Spml Infra Limited (NSE: SPMLINFRA) Q4 2025 Earnings Call dated Jun. 02, 2025
Corporate Participants:
Unidentified Speaker
Pranak Premkumar — Investor Relations
Manoj Digga — Executive Director Commercial & Chief Financial Officer
Analysts:
Unidentified Participant
Raman Venkata Kerti — Analyst
Prathamesh Dhiwar — Analyst
Maitri Shah — Analyst
Prathamesh Dhiwar — Analyst
Presentation:
operator
Sat Sam. Sa Sa. Sam Sa Sam. Sa. Sam. Ladies and gentlemen, you’ve been connected to the SPML Infra conference call. Please hold. The conference will begin shortly. Ladies and gentlemen, you’ve been connected to the SPML Infras conference call. Please hold. The call will begin shortly. Sa. Sam Sat Sam Foreign. Ladies and gentlemen, good day and welcome to The SPML Infras Limited Q4 and FY25 earnings conference call. As a reminder, all participant lines will be in the listen only more 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 touchtone phone. I now hand the conference over to Mr. Pranak Premkumar from AD Factors PR Investor Relations team. Thank you. And over to you Mr. Pranayk Premkumar.
Pranak Premkumar — Investor Relations
Good evening everyone. From the senior management, we have with us Mr. Manoj Digga, Executive Director and Chief Financial Officer and Mr. Vikash Sharma, Vice President Finance and Accounts. Before we begin the conference call, I would like to mention that some of the statements made during the course of today’s call may be forward looking in nature including those related to the future financial and operating performances, benefits and synergies of the company strategies, future opportunities and growth of the market of the company’s services. Further, I would like to mention that some of the statements made in today’s conference may involve risks and uncertainties.
Thank you and over to you Mr. Mano Tikha.
Manoj Digga — Executive Director Commercial & Chief Financial Officer
Thanks Pranay. Good afternoon and thank you for joining the conference call of our fourth quarter and full year financial year 25 financial result of SPML intralimte I’ll give you a brief overview of the industry trend business update and then I will walk you through the company’s financial performance regarding the global Indian economy and business momentum. While the global economic environment remains uncertain, recent political development in the country have further added to the complexity. In such volatility situation, the importance of stable infrastructure and essential services becomes even more critical. India’s economy continues to show underlying strengths supported by solid fundamentals and long term policy focus even admits involving challenges.
The government commitment to the infrastructure development remains firm particularly in the core sectors such as water, energy and public services. The water sector in particular is seeing sustained attention through national mission Life Jerry one mission aimed at ensuring access to certain drinking water for all rural households. With over 15.654 crore homes already covered the extended timeline till 2028. We see this as a vital long term opportunity for water infrastructure development companies including ours parallelly the power sector is witnessing significant growth opportunity and we are expecting a sizable business in Bess segment as well as substation business both in volume and capital expenditure.
As government has set up an ambition target of achieving 500 gigawatt of renewable power generation by 2013, we are tremendous prospect. We see tremendous prospect for us to grow both in water and power sector which are the focus area of the company business operation as SPML insurance. We remain focused on contributing to these essential national priorities. Our expertise in developing large scale water and energy infrastructure place us in a strong position to support the government push for unviral water and energy access for all. The government proposed capital expenditure of almost rupees 12 lakh crore through various schemes in water and power infrastructure.
The we are setting up the battery energy storage system production plant which is expected to play a pivot role in India’s transition to clean and sustainable energy. This will enhance our profitability, visibility and competitiveness in Bess manufacturing and will support government vision of Vixit Bharat India’s energy storage market is set for strong growth driven by the 500 GW non fossil fuel capacity target by 2030 as per the National Electricity Plan 2023 storage demand is prospected to reach 236 GW by financial year 203132 with the market size of USD 57 billion which is expected to reach an incredible level of USD 443 million by 2047.
Recently SPML has entered into an exclusive agreement with Energy Vault, a U S based global leader in sustainable energy storage system and technology Partnership will accelerate the development of advanced battery energy storage system in India through technology transfer of their B Vault base and license of Vault OS EMS software. Localized manufacturing and deployment will strengthen Indian energy infrastructure, enhance grid stability and support greater generation of renewable energy, contributing to the availability of reliable, affordable and clean power across the country. I am also pleased to share that the Maharashtra Industrial Development Corporation Committee has decided to offer us the land of our Bess manufacturing facility in Maharashtra.
