PSP Projects Limited (NSE: PSPPROJECT) Q1 2026 Earnings Call dated Jul. 30, 2025
Corporate Participants:
Unidentified Speaker
Pooja Dhruve — Company Secretary and Compliance Officer
Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer
Hetal Patel — Chief Financial Officer
Analysts:
Unidentified Participant
Shravan Shah — Analyst
Vaibhav Shah — Analyst
Ankita Shah — Analyst
Suresh Balasubramaniam — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the PSP Projects Limited Q1FY26 earnings conference call. As a reminder, all participant lines will win 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 attached and phone. Please note that this conference has been recorded. I would now hand the conference over to Ms. Pooja Durve, company secretary PHP project for the cautionary statements. Thank you and over to you ma’. Am.
Pooja Dhruve — Company Secretary and Compliance Officer
Thank you and good evening everyone. I am pleased to welcome you all to PSP Projects Limited Earning call for analyst and institutional investor to discuss quarter one financial results. Please note our copy of disclosure is available in the investor section of website as well as Stock Exchange. Anything said on this call which reflect the outlook for the future or which could be constructed as a forward looking statement must be reviewed in conjunction with the risk that the company faces. Now I shall hand over the call to Chairman SH for opening remarks. Over to you sh.
Prahaladbhai Shivrambhai Patel — Chairman, Managing Director and Chief Executive Officer
Thank you. Good evening everyone. On behalf of the management of PSU Project Ltd. I welcome everyone to the Earning conference call to discuss on quarter one FY26 FY26 quarter performance. We concluded the board meeting this afternoon and uploaded the necessary collaterals on the Stock Exchange and the company website. Please note the transcript of the call will also be made available on the portal. During quarter one FY26 the construction industry was suffered by a labor shortage and PST projects was no different during the quarter we faced labor shortage in the month of April, May 2025 and during FY26 there is there was 37 FY26 there was 37% shortfall in labor.
Now the good part. At present we are at a 90% labour shortfall. The minor impact on the of this and monsoon will come in quarter two FY10 things also. But I am confident of the shortfall further reduces. Starting August 25th. During the quarter the employees was spiraled to 6.8% which is usually in the range of 4 to 5%. Because of new order wings from Adani, the company has hired employees at various levels whose impact can be seen in the employee cost. Secondly, majority of the newly awarded projects worth Rupees 1600 crore that started after March 2025. They’re all under initial stage of construction that is foundation stage. During this construction stage that deployment of labor is always on the higher side while the labor availability was less during the same period. Hence we faced a negative impact on our profitability, another minor impact was on account of monsoon In Gujarat the monsoon season comparatively began early this year hence almost hence we saw some impact of the same in the month of June 2025.
During this quarter the company has also had a book at during this quarter the company has also had a book additional expense worth Rs. 4.5 crore on account of UP projects. Also. Company has reported an outstanding order book of 6514 crore as year on year growth at 11%. As on 30 June 2025 the order info reported was 107 crore excluding GST of the current outstanding order book of Adani project comprising of 27% and balance. Are non Adani projects. With regards to order inflow effort for FY26, we expect a new project to be confirmed and service orders to be received from August 2025 onwards. At present we are in various stages of discussion and project workings are going on. We expect this to conclude soon. During quarter one FY26 company has successfully completed eight projects. Construction of residential project of Oyster at assignment Shantigram Precast elements of compound oil and Brinks to Larson Tobruk for high school relay Project Nestle Phase 2 Field Structure Version Project Ocean Phase 2 at Sino Project Prasad Plant of Deepest Chem Debt Ltd.
