PSP Projects Limited (NSE: PSPPROJECT) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Pooja P Patel — Whole Time Director
Hetal Patel — Chief Financial Officer
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Analysts:
Unidentified Participant
Arpit Mundra — Analyst
Shravan Shah — Analyst
Vaibhav Shah — Analyst
Rahul Kumar — Analyst
Vishal Periwal — Analyst
Bajrang Bafna — Analyst
Prajwal — Analyst
Balasubramanian — Analyst
Hemkesh Khattar — Analyst
Bhavin Modi — Analyst
Bhavik Shah — Analyst
Vaibhav Shah — Analyst
Presentation:
operator
Sa. Sam. Sa. Sa. It. Ladies and Gentlemen, Good day and welcome to PSP Project’s Q3FY26 earning conference call. As a reminder, all participants lines will 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 is being recorded. I now hand the conference over to Mr. Arpit Mundra. Thank you. And over to you.
Arpit Mundra — Analyst
Thank you Ina and good evening everyone. Welcome you all to PHP Projects Limited usually FY26 earnings conference call to take us through the results and answer your questions. We have with us management of 3S3 projects represented by Mr. Prair Patel chairman and MD Ms. Pooja Patel CEO and Ms. Rital Patel CFO. Please note that the discussions that we may have today may contain certain forward looking statements relating to future events and future performance. Numerous factors could cause actual results to differ materially from those in the forward looking statements. Please note the audio of the uninsolved is the copyright material of JP Projects and cannot be copied, rebroadcasted, attributed in threat or media without specific and written consent of the company.
Now I would like to hand over the call to Ms. Pooja Patel CEO for her opening remarks. Thank you and over to you.
Pooja P Patel — Whole Time Director
Thank you Arfit for the introduction. Good evening everyone and welcome to the earning conference call of PSC Project Limited to discuss the financial performance of the third quarter and nine months ended December 25th. We conclude our board meeting earlier today. Let me begin with the financial highlights of quarter and the nine month period. During Q3FY26 the company delivered its best ever quarter revenue reporting 771 crore from the operations representing a 24 year year on year growth and an 11% quarter on quarter increase. For the nine month ended December 25, revenue shoot at 1,978 crore reflecting a 9% year on year growth.
The improved performance was driven by strong project execution supported by better workflow availability and improved labor deployment. As of 31st December 25th the company’s outstanding order book stood at 9,178 crore registering 43% year on year growth of this within group project accounts for 59% while the external project constitute of remaining 41% that is 3738 crores. We observe that the breakup of the order book is missing in the current investor presentation. Accordingly, we are sharing the details of major external projects. For your reference SMC High Rise Building 835 crore Vidyalay 325 crore Deployment of Daroi the sorry development of Baroid and Pigeon 280 corrode construction of Fintech building at Gibbs City, Gujarat 264 crore Sabamati Riverfront Development Phase 2245 crores Company orders inflow during Quarter 3 FY26amounted to Rupees 957 crore marking a 1,151% year on year increase.
Since inception, company has completed 253 crore with 82% from the private client and remaining from the government line. As of the. As of the quarter end the company is executing 67 ongoing projects of which 88% are in Gujarat while the remaining 12% are spread across Karnataka Pradesh, Delhi and Maharashtra. During quarter three FY26 the company successfully completed five projects including major projects. Among those include Complex Ahmedabad one of the first stadium of for Commonwealth 2023. 2030 and aiming Olympics of 2036 Terminal 1 and Terminal 2 forecourt area development at Ahmedabad Airport Studio Building for SAP University Industrial Project for tea processing facility for Vari Group.
The company currently has a bid book of 6,600 crore with 60% from group projects and 40% from external projects. We are pleased to say that within the external bid book the company has emerged as the lowest bidder for Ahmedabad. Sorry Ahmedabadi Corridor development project valued at 965 crore. Now let me share certain project level updates. SMC we have completed major work for core and shell for the project and currently MEC and finishing work is going on and facade work will be started starting soon. RVNL out of three buildings, two buildings, four and share is completed.
Third building is going on as per schedule. Currently MEP and finishing activities are going on for Dharat project. Phase one is on handover stage and phase two project. All the major activities are going on as per schedule. Other than that in the matter of PSE versus B1D, BNCMC CSP projects will receive the favorable Arbitral award arbiter award dated 11 January 2026. The arbitrary tribunal has directed BNCMC to pay PSC projects a principal amount of Rupees 61.44 crore. Additionally, BNCMC is required to pay interest at 9% per annum occurred up to the date of award within 60 days from the date of award.
With this I would like to now hand over the call to our CFO Ms. N. Patel to share the financial performance of the company.
