Power Mech Projects Limited (NSE: POWERMECH) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Satish Jami
Narasimha Rao Bommidi — Chief Techno Commercial Officer
Arshia Khosla
Nani Aravind Nallamothu — Chief Financial Officer
Fozan Khan
M. Ramesh — Vice President
Analysts:
Unidentified Participant
Mohit Kumar — Analyst
Jainam Jain — Analyst
Darshan Jhaveri — Analyst
Mahesh Patel — Analyst
Bhagwat Nayak — Analyst
Vinay Nadkarni — Analyst
Presentation:
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Ladies and gentlemen, good day and welcome to the Power Match Projects Limited Q1 FY26 earnings conference call hosted by Nirmalbang Equities Private 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 this conference call please signal an operator by pressing Star then zero on a Touchstone phone. Please note that this call is being recorded with this. I now hand the conference over to Ms. Arshia Khosla for opening comments. Thank you. And over to you, ma’.
operator
Am.
Arshia Khosla
Thank you Sameer I, Arshia Khosla, on behalf of Mumbai Bank Institution equities welcome all of you to the first quarter.
Arshia Khosla
FY26 earnings call of Powermate Industries Ltd.
Arshia Khosla
From the management team we have Mr. F. Kodendarayam, Director Non Board Business Development and Mr. N. Nani Arvind, Chief Financial Officer. I would now request the management to give their opening remarks post which we.
Arshia Khosla
Shall open the floor for Q and A.
Arshia Khosla
Thank you.
Arshia Khosla
And over to you sir.
Nani Aravind Nallamothu — Chief Financial Officer
Thank you. Ms. Harshya Khosla Good morning everyone. I’m Aravind, CFO of the company. I have with me Sri Kodan Ramaya, Director of Business Development. I extend a warm welcome to all of you for our quarter one financial year 26 earnings call. The performance for the first quarter of financial first quarter of financial year 26 was in line with our set targets. We reported a total income of 1304 crore marking a 28% increase over 1016 crore in Q1FY25. EBITA stood at 182 crore up 48% from 123 crore last year. While profit after tax came in at 81 crore registering a 31% growth compared to 62 crore in Q1FY25.
The EBITDA margin improved from 12.1% to 13.95% supported by exceptional revenues from Uttarakhand Riverbed mineral project while PAT margin rose marginally from 6.1% to 6.2% moderated by higher finance and tax cost in the LLP which we floated for riverbed minerals projects for the revenue mix for quarter one. In terms of revenue mix for quarter one FY26 the mechanical segments contributed 222 crore a 117% increase over 1 or 2 crore in Q1 FY25. The civil segment including railways water projects contributed 581 crore reflecting a 7% increase Burundam revenues rose to 398 crore up 17% from 341 crore.
The electrical segment recorded 67 crore compared to 8 crore 737% jump and the mining business contributed 26 crore versus 14 crore last year showing 80% increase. Other income stood at 11 crore compared to 9 crore in the previous year. The revenue split for the quarter was 95% domestic, 5% international while the contribution from the power sector remained at 53% with non power sector accounting for 47%. On the financial front, return on equity declined from 3.09% during the Q1F from 3.09% to 2.41% due to higher finance and tax cost. We anticipated that normalization in collection and execution ROE is likely to improve significantly in the coming quarters while return on capital employed improved from 4.7% to 5.69% driven by better capital deployment and improved operating margins.
Operating cash flow remained neutral due to pending receivables in the water division. However, we are actively engaging with clients to expedite these certifications and clearances and we are convinced of realizing the outstanding dues in the coming months. Net current asset base excluding cash and cash equivalents have decreased from 128 days in Q4FY25 to 123 days in Q1FY26 Driven by the realization of receivables which resulted in reduction in the current assets. We are actively engaging with the Uttar Pradesh government for the realization of pending the eligible machine receivables which is expected to further reduce current asset days.
Additionally, with the stabilization of MBO business from 2027 onwards, we anticipate a significant improvement in the networking capital days as on 30 June 2025, the gross debt and net debt remained controlled and despite delays in certification of water bills and delays in realization of receivables as on 30 June 25, gross debt is around 753 crore and the net debt stands at 239 crore. The debt equity ratio as on 30 June 21 stands at 0.34 times. During Q1 FY26 the company secured fresh orders worth of 1270 crore. The total order backlog stood at 53,972 crore. Excluding the two MDO projects, the executable order book is 14,391 crore.
We are targeting 10,000 crores new orders by March 26 and as on date we have already secured 1882 crore. Our strategic focus remains on the high potential areas including industrial, O and M, railway and water infrastructure as well as MDO projects. For FY26 we have set a revenue target of 6,500 crore with an expected 25% year on year growth and a stable EBITDA margins in line with the FY25 levels. Margins could see an upside depending on the contribution mix from O and M and mining segments. The order book outlook for the year remains healthy supporting our growth trajectory.
With the company well positioned to execute and convert around 40% of its opening order book annually. The MBO business is ramping up steadily and along with O and M is expected to drive significantly growth in the coming years. So from MDO business point of view our MDO business is progressing steadily. At the Kotray Vasanthpur project, mobilization of HEM equipment has been completed and first year of mining operations commenced on 15th April 2025. Till date, overburden removal of 5 lakh cubic kilometer has been completed and the work is continuing. Coal production is expected to commence from September 25th subject to the monsoon conditions at the Kalyanashari Tasra project, OB remover and coal dispatch operations have been ongoing since January 24.