Copper Ltd. And Mundra Design and construction of school building in Jodhpur, Rajasthan and Precast during the last phone call I mentioned certain projects which did not take off as per our planning. I would like to share updates on each of those. Fintech building at Jute City the client side delays are now over. The shortfall in revenue for the quarter was due was due probably because of unavoidability of less availability of labor. GBRC has received clients approval and the. Project work is going on well. Science it is the project work is going on well. In this quarter we made a decision to move from conventional format to modular. Format system that is gem form. Due to this now work happened in quarter 26 on the project but eventually due to this technology change now I’m confident to see the closure of this project as per plan DNC the problem still but persist Work is on hold due to land acquisition SNC there has been considerable delay in the receipt of drawing from the client side and hence work is the finishing has not been able to start. There are no ongoing delays in land acquisition Today regarding the definitive agreement, The Adani Info Limited acquirer has acquired 44. 76,000 Equity Shares pursuant to the Open. Offer representing 11.32% of the paid up equity share capital of the company. The settlement of open offer was completed on 06-11-2025 and all subscribing shareholders were duly paid against the shares tendered by them in open offer. Now let me talk about some of the project updates like Coca Cola. I think the project started last August. And presently we are in a good start shape and size as the most. Of the structure part is over. We are currently working now on the. Finishing part and the general development of the project. Yes we had a last. Last. Last year only we started that project. And during last monsoon we suffered a lot lot of delay and some delay today. This year also in April May. But overall the buildings are out of. Business and at the level of first and second floor. So probably now the finishing activity in. MEP will gear up on the T. Shakti Vidyala project at Baroda Palladium wall. Yes there was also. This was the same project which we started last year in the season of. April May and we suffered a lot of delay last monsoon also and this. Year also we suffered a little. But now the all the drawings are. In place and most of the activities in the basements are on track. Now the project should move on from. Here on a regular basis with without any much failure from August onwards. With this I conclude my remarks and. Now I would like to hand over the call to Ms. Ethel Patel to take through the financials in detail.
Hetal Patel — Chief Financial Officer
Thank you sir. Good afternoon everyone. The financial performance during the quarter ended 06-30-2025 is as below Quarter 1 FY26 versus Quarter 1 FY25. Revenue from operations for the quarter is at Rupees 513 crore versus 612 crore which has decreased by 16% on YY basis. EBITDA for the quarter is at Rupees 24 crore versus 73 crore decreased by 67% on YY basis. EBITDA margin is at 4.77 versus 12%. Net profit for the quarter is minimal I.e. 13 lakhs versus 34 crores reduced by 100% almost on ROI basis. Decline in revenue from operations is mainly attributable to labor shortage which has been. Explained by PSR in his speech. During the quarter under review, company had to incur additional expenses for UP project to the extent of 4.5 crore and other expenses include ECL provisions made to the extent of 8.68 crores which was 4 crores in quarter 1 FY25. During quarter 1 FY26 company has incurred capex of 32 crores. Gross block as on 30-06-25 is 627 crores and net block is 3322 crore. Would like to mention few of the important balance sheet Numbers as on 30th June 25th. Long term borrowing 44 crores including short term maturities of 25cr. Short term borrowings is 338 crores excluding short term maturities of 25Cr.
Net unbilled revenue is at 556 crore. Retention is 137 crore. Mobilization advance is 326 crore. Inventories 344cr which comprises of 158 crores of consumption material 161 crore of work in progress and 25 crores of finished goods. Out of total sanctioned credit facilities of 1497 crores. Company utilize 864 crores including fund based utilization of Excluding fund based utilization of 202 crores and 431 cr is available for utilization as on June 30th 25th. The company has total fixed deposit of 268 crores out of which lien free deposits are 74 crores. Every worth 169 crores are under lien with the bank for credit facilities and FD worth rupees 25 crores are given as a security deposits to the client.
Work on hand as on 30 June 25 is 6514 Cr. Detailed bifurcation is available in the uploaded presentation. That concludes updates on the financials and we are now open for the question and answer sessions. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer section. Anyone who wishes to ask question may press STAR in one on the touchdown telephone. If you wish to remove yourself from 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 Shravan from Dallas Capital. Please go ahead.
Shravan Shah
Hi. Thank you for the opportunity. Sir, couple of questions. So just first on the ADAM front and then we’ll come on the detailed question. So now in terms of the revenue, EBITDA margin and order inflow for FY26. What’S the revised guidance. Order inflow. For FY26? What? For FY26 what is the order inflow that we are looking at? Revenue and EBITDA margin.
