PSP Projects Limited (NSE: PSPPROJECT) Q4 2025 Earnings Call dated May. 23, 2025
Corporate Participants:
Pooja Dhruve — Company Secretary
Prahaladbhai S. Patel — Chairman, Managing Director, and Chief Executive Officer
Hetal Patel — Chief Financial Officer
Analysts:
Lokesh Kashikar — Analyst
Navid Virani — Analyst
Vaibhav Shah — Analyst
Prachi Kadam — Analyst
Deval Shah — Analyst
Unidentified Participant
Sanjay Kohli — Analyst
Aditya Jaiswal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the PSP Projects Limited Q4 FY ’25 and FY ’25 Post-Results Conference Call hosted by Smiths Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Lokesh Kashikar. Thank you, and over to you, sir.
Lokesh Kashikar — Analyst
Thank you. Yeah.
Operator
Thank you. Good afternoon, ladies and gentlemen. Sorry to interrupt, but the line for the management has been disconnected. Ladies and gentlemen, please hold while we connect them again Ladies and gentlemen, thank you for holding. We have the management back with us. MR. Lokesh, you can go-ahead now.
Lokesh Kashikar — Analyst
Yes. Thank you. Good afternoon, ladies and gentlemen. On behalf of SMIFS Limited, I am pleased to welcome you all on the PST Projects Q4 FY ’25 and FY ’25 earnings conference call. From the management side, we have Mr PS Patel, Chairman, Managing Director and CEO; and Ms Patel, CFO of the company. I will now hand over the floor to Ms Gujar Dru, Company Secretary for the disclaimer and then the management will have the opening remarks. This will be followed by alternative — interactive Q&A. Thank you and over to ma’am.
Pooja Dhruve — Company Secretary
Thank you and good evening, everyone. I’m pleased to welcome you all to the PHP Projects Limited earnings call for the analysis — analyst and institutional investor to discuss financial results for the quarter and year ended 31st March 2025. Please note a copy of the disclosure is available in the Investors section of the website as well as stock exchange.
Anything said on this call, which reflects the outlook for the future or which could be constructed as a forward-looking statement must be reviewed in the conjunction with the risks that the company faces. Now I shall hand over to — to call to our Chairman, Shah for his opening remarks. Over to you, Shah.
Prahaladbhai S. Patel — Chairman, Managing Director, and Chief Executive Officer
Thank you,. Good evening, everyone. On behalf of the management of PSP project, I welcome one and all the earnings conference call to discuss the quarter and full-year performance of the company. We concluded the Board meeting this afternoon. To sum-up the financial year 2025, I would say the year has been difficult year for PSU Projects Limited, while the company closed with the highest-ever outstanding order book of INR7,266 crores as an year-on-year growth of 20% and highest-ever order inflow to the tune of INR3,506 crores, excluding GST. The same got three.
The same has not got translated into numbers and growth during the year of the current outstanding order book. Adani projects comprises of 25% in-balance are projects. The company closed FY ’25 with a revenue from operation of INR2,468 crores of similar level of — almost similar level to FY ’24. The company could not make the desired growth guidance the muted revenue growth has been because certain new projects of Royal, Dem Fintech Building at City, GBRC, SRFDCL, GDC, SNC, Scient City, EDC did not take-off as per our planning and there were delays in the receipt of drawings and in-land acquisition and land allotment delayed in client unit sales ETC.
The total revenue impact of all these projects put together is in excess of INR300 crores. Profitability update, in FY ’25, the company reported an EBITDA of INR78 crores compared to INR260 crore in FY ’24. The decline in EBITDA was primarily due to the expenses associated with the seven UP projects, seven projects. FY ’25 marked the closure and handover phase of these projects leading to consultation of additional costs within this year.
A total additional expense of INR62 crores was incurred towards these EV projects, excluding this on one-time expenses, the adjusted EBITDA margin for FY ’25 stands at 9.7%, reflecting the underlying operational strength of our core business and in-line with our probability — profitability guidance on consolidated basis. Regarding the definitive agreement with Adani Infra, approval receipt for the open offer and its stage of period which has started on 22nd May 2025 up till 4th June 2025. Post the pending period, the acquisition will be effective from June 2025.
