Markolines Pavement Technologies Ltd (NSE: MTCL) Q4 2025 Earnings Call dated May. 20, 2025
Corporate Participants:
Vinay Pandit — Chief Executive Officer
Vijay Oswal — Founder and Chief Financial Officer
Analysts:
Raghav Agarwal — Analyst
Nitin Verma — Analyst
Unidentified Participant
Abhishek Agarwal — Analyst
Presentation:
Vinay Pandit — Chief Executive Officer
Ladies and gentlemen, I welcome you all to the H2 and FY25 Post- Earnings Conference Call of Markolines Pavement Technologies Limited. Today on the call from the management team we have with us Mr. Vijay Oswal, Founder and Chief Financial Officer.
As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risk and uncertainties. Also a reminder that this call is being recorded.
I would now request the management to run us through the presentation for the period ended 31 March, 2025, the growth plan and vision for the coming year, post which we will open the floor for Q&A.
Over to you, sir.
Vijay Oswal — Founder and Chief Financial Officer
Yes. Good morning, everybody. Thank you very much for being with us on this call to understand what we do. And though I can’t see the list, but I am sure I must have spoken to or met few of you, and those who are meeting or attending this call for the first time, I’m Vijay Oswal, as mentioned by Vinay. I am the Founding Member and the CFO of this company. And I welcome you all.
Just to begin with, as most of you would know, Markolines Pavement Technologies Limited, we are one of the leading highway maintenance company and basically operate into our three major verticals or the core services we can call as highway maintenance, specialty maintenance services, specialized construction services. We are the first company to be listed on BSE, who is in the infra segment, providing the services to the various companies or the infrastructure in India.
We began our journey in 2002 with a single line product of road marking, and that is where our name come from as Markoline. But as we went on adding the portfolio, then we changed our name to Markolines. And from a single line product, here we are today, actually, one of the leading maintenance services provider in India, the leaders in the organized sector.
We are one of the preferred vendor in the, what do you say, the clients who are asset owners in India. Actually the highway infrastructure scenario has been changing in the infra industry very fast, from BOT in 2009 to today, we are at TOT. And because of the TOT, what has happened is a lot of international players who has come in. And because of that, the outsourcing — because first of all, there is a huge focus on infrastructure, because if you want to be a developed nation by 2047, which is the current vision of the current government, the infrastructure has to be developed and that is how the infrastructure is a growing sector. Because of the growing sector, there is a lot of allocation happening and allocation — at the same time, government is looking at monetizing by privatizing the road sector assets.
They have done almost INR40,000 crores to INR50,000 crores worth assets have been monetized up till now and they have huge plans to monetize further. But with this privatization, road being a wear and tear item in nature, the maintenance is an inherent part of this particular sector. And that is where there is a huge potential coming in, always recurring potential as well as — since we are growing the infrastructure network at a very fast pace, we are probably at, upfront on — the per day average also has improved from very low in the prior to 2014 to today from, if you look at 22 kilometers to 31 kilometers as of now as per the MoRTH data. And privatization has also since the TOT packages are larger in size, so mostly lot of foreign funds who are acquiring the assets because of the lucrative return on investment, the outsourcing is very obvious and it gives a more chance for people like us to service them by way of providing these services to them.
At the same time, as we go ahead, we have always been adding the newer technologies, then the various business segment to grow in terms of size, numbers and that is how — and we are also one of the leading companies or the first companies who has brought a lot of newer technologies to India in highway maintenance. We are the people who has re-established micro-surfacing in 2015 from no volumes or hardly any volumes done to today huge number of volumes done. We are the leading micro-surfacing service provider and we have done the highest micro-surfacing in the country.
Then we are the people who introduced fiber-based micro-surfacing, then we are the people who have introduced the, what do you say, the recycling that is full-depth reclamation in India, CIPR in India. And two years back we have entered into tunneling because as we are growing, the maintenance projects will always be smaller in size. To grow in numbers, we’ve added this vertical, which gives the largest sized contract and also better return or the profitability for us, which we have been talking about that slowly, slowly we want to increase the profitability for our company, which has started visible from this year. I’m sure you must have gone through results. We reached there also and discuss about it. So, we are one of the leading companies providing services and this year’s result has given very good performance.
