Spml Infra Limited (NSE: SPMLINFRA) Q3 2026 Earnings Call dated Feb. 17, 2026
Corporate Participants:
Selina Sheikh — Analyst
Arun Kumar Agarwal — Vice President – Accounts & Finance
Samir Patel — Chief of Technology and Operations of BESS segment
Manoj Digga — Executive Director Commercial and Chief Financial Officer
Analysts:
Hardik Gandhi — Analyst
Maitri Shah — Analyst
Hemanth Soni — Analyst
Sanjay Nandi — Analyst
Hardik Gandhi — Analyst
Kritika Khurana — Analyst
Priyanshi Mehta — Analyst
Kamal Jeswani — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to SPML Infra Limited Q3 FY ’26 Earnings Conference Call hosted by Go India Advisors LLP. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Ms. Selina Sheikh from Go India Advisors LLP. Thank you, and over to you, ma’am.
Selina Sheikh — Analyst
Hello, everyone. A very good afternoon, and welcome to SPML Infra Limited’s quarter three and nine months FY ’26 earnings conference call hosted by Go India Advisors. From the senior management, we have with us on the call today, Mr. Manoj Digga, Executive Director and Chief Financial Officer; Mr. Samir Patel, Chief of Technology and Operations of BESS segment; Mr. Arun Agarwal, Vice President, Finance and Accounts; and Mr. Kapil Joshi, Investor Relations Officer.
Before we begin the earnings call, we must remind you that the discussion on today’s call may include certain forward-looking statements and must be therefore moved in conjunction with the risk that the company faces.
I would now like to hand over the call to Mr. Arun Agarwal for his opening remarks. Thank you, and over to you, sir.
Arun Kumar Agarwal — Vice President – Accounts & Finance
Good afternoon, ladies and gentlemen. I welcome you all to the quarter three and nine months of FY ’26 conference call for SPML Infra Limited to discuss the operational and financial performance of the company. Our results and investor presentation have already been posted on the stock exchange website, and I hope everyone had a chance to go through them.
Over the last 45 years, SPML Infra has built strong capabilities by delivering 700-plus milestone infrastructure projects across various states and earned valuable qualifications across the water and power businesses. Rebuilding on strength and reshaping for future, we are transitioning to SPML 2.0, focused on disciplined growth, selective bidding and higher margin opportunities. The current fiscal have been pivotal with strong order inflows and steady execution across water, power and the emerging BESS segment. We remain focused on profitable and sustainable growth in these long-term growth-oriented sectors.
Now moving on to some updates on the infrastructure sector. As India advances towards its Viksit Bharat mission, infrastructure continues to act as a key engine for economic growth, employment generation and long-term financial stability. The union budget of FY ’26 reinforces infrastructure-led growth with a capital outlay of INR12.2 lakh crores with substantial allocation of INR85,222 crores for urban development, supporting India’s Viksit Bharat vision.
Continued emphasis on water infrastructure with INR67,670 crores for Jal Jeevan Mission, INR8,000 crores for AMRUT 2.0, INR5,226 crores for irrigation and river interlinking and INR3,100 crores for Namami Gange is structurally positive. The water supply projects under the overall allocation of INR17 lakh crores for the Jal Jeevan Mission, AMRUT 2.0 and Namami Gange river linking programs and others will be implemented on a long-term basis. These priorities align strongly with SPML Infra’s core strength in water, sanitation and reuse projects. We are well positioned to leverage on the opportunities to drive quality order inflows through selective bidding while maintaining margins and returns.
India’s energy transition targets of 500 gigawatt of non-fossil capacity by 2030 with installed capacity of already at around 263 gigawatt. The battery energy storage capacity is projected at 236 gigawatt by FY ’32, translating into a USD57 billion market by 2032. And the union budget for FY ’26 reinforces this with INR1,09,000 crores for energy infrastructure, around INR1,000 crore of viability gap funding for BESS, incentive for lithium-ion manufacturing and financing reforms via PFC and REC.
SPML Infra has strategically entered into BESS with end-to-end EPC capabilities and a 2.5-gigawatt Phase 1 manufacturing facility at SUPA MIDC, Pune, which is expected to come up in Q1 FY ’27 is scalable beyond 10-gigawatt, supported by a technology partner with Energy Vault USA. We are actively and aggressively bidding for BESS opportunities, supported by strong policy guidelines, improving project economics and catering to grid scale demand. The opportunities are over and above current opportunities of approx. INR50,000 crores in power substations, which is also a core strength of the company.