Now let me share certain operational highlights of the quarter and the year. Till-date, the company has completed 235 projects in total since inception with 83% private projects and balanced government projects. As on 31st March 2025, there are 58 ongoing projects, projects, 91 ongoing projects, 91% of projects are based in Gujarat, 5% in Karnataka, 2% in and 2% in Rajasthan.
During FY ’25, the company completed 13 projects, the major projects completed where SV came NIM instituted San Nhmedabad, seven medical colleges in-hospital completed in UP, two project completed with a national icepeed project, residential building for project Akansa at Ahmedabad. During the year, the company was awarded 22 projects, the major projects ever airport development and city, cityside development work containing and water hotel, project at Sanand, and center at Ahmedabad, two commercial and one hotel building in Bangalore, biggest residential project of Siban at City.
After successful completion of Mall Ahmedabad, repeated order from clients from Mall in Surat, leadership guest house and training center with Prikas Technology in Shantsegram, residential project at and residential project of R5 in San. Now. Now let me share the project-level updates. One of the largest project which we are going on the pass is Coca-Cola project.
Few days back, I was on the site and I saw almost the structuring is over. Infra work is also going on and the finishing work is going on. So probably that project is almost on timeline and we are doing much faster project for the company. Mutual Corporation, Building at Surat, we have reached to 14 story.
As of now, finishing work has been approved. Facade work agency is on-board and so the building is at going parallelly from 14 onwards on a structure side and rest of the area on a side. Sports complex, the main work is over and ready for anytime opening soon and some additional work of about INR20 crores for — pool is going on at sports complex.
Rathi, we are — we have almost come out-of-the basement for all the buildings which are supposed to be done for the inner city. And Now the major are going-in the superstructure, we are also there on-track, little bit sweep build of about one and up to two months just because of the seasonal — the deficiency of labor in April and May. Our outlook for FY ’26, we believe that FY ’26 holds strong potential for the PSU project. The company enters the new financial year with healthy order book, laying a solid foundation for growth. Our primary focus will be on execution. The entire team of FPS projects is aligned towards delivering high-quality outcome and ensuring timely completion across all projects. Looking ahead, we recognize that our future success will be driven by our ability to execute efficiently and scale-up our operations across increasing number of projects. We are confident in our team’s capability and are fully committed to achieve — achieving these goals. Regarding dividend headlines, we expect more than INR3,000 crores, but I will be in a better position to give you a close figure by end of this quarter as most of the Adani projects which we have started are at the stage of work or acceleration. So going after going from two months from here, we’ll be in a better position to give you a clear guideline what it will be up to be on INR3,000 crores. With this, I conclude my remarks and now I would like to hand over the call to Ms Patel to take us through the financial in detail.
Hetal Patel — Chief Financial Officer
Thank you, sir. Good afternoon, everyone. The financial performance during the quarter ended on, 31 March 2025 are as below quarter-four FY ’25 versus quarter-four FY ’24. Revenue from operations for the quarter is at INR655 crores versus INR649 crores, which is marginally increased by 1% on Y-o-Y basis. EBITDA for the quarter is at INR30 crores versus INR52 crores, which is decreased by 41% on Y-o-Y basis. EBITDA margin is at 4.65% versus 7.98%.
Net profit for the quarter is at INR4.8 crores versus INR15 15cr, which is reduced by 68% on Y-o-Y basis. PAT margin is at 0.7% versus 2%. During the quarter under review, company had to incur additional expenses in UP projects to the extent of INR9 crores. Other expenses include asset written-off to the extent of INR2 crores and ECL provision created for retention receivable from project, which is one of the UP projects that is INR1 crores INR87 lakhs.