As of June 25 coal production has reached 7.61 lakh tonnes with the corresponding OB removal of 14.71 lakh cubic meter. Mining fee against the coal produced and discouraged sale have been accruing since January 24. To date invoices have been submitted for 7.52 lakh tons of coal dispatched to the existing washery as per sale direction with the total value of 158 crores. So far we have recognized revenue in terms of washery and railway sliding development is concerned. Design consultants have been appointed for both for both the washery and railway sliding. For the railway sliding engineering scale plan, L section plan and consent to establish approval have been received while approvals for overhead electrification and signaling interlocking system are expected by end of this month.
For the Vashari, major equipment designs have been completed and have been issued to the vendors for some of the equipment with the remaining order under progress. In parallel with design activities, mobilization and establishment of Setavashri site are also in progress while sales current coal offtake remains below the plan due to the limited actionable washing capacity available outside. We are actively working to resolve these constraints and ramp up the production in the coming quarters. With this now request Mr. Fozan Ramagaru to update on the key business development initiatives and future outlook
Fozan Khan
yeah thanks Arvind.
Fozan Khan
For your introduction and also the overall business engine of the company company. Thanks for our participants also I think as Aravind has said, you know we are looking up into the business opening up substantially. We have seen it is there for the last two years and it continues to happen in the coming years. Also coming to the basic order booking and the backlog what we are having it. I think in the first quarter we had a total order booking of 74s with key orders from Telangana where Telangana project we are also building into the quarters the establishment quarters about 1350 flats of value of 972 crores.
We have taken the first major step into the green energy business in taking the onto the cool scheme of Eskom solar project India for 159 crores total value for about 25 years and more Indian jobs also we have taken time jobs of 108 crores. These are the key orders are there but beyond the quarter one also currently also recently we have booked a major O and m order in SJVN that is 2 into 6498 crores for a 5 years windm operation and NTPC jumbo also about 53 cores for this is the latest two major developments apart from the what we have seen in the first quarter now looking into the overall order backlog taking into consideration the revenue what has happened into the first quarter and all or the last year backlog what we had in 1st of April 1487 more or less the order backlog remains same about 14, 391 crores with a major increase increase in the civil segment of the business from 8, 4, 7.
Of course it’s and in other segments because in the first quarter we we have not substantially added because of the opportunities for postponed later and these things are expected to come happen There is some marginal reduction the overall order backlog from mechanical and inflation business from 2303 course to 2081 course going down from 2749 course backlog to 490 crores and analytical we are looking at the business and stabilizing it Therefore we are not looking at in a significant way to be adding new businesses at this stage Barring stabilization It is now 786crores the backlog compared to 863crores.
The domestic business continue to try the business with about 98% of the auto backlog and the international business mainly focus on the O with a backlog of 200 crores is about 2% and the power sector continues to be a lead Opportunity provider for that company with over 61% of their business since at the beginning of the year it is now 57.5%. In the first last year now it is 57.5% and non power is about 42.5%. This is on the segment wise opportunity and in the case of the key initiatives has been the market has been opening in the power sector and in the infrastructure and non power sector also there are a lot of opportunities I have seen the last 810 years.
The trend is continuing for the our participation in railways, roads and infrastructure Metro works and then significantly the windm propel waterway increased. Some of the key aspects of the O business has been that in fact our total capacity of operation of the Owend 1 business has gone up over 107 megawatts which are three major projects in the preceding aspect in preceding years and recently what we have taken is giving also 1320 megawatt that will jack up the overall O and M process to nearly 7 to 5,000 megawatts. And with more focus on the power sector the addition of the capacity there is going to be a lot of opportunities.
So coming to the key opportunities and the business where it is going. I think we all know there is going to be revival of the power sector business going to vary of requirements in order five to 10 years as the increase in capacity which I have been telling in many of my previous interactions with you that with 500 gigawatts of the renewable power adding up by end of the decade and then there is going to be a balance for the power requirement. 80 gigawatts of thermal power has to be necessarily added and there is a significant addition into the actions taken by the various companies particularly Adani which has got a present installed base of about 70,500 megawatt.
They intend to double it about double the capacity for 34, 35,000 megawatts in another five to six years. And they have taken the lead in adding our own recent orders what they have placed in the last couple of months maybe including the previous two 3/4 and about 15,720 megawatts they have ordered. And recently also they have taken action on the another 4800 megawatts. Therefore they are significantly adding up to the ordering backlog of the engineering APC companies at the DHL and LNT And NTPC is another major organization which is taken a lead about 11,000 IIT megawatts of ordering which has been done in the last couple of quarters.
That that that also is adding up and other utility companies like DVC, Navy Lignite Corporation, Mahajenko, then Fingern ACCL, then Gujarat State University Composition Ltd. Then check is the they also take the initiative and add new capacities. Therefore, if you take about 18 months to two year ordering status in the last one and a half years and the trend is continuing. About 38,000 megawatts ordering has been done in different areas under different stages. About 10 EPC projects have been awarded to BHL. And then LNT has taken a major step forward again coming back to the power sector.