Hetal Patel — Chief Financial Officer
Thank you Puja. Good afternoon everyone. The financial Performance during The quarter ended 12-31-2025 is as below Quarter 3 FY26 versus Quarter 3 FY25. Revenue from operations for the quarter is Rupees 771 cr versus 623 crores which is increased by 24% on VaR basis. EBITDA for the quarter is 52 crores versus 35 crore increased by 47% on YY basis. EBITDA margin is at 6.73% versus 5.67%. Net profit for the quarter is Rupees 16 cr versus 6 cr increased by 159% on YY basis during the quarter under review. Employee benefit expense has increased from 33cr to 41cr on by basis mainly due to increase in provision for graduity and leave encouragement as a result of application of new labor code notified in November 25, increase in depreciation from 19cr to 24cr on Vyover basis is mainly attributable to additions in asset block during the current financial year.
During quarter 3 FY26 company has incurred capex of 80 crores and year to date capex addition is 153cr, gross block stands at 762 cross and net block is 414cr as on 30th December 25th. Would like to mention few of the important balance sheet Numbers as on 12-31-25 Long term borrowing is 25cr including short term maturities of 16crs. Short term borrowing is 364crs excluding short term maturities of 16crs. Net annual revenue is 648cr, trade receivables are 635cr and trade tables are 436cr. Retention is 163cr, mobilization advance is 524cr, inventories of 344cr comprises of 175cr of construction material, 149cr of work in progress and 20cr of finished goods out of total sanction credit facility of 1497 crores.
Company utilized non fund based facilities of 703 crores and fund based facilities of 294cr and limit available for utilization is 500cr as on 12-31-25 the company has total fixed deposit of 215 cross out of which lien 3 deposits are of 43cr and FD is worth rupees 147cr are under lien with the banks for credit facilities and SB worth rupees 25 crore is given as security deposit to the client. Work on hand as on 12-31-25 is 917cr9178 cross. This comprises 27% order value from government projects and 73% from private projects. Work on hand within Gujarat comprises of 82% Maharashtra 14% and risk 4% from other states.
Outstanding value of projects from entities within group comprises 59%. And external projects are 41% of the total. Work on hand. That concludes the update on the financials. And we are now open for the question and answer session. Thank you.
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handset 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 Shah from Daulat Capital. Please go ahead.
Shravan Shah — Analyst
Thank you. A couple of questions. So first on the guidance front. So last time we said around 3200 crore revenue for FY26. So considering 9% growth in nine months the fourth quarter the ask rate is too much. 86% kind of a growth. 1200 crore or something. So first on the revenue front how much are we looking at for the fourth quarter? So for the entire FY26 and if possible for FY27 how one can look at the revenue and that too also if possible if you can bifurcate in terms of the Adani and non Adani revenue that would be helpful.
Sir.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Someone first of all to answer your first question related to overall this year I think we have committed around 2100 to 3200. We still stick to that different figure because we are confident that the projects which are now under finishing will be able to make up by March for the revenue for the next year. I think it is little early let us complete this path. But mostly it will be somewhere in the range of 4000 plus. We are sure because of the order book which we have and the commitment which we have made for next year.
Shravan Shah — Analyst
Sorry sir, for this year you said 2300 crore.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
3100 to 3200 which I already committed in last fall. Also that we stick to that. So probably there won’t be any problem in getting that revenue. As far as the planning is concerned, the pace of the work it is going on and most of the projects are in the base of anything and finishing so it will be able to make up that revenue. And for next year it is too early to mention about the revenue. But once we complete this first year 2026. But looking to the commitment which we had done it could be somewhere in the range of 4,000 to 4,500 minimum.
Shravan Shah — Analyst
Okay, got it. So the way the work is going on sir, so in the fourth quarter we should be able to do 1100-1200 crore kind of a hundred to to get 3100, 3200 crore.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Right? Yes.
Shravan Shah — Analyst
Yeah. Yeah. Sir, second is is on the order inflow and margin. So still we are not able to see the improvement in the margin. So in the fourth quarter how one can look at the EBITDA margin and for next year or maybe next two years also if somebody has to look at 8 to 9% margin which we normally use to guide is it possible to achieve in the 27:28 and for fourth quarter how one can given the revenue will be a significantly higher. So we can. Can we see a kind of 8.9percent driven EBITDA margin in the fourth quarter itself.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
If you have heard you already mentioned there is a incremental operating expense in because of employees benefit which is the team of eight crown. Because it is quarter only if you let to 54 crore which we have already shown as a Ebita it comes to 62. 62 crore. So if you consider that part also then we have almost reached to 7.71%. So what we told you that will be near to 7 to 8% this quarter and probably on an average 8 to 9% that still is achievable. So though it shows 6.71 potential impact of 1% directly because of this new labor cost.
Shravan Shah — Analyst
And said this 8 crore labor loss from fourth quarter this run rate will continue or this is for the one time that we have done.