The Once the land is allotted, we expect the construction to begin in full swing and phase wise commissioning of the plant by March 2026 or by early financial year 2627. Coming to the water business the last financial year project awards across the infrastructure space were impacted due to delay in approval and funding. The Janjevan mission was extended up to 2028 in the Union budget, but the formal fund allocation to the state government is still awaited. This delay is affecting the water sector and impacting the timing of the new project awarded including for SPML infra. However, from Q1 financial year 26 onward we are seeing the improvement in the activity as central and state government has resumed the bidding process with several water projects being awarded.
We are optimistic about strengthening our order pipeline and enhancing profitability in near term. A notable win during the year was the Kunar Irrigation Project awarded by the Water Resources Development of Jharkhand valued at rupees 617.98 crore, this project aims to enhance irrigation facility across nearly 12,599 hectares of farmland in Hyderabad, Bokaro and Giridi district, contributing meaningfully to the agriculture development in the region. We are pleased to say that we have recently secured an order value of approximately 258 crore in consortium from the Chennai Metropolitan Water Supply and Sewerage Board. Our stake is 26% in that as on 31st March 2025 our order book site has reached approximately rupees INR 3000 crore and and we are in order under L1 stood at 25.
71 crore. We are expecting this order in Q1 and Q2 in franchise. We are pleased our bid for pleased for the bid bidding tender worth more than 9,000 crore across India focusing on fully funded high margin project company is contributing with the approach of focus on bottom line instead of top line growth, we will now move towards the Q4 financial year performance on a quarter to quarter basis. Revenue remained steady at rupees 201 crore. EBITDA was stable at rupees 22.5 crore maintained an 11% margin. PAD grew by 13.5% to rupees 12 crore for full year financial year 25.
Our total turnover reported at rupees 824 crore in financial year 25 versus rupees 13.31 crore in financial year 24. EBITDA grew by 26% to 98 crore from rupees 77.6 crore 20. Financial year 24 packed for the full year increased to the INR 49 crore resulting in year on year growth of 1.5 times. The EPS reported rupees 7.83 versus rupees 3.98 in financial year 24. The financial for the year ended 31st March 2024 reflects the various effects of restructuring and the gain of usb. Hence the figures are almost non comparable on year on year basis. As of 31st March 25th we have rapid we have repaid 219 crore 290 crore out of the total 700 crore owed to NARCL Inclusive of interest bringing the outstanding balance to 410 crore with arbitration award worth rupees 636 crore already in hand including interest up to 31st March 2025.
We are confident of repaying the remaining debt well ahead of the agreed timeline. We continue to maintain a strong balance sheet, a adequate liquidity due to promoter commitment of approximately 350 crore in last two years giving us the flexibility to pursue growth in both core segments. As discussed in our previous call, the temporary slowdown witnessed during the year and quarter was primarily due to external factors such as general election and transitional delays in the extension of jail driven mission which was approved in the budget. The said we are encouraged by the market improvement in the business environment.
Momentum is clearly picking up and we are confident that a significant portion of our L1 position will convert into confirmed order during Q1 and Q2 of financial year 26. This will meaningfully boost execution and drive strong revenue growth in the coming quarter. With this I would like to open the floor for questions. 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 star and 2. 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 comes from Raman KV with subsequent investment. Please go ahead.
Raman Venkata Kerti
Hello sir, can you hear me?
Manoj Digga
Yeah.
Raman Venkata Kerti
So can you just repeat the current order book number and also how much amount of debt we repaid in June this year.
Manoj Digga
The current order book we have is 3000 crore. That is 31st March 2025. And we have the order basically where we are L1 already L1 which was 2700 crore out of its 250 crore we have announced today. So we are still L1 of 2571 crore that we are targeting. Because now the Jaljeevan mission renewal and individual state wise documentation has started. So we are expecting the orders which are there in our hand. Where we are Q1 are within Q1 and Q2 in tranches and the new order are continuously coming. So whenever it will be L1 and converted we will keep on announcing.
Raman Venkata Kerti
Answer. With respect to the debt, how much did we remain during the year?
Manoj Digga
How much in the year? Pardon.