About 4,000 megawatts two projects they are taken at Ravi Nagar and Gadarwara. And these two players will know LNT also is going to put their pitch in. And the latest information is that Adani perhaps has taken an initiative to order the some boiler packages to them. And this quiz has to be confirmed for the LNT also. Therefore perhaps they want to slightly diversify the our BTG turbine main island ordering package to apart from BHL also think of the overall auto backlog BHL has taken it. Therefore if you look at the overall scenario there has been a substantial ordering of more than 2 lakh course about 38,000 megawatts in the last one of two years.
That a significant opportunities for a company like Powermat. We are into various segments of the main power plant installation both in the main point and the balance of plant area. And offers an opportunity of about 30,000 crores now in these areas. Recently our interest and where we have taken a lot of initiative is in getting into the market with Adani. About 3, 4 major jobs were taken at Mahan then Raipur Korba. That is American tax for 1653 crores of mechanical installation jobs. And then 800 crores of the fuel works at Mahan phase 2 and Mijapur phase 1 which they are putting up for the first time.
218 megawatt that comes to 2453 crores. And all these schedules about 30 months firm price contracts with a fair advance and payment terms. And these projects are already under initiation and execution and going on a fast track basis. And the other important development is the BHL Kodarma DVC. We have taken 570 million crores in the BTG civil works and the cooling tower work about 743 crores. Therefore if you look at the power sector itself perhaps the company has added nearly about 7,500 megawatt of of capacity addition present in the recent times. And this will continue to happen in the coming years also.
And then on the O and M sector. What I can say is that we have got a reasonable backlog to continue the order. The conversion factor and the opportunities are going to be continue to be there. With a new capacity addition about 68,000 megawatts every year. Both with the particularly Adani is going to add a lot of capacities and other players are also going to add up capacities. And public sector also is going to add up the capacities. With that, you know more opportunities will come. As I said, the 4,000 plus megawatts have been added to the base strength of the O and m coming to 75,000 megawatts.
Perhaps you know, with more and more capacity addition. You know this base capacity of 4 meg has to increase in the economy years. And we continue to bank on the domestic momentum business and the international wind term business. The main focus is around the shutdown jobs, repair jobs, maintenance jobs and manpower supply. Effectively we are doing in the Middle east and Nigeria. Nigeria we are 400 million long term contract that is being under execution and then many maintenance jobs we have taken and that we expect about 300 ports of order booking in this year. Now the other important sectors are the railways where we are significantly working in about eight major projects on 2500 crores.
And having completed some of these significant railway jobs also. And the road sector also we are working in many projects. And apart from that one of the key areas of infrastructure business is undertaking in Metro works. Metro works there is a major online business. 22 cities are being has got its penetration about 950 kilometers. This is going to double up in the next five to five years to almost 2000 kilometers with another 23 cities added. And our interest in all these metro shops is first to work on the maintenance depots. Because each of the major metro cities they need to maintenance deposits.
We have got experience in doing many of railway workshops with the railway jobs. What we have undertaken so far major railway Metro maintenance job we are executing in Bangalore for the Bangalore Metro Corporation. 427 crore. That gives us the references to it for many of the Metro opportunities which is expected in the future. Therefore, in the overall scenario what I can say is that last year our total auto booking was about 6,005. 6437 crores. That is compared to previous year. 87,000 8458 crores in 23, 24, 24256437 crores. Of course last year there were many aspects mainly because of the elections and Mansoul and so many other interfaces.
Perhaps this Year we are keeping a target of about 10,000 crores and an area which is of significant importance in the power sector. Business can be opening up in the balance of plant packages. Couple of projects we are pursuing it with opportunities of about 10 to 12,000 crores. And some significant development should take place shortly and that should see how we can with our overall business plan and our expertise. Also on a compromise basis we have got a mastering construction on end to end solution in civil, structural, mechanical and afterwards post commissioning orient also. Therefore that enables us to be a strong player in this.
And we are discussing with couple of players on this and then let us see how it takes place. And that is an area lot of interest to us in the in this year. That’s what I would like to say. Thank you all of you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question you may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Hi, good morning sir. Thanks for the opportunity. My first question on the margin this particular quarter. Why can any one off in this quarter?
Nani Aravind Nallamothu
Yeah, so this we. This is exceptional revenue sir. Because the modesties in the Uttarakhand riverbed mineral there are certain quantity which we seized from the clients where they have to pay their royalty and we got some quantity that referred unpaid royalty. So because of that we paid, we collected double the penalty resulted in higher profit and royalty. So that resulted the higher profit. So it’s a nine months business. Basically we will not have that much profit. So 9 months only operation in Q1 we got the exceptionally high sealed quantity resulted more profit in the current quarter.
Mohit Kumar
So what is the impact of the impact of that in the current quarter?
Nani Aravind Nallamothu
So that is roughly around.
operator
Hello sir.
Nani Aravind Nallamothu
55 crore is the fat comes into 19% EBITDA margin from that particular LLP.
Mohit Kumar
Understood. My second question on the thermal BOP. Of course it’s a very large opportunity. But having said that, why there are delays in finalization with tender. And is this opportunity of PoP, is it available from DHCL Adani, NTPC or are the packages being you know, broken up into small, small part, single factory book is small part, the size could be much smaller. Is that the right understanding?