Coming to our operational performance, we are pleased to inform that for most of our recently awarded projects, where design and drawing approval typically takes 6 to 12 months, the required approvals have now been secured. Project execution has commenced, providing us with clear visibility on revenue recognition and profitability from these projects going forward. During the 9 months of FY ’26, SPML Infra witnessed strong order momentum, securing fresh order inflows of INR4,324 crores across water projects in Jharkhand, Madhya Pradesh and Rajasthan besides Tamil Nadu. This figure represents the total project value, including order awarded through joint ventures.
Our current order book stands at INR4,358 crores, including the taxes, which reflects SPML’s proportionate share in JV projects. The order book comprises approximately INR1,540 crores of legacy orders and around INR2,800 crores of newly secured projects, providing healthy execution visibility for the coming quarters. We have also bid for tenders worth approximately INR8,000 crores in Q3, Q4 of the current year across the water BESS and power segments, which are active in nature.
Our overall exposure in Jal Jeevan Mission is substantial. And for the JJM projects, billing and fund receipts received from the government is strictly in line with the execution progress, ensuring working capital discipline. We follow a highly selective bidding approach aligned with our prequalification strengths, focusing only on fully funded projects, DPR approved and higher-margin projects with robust contractual structures. We are well positioned to achieve our targeted business volume for the current fiscal with potential upside next year, while maintaining our focus on assured funding, timely execution and margin-led sustainable growth.
We continue to explore opportunities across water and power EPC tenders currently under various stage of bidding across Maharashtra, Madhya Pradesh, Jharkhand, Bihar, Kerala and other states. The total estimated opportunity size across these markets is approximately INR5.7 lakh crores. Given our strong prequalification status, execution track record and regional presence, we expect a meaningful conversion of these opportunities into order inflow during FY ’27.
In parallel, we are strengthening our presence in the battery energy storage system segment. We are actively participating in various tenders floated by NTPC and other agencies with a clear focus on maintaining our targeted margin profile. Over the next 6 months to 12 months, we see a visible pipeline of approximate INR9,000 crores in BESS orders, and we remain optimistic about securing a healthy share of these opportunities.
Coming to our BESS plant update, the development of the manufacturing facility is progressing in line with our planned timelines. The construction of the factory is progressing as planned with the structural framework currently being erected at the project site. The machineries are expected to reach us during February and March, after which commissioning will commence in a phased manner. We also anticipate making the plant operational from Q1.
And coming now to our financial performance, as of nine months of FY ’26, SPML Infra has meaningfully strengthened its financial position with a steady progress on deleveraging, including around INR317 crores of debt repaid over the last two years, which includes INR47 crores of prepayment on the overall liability. The residual around INR383 crores payable to NARCL is spread over six years and is expected to be fully settled through existing arbitration awards in hand of INR621 crores, which is inclusive of accumulated interest up to January ’26. While additional arbitration claim of INR4,417 crores provides visibility of around INR1,500 crores inflows over the next seven years to eight years.
Also, during the year, company has received arbitration awards sum of INR30 crores, amounting to INR22 crores from the CWSSB [Phonetic] and INR8 crores from Delhi Jal Board. With this INR312 crores worth of awards has already been realized over the last three years. The company expect a sizable cash flow after the payment of agreed NARCL debt, which can be utilized for the future growth of the company.
During the quarter, our credit profile was reaffirmed as stable by ICRA and further ratings are under review, reflecting the ongoing strengthening of our balance sheet and cash flow visibility. Our sanctioned bank facility has been enhanced from INR205 crores to INR505 crores by leading public sector bank. We have received approval for a surety bond of around INR180 crores from the leading insurance companies, further enhancing our bidding capabilities. This expanded limit provides greater flexibility to bid for larger projects and manage working capital more efficiently.
For nine months FY ’26, standalone revenue stood at INR594 crores with EBITDA of INR62 crores and PAT of INR48 crores, translating into margins of 10.4% and 8%, respectively. Q3 FY ’26 revenue was INR231 [Phonetic] crores, up 21% year-on-year basis, with EBITDA stood at INR26.3 crores, translating into margin of INR11.4 crores [Phonetic] and PAT stood at INR20.5 crores with margin of 8.9%.
EBITDA is up by 86% and PAT is up by 97% year-on-year basis. The completion of legacy lower-margin projects and increasing contribution from higher margin new orders has already begun to lift profitability, positioning the company on a stronger and more sustainable earnings trajectory going forward. During the quarter, the interest cost has increased mainly on account of onetime interest cost on income tax for the earlier years post assessment and BG and LC charges and the interest on the mobilization advances on the new projects.
