Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Kalpataru Projects International Limited (NSE: KPIL) Q4 2026 Earnings Call dated May. 15, 2026
Corporate Participants:
Manish Monot — Managing Director and Chief Executive Officer
Analysts:
Kishan Mandra — Analyst
Sumit Kishore — Analyst
Ashish Shah — Analyst
Amit Anwani — Analyst
Parikshit Kandpal — Analyst
Vaibhav Shah — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen. Good day and welcome to Kalpatru Projects International Limited Q4FY26 earnings conference call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the lesson 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 touch tone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Kishan Mandra from Dam Capital. Thank you. And over to you, sir.
Kishan Mandra — Analyst
Hi. Thanks, Ikra. Good morning everyone. And thanks for joining in early in the day and warm welcome to the Q4FY26 earnings call of Kalpatru Projects International Limited. We have the management which is is represented by Mr. Manish Monot who is the Managing Director and CEO. Mr. S.K. Tripathi who is the Deputy Managing Director. Mr. Sanjay Dalmia, the Executive Director Mr. Amit, who’s the Director, Group Strategy and Mr. Ram Patodia, President Finance and the CFO. Now at this point I’ll hand over the floor to Mr.
Mohan for his initial remarks post. Which will open the floor up for question and answer. With that, thank you. And over to you sir.
Manish Monot — Managing Director and Chief Executive Officer
Thank you Kishan for setting up the call for us. Good morning everyone and thank you for joining us today. Let me begin with the performance for fourth quarter and full year FY26 and what it represents for Kalpadur Projects International Limited. We previously established clear targets for FY26. Starting with revenue growth of 20 to 25%. Improving consoled PBT margins of 100 basis points. A net working capital cycle under 100 days and order inflows of 26,000 to 28,000 crores. We also committed to finalizing the Vindhyachal transaction and the indoor real estate project.
Today. I am proud to report that we have fully delivered on each of these promises. In FY26, our console revenue grew by 22% YoY to reach 27,143 crores. While standalone revenue reported a growth of 23% YoYo. I am particularly encouraged by the high quality of this growth which was well diversified across our business portfolio in both domestic and international markets. Except for the water business, all business units reported robust growth driven by strong execution from a profitability standpoint, our console PBT before exceptional items rose sharply by 62% YoY to Rupees 1334 crores for FY26.
Consequently, the consoled PPT margin expanded by 120 basis points to 4.9% exceeding our guidance range of 4.5 to 4.75%. Additionally, our standalone PPT margin excluding excessional Items and a one off dividend income from VEPL reached 5.9% in FY26 which is also ahead of our annual guidance of 5.5%. This step up in PVT margins reflects a strategic business mix, strict operating discipline and accelerating operating leverage as we gain size and scale. I’m delighted to report that our console PAT surged 82% YoY crossing the thousand crore threshold to hit 1031 crores.
This profitability translated into a 71% jump in console EPS to rupees 61 per share while standalone EPS expanded 24% to rupees 49 per share. Our balance sheet highlights excellent financial health anchored by a strong cash position, sharp debt reduction and disciplined working capital management. At the console level we reduced net debt by over 50% to rupees 915 crores, optimized our working capital cycle to 75 days and reduced finance cost to sales by 80 basis points to just 1.8%. Our consolidated standalone net debt to equity is at a multi year historic low of 0.1x.
This operational efficiency fueled a massive 68% jump in operating cash flow reaching Rupees 15. 35 crores and roast improving to exceed 21%. Similarly, we delivered robust performance at the standalone level when net Debt fell by 32% YoY to 749 crores. With working capital improving to 90 days and finance cost to sales coming down 40bps to 1.6%. We managed to achieve this optimal leverage levels and cash position despite collection delays within the water business. What makes this balance sheet performance truly remarkable is that we delivered it while continuing to invest nearly 900 crores in capex and pursued a strong top line growth of 22% in FY26.
This underscores our core commitment to discipline growth and strict capital management. Moving on to the ordering momentum, robust tender activity in the tnd, BNF and Urban Star verticals drive our Though our order bench passed the 26,000 crore mark in FY26, what stands out is that nearly half of these bookings came from large ticket orders exceeding thousand crore plus. This clearly highlights a strategic shift towards high value large scale projects in our top performing business lines. This strong momentum pushed our total order book to an all time high of rupees 65,457 crores at the end of FY26 offering excellent diversity across businesses, clients and markets.
Furthermore, our growth pipeline remains robust across TND B and F oil and gas and agrinshaw business. Since the closing of the fiscal year we picked up new orders worth rupees 1833 crores and additionally we have placed L1 project worth 3200 crores. Moving on to business level performance, our TND business continues to capitalize on a multi ticket super global capex cycle. Our order inflows reached closer to 13,000 crores in FY26 with India accounting for nearly 35% of inflows and the remaining 65% spanned across Nordics, South America, Africa and the Middle East.
We have successfully wrapped up all ongoing projects in Brazil and took a full provision for our exposure in Brazilian subsidiaries in Q4. We closed this year with a strong TND order book of rupees 28,572 crores. For the full year the TND business reported revenue growth of 25% YoY. We expect the TND business to remain on robust growth trajectory in FY27 and beyond backed by Healthy Tender pipeline in India, Middle East, South America and Nordics. Moving on to our buildings and factories business, the business delivered a strong 19% top line growth in FY26.
Our order inflows in BNDF business surged by roughly 40% to reach rupees 11,460 crores closing the year with order book of 18,295 crores. Our key highlights include measurements in the residential space, particularly through high value orders across south and NCR regions. What is highly encouraging is that nearly half of our B and F project portfolio has shifted towards design build projects. Looking ahead to FY26, we expect this business to deliver continued robust growth as we optimize our portfolio mix.