Arshia Khosla
Yeah, I think both the ways it is possible because what has happened people like Adhrani, companies like Adhran. They would like to do themselves many things. The main plant they would like to order rest of the balance of plant packages. Including these fuel and other packages. They would like to handle themselves. That is where we are also taken some of the jobs. And what I said, you know, recently we have taken. Now the other aspect is the. Apart from the main plant that is called the balance of plant is nothing but the inputs which goes into the main plant for its operation.
Operation like water power and then civil works. And then so many axis are like coal handling, ash handling, water resistant and then miscellaneous things are there. This is all nowadays combined as a part of the single package. And that is the concept. Because you know, you specialize with a company like BHL or LNT balance of plant. It is again a special specialization. Multi. Multi discipline specialization. Not only engineering, but also in construction in different areas. Civil, structural, mechanical, electrical, C and type. For that is more of integration and needs the proper unified input resources. Know what is required to start the.
Then power is required to start the power plant. And other other also they follow both the models. One is to combine the entire package into something like a single package. That is a balance of product packages. Another is formal segment into balance of plant. Civil segment, coal handling, ash handling and individual segments. And that depends on the customer choice and how you would like to get a competitive offer in the pricing to see that his overall investment cost is moderated. Therefore, our interest is in both the cases because our strength now because end to end session.
We are having also strengthened our engineering base. And then with these things. Perhaps you know, BHL also is. Is. Is planning to do this type of BOP in a way know that it can be broken with other agencies and particularly contracts like us. You know, we are better qualified to do that. That is how it is.
Arshia Khosla
Packages available in the market.
Nani Aravind Nallamothu
Yeah, I think if I. If I look at the ordering. NPCC has ordered 10 UPC jobs totally MTPC holding which has been done is about 14,500 megawatt. Almost 1 lakh 13,000. Now this NTPC ordering mostly on BHL and to some extent on lnt. Now the major orders which are not ordered by. On the. On the UPC models. NTPC has balance of plant about six plants. They have to order it. That will come for packaging. And Adani, as I said, you know around 15,720 megawatts. That the entire balance of plot will come as a packaging. Apart from that BHL themselves have taken a lot of Orders in terms of BHL EPC ordering.
As I said, you know about 1 lakh 13 thousand 80 tickets and so on. Therefore this will be some areas. Maybe some of the projects can be thought of as a balance of plant package with DHL also.
Mohit Kumar
Understood sir. Thank you and all the best. Thank you.
operator
Thank you. The next question comes from the line of Jain and Jain from ICICI Securities. Please go ahead.
Jainam Jain
Thank you for the opportunity.
operator
A little bit of disturbance from your end.
Jainam Jain
Hello, I’m audible right now.
Jainam Jain
Yes sir. It is better. Please go ahead.
Jainam Jain
Yeah. So in the first quarter we had a low order info iy of rupees 700 crore with the strong pipeline in thermal space and nuclear space. So why are the orders not flowing in? Like is there any challenges or delays which we are, which we are seeing.
Arshia Khosla
I think that is a typical of first, first quarter, second quarter. If you look at last year first quarter also it was over 1040 crores. This year we have now the opportunities. What we are tracking in various things, various business segments is more than 30,000 crores. And then the power sector there is an opportunity of 30,000 crores. And then there is the infrastructure set countries investments are coming. We have seen the annual investments in what is happening in the railways, roads and then metro job. Generally the trending of any customer is to start the ordering in beyond the second quarter.
That is how the order gets added into the last 2, 3/4 generally. Therefore with the looking at the opportunities what we are having. Because at any time we are tracking about 30 to 35,000 crores of opportunities and then 10,000 courses. So is a reasonable thing which we have projected to the investor community that should be reasonably possible. Because in various areas in power sector side, non power sector side, infrastructure side O side symptoms we are tracking then new products happen when they’re commissioned. 500 crores of jobs which we have taken. So that should happen. And let us see these targets.
What about 10,000 should be possible from that perspective.
Jainam Jain
Okay sir. So within the Tera minds what is the total production during quarter one?
Jainam Jain
Around 1.1.5 million tons.
Jainam Jain
Okay sir. So we are guided for three. Hello.
Nani Aravind Nallamothu
Yeah.
Jainam Jain
So we are guided for 300 to 400 crores of top line in this which comes from MD business and we have only 26 in this quarter. Can you throw some background this.
Nani Aravind Nallamothu
This combination together we plan for 204 crore from the custom line and 40 crores from the.
Nani Aravind Nallamothu
Mine.
Nani Aravind Nallamothu
Just started the production and we are expecting to start the revenue from the Q3 onwards from September middle of The September will start but from ideally it will be from Q3 onwards we’ll start generating this. Probably we’ll touch maybe around 0.2 million 3040 crore of revenue. We’ll touch this year and in the Tasra mine because of the Washri capacity availability outside is very limited. We are offtake arrangements as per the sales plan order only based on the availability of external washi. We are giving around fifty thousand to sixty thousand per month. Depends on the sales direction we are executing.
We hope that this will. We are trying to push the sale team to take the material up to 1 lakh 70 to 1 lakh tons of per month capacity. We are asking them to looking at and we are looking at the other alternative arrangement to outside any available external washes availability is there. We are also pursuing that to speed up our offtech arrangements.
