus setting up overall ecosystem of new energy the sector right From generation storage to transmission the government has now has given a lot of interlinking of River and canal under which we are expecting next five years good water and irrigation project like river linking projects in, linked projects in MP and Rajasthan and UP Eastern Rajistan project in Pakistan and MP. So these efforts will align the strong prospects of government under PPP or the EPC model, thus giving us an opportunity to participate in these projects. Urban infrastructure has been a big demand now and there is immense to look-forward in urban infrastructure where demand has penetrated now into two cities as well and has given trust to develop a big metros like Delhi Metropolitan, Mumbai Metropolitan as well as Bangalore. Our journey has been shaped by resilience, and consistent growth. Today, we are well-positioned to tap into new opportunities in renewables, water and power distribution and with strong execution skills, technical know-how and industry experience, we are ready to take on large infrastructure projects that contribute to India’s long-term development plan. Let me begin with a glimpse of our operational highlights for the year. As of FY ’25, the order book stood at INR15,281 crores with roads and highways stands 10,392 crores, railways and metro at INR3,097 crores, smaller at INR819 crores and best INR973 crores. Our order comprises of 36% of HAM projects and 64% of EPC. Segment-wise road and highways contribute 68, railways 20, Road 68 railways 20 and solar and best around 12%. This is an update on the EPC project at Gundga Expressive project, which we have achieved around 90% and continues to progress as planned is expected to be completed in-quarter two FY ’25. The Delhi UER project has been completed successfully and handed over to the authorities and it is anticipated to receive its COD shortly. The Jan elevated project is running smoothly with the progress of 8.2%. The Turkur project is gaining execution momentum after the settlement agreement executed and has reached 34.9% completion. The letter of award for the two MSRDC project is expected in coming quarters. The delay is primarily due to land acquisition with the revised project alignment, which is the prime requirement for issuance of alloy. In HAM project, the Kandal ring load has reached 52.1% completion, marking steady progress and likely to be completed in-quarter three FY ’25. Sorry, FY ’26. Provision completion certificate for Raipur Vishaga Patnam, corridor Package 45 and 46 received in April ’25. These projects are nearing completion. And also Laipur Vishaga Patna project AP1 is heading for completion. All these three projects are on-track for 100% completion by quarter two FY ’25. In the same fashion, PCC has been recommended for AD1 and 2 projects and the progress on these projects stood at 79.9% and 80.8%, respectively and both projects are expected to be completed by quarter two FY ‘225. For the HAM project appointed was declared on 14 December ’24 and is expected to gain execution momentum in coming quarters. The current project stood at 8.4%. The quantities of packages 10 and 13 in Jahargan are expected in-quarter two of FY ’25-’26 where significant development on forest clearance has been done. For 6 of, the agreement is anticipated to be signed with very shortly and the appointed date will be followed in-quarter three or four of this year. For Naro Sarkesh project, financial closure has been achieved and appointed date is expected in-quarter two. This is an update on monetization of four HAM projects where successfully — we have successfully has completed monetization as a first tranche of three SPVs that is Gurman Sona, Rewari Ateli and as well as the second tranche involving bypass was completed on 20th February 2025. All SPV shares has been transferred to Highway Infrastructure Trust, resulting the total proceeds of INR503 crore. For the HAM asset monetization, for which we have initiated discussions with perspective investors for monetizing of six additional HAM projects that includes Raipur Vishaga Patnam Corridor Package 456 and EP1, Package 1 and 2 and the Karnal Ring Road Pack project. And we are sure to conclude the entire process and realize the proceeds by the end of this financial year. Regarding equity requirement on HAM projects, the total equity requirement of the 11 HAM project is INR1,657 crores. As of March 2025, INR915 crores being infused and of the remaining INR359 crores is scheduled in FY ’26, followed by 197 in FY ’27 and 186 in FY ’28. Now turning to the progress of railway projects, the DMRCE is around 72% completed and progressing as per the scheduled timelines. The Himachal Pradesh project is 59.4% complete. Kanpur railway station project is 21.35% complete. The initial issues of land and forest previously related has addressed now in this particular project is now in-full spring. Dul Nardana to trailer project is 8.3%, Sunnagar and projects are at 7.5% and 6.4% completion, respectively. And the slow progress in these two is primarily due to design and trying revisions by the authority encountered on-the-ground of certain variations in COS. However, we expect to progress in the coming quarters as per the stupid timelines only. As far as the solar project is concerned, has strategically capitalized on emerging opportunities in India, expanding renewable energy landscape, particularly within the solar sector during this financial year. The company actively pursued solar power projects under the government scheme an initiative designed to accelerate the adoption of clean-energy solution across country. As a result of its proactive approach, HG Infra successfully secured 183 solar power plants cumulatively contributing an impressive 700 megawatt DC capacity. Amongst these, the company is directly responsible for 167 plants accounting of 38 megawatt DC. This is with an estimated EPC value of INR2,243 crores, excluding GST. To ensure smooth project execution at G has finally finalized the land is lease agreement of all these PPAs successfully signed by Discome. Our progress on these project — all projects remains on-track with approximately 63.8% completion achieved till 31st March 2025. The installation and commissioning process are proceeding as per the schedule, demonstrating the company’s commitment to timely delivery and operational efficiency. In terms of the financial structuring, debt funding for these solar project is progressing well with approximately 70% of the required funding being sanctioned and the remaining approvals and subsequent disbursement are anticipated to be finalized in the first-quarter and subsequently second-quarter