The ordering pipeline remains vibrant, anchored by residential real estate and fortified by emerging opportunities in data centers, airports and industrial plants. Turning to our oil and gas vertical, the business continues to perform exceptionally well looking in on a phenomenal 55% y o y revenue growth for FY26 on the ground execution across our Saudi projects remains steady and resilient. Despite ongoing Middle east headwinds, the pipeline ahead looks very promising. We expect tendering activity to accelerate sharply in FY27 led by large scale high value oil and gas infrastructure bids primarily in The Middle east market.
This business is rapidly scaling and is positioned to be a major engine of our growth moving forward. In our water business we achieved a revenue of rupees 2,112 crores as we maintained our focus on the execution and completion of Jal Jeevan mission projects. Our Q4 delivered strong results in terms of collection and we expect this positive receivable strength to continue going forward. In line with a strategic roadmap to expand our global footprint, we are favorably placed in our initial foray into the high potential overseas market in the water business.
Our urban infra business recorded revenue growth of 49% YoY in FY26 led by execution of Metro rail projects.
Sumit Kishore — Analyst
During
Manish Monot — Managing Director and Chief Executive Officer
The year we secured orders worth rupees 2000 crores, further improving our presence in elevated underground Metro rail projects. We continue to strengthen our organization capabilities in line with good visibility infrastructure sectors like elevated and underground Metro rail, tunneling works, elevated roads, etc. We maintain a cautious and selective bidding strategy in our railway business. Our railway business reported a growth of 9% y OI beyond the numbers, I want to step back and talk briefly about what has structurally changed at KPIL over the past three years and how it is strengthening the quality, resilience and sustainability of our business.
First, we have sharpened our competitive position across EPC contracts, today’s market demand partners who deliver speed and cost efficiency without compromising quality. We are rapidly becoming the partner of choice, uniquely capable of executing complex projects at scale. This is driven by a rigorous project management framework that ensures productivity and predictability. The proof is in our order book. A significant share of our recent wins come from repeat business with major customers. Second, strategic capex has become our core execution enabler.
We invested nearly 3,000 crores over the past five years to upgrade our asset base. This infrastructure compresses cycle times, elevates quality and allows us to secure massive multi geography contracts with high confidence. This CAPEX click strategy establishes KPI as a long term strategic partner and accelerates our upcoming project pipeline. Third, we are aggressively scaling our internal capabilities. Over the last few years we expanded our specialized design, engineering and project execution teams.
This intellectual capital is a strategic wedge. It creates a distinct competitive advantage embedding us in high barrier large scale projects where few can compete. This capability drives both scale and global expansion. By executing complex multi geography EPC mandates, we validate our credentials with the world’s most demanding customers. Our recent breakthroughs in international oil and gas, airports, underground metros and utility scale solar combined with major design B and F Wins provide clear evidence of an organization built for the future.
Collectively, this strategic enablers enhance our geographic reach and customer diversification. Improving revenue visibility and support a more resilient growth trajectory. To conclude, a constructive demand environment and excellent visibility reinforce our confidence for FY27. We expect full year order wins to exceed 30,000 crores in FY27. Further, we are guiding for around 15% plus top line growth coupled with robust profitability. This bottom line performance will be driven by a 75 basis point expansion in our console Pvt margins.
Above all, our core focus remains unchanged. We’ll back this growth with unwavering operational rigor and capital discipline. Our biggest challenges continue to be managing the issues coming from the geopolitical scenarios, ensuring minimal disruption in labor availability and managing cost structure in the current environment. With that, we can open the call for Q and A. 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 the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use hand search 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 Ashish Shah from HDFC Mutual Fund. Please go ahead.
Ashish Shah
Yeah. Thank you for the opportunity sir. Congrats on a wonderful performance. My first question is on how does the bid pipeline look today? You did just say that you’re looking at 30,000 crore of inflow. But if you could just give us more color in terms of what is the bid pipeline, which segments are expected to drive this inflow and particularly you mentioned about large prospects in oil and gas. A little more color on that will help. Thank you.
Manish Monot
Sure. So Ashish, as I mentioned earlier, we continue to stay bullish on 34 businesses in the current year. TND continues to be as healthy as it was in the previous year with more than 1 lakh crores of bidding happenings in the domestic sector, domestic TND and similar amount if not higher in the international business. All the in the next six to nine months. On the B and F side we continue to stay bullish on residential and commercial and some geographies. A lot of airport projects coming up, industrial projects where we are now qualified for large scale projects as well as data centers.
We are currently working on a few of them already. On the oil and gas front we are seeing lot of traction coming from Middle east whether it is Saudi, whether it is Abu Dhabi, whether it is Qatar, yes, it might take some time for this traction to get converted to bids and to orders, but at least the traction is already visible while we speak. So that’s also an area which we believe waiting into Q3 Q4 could be very, very healthy in terms of order book. Even on the urban infrastructure side. Now we are seeing a lot of tenders coming whether it’s for underground metro or elevated metro both on domestic and international.
So on all the four businesses I think we continue to stay positive. Oil and gas might move at a much faster speed in Q3, Q4, whereas TND, B and F as well as urban infra would start right from now. We will stay cautious in the water business in the domestic front. But on the international front that business also shows some good visibility and we’re already placed L1 in a small order while we speak. As mentioned earlier, on the railway business we continue to be very watchful and I’m not very bullish in terms of prospects of growth there.