Jainam Jain
Okay, good answers my question. Thank you so much.
operator
Thank you. The next question comes from the line of. Not from Flip Capital. Please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity. So how much of this can be realistically completed according to you how many of these 18 awards can be realistically completed by 32?
Fozan Khan
Yeah, I. I think the ongoing jobs now we are doing nearly 12 hours Adani Vedanta and then the new jobs what we are taking from recently from Adani for the last couple of months they have got a basis on the side both in the civil and structural side. And perhaps you know another. Perhaps another thousand finder to another. Nearly 2,000 to 3,000 megawatts should be added in this year also.
Unidentified Participant
Okay. Utility companies are talking of shortage of a BOP bandwidth.
Unidentified Participant
So, so.
Unidentified Participant
So what is happening in terms of BOP bandwidth? Are new vendors being developed or are they relaxing vendor norms now for the bop?
Fozan Khan
Our bandwidth is a very strong organization set up for execution. You know our headquarters is there. Our expertise there in construction. End to end construction solution, civil, structural, mechanical and the complete segments. And we have got also experience in doing some of the complex jobs like cooling towers. And also for what we have to interface more is the engineering aspect of it. That is an important aspect which we have strengthened the people with a very senior people from. We have taken from experienced groups and they are assisting us. And now we are in the process of evaluating the projects and bidding it.
And the other aspect is the procurement. Now the procurement is a second important aspect of the UPC work. And that also we have strengthened with a really experienced hands. And in fact what I can say is that the EPC concept what we are doing non positive significantly has got a better presence in railways and roads. The quality that type of experience is being gained by the organization. It is a question of integrating the procurement additional capacities required in an engineering interface which you have to take with a engineering consultant for the in house spend and the existing construction spend.
Of course the technological part of this equipment supplies in many of the key packages like coal handling, air standing control, instrumentation and other things as the engineering supply has to come to them as to go to the various vendors. We are qualified, you know, as per the CA guidelines as per the main EPC contracts and guidelines and those aspects will follow it up. We already in touch with many of the key vendors in many key areas for the critical areas like coal handling, as handling water systems. And we have established a report with them and to see that once it comes in how we can work with them also.
Unidentified Participant
Sure. And so what is the status of FGD projects? Are FGD projects now happening or are they going to be abandoned? What are the existing projects for ftd?
Nani Aravind Nallamothu
So out of the portal with compliance timelines. We said there is prolonged inactivity. So after discussing with the clients Whenever there is a non moving production of 4264 crore worth of FBD packages We are. We moved some non moving category and we removed it from the order book. And only 906, 36 core workshop for UDP project. Only one project only running which you have considered in the order book value. And we are pursuing this. We are pursuing with the client. And as and when the the activity approvals result from the agency probably will take up these works in that time we are keeping this under the non moving categories.
Unidentified Participant
Sure. Thank you. Thank you very much. I’ll come back in the queue.
operator
Thank you. The next question comes from the line of Darshan Zaveri from Crown Capital. Please go ahead.
Darshan Jhaveri
Hello. Good evening. Good morning, sir. Thank you so much for taking my question, sir. Hopefully I’m audible.
operator
Yes, sir.
Darshan Jhaveri
Yeah, yeah. Hi sir. So just regarding our mining development operations. I. I could not get what I saying was a skill man like the KPV and we are assuming around 30,043 40 crores. But what do we expect this year, sir?
Nani Aravind Nallamothu
Revenue 120 to 100 between we will try to achieve the target. Mainly because this washery requirement. This broadcast is including the washeri they have allotted to us. When we are constructing the washeri our washeri will be ready by December 26. So till the time they have to do this washeri outside the washery. So outside capacities are not available to do the washing. So only limited 50,000 to 60,000 tons per month capacity is only available outside wash. So we are there after arrangement they are taking only to that extent of mine quantity. So the projected we are pushing the department sale to to take the more mining quantity.
But because of the outside constraints they are unable to lift the more major more materials.
Darshan Jhaveri
Okay, so. So is it. Our Wasri is not complete. We’ll maintain quarterly run rate of 2030 crores. Is that like a fair assumption? Yeah.
Nani Aravind Nallamothu
Yes.
Nani Aravind Nallamothu
Yes.
Nani Aravind Nallamothu
That actually that we are pushing now further to increase to another 2030000 tons extra quantity. We are pushing them to take.
Darshan Jhaveri
Okay. Okay. Fair enough sir. And with regards to our guidance. We’ve given a very clear guidance. 6,500 crores. But based on our order book do we see any potential upside that can also happen to this order book to the revenue recognition.
Nani Aravind Nallamothu
See our generally our company execute convert around 40% of its opening order book. Annually we have around 1514,000 orders in hand. Which translates to 40% into. We can easily achieve the projected turnover of 6,500 plus the current Q1 and Q2. The new orders, whatever we are getting also we can able to convert into the turnover. So we are content of achieving the growth. Because last year also we touched around 25% growth. And we are also projecting this year also 25% growth in the compared to the last year. More or less. We’ll try to reach that number.
Darshan Jhaveri
Okay. Okay. Fair. Fair enough. Just last question from my end. In the. You know the other mine, the K3 mine. Is there any constraint of washing or how that ramp up happen?