Prahaladbhai Shivrambhai Patel
We are in the presently in projects. Once rupees eight to nine thousand crore series. So there can be chances that probably. That order inflow for this year would be in the range of about already if I say it will be in. The range of 7,500 to 8,000. Even the guidelines still I doubt because. As we have faced a big problem in the first quarter and C4 go through with the second quarter last time also I told that that let me. We’ll give you revenue guidelines after completion of first two quarters. Because all these project which we are going to get from the group company also they are going to start somewhere. In the second quarter or maybe third quarter. So better we give revenue guidelines on. The verge of second quarter completion and. EBITA margins here still we are in the range of the same thing. What we have been telling it will be in the range of 8 to 9%. So.
Shravan Shah
Okay. Okay. So from the Q2 itself, whatever the challenges under the labor shortage and plus extra provision everything given now as you are saying that the labor shortage has reduced. So from Q2 itself can we start seeing 8, 9% kind of a margin or it would be mostly in the third and fourth we can start seeing. And is there any further provisioning for any of the UP or any other project is still pending?
Prahaladbhai Shivrambhai Patel
No, no, nothing is pending at E2P actually and this time also which has changed because most of the projects are. In the face of Andover. And since the hospitals are not operative, people are not taking care about the project Department is not looking after the. Project in a very efficient way. The cost which we are incurring today. Is mostly because of the defect being. Not well maintained by them. So we are not sure. But they are not more than 5. Crore and it can be within the cycle. There can be some cost which can. Come still in the second. Looking to my first quarter’s experience, why. These experience came through at UP side. Because I was aware that the projects have already been handled why this cost is coming up. But the problem is with the department. Since the closure of the project has not happened, they are taking undue advantage of the contractor and that how it has happened. So.
Shravan Shah
So from the Q2 itself can we start seeing 8%, 9% kind of EBITDA margin?
Prahaladbhai Shivrambhai Patel
Yeah, it should be Q2 or Q3, but probably I would expect also in. The full Q2 part only. Okay, okay. And. And apart from Adani, we are not looking at any other order inflow. Now this seven seven and a half. Thousand crore as we said last time. Also if there are prestigious project there we can reach. So one of the large project of. Gujarat Development has came. The tender has been rejected as single tender came up. So that now the tender will come. In this month only. So probably if we get qualified we. Will be bidding for such types of project. But mostly it will be from other. Okay. Okay. And.
Shravan Shah
And then given that now so let’s. Let’s see even if whatever the similar run rate we can do 500 or maybe 600 crore in the or maybe a lesser than that in Q2. So second half how one can look at. Because whatever the new orders that we are looking at seven seven and a half thousand crore from where when one can start seeing the execution to do coming in and for next year let’s say if this comes by let’s say December so next year out of this seven seven and a half thousand crore how much one can look at in terms of the revenue for next year?
Prahaladbhai Shivrambhai Patel
Yes, if you consider this as an order inflow of 7 7,500 probably that will come starting the month of third quarter. And I say this, most of the projects are in basement as we are. Doing most of the projects for real estate. So probably we can expect that revenue to come to the extent in the last quarter only. So as. Our guidance for the project the revenue means stabilize in second quarter also. But whatever new orders which are coming in the second quarter will get close in terms of going through with the work at third quarter. So probably the main part can start after in the fourth quarter only. Okay.
Shravan Shah
No, no. I’m just trying to understand. So so currently currently we have the existing order book of 6100 crore. And plus what we additionally get seven seven and a half thousand odd corrode. So this would be a close to 1314,000 crore. And plus whatever we will be doing let’s say maybe a 2500 odd crore. So 11,000, 12,000 crore would be there by end of this. So next year how one can look at can it easily one can do us four and a half thousand crore kind of a revenue. That’s the fair way one can look at.
Prahaladbhai Shivrambhai Patel
Yeah. Four and a half thousand we can all easily say because now the order book will be multiple of 2×2 to 3x. We’ll be easily able to do the revenue.