Now as far as the leadership team is concerned, it is myself and Mr. Sanjay Patil, our Chairman, Managing Director, who basically lead the company. He looks after all the business development, execution. I look after decision and other two Directors, we have Mr. Panchal as well as Mr. Nagarkar, who looks after the various other functions of this thing.
Now, as management, I would like to also inform you that we have recently applied for the migration in the month of March. Our application has been submitted to the BSE. We have complied with all their requirements and documentation and we are awaiting their response or the approval. We are expecting it very soon. And as soon as we receive the approval, we shall move to the BSE Main Board.
Apart from that, there is one more major corporate action that we have announced, that is the amalgamation. As Markolines, we had two divisions. One was into the typical civil contracting and other was providing services. By after doing the various deliberations, we came to conclusion that if we merge these two portfolios, we can have the consolidation, optimization and the size consolidation for Markolines in the interest of and better size or the representation in the market. So, that is how we have announced the merger of Markoline Infra with Markoline Pavement. And that is also been filed. We are in the process of completing the documentation as per the BSE and SEBI requirements. And we shall merge these companies once the all formalities and required approvals are in place, as and when we go ahead on this particular journey. And this will definitely give better results in terms of the capital market also.
Now coming to the — if you look at our — we are providing services across pan India, except Northeast India, where we have recently began. And now this year onwards, we are also looking at focusing on Northeast India because the maintenance will start there also soon because the road network is being developed recently. And as far as our clients are concerned, we cater to practically all the asset owners in India. All major multinational funds who own the asset in India are our clients. And including few of the government and semi-government organizations like MMRDA, MSIDC, PWD, BMC, NMMC like that. And we carry a very good track record, Markolines, wherever we are standing today, we are standing out of our credibility and credentials, which we have earned over last 20 years. We are the market leaders in the organized sectors with a proven track record, excellent and experienced team. And that is what has kept us alive and growing, of course, with the support of shareholders.
Now coming to the industry. As I have already said that industry is growing at a very fast pace because that is the need, because the infrastructure is one of the major contributors to the economy. We have been increasing — growing at a very fast pace. As I have already said that our road length have increased by 2.5 times from 2014 where we were. Then the per day new road construction also has increased. Investment monetization has gone ahead. There are a lot of new projects that have been announced and there is huge allocation by government.
There are various economic corridors, then the inter-corridors, access control highways, expressways, national corridors. There are a lot of projects are coming in across India, wherein in next 10 years, 20 years, we will be connected from any point of India to any point in India. And the projects which are coming is going to be a mix of this thing, of bundles, like right from EPC to HAM to BOT or TOT. Then these are the various list of the projects which are already included in this presentation, which you can have a look at, at your — whenever you feel okay.
Now coming to the financials. As of today, we have an order book of INR357 crores and post that also we have added about or close to INR50 crores worth order as we are talking. And at the same time, we have about INR500 plus crores of pipeline, which we are always generally keep working on. As far as the margins, if you look at right from the EBITDA, EBIT or PBT or the PAT margins, all of them are on the upward trend. I have been saying in my various presentations in the earlier this year or rather last year that the FY ’25 where we had put in focus onto the bottom line, wherein we could optimize and consolidate our operational efficiency and the results are seen in this financials.
Our net PAT margins have increased by about 381 basis point, and of course, the contribution as we have been saying that by adding the specialized construction which will give us slowly, slowly increased bottom line and the results are now visible after two years of specialized construction. So as far as the P&L is concerned, we have already displayed now revenue, though there is a drop in revenue from INR350 crores to INR307 crores, it is mainly pertaining to the — we have experienced the wettest monsoon last year because of which our H1 had a bad hit in terms of performance, but our operational team could manage well and do quite good in terms of H2. And out of that also if I have to really tell you, in Q3 and Q4 if I have to compare, the 70% of the H2 turnover has come from Q4. And that is the only reason that you would also see the increase in the trade receivables, one of the major reasons for that because almost INR150 plus crores of work have been done in Q4.