Hetal Patel — Chief Financial Officer
No, no. It will be one time effect only. We have already taken the effect this past service cost so that we have taken to the P and L. And now from next quarter onwards there won’t be any effect of this.
Shravan Shah — Analyst
Okay. Okay. And sir, now in terms of we already have a 5,000 crore order inflow. So in the fourth quarter how much more are we looking at? And this 965 crore puja been said in the start that we have already got from the Adani. So just to clarify on that.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
I think. How much is. It is 100%. Okay. So. So one can say that we have got close to 5,900 crore. 65. So 6,000 crore we are our order info till now. So how much more one can look at by by margin. But what is the expectation till March another 3000 crore can come which is under discussion.
Shravan Shah — Analyst
So 3000 excludes this 965 crore or it includes.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
It excludes.
Shravan Shah — Analyst
Okay. Okay. And next year onwards this 7,8,000 crore run rate 1 can look at in terms of the order inflow.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
We should look at it as per our performance. If you are able to network with the requirements of the group I think 70,000 is to be considered next year.
Shravan Shah — Analyst
Okay. Okay. Thank you sir and all the best. I have more questions will come back in queue. Thank you. No problem.
operator
Thank you. The next question comes from the line of Weber Shah from GM Financial. Please go ahead.
Vaibhav Shah — Analyst
Yeah so the issue that you are facing on the up project so now there are no overruns in Q3. Right? Right. So only one of in the quarter was regarding the labor code. Otherwise the other costs are normal.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Yeah.
Vaibhav Shah — Analyst
And secondly on the depreciation front now this one should continue of 2425 crores per quarter.
Hetal Patel — Chief Financial Officer
Yeah, it should continue because we have already added 153 cr in the current financial year. So it will impact every quarter going forward. Yeah.
Vaibhav Shah — Analyst
For the entire year.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Yeah. This is. This is basically to be utilized for next two years. Most of the project which we have started for another group all these projects required new shuttering materials, new equipments like crane and RF other equipment. So this will be most probably this will remain as a part of depreciation. But at the same time this revenue.
Vaibhav Shah — Analyst
Will start in next year’s target for the entire year.
Hetal Patel — Chief Financial Officer
CAPEX amount for entire year.
Vaibhav Shah — Analyst
Yeah.
Hetal Patel — Chief Financial Officer
So for nine months we have extended 153cr and further around 40 to 50cr.
Vaibhav Shah — Analyst
We might be around 200crores for the entire year.
Hetal Patel — Chief Financial Officer
Yes.
Vaibhav Shah — Analyst
And going ahead 2728 also this should continue or we may see some fall in the CAPEX number.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
If you consider the part of the project which we have received from organic growth which is to know 6000 and if you consider for 2 to 3% as equipment part I think that’s what we have spent. So probably from next year onwards there will be a little bit less capex cost for this project which is already started. But for any new project which is coming up from the group again there will be requirement of capex as well as defer but maximum as a tune of as a overall we will stick to 3 to 4% of our overall revenue which we always pay and which is what we have spent every year in past few years.
Also.
Vaibhav Shah — Analyst
Okay. And the last year regarding the B1D award. So 61.4 crore for this. So they will come to us or the client can again go in arbitration and go in the further code.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
The court has given a commitment them at time of two months. So that after two months if they do not go to the court. This. This has to be reimbursed. And for again again beyond 260 days. The interest rate is announced as 11%. Presently the interest for after the announcement till date is 9%. Later on once the 60 days is over it is 11% interest. So let us wait and watch whether they go to other port and.
Vaibhav Shah — Analyst
Okay. And sir, what would be our receivables from the SDB now? I think someone was sending the receivable.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Still remains the same what we were having in last quarter. Only thing is now it will be paid as with interest as they have committed. But it is as same as last quarter.
Vaibhav Shah — Analyst
What Was the number?
Hetal Patel — Chief Financial Officer
93.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
93.
Vaibhav Shah — Analyst
93. Okay. Okay. Thank you, sir. Those are my questions. Thank you.
operator
Thank you. The next question comes from the line of Rahul Kumar from Vecara Funds. Please go ahead.
Rahul Kumar — Analyst
Yeah. Hi. Just an execution. I think whatever the execution we have done in Q3, is it in line with your expectation or were there any challenges during the quarter?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
No, it is within our expectation as in the last quarter also I said that we’ll be whatever things have happened in last two to three quarters. Because of the extra cost which we have incurred in the projects related to up now that has been streamlined. And overall the project cycle which we are going as 60% from Adani Group and most of the projects in Gujarat from non Adani. I think it is as per expectation. Only thing. This 8 crore of provision made that it has made the 1% EBITDA as less. Otherwise 7.71% is about 8%.