of FY ’26. Regarding equity financing, the total equity investment required for the solar project stand at INR721 crores. And as of March 20 March 31 March 2025, the company has infused approximately INR445 crores into these initiatives with the remaining balance to be set to be deployed in FY ’25-’26. This well-planned capital infusion strategy ensures Infra maintains sufficient financial flexibility to meet critical project milestones, reinforcing its long-term commitment to sustainable energy growth and while expanding its footprint in India’s renewable energy sector. As far as best project is concerned, the company has executed binding agreement with and for 435 megawatt that is 870 megawatt are with the scheduled commissioning in by December 2026. The core project cost for these two projects is around INR970 crore-plus and with an equity commitment of INR295 crores. The equity requirement during the current financial year is likely to be INR120 crores, whereas the balance will be incurred in the subsequent financial year. Once all these projects of solar and bests are completed and commissioned, the annual revenue of INR300 crore from solar and INR225 crores from debt would be generated from this project. Let me now give an overview on the other significant updates for quarter-four FY ’25. In-quarter four FY ’25, the company in joint-venture With DEC infrastructure projects Hyderabad secured a significant rail development project from the Rail Development Authority for the redevelopment of New Delhi station. The total project cost stands at INR2,195 crores with the company holding at 49% amounting INR1,76 crores, that is an increase of GST. Additionally, in April ’25, the company has awarded a battery energy storage project from Gujarat, Mulja Vicas Nighet. This is the third project. The project involves setting up of 300 megawatt, that is 600 megawatt-hour in the state of Gujarat. The tariff for the project is hit at 2,85,600 per megawatt with a contract duration of 12 years, the core project cost is expected to be around INR670 crore-plus GST with an estimated commissioning date of by October 27. With this, the total project cost of this project then amounts to INR1,700 crores with a total project capacity of 1,470 megawatt-hours. Moving on to the financial highlights for Q4 FY ’25, as far as standalone financials are concerned, revenue for Q4 FY ’25 reached INR1,973 crores with an EBITDA of INR283 crore and an EBITDA margin at an EBITDA margin of 14.3%. PAT for Q4 FY ’25 stood at INR212 crores with a PAT margin of 10.8% as compared to INR160 crore and the margin of 9.8% in Q4 FY ’25. The value of FY ’25 stood at INR6,56,052 crores compared to INR5,122 crores in FY ’24. EBITDA for the period this year was INR951 crore with a margin of 15.7% for the year, PAT for FY ’25 came in at INR577 crores, maintaining a profit margin of 9.5% versus INR545 crore and a margin of 10.7% in FY ’24. On a standalone basis, our gross debt stands at INR1,068 crores. This comprises INR404 crores in working debt and INR664 crore from term loans and current maturities. The surge in the debt from the last year is due to significant funds deployed for procuring and blocking the solar modules to secure competitive prices and to complete all the project as per the scheduled timeline. The debt will mellow down by quarter two FY ’25 and further cool down by the end of this financial year. Now to the consolidated financials, the revenue for Q4 FY ’25 reached at INR1,361 crores with an EBITDA of INR3239 crore and an EBITDA margin — at an EBITDA margin of 17.6%. PAT for Q4 FY ’25 stood at INR147 crores with a PAT margin of 10.8% as compared to INR190 crore and a margin of 11.1% in Q4 FY ’24. Revenue for FY ’25 stood at INR5,056 crores compared to INR5,379 crore in FY ’24 and EBITDA for the year was INR1,058 crores with a margin of 20.9% and PAT for FY ’25 came in at INR505 crore, maintaining a profit margin of 10% versus INR539 crores for the same — and the same margin in FY ’24. As informed in our quarter two earnings call and the dip in the consol revenue and the PAT numbers in consolidated pertains to the intergroup transactions between HG and SPVs related to solar projects, which are eliminated in our consolidated financials. As a result, revenue and expenses from these projects do not appear in the consolidated pro-year P&L statement, but are recorded in capital work-in progress that assets. At the level, Infer recognizes revenue from EPC work and pays tax on this tech, this income. However, in the consolidated accounts, both revenue and cost from these intercompany transactions are eliminated, reducing the overall figures and margin compared to the start on the financials. The tax expenses for these earnings remain impacting consolidated margin negatively until the SPV generates revenue from unit production. Once revenue starts slowing, this effect will reverse improving consolidated financial performance. On a consolidated basis, the company gross debt stood at INR4,092 crores. This includes INR1,068 crores on a standalone basis and INR2,05 crores project debt led to the HAM and INR959 crore in solar project debt. Let’s explore what’s next turning into be our future strategy and plans. We are targeting an order inflow of INR11,000 crores for FY ’26 with approximately 70% coming from roads and railways and 30% from other sectors. We remain confident in sustaining our EBITDA margin of 15.6%, 15% to 16% and achieving revenue growth of 17% to 18% in next year. Our focus continues to be on operational efficiency, strategic project selection and disciplined capital allocation to preserve margins, minimum debt and enhance shareholder value. While we have deep expertise in-roads and highways, rising competition and shrinking margin in the segment underscore the need to diversify. We are actively exploring high-growth sectors such as airport, and transmission distribution, leveraging our core strength in execution and engineering, this strategic diversification not only supports long-term growth and margin improvement, but also strengthens our position as a future-ready multi-sector leader. So we will now start question also
Questions and Answers:
Operator
Thank you so much sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star N2. Participants are requested to use handset 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
Yeah. Thank you, sir for the opportunity. A couple of questions. Sir, first on the margin front. So though this quarter margin was on the lower side, 14.3% EBITDA margin, but we are saying 15% to 16%. So just to get a confidence that was there any one-off in this quarter? And then now onwards, we would be seeing a 15% to 16% margin.