But at least four businesses out of A six we’re very, very positive and that will help us target 30,000 plus crores of order inflow in the next year. In the current year. I know,
Ashish Shah
Sure, sure sir, I know it’s a little too early, but if you can just split this 30,000 crore into what would you look forward to in terms of let’s say tnd, BNF and oil and gas and maybe urban infra. Any broad thought we have on how does this inflow look?
Manish Monot
So my own view, and as you rightly said, it’s too early, is at least 1/3, 1/3 of this would be TND and B and F minimum. Right. And the balance 1/3 would be taken by projects which comes from either oil and gas or urban infra or even water international. But still, at least in the next from a six month perspective, it’s TND and BNF which are going to drive significant growth. In order book today, when you look at it including L1, we have visibility of around 5000 crores. We declared 1800 crores yesterday plus we L1 in around 3000.
This entire 5000 crores only in TND and BNF. So the first six months significant inflow coming from TND and BNF. The last six months you’ll see significant inflows coming from oil and gas and Alban infra.
Ashish Shah
Right. So second question is on whether there are any margin pressures at this point of time. Obviously there’s been a huge surge in the commodity prices. So how does the situation look for us and what kind of mitigation measures we have including any pass throughs etc. In our contracts.
Manish Monot
Sure Ashish. Our order book today is 50% fixed and 50% variable. So nearly 50% it could be 49, 51 in that range. From a margin perspective if you look at specific commodities on aluminium, zinc, copper, we are 90% plus hedge on our export exposures. So we do not see significant impact coming on that at least on the current order book on at least things like aluminium, zinc and copper. Steel we have seen some expansion in prices come through in February, March, but they’ve again stabilized in April May.
We have not seen much happening in April May. So to that extent steel whatever increases come in, we have budgeted that. We’ve also budgeted slightly more coming into Q2 Q3 and that’s already in build when we have given 75 basis points, guidance and margins. One of our biggest challenges could be the diesel cost for which also we have budgeted huge amount or significant amount in our current P and L. But that’s something we will wait and watch because that’s something which number could be x, could be 2x and we would come back to the streets hopefully Q1, Q2, would it have a very big dent in the margins?
Maybe not because diesel as a percentage of the overall revenue would be minimal. But that’s the cost we need to get be watching for. But otherwise on commodities we are nearly hedged. Even on FX we are hedged at more than 80% of our exposure. So even FX we are at 85% actually of our exposure. So I do not see volatility hitting us in a big way. Except maybe diesel and petrol prices and except and some supply chain disruptions if they happen in the Middle east area.
Ashish Shah
Sure sir. Last quick one from me, sir. The TND business revenue was just about 1% of YY for the year it was 25, but for the quarter it just seems 1%. So what could be the reason for this?
Manish Monot
I think the primary reason was that disruptions in March which happened in Middle east which picked up again in April in some form. So a lot of material which was ready we were not able to supply because of the supply chain disruption and those 1520 days of problems. So primarily the reason for TND to be low is driven by two aspects. One, our parcel business reduced closer to zero which was at a reasonable number previous year year Q4 and second at international March impact because of the geopolitical scenario
Ashish Shah
And as we speak some of the disruption continues. That’s what that’s what you’re saying
Manish Monot
As we speak while work continues at the site on all projects, work has not stopped on majority of our projects, but supply chain disruption still continue.
Ashish Shah
All right, thank you.
Operator
Thank you. Next question is from the line of Amit Anwani from PL Capital. Please go ahead.
Amit Anwani
All right, so thanks for taking my question. The first question, as I can see, the order inflow guidance which I have given and wanted to understand especially for the CND and since we are expecting very robust performance, I think the order inflow which I can see for full year was roughly about 13,000 and last year it was about 14,400. So definitely there’s a decline. And even if I take 45 to 50% of the 30, 31,000 which are expecting, it still will be about 14,000. So there’s no meaningful growth from financial years and probably the expectation this quarter.
Is that the correct understanding and what exactly we are factoring in in terms of international TND domestic T& D, some trends if you would like to highlight amid the current geopolitics because that is still not solved and we are also expecting probably the domestic government finances, they might have to also rethink the budgets across various sectors. So your thoughts on that in terms of pipeline for you and overall scenario?
Manish Monot
Sure. So Amit, yes, you’re right. In terms of absolute Inflow, you know, FY25TND was higher than FY26. We were Elvis in a couple of large projects which got shifted to FY27 and which you’ll see coming in in the month of April, May itself. Now on a totality basis, do I expect this number to be beyond 15,000 crores? In all likelihood we should be at levels of 15,000 crores max as far as TND order info is concerned in the next year. As I mentioned earlier Amit, for us it’s more important to work with selective clients, high margin projects and large scale projects.
It’s not only about top line growth because for us capital allocation, resource allocation and making sure that what we commit, we deliver is equally important. So we believe that even at a growth of 15,000 crores, you know, if we get that in TND, which is on the upper side, my view could be more in the range of 13, 14, 14,000 crores would be a very good number because we already have auto visibility today which is more than two and a half years in the TND business. So if you look at the business in terms of revenue versus auto visibility, we have a two and a half year auto book.
Visibility even today. So we will continue to focus on not as much on volume but as much on strategic projects, large projects, design build projects and solar EPC projects where margins could be slightly better than what we are getting across normal projects. And that’s our philosophy. So in terms of market, the market continues to be bullish. In terms of our capacity at the plant, I think we have capacity of more than 2 lakh tonnes at our Raipur and Gandhinagar, 25000 tonnes. So that’s not a challenge.
But yes, a 15,000 is a good number because remember all projects now come with a delivery which is more two and a half to three years. And it’s not only about getting orders, it’s also about delivering that on time with that labor scarcity which continues to be be a big challenge. So you’re right, our order influence TND might not grow at 20% which, which is what our business is growing or at 15% which is where the business is growing. But profitability improvement and return ratios improvement would be much higher than what you have seen.
