KNR Constructions Limited (NSE: KNRCON) Q3 2025 Earnings Call dated Feb. 14, 2025
Corporate Participants:
K. Venkatram Rao — General Manager, Finance and Accounts
K. Jalandhar Reddy — Executive Director
Analysts:
Shravan Shah — Analyst
Ravi Naredi — Analyst
Jainam Jain — Analyst
Lokesh Manik — Analyst
Bhavin Soni — Analyst
Vaibhav Shah — Analyst
Faisal Hawa — Analyst
Ketan Jain — Analyst
Vasudev Ganatra — Analyst
Saket Kapoor — Analyst
Parth Thakkar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to KNR Constructions Limited Q3 and FY ’25 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involves risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. K. Venkatram Rao, General Manager, Finance and Accounts KNI Construction Limited. Thank you, and over to you, sir.
K. Venkatram Rao — General Manager, Finance and Accounts
Yeah. Thank you. Good morning. Thank you for joining us today on the call to discuss the financial results for the Q3 and nine-Month FY ’25. Along with me, I have Mr. K. Jalandhar Reddy, Executive Director and Strategic Group Advisor, our Investor Relations Advisor. We have uploaded results in the investor presentation on the stock exchanges as well as in our company website. I hope everyone got an opportunity to go through it. We would like to touch upon a key company’s update and industry events post which we will have a question-and-answer session. The recent union budget for FY ’25-’26 reaffirmed the government’s strong commitment to the infrastructure development with the budgetary allocation of INR2.87 trillion for the Ministry of Road Transport and Highway.
This substantial investment is poised to accelerate road development, enhance connectivity and strengthen our transport network, paving the way for the more robust and resilient economy. Although the first-nine months of FY ’25 witnessed a slowdown due to macroeconomic factors with approximately 5,853 kilometer of the roads constructed. The sector continued to demonstrate a strong foundation for growth with a large and car project already to be awarded. The sector has already gained significant traction with the second-quarter, averaging around 600 kilometers of the projects awarded. The momentum has further increased in Q3 quarter also. Additionally, the is prioritizing corridor-based approach, which will have enhanced user convenience and improved logistics efficiency. As of December 2024, Morth has operationalized 4,693 kilometer of the highwayste dispute corridor with a target to reach 4,827 kilometers by the end of FY ’25.
Looking ahead, India’s ambition vision of 2047 aims to reshape the national infrastructure landscape. Under this long-term roadmap, the government is set to approve a series of future highway projects, ensuring the seamless expansion of National Highway network. Notably, project awards are progressing at a steady and comfortable pace, reflecting continued momentum in the sector. This increased focus on infrastructure will not only boost construction equity, but also improve logistics efficiency, create employment opportunity and drive economic progress. With this strategic development, India’s road infrastructure sector remains a cornerstone for national growth and connectivity.
Now come to the key update of the company. The percentage of fiscal progress as of December 31, 2024 for the HAM project is as follows. Margari to paid, approximately 88% completed, to approximately 90% completed, to Cabricott approximately 86%, Chittur to approximately 84% and to 23%. As of December 31, 2024, the company has already invested INR589 crores out-of-the INR900 crores revised equity requirement for all the HAM projects. The additional requirement of INR401 crores to be infused as INR108 crores in 2025, INR2.5 crores in FY 2026 and INR88 crores in FY 2027. You can refer to the slide number 23 of the investor presentation for the detail on projects. In January, the company received letter of acceptance for two irrigation projects in the state of Telangana. Both projects together account for INR429 crores of our share of revenue. Now coming to the order book position.
As of December 31, 2024, the company’s total order book stands at INR3,880 crores. This is divided in 46% for the EPC road project and HAM project, 26% for the irrigation project and remaining 28% from pipeline project. Client-wide is 71% of order book is from the third-party client and balance 29% for captive HAM project. The third-party order book percentage is further splitized the state government 58%, whereas 10% is a central government and balance 3% from the other private player. As to note that this order book does not account for the two HAM project totaling to INR1,200 crores as the accounted date is yet to be received. Additionally, which exclude two irrigation project awarded in January ’25 value at INR429 crores. Including this, the total order book would as INR5,517 crores.
The current order book will be executed over a period of 1.5 years to two years. With the government emphasis on the infrastructure development, we anticipate new order about in the coming quarters. We are aiming for an order inflow of approximately INR5,500 crores to INR6,000 crores to INR8,000 crores by the end of September ’25. Before discussing the financial figure, I would like to highlight that during the quarter, the company received an arbitation plan from one of our associates that is Patel Kenar Heavy Infrastructure Limited. This includes INR35.6 crores recorded revenue from operation and INR1.3.5 crores as interest on such claim if that is reflected in other income. The related expenses of INR1.3 crores has been included in other expenses and resultant tax of INR34.6 crores is accounted under current tax.
Now let me make through the Q3 and nine months FY ’25 standalone financial performance, followed by the consolidated performance. I will start with the quarterly highlights first. The revenue for the quarter stood at INR743 crores. EBITDA for Q3 FY ’23 grown by 3% to INR151 crores as compared to INR147 crores in Q3 FY ’24. EBITDA margin is at 20.4%. Net profit for the quarter was INR182 crores Y-a-vis group to INR86 crores in Q3 FY ’24, registering a growth of 113% year-on-year. Now coming to nine months FY ’25 highlights. Revenue for nine months FY ’25 stood at INR2,507 crores, EBITDA for Nine-Month FY ’25 grew by 4% to INR508 crores as compared to INR487 crores in nine months FY ’24 ’25. EBITDA remained in nine months FY ’25 stood at 20.3%. Net profit for nine months FY ’25 was INR650 crores as compared to INR296 crores in nine months FY ’22.
Now coming to the consolidated financial performance, I will start with the quarterly highlight first. The revenue for the quarter stood at INR848 crores. EBITDA came in INR256 crores in Q3 FY ’25, while to INR226 crores in Q3 FY ’24, a growth of 13% year-on-year. EBITDA margin in the current quarter stood at 30.1%. Profit-after-tax stood at INR248 crores in FY ’25 vis-a-vis 136 crores in Q3 FY ’24, a growth of 83%. But moving to nine months FY ’25 highlights, the revenue for Nine-Month FY ’25 grew by 25% year-on-year to INR3,778 crores. EBITDA for nine months FY ’25 was INR1,404 crores as compared to INR673 crores in nine months FY ’24, registering 109% growth. EBITDA margin for Nine-Month FY ’25 stood at 37.2%. Net profit grew by 142% year-on-year to INR994 crores.
Now moving on the standalone balance sheet, the company continued to remain a strong balance sheet. Working day cap working days stood at 69 days compared to 71 days as of September ’24. The consolidated debt as of — as of December 2024 is INR14,086 crores as compared to INR1,220 crores in March 31, 2024. The net debt to the equity on consolidated basis as of December stood at 0.33% compared to 0.3% as of March ’24.
With this, we can open the floor for question-and-answers.
Questions and Answers:
Operator
Yeah. Thank you very much, sir. [Operator Instructions] We have our first question from the line of Shravan Shah from Dolat Capital. Please go ahead.