Harendra Singh
The margin always remains to be in that category only, but because of this some provision and one or two projects where the change in law, this clarity was not there. So that has been looked into as a dip in the margin. But subsequently, we are looking into this claims to the authority and recognizing this margin at a later-stage. But however, we are confident enough that we would be — our margin would be in the range of 15% to 16% in the year as well.
Shravan Shah
Got it. And also on the revenue front, when now as we are saying a 17% to 18%, so close to INR7,100 crore kind of a revenue that we are looking at versus 6,000 in FY ’25. So just trying to get a further sense on that, that the couple of projects where we are still yet to get an appointed date, so roughly around INR7,200 crores is yet to get an appointed date and particularly this MSRDC two projects. So how — if you can help us how much are we looking at revenue from these projects where appointed date is yet to be completed?
And also in terms of — if you can help in terms of the solar or the entire mostly the order book INR800 crores would be completed in this year and how much are we looking at from railways? So just trying to get a sense that how are we confident that this INR7,100 crore revenue we can get.
Harendra Singh
So definitely has a total order which is INR1,500,000 odd crores in which around INR6,000 plus crores of project are yet to receive the appointed date. But as far as solar is concerned, by quarter two, they will all be done INR800 crores. So as far as base is concerned, we are considering not much but INR350 crores of this year execution as we are committed to complete those projects by December ’26. So that will put together around INR1,200 crores from coming from solar and only.
In-hand projects, they are the projects like Pali package AD12, 3D56, AP1 and Kanal. They all would be completed and there are around INR800 crores of this balanced work which is to be done in the year only. In projects like Chennai Sirupati and the Jam, Tumkur as well as — so these are the projects which are going to yield additional INR1,000 plus crores of revenue for the year. And look at the big number is Definitely is going to be completed is INR700 crores, which is balanced, which is to be done within the year only. So we are confident that around INR1,000 crores of revenue coming from railways and then solar and beds and the project which we are talking to we are very fast and near to completion in this project and we have appointed it as recently, it’s being won in and. So they are the big chunk of business has to be done in the year. And talking of the appointed date, where the project where the financial project done and the land is all available. There is one minor correction in forest clearance of being done. In-quarter two, it is likely to be there. 10 and 13. So this is a project where we believe that it has been delayed significantly, but with the forest clearance already now nearing closures, so we are expecting why quarter two, the would be there. And as far as the season starts in later half of the year, we are confident to have a good number. So irrespective of the fact, Nagpur Chandra Gur project may not yield anything in the year, but we are confident that these are the numbers which gives us more than INR7,000 crores.
Shravan Shah
Great. Great to hear that. And then just broadly in terms of — for FY ’27 also given the INR11,000 crore kind of inflow that we are looking at this year, if we get it, are the similar kind of a 15% plus kind of revenue growth should be there in FY ’27 also?
Harendra Singh
Yeah, of course. I think with the orders of Nakur Chandapur converting into the appointed date and other 11,000 more addition. We are confident enough that INR8,000 plus crores can be done in ’27.
Shravan Shah
And on this INR11,000 crore order inflow that particularly we are looking at 70% from road. Sir, for last two years, the hope is there, particularly on the NHA front in terms of the order inflow, but actually it didn’t materialize. So are we now seeing a confident and also if you can help us in terms of the build pipeline and how much value of projects that we have already bidded. So just to get a sense that for are we — are we confident that the INR11,000 crores, so maybe crores INR8,000 crore that we are looking at from road, we would be able to get it.
Harendra Singh
So there is a strong pipeline as far as DPR and projects are concerned, had it be two lane shoulder to four lane where nothing much is to be done only the DPR and likely to be awarded with a slight delay is because of the pre-qualification already rolled-out in EPC and likewise, it is likely to be there in HAM. So there has been some cool — some kind of a cooling period last year. But we believe I think the budget is already in-place and the project — there are many projects in the pipeline as far as NHA ministry is concerned. Apart from this, we are looking into those projects from state like Maharashtra and UP or so, they are also having their pipeline ready. So we are expecting this is not a very difficult number for the year. And again, keeping this open with Adani, we have such that we are going to successfully complete this year. So they are also aggressively looking into few projects on a BOT. So we are looking into this particular prospect as well as for road EPC is concerned.