In the recent budget announcement, the Honorable Finance Minister has proposed to carry forward the MAT credit for future tax liability only under the new tax regime. Accordingly, the company has planned to shift to new tax regime from the next financial year, where the existing carryforward losses can be adjusted with the future profit without need to make any provision for MAT. This will help the company to save the tax expenses of next few years and subsequently adjust the MAT credit. Considering the available allowable expenses under MAT, no MAT provision has been made in Q3 FY ’26 and need not to provide in Q4 FY ’26 also.
The company is having a strong current ratio of 1.81 times, as of Q3 FY ’26, which shows the sufficient liquidity into the company. The current ratio is slightly impacted in the current quarter because of the various bills raised in the end of the quarter and the realization of which will be received in the Q4. Further, the company is expecting more than INR100 crores latest by 22nd April ’26 from conversion of warrants, which would improve the liquidity further.
With a significant portion of our projects now entering the billing phase and execution momentum accelerating, we are confident of delivering a strong Q4 performance. Performance remains aligned with the guidance outlined earlier, has translated into tangible results in nine-month FY ’26, and we remain well positioned to meet our full year growth for FY ’26 and around 25% to 30% on the revenue and approximately 40% to 50% on the PAT. With the conversion of the awards from the various tenders currently floated by different states in water, power and BESS segment, we shall provide the guidance for FY ’27 in our yearly con call along with the yearly results.
That is all from us. We will now open the floor for questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The question is from the line of Hardik Gandhi from HPMG Shares & Securities. Please go ahead.
Hardik Gandhi
Hello, sir, congratulations on a set of good numbers. Just wanted to know — three questions. First is, given that we did not pay tax this quarter, and you mentioned there is a tax adjustment, which is about to happen for the earlier losses under MAT. So can you quantify the amount of outstanding losses, which we can avail in the upcoming quarters against the profit?
Arun Kumar Agarwal
We have roughly around INR200 crores of loss and then the further assessment is going on. So next few years, we don’t have to pay tax.
Hardik Gandhi
Okay. So for a few years or for a few quarters.
Arun Kumar Agarwal
A few years because we have the accumulated loss, which will be sufficient for this year, next year and one more year definitely.
Hardik Gandhi
Right. The second question was on the line of the BESS front, where we can see a lot of players are entering, they are putting up their manufacturing, right? So just wanted to understand from your end, whether, first of all, are we on track for Q1? Are we expecting numbers to start coming in our top line as well as bottom line in Q1? Or are we expecting meaningful contribution later on? And second is, we did mention earlier that we are going to set up a container manufacturing facility also, which would help backward integrate. So just your thoughts on these two?
Samir Patel
Two things as we — Arun has explained, our BESS plant is on track. We are expecting the commercial production in Q1. Basically, the construction work has almost completed and is in the advanced stage of progress. Machinery equipment order we have already given and they are expected to come in February and March. So we — our BESS plant is on track. On the tender, we are — already participate in it, irrespective whether the BESS plant start or not, we are participating into various tenders, roughly around INR4,000 crores worth of tender we are participating. There is a visibility of roughly around INR8,000 crores to INR9,000 crores going forward into the BESS tender, and we are participating into that. And based on the — based on the — our selected criteria and margin category, we are hopeful that we will get in the Q1, some order Q1. Next year, we will get a substantial order from the BESS operation also.
Hardik Gandhi
Yeah. And for the container manufacturing facilities, where…
Samir Patel
Containers, we are still evaluating. We are — first, we have to internally prepare the DPR. And yes, we have the plan to do that. But till date, we have — we are evaluating our internal level, internal committee and at the Board level. Once they approve, we will declare and we will inform to you in our subsequent con call.
Hardik Gandhi
Understood. And just last question on the bottom line, where next year, given that our legacy projects will be in the last phase of execution, our new projects will be kicking in as well as the BESS will be kicking in, right? So all these will be giving a margin boost, right? So I’m just assuming our bottom line to grow by what percentage? You mentioned a 50% bottom line CAGR, but I think so it should be more than that given the BESS as well as the new projects are more value accretive?
Samir Patel
No, this guideline, what we have given guidance that is for this year and the Q4. The overall year growth, we expected roughly around 25% to 30% growth into the top line and roughly around 40% to 50% growth into the bottom line. That is for this year.
