NCC Limited (NSE: NCC) Q1 2026 Earnings Call dated Aug. 06, 2025
Corporate Participants:
Unidentified Speaker
Neerad Sharma — Head Strategy and Investor Relations
Sanjay Pusarla — Chief Financial Officer
Analysts:
Unidentified Participant
Vaibhav Shah — Analyst
Shravan Shah — Analyst
Mohit Kumar — Analyst
Parikshit Kandpal — Analyst
Prithvi Raj — Analyst
Deepak Poddar — Analyst
Bhavin Modi — Analyst
Vishal Periwal — Analyst
Vasudev Ganatra — Analyst
Lokesh Kashikar — Analyst
Jainam Jain — Analyst
Saket Kapoor — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the NCC Limited Q1 FY26 earnings conference call hosted by JM Financial Institutional Securities Limited. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Vaibhav Shah. Thank you. And over to you sir.
Vaibhav Shah — Analyst
On behalf of JM Financial, I welcome everybody to one QFI 26 earnings conference call of NCC Limited. We have from the management today, Sri RS Raju, Director of Projects, S. Sanjay Pusarla, Executive Vice President, Finance and Accounts and Sri Neeraj Sharma, Head Strategy and Investor Relations. Now I hand over all to the management for your opening remarks and then we can have the Q and A session. Over to you sir.
Neerad Sharma — Head Strategy and Investor Relations
Thank you very much. Weber. Good morning everyone. This is Neerada. At the very outset I thank each of you for taking time to attend this interactive meeting. I have with me my colleagues Mr. R.S. raju, Director Projects and Mr. Sanjay Kusarla, CFO. Yesterday we have declared our audited unaudited financial results for the first quarter of the financial year FY26. Hope you had an opportunity to download and study the results and investors presentation uploaded on our website and shared with the stock exchanges. Before I begin this interactive meeting, I will read a brief disclaimer. You may read the detailed disclaimer in our investors presentation.
The presentation may contain certain forward looking statements concerning NCC’s future business prospects and business profitability which are subject to a number of risks and uncertainties. And the actual results could materially differ from those in such forward looking statements. This interaction is broadly divided into three parts. In the first part, I will briefly talk about the business environment, the prospects for our company. In the second part, CFO will give a brief about the financial performance of the company for the first quarter of the financial year. In the third part we will attempt to answer all your questions and clarifications.
As you are aware, we are sitting at a strong order book of rupees 70,087 crore and in the first quarter of FY26 we have booked orders worth rupees 3,658 crore. If we take into account all the projects back till today this value is Rupees 6719 crore which is about 31% of the lower band of the guidance shared with the state. In the first quarter of FY26 the company has reported a turnover of Rupees 4430 crore add against 4747 crore in the corresponding quarter of the previous year. The EBITDA margin is 9%. On a standalone basis which is in line with our guidance for the current financial year.
For FY26 we are seeing a healthy prospective pipeline of projects of about rupees 2.5 lakh crore. In our buildings and transportation division we continue to see good traction and healthy pipeline of projects. We have an order book of rupees 23,577 crore which is about 34% of our total order book. In buildings and rupees 17,957 crore which is about 26% of our total order book. In the Transportation division In our electrical TND division the order book is rupees 15,737 crore as of end of June which is about 22% of our order book. The order book in the irrigation division is rupees 3863 crore as of in June which is 6% of our order book.
Our water division has an order book of rupees 4215 crore which is about 6% of our total order book. The order book of the mining division is rupees 4733 crore as of end of June which is 7% of our order book. Now I will hand over to CFO with a request to cover the detailed financial performance of the company.
Sanjay Pusarla — Chief Financial Officer
Good morning ladies and gentlemen. This is Sanjay Pursala, CFO of NCC Limited. I am pleased to announce the financial results of Q1 of FY26 of NCC Limited. My announcement will cover order book, revenue, profitability, debt movement and some of the important balance sheet items in the same order. So coming to the order book, our order book you know that it stands at 71,568 crores at the beginning of the year. And we secured orders of 3,658 crores in the first quarter. After eliminating the execution we are standing at an order book of 70,087 crores. And as at the end of June, coming to the revenue first I will cover on the standalone turnover reported in Q1FY26 is 4430 crores against the turnover of 4747 crores in the corresponding quarter of the previous year which is almost like 7% lower than what we reported in the same quarter of the last year.
At consolidated the Turnover reported is 5208 crores as against turnover of 5558 crores in the corresponding quarter of the previous year which is about 6% lower. Coming to profitability at standalone level we achieved EBITDA of 9.02% for Q1 as against 9.33% of the corresponding quarter of the previous year which is in line with the indications given to the market. PBT is 5.44% and PAT is at 4.29% in the current quarter that is ending June 26 has against PPT of 5.63% and PAT of 4.3% of the corresponding quarter of the last year. At consolidated level we achieved an EBITDA of 8.81% and PBT of 5.15% and PAT of 3.69% in the current quarter as against EBITDA of 8.65%, PPT of 5.39% and PAT of 3.78% reported in the last year.