Shravan Shah
Okay. Okay, got it. Now just a couple of data points on the balance sheet front, sir. If you can help us with the mobilization advanced unbilled revenue, HAM datas and solar details.
Harendra Singh
So as far as Advance is concerned, it is at INR410 crores, but it actually is INR190 crores from the client. So there has been, they are in the debtor part, which is the incremental solar as-is INR585 crores, which is to be net-debt off with INR220 crore because in some of the SPVs, the advance has been paid and some of the SPVs is a debtor balance. So typically, I said INR200 INR20 crore less than what has been there.
So as far as unbilled is concerned, definitely INR1,300 something crores is almost the same as last quarter, but there is likely to be a significant dip in this realization for the year as all the projects which are nearing completion, which we were hoping last year are all these projects will get converted into the revenue as — it is SPVs as well as there is Adani project, which we will be completing. There is some variation item which are being realized now as well as the other projects which we are talking with NHAI old UER as well as DV89.
So all these put together where the unbill is significant is likely to be realized within this year in-quarter two, especially start from quarter two to quarter three and four.
Shravan Shah
First, as on March and solar data,
Operator
Shravan, sir, I would request you to please come back-in the queue for further questions. Thank you. The next question is from the line of Gaurav Utrani from Axis Capital. Please go-ahead.
Gaurav Uttrani
Hi, good morning, sir. Good morning. So thank you for the opportunity. Sir, just wanted to check on margins as we are guiding for or say we are targeting of 40% of the contribution to our books in next two to three years from the non-road highway segments. So how do we look the margins going-forward like would it remain in the range of, 15% 16% or we can see some dilution because the segments we are catering to or we are targeting a bit competitive in nature? And would it sort of dilute our margins going-forward?
Harendra Singh
So as we are expecting that definitely the execution due within next two, three years can come to 60% from roads and other than roads, it’s railway, it can be solar or bes or even transmission or water. So looking into these sector where the margin in historical past has not been reviewed so good, but we are expecting that as we are doing in few of the railway projects, the margin is equally good at about 12%, 13%. So at the EBITDA level, it is around 40%, 15% rather.
So in solar, we did well and the margins are really good. So looking at these opportunity, again, as averaging out with the HAM projects likely in railway roads, which are to be — we are expecting where the competition, which has been so intense last few years is going to be cooled down. So with that, we are expecting 15 plus margin to 16% that is quite manageable.
Gaurav Uttrani
Okay, sir. Got it. And sir, apart on this, the recent notification which came out from the NHIA about land clearance on what they’ve been highlighting that land clearance should be done before tending or putting on that. So how do we think like in terms of inflows going-forward or say for a coming year or so that would it be easier for us to get more of such orders from the NHCI and how do we see the tender pipeline also for the coming year and next two years in that terms? If you can just highlight on a macro-level.
Harendra Singh
Definitely this is a good move as such all concessioners and NHI is concerned because the land should be in-place while first to even start tendering and awarding an appointed date. So — but now as this time is being, say, significant time is being taken in those things for that 25,000 odd kilometers, which as their PCUs are qualifying for four lanes where the land is all available. So they are targeting to see those projects where the DPR is at an advanced-stage can be awarded for the year.
And subsequently, as green project, this Green Expressways or other projects where the land is likely to be as they are looking with a significant up the — this has been done. So with that advancement, we are expecting those projects as well, which we were available in the, say, bidding pipeline last and last year also, likely to be awarded this year.
Gaurav Uttrani
Okay, sir. And sir, lastly on the working capital, we have seen that in FY ’25, there is an increase in working capital. And what sort of working capital do we target for the coming years? If you can just highlight the reason for FY ’25 also and the coming years what we are targeting.
Harendra Singh
So there has been two reasons as far as working capital is concerned. We have gone to for the say short-term loans as far as to see the mobilization advance because the mobilization advances actual is a INR190 crore and we have taken this call to take it from banks. So there is a very short mobilization advance in lieu of advance is. So we are being recovered as where we are progressing into execution of all these projects. So the one thing also, there is a mean-term surge in that particular because of the solar locking the prices of the module as well as inventory, which has now gone very-high around INR550 crores because of the solar inventory only.
So this is going to be consumed within the year. So ultimately from — as well we are completing this EPC, we are getting payments from tentatively INR1,000 crore-odd plus crore from banks only through SPV. So there’s going to be mellow down by quarter two as well as by year-end, it will come down to a very reasonable number.
Gaurav Uttrani
Got it, sir. And just last question I missed.
Operator
I think interrupt, Mr Gaura, I would request you to please come back. Thank you so much. Ladies and gentlemen, in order to ensure that our management is able to address questions from all participant. Please limit your questions to two per participant. The next question is from the line of Shah from JM Financial. Please go ahead.
Vaibhav Shah
Yeah. Thanks for the opportunity. Sir, I missed on the appointed Date part. So for — you mentioned that for Nakpur Chandrapur, both the packaging, we are not expecting any revenue. So earlier we are targeting roughly INR250 crores in FY ’26. So we are not targeting anything for this.