Shravan Shah
And and then in terms of the working capital for doing this two aspect. One is the employee cost of whatever we have currently this quarter 35 odd crore. So additionally how much more one can look at in terms of absolute level still we need to hire as we are still to get the more orders. So that is one and second on the working capital front, how much more because of this the working capital can can go up or can come down. And then as a resultant in terms of the date level, how one can look at the gross debt level.
Prahaladbhai Shivrambhai Patel
See, as far as working capital or debt is concerned, we should be in a better position by end of second quarter or maybe maximum by end of third quarter. Before the whatever from orders which we. Are getting from the Adani group it. Is considering 5 to 10% so far. Initially once you start the project it is 5% mobilization. And once the mobilization is over, it is further 5%. So even if you are completing 7,500. Crore water info from the group only. We will be getting minimum 750 crore as an advance. So probably working capital should not be issue. And whatever working capital which we are. Using today from the banks as fund base can get reduced to elastic level. By end of third quarter. Okay.
Shravan Shah
And last just a clarity sir. Order book project wise, whatever we given in the presentation the all the numbers are same as as it was in the FY25. So is it a printing mistake or nothing? There is no execution in any of the project.
Hetal Patel
There is no printing mistake. It cannot be like all the numbers are same. That can be the total value of the project. But remaining work to be executed must have changed.
Shravan Shah
No, that’s the same. That’s what I’m asking.
Prahaladbhai Shivrambhai Patel
Okay, again we’ll recheck seven. Let us. Let me. Okay.
Shravan Shah
Okay. No, no. Shall. Thank you and all the best. Thank you sir.
Prahaladbhai Shivrambhai Patel
Thank you.
operator
Thank you. A reminder to all the participants. You may press star N1 to ask question. The next question is from the line of Webhav Shah from JM Financial. Please go ahead.
Vaibhav Shah
Ma’ am mentioned that there is a ECL provision of 8.7 crores. And last year also it was 4 and a half for. Thank you. One regarding to which project.
Hetal Patel
The ECL provision we are doing based on the calculation for the tenure of the receivables means all new receivables bracket that we provide on a higher side. So one provision is that and regarding panda pool we have provided in full now. So out of 8.68 we have provided around 4cr 4panda 2 project. So as of now all 17cr which were receivable from underput that has been provided for. So. Okay.
Vaibhav Shah
So do we expect some number in Q2 as well on the ECL side or. Everything is largely done for the existing.
Hetal Patel
Book due to it can be because.
Hetal Patel
See it’s Purely based on the formula ECL formula which we put on the receivable numbers. So that can there can be some amount of provision in Q2 also depending on the receiver. Yeah, B1D P we have already provided.
Vaibhav Shah
And what is the receivable number as of June?
Hetal Patel
Yeah, it is 525cr as on the 30th of June.
Vaibhav Shah
Okay. So we have seen a sharp increase in debt as well on a qq basis around 100 crores increase. So this is due to rise in working capital.
Hetal Patel
You are talking about.
Vaibhav Shah
Sorry, broadside has increased from 270 crores to 382 crores on a Q basis.
Hetal Patel
Yeah that is mainly because of some of the CapEx acquisition we have already as I already mentioned 32cr of CapEx we have incurred. So some of the CapEx we have we have to pay 100 advance. So because of that it has increased and to some extent yeah because of this increasing working capital requirement we had to borrow that.
Vaibhav Shah
Okay. And secondly we had one a project of Ahmedabad Airport cityside development of around 600 odd crores in last year in Q4. So I was not able to see the project in the revenue in the order book sheet that we have in the ppt. So have we missed putting it in the PPT or there’s some or by some cancellation or change in scope maybe.
Hetal Patel
That we will check? Check.
Prahaladbhai Shivrambhai Patel
No, no the project is there but I think they must have missed it. We’ll check it. Okay.
Vaibhav Shah
Okay. Secondly if if we look at the the order book movement and over a QQ basis there’s a difference of some 300 odd crores. So have we cancelled any order in the quarter?