Coming to the debt movement the debt at the beginning of the year stands at 1484 crores and net debt after cash and cash equivalent is 695 crores. At the end of Q1.26 it is standing at 1852 crores and net debt of 1497 crores and at the end of Q1.25 FY25 that is the corresponding period of the last year the Same is at 1020 crores and net debt is 1680 crores. There is an increase in debt by 368 crores compared to March. The debt to equity ratio stands at 0.21 at the end of the quarter one of FY26 has increased 0.26 at the end of quarter one of FY25 the same is at 0.20.
At the end of March 25th. Coming to the working capital the working capital I will be covering excluding cash and margin money deposits. So at the end of Q1FY26 it stands at 5314 crores which is 30% of the turnover and in terms of number of days it is 102 days. So coming to the data Receivables Position debtors outstanding at the end of Q1 has increased from 3,098 crores to 3,296 crores and the number of days has also increased from 65 to 77 days in the current quarter and 85 days it was 85 days for the corresponding quarter of the previous year.
Coming to the unbilled revenue Unbilled revenue stands at 6442 crores which is 37% of the revenue as against 5937 crores which is 31% at Q4 that is the March 25th retention money stands at 2008 crores which is 11% for Q1 as against 1870 crores which is 10% at Q4 at the end of March 25th. Coming to the mobilization advances mobilization advances stands at 2944 crores as at the end of June 25th as against 2098 crores as of March 25th increased by 846 crores of these mobilized advances, interest bearing advances are 62% and average interest comes to around 9.24%.
Interest bearing advances decreased from 79% to 62% during this quarter. Coming to the cash and cash equivalents Cash and cash equivalents are 355 crores as at the end of June 2025 against 789 crores at the end of March 25th. Same is the case with margin money deposits 671 crores as at the end of March June 25th and 639 crores at March 25th. Coming to the capex, we have budgeted a capex of 750 crores for the regular projects against which we have spent 92 crores in the quarter one of FY26. So investor related ratios ROCE stands at 12.62 as against 14.61 at the end of at February.
Sorry at March 25th. Retainer network against PPT is 13.14% as against 14.23. EPC stands at 3.03 as at the end of quarter one of FY26 as against 3.2 in Q1 of FY25. With this I conclude the presentation on the financial numbers. Thank you all. Mr. Weibo, Mr. Weibo, we can take questions now.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star n1 on their touch tone telephone. If you wish to remove yourself from the question queue, you may press STAR and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sravan Shah from Daulat Capital. Please proceed.
Shravan Shah
Thank you, sir. Sir, first on the guidance front, so this quarter 7%, 7.1% revenue growth and we were looking at 10% growth for FY26. So for balance 3/4, the ask rate is 15.5% odd. So what’s the revised guidance? And in terms of margin also, will it be a kind of a lower end of 9% or still we can have a 99.25%.
Sanjay Pusarla
Yeah. Coming to the guidance. So I think you are aware that whatever orders we have received, we have received at the end of March, major orders. Okay. And generally what happens when the new orders are received? You need to mobilize the site. You need to have the workflow availability, the designs and drying stage clearances, everything will be there. They are all in place now probably by end of September or September onwards the new works will also start producing the results. Now they will have their venue. We expect to maintain the guidance in the coming quarters.
Probably in the quarter three and quarter four we will be looking at numbers, achieving these numbers.
Shravan Shah
Okay, great. And then margin, will it be a 9% or 9.25% is also possible.
Sanjay Pusarla
9% is definitely. We are, we are expecting that we will be reaching that 9% will be maintaining the sustaining that level. And there is a possibility, once the growth is there in the revenue, there is a possibility of adding some more basis points.
Shravan Shah
Okay. And just a clarification though, in terms of order info, we have 20 to 25,000 odd corrode. And till now we have received 6,719 odd corrode. So the L1 status, if you can help us. Currently how much value of projects are L1 and including this L1, are we looking at total 22 to 25,000 odd crore kind of order inflow for this year?
Neerad Sharma
Yeah, the L1 value would be, you know, between 5,000 to 6,000 crore. And as we speak we retrace that, you know, we are quite convinced that we should be able to achieve the guidance that we have shared with the street. And the number that you quoted, 6700 odd number which is already about 30% of the lower band of the guidance that we have shared with the street. So we are reasonably confident of achieving that target.
Shravan Shah
Okay, got it. And lastly in terms of the finance cost, last time we said it would be 3 to 4% can be higher. So that our number is likely to remain the same.
Sanjay Pusarla
It’s likely to remain same. And probably we are also having discussions with the bankers are also exploring. Exploring some alternative means of finance. Also alternative products. It may be a little bit of lower side when compared to the previous year.
Shravan Shah
Lastly, sir, two, three data points on balance sheet or trade payable inventory loans. And so total investment in subsidiaries and associate. And also if you can break it up in loans and investment.