Raman Venkata Kerti
During this. During this year how much debt did we repay?
Manoj Digga
How much we will bid.
Raman Venkata Kerti
No, no. How much debt did you repay during this year?
Manoj Digga
This year we have out of our. When we took from the NARCL we did the resolution at 700 crore out of roughly around 290 crore we have already paid and rest of the debt is almost connected with the arbitration award. Whenever the arbitration award has to come will come. We will share one portion of the arbitration awards towards the payment of this date and from the cash flow it’s almost nothing. In the whole year I have to pay only 4 crore.
Raman Venkata Kerti
Okay, so how much of the arbitration award are we talking about? As of now if.
Manoj Digga
If you see the total arbitration award this 700 crore was the. It was the inclusive of interest. So I have my liability is restricted. Along with the interest of 700 crore we have the arbitration award which are at the various level. Various Code 1 of the Arbitration award is at the supreme court level Also the total arbitration award we have 636 crore where we have accumulated the interest up to 31st March 2025. This award will keep on increasing along with the interest and the proceeds of this award will be utilized for the payment of our NARCLT.
So against our liability of 410 crore till date we have the 436636 crore award in hand. And further roughly around 4600600 crore of arbitration claim.
Raman Venkata Kerti
So my final question is with respect to the guidance. So we have 3000 crores of order book. What is the time execution timeline for this order book? And going forward how much margin are we expecting?
Manoj Digga
If you see this order book has two type. One is the order book out of this 3,000 crore order roughly around 2,400 crore of order is the old order where we will execute in next two years two to three years and there the margin is slightly low. And we have the last order of Konar of 618 crore where the margin is around 15%. So there we have a high margin order. As I have told you going forward our focus is not on the top line. Our focus is on the bottom line. And as discussed earlier any order which we are targeting going forward will have the margin more than 10%. We will it is between 10 to 15%. If that is not there we will not take the order. So new order all will 10%.
Raman Venkata Kerti
So basically the orders wherein you are L1 like 2571 crores those all orders are around 10% margin orders right?
Manoj Digga
This more than 10%.
Raman Venkata Kerti
So sir, for FY26 what is your guidance on the full year basis? Like how much pat growth are you expecting or how much revenue growth Basically.
Manoj Digga
You got the figure that we have roughly around 2,500 crore order which is the slightly lower margin order where we will have a 4 to 5% margin on we will have 15%. We will get play around percent plus. And we are expecting the order to be executed in next three years. So you make the calculation. Okay.
Raman Venkata Kerti
Thank you sir.
operator
Thank you. The next question comes from Prathamesh Diwar with Tiger assets. Please go ahead.
Prathamesh Dhiwar
Yeah sir. So just wanted to know regarding our long term vision. So let’s say in coming three years what sort of business mix are we looking at? How much percentage of top line can we expect from this? And how much can we expect from other businesses like water.
Manoj Digga
If you see historically this basically power is our historically our own sector. And historically SPML has roughly around 25% into the power and 75% into the water. Water gradually last two years because the power volume has increased substantially. And power and government focus is also mainly into these two sectors. And government focus was less into the power. Our water volume has increased. So with the base opportunity and base commitment of the government we are expecting that our power EPC business will grow up in going forward. And maybe it can go to around 50. 50% going forward. When we have our base facility fully set up. Which will be by March 26th or by early 2627.
Prathamesh Dhiwar
Okay. And so. So right now we are not participating in any base orders, right?
Manoj Digga
No, no. We are participating. It’s a base is our EPC business. Base is what Transmission line where we have our expertise. The government has made it compulsory for every power this renewable power to have 10% facility of base. If you see in China they have 40% of base facility. In India the government has made compulsory of 10%. So any transmission line. At the moment we have to set up 10% of BESS facility. So we are the pioneer into the transmission construction of the transmission line. Base is a part of that. So whenever the transmission line will get we will get the order of base also.
Prathamesh Dhiwar
Got it sir. So any numbers will like to give like how much order can we expect from this segment in coming.
Manoj Digga
This we are. We are participating because the like the water base tenders are also coming. Very well. Lot of orders are coming. So once the we are participating into the various tender. Once the tender we will win. We will keep informing to the stock exchange. Okay. Got it sir.