Shravan Shah
Hi, thank you, sir. Ready, sir, just wanted to understand primarily because for us the concern is the orderation [Technical issue] Hello. Are you able to hear me?
Operator
Go ahead with your questions.
Shravan Shah
Yeah, I unmuted. Are you able to hear me?
Operator
We’ll move on to the next participant. The next question is from the line of Ravi Naredi from Naredi Investments. Please go ahead.
Ravi Naredi
Hello. Jalandhar Reddy ji, it is so far good result. We received so many arbitration claims this year. How many more in pipeline can you describe this?
K. Jalandhar Reddy
So actually, good morning, everybody. You know, the claims concerned, there is no much better pending as of now. I think due to Viwat was scheme, we could get settled with all other claims and very minor claims are there one Kona Air project, there is a claim about, say, INR15 crore whose receivables through this was maybe INR11 crore and all that. That’s all the claims first thing concerned. And there are a couple of other claims in some AM model projects and to Puram project that is a claim and there is a claim in around INR300 crore, I think in Puram and Ms Bangalore package there is to that is that project also has about say INR150 crore-plus claims. But these are the arbitration is still at two commence. I think those claims were launched and we have asked for some of consolation committee, there is a committee in NHAI for settlements of these claims. If they defer with our argument, then probably we would go for a other thing. Other forum like go to arbitration and then exhaust on that channel.
Ravi Naredi
Okay. Okay. Thank you, sir. And we have INR5,200 crore to 12 months total top-line, while we have only INR5,500 crore value of contract in-hand, which is equal to one year, will you comment on this?
K. Jalandhar Reddy
Yeah. Actually, as in one and a half year onwards, there is no significant — significant orders which have been received by the company because there is a big slowdown in NHAI with the major client in our industry to get the jobs from highway and HAM model or roll model projects. So those were completely — I think they were tenders, but not in large numbers like they used to happen in every year. So the rally was very small and the aggression in the market was very heavy. You know, some tenders went at 20% 25% high model 20%, 25%, it is unimaginable. Certain tenders have gone in that way. So there is aggression in the market, little bit, but you know, there is a huge pipeline which is there in NHI’s website.
As you can also see it, we have keenly studied on certain around 60 — 70, 80 projects we have studied as of now. So we were making our moves as and when these tenders come up, we can put our bid. So there is a time — there’s a lot of time which we’ve got, so there is a keen study is being done. Even at most the design care was taken, almost all the care was taken. So hopefully, we should be able to get-out with this apart from this, the highway NHI divisions, we are also participating through state government projects in highway sectors like Tamil Nadu is coming out with few projects and Karnataka is coming out with few projects. And you know, irrigation projects are also in a major way that coming from NPEA projects, which we are focusing now.
And in Rajasthan, there is an interesting thing that we have in harm model irrigation projects, which are also there on the board, which we are preparing our bids to submit over there and apart from that urban infrastructure projects are coming up in in large-scale in Tamil Nadu, as well in Telangana, as well in Andhra Pradesh also. So there — those areas also like flywers and all other many infrastructure development projects in the cities and all that coming up. So which we are also focusing there. Apart from that, recently, we have placed our bits in open mining operation contracts. So those areas also we have given our bids and we continue to get-go on them. And you know, certain other care also has been taken.
You know, there are large-scale projects like INR5,000 crore, INR8,000 crores, INR7,000 crores the size of projects which are coming out on BYT toll model for which I think we have spoken to Adani’s and we have submitted Agra Gwaliar bid with EPC bid to them. So hopefully, if it goes well, then they would get and we will get EPC, that’s kind of arrangement which we have got. Apart from that, we are also thinking to give some certain bits where a is also participating in toll bits. So there also we would like to go. So there is quite interest which we are capturing. I think in extensive efforts and hard efforts are being made by us to get enough order book in-hand. Our target is to have around 8,000 minimum in coming two, three months’ time.
Ravi Naredi
So by 31st March, we might receive this from NHI contract?
K. Jalandhar Reddy
Actually, we may be bidding, but I don’t think the bids will get opened by that sooner. You know now you summit the bid, it is taking almost 45 to 50 days to open it also. So probably the — most of the bids could be submitted. I think most of the tenders which may happen in March. So those tenders, we will be definitely placing our bids.
Ravi Naredi
Okay, okay, okay. And what is the status of our debtors amount from Telangana government?
K. Jalandhar Reddy
Actually that we have given a court case also as a safer sake I have given, but we have even spoken department had a seriously meeting with us stating that when do you pay us? Then the department and ministry minister that Udaybas the minister of irrigation in Telangana who also spoken to us saying that this link five projects which are which is in the pump. You know we were doing pump project, which comes under Link 5 of that thing. So that is with the bank funding. So that gets started in they are trying to solve, but I think it is not solved as of now.
So we were expressing our listing, either you take-in the budget or you get that result so that we get paid. Otherwise, so much payment we cannot wait. So they were asking us to withdraw the case and always said, no, we cannot withdraw as you have delayed beyond our expectations. You know, mostly one-and-one and a half year it is delayed. So the interest part itself is becoming huge in this. So we said, okay, let the interest also to be collected. If you pay the principal, we will continue to fight for the interest part, which you have clarified with the department.
Ravi Naredi
Okay. Okay. Okay. So how much amount due today is on today?
K. Venkatram Rao
Sir so our side is INR577 crores of our package four bills are certified by them actually that we have to get the money immediately. And around INR400 crores actually we did the work our bill has to be certified. So put together around INR977 crores is there in that particular project.
Ravi Naredi
And we in last six months, we do not receive any single pie? For this project we have not received, sir. For another project, one project was there that we received INR37 crores in the month of January itself. Jalandhar Reddy ji, you are a sore senior person in the industry and we hope definitely you will do something for company and we wish all the best.
K. Jalandhar Reddy
Yes, sir, sir. Thank you very much, sir. Thanks for having a trust in us and we’ll try our best in this.
Operator
Thank you. We have our next question from the line of Shravan Shah from Dolat Capital. Please go ahead.
Shravan Shah
Hi, sir. Sir, are you able to hear me now?
K. Jalandhar Reddy
Shravan, I think you are on mute.
Operator
Mr. Shravan please unmute your line to ask questions.
Shravan Shah
Sir, are you able to hear me now.
K. Jalandhar Reddy
Not audible.
Operator
Mr. Shravan you are not audible.
Shravan Shah
Sir, I think I already umuted…
Operator
Mr. Shravan, we request you to rejoin. We have our next question from the line of Jainam Jain from ICICI Securities. Please go ahead.
Jainam Jain
Thanks for the opportunity. So sir, what would be your margin and revenue and order inflow guidance for FY ’26?
Operator
Mr. Jainam, please unmute your line to ask questions.
Jainam Jain
Hello. Am I audible right now? Hello?
Operator
Yes, sir, please go ahead. Yeah. So sir, my first question is, what would be our margin revenue and order inflow guidance for this year for FY ’26?