During the quarter, project performance bank guarantee of INR8.02 crores was invoked and the same is expensed off to the P&L account. During quarter-four FY ’25, the company has incurred capex of INR16 crores and in totality for FY ’24-’25, the capex incurred is INR61 crores. Gross block is at INR599 crores as on 31st March ’25 and net block is net INR307 crores.
I would like to mention a few of the important balance sheet numbers as on, 31st March ’25. Long-term borrowings INR52 crores, including short-term maturity of INR34 crores. Short-term borrowings INR219 crores excluding short-term maturity of INR34 crores, net unbilled INR522 crores, retention 175 crores. Mobilization advance is INR335 crores. Inventory is INR322 crores, which comprises of INR145 crores of construction materials, INR156 crore of work-in progress and 21 CR of finished goods.
Out of total sanctioned credit facilities of INR1,497 crores, company utilized INR1001 crores, including fund-based utilization of INR122 crores and INR496 crores facilities available for utilization. As of, 31 March ’25, the company has total fixed deposit of INR265 crores, out of which deposits are of INR60 crores. INR180 crores are under-bank for credit facilities and FT worth INR25 crores are given as security deposit to the client.
Work on-hand as on 31st March ’25 is INR700 to INR7,266 crores. Detailed bifurcation is available in the uploaded presentation. This concludes the update on the financials and we are now open for the question-and-answer answer session. Thank 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 may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press and two. 2 participants are requested to use handsets while asking a question. Ladies and gentlemen we will wait for a moment while the question queue assembles.Hello the first question is from the line of Navid Virani from Bastion Research. Please go-ahead.
Navid Virani
Hello. Hi, sir. Thank you for the opportunity. So I have a few questions. So first one is regarding the entire year of FY ’25 and now FY ’23 going-forward. So now can you speak little loudly? Can you — is it better now? Is it better now, sir?
Pooja Dhruve
Yeah. Yeah.
Navid Virani
So my first question is regarding how we look at FY ’23. So FY ’25 was a washout year, you all understand that. But can you paint a picture of how drastically different can FY ’26 look like in terms of scale growth as well as profitability, how should we look at FY ’26 and how do you think it will panel?
Prahaladbhai S. Patel
See, I have already mentioned that we’ll be in a better position in FY ’26 because whatever the things which went wrong for a company, it was more related to UP and UP projects. If you see the total revenue and the total other projects, we have already done to what we have been claiming or what we have been given guidelines for other projects.
But the only thing which went wrong is for the UP and that’s the reason that we were not able to make-up. And if you see the total expense which we made throughout the year in UP was about in the tune of INR60 crores. So if we put it together into the EBITDA, it will be in the same margin to the last year of FY ’24.
Going from here now, we are not having that much pressure of government projects. We are now dealing with most of the projects or Adani Group, where we are — we are only focusing on the construction part. So I personally see that we’ll be in a better position to execute the project because now we are solely dependent on the management of the Adani Group who also wish that their project should move on a fast-track without any interest sir.
Navid Virani
Next up, what I want to understand was regarding the project. So for the entire year of FY ’25, the EBITDA margin pressure was majorly due to util projects been. So now I mean going-forward, let’s say, a couple of more quarters, do you still feel some pressure coming from these projects? And are we not in a position to just take it once and for all — take all the pain in one-go and just get done with just — is that something which is not coming?
Prahaladbhai S. Patel
See, it is actually the major projects or the greenfield projects of the medical college and hospitals were over and handed over since last six to nine months. It is more about the renovation of the existing hospital, which was a part of this contract and getting these hospitals a work on-time from the government is making these things delayed both from our side and their side. So whatever things happen now, I personally see that most of the things are owned only to medical colleges now going on.
So probably we’ll be in a better position from here on. But every now and then I say last quarter also I was saying INR5 crore, but I ended-up with INR9 crore. So probably with — we still feel that this will — in the next quarter also, we should be in a better position not to spending too much on that side. So it is now almost over as far as UP chapter is concerned
Navid Virani
Sure, sir. Helpful. Sir, last question is regarding the working capital days. So if I look at the trend for the last few years, we have been in the range of 30 35 days, but this time around in FY ’25, the number has come to around 65 days. And it looks like the receivables and majorly the inventory has been slightly higher in FY ’24 as well as FY ’25, if I look at compared to the history.