Which I already said that will try to match to 8 to 9% from next year.
Rahul Kumar — Analyst
Okay. Okay. So I was asking in terms of more on execution of the. You know, projects. Is that. Is that in line with your expectations? Pardon me? Yeah, I was saying in terms of the project execution. How much you have, you know, done the construction and completion of the project. Is it in line with your expectations or were there any challenges?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
It is always better to have more and more. We said we can do better and better. But what happen is usually the environment which the deployment of labor, availability of labor and the weather. These three permits. We always wish that the work should go on smoothly. But depending on the type of project, sometimes Some of the projects may not have clearance in terms of design or it doesn’t have clearance in terms of approvals that can hit during this such good season for construction. But overall I feel that we may have fall about 50 crore less.
Otherwise it is within my expectation.
Rahul Kumar — Analyst
Okay, okay. Okay. So during the quarter, I mean were there any issues of laborability and has that sort of improved?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
No, I don’t think so. Maybe depending on type of project and the front availability that can be shorter to 10% but not as such as the crisis of labor as we generally see in the season of April to June. So overall it can be a shortfall of 8 to 10% depending on situation and location of the project.
Rahul Kumar — Analyst
Okay, okay. And I think you mentioned that there’s 14% projects which are done in Maharashtra. So just with respect to that, how is the, you know, receivable situation over there?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Yeah, I think major projects which we are doing today is nine. And that project already the sheet piling has been an excavation because the last layer of exploration is going on. So probably by March we should be in the position to start our foundation and we’ll be able to generate more revenue from them onwards.
Rahul Kumar — Analyst
Okay, okay. But are you facing any challenges on the, you know, cash flow front on that project?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
No, I said there is no requirement of. There is as such today there is no problem of cash flow in that project because it’s investment on the organic.
Rahul Kumar — Analyst
And I think this quarter you’ve seen a decline in the gross margin. You know, on a QQ basis I think by 670bps. So what would have driven that.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Was a heat of 7 to 8% on the. Because of the Liverpool division that has given you a drop of one and a half percent. Otherwise six times last year it was six and last but it was 6.5 years, 6.71. It could have been 7.71 if that import of labor could not have been taken.
Rahul Kumar — Analyst
Actually I was more referring to the gross margin front and not exactly the EBITDA margin.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Front. Gross margin. Yeah. You meant to say from quarter to quarter.
Rahul Kumar — Analyst
Yes. Versus Q2. I think it has declined by 70 bits.
Hetal Patel — Chief Financial Officer
You are saying?
Rahul Kumar — Analyst
Yeah, construction expense and the, you know, cost of materials combined.
Hetal Patel — Chief Financial Officer
Many of the projects are newly started. Right. So they are at the initial level of execution. So that margin might be affected in initial stages. As we already mentioned last quarter also we have started cover many of the new projects. So because of that that effects can. Be there on the.
Rahul Kumar — Analyst
Got it, got it, got it. And I think on the order float front I think if I see Q2 versus Q3, I think we have seen that the institutional and you know, government order book has actually declined. So can you just help us understand, you know, the trends in that, that to front, you know, how is it looking let’s say now versus September as.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Far as order inflow is concerned. Now being a partner with Adani Group, we are having plenty of inquiries from their side. And we would like to maintain our presence in the market by keeping about 15 to 20% at non Adani. 70 to 80%. 75 to 80% from Adani Group. And that’s how we are not also bidding for the smaller projects of the government side. And the project which we have bidded of 967 crore of this Mumbai corridor which was one of the largest and prestigious projects of Gujarat where we already stood lowest. And we are waiting for that order.
So ordering terms of government or the non Adani will be on selection basis. Because as far as the group is concerned we are having plenty of works to do.
Rahul Kumar — Analyst
Okay. Okay. And currently what is the split of Adani and north? Okay. Okay. So basically this 40 should go down to 20 and then because of which you are seeing some. Okay. Okay, got you. Thanks.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Thank you.
operator
Thank you. The next question comes from the line of Vishal Perival from PL Capital. Please go ahead.
Vishal Periwal — Analyst
Yeah, so thanks for the opportunity. I think one question is on inflow. You did mention in the PPT order inflow of almost like 5000 odd crore. But. But if we look at the order book which we generally give on a quarterly basis. So it looks like the inflow is I mean like you know, some different number. So there is certain cancellation of orders are also there. So is that fair to understand?
Hetal Patel — Chief Financial Officer
So basically see once certain orders are, certain projects are over. We have to foreflow certain amount. Because even during this quarter also we have closed certain orders. So order value, remaining order value, we need to short course. So because of that and also in during, within existing orders there are certain orders where we have short flow a certain amount, that amount has been reduced. So that amount can be the different.