K. Jalandhar Reddy
Actually, sir, FY’26 concerned, I think the projection is we are expecting little less lesser projections only from this year as order book is very less and it is coming to an end also. Most of the — and certain where we can do the job in irrigation and all there is a little bit problem in payments. So that’s how we expect around the 10% to 15% dip, which we are expecting in the top-line. But bottom-line concerned, it may be at par or little bit good only.
Jainam Jain
Sorry, what did you say for the bottom-line?
K. Jalandhar Reddy
Actually, it could be at par because you know the turnover is coming down, but since the claims and all were received, so okay, face saving will be there in that.
Jainam Jain
Okay. So we will be margin. We’ve been meaning right now we have roughly around 16%, 17%?
K. Jalandhar Reddy
Yeah, I think, yes, sir. I think.
K. Venkatram Rao
And sir, we will wear somewhere between around 15%, definitely we could be able to achieve that.
Jainam Jain
Okay. And what about order inflow like how are we seeing in the order in Q4 next year?
K. Jalandhar Reddy
Order inflow concerned, sir that we have just spoken about it. You know that we are seriously focusing on various sectors like highways and irrigation projects as well. We are also focusing on mining operation projects. Apart from that, there are lot of state government projects which we are focusing there also we expect jobs to come down. And apart from that, we are also sorting partners you know who can do the concession and they can give us EPC model like Adani and this cube highways and all that which we have spoken and MOUs are under dis I think MOU is done with Adani’s so certain progress is there in that side also. So there is a serious efforts, which we are also keeping on it, sir. As you know, the order book is serious concern to our company as of now. So definitely, we try to do a better job here. I’m also targeting about say near about INR10,000 crore order book inflow the coming two, three, four months time.
Jainam Jain
Okay. All right [technical issue].
Operator
Sorry to interrupt Jainam, sir. We are unable to hear you.
Jainam Jain
Hello. Am I audible right now?
Operator
Yes. Please go ahead.
Jainam Jain
Yeah. So sir, coming to the order pipeline, like what is the amount of project that we have quoted for right now? And like how much we are expecting to win within the March month itself for the tenders, which will be opening before the March?
K. Jalandhar Reddy
I think the — there is no that this thing is there now because the tenders are still not yet happened major tenders which we are focusing on them. So we expect March, we expect a little bit lesser figures because if at all any state government tenders that happens, then there is a chance of winning tenders. And otherwise NHI concerned, they may get open in — if even March, if it is a big rally in March also, they get open in April or May. So kind of that. So another three months-to four months’ time reasonably we should be having the order in hands that is what we are targeting.
Jainam Jain
Okay, sir. And sir, coming to the working capital, can you just give some numbers on the unbilled revenue, mobilization, advance inventory data some creditors number as of now as of December ’24?
K. Venkatram Rao
Yes. As far as debtors is concerned, debtors is INR1,221 crores of the debtors
Jainam Jain
Okay.
K. Venkatram Rao
And unbilled revenue is INR1,113 crores and retention is INR300 crores and mobilization advance is INR30 crores.
Jainam Jain
Okay. And so what about inventing creators?
K. Venkatram Rao
Inventory is INR196 crores and creators INR332 crores.
Jainam Jain
[Technical issue].
K. Jalandhar Reddy
Your voice is not audible.
Jainam Jain
Hello am audible right now?
K. Jalandhar Reddy
Now it is better. Yeah.
Jainam Jain
Yeah. So sir, what’s the issue with the Agara project like we achieved the financial closure 1.5 years back and still we haven’t received the appointed date for that. Like how are we seeing the progress — how are we seeing it progressing further?
K. Jalandhar Reddy
Sir, the Mysuru projects you’re talking about?
Jainam Jain
Yes. Mysuru.
K. Jalandhar Reddy
Kushal Nagar. Yes. Actually, sir, that they have received the clearance from forest department to go ahead. So there is land now being handed over to the Concession Act. I think in a week’s time, we shall be commencing those projects.
Jainam Jain
In the week time. Okay.
K. Jalandhar Reddy
Yes, sir. Actually, the Package 5 has full-length land, but package four is not that much not to the expected level like 80% is there, but still NHI is pushing us to take. And since I also need some break, so at least to run the projects, I will need the job in hand. So I’m also cooperating NHI to go ahead.
Jainam Jain
All right, sir. Okay, that answers my question. Thank you so much and all the best.
K. Jalandhar Reddy
Yeah.
Operator
Thank you. Ladies and gentlemen, in order to ensure that management is able to take questions from all participants in the conference, please restrict yourself to two questions per participant. I repeat, please restrict yourself to only two questions per participant. We have our next question from the line of Lokesh Manik from Vallum Capital. Please go ahead.
Lokesh Manik
Yes, hi, good afternoon. My first question was on the EBITDA margins. So they are a little elevated from what we have guided at about 17%. So just some clarification on whether this is due to many of the projects nearing the end in the portfolio mix is — would that be the reason or you are seeing lower raw-material or raw-material prices are coming towards — coming down?
K. Venkatram Rao
Definitely, most of the project is there, but as our road projects are there, almost 80% is completed. The project under fag and also that irrigation, which is our very good contribution in, their portion of the total turnover is also reducing. So basically, these are the main reason actually. That’s why there is little bit lower in our EBITDA.
Lokesh Manik
Fair enough. Fair enough. Sir, my second question was on your previous comment on packaged four. So, we do appreciate your very risk-averse, but do you see any risk on that front because you said they are just 80% of the land acquisition and not towards your comfort level, but also given the reputation of the customer that is NHA, right, so are you seeing any risk in terms of that front going down, there may be some bottlenecks towards once you start the project or commence the project?
K. Venkatram Rao
Generally, sir, as per the contract condition is 80% land is there, we will take the debate and balance 20% while execution of the project actually. So it will come actually. And as per concession agreement, whatever the land they will hand over within 180 days from the appointed date. On that land only, we have to do the entire work and on this, they will give the PCUD. So we are very much clear that as per the agreement if whatever the land is there as an appointed date plus six months, we have to execute the work on that land and we have to get the PCOD. So really we are not facing much issue in this because we have so far completed actually almost five HAM project and still four are there. So we have seen that issue has not come actually in any of our projects as of now.
Lokesh Manik
Right, right. Any update on the metro projects where you are planning to diversify?
K. Jalandhar Reddy
Sir, actually metro projects concerned the tenders which we have quoted, we have lost the tenders. I think we are waiting for upcoming tenders.
Lokesh Manik
And railways?
K. Jalandhar Reddy
Also — we have lost, we didn’t get anything, but we will continue to focus on this.
Lokesh Manik
That’s it from my side, sir. Thank you so much.
K. Jalandhar Reddy
Thank you.
Operator
Thank you. And I remind it to all participants to restrict yourself to only two questions. The next question is from the line of Bhavin from Anand Rathi Institutional Equities. Please go ahead.
Bhavin Soni
Yeah. Hello, sir. Thank you for the opportunity. Sir, just wanted to understand, sir, how do you — what is the, you know probability? How do you feel, you know about winning the MDO projects, like mining projects? You know I believe this is, you know like a different set of projects from what we do earlier. So any light on that?