Prathamesh Dhiwar
That’s it from my side.
operator
Thank you. A reminder to all participants to ask a question. You may press star and 1. The next question comes from Subhash B with Value investments. Please go in.
Unidentified Participant
Hi sir. Am I audible?
Manoj Digga
Ah. You are audible, sir.
Unidentified Participant
Okay. So out of the 6618 crore order that you won in Japan what is the SPML share in that? Because that is also JV I think.
Manoj Digga
Yes. We have taken the execution of 100% here.
Unidentified Participant
Because I saw in the announcement along with another. I mean I saw another main during. The announcement with
Manoj Digga
partner was. But now we are executing 100% ourselves.
Unidentified Participant
Okay, fine. So and also today you announced an order, right? About 250 crores. I guess right? Yeah. But in that I think 26% only belongs to SPM.
Manoj Digga
We are executing 20%.
Unidentified Participant
Okay. So when you said that you are. You are L1 on worth of 2700 crores of order. So out of this order like how much percent is SPML share?
Manoj Digga
If you see 2500, it is consisting of four order 100400 crore, one 1500 crore. We are 5151501 crore. We are own 100% 385 we are own 100% and 207 crore. We are 90 10. So we are 90%. One joint venture is 10%.
Unidentified Participant
Yeah. So out of 2700 how much crores will be yours?
Manoj Digga
It will be roughly around. Around 1800. 1800.
Unidentified Participant
Okay. Thank you so much. So my next question is about the BEFS. So in the presentation I see that 500 megawatt per hour will be executed in the next 12 months. And you are planning to execute around 30 to 40 gigawatts over 10 years. So when you say next 12 months, right? Like when is it starting from when can we count as next 12 months for the 500 megawatt? And also along with that what is the revenue per megawatt for these BSS projects? And also are you sharing any revenue with Vault because they are sharing their technology or the OS with you guys, right? So how is the deal planned? Like is there any revenue sharing model?
Manoj Digga
This we are the only company who has its own. We have purchased from Energy Vault. So we don’t have to share any revenue for royalty. We have to pay a certain amount for which they keep on doing the research and development. And that research and development we will also get the benefit of that. US is famous for their research and development. So that is there. It’s our own purchase. So nothing we have to share. On the. On the revenue side to the. To the Energy Vault for the technology. That is number one. Number two, we started the land.
As I. As I mentioned, we got the land in Maharashtra in Pune. The NMDC has earmarked land for us. We are setting up the plant and we are expecting that to be completed by March 26 or early financial year 2627. Once that will complete then battery pack manufacturing we will do our own. But without with that also in the BESS as a EPC player, we will continue to do that. Now the orders everywhere it is floating, we are participating into the order. So how much we will win, how much we will keep on communicating like we are participating into water.
We are going to participate into the BESS tender also. It’s basically, it’s a government focus into the energy. The government is targeting to have the energy volume of. We have told you energy volume. Government is targeting, targeting. Government is targeting for the energy value which they have given into the National Electricity plan that by 2030, 500 gigawatt 2236 storage demand is projected to reach 236 gigawatt by 203132 with the market size of USD 57 billion and that is targeting to roughly around USD 4,43 billion in 2047. So that’s the plan. And if that is the plan, then roughly around.
If you see the market size of 25 lakh crore plus business is there in India which has to be developed in the battery energy storage system and all the manufacturer or EPC player into the battery will get benefited, including us.
Unidentified Participant
Right? I agreed on the. I mean because they’re also making it mandatory even for the renewable energy projects to have at least 10% Dess. So when you said 500 megawatt hours, right, like whatever you mentioned in the presentation. So is this the EPC segment that you are targeting or the battery manufacturing that you mentioned, this 500 megawatt or does it include both of them? When you say 500 megawatt hours.
Manoj Digga
No, this is, this is the volume is the VESS volume. Now the VESS volume, the major portion is the battery pack. Roughly around 40% cost is the battery pack. Then it is a container and then there is a various element. As the EPC player, we are manufacturing the battery pack. That is the plant we are setting up. So this will be a backward component manufacturing or BSS unit. So whenever, even at this moment, if we have to supply the container, we can buy the battery pack from any Chinese Companies or any U.S. company or Vietnam companies.