Sanjay Pusarla
One second investment is 1052 crores. Inventories is 1476 crores. These two numbers.
Shravan Shah
Okay. 472. Okay. 1472. Yeah. Trade payable. Sir.
Sanjay Pusarla
Trade payables is 6062.
Shravan Shah
6062.
Sanjay Pusarla
Yeah.
Shravan Shah
Okay. Okay, Got it sir. Thank you. And all the best.
Sanjay Pusarla
Thank you.
operator
Thank you. The next question is from the line of Mohit Kumar from ICICI Securities. Please proceed.
Mohit Kumar
Good afternoon and thanks for the opportunity.
operator
Sorry to interrupt. Mr. Mohir, I would request you to please come closer to the device.
Mohit Kumar
Is it better now?
operator
Yeah, much better.
Mohit Kumar
Yeah. Yeah. Good afternoon and thanks for the opportunity. So my questions are related on execution. The first question is smart meter. We believe the smart meter has picked up in general in Maharashtra and up for us. Are you seeing the pickup in execution and has the execution normalized now?
Sanjay Pusarla
Yes, in the case of smart meters for both Maharashtra projects we have got the go live and the pace is picked up and is expected to be doing well in the quarter 2 and quarter 3.
Neerad Sharma
Mr. Mohit, we have made reasonably good progress on the installation of these smart meters. We have already, you know, installed close to three orders, close to, you know, 15 lakh meters.
Mohit Kumar
Next question is on the Ken Betwar river interlinking project. How is the execution going right now? Are you seeing more order inflow, more inquiry from the government side for the balance of the year?
Neerad Sharma
Mr. Mohit, firstly this Cane Betwa project, this project is required to be executed in six years time. So you know, for a project like this there are a lot of, you know, processes involved, design permissions in place, you know. So the project is currently at this stage. But we are hopeful that, you know, more projects should come for bidding for interlinking of reverse. But we have to wait and watch.
Mohit Kumar
Are you seeing more pendants or at this point of time with more shutter score?
Neerad Sharma
As of now we expect to see. We expect to see because you know, if we were to go by the different media reports, you know there are different interlinking of river projects are being talked about in a few states. So we have to Just, you know, wait and watch how these, you know, developments finally pan out.
Mohit Kumar
Yes, the last question sir, on the order book. Are there slow moving order books which are eased up compared to let’s say last fiscal.
Neerad Sharma
You cannot. I mean most of the projects that we have currently in our order book, Mr. Mohit are you know, moving at a good pace. And whenever we take a view that you know these projects are not moving, they are not expected to make progress generally we try to remove those projects from our order book. This is an exercise that we have done in the past. So as we speak, I mean we have taken a view that you know, these projects should make reasonably good progress in quarters to come.
Mohit Kumar
Understood sir. Thanks and all the best. Thank you.
operator
Thank you. The next question is from the line of Parikshit Khanpal from HDFC Securities. Please proceed.
Parikshit Kandpal
Yes, my first question is. Out of the total order book of 70,000 crores, what quantum of the order book? The work hasn’t, has not started until now.
Sanjay Pusarla
It was almost like whatever project we have got in the month of March. All those projects are in the initial phase of designing and getting clearances and also having the work available for a work print availability. So those are the projects which are taking up now. And there are no projects which have b een stalled in order books. So I would, I would like to, you know, answer that little different. The. In the FY25 we have backed projects, you know, about close to 33,000 crore. The projects that we have bagged in the month of March, they are expected to take some, you know, few more months to really, you know, get started. So whenever we bag a project there are a lot of, you know, there, there is a process involved. You know, the taking over the site mobilization, completing the documentation, having all the rows in place. So it will take some time, you know, for the projects that we have recently backed.
Otherwise all the projects that we have in our book are making good progress.
Parikshit Kandpal
So what will be the order inflow in March?
Sanjay Pusarla
It would be about little less than 20,000 crore.
Parikshit Kandpal
So 20,000 crores was back in March. So that is where the work will start by second half of this financial year, right?
Sanjay Pusarla
You are right. Depending on the site, depending on the. I mean different sites will have different conditions. But by and large we could say that.
Parikshit Kandpal
Okay, got it. Second question is on the jgm. So what’s the progress on JGM and what are the debtors currently outstanding and revenue for Q1 and order book?
Sanjay Pusarla
So as far as the JJM are concerned the total order book is about 16,000 crores. Out of that we have already executed about 12,000 crores. 4,000 crores is the balance order book that need to be executed. And this year also we are expecting to execute major portion of that. And coming to the receivables, it was somewhere around one second. I’ll just give you the receivables number.
Parikshit Kandpal
Okay. And just another question on this. NCP Urban has won a redevelopment project of 0.4 million square feet. So this is under the listed entity, right? And if yes, then what is the plan for real estate now beyond the current land process? How are you looking at this business?