Harendra Singh
Since as of now, the land acquisition where the realignment is being done because of some coal blocks encountered in that alignment old alignment. So they are not getting the NOC from the coal Western coal field. So that is the reason why behind they are changing some alignment. So this is taking some time. So as soon as they are acquiring 70% of the land, they will be issuing the LOA tentatively by this quarter two when the LOA and we are not expecting anything is not being done is say because of the appointed date. So that’s why we have taken out that particular project where the contribution may come or may not.
Vaibhav Shah
Sir, secondly, on Varanasi, you are mentioning that it should be in Q2, the appointed date. So execution can be around 30-odd percent for the year?
Harendra Singh
Yeah, definitely, because with the mobilization already done, we have already stacked with the big amount of aggregate and everything has been done. So we are very suitably poised as soon as this appointed date by this quarter two in August and September, we are expecting because the forest clearance is now at a very adverse pace of 70% to 80% land clear. So with that, we are expecting that all execution will be where the mobilization done as well as the project which we are completing very nearby. Therefore will be done taken-up and we are expecting more than INR700 crores of revenue coming up from these project only
Vaibhav Shah
And sir, for what will be the appoint date target?
Harendra Singh
Which one?
Vaibhav Shah
Bahu won the UP model?
Harendra Singh
UP mode likely by year year-end because very recently, whether this is in two, three days, we are going to sign the concession agreement. So five months from now, we can expect by this October, November where the financial chlor and other things can done. So in-quarter four, we can expect the appointed date.
Vaibhav Shah
Okay. And sir, secondly, in terms of overall opportunity, so in terms of highways, are we looking for biddings for BOT projects in FY ’26
Harendra Singh
Or BOT we are not interested as of now?
Vaibhav Shah
Okay. And sir, lastly, we had mentioned that there is some INR5 crore impairment in the quarter. What was it pertaining to?
Harendra Singh
Provision.
Vaibhav Shah
Yeah, INR5 crore impairment we have done regarding to other assets and you were mentioning the notes to account. So what is this regarding to?
Harendra Singh
I think I’m not getting your question.
Vaibhav Shah
In the results in Q4, there is a INR5 crore impairment that we have taken.
Harendra Singh
It’s not. No, it’s not. I think you — there is some misunderstanding. It’s not there anything. So, which you can come back. You can come back at a later-stage to our team. Anything which you want to try later or whatever the doubts we have, we’ll sort it out separately.
Vaibhav Shah
Okay. Okay, sure. Okay. Thank you, sir.
Operator
Thank you. The next question is from the line of Jain from ICICI Securities. Please go ahead.
Jainam Jain
Good morning, management. Sir, my first question is, we had guided for INR11,000 crores INR12,000 crores worth of project in this in FY ’25 and we have receivable INR9,000 crores more projects. So can you highlight something on that part
Harendra Singh
So initial estimation was supposed to be INR10,000 crores and we added around INR8,500 crore is it?
Jainam Jain
So you had guided for INR11,000 crore to INR12,000 crores.
Harendra Singh
Yes. So we projected at around INR10,000 crores of order addition initially and we completed at around, say, INR8,500 crores because that is the whole year. There is a loss of listing is INR1,500 odd crores which because of this highway order say not many of the orders or much of the addition has been done.
Jainam Jain
Okay. And this year we are targeting INR11,000 crores, right?
Harendra Singh
Right, right. Yes.
Jainam Jain
Yeah. And sir, are we seeing any further big opportunities in radiation redevelopment side?
Harendra Singh
So we are expecting that we have already has taken two projects. One is in Kanpur as while doing those projects, we understood that the initial phase definitely is being brownfield, some permission, some kind of a duty chartered utility shifting took place time to. But thereabon, it’s quite a good reasonably good margin. So that’s why in New Delhi, we have participated along with the partner. So look into these opportunities, going further, definitely whatever project comes in.
Jainam Jain
Okay. Are there any major projects which were — which are yet to get rid of major stations. I mean the Mumbai is done is done and major — a lot of major stations are done.
Harendra Singh
So also balance and there are many other projects where the small and big, not too big as well, but they are on-balance which are yet to be awarded.
Jainam Jain
Okay, sir. And sir, we are seeing an increase — increasing up.
Operator
MR., sir, I would request you to come back-in the queue.
Jainam Jain
All right. Okay.
Operator
Thank you. The next question is from the line of Vineet from Investec. Please go ahead.
Veenit Pasad
Hi, good morning, sir. Thank you for taking my question. Sir, couple of questions. One is on the solar side. What kind of margins can be expected in a typical solar EPC job? And what is the value-add or what is the right to win for us in this category?
Harendra Singh
Yeah. So as we have experienced, definitely these are the all current projects, but that too we could manage very effectively with our good strong execution capacity. So looking beyond this, we are looking into solar, whereas around-the-clock or the solar beds of this hybrid as well as solar wind hybrid can be — we are looking to such opportunities where the — we are bidding those projects. And looking further with this transmission also, we are looking that way to see any good opportunity coming from transmission distribution. So a toll whole infrastructure or ecosystem of new energy.