Vishal Periwal — Analyst
Okay, okay, okay. Because I think that that number comes to almost like 3700 odd crores.
Hetal Patel — Chief Financial Officer
And the report, it cannot be that much. It’s around 100 to 150.
Vishal Periwal — Analyst
Sure, sure, ma’. Am. And second, I think in terms of the inflow that we get from the group. So what is the nature of the project? Is it largely a real estate? Because the reason I’m asking is we have seen residential pie has increased in the segmental order book as well as the institutional one which generally we do work of say educational institutes or hospitals. So just thought to check.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
No, as far as Adani Group is concerned, I think we have a less order book from dlt. Most of the projects are institutional or their own capex. Whether it’s a residential colony for their mundra plant. Whether it is a residential colony service Dharavi project. There are few projects related to airports and there are few projects related to their own institutional requirement at a level but not much on reality side.
Vishal Periwal — Analyst
Okay. Okay. Sure sir, I think this is helpful and I will come back in the queue.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Thank you.
operator
Thank you. The next question comes from the line of Bajrang from Sunidi securities. Please go ahead.
Bajrang Bafna — Analyst
Sir. Congratulations for good growth and education side. So my question pertains to Dharavi side. If you could guide what is the development? Because in the recent BMC elections we have seen all the five blocks have been owned by non BJP candidates from Udao camp and this index the other NCP camp. So you know how. How do you see that whether this will put some sort of delay mechanisms or some sort of chaos there. You know for the development part, how do you see this development in terms of the Arabic project And also some insights on the Commonwealth game side.
How is the progress when the tenders are expected and you know how this thing is going to go through. Thank you sir.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
First of all this is the news which I am hearing from you that was the participant in the election. So anyway, it is actually not my job who is going to rule as a corporate how it is going to impact on us. But till now there is no impact and we could not run about that also because it is at the end of the day group levels fall. We are just a part of construction. And as far as construction is going on, we are almost at the finishing of excavation and probably maybe one or one and a half months we start the foundation.
Bajrang Bafna — Analyst
Okay. So sir, you know, in terms of new order intakes on the Dharavi side, any broader guidance or the guideline that you can give how much that probably we are expecting. Expecting, you know, in the near to medium term time frame.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
We are in the discussion of one more project of Dharavi which is on the Matanga block which will be. Which will be in the range of 2000. Okay.
Bajrang Bafna — Analyst
In the near term.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Yeah, Mostly it should close before March.
Bajrang Bafna — Analyst
Okay. And sir, what about Commonwealth Games? That tendering Commonwealth?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Yes, that has been announced. And I think what we are hearing from the news the same Thing which we have you here and we hear the same. But probably what we are doing much as far as there are two candles here which are going to come for port stadium which is yet to announce. So we are waiting for this candles to come. But that is in the window. Seven to eight thousand crore. But that cannot be one. Maybe it can be splitted into two or three. So we are still waiting how the tender starts coming on the.
Bajrang Bafna — Analyst
Okay, so this will go into FY27. Nothing is expected till March, right?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
No, no, no. I don’t think so. It should be. The government said they could be in position to close it before March to announce the tenders. But probably for a contacting formula it will go next year.
Bajrang Bafna — Analyst
Okay, thank you and all the very best, sir.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Thank you. Thank you.
operator
Thank you. The next question comes from the line of Prajwel from Equeris Capital. Please go ahead.
Prajwal — Analyst
Yeah. Hi sir, for the opportunity. So just wanted to have one clarification. The subsidiary that we have, the PSP projects and proactive subsidiary. Are we doing any projects over there? Because there has been a jump in the revenues in the consultant number as compared to the standalone number which used to be similar. So how we should look at that particular subsidiary and what kind of work and order that subsidiary is doing?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
See, there are one or two reasons that we have made that subsidiary very little life. Because we are giving few orders of MEP which is going to be a part of new construction. So we take some of the orders of MEP in that part also some of the products are splitted into labor and material. So there also we have taken as supply of materials with the. And the orders are splitted into two as services and material. So that that is usually required by some of the clients where they are going to run rent the project.
So they usually ask for two type two parts of the ordering system wherein one is material.
Prajwal — Analyst
Got it, sir. Got it. Yeah, that’s it. Thank you so much.
operator
Thank you. The next question comes from the line of Bala Subramaniam from Arihan Capital. Please go ahead.
Balasubramanian — Analyst
Good evening, sir. Thank you so much. Sir. Earlier Dharavi project has been delayed due to excavation.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Sir, please speak little loudly and I think there is so much noise from surrounding.
Balasubramanian — Analyst
Okay. Currently audible. Sir.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
A little louder please.
Balasubramanian — Analyst
Yes, sir. Dharavi project has been delayed due to excavation and sheet piling and output of progress. Right now.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Project is denied.