As we have informed in our opening remarks that the yearly guideline we will give into the — our yearly con call because by that time, we will have the clarity on the various tenders, which are at the moment floated, and we have participated into that. Based on the visibility of that, we will give the annual plan of the next year in our yearly con call. Plus, we are in the process of preparing our AOP. Once that will be prepared, it will be better for us to give you the guidance for the next year.
Hardik Gandhi
Understood sir. Okay. That’s it from my end. Thank you so much. All the best.
Operator
Thank you, sir. The next question is from the line of Maitri Shah from Sapphire Capital. Please go ahead.
Maitri Shah
Yeah. Hello. Good morning. Am I audible?
Arun Kumar Agarwal
Good morning. Good morning, Maitri. Yeah. Hello. A few questions. Firstly, on the current order book that we have of INR4,300 crores, do we have any power projects right now in the order book? Or this is all water-related projects?
Samir Patel
We have legacy power projects. The new we have not taken any power project. We have bidded. There is a…
Maitri Shah
Okay.
Samir Patel
In power, we are very actively into the substation. And from the last year substation, volume was very low. But from the last few months, various tenders of the substation has started coming, and we have participated into that. So at the moment, our legacy project has roughly around INR200 crores to INR300 crores of the power project. But the new order, nothing is in the power.
Maitri Shah
Okay. Secondly, what — how much is the receivables we had left to receive from the JJM side? And also, if you could give the JJM portion of the order book, if that’s possible?
Samir Patel
Can you pardon, again?
Arun Kumar Agarwal
JJM orders.
Samir Patel
JJM order. JJM — the old order, as we have told in the opening remarks, old order, we have roughly around INR200 crores to INR300 crores in the legacy that left into the JJM. The new JJM orders all as per the new scheme of the government, where we have received two orders from the JJM, one in the Bharatpur and another is into the Kekri, which is recently and which are executing well.
Maitri Shah
And what is the value of these new orders?
Samir Patel
One is INR1,438 crores, second is INR380 crores something.
Maitri Shah
INR380 crores. Okay. And the receivables outstanding from JJM currently are?
Samir Patel
JJM old, we don’t have. In the Kekri, we have recently towards the end, we have issued certain deals, which we are expecting the commence in this month.
Maitri Shah
Okay. Next — the next question I had was on the closing order book for ’26. So are we expecting any order inflow in quarter four from the power side? And what sort of order book value do you expect by the end of FY ’26, if that number is possible? Any targets you have?
Samir Patel
Till date, as I told you, the entire new order book, we have received INR4,323 crores, which includes the JV. If you take our share outstanding is roughly around INR2,817 crores. We had legacy order of roughly around INR1,540 crores. So the total order and as on 31st December is roughly around INR4,358 crores. We have bidded for roughly around INR8,000 crores of orders, roughly around INR5 lakh crores of order visibility is there in the various states. Whenever that will come, we will keep on bidding. So we are expecting…
Maitri Shah
Any targets you have for March ’26 closing order book figure for — including the water and the power business?
Samir Patel
March ’26 order book will be as it is because now whatever tender is coming, if we bid, it will not convert by March. So March ’26, this will be the order book INR4,358 crores.
Maitri Shah
But we’ll be executing some of the orders in this quarter, right? So what sort of orders are we expecting in the quarter four inflow?
Samir Patel
If you see in the bidding process, it takes from bidding to conversion and the signing of agreement or LOI, it takes roughly around three months to four months. Although we have bidded to INR8,000 crores of orders, but we are not expecting that to be converted into by March. It may be in the first quarter, we will get some conversion of the bidded orders.
Maitri Shah
And what is the win ratio we have on these orders that we bidded?
Samir Patel
Pardon?
Maitri Shah
Any win ratio we have for the water orders or the power orders that we bidded?
Samir Patel
There is no win ratio as such because as I told in our remarks that we are very, very selective on certain criteria of our order selection. We don’t bid where the funding is not there. We don’t bid where the margin is less than 10%. So if it is — if there is a margin — our bidding is always more than 10%. So we can’t — that way, there is no thumb rule that how much bid and how much getting converted. But definitely, we are the leading player and we have the PQ and we have the ability. We are expecting a sizable order in the next year from the order opportunity what we have in the water, power and BESS.
Maitri Shah
That is great. Secondly, on the timeline. So what sort of timelines you have on the water orders and the timeline you have for the substation orders, the BESS orders that you’re going to be bidding from now on — timeline on the execution?