We can buy that with our technology. We can mix and we can set up the EPC plant. But when we have our own battery pack manufacturing unit, our profit margin will enhance our visibility will enhance Our control on the quality will enhance.
Unidentified Participant
Got it. Okay. So this will be completed. I mean but you are saying that the ETC projects you’re already. You already have order pipeline, right? Can you. I mean do you have the number? Like what.
Manoj Digga
EPC project is there, battery there? As we have bidded for ntpc we have bidded for various other companies that.
Unidentified Participant
Yeah. Do you have the value of the order pipeline?
Manoj Digga
We. We at the moment we. The order which we have bidded. I will. I will update you.
Unidentified Participant
Okay, sure. Yeah. I can connect with Pranay later for that question. Okay. And what so under the EPC projects of dess what could be the margins? Because for water projects it is clear you have mentioned that you will target only about 10 to 15%. But for what could be the margins that could. That we could see in the future.
Manoj Digga
As we told it’s a bottom line company. It’s not a top line company. Whether it is a water or whether it is a Dess. 10% margin. Less than 10% margin. We are not focusing. And with our manufacturing sector or component manufacturing sector we are expecting margin of 15% plus.
Unidentified Participant
Okay. Okay. I think that’s all I have. If I have any other questions, I’ll call back. Thank you.
Manoj Digga
Thank you.
operator
Thank you. A reminder to all participants to ask a question. You may press star and 1. The next question comes from Arnav Shah with Lakes Capital. Please go ahead.
Unidentified Participant
Hello.
operator
Yes you are.
Unidentified Participant
Hi sir. Thank you for allowing me this opportunity. So first question would be under unexecuted order book. How much comes under the legacy book and fresh order wins. If you could just shed some light there. And how much time will it take to execute them?
Manoj Digga
Basically if you say technically the major two order we have on in the last three years but the free sort of you can take which is Konar of 650 crore which we have taken in last year. Rest you can consider as a legacy.
Unidentified Participant
Okay sir, one question would be in the next 23 years what would be the ratio of revenue from water business to vess? If I could.
Manoj Digga
As I informed earlier also historically we are 75% water and 25% power. Last few years because the water focus of government power focus of government has reduced. So we reach to around 90, 95% into the water and 5% into the power. Going forward with the Bess we may reach to 50, 50 into the water.
Unidentified Participant
Okay. Okay. Thank you so much sir. That’s all from my side.
operator
Thank you. The next question comes from Mehak from kml. Please go ahead.
Unidentified Participant
Hello.
Manoj Digga
Hi Mahat Yeah.
Unidentified Participant
I just wanted to know which are the states in which we have ongoing project and which are the states in which we have participated in fresh.
Manoj Digga
Can. Can you repeat. Can you repeat? Mahat again.
Unidentified Participant
Hello. I wanted to know in which of the states we have ongoing project.
Manoj Digga
We. We are targeting basically Rajasthan. It’s a water. Than anything which is related to water. We will keep. Keep on doing so. Water is Rajasthan is our focus area. Gujarat is our focus area. Mp lot of tenders are coming up. Bihar we are targeting into Jharkhand, we are targeting into Maharashtra. These are the state which are focused. Even Odisha which these are the state. We are focusing into the water business. Power business is wherever it’s a power renewable energy in ntpc we are targeting into that.
Unidentified Participant
Okay. And what is the current size of the. Of your O and M order book and how do we plan to grow this business?
Manoj Digga
As I told basically if you consider at the moment on 31st March 25th we have the 3000 crore order book which is there which we are executing roughly around 250 crore. Today we have received at 25 percentage hours we have the L1 of roughly around 2,500 crore which is there. And every month we are keep on bidding into the various standards which are floated for the water and power. So this year our target Is including our L1 at least 5000 crore we should be targeting.
Unidentified Participant
Thank you so much.
operator
Thank you. The next question comes from Subhash B with value investments. Please go ahead.
Unidentified Participant
Hi. Thanks again for giving me opportunity. So my rest of the questions were you said that you made purchase when you purchased the software from Vault and you’re not sharing any revenue. Right. So what was the purchase amount for this software?
Manoj Digga
We have 4 million US dollar.