And that’s visible even in the last two years.
Amit Anwani
Right. Some color on on the segmental margins, international T and the domestic T and D and all how they have done for this financial year and what are the expectations forward and also for your PBT improvement? If I got it correct, 70bps which we are expecting this year, is it going to come from the segmental margin improvement or the overall balance sheet structure and the interest savings which might have that is driving the pbt. So some color on these two aspects.
Manish Monot
Sure. So you know I do not have exactly segment wise margins but I can tell you our transmission and B and F business, Transmission B and F and oil and gas, all three businesses at EBITDA level are a double digit plus they are at good levels of double digits, you know 10, 11% plus. Our urban infra, water and railways business are at second digit when it comes to EBITDA and I think this trend would continue getting into next year. Also all three businesses which is tnd, BNF and and Gas will continue to be at double digit.
I don’t see them coming down as far as EBITDA margins are concerned. As far as margin enhancement is concerned, I think it’s going to be a mix of margins coming from the business segments as well as some balance sheet improvements because as you rightly said, our debt levels are low. So it’s going to be a combination of both. We will not deep dive into exact details of seeing that how much of the 75 basis points would come from where. But it’s going to be a combination of both driven primarily by improvement in margin on the business unit.
Amit Anwani
Understood sir. Thank you so much sir. All the best.
Operator
Thank you. Next question is from Sumit Kishore from Access Capital. Please go ahead.
Sumit Kishore
Good morning. My compliments on your strong EBITDA margin performance and the extremely strong operating cash flow performance. The question is that the capex in the cash flow seems to have gone up meaningfully year on year and that is reducing the extent of flow through to the free cash flow. So basically there is 9 billion rupees plus you know of capex versus 6.6 billion rupees last year. So what is that this CAPEX going into? Why the sharp increase and what’s the outlook for the next year? That’s my first question.
Manish Monot
Sure Sulmit. You know last three, four years post Covid at kpl we took a call that there is good visibility and growth. And we as a company believe that to take care of that growth we need to put in investments. Whether it is on aluminum shuttering, whether it is on equipments at the site, tscs cross, whether it is on plant modernization and whether it’s an international front which includes Saudi and some of the other geographies. We continue to be on track on that and all of that is coming out of our free cash flows.
Second, what is it going forward? I believe that again next year we might be incurring CAPEX more in the range of 800 crore plus. That is what we have budgeted and which is into a right mix of B and F business, TND as well as international as well as some modernization at the plant. We might be further expanding our plant capacity and for which we’ll come back to you by the end of Q2. So we believe that in the current year also we should be doing capex of 800 plus crores. We as an organization are a firm believer that in the EPC business having your own capex is a big advantage at least on large scale projects.
Because these are projects where you know, you start everything at the same time. So for example, one of those large projects which we are doing for a big client in southern India, 15 towers together we were able to start across. Right. And that’s something which we built a validity over the last few years. So we will continue to put in capex at least for the next few years. But all out of our internal cash flows. We also have some events of free cash flows coming in next year. Whether it is through a Few more divestments which are left which might happen either next year or year after that or whether it is through some strategic investment coming into our Swedish subsidiary in whatever form it comes.
So we expect some more cash flows to come out of our non core businesses also which will also help us further strengthen the balance sheet in every form.
Sumit Kishore
My second question is you have been talking about that you are reasonably well hedged on the raw material commodity side. The question is that look, copper prices started driving meaningfully to 3 onwards. The most liquid contract on the LME is maybe the 9 month contract. So will the rollover of these hedges, you know, if the issue on commodity prices continues, you know, for three quarters, let us say will that create some pain in terms of the commodity hit on margins?
Manish Monot
So Sumit, just so to be very clear, our copper exposure is extremely small. It is so minimal because you know, copper isn’t required,
Sumit Kishore
Aluminum is
Manish Monot
Okay, so aluminum businesses, Sumit, we have hedge which go up to even two years. We have significant hedge which is two years and above. There’s enough liquidity for that in the international market. And today if you ask me, you know, we are hedged on that 90% out of India, which half of them is hedged for beyond 18 months. So from a two to three year perspective, you ask me, on aluminium we are adequately hedged. We don’t need to even worry on the rollover risk first. Second, even during rollover, if you have hedged it at the right price, it’s only about the differential in terms of premium which is very, very small more often than not.
So that’s not such a big issue. So would that rollover create impact on margin? My view is closer to zero.
Sumit Kishore
So those contracts for two years are liquid. You know, on the other side, the one who’s taking position, people are willing to give on
Manish Monot
The international market. Yes, they are available.
Sumit Kishore
Excellent. Just the last follow up question, you know, good to hear the 70 basis point guidance on increasing PBT margin, that’s at the consolidated level or should we read that at the standing level.
Manish Monot
So I think on the Consol level we are targeting improvement of closer to 75 to 100 basis points. On a standalone level it will be more in the range of 75 basis points. Console level would be slightly better than 75 basis points.
Sumit Kishore
Excellent. And finally the 40% QoQ increase in the water segment in terms of revenue growth was good to see. Now what is the situation in terms of the total sort of cash flows? Money that is sort of still showing up in working capital as a receivable and you know, just your brief comments on how the situation on domestic drinking water as a percentage of your order book and growth looks like in FY27. Thank you.