Arun Kumar Agarwal
In the water project, generally, it is coming from 2.5 years to 4.5 years because it’s a design drawing project. So basically 3 months to 6 months to 12 months, it is required to get the approval of the design drawing and then roughly around 2.5 years to 3.5 years is for the completing of the project. Power project is normally 24 months. That is the period by which transformer 24 months to 28 months, that is the power because the substation and transformer is a long leading India, leads period. And BESS is between one year to two years — two years — one year to two years. Samir if you want to add here.
Maitri Shah
Okay. And on the BESS side, what projects are we bidding for? Is this EPC and supply? Or are we also going to take part in the O&M part of the project? And also, are we going to do the BOT projects as well? Any color on what sort of BESS opportunity we are bidding for?
Arun Kumar Agarwal
BESS at the moment, we are bidding for the EPC only, but we are also exploring. At the moment, only EPC.
Maitri Shah
EPC and the supply from our own facility, correct, right?
Arun Kumar Agarwal
EPC, it includes the supply, it includes the design, it includes the fabrication construction, everything.
Maitri Shah
So the entire 2.5-gigawatt hour, are we going to use that captively or are we expecting to sell that to any third party EPC players as well?
Manoj Digga
That’s the — we have the battery pack facility. The same battery pack will be utilized for our EPC business and we will also do the OEM for any EPC player who are in the BESS. So their battery pack requirement also we will set it — we will meet out from our battery pack plant. It will be both made.
Maitri Shah
Okay, that is great. And also you gave some targets for FY ’26, 25% to 30% growth and for quarter four is looking quite heavy with the execution. Are we confident on the INR350 crores, INR400 crores of execution in the fourth quarter of FY ’26?
Arun Kumar Agarwal
Fourth quarter will be better. As I told you, in the design going the approval is taking slightly longer time because that decide each and every aspect of the pipe size, pipeline area, forest, clearance, all these things are there at the design drawing time and subsequent to that it’s a fast track and where we have a strong team of execution and strong relationship with the suppliers. And we do maximium into the escrow accounts mechanism. We have the sufficient bank limit. So I’m not finding any problem in execution of the project. And since as Arun has told we have got all the clearance from our three plant, all the major design and drawing approvals. So we are expecting a good healthy Q4 this year.
Maitri Shah
Okay. And the 2.5-gigawatt hour capacity, that’s the Phase 1. What sort of capacity are we adding in the Phase 2? Is it similar or a bit higher?
Manoj Digga
We have the plan to enhance it to 5 and finally to 10.
Maitri Shah
Okay, fine. And [Technical Issues] capacity would you expect the revenue from this battery pack?
Manoj Digga
We will inform you into the yearly con call because by that time we have our EOP ready. But next year will be substantially better compared to these financial year. Because one, all the project revenue which we got the design and drawing approval will be executed in full swing into the next year on our approved project. Second, there is a visibility of INR5 lakh crore tender which are coming into the Q3, Q4 and Q1. We are expecting some revenue from there, some order conversion from there which may give us the result into the Q4 into the next year. BESS, we are expecting a sizable order. We are expecting the power sector service station, good order. So we are expecting the next year will be much better both on the top line and the bottom line. But however, the guidance we will provide you in our…
Maitri Shah
And the margins on the BESS and substation side, what sort of differential you have with the water. So are they in the range of like 12% to 13% or in the same range of 10% margins?
Manoj Digga
As I told you, we have a clear discipline that less than 10% we will not take any business, whether it is BESS, service station or water.
Maitri Shah
Okay. Yeah. That is it for my side. Thank you so much.
Operator
Thank you, ma’am. [Operator Instructions] The next question is from the line of Hemanth Soni, an individual investor. Please go ahead.
Hemanth Soni
Thank you for providing me the opportunity. Just wanted to ask one thing. The operating EBITDA for FY ’25 is I guess INR43-odd crores. So even if I do a math and take your guidance of a 40% to 50%, I mean profitability, the EBITDA, operating EBITDA should be close to INR60-odd crores for FY ’26. Right? And we have already done an operating EBITDA of around INR43 crores, I guess in nine months of FY ’26. So is it — I mean your guidance and the number don’t match. So is it fair to assume that are we being little conservative in giving the guidance for FY ’26 in terms of profitability?
Manoj Digga
If you see the yearly number of our last year EBITDA, operating EBITDA was INR62.88 crores. At this in the nine months we have made the EBITDA of INR61.71 crores. So we are able to achieve the entire last year EBITDA into the nine-month approximately and we have the Q4 also which we feel will be slightly better because of our approvals which we have obtained. This quarter we had the EBITDA of INR76 crore. So the next quarter we should have slightly better of this. So that’s the guidance we have given. I was actually not factoring it in the other income. I was — I mean talking about the operating EBITDA. This other operating EBITDA which you are saying the other income minus.