Sanjay Pusarla
Could you please repeat your question?
Parikshit Kandpal
So in NCC Urban has won a redevelopment mandate for a 0.4 million square feet in Mumbai. So I just wanted to check is this though, is this the part of the listed entity and if yes, then what are the plans for the real estate development in the listed entity beyond the current landlines?
Neerad Sharma
For the, for the, our real estate business, we have a subsidiary company called NCCR1 and this company has backed that project. The project that you are talking about, Right?
Parikshit Kandpal
Yeah, that I understand. I was asking, are you looking at more projects like this development within ncc? So that was my question. How are you looking at the real estate development now from here on it.
Sanjay Pusarla
Was not at the NCC label, it was at the urban level only. And they are looking for these kind of projects also in the near future.
Parikshit Kandpal
This will be part of the listed entity, right?
Neerad Sharma
This is a subsidiary company of the listed entity. The parent company listed entities, NCC Limited. Our subsidiary company’s name is NCC Urban. That company is not listed. It’s an unlisted entity. But it’s a subsidiary company of the parent company listed company NC selected.
Parikshit Kandpal
Okay, that I understand. So but I’m saying the revenues and the profit will accrue to the listed entity and CC the parent Holdco company right.
Neerad Sharma
In the console, i t will come.
Parikshit Kandpal
Yeah, yeah. So as a business, so I was asking as a strategy, how is the parent now if the business is done under subsidiary, the capital requirement and everything as we have been supporting our entities in the past. So I wanted to know how are we looking at this business and outside our existing land passes, how are you looking at the real estate opportunity from mid to long term? So what, what is our strategy there? Hello. Hello, can you hear me?
Neerad Sharma
Yeah, yeah. If you could Repeat your question, Mr. Parikshit. You are asking about the long term. You know this unlisted, the subsidiary company of ncc, they are always in lookout for you. Know all kinds of opportunities including redevelopment projects. As and when they are able to identify a good project, you know they will evaluate and then decide, you know the next course of action.
Parikshit Kandpal
Okay, sure sir. And just last that JD and the.
Sanjay Pusarla
Receivables it was around 300 cross is the receivables 286 precisely projects. Yeah.
Parikshit Kandpal
Okay. Thank you sir. Those are my questions.
operator
Thank you. The next question is from the line of Nishi Jain from SNJ Investments. Please proceed.
Unidentified Participant
Good morning everyone. I would like to know regarding your projects in MMR region. So if I’m not wrong some two BMC projects companies executing with in JV with J. Kumara.
Neerad Sharma
Yeah, yeah, yeah yeah. You’re talking about GMLR project Mr. Jen.
Unidentified Participant
Now one is GMLR and I guess other one is work. So there is a coastal road also, right?
Neerad Sharma
Yes.
Unidentified Participant
Every receive this the clearances and is the on ground work started in this.
Sanjay Pusarla
So as far as the JMLR tunnel project is concerned we have received all the clearances only we are just waiting for the tree cutting permissions which is expected very shortly. Once it comes then the project progress will also happen. And whatever equipment that is required for this project is also reaching India which is actually an imported equipment which is coming from outside. It is reaching, reaching now. And as far as VDCR is concerned we are just waiting for some clearances to come on that comes that project also will take off. And as far as GMLR is concerned we already started all the approach roads and everything and also the casting casting yard also for the purpose of terminal mining.
Unidentified Participant
Okay. In this follow up so for this versa the project so is for that is the. Is there will be a requirement of casting yard and if. Yes, is it finalized?
Sanjay Pusarla
No, no, it is not for virtual load. It is for the tunnel project. GML or tunnel project.
Unidentified Participant
So for the versa they said you won’t require any casting. Is it like that?
Sanjay Pusarla
No, no. There there we don’t require anything.
Unidentified Participant
Okay. And second thing is on the Vira Alibar MSRDC MSRDC project. I think now they are going to do it on bot model. So company will be participating in this bot model tenders.
Sanjay Pusarla
Which project you are m entioning about multimodal which they have cancelled and now they will issue in bot.
Neerad Sharma
Model I think so we will evaluate, we’ll evaluate but our focus always is on you know, EPC kind of, you know projects. But whenever you know these projects comes up comes up for bidding we will evaluate and then decide. It is really premature to really, you know commit whether we will Participate or not. It would depend on the project, the various terms and conditions and you know, our decision would depend on that.
Unidentified Participant
The only idea was does the company participate in the DOT model? That is all.
Neerad Sharma
Generally I. I think I have already answered that question. Generally our focus currently is on the EPC kind of, you know, projects.
Unidentified Participant
Okay, that will be all. Thank you.
Neerad Sharma
Thank you. Thanks.
operator
Thank you. The next question is from the line of Prithvi Raj from Unified Capital. Please proceed.
Prithvi Raj
Yeah, hi, I just have a couple of questions. On balance sheet we saw increase in the working capital and debt numbers on a sequential basis. Could you please explain this? You know, are we facing any delays with respect to payments or has the situation improved? Could you throw some color on this?