So if you look at the financial highlights, as I said turnover dropped, but we have given the better results in terms of our EBITDA, PAT. PAT has grown from INR17.3 crores to INR22.56 crores rupees in this year. And so if you see all our ratios, they have been improved in terms of the profitability. And that has all obviously shown on the EPS, which has increased from INR9 to INR10 this year, which is about 11% hike year-on-year over last year.
Yeah. Next. So this is in nutshell from our side. Now, we can open the questions. You can write to Mohsin or he could moderate. Mohsin, you can take the questions one by one.
Questions and Answers:
Operator
[Operator Instructions] Sir, we’ll take the first question from Raghav Agarwal. Please go ahead.
Raghav Agarwal
Hi. Thank you, sir. I hope I’m audible.
Vijay Oswal
Yes, Raghav. You are.
Raghav Agarwal
Congratulations on a good set of numbers, sir. Firstly, sir, I just wanted to understand that if I look at the FY ’25 segmental numbers, the increase in profitability has largely been driven by specialized construction and particularly in H2, the share of specialized construction has also gone up. In the order book too, I see almost 75%, 80% is specialized construction. So, just want to get your viewpoint on are we pivoting more towards specialized construction as opposed to road maintenance or how do we expect split between the two businesses going forward?
Vijay Oswal
Okay. See, the highway maintenance as I said is a recurring activity, which runs in a periodic basis. Like for any particular highway, if we do a major maintenance which is the statutory requirement or the performance requirement when we construct the highways, once in — approximately once in five years to seven years. So, typically the maintenance cost would be, on a very thumb rule, if I take it will be about INR1 crores of rupees per kilometer of the work we do. So the maintenance contract sizes are generally would vary from about INR40 crores to INR60 crores or maximum of INR75 crores from particular one client over one stretch of road. So, they will always be in a conservative type of nature. So the percentage of the, what do you say, the major maintenance orders would always be in a varying number because they will keep coming and we will keep consuming the orders, right?
As far as major maintenance orders are concerned, they are large sized orders but their tenure also is longer. It would be from two years to four years. So because of that at any given point of time if you see, probably the major maintenance number would be more. But definitely going forward, if we compare, it would always be the major — the specialized construction number would be more in size because of the project size. And definitely, we will be doing that also.
At the same time, major maintenance which is where we started from is definitely is going to be a part of our portfolio and we intend to be with all these segments. But to increase these sizes, going forward, we slowly — these specialized construction sizes will keep on growing.
Raghav Agarwal
Thank you, sir, for the detailed answer. So, any rough guidance on what the split of the business would look like say, two years, three years from now between the two verticals?
Vijay Oswal
Between the two verticals, if you see, let’s say this year it is, 70%, 30% percentage wise if I could talk in terms of the business done. But going forward, I see we could be about 50%-50% in this particular or maybe in a year’s time from now. And slowly, as I said, the volume would always be bigger into the specialized tunnel. Just to give you an idea, the one tunnel project, which we are working in Maharashtra is to the tune of INR300 crores. So if we get a one project of a larger size in specialized construction, obviously, the percentage would change. But we are hoping that this year we should be close to 50-50.
Raghav Agarwal
Thank you so much, sir. And if I may just squeeze in one last question on the same.
Vijay Oswal
Sure.
Raghav Agarwal
In the margin profiles and the working capital profile, how do the two businesses stack up against each other, sir?
Vijay Oswal
So as far as the margins perspective, as I said, margins are definitely better in the specialized constructions. And working capital wise, if you look at the larger projects would also require more working capital. But if you compare it to the turnover and over the period spread out, percentage wise it will be a bit lesser than the MMR because major maintenance programs, the projects are spread over only six months of project with an average 90-days of billing cycle if I consider. We generally require about 25% of the working capital of the order size.
Raghav Agarwal
Understood. Thank you so much, sir. I’ll get back in the queue.