K. Jalandhar Reddy
Hello?
Bhavin Soni
Yeah, hello, sir. Can you hear me?
K. Jalandhar Reddy
Pardon me, sir.
Bhavin Soni
Yeah. Can you hear me?
K. Jalandhar Reddy
Yeah. Please repeat that.
Bhavin Soni
Yeah, yeah, sir. Thank you for this opportunity. Just wanted to get your insights that we have — we have bid — we have placed bids for the MDO projects, mining projects. So what do you feel as the chances of feeding probability. As you know, our background projects is a bit different from MDO projects?
K. Jalandhar Reddy
Sir, actually these projects, many operation projects that we have evaluated carefully and whatever the price that has come, we put it on which just is the first project. So I don’t have a big feel that what happens there and all, but regularly, it’s a complete machinery-oriented project. So and the operations are continued — likely to continue for five years. So we expect a good outturn, but EBITDA is not as good as highways are irrigation kind of thing.
Bhavin Soni
Right, sir. Right, right. Yeah. And sir, second thing as a company’s policy, we try to maintain the EBITDA margin, so we generally do not compromise on that. So when you say you previously mentioned there is a lot of competition in NHAI projects. So then what is the strategy the company is adopting? Like we will be directly bidding for the NHI projects or we will then go — we will have a back-to-back arrangement of EPC projects to maintain our margins. So how are we strategizing?
K. Jalandhar Reddy
Actually, sir, you know, toll project concerned and going as an EPC player, project and hand project continue to be actually — I was even qualifying for INR5,000 crore projects in this. So definitely the large-scale projects also there in the bid, like Assam, there is around INR5,200 crore project was there. So we are all focusing on the such projects. So the ticket size this time, luckily even PMO is reviewed last year and they said to go for you know large-scale projects only because the quality is deteriorating with the small-scale contractors and all. So that was the call taken by the NHAI.
Bhavin Soni
Okay. So just wanted to know out of curiosity, what is our limit for the HAM project like how much is the cutoff like — are we able to be it for 3,000 plus projects, INR3,000 crore-plus project or what is the limit? We are not eligible for INR5,000 crore-plus project?
K. Jalandhar Reddy
Yes, sir. We are eligible. We are eligible for INR5,000 crore project means all such categories which we are there, they can be qualified, right?
Bhavin Soni
Okay. And sir, just last question, sir, we have experience in the BOT toll project side previously. So — and seeing the government preference of PPP. So shouldn’t we strategize to be — to participate in the BOT toll projects? I understand there is a traffic risk involved. But —
K. Jalandhar Reddy
Yeah, your right question, sir. I got the question. You know, most of the bids are coming on this greenfield highway projects, sir. There are little bit predictions are not so encouraging. I don’t think on some sort of conclusions are there. Wherever I am very clear with the traffic growth and all there, I’ll try to participate on my own also.
Bhavin Soni
Okay, sir.
K. Venkatram Rao
As we have enough equity in hand, we can focus, sir, but our equity is very precious of one to put in good ones, not in any other —
Bhavin Soni
Right, right. Got your point. And sir last thing about the monetization plan. We were — we were under discussion and there was share purchase subsession agreement was in an advanced-stage. So what is the update on that like for the four matured assets?
K. Venkatram Rao
Yeah, when that SPA is on discussion, sir. So we expect that we should be able to sign the — I mean SPA for this four assets by end of Q1. And after that it will be to — because project we got the PCOD. So immediately after that we will go for NHA and lenders approval. So we expect that by end of June actually, we should be able to monetize our one assets, Palani, and other three assets, we are expecting PCOD by March. So you — by maybe by December end actually, we should monetize the other three assets.
Bhavin Soni
Okay, sir. Okay, sir. Sir, I’ve got a few balance sheet questions. So I will join back the queue and come back again.
K. Venkatram Rao
Yeah. Thank you. Thank you.
Bhavin Soni
Thank you, sir.
Operator
Thank you. We have our next question from the line of Vaibhav Shah from JM Financials. Please go ahead.
Vaibhav Shah
Sir, I called rocked off. So sorry if the questions are repeated. Sir, firstly, you mentioned that 10% to 15% revenue decline. So that is for FY ’25, right?
K. Jalandhar Reddy
By ’25 yeah.
Vaibhav Shah
And for FY ’26, what are we targeting?
K. Venkatram Rao
Because these are the project when we are going to receive based on that actually FY ’26 revenue will be there. But if we get suppose any HAM project, it is taking almost one year to start that project. Even EPC project also, it will take at least six months to start. So definitely ’26 also, we are not — we are also thinking that if we could able to at least par something INR3,500 crores to INR4,000 crores, let’s say, we are targeted ’26, but definitely ’27 will be the good because lot of the project what we are targeting in Q1 and Q2 of this FY ’26. So ’25 will be around 10% to 15% degrowth and ’26 will be somewhere INR3,500 crores to INR4,000 crores.
Vaibhav Shah
Sir, secondly, on order inflow side, for we have around INR430 odd crores in the year-to-date. So for FY ’25, what will be our guidance assume for FY ’26, if you could just split in annual terms?
K. Venkatram Rao
Because for FY ’25 now, time is not only 1.5 months is there. So that’s why our EDCI told that we are targeting between INR8,000 crores to INR10,000 crores order book in next three to four months actually. So — because March is almost 1.5 months. So we are not very much sure. But target is that between three to four months, we should get at least INR8,000 crores to INR10,000 crores of order book.
Vaibhav Shah
So by Q1, we should get around INR8,000 crores INR10,000 crores of new inflows.
K. Venkatram Rao
Yeah, yes, sir. Yes, that’s — we are targeting it.
Vaibhav Shah
Okay. And sir, secondly, on the hands, so when do we expect to receive the ADs for both the hands?
K. Venkatram Rao
Actually, as far as I already explained for package five actually that much. So that we are expecting in week time actually. So maybe you can say 10 — around 10 days actually we’ll get and other one is maybe by end of March.
Vaibhav Shah
But execution would largely be starting next year only in Q1.
K. Venkatram Rao
So this one will start. First, package five will start us execution as well. Package four may take some time.
Vaibhav Shah
Okay. And sir, you mentioned that our package for certified and unbilled around INR977 crores. And what about package 3? The total receivers would be how much?
K. Venkatram Rao
Package 3 actually total — package 3 will be around INR120 crores is there, package 3. So total irrigation receivables is including unbilled as of date is around INR120 — INR1,200 crores is there. Out of that INR600 crores is certified and the balance INR600 crore is uncertified.
Vaibhav Shah
And sir, lastly, on the irrigation side, so our order book is roughly INR900 crores, INR990 crores, it is constant for last couple of quarters. So actual revenue potential would be somewhere around INR400 odd crores incrementally?
K. Venkatram Rao
Yeah, yeah yeah, it will be incremental — around INR500 crores will be there. That’s.
Vaibhav Shah
Okay. Okay. And sir, lastly, in terms of EBITDA margin, it should be around 15%, around 16%, 16.5% going ahead?