Sanjay Pusarla
Generally the debt position at the end of the first quarter will be little higher when compared to your March. Okay so the reason being, you know, in the end of the year as we more concentrate on the government projects. The government project generally they. They tend to release all the payments because of the expiry of their budgets and other things. So you have your debt position will be low at the end of year end. At the end of the first quarter the debt position I think were comparatively better than what we were there in the last year.
And we are not expecting any delay in the receivables except for a few projects where the central funds are expected to be released sooner.
Prithvi Raj
Okay. And on the Maharashtra, I think, you know, last year you had a certain delay with respect to execution. Has the things improved, you know, after the elections? Now is Maharashtra execution and payments seems to be normal.
Sanjay Pusarla
Yes, definitely. Because after the elections we even started getting all the clearances. We got the go live for all the small smart metal projects and we started executing the project and the payments are also flowing in. Now.
Prithvi Raj
How should we look at the debt number by the end of the year? Do you have any number saying, you know by March 26th you would like to reach certain level?
Neerad Sharma
Mr. We do not really give any guidance for the debt number. I think we have shared three set of guidance numbers for. For the current financial year FY26, which you already know. So we really don’t share any specific number for the debt.
Prithvi Raj
So one final question on the execution front. I think in addition to high base last year, has there been anything else that impacted execution specifically in this quarter? Early monsoon something of that. So.
Sanjay Pusarla
So this quarter the execution impact is not on that account. Actually the execution impacted in certain category of projects like WSM projects. As you know that the. There were delays in the release of payment from these government. So that is the reason there was a dip in the turnover. Otherwise there is no other impact. And we expect these things will also set in right in the quarter two. And expect that we’ll be meeting the market expectations as the guidance given by us.
Prithvi Raj
Thank you. That’s also my sir.
operator
Thank you. The next question is from the line of Vaibhav Shah from JM Financial. Please proceed.
Vaibhav Shah
Sir, how much have we invested in the smart meter project as equity?
Sanjay Pusarla
As of now it is 70 crores.
Vaibhav Shah
And what is the total investment in the time period?
Sanjay Pusarla
It is like 430crores is the total equity that is required over a period of one and a half year. And. This year it is expected that we may have to invest another 150. To 200 crores incrementally.
Vaibhav Shah
Yeah. Okay. And any thoughts on bringing some partner? We are looking for a partner to share the equity burden. So any thoughts on that still we.
Sanjay Pusarla
Have not shelved that proposal. We are still active on that. And we are also looking for some someone who will come to us at our terms. If someone is coming up then definitely we will look for that opportunity.
Vaibhav Shah
But otherwise we are open to put the entire equity. Obviously. Okay. So secondly, on the Vizag D. So there was an outstanding loan of 375 crores. So what is the our plan to record that and how much have we record in this year so far?
Sanjay Pusarla
This year we have not recovered anything. We actually there was launching of the project happened by them in the current year and there was little restructuring done. Starting September 23rd they will start releasing the funds this year. They have not released anything so far. But end of September they will start releasing as per the agreed schedule.
Vaibhav Shah
So we are targeting 120crores in 26. So we maintain the target.
Sanjay Pusarla
Yes, that was the agreed target data.
Vaibhav Shah
Okay. So secondly on the AP side, so what would be the outstanding receivables .
Sanjay Pusarla
As AP Capital City the outstanding 104. Crores as of now. And we started getting some money from there. And we are expecting this money also to get rebased by end of second quarter.
Vaibhav Shah
And so in the running projects.
Sanjay Pusarla
Running projects it is good. Absolutely no problem. Even the new projects which have been awarded to us in the last quarter they have already started mobilizing and we have already started working on those projects. And initial bills were also raised in some of the projects. Because all the projects were not taken up immediately. Some projects have taken off and we started billing them and we are getting the money.
Vaibhav Shah
And what will be the amounts are outstanding from running projects, new projects.
Sanjay Pusarla
As of now there is no outstanding whatever bills that have been there, that has been there, those have been paid off.
Vaibhav Shah
Okay. Lastly, what would be the share of AP in the. In the console order book?
Sanjay Pusarla
13. 13, 14. Yes, it will be around 13 to 14%.
Vaibhav Shah
Okay. And sir, lastly what would be the capex for FY26?
Sanjay Pusarla
FY26? 750 crores. We have put the capex for the normal projects out of that 90, 92 crores we have already procured in quarter one.
Vaibhav Shah
Okay, so one clarification. You mentioned that the JGM receivables is around two 86 corrodes. As of March it was around 1500 crores.
Sanjay Pusarla
Right? No, that is including all your unbilled revenue also and other JJM projects also in addition to SWSM.
Vaibhav Shah
Okay, so. So the number corresponding to March, 1500 crores would be what number? Right.
Sanjay Pusarla
16. 1700. It will be 1700.