Operator
Thank you, Raghav. We’ll take the next question from Nitin Verma. Please go ahead.
Vijay Oswal
Yes, Mr. Nitin?
Nitin Verma
Hi. Hi, Vijay. Congratulations on good set of numbers. My question is regarding Markolines Infra merger. I just want to understand the timeline when we are expecting it to get completed. And also what are the — if you could elaborate some numbers of Markolines Infra, which we had this year, I mean, FY ’25?
Vijay Oswal
Yeah. Sure. So, we have announced the merger in the April 22 Board Meeting. We have done a first set of submission to the BSE. Now, there are certain queries which are running back and forth and we will comply to every query. And thereafter, it will be subject to the — it is to be approved by the BSE, then it is to be approved by the NCLT. So approximately, we are expecting about six months’ to nine months’ of timeframe for completing the merger. We would be always hoping for the shortest possible time, but since it is subject to the approvals from the authorities, that is the timeline we are looking at. So before this year end, we should be the merged entity. As far as the tentative — why tentative? I can give. The numbers of the Markolines Infra, we did a revenue of about INR133 crores there with a bottom line of INR12.29 crores as PAT. Basically, this company is purely into the providing services. As far as percentage is concerned, it is about 11.64% that is the PAT percentage to the turnover.
Nitin Verma
Okay. And what is the outlook after merger that you are looking to achieve?
Vijay Oswal
So basically, these are the two group companies which have been operating and separately. Basically, the skill sets required are separately. But with this, we can have the consolidation in terms of the — one second. Because the services — as a service provided in Markolines Infra, generally, we are always available on the road. So, we will have good information, real-time information on to the projects we are handling. When it will come to the bidding, we will have better understanding of the roads or the tenders. So it will also increase our chances of winning the particular tenders and also we will get the edge over when we are already operating those roads.
Nitin Verma
Okay. And my last question. If possible could you please do the consolidated projection for next year or this year what we are looking at?
Vijay Oswal
Sorry, sorry. I did not get.
Nitin Verma
I mean, the numbers, the consolidated numbers of Infra and when the merger will be completed, the consolidated numbers that we are looking to achieve in this year end and by next year end?
Vijay Oswal
We can do that, but I don’t know whether we can publish it or not. We will have to check the provisions. If permitted, then definitely we will publish that also. We can.
Nitin Verma
Okay. Okay. Okay. Thank you. That was all from my side.
Vijay Oswal
Thank you very much.
Operator
Thank you, Nitin. Sir, we will take a question from the chat, which is a similar question that after merger, what will be the total order book and total revenue?
Vijay Oswal
So, see, if I just look at the total order book, what we are looking at, generally the Markolines Infra contracts, they are differing in nature. Basically, they run on monthly billing basis because they are services. We do approximately INR10 crores to INR11 crores of billing per month. So now even if I consider INR133 crores, it would be about — so this is, that will only take us to beyond INR400 crores. And we are — as Pavement also, we are looking at good number or the good increase this year also because we are eyeing on a few large sized contracts, which we should be in a position to close very soon. Monsoon is the time generally these contracts are discussed or bided and concluded for so that we can start the work post-monsoon. So, we are looking at a good growth this year also.
Operator
Okay, sir. This question was from Prakash B [Phonetic]. He further asked that can you throw some light on the transferor company, their revenue, PAT, etc. What is the promoter holding in the transferor company and mention their few major clients?
Vijay Oswal
So, I think I just explained about the — probably this question was, must have been before I explained about Markolines Infra numbers. As I said, still I repeat, as far as Markolines Infra is concerned, INR133 crores is the top line, INR12.29 crores is the PAT that we have given this year. And as far as clients are concerned, now this is a very limited — the entire infra industry is governed by very limited number of asset owners.