Manish Monot
So on the water business, if you look at the previous year we collected more than 1800 crores. But we invested around 2,500 crores in that business because we continue to focus on on delivery. So even in the previous year we had a negative cash flow of closer to 700 crores. In that business in April we have collected more than 100 crores and in May also things look like going fine. And even collections from all states have started including UP and Jharkhand. Jharkhand remains slightly slow while we speak today.
Our total outstanding receivables on the business is closer to 1600 odd crores. And we’re pretty confident that majority of this should get recovered in the first two quarters itself. That’s the feeling we’re getting from the ground level. We continue to focus on execution of our water projects and we believe that majority of our project water projects except maybe five or six would all get completed physically in the current year and get into the O and M phase. So we continue to be hopeful at getting this money and we’re working hard to make sure this happens.
Previous year was much better than the year before that. So if you look at the year before that our collections was maybe less than 500 crores. Previous year 1800 crores. Currently I’m expecting 2 700, 2,500 crores plus and I’m reasonably sure we should be able to get that collections.
Sumit Kishore
I think. Wonderful. FY26 was the best for FY27. Thank you.
Manish Monot
Thank you Sumit.
Operator
Thank you. Next question is from the line of HDFC securities. Please go ahead.
Parikshit Kandpal
Yes sir. Hi. Congratulations on a great quarter. So my first question is we have done substantial improvement in our balance sheet with both NWC days and net debt coming down significantly. So are these numbers sustainable? And especially on the debt side, when do you expect that you will be net cash?
Manish Monot
Parikshit, as far as the current debt levels are concerned, you know, based on where we are, clearly they look sustainable. But with that growth plan for the the next year and with that CAPEX plan debt would go up in proportion to the growth plan excluding that one off inflows which we might get in the next year also. But for business as usual I expect it to grow up in relation to the business growth not significantly higher than that one. As far as free cash flows are concerned at Operation level we are doing very well.
Just that given that our CapEx, given the kind of opportunities we are focused on investing in the business and that’s why out of our operational cash flows, a lot of cash flows going into capex. But while we continue doing that we are very clear that roast from here will continue to go up. So as far as Rose is concerned you should see that moving up every year, whatever 100 plus basis points even in the current year. So Rose should go up, debt would go up in proportion to the growth. Not significant, but yes, small amounts.
Capex will continue to be at 800 plus crores as I had said earlier. But our net working capital days we definitely believe that we have reached that levels where if we maintain this it would be very good for the business.
Parikshit Kandpal
Second question is what are the steps or so how are you positioning ourselves to the entire renewables capex both in domestic and international market and even on the data center side. So beyond the TND side, so what are we planning to do to capture the bigger opportunity from the ordering side?
Manish Monot
So Parikshit, on the renewable side our focus is a lot more in the international markets, primarily the Middle east markets. With the large solar projects which we are looking at, we are already favorably placed in one large project which I’m hoping to conclude in May June itself. On the domestic front we’re not doing anything significant or renewable and that’s not also on our radar as of now. As far as TND projects are concerned, as I said earlier, we continue to stay bullish with growth from majority of our large clients both in domestic and international.
And that’s one of our enablers for improving margins and return ratios going forward.
Parikshit Kandpal
Okay, so what this one large project you’re saying, is it the one which you included in the L1 of 3000 or it is beyond that?
Manish Monot
No, no, it’s included in the L1 of 3005. 3000 crores. It’s included in that.
Parikshit Kandpal
Okay, how big is that? Sir?
Manish Monot
That’s closer to two or thousand crores. In the range of
Parikshit Kandpal
What is the scope of work here?
Manish Monot
It’s a solar project in the international market. I might not be able to share more with you because it’s still at the stage where we have not signed the contract. But hopefully the moment we sign we’ll be able to share a lot more.
Parikshit Kandpal
Okay, the other question is, I mean while we have done strong work on the balance sheet and nwc, but one thing which keeps somehow stuck or maybe the concerns around the pledge, so now the promoters that other entities already listed and the expectation was that over a period of time the pledge on the KPI share will come down to zero because two are different entities, these two are different entities. So, so what are the steps and how are you thinking how the management of the promoters are thinking that KPL will at some point of time become pledge free.
Manish Monot
So Parishit, I’m not sure we have ever said that, you know, the intent is to become pledge free. You know, I’ve never said that, but we have always said that pledge will continue to come down. That’s what is the comfort given by promoters. And we’ve seen that over the last six quarters every quarter pledges come down. I think the promoters from whatever discussion I’ve had with them continue to be on the track of bringing down pledge. We’ve never said that it would be zero or I’ve never heard that from the promoters ever.
But you’ll see that traction going down. That’s one side. Second, I think it’s also important to understand that on the pledge the borrowing is very minimal. If you look at the borrowing on the pledge, it’s like one is to four the value versus or maybe one third less than one third, one third or 25% is what they borrow. So isn’t a risk. We will discuss this again with promoters and our view is that it should only keep on coming down with period of time and quarter on quarter. There should be healthy moment on that.
Parikshit Kandpal
This is the last question on the domestic TND side, sir, how are you seeing both from the state side and even on the HDC pipeline? If you can help us understand both CSU capex likely in this year and what is the HDC pipeline looking for this year, next year and any state transmission projects where you see potentially can add to the order inflow for you.
Manish Monot
So Parikshit, today our significant focus continues to be more on power grid and a few large private sector clients. And that would continue to be a focus at least for the current year. We do not see a lot of traction coming from state electricity boards as of now, but that would change every three, four years. You see a few years with there’s a lot of traction which comes from there. So for the current year focus primarily continues to be, you know, projects coming from power grid and a few private sector players.