Hetal Patel
Yeah, to some extent a few projects. One project we have short closed so still that project is running but the execution amount has been reduced that is srf, DCN and that might have given the effect in the work on end.
Vaibhav Shah
Okay sir, what is our Capex guidance for FY26 and 27?
Prahaladbhai Shivrambhai Patel
It will be in the same range range of 4 to 3 to 4%. Or because these all projects from other group is on large scale can go.5% plus or minus otherwise it will be the same range.
Vaibhav Shah
And so last you mentioned that there are some delays in payments from SMC. So you have not done any work in Q1, is it correct?
Prahaladbhai Shivrambhai Patel
No, no, no no. There is nothing like payment delay in. Payment and we have not worked. So it is absolutely because payments are coming on time. But the only thing was the labor issue before which we are not able to Execute majorly because in the first part.
Vaibhav Shah
So what will be a targeted revenue from the SMC project for FY26? And earlier we were targeting to complete the vision FY27. So still we hold that or it will spill over 28.
Prahaladbhai Shivrambhai Patel
No, no, no. It can’t go beyond 27 because it has to be completed. And we are on now track because all the finishing activities are now in the currently started. They just concluded before March. Even the. Before the quarter and even the F is also now approved. And the materials have been ordered from oversight also. So probably after one month, one and a half or two months during this second quarter end or third quarter start. We’Ll be in a better position to. Work on all the activities related to MFB civil finish, interior and facade. Okay. As of now 30% work is done, right. 44 is the original value and 960 is outstanding order. Say that the work done value is only 35, right? Yeah, you’re right.
Vaibhav Shah
Yeah, you’re right. So okay. Okay. Thank you sir. I’ll call back in the queue.
operator
Thank you. Thank you. The next question is from the line of Ayush Sabo from Choice Institutional Equities. Please go ahead.
Unidentified Participant
Yeah. What is the margin that we can expect from the non Adani businesses, the non Adani order book and also that do we have the same internal hurdle rate for these orders?
Prahaladbhai Shivrambhai Patel
So we always give a guideline of 9 to 10% for non Adani. Previously also last year also we have been giving a guideline of 9 to. 10% and the same thing we’ll be. Expecting from Adani group. So there is nothing like that. There will be less margin from Adani group and more margin from other.
Unidentified Participant
What. What will be the order Pipeline in FY27 from the AB Group? Just give a rough approximate.
Prahaladbhai Shivrambhai Patel
Guid. Your voice is cracking.
Unidentified Participant
What would be the Adani order info that we could get in FY27 one year down the line? Like what?
Prahaladbhai Shivrambhai Patel
What? Is there any guidance? That’s what I said. It will be between 7 to 7,000 to 8,000. Okay.
Unidentified Participant
For FY26 and FY27 that.
Hetal Patel
No, no. 20. I am just saying for FY26 only. This will be the. These are the build pipelines. These are the projects which are in date. And we are in discussion of these two projects presently. So these are the expectation from Adani group this year only, not next. Next year. Still we have to see what their new projects are coming at Tarawi and Mumbai airport.
Unidentified Participant
Okay. So could you give some approximate guidance that next Year. You know what could be the possible other issues? Would it be in the same range? Because it’s true.
Hetal Patel
Next year, next. This year we can give a guideline. On which the projects are under discussion. So for next year, what are the. Projects which are going to come from their side still we have to work on. And probably even if they have that projection of next year they will be able to give the guideline after two quarters. Okay. Okay.
Unidentified Participant
Thank you.
operator
Thank you. The next question is from the line of Ankita Siddharth Shah from Elara Capital. Please go ahead.
Ankita Shah
What kind of project are we expecting from Adani Group? Do we have a pipeline of projects identified?