Balasubramanian — Analyst
No, no. It’s been delayed due to excavation and sheet file.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
It is not delayed but because that project requires when you are going in a Basement and it is very difficult task in Mumbai to for the excavation part till sheet piling is done. So first the seat piling was much large as that. It’s a huge basement and at the same time when you go beyond 6 meters there is always a traffic. So that also requires little bit time. You are not allowed to do the blasting. So probably those two activities are common in Mumbai. But at least we are now in a good position that almost the expiration will be over maximum within next one.
Balasubramanian — Analyst
Okay sir the QIP proceeds used for debt repayment. What is the targeted net debt to EBITDA ratio by end of this year and how much interest cost we can expect to pay from next month?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Sorry, can you please repeat the question.
Balasubramanian — Analyst
Madam that QIP proceeds majorly used for debt repayment. So what is the targeted net debt to EBITDA issue by end of this year and how much interest cost savings we can expect?
Hetal Patel — Chief Financial Officer
U.I.P. we did two years back, right? So at that time we have proposed that fund to utilize for that. Now the situation is like we have utilized our working capital facility but at the same time we have incurred around 150 capex for this year. Even last year also we have incurred a huge amount of capex so we haven’t borrowed any long term term loan against any equipment. So that is the reason our fund based facilities utilizations are increasing. At the same time we have to pay advances to suppliers also because our high value items they need terms of advances and because of that that fund based facilities need to be expended for that.
Balasubramanian — Analyst
The CAPEX is majorly funded through internal accruals or any date we are planning further madam because earlier that annual CAPEX guidance is nearly 3 to 4 percentage of revenue. But we also planning high value grains for precast so it will lead to four to four and a half percentage of sales.
Hetal Patel — Chief Financial Officer
Yeah. So PHR has already mentioned that this CapEx of 200cr for this quarter may not be happening on at the same range in next year. So the revenue generation will happen in next couple of two years or so. It’s not. It’s like. Yeah as you said 3 to 4% we have to incur so that revenue will be generated in next financial year.
Balasubramanian — Analyst
Okay madam Is decline of 250 crore and Pandakura arbitration is still ongoing. So like when we can expect favorable outcomes and if there is any contingency, if it is there, how it will.
Hetal Patel — Chief Financial Officer
Reflect our financials regarding B1B claim has already mentioned in her speech that we have received a favorable response from arbitrator and that is around 61cr is passed and plus interest field date of the date they pay. So that is that arbitration process is over.
operator
Mr. Bala, you may rejoin the queue for the follow up question. The next question comes from the line of Ayush Sabu from Choice Institutional Equities. Please go ahead. Mr. Ayush Sabu, please proceed with your question. Mr. Ayush Sabu, are you there? As there is no response from Mr. Ayush Sabu, I need to move on with the next participant. The next is Henkash Khattar from Green Portfolio. Please proceed with your question.
Hemkesh Khattar — Analyst
Hi. So the management in the previous earnings presentation, you know guided for order book of around 14 to 15,000 crore by the end of FY26 as they saw significant order flow coming from Adani Group. So are we still, you know, confident on achieving that order book by the end of financial year?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
The present outstanding order book is to the tune of 9,100 crore. So probably if we add 253,000 crores each, we are expecting by March. So probably that will be in the range of 12,000 minus a quarter. So we may not reach to 14,000. But this will be in the range of 11 to 12,000.
Hemkesh Khattar — Analyst
Okay, that’s very helpful. And second thing like when we talk about the EBITDA margin. So the EBITDA margins that you are expecting from Adani projects, is it in the similar range of 8 to 10% which you have located or is it on the lower or higher end of that?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
We already said it will be in the range of 8 to 9. We never said it will be in the range of 8 to 10%. But probably it is as decided as cost plus percentage. Probably that will should land within 8 to 9.
Hemkesh Khattar — Analyst
Okay, thank you so much.
operator
Thank you. The next question comes from the line of Bhavin Modi from Anandraathi. Please proceed.
Bhavin Modi — Analyst
Yeah. Hi. Thank you for the opportunity. I just wanted to ask, you know. With the recent, you know, increasing the commodity prices. So can that have impact, you know, on our margins and how should we.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Look at going forward? The commodity margin majority is aluminum and copper. All those projects which we are doing with the government or there’s a fixed price contract that covers in price variation with RBI index that can have a little bit impact. But as far as organic group projects are concerned, anything related to rising commodities is not going to give it to the CSP side.
Bhavin Modi — Analyst
So. So the hike in the prices will be like a. It will be like a pass through. Yeah. Okay. Got, got. That’s Just from my side. Thank you.
operator
A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Shawan Shah from Dollar Capital. Please go ahead.
Shravan Shah — Analyst
Hi. Thank you sir. Hital Ma’. Am. What is the cash and cash equivalent as on December which was a 192odd crore in September.