As far as the HVDC traction is concerned, we see a couple of large projects coming out in Q2, Q2 itself, maybe later part of Q1 and Q2 and that’s something which I’m Sure. Will focus both on transmission and subscription side and let’s see who wins. And then accordingly we will have an EPC order coming from either private sector or from the PSU side. But our focus continues to be more on PSUs in private and not as much on SCBs in the current year.
Parikshit Kandpal
In terms of project cost, how much, what will be the size of these two HVDCs?
Manish Monot
So I think I do not have the exact numbers but when I’ve seen it, 30, 35,000 crores minimum is including the transformers and the reactors may be in the range of 30, 35,000 crores. But this I do not have the exact updated numbers. I remember the numbers from a few quarters ago.
Parikshit Kandpal
So each of them will be 30 to 35,000 crores. No
Manish Monot
Total HVDC both put together would be in the range of 30, 35,000.
Parikshit Kandpal
Okay, sure sir. Thank you.
Manish Monot
Thank you.
Operator
Thank you. Before we take the next question, a reminder to all the participants. If you wish to ask a question, please press star N1. We will take a next question from the line of Vaibhav Shah from JM Financial. Please go ahead.
Vaibhav Shah
Earlier we were looking for a growth of close to 20 odd percent in terms of revenue for FY27. So this moderation in the number would largely be due to the Middle east challenges we are seeing especially in the first half of the year.
Manish Monot
I think our growth projections are more in the range of 15% for the current year. And we could revisit this number at the end of Q2 because as we stand Q1, you know we have disruptions on a global environment. We have disruptions on labor availability thanks to the elections. So while we stand where we stand Q1 Q2 are going to be difficult quarters. But our guidance is more in the range of 50, 15%, another 20% to start with. And this comes across various businesses. Our VNDF business we expect that to grow at 20% plus.
Our TND business also we expect that to grow at 20% plus. And our oil and gas business also the businesses which would not grow would continue to be mainly water and railways. But clear visibility on our core businesses to be growing at 20% plus while we speak more at an annualized basis but not on a quarterly basis. Because as I said quarterly Q1, Q2 could be challenging times for reasons completely beyond our control. And as I said earlier, you know our biggest challenges are only this geopolitical managing labor in this, this first three to six months given the geopolitical and supply chain disruptions, pretty confident we’ll be able to manage that on an annualized basis.
But Q1, Q2 would be challenging times from a growth perspective, not necessarily from margin perspective.
Vaibhav Shah
Okay. Okay. So secondly on the oiling gas business, so we had submitted few bids. We had started submitting bids in the Middle east region. So any progress over there?
Manish Monot
So yes, we’ve submitted a few bids in Q4. We continue to submit bids now also technically we are qualified in majority. If not all the businesses, a few price bids have opened open where discussions have continued. But are we L1 in any of them? If you are asking me that question, not as of now but I would also like to highlight a lot of these clients do not necessarily, you know, award project based on L1 basis. So it’s more an ability to deliver in a defined time frame and your commitment and your historical performance.
So you know you could, you could be LP and still win a project. But as of today is there anything included in L1 on oil and gas? Answer is no.
Vaibhav Shah
Okay. And sir, lastly what would be our water water backlog as of March? The JGM portion.
Manish Monot
So if you look at a water water backlog it’s closer to 7900 crores out of which around 2100 crores. O& M. So if you remove that, you know the water backlog is around 5,800 crores out of it. Significant portion would be JJM. More than 75% of this would be JJM which we expect majority of them to get completed in the current year itself. Except for a couple of projects of Punjab, everything should get completed in the current year itself.
Vaibhav Shah
Okay, and you expect that 1600 crore receivables we have right now to be cleared by September.
Manish Monot
Yes, we continue to stay optimistic on this. So we would like it to get cleared in June itself. But the indication from the ground levels and you seen this traction in February, March and April also the indication from the ground level is next to four, five months. Entire thing should get cleared.
Amit Anwani
Thank you.
Operator
Thank you. Next question is from the line of Mohit from ICICI securities. Please go ahead.
Vaibhav Shah
Hi, good morning and congratulations on a very good set of numbers. My first question sir, can you help us with the lower EBITDA at consolidated level versus standalone in the quarters? Is it there by higher probability?
Manish Monot
So Mohit, I think the impact as far as quarter is concerned is because of that exceptional loss which you’ve taken at a Brazilian level. One second, you know you had road assets which were contributing to EBITDA last year which do not exist now. So it’s a combination of both road assets we have devastated and surrendered. And you know, so we hardly. We only have one small road asset now, BB epl. And second is the fossil losses which have come through in Q4 which we have taken. So it’s a combination of both of that which has impacted EBITDA in Q4.
Vaibhav Shah
Can you please quantify the provisioning number sir, if possible?
Manish Monot
So at a FAFSA level we have done a provision of closer to 515 crores on a standalone number. So 515 crores are entire investment in any form in parcel has been provided for today. The investment stands are closer to zero in our books. And the entire thing is happening in Q4 on a standalone level. On a console level there’s an impact of closer to 200 crores which have come in Q4. We had taken already around 330 till Q9, so maybe around 175, 180 crores which have come in Q 4. So that’s the impact on EBITDA on a standalone and console basis.
When you look at the Brazil numbers on road assets, I don’t have the exact numbers but clearly that EBITDA was there. So if you look at the EBITDA from EBITDA perspective, my team tells me the impact of closer to 100 crores at a EBITDA level. But I’ll have to just re verify this numbers.
Vaibhav Shah
Understood. The second question, oil and gas, the pipeline are tending, activity in the middle is getting postponed as you speak or are you seeing the dates are being adhered to given the volatility in the region.