Unidentified Participant
See, I will name you some of the projects which we are into discussion. That is the residential colony at mundra which is 1250 crore which is from Adani. Another second is a township at mundra which is 2,300 crore. Museum at Ahmedabad which is 100 crore. Sample development which I said that this is the government. And which we are going to bid is about 800 crores. That is secondary residential project at Dharavi which is 830 crore. Infrastructure work. Commercial tower at Santi gram which is 100 crore. Development work at Ahmedabad airport which is 610 crore. Residential residence at Shantigram Ahmedabad which is 550 crore. And autolate Shantigram which is 580 crore. And institution building at Shantigram is 750 gar. So these are the projects under discussion with them.
Ankita Shah
Okay. Okay.
Ankita Shah
And we expect to make similar margins that we’ve highlighted in the guidance on this. And only if they meet this threshold you are going ahead. Am I correct?
Prahaladbhai Shivrambhai Patel
Yeah. Yeah.
Ankita Shah
Got it. So this was all from him. Thank you.
Prahaladbhai Shivrambhai Patel
Thank you.
operator
Thank you. A reminder to all the participants. You may press star and one to ask question. The next question is from the line of Balaj Rubhimaniam from Orient Capital. Please go ahead.
Suresh Balasubramaniam
Good evening, sir. Sir, I just want to understand about labor shortage. It’s been 37% to right now 19 percentage of shortfall when we can expect complete recovery. On that labor shortage side we could share a few key reasons. Like what are the specific things are there foreign labor shortage whether it is because of salary or lack of facilities. And how we are deal this issue compared to the industry. And because without shutting out these labor issues whatever the numbers we are discussing is not going to come. This is my first question, sir.
Prahaladbhai Shivrambhai Patel
Infrastructure which we are providing for labor. Is little bit less to other peer group companies. It is absolutely because of the market. Of April May is The season where the people are going for marriages. And it is absolutely. And if you understand decent, there were. Two eats and both these were nearby. 15 to 20 days in June. So probably that is the only reason where we. Where we there was a shortfall. Also we have to understand one more thing. When we are starting any project after March. So that’s the period where the people would like to go back for their this reason of marriages and all those things. Otherwise we can when we start off the project there, they would not like to come start a project which has started in April. If the projects have started in November, December, they can have a continuity and they can maintain little bit of 50, 60% labor for projects which has already been awarded to them. And they are working on it.
And what the thing which you are talking about that how we can mitigate. We are absolutely working on high level thinking about technology. How to reduce the. How to simplify the work, how to put in more and more technology in the organization. How to utilize a solid level of shuttering so that we can put less number of labors and do more amount of work. We are also buying some of the technologies from Perry to make double forms. So with the in slab also we are able to make 50 square meters of slab at one go which can be lifted directly to the upper floor.
So we are only understanding the labor situation is not going to help the organization. And this will continue throughout the year. And day by day. The company’s country’s economy is going fast. So we are very much serious to work on that part. Also at the same time we are putting unskilled labor to on a little bit of skill. So some of the skills we can train them here. Also because skill labors are unskilled labors are still available from Orissa and West Bengal. So there also we are working to. Train some of the unskilled people to make them work on skill level work. So companies very much serious to mitigate. This requirement of shortfall of labor. But probably the seasonal impact is the. Only impact which is affecting us. Otherwise. We have initiated so many things which can put our labor requirement to the. 30, 40% less than what we required in last few years of our experience.
Suresh Balasubramaniam
Okay, sir. Secondly, in the Daravi projects around 5,200 interim residential homes for displaced families. I just want to understand like what’s the timeline for these projects when we are like what is the executions things we are doing. And if you could share what kind of opportunity size in that Dharavi projects itself. Like what is the saleable or GDP value or. And what are the share we can able to take it?
Prahaladbhai Shivrambhai Patel
Now Dara is a rehabilitation program. And that houses which are made for at Dharavi project will be given to the evidence. We are living in Dharavi. So it is for us it is. Purely a contract wherein we have to. Construct the houses as per the requirement of the group. That is nothing like that. What will be the sale price or what the price we are going to. Take from the people who are going to stay there in the Dharavi? That’s not our lookout. Our lookout is to just construct that part. And presently the status of the work is that we are in the process of street planning to make basements. Otherwise the project will. Project is meant for 36 months. So probably maybe in October, November we’ll. Be in a better position. To answer your question, once the basement. Starts, when the expansion is done.