Of course, NHI being the largest asset owner. But otherwise in the private sector, the entire assets are owned by very — at the most, maximum 20 number of asset owners. And out of that, majority is now held by the international funds like I Squared Capital, Brookfield, Macquarie, Actis. And they hold, probably in the private sector, they are very hungry on acquiring the assets. They hold about 70% of them. Five, seven people of them. So if you consider the clients, they would always be similar and same in both the companies. Only thing is, in Pavement the listed entity, we keep changing the projects because it is recurring activity once in five years. Whereas, in Markolines Infra, if the project is acquired, generally, we continue with the project for years together. The oldest project together today is, I’m operating close to 16 years, one of the oldest projects in Infra.
Operator
Thank you. Thank you, sir. I think Mr. Prakash has few other questions. I will request Mr. Prakash to please unmute and ask the questions. Mr. Prakash?
Okay. Since he is not unmuting, I’ll just ask his question. Any roadmap when our company will become a INR1,000 crores company, future ambition of the management?
Vijay Oswal
So, thank you, Prakash for such a good distinct vision, we are also looking at. But as far as this thing, we are also looking that in another three years, four years, we should be crossing the INR1,000 crores mark. And we will put in our best to achieve that mark at the earliest, if we can even pre-pone it by one year, we will be greatly happy with that.
Operator
Thank you, sir. And his last question is that, is Infra same like IRB Infra, I mean business sense, toll collection, also the revenue? Is my understanding correct is what he is asking? Sorry, sir, you are on mute. Vijay sir, you are on mute.
Vijay Oswal
Yeah, yeah. Because my reconnections — connection reset. I lost your question. Can you just repeat the question? Sorry.
Operator
Sure, sir. Prakash B is asking, is Infra same like IRB Infra, mean business sense, toll collection, as also the revenue? Is my understanding correct is what he is asking.
Vijay Oswal
Okay. So, partly yes and partly no, because IRB is also the asset owner and they do lot of activities in-house. So as far as the — let’s say, road construction division of IRB is concerned, it is different. We are not — as of now, we are not into the road construction or as asset owners who take the bid, construct the road and recover money by way of the tolls. As of now, we are providing the services for the maintenance of the once road, once completed as Markolines Pavement. And in Markolines Infra, we provide them the services like operating their toll projects, surveillance of the roads, providing the emergency services on the highways, then the routine maintenance that also involves right from cleaning to the horticulture services. So in a way, we could be similar to the one of the section or part of the IRB.
Operator
Thank you, sir. We will take the next question from Abhishek Agarwal. Please go ahead.
Vijay Oswal
Hi, Abhishek.
Operator
Abhishek? Okay. We will move on to Raghav Agarwal. Please go ahead.
Raghav Agarwal
Sir, just wanted to check on the shareholding pattern of Markolines Infra as of today?
Vijay Oswal
So, Markolines Infra shareholding pattern. One second. I’ll just give. Infra, can I just — so as of now, if you could just — I do not have the exact numbers. If you could just give me a moment, I will pull the data. But we are — currently, we are about 58% in Markolines Pavement and post merger, we should be about 60%, 61%.
Raghav Agarwal
Right, sir. So, that’s no worries. Can look at it later? But largely owned by promoters, right?
Vijay Oswal
Yeah. Yeah. Similar, similar shareholding in both.
Raghav Agarwal
And lastly, sir, on the order winning rates, and this might be just a blip, but in the last H2 FY ’25, the order execution rate has been faster than the order winning rate. So, do we expect that to reverse? And like, what is the projected order intake we expect for the next one to two years?
Vijay Oswal
So Raghav, that’s what I explained to you before also in one of the questions that the major maintenance activities or the orders keep coming and rotating. So as far as the order book, it’s not a very static, what do you say, the number. If you have just seen our announcement, I think, just to let you know, we have won another — today only, we have got a confirmation for about INR25 crores, close to INR25 crores of an order. And in this last one, one and a half month, we have already closed the orders worth INR50 plus crores. So, they will keep moving up and down. So it is not — generally, we would have about INR300 crores to INR400 crores of orders in hand.
Raghav Agarwal
Understood, sir. Thank you.
Operator
Thank you. Chitresh Lunawat [Phonetic] has a question. Chitresh, if you can unmute yourself and ask?