Nani Aravind Nallamothu
The scope is only mining sir. There is no linkage of washri to that. And it is the responsibility of the client to lift the material without linking to the washery. So we are. We just touched the coal now. But because of the rains and all we are not producing the coal now we are shifting this to the next one. One maybe depends on the monsoon. We’ll start the coal production by next month.
Darshan Jhaveri
So sir in for the full year FY27. What kind of new could we estimate? Approximately is also fine sir.
Nani Aravind Nallamothu
Because this was constraint is there for Kasra. So we can take average of 150 crore yearly basis for next year also 150 to 200 between and for the. For the KVP we can touch around 120 to 140 crore revenue.
Darshan Jhaveri
Okay.
Nani Aravind Nallamothu
We will touch next year.
Darshan Jhaveri
Okay. And the mining what margins do we get usually sir?
Nani Aravind Nallamothu
So during peak related capacity both the plants, both the mines with Peak red capacity weighted average of around 22%. We are expecting so because these are the development phase now over. Once we reach the peak rate capacity by 28 onwards we can touch around 22% weighted average. But till the time maybe average of 15 to 16% level because Vashiri is also not started in TAFASRA maybe around 10 to 15% we can touch minimum and depends on the readiness of the Vashiri it will go up to 22%.
Darshan Jhaveri
Okay, fair enough. So yeah, that’s it from my side. So thank you so much. All the best.
operator
Thank you. The next question comes from the line of Dinesh Karni from Finite. Please go ahead.
Unidentified Participant
Hello, I’m audible.
operator
Yes sir. Yeah, please go ahead.
Unidentified Participant
Thank you very much sir. And you know a really great set of numbers and you the guidance you have provided. My question is. See we have seen mdo the kind of businesses we have got is not many in the last say two years, one and a half, two years. So what’s your specific outlook on these kind of businesses? How many are open for bidding now and how large this could be in terms of order book say in the next two, three years.
Nani Aravind Nallamothu
So in terms of the MDO is concerned we are planning to continue with these two only right now. And we are not thinking of bidding for any new further MDOs till the time we touch this peak rate capacity and coking coal MDO2 are there and we are looking at iron ore. If any MDO is available, iron and rhoar side we will look at that opportunity.
Unidentified Participant
Okay, so is it because of our capacity constraint or you think the business economics and financial metrics are not equally lucrative? What’s the reason?
Nani Aravind Nallamothu
No, no. This because we are new to the MDO business and we want to stabilize our business, existing business and then we want to take a further business in the mdo.
M. Ramesh
Now I would add to what Arvinder said Ramesh here you see as an opportunity. It is a huge opportunities is there? I think this we have touched upon a couple of times. For example coal India that is called what is called the last mile, first mile connectivities where first mile connectivity nothing from the mine side to the loading area which includes the railway siding, the balancing facilities and then the excavation facilities and then sorry this one or excavation facilities and then more importantly the mechanization of the material handling coal India has got an investment of 53,000 crores.
Now that is how we know. For example our initial experience was what we have taken as an EPC contract with Tyson Group at Kurmitar and Salvira. We are trying to gain certain experiences in doing an execution also of course MDO is a developer in these two projects. But as an opportunity it will be there. As far as we are concerned, our capacity as on today 9 million tons. Perhaps down the line we can look at one more MDO based on how these two things shape up and then based on the augmentation of our revenue on the network then we can certainly look at it and it is definitely a lucrative business.
And our work, our organization synergy is better because we can our got a strong execution strength also. And then post completion we can do the operation maintenance ourselves. For that way it deals well with our objective. But the business wise opportunity can be substantial both in the iron ore handling and the coal handling.
Unidentified Participant
Okay sir, that really sounds great. And one more thing sir, you mentioned that only 5% of revenue is from outside India right now. So around 90, 95% is within India. So just wanted to understand the business profiles, you know in the foreign countries and Indian entities. Where do you think is there is in terms of like more opportunity with better margins? Because I believe there is some working capital constraint as well, right in terms of number of days or receivables and stuff like that. So if you could just put some light on this please.
Nani Aravind Nallamothu
International sir, we are right now. Earlier we used to do the ETC jobs outside and we completed all the ETC jobs and some of the countries were repatriation back that money back to India is again the difficult challenges we faced in Bangladesh and some of the countries. We stopped doing all ETC outside and we are only focusing on the WINDM business outside India, all Gulf countries and Nigeria. We completed the ETC and we have just started the O and M service and manpower supply and overalling activity where we are getting good margins in O and M than the etc.
So we are more focusing on the ETC business at this moment. There are a lot of opportunities are.
Nani Aravind Nallamothu
Available.
Nani Aravind Nallamothu
Internationally but we are pursuing based on the profile and clients. So we are now bidding for one case of Fujira where the material handling work we are now building along with the Tyson group. So we are looking at the better opportunities but at this moment we are only focusing only on the Y N M and oral inbox of the okay.
Darshan Jhaveri
But where are the better payment terms within India or outside? Like because I don’t know how large our operations are there in terms of manpower handling and all that. Like yeah, the payment terms I was asking.
Nani Aravind Nallamothu
The terms are because this O and M service, because they’re continuing Services which requires continue manpower and also they are releasing payments within 30 to 45 days. From the within 30 days to 45 days for an average they are releasing the payment.
Darshan Jhaveri
Okay yeah good please go plans and.