Unidentified Participant
Got. Okay. And also you said 2400 crore is the old order book. And this will be executed in two to three years. And for the future I heard that you are targeting like 2000 crore per year order right in water in this. So are you planning, I mean how are you planning to accelerate the execution timeline? And also if you could give the revenue guidance for FY26 like in maybe percentage wise when compared to FY25. What could be the revenue growth that we could see in the future.
Manoj Digga
This timeline as we learn that is our learning from the past 43 years that focus to the limited projects and focus into the timely completion of the project. So that’s our target, that’s our goal into this year depending upon the orders like Jharkhand order is 30 months. So the few orders in which we are L1 is going to come or where the order we have to execute in 20 months. So it depends upon the order to order how much time it is required for the execution into the projects. So that’s the, that’s the. That’s the key factor.
So whenever whatever order we take, if it is a three years, we are executing in three years. If it is two years but average size you can take that any project require the three years to complete. And that’s. That’s the advantage into the APC business also because if I get the Konar order of one year then at least I am securing my three years turnover. Because this project is to be executed in three years and every year roughly around 200 crore of turnover we are going to execute barring 10% here and there. The same way if I am getting the 2500 crore new order into the current financial year in Q1 and Q2, that gives me the clarity of next three years of certain amount of turnover and profitability.
So advantage of the EPC business. Whenever you secure the order, you are not securing the profitability and turnover of that year. Rather you are securing the profitability and turnover during the course of the execution of the order. So that’s, that’s the advantage of the EPC company. Any order which we are going to take every size you can take three years which is required to be completed into the project turnover and the profitability also shares around that time.
Unidentified Participant
Okay, and what about the guidance for FY26, the revenue guidance.
Manoj Digga
Let’s. Let’s few more order to come and then we’ll give you the guidance next time.
Unidentified Participant
Okay. I mean I’m asking only because you’re order. You already have sufficient order book, right? Like almost 3000 crores.
Manoj Digga
We should have basically if you ask me. And again both the top line and bottom line should have the growth of around 50%. That should be the target that should happen. But that depends upon how much order and then we are going to execute the order. It would have been better last year also if the judgment mission could have been better. But this year we are targeting 50% top line and 50% bottom line at least.
Unidentified Participant
Okay, that’s great to hear. And also about the Bess project question that I asked before. I forgot to follow up on the question. So I also asked what is the per megawatt hour revenue that you would get from Bess Project in etc.
Manoj Digga
Basically the thumb rule which is actually the battery and every cost is coming down. But if you take the current thumb rule is 1 gigawatt equal to 2000 rupees. That is if it is 100 gigawatt then roughly around that is the market rate which is a tender which is participating one gigawatt into two thousand rupees.
Unidentified Participant
One gigawatt is two thousand crore. You mean.
Manoj Digga
Two thousand rupees.
Unidentified Participant
Just two thousand.
Manoj Digga
No, no, no, no. I’ll. I’ll come back to you on this.
Unidentified Participant
Yeah. Okay, fine. And also I asked you about the order pipeline, right? In the value terms. And also along with that if you could also give me information megawatt hour size like the order pipeline. Let’s say that for example you say that you have 2000 crore order pipeline. And along with that can you also mention the mega order pipeline as well? Let’s say that you have bid for 500 megawatt this time or 1 gigawatt. You could, if you could give that information also that could be helpful on the base side.
Manoj Digga
On the bss.
Unidentified Participant
Yeah. On the be. It’s correct.
Manoj Digga
Okay, so you. You can connect with Kapil. I’ll give all this information or you connect me in a day or two with me. I will provide you all the information.
Unidentified Participant
Okay. Pranay. Right? Pranay is the relationship.
Manoj Digga
And connect to Kapil. You can connect with me.
Unidentified Participant
Okay. Sure. Sure. Okay, fine. I’ll follow up with you on these questions. Thank you.
operator
Thank you. Ladies and gentlemen, to ask a question you may press star and 1. The next question comes from Maitricha with Sapphire Capital. Please go ahead.
Maitri Shah
Yeah. Hello. Am I audible?
Manoj Digga
Yes, you are audible.
Maitri Shah
Yeah. So my first question was you mentioned that we have a 2400 crore older orders and then 650 crore new orders. So what kind of blended margins are we expecting for FY26?
Manoj Digga
You can take basically the new order. As I told you, any new order more than 10%, that is the minimum target which we take without which we don’t participate into that. And old order you can take altogether around 5%.