K. Venkatram Rao
Because now turnover is depleting we expect that EBITDA in the range of around 15% actually between 15% to 15.5% will be there.
Vaibhav Shah
Okay. Okay. Thank you, sir. Those are my questions.
K. Venkatram Rao
Thank you.
Operator
Thank you. Ladies and gentlemen, please restrict yourself to two questions per participant only. I repeat, please restrict yourself to two questions per participant only. We have our next question from the line of Faisal Hawa from H.G Hawa. Please go ahead.
Faisal Hawa
So there is a big drop in employee expense as well as finance costs even quarter-on-quarter. Finance cost is halved and employee cost has gone back — gone down by 25%. What is the key reason for that? Second is, sir —
K. Venkatram Rao
Finance cost actually we have — because in last quarter actually we have received a lot of — some of the claims actually. For that finance expenses also, it is included in the finance cost also. So that was included in finance cost is of last year. And as far as employee expense is concerned, because there was variable pay actually we paid in the last quarter until Q2 of our management. So that variable pay is only one-time into — that’s why it was there in more in Q2, but not there in Q3.
Faisal Hawa
And sir, what do we expect to gain from this HAM portfolio that we are going to sell these four projects. So I believe that one project will be sold off by June and the rest of it will be sold-off by December. So what is the gain on the equity that we have invested, what is the gain that we are expecting on them?
K. Venkatram Rao
And second one of them. We are also discussing with them, but Glen will be definitely very good actually. It will be the — we can say, but it will be very good prices, definitely better than what the deal we did actually earlier.
Faisal Hawa
So — and sir, what is the is it the right statement to make sir, suppose in one year’s time, we get about INR1,200 crores irrigation dues from Telangana government and we make another say from the equity portfolio, we make another similar amount. So is it the right statement to make that we will be having almost INR2,400 crores free cash flow-in one year from now?
K. Venkatram Rao
But we have to invest in our equity as the INR400 crores is there, we have to invest in our equity contribution. We have to do the capex for our future projects.
Faisal Hawa
I man, the company will also earn some money in the next four quarters, some more money from existing orders and revenue?
K. Venkatram Rao
That’s one. Definitely one of your statement is to the extent is true, but subject to considering all this cost all.
Faisal Hawa
And sir, what is the —
K. Venkatram Rao
And we are also targeting BOT toll project where — where actually suppose we have to put some marginal equity also. So that also we have to put from all these money. So what are the cash flow available for next one year-after you ordering almost INR2,400 crores. It is going to be utilized on all these basic.
Faisal Hawa
In a recent — in a recent newspaper article was also mentioned that most of the HAM projects taken up by many EPC projects have — are in not any state of any completion and left even halfway. Is that — is that true? That’s one. And second is, is it true that in BOT projects, we would be having a maximum of three to four players only who would be competing against us?
K. Venkatram Rao
As far as HAM is there, definitely because you have seen that last one — almost last two years actually, how the bidding has been there, it is very, very aggressive using. So definitely it has the impact on the different quality and the delay in that project. So we know that actually because some projects are there is minus 25, minus 30, we don’t know actually how it is going really viable as far as we concerned. So we are — we are thinking that might be the reason that’s why there is definitely real poor construction quality or a delay in the project. So that might be reason what we are expecting. As far as BOT, the toll is there, definitely toll project also, we are looking on that. So if some toll project, as I already said is telling that we are already in time with some time with Adani and time with Q actually to do the EPC work for that their BOT toll asset. So we are also working in that area also.
Faisal Hawa
But is the competition limited to only four to five years in BOT?
K. Venkatram Rao
Because what is happening in BoT toll because you have to — so equity contribution is more. So you have to be very good. So right now, limited actually three to four players are there who can able to reinput the equity. So — and if toll project — BOT toll project is coming between INR200 crore to INR2,500 crores of the size. So definitely that much equity contribution actually. If we — like KNR actually, we can also individually bid one to two projects, not more than that because that equity is huge actually. So that’s why we are tying up with other investors or other developers actually to do their BOT?
Faisal Hawa
And sir, what is the — what are the chances that we get that MSR order which we felt that we could get from Patel Engineering now that the Maharashtra elections are over?
K. Jalandhar Reddy
Okay. Sir, actually that there is some LOA delays because of the land acquisition. The — when we have spoken to the authorities, they said it will take a couple of months to clear that and issue LOA.
Faisal Hawa
Okay. So we plan to complete this Karnataka project for which appointed it will be received in the next one week, we plan to just concentrate on that on that and complete it in the next financial year so that our revenues are —
K. Jalandhar Reddy
We will — we will continue to focus that completions. Yes, definitely. All the resources and all everything we will put and try to finish with bonus and all that. We are targeting that, sir.
Faisal Hawa
I appreciate you answering my questions so well, sir.
K. Jalandhar Reddy
You’re welcome sir.
Faisal Hawa
Thank you.
Operator
Thank you. We have our next question from the line of Ketan Jain from Avendus Spark. Please go ahead.
Ketan Jain
Thank you. Sir, my question is on, sir, what is the type of NHAI pipeline are you seeing in terms of kilometers and value in EPC, HAM and BOT separately?
K. Jalandhar Reddy
Pardon, sir?
Ketan Jain
What are the — what is the size of orders in NHAI tender, which is currently going to come up in? And when EPC beauty, how much?
K. Jalandhar Reddy
Actually, sir, the size of orders, you know, they just started with — even today, there are INR800 crores, INR700 crore projects are there, but you know, recently they have started drawing those such size projects and they are just trying to group a bigger sized projects like 2,000, 3,000 levels they are now, I think, putting on a bid. So definitely we are waiting for that move, sir, because the smaller contractors really they are creating huge in the bids and taking at a very bad price. And they are also ruining the quality of the roads, which was noticed by our Shri. Naredra Modi ji also. So I think the corrective measures have been started to be taken up. So we hope for the better will come up —
Ketan Jain
I was asking the total value of projects, total value of projects?
K. Venkatram Rao
Value of projects as of now, I think we have around, say, INR55,000 crore, I think on EPC.
Ketan Jain
And how much —
K. Venkatram Rao
EPC, I have not bifurcate sir, if you want, I will like to break and send it to you.
Ketan Jain
Okay. But around INR25,000 crores of projects, right, sir.
K. Venkatram Rao
Yeah, actually it is there, but I don’t have it right now. That’s the problem.
Ketan Jain
Understood. Understood. Okay. Sir, if you can help us with the adjusted revenue EBITDA PAT for nine months and 3Q?
K. Venkatram Rao
Yeah, yeah. So actually for Q3 FY ’25, the adjusted EBITDA is around 16.57%, amounting to INR117 crores, sir and adjusted PAT actually for Q3 will be INR78.35 crores as around 11%. For nine months, adjusted EBITDA is sorry, sir, 16.4% amounting to INR390 crores and is concerned, it is INR252.59 crores amounting to 10.6%.
Ketan Jain
Understood, sir. Thank you. Sir, my next question is on — what is the — like how is the progress on the Andhra Pradesh capital city project? Are we seeing any tender for that?