Manish Monot
So Mohit, we have seen discussions have already started, tender documents have started coming out, clients have started conversations with us in terms of what is our capacity, how much work can we take, what is our capability, all of that. Those things have started. We’ve also seen some tender documents come out. Some had come out in March which got deferred. Are these tenders due immediately? Maybe a few in June, maybe a few after that. But discussions across every geography, whether it is Saudi, whether it is adna, Abu Dhabi, whether it is Kuwait, whether it is Qatar have started.
And when I say discussions are serious interactions on our ability and competency to develop deliver on large scale projects and our ability to put in capex. So my own belief is, as I said earlier, Q1, Q2 would be where all the discussions and tendering should happen. And Q3 onwards we should start seeing some wins coming in.
Vaibhav Shah
Understood? My last question on the outlook of domestic tnd, of course you spoke about A near term, near term opportunity. But how do you think about the medium term outlook for next two to three years? Do you think that opportunity is peaking in the domestic market and our ordering flow would be maybe have picked out.
Manish Monot
So Mohit, in terms of opportunity I think the opportunity continues to look extremely good. Driven by everything. Driven by the grid connectivity to solar, driven by the northeastern expansion, given by dc, driven by thermal coming in for which further requirement of transmission network is required and given by the capex plans of power grid given with all of that I think opportunity looks very good. As I said earlier for us the opportunity is driven by making sure we focus on large scale projects.
You know where our competency and our design ability comes in. I think opportunity from a next two, three year perspective looks very, very attractive on this. As I said earlier, overall TND will be happy to have an orders in the range of 14,15,000 crores. We could even do more than that including solar orders. But our focus is more on improving return ratio and not necessarily because we have good visibility on B and F. We’ve got good visibility on oil and gas. And at the end of the day, you know, as I said earlier, it’s all delivery in three years.
So you need to be cautious on not building an order book which you can’t deliver in that time frame.
Vaibhav Shah
Understood sir. Thank you. Best of luck sir. Thank you.
Operator
Thank you. Next question is from the line of ashwini Sharma from MK Global Financial Services Ltd. Please go ahead.
Unidentified Participant
Yeah, thank you very much and congratulations for great set of performance. So my first question is on the bookkeeping side, what was the revenue loss because of this war in the Middle Middle East?
Manish Monot
If you look at the revenue loss it was divided into three aspects. The site construction, the bought out and. And the tower manufacturing. I think if I include all of them together would be more in the range of 200 to 250 crores. Because there was more disruptions coming out of supply chain rather than site. And that would be a number more in the range of 200 to 250 crores.
Unidentified Participant
Okay, thank you very much. Secondly, sir, since you know this fund release has started on the JGM side while you did indicate on the collection side. But then how is the tender pipeline over there? Has the JGM2 has kind of, you know started seeing. We started seeing, you know anything on the tender pipeline side
Manish Monot
While we speak. Ashwini, We’ve seen a few tenders come up in one particular state. But if you ask me are you seeing a lot of tenders come out as presented by honorable FM in the budget. Not yet, we’re still waiting for that. But as of now a few tenders which clearly we’re not focused as of now. But not so much traction seen in the last two months as far as JGM tenders are concerned.
Unidentified Participant
Okay, and my final question is sir, given the fact that now we are at a very strong footing in terms of balance sheet and then growth visibility, wanted to have some sense that over the next two, three years, what would be our key priorities from here on?
Manish Monot
Sashwini? Clearly if you look at it strategically, where we have positioned ourselves, our priority is more focused on large scale complex projects across all business units where we are driven by our design capability. We have now more than 500 people at our design center of excellence across various business units. We have the best tools which are used for productivity monitoring, planning, all of that. We’re investing in automation. We are increasing our capacity at the plant. So our first focus is large scale projects with clients who we have worked for more than in the last few decades.
You know, Today more than 50% of our order book, if not 60%, comes from our top 10 clients and some of them have been with us for the last 10, 20 years, if not one of them has been with us for 25 years. So the first priority is large scale strategic complex projects with minimal competition which will help us get into higher margin and return ratios. Our second focus is also making sure that some of our businesses look at the international footprints also today if you look at the international footprint it’s primarily transmission and oil and gas but the other businesses have also done well built themselves over the last eight to 10 years.
So we would be taking some of our other businesses also on the international footprint. Our third priority would be again reduce some of our other non core assets maybe this year, maybe next year. So that at least we are out of majority of our non core in the next couple of years and a fourth and the largest and the biggest priority if you ask me, is to make sure that we can keep our team intact. Right. Because that’s our biggest challenge today in terms of attrition and all of that. So make sure that we keep this culture of keeping the team together focused on, on profitable growth and that’s what as senior leadership we are driving towards.
Unidentified Participant
Thank you sir. Just one more if I can squeeze in sir. In the Middle east, you know, you just, you know, alluded to the fact on the labor issues or how are you kind of managing, you know, this labor availability, especially in the international geographies given the scenario that we have.
Manish Monot
So Ashwini, I think labor issues today are more dominant on the Indian front. What we have seen people leaving Mark after Holi and West Bengal elections and continuing till Bakrid. It’s a large impact coming on the Indian front, not necessarily on the international front. As I said earlier, international sites all continue to work at different speed levels. Some at maybe the similar productivity, some at lower productivity. And there isn’t such a big challenge on labor at the international front.
It’s a much larger challenge in April and May on the domestic front than the international front.
Unidentified Participant
All right Manish, thank you very much. Thank you.
Operator
Thank you. Next question is from the line of Vaibhav Shah from JM Financial. Please go ahead.
Vaibhav Shah
Yeah, so thanks for the follow up. So firstly on the LNG side revenue growth was very strong at 64% to 3000 odd crores. So how have we performed at the EBITDA level and PAT level?