So what is driving both these numbers, if you can just give some understanding there.
Prahaladbhai S. Patel
So basically, this receivables if we see, it has compared — compared to last year it has increased. It was INR335 crores and at this time it is more than INR500 crores. Yeah. So this mainly are from the government projects and even some of the UP payment is also outstanding Outstanding and other government projects are there. SEBs also included, whereas last year it was not there in receivable. So because of that, that the receivable has increased and regarding inventory man. Inventory, I think it is as far. Last year also it was around INR300 cred and this year also, there is not much increase.
Navid Virani
So I mean, are we not — I mean, just wanted to understand, is there any pre-cash element involved in this inventory jump because if I look at for FY ’24 and ’25, the inventory number has inched up slightly. So is there any pre-cash element involved there in the goods?
Prahaladbhai S. Patel
No, see, if you see, I have mentioned the bifurcation. So around INR21 crore of finished goods is there inventory amount. So that is — that pertains to the finish book.
Navid Virani
Perfect. And last one on receivables. So out-of-the total receivables that are outstanding on our books right now, are there any slow-moving disables in your understanding? And if there is can you quantify?
Prahaladbhai S. Patel
Okay. So if we consider slow-moving, that will be, out of which we have made 17th year and we have already provided for 13 CR out of it. And we have SBB receivables, so that is 90 CR, but actually that will be due by this October ’25 as per the agreement. Yeah, first government is due, but that will be receivable we are following-up for that and mostly by October ’25, we will be receiving it.
Navid Virani
Thank you,. And sorry your answers. Yeah.
Prahaladbhai S. Patel
Yeah. We have a 40 CR receivable from UP also that is included in receivables.
Navid Virani
Perfect. Thank you. Thank you for your answers. Wish you all the best.
Operator
Thank you. Thank you very much. Participants who would wish to ask a question may press star in one at this time. The next question is from the line of Shah from JM Financial Limited. Please go-ahead.
Vaibhav Shah
On the receivables part, you mentioned that SGB and UP are, INR90 crores INR40 crores. What about you might have, right? I’ve missed the number for. Yeah, that is INR17 crores. And apart from that which are others?
Prahaladbhai S. Patel
Yeah. We have a receivable of 98 from Corporation that is Sports Complex.
Vaibhav Shah
So is that slow-moving?
Prahaladbhai S. Patel
Not slow-moving, but we have a last two months in one risk in pending, even three months in moving so that will be to. Yeah. So that will be perfect.
Vaibhav Shah
So by what can we expect some normalization in terms of working capital?
Prahaladbhai S. Patel
So more or less see if this — if we exclude this SVB and other moving items, it will be like INR450 or so that it will end-up at around INR400 cred. So that should be the normal receivables at this level of.
Vaibhav Shah
So INR400 crores should be numbered by March ’26. Okay. And for the SDB receivable of INR90 crores, the entire amount is due in October.
Prahaladbhai S. Patel
Yeah. By October ’25, they should be investment for the.
Vaibhav Shah
Okay. Okay. And secondly, on the guidance front, so previously we had mentioned that we are targeting revenue of INR4,000 crores for FY ’26. So where are we on that front?
Prahaladbhai S. Patel
I just said that it will be in the range of beyond INR3,000 crores, but after this go once this first-quarter is over and our all projects of Group is streamlined because it is at the stage of or stage and we are also adding towards monsoon. So we’ll be in a better position to give you clear guidelines after first-quarter.
Vaibhav Shah
So it should be anywhere between INR3,000 to INR4,000. Okay. And anything on the margin side?
Hetal Patel
Margin will be stabilized to the extent of whatever I have been saying since long that it will be in the range of 8% to 9%.
Vaibhav Shah
So David said at 9% to 10%, so we are again lowering the guidance.