Unidentified Participant
Hello, sir. Thank you for taking the con call. Thank you, Kaptify team. My question was for Markolines Infra. At what valuation have we raised funds from outside? Like I think there was a fund raise happening for four months, five months. So at what valuation was the fund raise happened?
Vijay Oswal
INR100 crores. I suppose it was INR100 crores.
Unidentified Participant
So that was the only fund raise which happened or there has been multiple fund raises?
Vijay Oswal
No, no, no. That is the only fund raise.
Unidentified Participant
Okay. And currently when we are amalgamating, how much is the value we are giving?
Vijay Oswal
About INR263 crores.
Unidentified Participant
Okay. So people, the investors who invested before six months, so they have got 2.5 times money?
Vijay Oswal
Yeah. Because the results were also better, the improvement in the performance.
Unidentified Participant
Okay, okay. And sir, anything on the ILFS engineering thing like which we were planning?
Vijay Oswal
Not really concluded. We are still hoping for — the NCLT has not yet cleared anything. So, there is no update as such on that. It is still in the process.
Unidentified Participant
Sure. Thank you, sir. And regarding warrants, I just wanted to know like what percentage of money have you got?
Vijay Oswal
So, we have received 25% of the warrants. They were issued with a timeline of 18 months.
Unidentified Participant
So out of the remaining, have anyone paid or like…?
Vijay Oswal
Not yet. Not yet. We are hoping to close it this. Of course, they will have to close this financial year.
Unidentified Participant
Okay. Okay, sir. Thank you. Thank you, sir.
Operator
Thank you, Chitresh. Abhishek Agarwal, please unmute and ask.
Abhishek Agarwal
Yeah. Hi. Am I audible?
Operator
Yes, please.
Vijay Oswal
Yes, Abhishek. You are.
Abhishek Agarwal
Yeah. Hi. Thank you for taking my question, sir. So, my question is regarding the consortium that we were bidding for an asset of ILFS, if I’m not wrong. So, what is the update on that? And what is the business with respect to tunneling that we expect?
Vijay Oswal
Okay. So Abhishek, just before this question, I answered that since it has to follow a lot of process because we have gone through the IDC-like process, the NCLT is involved, and there is no progress as of now in terms of the deal or it is still not being approved by the Boards there. It is still at the same stage where it was. Now your second question was in terms of tunneling. What is exactly that you would like to know so that I can explain it in a better way?
Abhishek Agarwal
I want to learn about what is the prospect of our tunneling business if we are not able to take over the company in the NCLT and if we go ahead on our own, what is the kind of momentum or prospect that we see for our tunneling business?
Vijay Oswal
So first of all, our current business is risk-irrespective of the proposed bidding that we have done for the acquisition. Okay. One. Now as far as tunneling business is concerned, as of today, we have two projects, one in Maharashtra and one we have — one we are doing in Jammu-Kashmir. The Maharashtra project cumulatively is about INR300 crores, INR350 crore all put together, will be out of which we have done about INR172 crores or INR180 crores. And on the Jammu-Kashmir project, it is a very long project. We have just began. These are 4.2 kilometers of twin-tube between Jammu and Srinagar.
As far as the progress there is concerned, we have done about 1 kilometer of progress from the tunnel — from one side. As far as business prospects are concerned, the tunneling is one of the very much growing potential because to increase the average speed, the tunneling is a very good solution. And we are doing tunneling across the India and we see a very good prospect in terms of business and adding at least one more project this year. We are hoping for that.
Abhishek Agarwal
Sure, sure. And what kind of projects do we envisage from tunneling, I mean, what size and quantum?
Vijay Oswal
So, tunneling project by and large would minimum would vary from at least INR200 crores to INR400 crores depending upon the size of the tunnel, the length or — that is length.
Abhishek Agarwal
And normally what is our portion? I mean, the quantum that we build or we work on?
Vijay Oswal
Means? I did not get your question, Abhishek?
Abhishek Agarwal
I mean, do we execute all of the projects by ourselves or do we partner with people and what is our quantum then?