Suresh Balasubramaniam
This 5200 displays to go home. Like when we are going to start this project and what is the completion timeline?
Prahaladbhai Shivrambhai Patel
And since that project is already initiated and we are in the process of making ship piling for labor for basement extra position.
Suresh Balasubramaniam
Got it? Got it. Yeah. Thank you, sir.
operator
Thank you. Next question is from PA D from RBSA Investments. Please go ahead.
Unidentified Participant
Hello, good evening. Yeah, my question is particularly with regard to Mumbai project. So what we hear that Adani D is getting really aggressive in the Mumbai market. Apart from the Dharari, they also have Motilal Nagar redevelopment project and the Bandra project. So just wanted to understand that what is the likelihood of us getting the lion’s share of these other development projects and as well as the citizen development in Mumbai. Yes, for the group is concerned now they are the only partner in this company.
Prahaladbhai Shivrambhai Patel
They are not partnering, they are partnering ITDC also. ITDC is majorly concerned among the projects which are related to ports and industry. So probably the opportunity will surely come to psv. As far as we are capable of ending so many projects at one go. So it is more about building the project not getting the product projects. Whether we will be getting that project or not. If we can prove on ground and.
Unidentified Participant
We are able to handle them most of the projects we will be given the first priority always. So. So it is fair to assume, sir. That we are scaling up our team in Mumbai as well or so. Just wanted to understand. So in the anticipation. Yeah, we have already built up our team in Mumbai.
Prahaladbhai Shivrambhai Patel
I think that important people are already appointed. We are starting a small new office also in Mumbai to manage the projects directly from that office. So we Are trying to mobilize on a stronger way and build up ourselves in in terms of management and scalability in Mumbai. Okay.
Unidentified Participant
Okay, thank you. All the best.
operator
Thank you. A reminder to all the participants, you may press star and one to ask question. The next question is from the line of Q. Kumar from Nivesha. Please go ahead.
Unidentified Participant
Hello. Yes, so my question is regarding the capex that you mentioned about the 32 crore where this capex is allocated and I think I missed the unbilled revenue part. Like what is the unbilled revenue in this quarter?
Hetal Patel
Yeah, unbilled revenue is 556 crore and capex is like it’s mainly plant and machinery and that includes formwork for various new sites and cranes for the new sites.
Unidentified Participant
Okay. And my second question is on the precast company. So in our precast industry like what is the utilizations for internal purposes and what is the utilization for the external? Like we are selling outside and if you can tell like what percentage of picass is used in our project. It is not absolutely what is the percentage. Which we are doing for the market and what we are doing for the in house?
Prahaladbhai Shivrambhai Patel
It depends on the requirement of the building and it depends on the requirement of the client. So previously we were not doing too much on the building side Last two. Years if you see we have already. Exhibited most of the projects for infrastructure. That if you have seen bulletin project we have supplied so many materials to a worth of 300400 crore and last one year we have made about 12 lakh square feet of warehousing facilities which was easily which we were able to. Execute on a faster scale and people who are making 15 or 20 crore. Warehouse they are not able to get a good contacted so that the project can be completed on time. Now onwards now we are having three or four projects for group also who. Which we have initiated right from the foundation. Once the foundations are over it is on precast so it it will be. Going on both the direction if we. Have majorly it will be utilized for. But if there is a large requirement. From outside proposals outside the group also will be supplying some of the materials to outside group also customers.
Unidentified Participant
Okay, so there is no percentage for the captive and the outside project?
Prahaladbhai Shivrambhai Patel
No, no, we can define that way it depends. Now as I said that previously we. Were not working too much on building. Now we have started imitation four buildings. Which are about 670 meter high. So if we are working on four. Buildings and if we are already engaged within our own work we may not be able to take outside Orders easily. It depends on the production capacity and. The requirement at site. So if there is a gap in. Between to supply some of the materials in one month or two months we can take the take up that order and probably that won’t be an issue now onwards. Because now this technology is being accepted easily by the market and in on high rise scale. High rise building also people have. So probably the group we will be. Having our own captive consumption in that.