Hetal Patel
What do you say?
Vaibhav Shah
Earlier we had guided for 9% to 10% margins. So we are lowering it to 8% to 9%.
Hetal Patel
Looking to the situation of the project and the way we have been able to perform in last one year, we are just keeping ourselves a little bit safer on giving you the margin guidance.
Vaibhav Shah
Okay, okay. And lastly on the capex side, what will be capex for FY ’26?
Hetal Patel
I think there is no exact presentation over capex, but as I’ve always said that it will be in the range of 3% to 4% of the revenue and that’s what we have done in this year also. So probably it will be the same range or maybe little more than 4% because most of the Adani projects are on a large-volume.
So there can be little more ex capex, but cannot be more than 5% next three months.
Vaibhav Shah
And what would be our order inflow guidance for FY ’26?
Hetal Patel
Order inflow will be same in the range of INR4,000 crores to INR5,000 crores.
Vaibhav Shah
Okay. Okay. Thank you. Those are my questions.
Operator
Thank you. Thank you very much. The next question is from the line of Prachi Gazam from Dolat Capital. Please go-ahead.
Prachi Kadam
Hi, sir. Thank you for the opportunity. Sir, I just wanted to ask of this INR4,000 crores to INR5,000 crores of order inflow that we are looking for in FY ’26, how much would be from the Adani Group
Hetal Patel
I think probably maximum will be from Adani Group will be in the range of 80% to 90% from Adan Group only.
Prachi Kadam
80% to 90% from Adani Group only
Hetal Patel
Yeah.
Prachi Kadam
Okay, okay. And sir, what would be the adjusted margin for Q4 ’25? I think for FY ’25, you have mentioned the adjusted margin of around 9%. So what would be for Q4?
Prahaladbhai S. Patel
Yeah. See, if we look at the expensity we have booked for this Q4, which are of not a routine nature, one is 8cr of this TBG invoked and we have provided for margin — this ECL provision also that is. So that is there. And further, we had written-off certain assets, which is a process of the whole year.
So more or less around 20 cr we can say we have incurred like additional expenditure. So on an average, it is EBITDA is INR30 30 crores, which may be — which will be around INR50 if we exclude the effects of these expenses. So it is in the range of last year’s EBITDA margin.
Prachi Kadam
Okay, ma’am. That’s helpful. Okay. Thank you.
Operator
Thank you very much. Participants who wish to ask a question may press star in one at this time. The next question is from the line of Deval Shah from RBSA Investment Managers. Please go-ahead.
Deval Shah
Hello. Hello.
Operator
Yeah.
Deval Shah
So my question — my question pertains to the recent personnel changes. We have observed that there is simultaneous departure of several long-standing K personnel. So can you please elaborate on the reason behind this and what measures are we taking to ensure that these do not have any material impact on our project commitments and timely completion? And are we seeing the similar kind of attrition at the mid-level as well? Just your thoughts on this, sir.
Hetal Patel
The release of these two people who have been associated with my organization since last 15 years, it was more voluntary because after this agreement with Group, they were — they were feeling little bit pressure of the order book and maybe on the execution part. And since last one year, they have seen that pressure in terms of getting the labor on-time and everything.
So it was personal thought to leave the company as a workload, nothing to impact on the company’s road because most of the people are still on tech and if you have seen since they have decided to leave in January and since January till now, we have been performing at the same pace without their presence?
Deval Shah
Okay. Thank you. And sir, my second question pertains to Adani Group only. So I — we understand that probably from the order coming from Adani Group will be more of a construction rather than the EPC. Is my understanding correct, sir?
Pooja Dhruve
No, it is more item-rate contract, not be — it will not be an EPC contract, but most of the contract type will be like EPC, where we will be doing each and everything right from some of the portion, the design will be coming from their side, some of the projects we are doing will design, but civil MEP and and finishing.