Maitri Shah
And these are the PAT margins or the EBITDA margins.
Manoj Digga
In our case it is a pbt. Basically, in our case there is no finance cost and there is no interest cost because our I don’t have to pay any interest. 700 crore is inclusive of interest. So I don’t have to pay anything. So the interest EBITDA is our almost pat and we don’t have much depreciation. So EBITDA is almost equal to our pbt.
Maitri Shah
So the other income that we have, what does that include?
Manoj Digga
What is there like the total 700 crore what we have to pay that is inclusive of interest. So to make it India’s requirement which is the accounting standard requirement we have to keep it discounting and every year one portion comes to the profit and loss account as the interest cost which is coming into the finance cost. If you find that There is a 340 crore which is there in our books that is mainly because of the India’s adjustment and the same way if you see the other income we have the NARCL has given us the two option one is the 700 crore in seven years eight years and 967 crore in 10 years.
Now we have opted for seven years eight years and we have paid also 300 crores. This 26067 crore difference of both the option we are charging into we are taking into the books of accounts in every year. So you will find the interest cost and other income is nullifying to that extent and rest of the other income is the interest income interest.
Maitri Shah
Okay. The second thing I wanted to ask was. You’re setting up a manufacturing for the battery pack. So what sort of capex are we. Looking for that
Manoj Digga
Come come again for a voice clear Nathan battery pack.
Maitri Shah
We’re setting up a manufacturing capacity. So what is like the capacity we are targeting and the capex for it as well.
Manoj Digga
We are 2.5 gigawatt manufacturing unit of BSS we are setting up battery pack unit and the total capex is 175 crore. First we are taking into the two phases. First phase of 125 crore which is fully funding through the equity.
Maitri Shah
And this manufacturing will be operational in the first Q FY27. Right?
Manoj Digga
We are targeting in 31st March but it may slip to the first quarter next year.
Maitri Shah
How fast do we think will reach like the optimum capacity for this? Will reach like the full capacity of production.
Manoj Digga
The full capacity, Full capacity you can take it will take a year because bess the advantage what we have is the technology which we have purchased because we have a very very proven technology. So once that technology is there then all other plant or the other activity is the EPC only. So we are expecting next year we reach to the 75 to 80% capacity.
Maitri Shah
And what sort of revenue can that manufacturing plant generate at like full capacity?
Manoj Digga
It depends upon thousand to fifteen hundred crore. But that will come how the pricing will be, how much activity, what are the component we have to do. But it should be near to that.
Maitri Shah
We’ll be using this captively for our own EPS projects will be also Selling them to other companies.
Manoj Digga
It is for other company because we don’t have renewable energy. So whichever company has the renewable energy there for them, we have to manufacture. We have to do this as a EPA to PC business. And we supply to them by. By doing the Bess facility creation out of which we are utilizing our battery pack for construction of the Bess facility container.
Maitri Shah
Yeah. We’ll be using our battery packs for our EPC projects, right?
Manoj Digga
That’s correct.
Maitri Shah
Okay. Yeah. That’s it for my side. Thank. You.
operator
Thank you. The next question comes from Ankit Soni with Sheikhan. Please go ahead.
Unidentified Participant
Good evening. Thanks for giving me an opportunity. Just wanted to get an idea on what would be the order pipeline. I know you would have mentioned it. Just want me to repeat it. And second thing is how would you differentiate into the power projects and BSS and maybe a water project. So water pipeline in the three categories?
Manoj Digga
No, it’s both are EPC business. For us every project is a. Whether we take into the water and whether we take into the power, it’s the EPC one particular project. This can be the piping, this can be the distribution. This can be sewerage. This can be the Bess. This can be transmission line without Bess. So every project has one requirement. Every project has one scope. And we execute the work as per that scope. So like the water, our focus area is to the bulk water. So bulk water and irrigation. That is our focus area. Bulk water like setting up the piping etc.
But we do the distribution also. We do the seage also. But our focus at this moment is the bulk Bess also. We have the container which we will manufacture which will put into the any transmission line which is required by any renewable energy or for distribution and management of their power sector power unit. So both the unit whenever based on the order we will manufacture as a EPC business.
Unidentified Participant
Okay, but is there any chance we can quantify the order pipeline? How much is the order pipeline for Bess Particularly Bess and Bess EPC. Basically.