Vijay Oswal
So it depends. There are various things like Jammu-Kashmir project, as I said, we have taken in consortium because it is a huge project and different, different skill sets are required. Whereas Maharashtra project we are doing on our own wherein we are working with a subcontracting party there which is working. So it depends upon the project. It would vary from project to project but as such, we have a capacity and capability of doing everything on our own.
Abhishek Agarwal
Sure, sure. That helps. Great. Thank you so much and all the best.
Vijay Oswal
Thank you.
Operator
Thank you, Abhishek. Sir, we will take the question from chat from Soham Pimpale [Phonetic].
Vijay Oswal
Okay.
Operator
It’s, hello, are we using the white topping technology as well?
Vijay Oswal
Sorry, which technology?
Operator
White topping technology. White topping.
Vijay Oswal
White topping technology? As just till now we have not done the white topping, but recently we are looking at few projects and we are bidding for them also.
Operator
Okay, sir. Sir, I had a question regarding the specialized equipment that we have. Are there any plans to add the specialized equipment?
Vijay Oswal
No, not immediately. We have the — as I said that the specialized equipments like the micro-substation pavers and the recyclers that we have, already we have. So they should suffice as of now.
Operator
So, what budget has been allocated?
Vijay Oswal
So this year we are not looking at adding any major of the same investment because we have already acquired few of the whatever was to be acquired last year.
Operator
Okay. Thanks.
Vijay Oswal
So, this year we are not looking at adding any major of this thing. Otherwise the hot mix plants are there always as a requirement if more number of projects comes and as they get older based on the client’s requirement, we keep doing that.
Operator
Okay. Thank you, sir. We will take the question from Sandeep Biyani [Phonetic] from chat. He asks, since major of orders in FY ’25 are completed in Q4, hence receivable cycle increased more than 200 days. What is the average receivable cycle in a normal scenario?
Vijay Oswal
So, generally 90 days to 120 days is what we say. If we average it out over the year, like if you look at — I think last year we were close to 100 days. And now when you see as we are talking, the majority or major portion of the receivable has been received in the past one and a half month. We have already recovered more than INR50 crores, INR60 crores out of the outstandings as of March.
Operator
Okay. Okay, sir. And he asks that do we see any non-recoveries as I guess most of the projects are from government entities?
Vijay Oswal
No, we don’t see — and few of them which we have already said the earlier ones, we are only in the court of law and we have already recovered few and we will be recovering everything.
Operator
Okay. Okay. Okay. Okay, sir. Thank you. [Operator Instructions] We’ll take the question from Abhishek Agarwal. Please go ahead.
Abhishek Agarwal
Thank you again. Just one last question from my end. Sir, what is that one thing or two, three things that we look forward to or that excites us going forward that will catapult us to a different orbit or help us achieve much greater revenues, exponential revenue growth?
Vijay Oswal
Thank you, Abhishek. This is a very — question which is close to our heart or any promoter of the company would be, that is growth. So in infra industry, as you grow, your credentials and experience always count and your eligibility increases. So by completing the projects, whatever we are at hand, we would be eligible for very large size of projects. Up till now, if we were only doing maintenance projects, but since we have completed about close to INR200 plus crores of work in the first tunnel, that tunnel work, now our eligibility is more than the INR500 crores. So, we will be definitely looking forward to bidding for the higher size of projects. So, that will definitely give a rise in terms of revenue and the growth also over next few years. That’s what we are looking at.
Abhishek Agarwal
Sure. Thank you. Thank you so much.
Operator
Thank you, Abhishek. Sir, we’ll take a question from the chat from Nishchay Mehra [Phonetic]. He’s asking, what was the main reason for the drop in the revenue?
Vijay Oswal
Drop in the revenue, basically, as I have already said, the H1, we suffered because of the wettest monsoon, the performance was low and it also continued for an extra time. So, work could start only very late in the Q3 and we could do much, much better work in Q4.
Operator
Okay.