Deval Shah
Okay. And Sir, regarding the recent announcement from the Adani Group that they are also planning to come out with a township in Navi Mumbai on 1,200 acres then. So just to get the sense around it. So are we also preferable in the Mumbai region for the similar opportunities or so how — just want your thoughts on that.
Pooja Dhruve
Yes, we have already initiated projects in Dharavi and we are also part of the airport in Mial at terminal T1, we already initiated one small building of INR50 crores and we are going to start the office also. Also and two projects of Daravi also. So it depends on my availability and my strength how we are — we are able to prove ourselves in next one and a half year.
There will be all opportunities to PSP always from the Group side. Otherwise, there are always going to be that if their order book or their expansions are more, we will go for different contract. It all depends on my capacity to execute the work contract.
Deval Shah
Sir, thank you so much and have the best
Operator
Thank you very much. The next question is from the line of Adity Jaswal from Smith Limited. Please go-aheadMister Aditya, please go-ahead Aditya, please go-ahead with your question. Since the participant is not responding, we’ll move on to the next question. The next question is from the line of Navid Virani from Bastian Research. Please go-ahead.
Navid Virani
Yeah, hi. Thank you for the follow-ups. I have a few more questions. Sir, can you give an understanding of the current bid book and what does it comprise of?
Pooja Dhruve
Movement you say, what is it comprised of you mean to say in terms of type of work or in terms of zone or what you mean?
Navid Virani
No, sir, every time we give an understanding of what is the big book amount and what are the major projects which form the part of that big book? So that is something which I wanted to know.
Pooja Dhruve
I’ll give you a brief. The residential project it is INR110 crore. Temple development is INR800 crores and non daily development work is INR1,200 crore. That improve. Then front development work of INR400 crores. Residential project at Ahmeda was INR350 crore, corporate at INR480 crore, residential at Mundra, INR1,250 crore, a township at Mundrad, INR2,300 crore, museum at Ahmedabad INR100 crores and in Tier-1 for industrial plant at, INR120 crores.
So it is about INR7,101. This big pipe.
Navid Virani
So this is the outstanding big book.
Pooja Dhruve
No, I’m saying pipeline item. You ask for the outstanding orders? You go. Sorry, sorry, sir. Sorry. Okay. Outstanding orders at least.
Prahaladbhai S. Patel
Yeah. So it is already there. Bifurcation is already there in the presentation.
Navid Virani
Ma’am, I wanted to know the bid book, outstanding bid book, not the order book.
Prahaladbhai S. Patel
So that’s what has explained means possible pipeline only.
Navid Virani
Yeah. Okay, okay. Perfect, perfect. Next one, sir, I think last call you mentioned that we are looking at around projects worth around INR10,000 crores from Adani Group itself over the next two years. So are we on-track to achieve that?
Pooja Dhruve
Yeah, it is see, it all about the execution and the performance and how the project design and the ground level work goes on. So as and when the projects are coming up, we are discussing in general on a larger order book. But as and when the projects are materialized, one by others, it is being converted into orders.
Navid Virani
So that’s helpful. And sir, lastly on the work you mentioned. So are we actively participating — I mean, have we started participating in with already?
Pooja Dhruve
No, no, we have already started little mobilization at, one of the project in. The land is available by Adani Group, where we are going to construct 5,200 houses. There is no development exactly on land as of now. It will be in the outskirts of the where the people will be shifted later on. So there is two projects already under discussion, which is related to Dharav development.
Navid Virani
Okay, okay. So this is a project where the existing population will be shifted and then the construction will start.
Pooja Dhruve
Yeah, exactly, exactly. Okay. Okay. Thank you. Thank you so much.
Operator
Thank you very much. Thank you very much. The next question is from the line of Shafam Jay M Financial Limited. Please go-ahead.
Unidentified Participant
Sir. After of our total order book, what is the share of fixed-price contracts?
Pooja Dhruve
What is the share of
Unidentified Participant
Fixed-price contracts?
Pooja Dhruve
Peaks price on thatNow by exactly which are the fixed-price project will come back to you.
Unidentified Participant
Okay.