Vaibhav Shah
Okay. Okay. Thank you sir. Those are my questions.
operator
Thank you. Next question is from the line of Deepak Podar from Sasaya Capital. Please proceed.
Deepak Poddar
Yeah, Am I audible, Sir?
operator
Yeah, yeah. Mr. Bodar, you are audible.
Deepak Poddar
Yeah. Thank you very much sir for this opportunity. So just wanted to understand this first quarter our net Debt was around 1500 crores, right?
Sanjay Pusarla
Yeah. Yes. Yes.
Deepak Poddar
Okay. And what’s the target for FY26 end? I mean in the past we had some target of debt reduction. So now the debt has increased. So what sort of target we can have for FY26 and debt levels at gross level maybe?
Neerad Sharma
Mr. Podar, we don’t really share any target for the debt. We expect that we may end up at around 1400 to 1500 crores.
Deepak Poddar
14 to 1500 crores. Okay. Similar to what we have we had at the end of FY25.
Sanjay Pusarla
Yes, yes.
Deepak Poddar
And so interest cost also. I mean do you expect interest cost on a YUI basis because debt levels have increased right now to kind of remain flattish or we can, we can see some, some increase.
Sanjay Pusarla
No, it was like similarly like last year only there will not be any significant change in that.
Deepak Poddar
Okay. Okay. And just I mean if I have to see any last four, five quarters, I mean consistently we have seen a degrowth on a YUI basis in terms of our quarterly revenue. So. And we do have a very healthy strong order book. So just wanted to understand where, where we are. I mean we are finding it difficult to grow our business. I mean is it the execution part? So some understanding on that would be very helpful.
Sanjay Pusarla
Yeah, it’s like this if you see the year 2425, R2324, the growth in very high. If you see that it was around 35% is the growth rate. Okay. And coming to 25 here we have given a, I think guidance of 15% at that point of time. And midterm we revised it to 10%. Okay. So the actual growth that happened is around 5%. Okay. And with the project which have come in the last year. Okay, there those have come in the latter part of the year because in the beginning of the year, because of the political, these elections and other things, there was no order book that was building up in the beginning of the year.
The order book was built only at the end of the year. That is the reason you have a. Comparatively you compare with the previous year. There is a reduction in quarter on quarter. But these orders which have come in the month of February and March, March of this current year, they will result in producing your revenues maybe from the quarter two ending or quarter three of the current year.
Deepak Poddar
Okay, okay, okay, I. I understood. So. So in the second quarter also we.
operator
Mr. De, I would request you to join back the queue as there are several participants waiting for their turn.
Deepak Poddar
Thank you so much.
operator
Yes, thank you so much. We take the next question from the line of Bhavan Modi from Anandraathi. Please proceed.
Bhavin Modi
Hi sir, thank you for giving your giving the opportunity. So when I was looking to the execution part, so I see the execution is being, you know, like lagged from the transportation business and from the electrical business. So sir, what is the reason for that? Why such low execution? So like the conversion is around, you know, 4 to 5% of the opening order book of this quarter.
Neerad Sharma
Mr. Modi, about this TND, I think we are on record, we have already shared in the previous con calls that execution got little impacted in the state of Maharashtra for rolling out the smart beta projects. So whenever a delay of, you know, this, this kind takes place, naturally it will have some, you know, some implication on, you know, the project progress. But we are quite hopeful as we have shared in this call earlier, we have to go live and we are making reasonably good progress, you know, for these electrical T and D. Okay.
Bhavin Modi
And the second question, you know, can we expect, you know, good amount of, you know, execution from our, you know, BSNR order, you know, which we were in the first quarter, first part of the last financial year. And can we also expect a good amount of execution for GMLR projects? You know, so can we expect execution to ramp up because of these two major orders?
Sanjay Pusarla
So as far as the BSNL is concerned now that groundwork is happening that design clearances, approvals are in place. Probably from Q3 onwards we’ll start billing and executing. And by end of the year maybe Q4 it will pick up. As far as GMLR is concerned, the preparations are happening for launching these TBMs. That is a very complex job. Once the TBMs are launched then only the increase in the revenue is expected. Till such time you will have approach roads, you will have box channels, cut and cover tunnels, all these things. They will be doing it.
So you will not expect higher revenue in respect of gmlr. Now until the TBM starts working.
Bhavin Modi
Okay sir. Thank you sir. And last question, sir. How do you see the impact of monsoon today? You know, till date, you know, how have you seen the execution impact?
Sanjay Pusarla
Generally the education in Q2 because of the monsoon we also even expect to do moderately. So that is going to be there.
Bhavin Modi
Okay. Okay. Thank you sir.
operator
Thank you. Before we proceed with the next question, ladies and gentlemen, in order to ensure that the management is able to address questions from all participants please limit your questions to two per participant. The next question is from the line of Vishal Periwal from Antiq Stockbroking. Please proceed.