Manoj Digga
Approximately every month approximately 10,000 crore of water business which keep on coming into the different state. So in a year roughly around 1 lakh crore of business, more than 1 lakh crore business into the river water. Bulk water distribution, water sewerage, agriculture and then river linking etc. These orders keep on coming most of the because of our 43 years old company we are qualifying almost in all. So there is a who is water opportunity our target. We have taken 2,000 to 5,000 crore only into the water business with a Selected water project. So that is our target.
Bess also you will find a similar turnover of targeted order. Roughly around 1 lakh to 1 lakh 50,000 there also our target will be 1500 to 2000 crore. So the business and our recruitment requirement is. The size of business is very high. Commensurate to our requirement. Our target. So we as I told you focus on limited project. Execute that project very efficiently and focus into the bottom line.
Unidentified Participant
Got it. So that I would also.
Unidentified Participant
Yeah. Please carry on other size.
Manoj Digga
There is no dirt. There is no dearth of order in water and there is no dirt of order in power.
Unidentified Participant
Okay, got it. So that would also be most coinciding with your guidance of around 50% from the power and 50% from the water. Going forward.
Manoj Digga
That is. That is our target. Because once we have our BSS unit, manufacturing unit set up our focus and visibility and our control on our quality and cost will improve substantially. So we can be bit more aggressive and with more this confidence we can bid off that. So that’s our target. Once that happen then our business volume will keep on increasing this year. And maybe this year our water business will be slightly high compared to the power. More high compared to the power. Next year onward you will find that the power business will also keep on increasing along with the water business.
Unidentified Participant
Understood. Sir, just one last question. How is the competitive intensity in the Bess segment? Can you please highlight on that front.
Manoj Digga
ESS it is a very growing sector and very opportunate sector where all the lot of manufacturing units are coming. Lot of units are coming for the. For setting up the facility. All the ATC companies also focusing into the Bess facility. But it’s a game of our technology here. We can say that we till date we have the advantage compared to the other manufacturer because of our US technology. And we are the only company which has its own own technology. Rest all depends on the Chinese technology and various other technology. Which is not that proven and which is not because we have lot of additional feature.
This E vault technology. E vault technologies are giving various additional feature of AC and DC which gives the maintenance and the productivity is much higher compared to the Chinese technology. That’s the advantage we have. And that advantage will carry us to give some leverage, some leeway into the other manufacturers. But it’s a competitive business. Whereas wherever the government investment is there all the EPC companies focus are there.
Unidentified Participant
Right? Yeah. Thank you. Understood. That was my conscience. Thanks.
operator
Thank you. The next question comes from Prathamesh Diwar with Tiger Assets. Please go ahead.
Prathamesh Dhiwar
Yes sir. Thank you for once again. So just I have missed it earlier. How much capex are we doing in Bess and how are we going to fund it?
Manoj Digga
The total capex which we are targeting is 175 crore in two phases. First phase of 125 crore we are funding from our equity as I told you. 37550 crore we raise from the from the market in last 211 and a half years. Part of that money is going to be utilized for the base.
Prathamesh Dhiwar
Got it? And I think utilization we can clock around 1500-2000 crores right from base segment which one I think you have on peak utilization of base plant we can talk around 15.
Manoj Digga
It should be more than 1000 crore to 1000 to 2500 crore in the next few years. You will find the ramp up of the capacity.
Prathamesh Dhiwar
Got it sir. Thank you so much.
operator
Thank you. Reminder to all participants to ask a question. You may press star and one. I now hand the conference over to Mr. Manoj Digga for closing comments.
Manoj Digga
Thank you all for giving us your valuable time. Despite its challenging last year, we are encouraged by the momentum seen in Q1. With fresh standard now floating in and a strong order book pipeline, we remain optimistic about the opportunities ahead. The current order book along with the future L1 order and successful bid from our targeted tenders provide the company with secure future profitability and turnover. This significantly reduce the uncertainty around the future financial outlook. While we remain watchful of the evolving global and economic landscape landscape. We believe that our focus on critical sector like water and clean energy combined with a strong execution track record and prudent financial management will support substantial growth in financial year 26 and beyond.
Thank you.
operator
Thank you on behalf of SPML Infra Limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.