K. Jalandhar Reddy
Yes, sir. Actually, they have called on some small scale projects which are supported by that INR200 crore INR300 crore level projects have been already on the bid. Right now, the citricate size is smaller and competition is going to be as envisized there. So we were awaiting for the bigger scale projects to come down. So that 200, 300 level projects have already come up. So now I think what I mean to say is that the capital growth is now being planned.
Ketan Jain
Okay. Understood.
K. Jalandhar Reddy
So I heard that the CRDA, the Capital Development Authority is now being formed and they have been given serious tasks to take-up the construction.
Ketan Jain
Understood. Understood. Sir, my last question is on the you spoke about orders in Tamil Nadu, Karnataka, Karnataka the BOT project with Adani, the project with Adani. So if you could help us in the size of these projects, Tamil Nadu and Karnataka, what size of — what are the sizes of these projects?
K. Jalandhar Reddy
Actually, it’s Tamiladu actually which now we are preparing bid — I think we are preparing a bid about say INR1,900 crore sized project for some highway project and INR900 crore around INR900 crore for highway projects. And one more flyover in, which is coming up at INR600 crore, I think, yes.
Ketan Jain
And what about Adani BOT project what will be that size EPC?
K. Jalandhar Reddy
Yeah, Adani BOT, you know that I think INR3,400 crores is the estimated cost with Agra, Gwalior.
Ketan Jain
Agra, Gwalior, correct. And lastly on the Karnanaka and Telangana, Sir?
K. Jalandhar Reddy
Karnatka and Telangana, Karnataka, I think there are two projects only of size around INR1,600 crore and one is about INR1,800 crores. The two projects are there in the state government side and Karnataka — that is Karnata. And Telangana also, there had been certain bits which have now floating. I think it is the pipeline. It’s not yet announced around INR1,900 crore, one flyover is coming up and INR900 crore, one of the flyover is coming up. Those also areas also we are focusing now.
Ketan Jain
Understood. I’m sorry, just last sir, you also spoke about Rajasthan irrigation, any size on those things, what type of projects?
K. Venkatram Rao
Actually, yeah, they have started from INR500 crore, but even INR5,000 crore project is also there.
Ketan Jain
INR500 crore to INR5,000.
K. Venkatram Rao
Quite big also there. INR500 crore is only one project, but rest of all INR1,900 crore and other projects are about, say, INR3,000 crores like that. INR1,000 crore INR3,000, even INR5,000 crore is also there in that.
Ketan Jain
Understood. Okay. I’ll get back in the queue sir. Thank you.
K. Venkatram Rao
Yes.
Operator
Thank you. A reminder to all participants to please restrict yourself to only two questions. I repeat, please restrict yourself to only two questions. We have our next question from the line of Shravan Shah from Dolat Capital. Please go ahead.
Shravan Shah
Good. Yeah, sir. Thank you, sir. Are you able to hear me now clearly?
Operator
Yes, sir.
Shravan Shah
Hi, sir. Yeah. Sir, most of the questions have been answered. Just a couple of things. So total size of irrigation in terms of the opportunity in MP and Rajasthan would be how much?
K. Venkatram Rao
MP — MP not yet come sir. Actually that we went to the department and we have collected some data that is not yet announced actually. In pipeline there that means they are signing for ministry approval and all that. So those are about, say, INR25,000 crore worth of contracts in different four, five projects in the number. And Rajasthan, as I mentioned that it is irrigation projects, HAM model there coming up. So they are also you know, varying from INR500 crores to INR5,000 crore, it is there, almost six projects are there.
Shravan Shah
So total would be INR25,000 crore INR30,000-odd crores for the size?
K. Venkatram Rao
Yeah, roughly, sir, roughly. Yes, sir.
Shravan Shah
Okay. And then in terms of the — for HAM, the equity requirement from us, let’s say, if we win INR3,000 crores, how would it would be in terms of broadly mill up. For normal road, we have a 40/60 EPC 40. So here how it would be? And in terms of the equity requirement, let’s say, if it is a INR1,000 crore project for simplicity, how much equity we will be needing?
K. Venkatram Rao
Sir, actually equity concerned you HAM modeled around 12% to 15% could be the equity of the project size. So definitely, I think we are now focusing about say INR5,000 crores to INR3,000 crore — INR2,000 crore to INR5,000 crore projects. So maybe it depends on the project size only. Right now, it is quite difficult to say what will be the requirement, but I think we are well geared up. We have enough cash inflow. Once we get paid from that irrigation department also, we were through with that problem.
Shravan Shah
So for Rajasthan irrigation HAM, I’m asking, sir, there also the 12% to 15% kind of equity is needed and not the road I’m asking?
K. Venkatram Rao
Rajasthan only needed, sir. It is not in MP and all it is coming in EPC model.
Shravan Shah
Okay. And then in terms of the irrigation, obviously, you have explained, but do we see that any kind of a payment, obviously, INR60 crores we have received in January, any more likely to come in Jan — by March or maybe, let’s say by June?
K. Venkatram Rao
Yes, sir. We are focusing more likely to come up from these.
Shravan Shah
Okay, okay. And let’s say if we get a INR10,000 odd crore in order inflow, so I’m assuming that INR3,400 crore is from Adani toll and maybe Patel MSRD city project there also would be close to INR2,000 crore INR2,500 odd crore. So both these put together would be close to INR6,000 odd crores. So maybe only just of INR4,000 crore we will be needing from other things. So there, let’s say, if we get it by, let’s say, by June for — and from July to March, how much more than we will be looking at or we will — then we’ll stop for some time and then we’ll look at? And also in these projects will — in terms of the margin level that at least we will be maintaining 15.5% to 16% odd percent 15% to 16% margin will be there even if it is a subcontracted?
K. Venkatram Rao
Actually now it is all the predictions only, assumptions only. So we will try our best, but it is more better to take between 14% and 13%. But we will try our best to get delivered because it’s all upcoming projects and we do not know what sort of strategies bidders are going to adapt and the designs which we are also taking up. So right now, we will take it granted like that, sir.
Shravan Shah
Okay. And then individually, when we are talking that we can also bid the project, so there only we are looking at INR2,000 odd crore or less than that project, only we can bid on a standalone basis?
K. Venkatram Rao
I didn’t get the question, sir.
Shravan Shah
I’m saying when we are saying that we can also bid the BOT toll projects on standalone basis, there we are looking at only INR2,000 or less than that kind of a size, but are the projects are there or less than INR2,000 crore BOT toll?
K. Jalandhar Reddy
Actually, sir, right now, generally you know, wherever it’s very lucrative, I would like to think about it. As of now, I haven’t seen any bid which are a bit of lucrative like of — Agra Gwalior definitely — it is out of my budget, so I’m given a thought for that. But we would like to see some upcoming projects which they are now considering. Mostly the — if I get any idea on that the traffic inflows are good and all that, then I’ll take my views on it, sir. As of now, I think any bid which have been selling — have selected not such good ones actually.
Shravan Shah
Okay. And lastly, the MDO one, so in terms of the size, let’s say, from the EPC revenue perspective, how much that would be? And do we also need to put in equity if how much equity we would be needing?