Vishal Periwal
Yes sir. Thanks for the opportunity. Sir. In terms of order book, can you give some color? Like in terms of state wise, top five, six states and also central state. How the fit is for us?
Neerad Sharma
You know these projects will have a very good, you know, mix from all the leading states, you know, so all the large states, you know that are rolling out this infrastructure projects, we have a very good, you know, mix from all these states.
Vishal Periwal
Okay, okay. And. And maybe in central state, private, will that be?
Sanjay Pusarla
Yeah, out of the order book you have a composition of like 20% is from the central government, about 15% from the state government and other entities like BSU, state government entities, ADB, AIB, banks and all, that’s about 60 to 65%.
Vishal Periwal
Okay, so private is clubbed in that last part. Yeah.
Sanjay Pusarla
The rate is not very substantial. It is somewhere around 5%.
Vishal Periwal
Okay. And maybe one last thing. So order inflow, you mentioned number of 6000 plus. So that is till July.
Neerad Sharma
Yeah. That’s an L1 number. Mr. Perival. Yeah. The order inflows, right? This is 6019 crore.
Vishal Periwal
Okay. Okay. 6790. Got it. Thanks for the clarification.
operator
Thank you. Thank you. The next question is from the line of Vasudev from Nuama. Please proceed.
Vasudev Ganatra
Yeah, thank you for the opportunity. Are we seeing any slowdown in the state government payments from any state.
Sanjay Pusarla
Right now not we are expecting the payments to come as usual as we discussed earlier. Also the payments from Telangana government was little slower but otherwise rest of the flow places. We are not facing any serious issues.
Vasudev Ganatra
Okay. And just one data related question. If you said cash and cash if you are in last quarter end was about 1300 crores. So can you give like collect number for this quarter as well?
Sanjay Pusarla
Yeah. So it is cash and cash equivalents including the MM deposits, margin money deposits as at the end of March, cash and cash equivalent you want on the pure cash and cash equivalence you want including margin money deposit. If it is including margin money deposit as at the end of June 25th it is 826 crores. And as at the end of March it is somewhere around 1400 crores.
Vasudev Ganatra
Okay. And so this last one, how much investment are we anticipating in the smart meter project?
Sanjay Pusarla
So the total Investment required is 430. We have answered this question earlier. About 150 crores. We need to invest more in the current year. Expecting to invest more in the current year.
Vasudev Ganatra
Okay, sure. So that section wiser. Thank you.
operator
Thank you. The next question is from the line of Lokesh Kashikal from Smith’s Institutional Equities. Please proceed.
Lokesh Kashikar
Yeah. Hi. So good afternoon. Most of the questions have been asked and just a question from my side. What is the labor situation for us considering that we are sitting on one of the highest order book position and also there has been there been the impact in Q1 as well considering that there has been a marriage season and festivals also there. So that’s the question from my side.
Sanjay Pusarla
Marriage season, festival season, it is always factored. Okay. It is there every year. So that is always factored. But as far as the labor is concerned, as you said, it is very, very important for our industry. And as you know that everywhere the infrastructure boom is there and a lot of scarcity is there. But still we are managing and trying to retain the people.
Lokesh Kashikar
But do you see that the our order portion of around 70,000 crores we have enough labors to ramp up the execution pace.
Sanjay Pusarla
We do not see any problem in terms of availability of the labor for executing these projects. See, the fact of the matter is, you know, the situation keeps changing from you know, city to city, place to place. There would be places in which it is not as challenging as you know in some cities. But we are able to manage. You know, there are various things that we are trying to do on the ground to make sure that, you know, people are comfortable labor force is able to, you know, come do their job, to take care of, you know, their requirements. So we are trying to do all these things, you know, on the ground so that we are able to execute the orders that we already have in our hand.
Lokesh Kashikar
That’s the question for myself. Thank you.
Neerad Sharma
Thank you.
operator
Thank you. The next question is from the line of Jainab Jain from ICICI Securities. Please proceed.
Jainam Jain
Thank you for the opportunity. So my first question is, we have been hearing from the peers that there is a labor shortage issue in the construction space, especially within the building segment, whereas we have decline in labor expenses. Can you throw some light on that part?
Neerad Sharma
I think we have already answered that question. This is a reality. This is a reality. But just saying that this is a challenge doesn’t improve the situation, you know. So as I have already, you know, shared in trying to answer a question previous to your question, the situation is not uniform. You know, in some places this would be more challenging than the other places. But we are a company that has been this business for, you know, more than 47 years. So we have what it takes to make sure that, you know, to make sure that, you know, the labor force is available for the sites.
But you are absolutely, absolutely right when you make this observation that this is a systemic issue and this is a challenge. You’re not audible. Could you speak a bit louder please?
Jainam Jain
Hello, I’m audible right now.
Neerad Sharma
Yeah, yeah.
Jainam Jain
Sir, the way we have that good orders from AP Cattle project, are you having any similar, similar good opportunity which we expect to be tender out in this fiscal.