Vijay Oswal
And I think I missed one point. Abhishek had asked what excites us. So, I’m sorry for missing, Abhishek. I just realized you had asked me. One is the growing potential, what is the way we are growing and we see a huge potential. And as far as Markolines is concerned, the credibility that we carry in market, giving us an edge over the competition, the preference or the preferred vendors in terms of this thing and as I have spoken about the size. These are the things that excite us into this particular thing. To be honest, once we had a vision of being an Indian originated MNC, but looking at potential, we feel that it is really the India with the large terrain like what we have there is huge potential in India itself.
Next question?
Operator
Yes, sir. Yes, sir. Nishchay Mehra further asks, what is the execution timeline of the current order book?
Vijay Oswal
So it would vary from a project to project. Generally, the maintenance — major maintenance projects would be completed in six months’ to eight months’ time by and large, unless it is more than INR75 crores, INR80 crores, then that period would go to 12 to 15 months because of the monsoon break. And on the specialized or tunneling projects like work, the timelines would be spread across two years to four years.
Operator
Okay, sir. And he is asking about margins. How are the margins in different verticals? Which vertical has the highest margin?
Vijay Oswal
So specialized construction vertical definitely has higher margin than the major maintenance because as of now, when we are working in major maintenance, we are working in the private industry. So generally, there the payments are prompt, but the margins are thinner. Whereas the specialized construction, they are longer in tenure and wider scope, which also gives us the better profitability.
Operator
Okay, sir. And Nishchay Mehra further asks, what is the cash conversion cycle management sees going forward?
Vijay Oswal
The payment cycle?
Operator
Cash conversion cycle going forward.
Vijay Oswal
So approximately, see — it will, as we see that it will — if we really look at the closing numbers, it will keep varying. But by and large, our cash conversion cycle is about, averagely 90 days. 90 days to 100 days is the general cash conversion cycle.
Operator
Okay, sir. Okay. Sir, we’ll take the next question from Nitin Verma. Please go ahead.
Vijay Oswal
Sure.
Nitin Verma
Hi. The last question is, why is the promoter shareholding decreased?
Vijay Oswal
So sorry, the promoter share percentage has decreased because of one — is because of the addition of the preferential issue that we did in the month of September. So if you look at really the number of shares that the promoters have, there’s hardly any change.
Nitin Verma
Oh, okay. Okay. Thank you.
Operator
Thank you, Nitin. Sir, Nishchay Mehra has another question in chat. He’s asking, what are the margins in number, if you can give?
Vijay Oswal
Number. So one second, let me just have a look. So as far as the — if we look at the grossly, then about, we can say 12% in terms of the — what do you say, major maintenance. But as I said that the turnaround times is faster. And it would be 18% to 20% in the specialized construction. It will vary also from the activity to activity or the billing to billing what we do in a particular period of time, based on the activities that we do. But if there are specific activities which are being completed in a shorter period, even if it is a longer project, it gives better results. But on an average, it would be about, if you have numbers, it would be 12% in terms of the major maintenance and about close to 18% in terms of the specialized construction.
Operator
Okay, sir. Thank you.
Vinay Pandit
So, since that is the last question for the day, would you like to give any closing comment before we end the call?
Vijay Oswal
Okay. Sure. So guys, thank you very much for being with us and wanting to hear about what we do here. As management, I want to definitely tell one thing that we are committed. We are basically the technocrats. We have always believed in business. And we will definitely be — our focus is always going to remain on business and growth. We will keep up to every — try our best to keep up to the commitment of all the stakeholders. And out of this also, if there are any questions, queries, if we have missed out onto anything, you can definitely write back to us and we would be happy to answer it. And looking forward, we are also looking very excited for this particular FY ’26 because a lot of things are going to happen like migration, merger and new business coming in.
That’s all from our side. Thank you very much. Thank you, Vinay, and entire Kaptify team too.
Vinay Pandit
Thank you. Thank you, sir. And thank you to all the participants for joining on the call. And thank you to the management team. This brings us to the end of today’s conference call. Thank you.
Vijay Oswal
Thank you. Thanks a lot.