Hetal Patel — Chief Financial Officer
Sorry I didn’t get.
Shravan Shah — Analyst
Cash and cash equivalent in September it was 192 odd crore. So against that in December or the number would be.
Hetal Patel — Chief Financial Officer
Mostly a cash and cash equivalent comprises of certain deposits which are falling maturity falling within three months. Right. So we should talk about the overall deposit level. This time it is 215cr and I think it September it was on a higher side it was around 230 fears. So to that extent it has reached.
Shravan Shah — Analyst
Okay, but. But in terms of reporting the balance sheet the way we report where we have reported in September. So that the bank and cash totals around 190,192 watt crore. So against that if I have to look at the number would be 1015 crore lower only.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Yes.
Hetal Patel — Chief Financial Officer
Yeah it will be. See this cash marking. Miss. Cash balance will be falling under three different rates. But if you want to see purely short term current current asset cash that will be on a similar level.
Shravan Shah — Analyst
Sorry, Sorry ma’. Am. How much?
Hetal Patel — Chief Financial Officer
Yeah. This will only include a short term material three months only.
Shravan Shah — Analyst
No, I was looking at the balance it to balance it number. So September the way we report the balance sheet. So there if you look at it was kind of a 192 crore, 56 crore and 136 crore that the two numbers were there. So against that I was looking at.
Hetal Patel — Chief Financial Officer
So it is the same only catch and cash equivalent.
Shravan Shah — Analyst
Okay. And second this arbitration. Let’s say if we get it by March end this 61 crore 62 crore. So how this will get reported in the PNL. The entire will come in the revenue and there will be no cost. So entire will flow to the EBITDA level. And there will be a check normal tax rate.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Yes.
Shravan Shah — Analyst
And the interest 9%. That will any any broad idea. If let’s say if it comes by the March. So this 9% starts from when till now.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
If you calculate that from the date of the award to till date it is coming at 79 days. So probably by March it will be a medicine of two to three. We can say it will be around eight.
Shravan Shah — Analyst
Okay. Okay. Got it. Got it. And. And the other projects of the Adani Adani Group particularly the airport side. The two projects that we are having in Ahmedabad. So how have we started the work there?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
We are almost out of 60. 75%. We are out of basement and we are also on downfloor at some of the level. So that project is both the project inside the airport and outside the airport. All projects are going on full flight.
Bhavin Modi — Analyst
Okay. Got it sir. Thank you. Thank you and all the best.
operator
Thank you. The next question comes from the line of Bhavik Shah from Invexor Capital llp. Please go ahead.
Bhavik Shah — Analyst
Yeah. Hello sir. Thanks for the opportunity. So my first question is what is the current bid pipeline for both Adani and non Adani projects?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
It is known that The Adani is 3900 crore and the rest of the year is 2015. In 1990 total or third pipeline is 6500. Out of which I think that sample development number 965. We already.
Bhavik Shah — Analyst
Sorry. Last time you told I was not able to hear.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Group project is 3,900 crore bit pipeline. Yeah. And non Adhan is 262600 crore. Out of these 2,600 crore 965 crore. A temple development at Ambaji which we have put it in bit pipeline. But that order that tender is closed and years to lowest. We are waiting for that order. So in this 2600 there were Ambaji development of 965 crore commercial project at Thane about 850 crores. It was a private project. There was an um temple 500 crore residential tower for SB at this.
Bhavik Shah — Analyst
Understood. And sir, in case of Adani 2000 crore is the Madunga project. And what is the rest? 1.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Different different types of project at different different location. This is a mix of Vishram group. Some of the projects are with compared to Mundra township. Some of the projects are related to airport. So as and when the project starts.
Bhavik Shah — Analyst
Out of this pipeline we are expecting 2000 crores to come in this Q4. Right?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Yeah.
Bhavik Shah — Analyst
Okay. And so what will be a guidance. For the next year in case of inflows? How much we are expecting in say FY27.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
We already said that there will be minimum order input minimum 7 to 8,000 crores from the group. And then when we start off it is outstanding order to 12,000 BCN. And if we are able to make up a revenue of 4500cr next year. So there will be an addition of minimum 1.1.52x from the group side to be added from the group.
Bhavik Shah — Analyst
Understood. So all the best. Thank you. Thank you.
operator
Thank you. The next question comes from the line Of Webhav Shah from GM financial. Please go ahead.
Vaibhav Shah — Analyst
Yeah. There are order book in September was around 9900 and now it is 9200. And we have roughly received around 880 orders. So as for formula the order book comes around 10,000 crores. So there’s a difference of roughly 800 crores in the order book. But Hitu ma’ am told that only around 100 crore has been removed or the scope has been reduced. So what extent is this difference?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Actually there are 143cr reduction and cancellation only. Ma’. Am.