Neerad Sharma
That is very difficult to say now. What do you mean by similar projects like capital city?
Jainam Jain
I mean projects with similar sizes. Size of projects.
Neerad Sharma
It depends. It depends as and when if the real big projects come. We are always in lookout for interesting projects. But that’s a new capital city that is getting constructed in Amravati. So, you know, but whenever similar projects come up for other places, we will definitely, you know, evaluate and then decide the next course of action.
Jainam Jain
And sir, has it started the execution of AP Capital projects which we have received in last call? And when do we expect to.
Neerad Sharma
Your voice is not very clear. At times you are audible, at times you are not.
Jainam Jain
Hello? I’m audible right now.
Neerad Sharma
Yeah.
Jainam Jain
So have you started the execution of AP Capital projects which we addressed in.
Neerad Sharma
That question earlier? That you know, the projects that we have backed for the capital city? It has, you know, it is in this phase of design engineering, you know, the pre development stage of the project once, you know, the project crosses these milestones you know, the construction would start.
Jainam Jain
So sir, when do we expect that thing to happen? Like when do we expect the execution to start on the full space?
Neerad Sharma
It is going to happen maybe in the couple of weeks already in those some of the projects we started billing also because it is not one single single project. It is a composition of many packages. Okay. It is not one single project, the entire order. It is a different packages and it is a different project like building up roads infrastructure, constructing drainage system and hostels, buildings and high court. There are several packages which have come in. So each package is at a different stage. But some of the package we have already started working on them and we started even the initial billing also.
Jainam Jain
Okay, that answers that question. Thank you sir.
Neerad Sharma
Right.
operator
Thank you. The next question is from the line of Saket from Kapoor Co. Please proceed.
Saket Kapoor
Yeah team and thank you for this opportunity. Am I audible? Sir? Sir, firstly if you could just correct me here some of the slides we have removed from our presentation for this quarter. Especially about the coal mining aspect then the urban part. So any particular reason why we chose to do so and what’s the update? Firstly from the contribution from our mining work and what are the target we have set out for ourselves for this.
Sanjay Pusarla
Year for mining we have set a target of about 2,600 crores for the current year and we have achieved about 720 crores I think in the first quarter. And we expect to reach the target whatever we have fixed for that. And there is no specific reason why we have pattern.
Neerad Sharma
Because you know, as per the improvement quarter to quarter we try to, you know, share what information that we think best describes our business in that quarter. So that’s the reason. There is no other reason.
Saket Kapoor
Hello.
Neerad Sharma
Yeah, yeah, yeah.
Saket Kapoor
Secondly, on the, on the real estate part of the business and some inventories in terms of the real estate that that is being held as inventory, what should we expect going ahead in terms of monetization of those assets?
Sanjay Pusarla
It’s like this. In the case of real estate the inventory will become. We can, we can monetize only when the OC comes in. But as far as the order booking is concerned, there will be a payment. Pre sale booking will be there. The bookings are good only we are not able to show the orders because of the occupancy certificate because the revenue recognition under that particular standard calls for voice oc. Then only we can book the orders. We can book the revenue. So pre sales are going on and they are at good number. We expect them once the VOCs are coming.
We expect the Revenue also to come into the books and as on date. What we are seeing is that there is a delay in giving the clearances certificate and there were a lot of procedures that have been coming in between. Earlier it was taking only three to four months. Now it is taking four to six months for getting the oc.
Saket Kapoor
And what should be the number we can expect for this year? Sir, in terms of the contribution to the top line and bottom line from.
Sanjay Pusarla
This segment, 350 crores we are expecting.
Neerad Sharma
It is there in the segmental results, sir.
Saket Kapoor
And lastly on the J part you mentioned that the receivables have moved up to. Mr. Sak, only one clarification.
operator
I understand. But there are several participants waiting.
Saket Kapoor
Not an issue, maa m. I will follow. Thank you.
operator
Thank you. Sir, the next question from the last question. This is the last question. All right. The next question is from the line of Tejas Shah from Unique Stock. Please proceed.
Unidentified Participant
Sir, how do you go about for ordering? Because I think in infrastructure companies your major is taking orders. Now what is order intake we are looking for this year or next year.
Neerad Sharma
The order inflow guidance that we have shared with the street is a band 22,000 to 25,000 crore for FY26. For FY27. After the completion of this financial year, we will start working on the budget of FY27. And then we should be in a position to share that number with you.
Unidentified Participant
Okay, thank you.
operator
Thank you. Due to time constraints, we take this as the last question. And I would now like to hand the conference over to the management for closing.
Neerad Sharma
Thank you very much for your time and questions. Hope we have been able to answer all your questions. Should you have any more questions clarification, you may get in touch with us at email mentioned in the investors presentation. Thank you very much.
Sanjay Pusarla
Thank you so much.
operator
On behalf of JM Financial Institutional Securities Limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.