Pooja Dhruve
Because some of the projects are high items we have not prepaid that list of — which are the outstanding order booking the fixed rises and once item rated. I have to check.
Unidentified Participant
Okay. Okay. And secondly, of the bid pattern of INR7,100 crores, what would be Adani share?
Pooja Dhruve
I think it is about 50%, 60% is Adani.
Unidentified Participant
Okay. Okay. And sir, lastly, on the Budao project, so we wrote-off the INR8 crores of VG in this quarter during the P&L. So what other items are still outstanding that can be written-off in future? And what is the status right now in the?
Pooja Dhruve
Yeah, I — yes, sure. I’ll about the outstanding from project. So this eight CR was the performance bank guarantee which has been taken and so that we have expensed off. Now on-balance sheet, there is a six CR receivable from project. So CR is 1.81 CRE is against retention and other four CREs against the mobilization advance, they have excess recovered.
So they have recovered with normalization guarantees also, which already they recovered from our RABs. So that is still we are carrying on our book because it is receivable by us, whereas the retention money of 1.87 that we have already provided for. So we are showing on the receivables, similar amount of provision is done in ECL, expected credit-loss.
Unidentified Participant
So incremental only INR6 crore loss can come from that project right now.
Prahaladbhai S. Patel
Four CR only. So if suppose that excess mobilization we cannot recover, that will be four.
Unidentified Participant
Okay. Okay. And ma’am, what is the state-of-the project? So did it go-forward or how is it in the courts right now, the status?
Pooja Dhruve
Project is totally closed. They may go for as they have already terminated our part. So they will be going for retending, but yet then the project is status quo.
Unidentified Participant
Okay. And sir, any other projects where a similar nature or some issues are there or we can see some kind of dated receivables or write-offs anything apart from these UP projects?
Pooja Dhruve
I would say God that they should not in the future also. Actually, we are not able to visualize such type of situation, sometimes things goes on a different line because of different situation, but it was not expected or neither I expect any of that project should go in future.
Unidentified Participant
Okay. And lastly, on the margin side, while you again reduced the guidance. So is there any upside risk-on the margins for over 8% to 9%
Pooja Dhruve
It is not about reduction, it is more about the performance and availability of labor and the crisis through which the construction industry is going on in the since last 1.5 years, two years or the next one year or so. So just I’m making myself a little bit safe in terms of percentage by 1%. Otherwise, we already given you 9% to 10%. Now I’m saying 8% to 9%.
Unidentified Participant
Okay. Okay. Thank you, sir. Those are my questions.
Operator
Thank you. Thank you very much. Before we take the next question, we would like to remind participants who wish to ask a question may press star in one at this time. The next question is from the line of Sanjay Kohli from Goldstone Capital. Please go-ahead.
Sanjay Kohli
Yeah, good afternoon. Thank you., firstly, first question is on the coordination now with the Adani Group and you know, are they fairly hands-off in the management structure and letting you do things the way you always have or there have been some significant changes.
Pooja Dhruve
See, the whole correlation has been done on the baseline that we will be the only person who can understand execution and execution pace and how to manage a construction company. So the group doesn’t Want to enter into the execution part at all. It will be the financial part. They were there, they would like to help us so that our cash-flow is maintained and the order book is maintained and we are better in position to execute at a faster pace. Otherwise any — any interference from their side on the execution side, today is also zero and for next five years, they have added that they do not want to enter into a existing management as far as execution is concerned.
Sanjay Kohli
Right. So they want to stay away from that. Now in the presentation, one of the slides, the eight-year CAGR has been mentioned for the revenue, EBITDA and then PAT, I mean it goes from 25%, 13% and down to rock-bottom under 4%. So in the next phase of our journey, I will this somewhat turn-around and reverse where profitability starts going up?