Vaibhav Shah — Analyst
But so order inflow for the quarter.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Is how much some of the project scope is reduced. So the order is revised. And some of the projects the value is splitted also.
Vaibhav Shah — Analyst
But all. All of that is 146 has gone down.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
And some of the projects are cancelled also. Okay. Yeah. It’s an impact of both. Some of the projects are revised on higher side and some of the projects are canceled also.
Vaibhav Shah — Analyst
So what is the total impact of the. Of the.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
If you add Both the things 800 crore impact design.
Vaibhav Shah — Analyst
Okay. Okay. Okay. And so secondly in our current order book of 9000 crores do we have any Dharavi projects?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Yeah. That my work we have already said I is the part of the project.
Vaibhav Shah — Analyst
So what is the value of the order. And another 2,000. We are looking in the near term the mat. Yeah. Okay. Thank you.
operator
Thank you. The next question comes from the line of hate from Alara capital. Please go ahead.
Unidentified Participant
Yeah. Hi ma’, am, can you just provide me with the breakup of the order. Book Again. In terms of. In terms of the closing order book. The breakdown is not available in the ppp. If you can run by that again.
Hetal Patel — Chief Financial Officer
Yeah, I have already mentioned that. I’ll just. So the closing order book is which comprises of 27% order value from government and 73% from the private entities. Right. And within Gujarat comprises of 82% and Maratha 14%. And whereas within group projects are 59 and 41 external projects.
Unidentified Participant
Yeah, I just wanted the project wise breakdown.
Hetal Patel — Chief Financial Officer
Okay. I’ll just tell you the project wise breakup. SNC high rise building is 835cr. Gati Shakti is 325 years here. And the Roy Dam project is 280cr fintech building. 264 crib project 245 years. These are the major projects. External projects we have mentioned.
Unidentified Participant
Yeah. Thank you. This was.
operator
Thank you. The next question comes from the line of Bala Subramaniam from Aryan Capital. Please go ahead.
Balasubramanian — Analyst
Thank you. Sir, thank you. What is current utilization for precast facilities? And what is our current conception level in terms of what is the risk between internal consumption and external precast order. And in external side whether we are targeting industrial, residential or infrastructure solutions. And secondly, what is the one time impact related to labor code implementation?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
We already answered the as far as is concerned. So presently I think 80 to 90% is captive only. Yes. You order from. Solution is mostly in house from our project and.
Balasubramanian — Analyst
Okay sir. Thank you. So also at least it’s completely 100% operating.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Yeah.
Balasubramanian — Analyst
So we are operating at maximum utilization for.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Presently we are in the phase of 100% utilization.
operator
Okay. Thank you. The next question comes from the line of Bajrang from Sunidi securities. Please go ahead.
Bajrang Bafna — Analyst
Sir, just want to understand. You have guided normalized margins in the band of 8 to 9% on the EBITDA level. But if I just see the depreciation which is currently ruling around 23 crore per quarter. And then we are doing a capex of almost 200 crores crores this year which will reflect next year in terms of depreciation cost and finance cost is also around 40 crore sort of run rate right now. So I’m just trying to understand what sort of net margin that will be there on FY27 if we assume 8 to 9% sort of EBITDA margin.
So what is the rational normalized net margin that probably we can expect?
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
We consider the depreciation and finance cost reduce and depreciation remain the same. There can be an improvement 1.5 to 2% on the net.
Bajrang Bafna — Analyst
Sorry.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
3% up to 1.5 to 2% on THE EXISTING 2.14. So we can be 3.5 to 4%.
Bajrang Bafna — Analyst
Okay. 3.5 to 4%. Okay. And sir, this year we last quarter we talked about 3200 crore sort of top line in FY26. I was little absent in the initial part. So is that number stands hold or will it be revised lower in the.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Range of 3100 to 3200 which is the same.
Bajrang Bafna — Analyst
Okay. And next year 4500 crore is a rational assumption or will it be lower.
Prahaladbhai Shivrambhai Patel — Chairman and Managing Director
Today we will be able to give you clear guideline in the first quarter of the second quarter of 2027.
Bajrang Bafna — Analyst
Okay. Okay. Got it, sir. Great. Thank you sir.
operator
Thank you. Ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to Ms. Pooja Patel for closing remarks.
Pooja P Patel — Whole Time Director
Thank you. And everyone. On behalf of Management of PSP Project Ltd. We thank you all for joining us on our post earning calls today. We hope we have been able to address majority of your queries. You may reach out to me or our investor relationship partner ey for any further queries that you may have and they will connect with you offline. Meena, we can now close the call.
operator
Thank you on behalf of PSP Projects limited that concludes this conference. Thank you for joining us. And now you may disconnect your lines.