Unidentified Participant
Okay, and the last question is regarding the capacity we have at the precast. Like what is the utilizations if you can define that term and what is the maximum potential or potential of the revenue that we can get if we utilize at peak level?
Prahaladbhai Shivrambhai Patel
See, I think at the start of. The when we started and analysis this precast facility we were targeting about 400500 crore to be revenue which we can generate purely from because plant. And probably now we have reached to almost 50% plus. So within this next one and one. And a half year will be able. To make more and more revenue to an extent of 500.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question is from the line of Vivek Loradia from Nirbhi Asset Management. Please go ahead.
Unidentified Participant
Hello. Yes, I am audible.
operator
Yeah.
Unidentified Participant
Good evening. I noticed that cost of market consume as a percentage of total expense increased sharply to 38.51% in quarter one up from 30.03% in quarter one FY25 which is rise up over 800 basis points year on year basis. So could you please help us understand key reason behind this spike. What is driven rise by raw material prices or change in project mix or anything else.
Prahaladbhai Shivrambhai Patel
See, if you see in the construction industry, if you are doing serial NMLP and interior fit outs depending on the project situation, material components little bit change. If you consider MEP there is a material component will be about 80 to 90% and labor component will be 10%. And if you see the major civil part when we are into four and shell it will be 45 to 50 to 50 and we if when we are in the finishing state it will be 70 to 30. So since we are in doing all such types of project or composition, some of the projects are purely core and shell.
Some of the projects are core and shell with finishing and some of the projects we are doing a chunky core. And shell finishing and mat. So this component cannot be 100 compared to directly with the revenue because in that in that particular quarter what activities were going majorly that is to be done.
Unidentified Participant
Understood. Okay, okay. Or I want to check if companies Currently begin for or involved in any capacity in the Dharavi redevelopment project. Either engagement or throughout any joint venture or anything.
Prahaladbhai Shivrambhai Patel
Then we are. We are going directly and we are in discussion with the group. Because it’s a group companies. Project. So we are discussing directly with them. There is nothing like we are building even the with JV with someone else.
Unidentified Participant
Okay. So if. If we have 100% or something like 10% or. What 100% and what 10%. We are. Hello. Hello.
operator
Hello. Hello. As there is no response from the palace then we’ll move to the next. The next question is from the line of palace Subramaniam from Orient Capital. Please go ahead.
Suresh Balasubramaniam
Thank you sir for the opportunity again. So out of both 6150 crore order book how much is fixed price and how much is from variable price various priced contract and upcoming 7,000 7,500 crores kind of inflows. Also whether we can expect more fixed price contracts or variable price contracts.
Prahaladbhai Shivrambhai Patel
See as far as the group is concerned almost all the projects are not fixed price. It is an open price where the. Cement and steel is with base rate and any difference in the major material they will be taking us. So it’s mostly an item rate contract which will be continuing with so many basic rates. And at the same time we are in at the stage of each and every activity there is a pure written list is done and the discussion of. The rates is done clearly based on the type of work which is to be executed. So I think as far as new projects are concerned there won’t be any fixed price content. And in present I can’t exactly answer you. How much percentage is fixed price and.
Suresh Balasubramaniam
How much is item rate content? Will share you the percentage out of that 6,500 crore. How much is 6,000? How much is item date?
Prahaladbhai Shivrambhai Patel
I don’t know the exact percentage.
Suresh Balasubramaniam
Okay sir. Thank you.
operator
Thank you. As that was the last question for the day I now hand the conference over to the management for closing comments. Over to you sir.
Prahaladbhai Shivrambhai Patel
Thank you all of you, all of for joining us on this earning conference call today. Thank you for your support and trust in us. We hope that we have been able to address most of your queries. In case of further queries you may reach out to our investor relationship advisor. ENY and they will be connecting. Meet you offline. Thanks all again and good evening.
operator
Thank you. Thank you. Thank you on behalf of PSC Projects limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.