And are we adding, for instance, in the immediate future some new skills like bridge building or a road building? Can we see — will we see that in the company so that you know this profitability goes up?,
Hetal Patel
I think this is something which is — I don’t know-how you have that perception that bridge building and road building have a better margins. But as far as companies profile and the company’s pass is concerned, we are never going to go into any infrastructure projects. Neither we have that expertise also. As far as the margin thing is concerned, I think started at 25%, we have never committed for 25%.
We had a profit of 16% when the — there was no GST, it was service tax when most of the materials were supplied free of course, and the profit was on the overall project side and the cements is not included, the margins were around 16%. Later on, it will stabilize at 11% 12% since last three years. And this last year only, we had a bad impact of this 4% just because of the expenses about INR60 crores.
And if you seriously add to INR170 crores INR60, it will be in the same range of 9%, what we have been doing last two-quarter — last year also.
Sanjay Kohli
So, by coming from the space, from a metro space where one has witnessed a resurgence in the real-estate over here. And standalone developers here in cities like Delhi, the kind of profitability they are getting. So we are not a development company, but yeah, we will be sort of consider we — I mean it’s a hugely profitable area to consider getting into because PAT CAGR of 4% over eight years is — you know this has to improve.
Prahaladbhai S. Patel
See, that has been mainly affected due to the profitability of this year also even certain portion of last year also. So this may improve if we — I mean, since the CUP projects are already concluded. So during this current financial year also, it will be on a different stage may be you can say it’s a different it’s not as at par at our earlier yes.
Sanjay Kohli
Okay. Thank you. Hi, thank you for the opportunity.
Operator
Thank you very much. The next question is from the line of Adity Jaswal from Smiths Limited. Please go-ahead.
Aditya Jaiswal
Thank you for the opportunity, sir. Just wanted to know that from this total order book of INR7,000 crores, what amount of the orders that will be converted in FY ’26? And for the revenue side, how much amount will be coming from the new orders?
Hetal Patel
Can you repeat the question, please?
Aditya Jaiswal
Sir, from the INR7,000 crores order book that you have, how much revenue that you will want to convert from the INR7,000 or 7,000 is order book for FY ’26 and how much revenue will be coming from the new orders for FY ’26?
Hetal Patel
So out of this INR7,000 crore, I think we’ll be in a position to get about 30% to 14% at least in this year and the rest of the revenues which are going to come in the next whole year order book, that will be in the range of INR400. Usually projects coming after the first-quarter, they do not get converted into revenue till the next quarter. I think next year.
So it will be very less revenue from the new orders and mostly it will be from the existing order book, which we are expecting.
Aditya Jaiswal
Sir, second question that the latest orders that we have got, one is from City Research Center and second is Guest House. Can you throw some light on these two orders?
Prahaladbhai S. Patel
Sorry, can you please repeat?
Aditya Jaiswal
Sir, the PPD that you have mentioned, you have received two new orders.
Pooja Dhruve
One is for is very low, sir, your voice is very low. We are not able to understand.
Aditya Jaiswal
Hello. Hello. Hello. Yeah. For the recent two orders that you got, one for Medicity Research Center and the second one is guesthouse at Shanthiram. Can you throw some light on these two orders?
Hetal Patel
See Medi City and Ahmedabad is the other new group coming two medical hospitals, one is in Khmedabad and one is Mumbai. So we have got the order for Ahmedabad, the medical college and medical hospital. And the guest house work which I have said that is also a group leadership building, which requires people to stay back.
So that’s the hostile guest house for their leadership course which is in Santi.
Aditya Jaiswal
Sir, any timelines that you’re expecting to complete this order?
Hetal Patel
I think both the orders are having a timeline of 18 months.
Vaibhav Shah
Okay. That’s it.
Operator
Thank you, sir. Thank you. Thank you very much. As there are no further questions from the participants, I now hand the conference over to PSP, sir, for closing comments.
Pooja Dhruve
Thank you. Thank you all for joining us on earnings conference call today. Thank you for your support and interest 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 Investor Relation Advisor and Young and they will connect with you offline. Thank you again all of.
Prahaladbhai S. Patel
Thank you very much.
Operator
On behalf of Smith Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.