Veenit Pasad
Sir, I wanted to understand more on what is the right to win here? What is the execution which we do? What is the proportion of bought-out components and how does cost escalation pass-throughs work or are these more like a fixed-price contracts? And in a typical scenario, going-forward other than the solar projects which we are executing, what kind of EPC margins are doable? Is it around 10%, 11% or 12%, 13%? What type of margins can we do here?
Harendra Singh
So what the — what we have, sir, understood as far as all battery three projects, it’s around 12% to 12.5%. So that is at EPC level. And the bottout items in that also it is around, say, 65% to 70% even more in battery. But then again, if you’re talking of solar, it’s around 70% of the bottout items and rest is on land and other areas which are civil works. So keeping a margin of about 12% is the range which we would be looking for future bids and this is a fixed-price contract. There is no price escalation which is to be paid until there is a change in law parameter which is affecting your project.
Veenit Pasad
Understood. So sir, in that case, given our reliance of beneath,
Operator
I would request you to come back-in the queue. The next question is from the line of Utam Kumar from Axis Securities. Please go-ahead.
Uttam Kumar
Yes, sir. Very good morning and thanks for the opportunity. Sir, I missed the number on our equity investment in solar as well as battery storage currently. How much we have done and how much we will do in FY ’26, ’27?
Harendra Singh
So in ’26, it’s around INR750 crore out of this around to HAM and 391 is the solar and battery. And subsequently, ’27, it is around INR797 odd crore in HAM and 460 in battery because solar will be all done.
Uttam Kumar
Okay. So all-in all, in totality, how much will be resist in next two years in HAM and solar and battery storage?
Harendra Singh
So as of now, which project you have taken is INR1,360 crore is yet to be infused.
Uttam Kumar
Okay. And sir, this quarter, our finance cost has increased quite substantially. So can we expect it to normalize going-forward?
Harendra Singh
Yeah, definitely. As I already had expressed where it has gone high and why it is going to be no very fast.
Uttam Kumar
Okay. And sir, what would be our capex guidance in FY ’26 basically?
Harendra Singh
Capex is not much of the capex is required because we do have every capex ready where these projects which we are talking that we are out of eight projects, mega projects where all completion being done within this year till quarter two. So any, say, project equivalent to INR6,000 crores INR8,000 crores where we want to mobilize railway or even highway as adequate capex is available. So hardly it can be just INR20 crores for any key critical equipments if required.
Uttam Kumar
Okay. I wish you all best. Thank you.
Operator
The next question is from the line of Deepak from Swan Investments. Please go-ahead.
Deepak Purswani
Yeah. Hi, good morning, sir, and congratulations for a good set of numbers. Sir, firstly , wanted to check it out, in this year, I mean in the revenues of INR6,050, what would be the broader breakup in terms of the solar railway and road project?
Harendra Singh
So be fair, EPC, there’s Ganga Expressway as well as the major contributor at our of INR44 crores and hand INR1,586 crore, solar do contributed INR1,430 crore. So these are the major ones with Railway 445 and other EPC to buy it.
Deepak Purswani
Okay. Okay. And sir, I mean, this year also the investment in the subsidiaries has increased from INR628 crores to INR1,368 crores. I mean overall investment on the balance sheet side. So this is primarily into the solar project, which we have invested or how should we look into it?
Harendra Singh
And as we are discussing from last quarter two to now. So this is because the typical measure of the project where the commissioning is the a period of six months maximum. So within that duration, we need to comp in pulse from everywhere, wherever possible. So that is because of that reason only.
Deepak Purswani
Okay. And sir, finally, just wanted to check it out in terms of the pipeline opportunity on the solar and water and river linking side, if you can throw some light, how should we look into these opportunity going ahead?
Harendra Singh
Yes, the central government is now checking upon the opportunities into strival linkages, which is Kituva as well as the Eastern Canal, which is INR80,000 odd crores as well as in Bhadra, in Rajasthan and so there are many more projects where the central government is interested in their — they look like they will be approving and they are going ahead with this opportunity. So these projects where unlike not JJM, they are different kind of a project.
Also in water projects and also we have seen in one of the HAM projects where bids are invited with the 10 years of HAM projects. So those are the projects which we look-forward where we do have some say qualification restrictions, but we are looking at the joint-venture partner to look further. As well as in solar, we are only looking into those beds where the margins are intact around this one. We don’t — we don’t want to go very aggressive into any solar or.
Deepak Purswani
Okay. And sir, just finally on the interest cost,
Operator
I would request you to please come back-in the queue for further questions. The next question is from the line of Sarvesh Gupta from Maximum Capital. Please go ahead.
Sarvesh Gupta
Good morning, sir. Sir, first question is on the order inflows. So I think even in the quarter three con-call, are you able to hear me?
Harendra Singh
Yeah.
Sarvesh Gupta
Yeah. Sir, even in the quarter three con-call, which was in February, we had guided for INR11,000 to INR12,000 crore of order inflow for FY ’25. Now so we are short by almost 20%. So now this quarter — this year, again, we are guiding for INR11,000 crore. So what has changed in the ground, which gives you the confidence that this time we will be able to meet the order inflow guidance?