Hemanth Soni
Yes, yes, yes. I have the numbers in front of me. I guess they are close to INR43 crores for nine months of FY ’26, I guess on a console level.
Manoj Digga
No. If you do that then even if you minus the other income which is basically the interest income and various that income which is related to the operation of the company. So if you minus here and if you minus into the last year also, so it will be reduced by INR16 crores from here and it will be reduced by INR11 crores from the last year. So it will be roughly around INR50 crore. And here it is around INR44 crore. And we have the last quarter again which will be substantially high, so.
Hemanth Soni
Yes sir. So it should be close to INR60-odd crores for FY ’26. So it is basically flat on a quarter-on-quarter basis. I mean it will be basically flat, right?
Manoj Digga
As I told you the last quarter will be better. I can’t give you the number which one. Whether it will be INR60 cores or INR65 crores or what. The revenue should grow EBITDA. Total EBITDA should grow more than around the — and PAT should grow more than 30% to 35% — 40% to 50% and the revenue should grow by 25% to 30%. That is the overall guidance. Exact number we will not able to give. But we can only tell you that the Q4 will be better.
Hemanth Soni
So Q4 should be better on a quarter-on-quarter as well as on a year-on-year basis, right.
Manoj Digga
It will be quarter-on-quarter and it will be quarter of the last year also.
Hemanth Soni
Okay, fine. Thank you very much, sir.
Operator
Thank you, sir. The next question is from the line of Sanjay Nadi from VT Capital. Please go ahead.
Sanjay Nandi
Hello. Hello.
Operator
Yes sir. Please go ahead.
Sanjay Nandi
Yeah, yeah. Good afternoon, sir. Thank you for the opportunity. Sir, just like as you mentioned like we would be getting some orders from the BESS space to the quantum of INR8,000 crores in the coming years. So can you please quantify like what would be the entire world for the BESS. Like what kind of industry size would be for the BESS.
Manoj Digga
Samir, can you highlight here?
Samir Patel
Yes, sure. So the orders which we anticipate will be purely grid-driven segment. So it will be more related to 5-megawatt DC block systems and 6.26-megawatt DC block systems.
Sanjay Nandi
So sir, can you please specify the entire industry size of the BESS? What kind of industry we would like to be catering with our new capacity for the industry size.
Samir Patel
Yeah. So the entire industry size is about 236-gigawatt for the next five years. So by FY ’32 for India this is the scale. 236-gigawatt hour. Now what SPML is doing is we are positioning for at least 5-gigawatt hour in Phase 2 which will be in the next one to two years and then we will expand that further to 10-gigawatt.
Sanjay Nandi
And on a contrary of 236-gigawatt capacity by FY ’32, where we are standing as of now, sir?
Samir Patel
Because this is also driven by the tenders which is floating around the market. So it is purely driven by that.
Sanjay Nandi
No, no. I’m asking like what is the current capacity as on date, as we talk, sir?
Samir Patel
Sir, what is the — sorry.
Sanjay Nandi
What is the current capacity of this BESS as we talk? Like you are guiding for a 236-kilowatt kind of capacity by FY ’32. Right? So what will be the capacity as we talk, sir?
Samir Patel
So in terms of the container itself, it is 5-megawatt. That’s the capacity. 5-megawatt is like 5,000-kilowatt hour. Okay.
Sanjay Nandi
And this is as on date, right?
Samir Patel
Yes. As of date is 5,000-kilowatt. You can put it that way. So 5-megawatt into let’s say 100-megawatt project, you’re talking about 20 containers. And if you talk about 1-gigawatt, you’re talking about 100 containers.
Sanjay Nandi
Okay. Got it. And what is the broad margin profile.
Manoj Digga
I also wants to add like if you see the 266-gigawatt which we are planning by 2032, which size-wise roughly more than INR5 lakh crore business which is going to become into the next five years and it will not be equally distributed. But that is the minimum which the government has already announced. INR5 lakh crore business into the BESS is already there. Therefore it will grow further.
Sanjay Nandi
Got it sir. And sir, can you please guide us like what would be the margin profile of this BESS like on a soft note and also on a higher note sir? Any broad margin range, sir where this industry will operate?
Manoj Digga
Well, as I told you, it’s a very clear cut guidance of our company that less than 10% we are not, so that is one. In OEM also we will try to get the 10% margin and BESS on the EPC, definitely less than 10%. We are not going to do that. So for all our new project including the BESS and power and water you can consider 10% minimum as our margins.