K. Jalandhar Reddy
Where sir.
Shravan Shah
MDO mining project, which you have mentioned.
K. Jalandhar Reddy
Actually, sir, mining concern, it is a main capex only that happens. So yeah, it depends on the size of the project and depends on the demand what they make in the project actually. Right now, what we have placed around 200 to 300 Volvos are required. So we have around 200 Volvos. So we are 100 Volvos, we may need to buy if that project comes up. Recently we could see roll you a lot, which I’m talking about.
Shravan Shah
So in terms of the EPC or size, how much it would be if we, let’s say if we win this which we have bidded, so will it be INR1,000 crore INR2,000 crore and it will be a much bigger project?
K. Jalandhar Reddy
That’s all, sir, INR1,200 crores only, yes.
Shravan Shah
Okay, okay. And the recent two projects that we have won that we will be getting or starting the execution by March and the last two projects that we have received, INR430 odd crore?
K. Jalandhar Reddy
ECCs, yes, they can be started. But you know, and all it is going to take time. The financial closer time minimum itself is there and before a two months is there. So almost eight months’ time it will go away. And even the land acquisition if it is not there again there will be some issues. A little bit delays we are expecting about seven to eight months from the HAM model or BOT toll also for that matter.
Shravan Shah
Got it. Got it. And so broadly when we say between FY ’25 or let’s say FY ’26, INR3,500 crores to INR4,000 odd crore revenue that we will be doing, but if we get the INR10,000-odd crores or kind of inflow by June, for FY ’27, then we should be having a INR4,700 crore-plus kind of revenue that one can look at?
K. Jalandhar Reddy
Yeah. If it is happening really.
Shravan Shah
Okay. Okay. Thank you and all the best, sir.
K. Jalandhar Reddy
Yes, sir.
Operator
Thank you. A reminder to all participants to restrict yourself to two questions only. The next question is from the line of Vasudev from Nuvama Wealth. Please go ahead.
Vasudev Ganatra
Yeah, thank you for the opportunity. So sir, first question is, if you can give what is the progress on the pipeline and the irrigation projects and also like how much revenue have you recognized in these segments in Q3 and how much we expect in Q4 and FY ’26?
K. Jalandhar Reddy
Venkat, go ahead with this.
Operator
Sir, the management line has dropped. I’ll reconnect them. Just give me a moment. [Technical issue] Ladies and gentlemen, thank you for patiently waiting. We have the management back with us. Over to you, sir.
K. Jalandhar Reddy
Yeah. Hello. Hello.
Vasudev Ganatra
Yes, sir. Sir, my question was our progress on the pipeline and the irrigation projects and revenue that we have recognized in Q3 and we are expecting in Q4 and FY ’26?
K. Venkatram Rao
So for this quarter actually, we did revenue of around INR112 crores actually in that is around 16% actually in — from irrigation. And for nine months, it is around INR370 crores, that is around 15.7%. So we expect that around same INR100 crores we will do in the next quarter also because almost all the projects irrigation is completed. Only this our pipeline project will — that will start contributing in this quarter. And other two irrigation recently what we received in the January, definitely they will start contributing somewhere from the next year Q2 — Q2 onwards only.
Vasudev Ganatra
Okay. Okay, sure, sir. And sir, just a couple of data points. What would be our standalone debt, cash and the capex guidance again like what we did in Q3 and how much are we expecting in Q4 and FY ’26?
K. Venkatram Rao
Yeah. Standalone debt is around INR27 crores and standalone cash is around INR19 crores, so consolidated debt is INR1,486 crores and consolidated cash is INR87 crores.
Vasudev Ganatra
Okay. Sir, one —
K. Venkatram Rao
Nine months capex is around INR20 crores. So — and we expect that definitely based on our existing order book, definitely we may not require the capex much. But we — as we are targeting to receive INR8,000 crore to INR10,000 crores of the order book in the next three to four months. So based on receipt of the LOA and based on our mobilization, so definitely we have to rework actually what is the capex is going to come in the next year.
Vasudev Ganatra
Okay. Sure, sir. That’s it from my side. Thank you.
K. Venkatram Rao
Thank you.
Operator
Thank you. A reminder, please restrict yourself to only two questions. The next question is from the line of Saket Kapoor from Kapoor & Co. Please go ahead.
Saket Kapoor
Yeah. Namaskar, sir, and thank you for the opportunity. Hope I’m audible, sir.
K. Venkatram Rao
Yeah, yes, it’s audible. Yeah, sir. Carry on.
Saket Kapoor
Sir, sir, thank you for a very descriptive analysis of the number and the business environment. But when we — when we investors, analyze the current state of affair for EPC players across the board, there are pain points in terms of receivables. There are pain point in terms of visibility and even sir, just two, three participants earlier, you were clarifying or giving answer in terms of speaking to the PMO and getting further understanding on how the visibility and the execution cycle will — will get back to its original proportion. So can you give — if we invested and analyst the thought process as being how these nine months have been for EPC in general for the country and what are the key bottlenecks currently being faced, whether it is the Jal-Jevan scheme whether — whether it has been told by you that the visibility is not there. So just if you could paint the picture, you people are in the business for a very, very long time so just a few more color on it would be would suffice, sir?
K. Jalandhar Reddy
Actually, Venkat, you go on with this.
K. Venkatram Rao
Sir, definitely, if you see what your question, it is very — it is very content. So what we will say is that definitely — you have seen that almost last almost two years actually. They are not much awarding is there and whatever the awarding is there, that is also very, very aggressive. If you see the EPC projects, they are getting going on minus 40% like that. And as far as even HAM is there, that is also going between minus 25% to minus 30%. So if we have bidded some of the project, there also we are somewhere we are always in a — somewhere H2, H3 level only. We could not be able to get that level. So these are really and we really do not understand actually how these things are going, but this is a market that’s why it is just last opportunity to play.
If you see that almost last two years, it’s not much award has come to the listed players. So lot of unlisted players have come in this sector actually. And NHA also did they downsize the project size. They are project size of between INR7,600 crores to INR700 crores are coming, not a big project. So due to this, what has happened that qualification lot of small players are coming and they are quoting aggressively. And this has to complete it with their poor quality and even delay in-construction. So due to this reason actually, as you know, the last one month back PMO has reviewed that and again, we are expecting that again this — they will increase the other side, because what is happening if we are getting any project of INR600 crores to INR700 crores and we are getting project like somewhere INR2,500 crores.
If we are going project INR2,500 crores, definitely we can be able to well do the good work actually. And because almost efforts will be the same only. So that’s why we expect that now NHA will again actually they will accumulated all the small, small projects and make as a big one. So really it will help to the industry and help to the company like us. So these — these are the painting points are there in our industry and we are definitely in a different, different forum actually through our NHBF or through whatever the discussion we are having with NHA, we are always telling that actually.