Nani Aravind Nallamothu
There are no problems we are facing in terms of realization of bills are concerned. Maybe weekend is delays but we are getting the payments on time without any.
Darshan Jhaveri
Sounds great. And my last question is sir in terms of waterworks like what’s really happening in the industry because we’ve seen some of the other players are not reporting great numbers and you know which is reflected in their stock price like it was not maybe you know the growth as expected as it was earlier maybe like two or three quarters ago. So what’s really happening in this and what’s your view and you know outlook there?
Nani Aravind Nallamothu
These are. These works are now we are executing works in UP government where they under J1 mission there is a timelines which expired for these LG1 missions in the in November 24 and subsequently last budget also they extended the timelines subsequently government center is a 50 50. It’s a state government 50% funding and central government 50% funding from state side because of the Kumbhal they diversified their funds to the diverted their funds to the Kumbh Mel expenditure and now subsequently during Q1 they released the their portion of the money. But the allocation from central government there is a delay.
So there is a Unless and until the central government funds release the certifications and release of the bills delays in the certification of bills are happening. And this the PMO received certain information that you know some of the states they are now.
M. Ramesh
Hello.
M. Ramesh
So there are certain reports they received and some inquiries are going in some of the states that you know whether the funds are properly utilized and released or not. And all some issues are going on with some of the states. So did all the UP state and they are giving in the form of reports you know if then they’ll release the funds. So we are hoping that you know Q2 probably some amounts probably the government will allocate some funds to UP government and we’ll we’ll expecting to receive the money by Q2 and Q3.
Darshan Jhaveri
Okay, that really sounds great sir.
Darshan Jhaveri
And all the best.
Darshan Jhaveri
Thank you very much.
operator
Thank you. The next question comes from the line of Mahesh Patel from ICIC securities to Please go ahead.
Mahesh Patel
Yeah hi for a couple of clarifications. So the exceptional item you mentioned what was the.
operator
There is a lot of disturbance and your audio is not very clear.
Mahesh Patel
Yeah. Is it clear now?
operator
Yes, it is better Now.
Mahesh Patel
Yeah. So the exceptional item you mentioned. Sorry, I did not get it. You mentioned 55cr as the right adjusted pet.
Nani Aravind Nallamothu
Yeah.
Mahesh Patel
Okay. Can you give the to the top line, the revenue impact of that? What was that exact number?
Nani Aravind Nallamothu
288 crore is the top line.
Mahesh Patel
288. Okay. And this is one time. Right. Next quarter onwards this won’t be very.
M. Ramesh
Yeah, yeah. So there is a. There is a seasonal quantity which we caught in the first quarter quarter from the unpaid royalty from. From the client. Some of the vendors that we. Royalty as a penalty that resulted in more. More revenue that resulted more.
Mahesh Patel
Okay. So 288cr is the revenue 19% EBITDA margin. Right?
M. Ramesh
No. Fat margin.
Mahesh Patel
Pat margin. 19. Okay. Okay, sir. And sir, just want to understand. In the base quarter Q1 last year did we have any FG us in our inflow.
M. Ramesh
Investment is going to come down with the recent supreme court order. But more of opportunities will come wherever power plants are installed near the cities. Air one and tire two cities.
Mahesh Patel
Right. And this one order that you mentioned, apart from this 4264 of 946 here. Right. So that is currently ongoing the execution.
M. Ramesh
Yeah. This will this year will complete the cardinals.
Mahesh Patel
Okay. This will complete. Okay. Okay. So yeah. Thank you.
operator
Thank you. The next question comes from the line of Bhagwat from Prosperity Wealth Management Private Limited. Please go ahead.
Bhagwat Nayak
Thank you for the opportunity. My question is regarding the income tax rate for the quarter. It seems to be comparatively higher. Could you please comment on this and provide an estimate for the severe tax rate for financial year 26.
M. Ramesh
See the exceptional revenue what we are generating from the riverbed minerals we floated from LLP. LLP tax rate is at 35% whereas the company rate is around 25%. So because of the exceptional profit we realized from the LLP we provisioned for the 35% tax on that. So with the resulted 4% overall on the turnover.
Bhagwat Nayak
Okay, okay. So I got a clarity on that. You mentioned the one of transactions, the 288 you mentioned the revenue and 55 is the tax on that. Is that correct?
M. Ramesh
Correct.
Bhagwat Nayak
So the total pad that is reported is 81 crore on the consolidated level. So this is not getting essential. Actually liquidity is helping understand that.
M. Ramesh
See the. The LLP, the LLP is what we standalone is around 49 crore of PAT. We recognize. Console is around 80 crore of revenue. 80 crore is a pack. 81 crore is the pack we recognize.
Bhagwat Nayak
Yes. Out of that 81 what is the 1 of the portion of that.
M. Ramesh
81 sorry, your question.
Bhagwat Nayak
Out of the 81 crore total profit reported what is the non recurring part of that.
M. Ramesh
Non controlling industrial thing?
Bhagwat Nayak
No, I am asking out of that 81 crore what is the one off item that is included? You mentioned 55 crore. Is that on fat level or EBITDA level? That is what the query is.
M. Ramesh
So yeah.