Sanjay Nandi
And what could be the peak margin, sir, in this business?
Manoj Digga
Peak margin we will keep on announcing. Whenever the order will come we will get the order. Because 10% is the minimum. But maximum we can bid and whatever we can get that. But 10% is the minimum. For your calculation you can consider 10% anything. But we are taking like other projects whenever we take we try to maximize more than 10%. But 10% is the minimum by which we will take.
Sanjay Nandi
Got it sir. Got it sir. Sir, wish you all the very best. That’s it from my side. I’ll come back in a queue, sir. Thank you so much.
Manoj Digga
Thank you.
Operator
[Operator Instructions] The next question is from the line of Hardik Gandhi from HPMG Shares and Securities. Please go ahead. Mr. Hardik, your line has been unmuted. Please go ahead.
Hardik Gandhi
Hi. Sorry. Am I audible?
Manoj Digga
Hi, Hardik.
Hardik Gandhi
Yeah. So I just wanted to have one follow up on the Power segment where anything other than BESS we are planning to include planning to bid for.
Manoj Digga
If you see Hardik, historically we are the company which is focus into the water and power. And when we say power then it is a substation which we made. Because the renewable energy this thermal more or less stopped from last two, three years and it was more towards the renewable energy. Our power substation business has reduced. But suddenly the thermal power business has started in a big way. And we are expecting roughly around INR40,000 to INR50,000 crore of the substation business which are going to come into various NTPCs and various other states and the PSU unit, we are targeting that order also into our kitty.
Hardik Gandhi
Right. So but that I think is — that is to be planned after four — three to four years. Because all the greenfield thermal plants are expected to get commissioned by ’29 — 2029, 2030, ’31. Right? So by when do you expect us to start getting at least the orders in our books?
Manoj Digga
Order is already floated. Like if you see the roughly around INR8,000 crores to INR9,000 crores of service station order is already floated. It is coming on daily basis. Every month you are getting the service station orders. One does new, they are improving the service station. They are including the base into the service station. And this service station work is continuous. So we are expecting — next year, we are expecting a sizable order into the service station and we are going to take at least one or two order of service station also.
Hardik Gandhi
Correct. So if you can just quantify like if there are INR8,000 crores to INR9,000 crores orders, we are expecting 10%, around 10% to 15% of orders from that kitty or given our experience, we can have a bigger chunk.
Manoj Digga
We should get one or two. Now the substation business will be normally between INR200 crores to INR500 crores order. Now it depends which order we get. But we should get one or two.
Hardik Gandhi
Right. By next year we are expecting. Okay, understood. And what is the execution timeline of the substation projects?
Manoj Digga
It require the transformer where the lead time is 24 months.
Hardik Gandhi
Understood. So 24 months is the rights issue, okay.
Manoj Digga
12 to 12-month.
Hardik Gandhi
Yeah, that’s it from my end. Yeah. Thank you so much. All the best.
Operator
Thank you, sir. The next question is from the line of Kritika Khurana from Finstock Investments. Please go ahead.
Kritika Khurana
Hi. Thank you for giving me this opportunity to ask the question. So my question is how does the competitive landscape for BESS in India look for a mid-sized player like SPML?
Manoj Digga
Can you — Pardon? Can you repeat again? Can you repeat again, Kritika?
Kritika Khurana
Yeah. So my question is how does the competitive landscape for BESS in India look for a mid-sized player like SPML? Also like what is the minimum take or pay commitment if any in your 10-year agreement with Energy Vault?
Manoj Digga
Energy Vault we have already procured the license, we have purchased that and now it is every year our order execution we have to pay 1.75. 1.75. 1.75 is the royalty which we have to pay for which against which they will give us all the upgrade in the technology which they will develop. So in one way for our RD facility we are paying this much amount. On the competitor side on the other sector, other than BESS, in the EPC business it is mainly to the PQ and whoever have the PQ, he has the — they have the eligibility to bid and take the order. We are in the top four to five companies in India into the water and maybe top 10 companies into the power. So that gives us the mileage to take the orders compared to other mid-sized players who don’t have the PQ. Because of our maturity and existence of more than 40 years and our execution of 700 project which we have done, we have the qualification of almost all type of water and power projects which are going to come. And that gives the advantage compared to any other mid sized player because we can take the order.
Kritika Khurana
Okay, understood. And sir, is the company planning any further institutional fundraises to support the BESS capex or will it be entirely funded through promoter infusion and internal accruals?