And as far as BOT toll projects are there, so basically what is happening as we are the EPC company, company is most driven through the revenue — toll revenue. So we may not have that expertise in expecting that. Because as far as consumption is concerned, definitely if any engineering is requirement, we are there. But as-is when toll revenue is there, that we cannot expect, we cannot predict. If we have to predict toll revenue. So that is not our cup of. But even then we have to bid actually. So that’s why these are the pain points actually. And obviously we are telling to our different — to our different authorities. So we expect that now all these things will be to the shape and we again regaining in the industry.
Saket Kapoor
Sir, sorry, sir, you mentioned about minus 40% and minus 23% and the numerical number is about the size of the projects that have been awarded or what was you referring to that, sir?
K. Venkatram Rao
That percent is what suppose INR700 crores project are there. So minus INR40 crores is coming. That is the hand project. What would be answer. Code by the — you can say the winning bidder will be around minus 35% to 40%.
Saket Kapoor
Okay. So then the projects will not be profitable and those will not see the day of light going ahead?
K. Jalandhar Reddy
Yeah, that’s why it is going to the poor consumption quality and delay of the project. So that’s why it is happening.
Saket Kapoor
Okay, but then they, they, they, they are getting qualified, sir, but if they are quoting below and these, these will be serious issues for to the nation, sir, because these infrastructure are for public?
K. Venkatram Rao
But sir, as of now, NHAI bidding criteria is L1 only. There is no other criteria other than L1. So they are following that criteria. So until there is some sensible bidding or they will change some bidding criteria like the — until that it will be the same.
Saket Kapoor
Okay. And we have highlighted this to the authorities that these are the anomalies or the misproportion done by these — these players. We have already highlighted these aspects?
K. Venkatram Rao
Definitely in different forum, we are already highlighting actually.
Saket Kapoor
Okay. And last second point is, sir, regarding the issuance or the receivable part, sir. Are we seeing there is also there any limitation of fund crunch from the in terms of releasing the payments or the payment terms are in order as per the award — order award and the rules?
K. Venkatram Rao
So sir, sir, as far as NHAI is concerned, definitely, NHAI is good master. So we are not seeing any delay as far as NHAI is concerned, but definitely receivable from the state government authorities that is based on their own commitment, based on their fund position of the respective states. So there is really challenges there. But as far as NHAI, North is there, it is a — they are good pre-master.
Saket Kapoor
Okay. And last point on this, sir, INR10,000 crore order booking, sir, which you mentioned that you are anticipating. So what — what are we building in terms of this INR10,000 crore gardening of orders? Yeah, I am joining that you sir. Actually, it was an extension only since I will not get an opportunity. So please allow me just to complete, please. Thank you.
K. Venkatram Rao
Okay. On this question, sir, again, sir, please.
Saket Kapoor
Sir, what gives us the — gives us the visibility of this INR10,000 crore order booking which we are eyeing within three to four months order book we will create and — and again, what kind of margins will — are we looking to close these orders with and the execution period, if you could just give some more color to it, sir? And just to add to it also, sir, I joined the queue, INR1,400 crores net debt is on account of the receivable dues are longer than the time limits, also give that money, the debtor’s days are much higher than what the normal the cycle is, how much proportion do you mentioned that all? That’s all from my side. Thank you.
K. Venkatram Rao
Sir, as far as order book is concerned, definitely in our call, sir, I explained actually how we are targeting between this INR8,000 crores to INR10,000 crores order book that is definitely from the different sector like Rajasthan irrigation and some project in Madhya Pradesh irrigation and some MSRDC project and some project in Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka. So all this put together actually we are targeting something INR8,000 crores to INR10,000 crores and one of the project with this Agla bid also. So if we accumulate to we are really seeing that there is a visual that we will get actually between INR8,000 crores to INR10,000 crores of order book in the next two, three to four months.
So as well as profitability is concerned, definitely actually we have to work-out actually which sector we are getting. If it is irrigation, definitely expect that there will be good margins will be there. So we have to really see the — in which sectors we are getting this order book. On that basis, only we can comment actually on that our profitability. So as far as receivables are there, the INR1,200 crores receivables are there. Out of that around INR577 crores receivables — almost INR600 crores receivable from the irrigation department and around INR590 crores receivables from our HAM project.
So HAM project receivables is based on our fund position in the parent company, we will go into draw actually because what has happened is last quarter we have the sufficient cash because a lot of the cash has come from the claims. So we utilize that cash actually in this year. So that’s why debtors has not been — as far as HAM debtors is concerned, that is a steady growth, but now we expect that now the company required to cash to execute the work-in this Q4. So definitely there will be some disbursement in the SPV and go will take the debt actually in SPV level.
Saket Kapoor
Thank you, sir.
K. Venkatram Rao
Thank you.
Operator
Thank you. We have our next question from the line of Bhavin from Anand Rathi Institutional Equities. Please go ahead.
Bhavin Soni
Yes, sir. So just as a — can you just help me with breakup of the debtors or like what are the outside debtors? What are the HAM SPV debtors? Can you just hit me with that number?
K. Venkatram Rao
Sir, just now the HAM debtors will be around INR590 crores actually.
Bhavin Soni
Okay.
K. Venkatram Rao
And irrigation debtors is INR600 crores.
Bhavin Soni
Okay, sir. Sir about the — if you can help me with the revenue breakup. So in this quarter, what is the revenue come from the SPV HAM from the EPC project, road projects and from the irrigation. So can you just help me with that break up?
K. Venkatram Rao
Yeah. HAM. Actually, HAM contributed almost 60% actually in this quarter and our irrigation is around 16% and our road EPC is 23%.
Bhavin Soni
Okay, sir. Okay. Yeah, sir. Thanks. That’s it from my side.
K. Venkatram Rao
Yeah, thank you.
Operator
Thank. We have our next question from the line of Parth from JM Financials. Please go ahead.
Parth Thakkar
Hi, thank you for the opportunity. Sir, I just wanted to ask that there was a sharp decline in the employee expenses. So would this be the run rate going forward or will it comes back to previous levels?
K. Venkatram Rao
And actually employee this will actually — because what is happening in last quarter actually there was some variable pay payment to the — our management actually. So that’s why it was more. But around what are the — right now around INR40 crores to INR45 crores, that will be the employee benefit will be the continued will be there.
Parth Thakkar
Okay. Thank you. And are we still targeting to recover INR600 crores from the Telangana government for the irrigation?
K. Venkatram Rao
Definitely actually sir told that we are rigorously following with the government actually to get this money.
Parth Thakkar
And also last question, sir, what would be our pipeline project revenue for FY ’25 and FY ’26?
K. Venkatram Rao
For ’25, ’26 maybe actually we will exclude around maybe around INR300 crores to INR400 crores will be there actually in FY ’26 and ’27.
Parth Thakkar
Okay. Okay. Thank you, sir. Those are my questions.
K. Venkatram Rao
Thank you.
Operator
Thank you. Ladies and gentlemen, that would be the last question for today. And I now hand the conference over to the management for closing comments. Over to you, sir.
K. Venkatram Rao
Thank you. Thank you all for joining us on this call today. Please reach out to our Investor Relations consultant strategic growth advisor or ask us directly, should you have any further query. We can now close the call. Thank you.
Operator
[Operator Closing Remarks].