M. Ramesh
40 standalone we touched around 4049 crore. And there are some second overseas projects. 12 crore loss is there in one of the overseas projects. So that resulted the lower pact. So 55 is from the LLP 15 crore loss. We recognized in the power Mac FJD1 of the international project. So remaining all are from 80 crore overall net to net effect is 80 crore. 81 crore.
Bhagwat Nayak
Okay. Okay.
M. Ramesh
There is SPV subsidiary MDOs are also there. So their nominal profits we realize and only except that because of 15 crore of losses there in reverse that we we negate. We added to that and net effect will be 81 crore is a patent for the.
Bhagwat Nayak
Okay. Okay. My second question is regarding the borrowing. So could you please update first the total borrowing size of Q1 and the blended interest rate on the same.
M. Ramesh
Right now the working capital we our utilization is around 600 crore. Is our limit. Around 543 crore of utilization is there Overall and overall including equipment loan and other borrowings all together around 753crore. 753 is there. 753 is the total grass state.
Bhagwat Nayak
Okay.
M. Ramesh
Interest rate for equipment loan is around eight eight and a half percent. But working capital it is average of 9.2% interest rate.
Bhagwat Nayak
Okay, understood. Thank you so much.
operator
Thank you. The next question comes from the line of Vinay from Hardway Investments. Please go ahead.
Vinay Nadkarni
Yeah. Just couple of questions on this Waterworks. What is the total outstanding as of date?
M. Ramesh
300 crore we are supposed to receive in the form of receivable is around 230 crores. And 100 crore of uncertified revenue is there. So around 330 to 340 crore roughly is the outstanding pending certification plus receivables together.
Vinay Nadkarni
Okay. Unexecuted contracts are how much in this.
M. Ramesh
Around 65% surround around thousand crore will be Roughly the unexecuted value is there.
Vinay Nadkarni
Okay, so 30001000 crores are unexecuted. And the amount which we have received in Q1 total amount.
M. Ramesh
Around 70 crore.
Vinay Nadkarni
And did we execute anything during this quarter?
M. Ramesh
Yeah, we are executing on the pending certification from the department. Unless the allocation of fund is there that they are not certifying the bills it is in the form of WFP builds up there.
M. Ramesh
So we have gone slow or we are continuing with completion of our project.
M. Ramesh
If you look at my working capital utilization, that grass debt has increased mainly because of this. We are pumping money to the projects and we are trying to conclude the entire work during the current year. And we want to bring this majority of the gram punches into the WINDM operation so that we can generate more revenue in the WINDM operation.
M. Ramesh
So we are.
M. Ramesh
We are focusing to conclude the entire activity around 208 crore of. 215 crore value of works. We are trying to. 215 panchayatis. We are trying to close this year.
Vinay Nadkarni
So 1000 crore will be added in this year you mean to say.
M. Ramesh
Depends on the certification from them.
M. Ramesh
So we’ll.
M. Ramesh
We are pushing them, sir.
Vinay Nadkarni
Okay.
M. Ramesh
Similarly it will happen this year otherwise will get to next year.
Vinay Nadkarni
So. So just one last question on the fresh execution this quarter. You’re saying the unexecuted, I mean the unbilled revenue plus build revenue would be how much? Roughly
M. Ramesh
350.
Vinay Nadkarni
Okay.
M. Ramesh
Total as of today.
Vinay Nadkarni
Okay. Thank you. Thank you very much.
operator
Thank you. Ladies and gentlemen, in the interest of time and no further questions I will now hand the conference over to the management for closing comments.
Nani Aravind Nallamothu
Yeah, Ramany again. Thanks everybody. Thanks again. What you doing the finance and other aspects. I think as I said, you know 10,000 crores is the target. What we get that should enable the computing. The ongoing MTO jobs will come more on streamline and that will increase the revenues. And apart from the power sector business which is looking up with the opportunities what have been bought out. There is a new segment which we are also looking into the battery energy storage. Because as you know the government of India plans to pump up storage and the battery storage they are required to take care of the energy imbalance.
In 2030 they are planning to add at least nearly about 40,000 megawatts. And certain projects we are looking at as an opportunity, the battery energy storage. Recently our people had gone to China also because battery supply and all that is an important segment. Rest of the integration and then execution and putting up on the financial engineering inputs required is there. We are also looking at it. And as I said earlier, the Green Power first initiative, what we have taken in Bihar and projects that has come for the future focus is the better energy storage, pump and storage and then the continued focus on the solar power and wind power.
And that will be a area of business interest for us also. And of course the existing strength and the ongoing things what we are doing in the power sector will continue to be there with our leadership in that both in the institutional side, civil fire and the OEM side and the non power sector where we have clearly established our presence and also our experience in the railways and roads and metro projects will continue to play. Therefore there is a wide basket of opportunities available with the continued investments coming. I think this year they would Overall investment about 11.2 crores is the central government allocation for the infrastructure and that should go increasing the pace in the coming years also.
Therefore what is expected is about 147 lakh course of investment is expected to come in the next five to seven years by the central government alone as part of a continuation of national infrastructure pipeline. And we are into many aspects of the infrastructure infrastructure business apart from the power sector business also. And that should help us into see that you know our growth momentum is maintained. Thank you.
operator
Thank you on behalf of Nirmal Bang Equities Private Limited. That concludes this conference. Thank you all for joining us and you may now disconnect your line.
M. Ramesh
Thank you.