Harendra Singh
So as in last year also, there has been a major dip in the highway only because there is a few kilometers being awarded in at ministry level or NHI. So this is now grown for the year because as I — we were discussing about because of the pre-qualification and certain land DPR and sanctions were not in-place. We will look to that this year definitely the budget is in-place and we are looking into the same opportunities, same around say INR7,000 crores INR8,000 crores of project from Highway to contribute into INR11,000
Sarvesh Gupta
And secondly on the HAM monetization. So the first four projects, full money is already accounted for in the 4th quarter result is that right?
Harendra Singh
Yeah, definitely it has been done.
Sarvesh Gupta
And the six additional HAM projects, sir, which are supposed to be monetized, I’m guessing we are having around INR750 crores invested in that. So that money should come back-in this year with some accretion.
Harendra Singh
So the total equity — the total equity into these six projects is equivalent to INR900 crore-plus and the debt probably is around — as of now, it is around INR2,100 crores into these six. So we are looking into this monetization as we are completing PCC of four projects already we have received. So with that, within six months, we can do that entire transaction by the year possibly we would be looking that this entire money can be taken back.
Sarvesh Gupta
And sir, we mentioned that we want to be like a future-ready multi-sector construction company. Now one doubt on that strategy that I have is that if I look at all these multi-sector construction companies which are listed currently, none of them are able to even reach 10% sort of a margin. So what gives us the confidence and we have been a company sir, where 16% margins were the norm. So if we go down that path, will we be able to protect the kind of margins that we had or we will also slide down to barely double-digit sort of EBITDA margin company?
Harendra Singh
For sure, I think what you are talking, we have seen all maximum companies with multi-sector. Multi-sector is not that we — prime focus would definitely be this highways only. We are seeing that there is a big amount of work which is to be done in the highway. It’s not that case, the highway isn’t all done.
So it’s only last two years, which we have seen because of the last three, four years because of the price — this cost competition and accretion as well as this slowdown because of this project awarding. But then again, there are strong pipeline in this particular. So roads always will become — will be our prime product. Apart from that, yes, definitely, if we are not looking into this just railway, just metro as urban infra, we already had done UER Delhi, UR project where the urban is involved.
Metro we have done — our Guru sola we have done. So if they are the which we are doing, Jam, we are doing this is a nine kilometer. So with this gives us the opportunity into urban infra also with — without compromising the margin, we are not confident that 100% it is possible to make 16%, but within the range of 15% to 16% over a period of two, three years is it is quite positive.
Sarvesh Gupta
Okay, sir. Thank you and all the best.
Operator
Thank you. The next question is from the line of Ray from YES Securities. Please go ahead.
Girija Ray
Hi, good morning, sir. Thanks for taking my questions. So just to sense some kind of historical number. I’ll not take much time. So just can you help me out with the number — the four HAM projects we have monetized? What was the total equity investment we have done for those four HAM projects? And secondly, yeah, what is the. What is the value of the total crores?
Harendra Singh
Just one-by-one, I think it cost INR373 crores, which we say added as equity — include equity in 4 HAM, out of which INR503 crore is already realized and there’s around INR20 odd crore, which is likely to come within this year. Okay. Around 1.5 times,.
Girija Ray
And that price-to-book is 1.55, right?
Harendra Singh
Correct.
Girija Ray
Yeah. One more question that is bypass package four. So I think we have got a good valuation on the project the price-to-book value is quite higher as compared to other three of our hand projects. Am I correct?
Harendra Singh
Yeah.
Girija Ray
So what makes that valuation little higher and we got a good valuation in that if we compare.
Harendra Singh
It all depends upon the — it all depends upon the project complexity. So wherein it is a price indexing being done because of the WPA and CPI index. So it’s one thing as well as the cost of O&M, which we value or other partner value who is taking over the project. So these are — as we are discussing in these five projects also, they are the dynamic parameters, which one project can yield very good even two times and one project can only be 1.1 to 1.2. So averaging this is the number which we are looking at.
Girija Ray
Okay. And sorry to take it further. This will be my last question. So around INR30 crore to INR40 crores of differential amount, I can see if I do a calculation based on 1.55 times book — price-to-book value. I’m — sorry,
Harendra Singh
This is INR30 crore. This is around INR30 croree, which is balanced.
Girija Ray
Okay. Okay. Okay. Thank you very much, sir.
Harendra Singh
Thank you very much.
Operator
Thank you. The next question is a follow-up question. It’s from the line of Janam Jain from ICICI Securities. Please go ahead.
Jainam Jain
Thank you for the opportunity again. Sir, are we L1 in any of the projects which we haven’t included in and group?
Harendra Singh
Sorry.
Jainam Jain
Are we L1 in any of the projects, which we haven’t included in the current order book of INR153 billion?
Harendra Singh
No, no. Only the project which we say got in April ’25, that is a battery project is not added here. That’s around INR700 crores. That is not added here.
Jainam Jain
Okay, sir. And sir, I didn’t give the number of order pipeline which we have for FY ’26 and the amount of bids we have we have already submitted for.