Manish Monot
So as we had guided earlier, given the order book visibility, we said that revenue would do well and they’ve done well if you look at it on a FY26 level. At the EBITDA level also they have grown at more than 100%. So on a revenue of 3000 odd crores their EBITDA was closer to 200 crores. And a PBT level they were at closer to 170 odd crores which is again grown to 100 crores plus 100% plus. So at a bitter level they’ve been at more at 6.7, 6.6, 6.7%. At a PBT level they’re more at a 5.6 5.7 level which is much higher than what they did in the previous year.
Previous year if you look at it, there’s improvement of more than 100 basis point both on EBITDA and PBT as far as LMG is concerned.
Vaibhav Shah
Okay, sure. The lastly, what is the amount of warranty guarantee sitting on the book as of March?
Manish Monot
So vivu, over the previous year we have provided for an additional of closer to 100 crores in warranty guarantee on our balance sheet. And at the end of March our number should be approximately 550 odd crores of warranty guarantee in our books. Besides warranty guarantee provision of 100 crores we have also done a ECL provision of closer to hundred crores in the previous year. And that number on books should be closer to 250 or closer. If I’m not wrong, at ECL we are at around 320 crores. Thank you, Ram.
So the warranty guarantee and ECL put together is a number closer to 870, 880 crores.
Vaibhav Shah
And have you received the money on entire money from Indo Real Estate now?
Manish Monot
Yeah, I think we have already declared that on our in our investor presentation. I think we have received nearly the full amount. I think the full amount is what the team tells me, the full amount.
Vaibhav Shah
Okay. And sir, in FY27, any plans on Sri Shubham Logistics to either monetize it or.
Manish Monot
So as far as Shubham Logistics is concerned, our focus is now to reduce debt and we have reduced that significantly. We believe that our outside debt would be closer to zero by June. We are selling up some of our assets, you know, some of our warehouses and moving to a rental model. So our first focus is to make external debt closer to zero, which I expect would happen in Q1, Q2 itself. Post that we will rationalize the business more with rented warehouses and look at maybe strategic opportunities getting into the next year.
Vaibhav Shah
What would be your debt right now? The external debt,
Manish Monot
It’s closer to 60 odd crores. As far as external on the 31st of March. I think this would get closer to zero by June itself.
Vaibhav Shah
Okay, sir. Lastly, on tax rate, what would be the tax rate for FY27 at a standalone level?
Manish Monot
I think it’s difficult to give you an expectation on that. Clearly you know our tax rates, if I look at it from a three year perspective, has been more in the range of 28 to 30%. And given that international profitability still will drive a significant number of our profit, I expect it to stay in the range of 28 to 30%. Only
Vaibhav Shah
At standalone level it has been around 26, 27% for last three, four years. Yes, standalone 26 to 28.
Manish Monot
Consult 28 to 30.
Vaibhav Shah
Oh, thank you sir. Those are my questions.
Operator
Thank you. Next question is from the lineup. Ravi Swaminathan from Avengers Park. Please go ahead.
Unidentified Participant
Hi sir, thanks for taking my question and congrats on a good set of numbers. Sir, every quarter, every call you give a broad idea in terms of the pipeline of orders which are there in the market both broadly at overall level and domestic and international. If you can give that number. And also the Power TND breakup between domestic and international, if you can give it for this year and next year and you had told that the power TND we expected to grow by 20%. How the both the domestic and international segments subsegments are likely to grow.
Manish Monot
So Javi, I know you’re asking Me exactly what we have planned in the strategy for the current year. Let me give it to you in a short synopsis. I’m just repeating something which I said earlier. Tnd, pndf, huge visibility across all clients we work and that continues to be a big focus in the first six months. Building on oil and gas in the first two quarters which we expect would get us good wins in Q3, Q4 forth urban infra we continue to be selective on projects because very capex intensive now we already have 60 BMs which we have invested in the last two years.
All of them are already occupied while we speak or committed while we speak. So urban infra we continue to be selective and cautious in terms of what we build but we will continuously focus on growth there also.
Vaibhav Shah
So
Manish Monot
From Overall perspective, domestic TND, 1 lakh crore plus visible pipeline to be focused on international TND, the market which we are looking at itself is a few trillion dollars which we have to bid for in the next six to nine months. Oil and gas. From what I hear from these four markets, this number could be easily in the range of 50 to 70,000 crores. It’s not higher than that which we have to bid for in the next six months. And urban infra, the numbers could be high but our focus would be on selective bidding.
As I’ve said earlier, as far as TND is concerned, if you look at, you know, FY25 and 26, FY25 significant portion of our TND order came from TL domestic. More than around 7,000 crores is what we got in TL domestic in FY25 which came down to closer to 4,500 crores in 26. But we expect this to again go up significantly in the next year. When I look at the international markets, there was lng, Parcel and TLI all put together which have been very similar in the last two years. In FY25 they got orders of around six and a half thousand crores.
In FY26 around 8,000 crores. I expect this business to do more than eight, eight and a half thousand crores in 27 also including some solar projects which we are bidding for. So focus is a right mix of both domestic and international in the range of 8 to 9,000 international in the range of 6 to 7,000 domestic and that’s what will continue to drive growth going forward.
Unidentified Participant
Understood sir. Thanks a lot.
Operator
Thank you. That was the last question for today. I would now like to hand the call back to the management for closing comments.
Manish Monot
Thank you very much. For attending the call. Hopefully we will continue to deliver as we have done in the past. Thank you.
Operator
Thank you very much on behalf of TAM Capital Advisors. That concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.