Manoj Digga
If you see from the last two, three years we have infused roughly around INR460 crores by part — which is conversion update also. The INR460 crore has been raised into the company. The liquidity is sufficient. We are further getting INR100 crores of the warrant money in the Q4 and early part of the trail. So at the moment we have sufficient liquidity plus we have INR500 crore of bank limit. We have INR200 crore, INR180 crore of Surety Bond limit. So at this moment the liquidity is more than sufficient. You can see from our current ratio which is 1.81 and at the moment we don’t have any.
Kritika Khurana
Okay, thank you. That’s all from my end. Thank you.
Operator
Thank you ma’am. [Operator Instructions] The next question is from the line of Priyanshi Mehta, an individual investor. Please go ahead.
Priyanshi Mehta
Thank you for this opportunity, sir. Sir, I had questions regarding the margins of the company. Sir, our operating margins have been under pressure due to legacy process. So what percentage of the current order book? Approximately I think around INR4,500 crore consists of this low margin legacy contract. And when do you expect the mix to shift entirely to high margin project?
Manoj Digga
As I told you, out of the INR4,358 crores gross order which includes our share of JV also INR2,800 crores is the order which is having the higher margin which is the order which we have acquired in last one year and INR1,540 crores is the legacy order. This legacy order will be completed into the next year or maybe one more year. And this new order contribution and proportion will keep on increasing into every quarter, one with the existing order. Second whenever we will start taking the new order and the execution will start.
Priyanshi Mehta
Okay. Okay sir. Got it. I had another question. This with the recent INR159 crore Surety Bond limit secured. How much of a breather does this provide in terms of bank guarantee limit? And also does this free up cash previously held as margin money?
Manoj Digga
No, if it’s — it’s free up. Basically it’s — earlier when we started with the NARCL that time and BG, etc., we had to give 100% cash margin. So now we got the regular sanction from the bank. The margin has reduced substantially low. And it is a continuous process and we will keep on reducing the margin. So that is on the bank side. On the surety one we don’t have to give any margin.
Priyanshi Mehta
Okay. Okay. Got it. That’s it. Thank you.
Operator
Thank you ma’am. The next question is from the line of Kamal Jeswani from U First Capital. Please go ahead.
Kamal Jeswani
Yeah. Hi. Congratulations on good set of numbers. I just wanted to know that are we also pursuing any projects in waste water management?
Manoj Digga
Waste water management, we are qualified but our focus is into the bulk sector where the pipeline, etc. is laying of the pipeline that is our preferred. Because there we have a great connect with the suppliers and the execution normally become fast. But yes we are qualified for the wastewater and we are also looking into the wastewater.
Kamal Jeswani
Okay. And generally what are the margins in this pipeline water projects which we are currently…
Manoj Digga
Less than 10% we don’t take.
Kamal Jeswani
10%? Minimum 10%. Okay. Because I was just I met one of the corporates recently who’s into wastewater management. They are probably having margins in closer to 20%. So I was just thinking it’s a great opportunity. If we are qualified we should also explore where margins can double. So that’s why I just thought of checking with you if management can start.
Manoj Digga
It’s the project to project specific it can be 20%. It can be 10%, it can be 15%. Somewhere it is less than 10%. We don’t take. But there are a few guys who are taking less than 10% also. It depend on project to project. Waste management has certain complexity and certain capex nature. So slightly the margin can be better. And like the distribution also have some complexity because you have to go to the city and you have to do the household connection. So there the complexity is slightly high. The duration is slightly high. Then the margin can be slightly high. When you do the bulk. Then on the on the outer side you keep on laying. So the education is very fast. So slightly margin will be will be lesser than to the waste management. So it depends on two both plus and minus and it’s a call of the company team on each project. Whenever there is a bid, come and we bid for that.
Kamal Jeswani
I got it. Thank you. Thank you for this answer. All the best.
Operator
Thank you sir. As there are no further questions from the participants, I now hand the conference over to management for closing comments. Over to you, sir.
Manoj Digga
Looking ahead, we believe SPML Infra is strongly positioned for sustainable growth. With a strong focus on water, power and BESS, disciplined bidding, strong balance sheet and an improving credit profile, we are entering the next phase with greater financial resilience and clear profitability visibility. Thank you for joining us today and for your continued trust and support. We remain confident in our growth journey and committed to consistent delivering strong results. Should you have any further question, please feel free to reach out to us or our IR advisor, Go India Advisor. Thank you once again.
Arun Kumar Agarwal
Thank you.
Operator
[Operator Closing Remarks]