Harendra Singh
So already around INR16,000 odd crores of bids already done that is across various sectors, majorly highway and railway. And so we are expecting to be this bids and bid pipeline, no doubt as far as NHA is concerned is the INR80,000 crore NHA and more. And in other I think it’s all rolling kind of a thing. You are not having 100% accurate data.
Jainam Jain
Okay, sir. That answers my question. Thank you so much.
Operator
Thank you. The next question is from the line of Tushar from Wealth Management. Please go ahead.
Tushar Raghatate
Good afternoon, sir. Thank you for the opportunity. I just wanted to know like the guidance which you gave in start, like you’re targeting for INR7,000 crore for FY ’27, right, if I’m not mistaken, with the margin of 15% 16% and then keep that growth momentum going-forward. Is my understanding correct despite sir, Chandrapur Nakpur project not 55
Harendra Singh
Yeah, definitely as we have commented on the numbers, the figures are quite and we are quite confident that we will be doing more than 7,000 for the year ’26.
Tushar Raghatate
Fair enough, sir. And sir, in the transmission and distribution and water management, what sort of margins are you seeing in that? And why it has not contributed to our order book as of — as of now?
Harendra Singh
No, because we have all — has just explained about it is because of the solar projects, where the capex being done. So there is a INR1,300 crores plus capex done in these projects, where the top-line and bottom-line is being eliminated from the standalone number. So the console number is giving a different picture, just around INR300 crore INR200 odd crore of PAT negative if you see that number. So ultimately, whenever we start producing the generation, so in this year, we are going to — we already have started, generation has already started. So within that is going to be corrected in the coming quarters with the consol number will be corrected.
Tushar Raghatate
Okay. Sir, sir, this is a bit different question. Sir, do you see any opportunity in airport or runway EPC going-forward?
Harendra Singh
Yeah. EPC definitely there are many efforts where the EPC beds are invited like Sea, quota already in the pipeline.
Tushar Raghatate
So do you see that certifying in terms of your order book going-forward?
Harendra Singh
Sorry.
Tushar Raghatate
Do you see airport runway EPC, you know in terms of your order book? Do you see that addition going-forward?
Harendra Singh
We are qualified and we are participating in these.
Tushar Raghatate
Fair enough, sir. That was helpful. Thank you.
Operator
The next question is from the line of Ishant Bhat from Ishant Investments. Please go ahead.
Unidentified Participant
Hi, sir. Congratulations on the result. I would like to inquiry about how the company is concentrating on the Southan region, particularly the development of capital of Andhra, how closely you are monitoring progress of tendering projects either individually or joint-ventures?
Harendra Singh
So we have not yet initiated anything in the development as of now because it’s not that we are not interested, but definitely as the time comes, we may look into any bill.
Unidentified Participant
Okay. Thank you.
Operator
The next question is from the line of, an individual investor. Please go-ahead.
Unidentified Participant
Yeah, hi, sir. I have a few questions, sir. First is that we have entered the statement around one, two years ago, but we haven’t seen any major order wins or if means any order wins from this segment there? And other thing is one of your competitors stated that growth project ordering has slowed down due to change — means the government is looking to change the bidding norms due to increased participation from low-cost contractors and it’s been concerned because of past issues of execution delays. And the third portion is, this intercompany adjustment has been — has been a volatility on the financials and frankly, it’s somehow impacting the share prices. So how do you see this panning out there?
Harendra Singh
So your last question can be very well questioned. It’s only a time gap that definitely the margins which we are reporting at the standard level, they are the right margins and any elimination which is being done now in the company between SPV and APC is going to be seen — being corrected in subsequent years. So the margins are like definitely would be coming back into the concern only. The second thing is water sector as we have done and we have tried because in the recent past, we have seen in JGL, there has been lot many budget issues, lot of budget issues, the payment being struck.
So we dropped the proposal at that point of a time, though very ready with the beds. But now this water link interlinking linking projects and where-is the water resource department, not a drinking project. So there we look like it is a big infrastructure capex to be done. So these are the ones. I think the third is what we were looking at the pre-qualification where the crowded space of roads, they have taken this water project. It’s not that the pre-qualification is very simple that anyone who has done this water sector projects will only be qualified and the JV is allowed, we are looking to the JV partnership.
Unidentified Participant
Okay. Okay. So I mean, say, can we see this intercompany adjustment payments not impacting the this financial from this financial year.
Harendra Singh
Definitely not because it’s a quarter-on-quarter if you compare any numbers the last quarter, the solar contribution was not there. So we have seen a big number impacting quarter-four and entire year as well. So this is not going to be there.
Unidentified Participant
Okay. Okay. Thank you so much, sir.
Operator
Thank you. Ladies and gentlemen, this was the last question for today’s conference call. I now hand the conference over to the management for closing comments.
Harendra Singh
So thank you for joining us today. We have a strong year marked by a solid financial performance, a growing order book and a committed team. We remain confident for us in our continued success and here to address any further questions. Please feel free-to reach-out to us or our IR Advisor, Go India Advisor. Thank you.
Operator
Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you