SRM CONTRACTORS LIMITED (NSE: SRM) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Unidentified Speaker
Puneet Pal Singh — Managing Director
Aashni Mahajan — Chief Financial Officer
Rutu Chavan — Head of Invvestor Relations
Sanjay Mehta — Founder
Analysts:
Unidentified Participant
Aman Baheti — Analyst
Darshil Pandya — Analyst
Maitri Shah — Analyst
Anukool Arora — Analyst
Vansh Solanki — Analyst
Madhur Rathi — Analyst
Akhilesh — Analyst
Presentation:
operator
Ladies and gentlemen, the conference call for SRM Contractors Ltd. Will begin shortly. Ladies and gentlemen, good day and welcome to SRM Contractors Limited Q3FY26 earnings conference call hosted by Philip Capital Private Client Group. As a reminder, all participants 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 Mr. Rutu Chawan. Thank you. Thank you. And over to you Mr. Chauhan.
Rutu Chavan — Head of Invvestor Relations
Good afternoon everyone. On behalf of Philip Capital Private Client Group I welcome all of you to the Q39 MFY 26 earning conference call of SRM Contactors Limited today. From management we have Mr. Sanjay Mehta, Chairman and Mr. Puneet Pal Singh Managing Director. The management will be sharing key operating and financial highlights for the quarter and nine months ended 31 December 2025 followed by a question and answer session. Please note this call may contain some of the forward looking statements which are completely based upon companies beliefs, opinions and expectations. As of today these statements are not a guarantee of company’s future performance and involve unforeseen risks and uncertainties.
I now hand over the conference to Mr. Sanjay Mehta. Over to you sir.
Sanjay Mehta — Founder
Hi everyone. Good to see you all again. Am I audible? Okay, so
operator
yes sir. You are
Sanjay Mehta — Founder
good after everyone. Good afternoon to everyone joining us today for SRM Contractors earning call for quarter three of financial year 26. We appreciate your interest and support. I trust you had the chance to. Review our investors presentation and financial results. Which are available on stock exchanges. As you know at SRM Contractors our. Core business is anchored in the precision execution and critical role infrastructure with specialized expertise across highway bridges, tunnels, slope stabilization. And complex roadway alignments. To date we have successfully delivered over 50 infrastructure projects supported by a fully integrated in house execution model that spans design, engineering and project delivery. This self reliant operating structure enables tight control over quality, cost and timelines particularly in high entry barrier segments such as. High altitude and land stride prone regions.
Our capabilities are best demonstrated by our execution in some of India’s most demanding environments. During the period we achieved a key engineering milestone with the completion of India’s longest high altitude precast cut and covered tunnel in Leh which is called Shok Tunnel which was in all of the national media where which was inaugurated by. Our Honorable Defence Minister Mr. Rajnath Singh. It was a As a flagship project of border roads, this project has been constructed over altitude of over 12,000ft. We have also delivered India’s tallest reinforced cell wall at Triassi, Juman Kashmir. These landmark achievements have been recognized with the ET Infra Leadership Award 2025 for excellence in Border, Remote and Hilly region Infrastructure for the late tunnel marking our second consecutive ET Infra award this year which last time we bagged the same award for the landmined projects underscore our ability to innovate and execute complex engineering solutions that are critical for national security and regional connectivity. The strength of our execution capabilities and.
Leadership was also recognized during the quarter with Our Managing Director Mr. Puneet Pal. Singh being conferred the ET Young Industry Leader 2025 award by none other than Times of India Group for Excellence in Roads and Highways in Hilly Train. This marks the third consecutive time the company has received such recognition and reflects our consistent delivery of complex infrastructure projects in geologically fragile and logistically challenging regions. This quarter our focus remained on disciplined execution and strengthening our presence in core infrastructure segment. SRM continues to operate as specialized engineering and construction company with deep activities in road bridges, tunnels and geotechnical solutions, particularly in difficult and high altitude terrains. While our legacy is rooted in Union.
Territories of Jammu and Kashmir and Ladakh. Where our local knowledge execution track record remains key differentiator, we are actively expanding our footprint across India during the year we entered new geographies with meaningfully projected wins in Maharashtra and we have got a project in Palgar along with new. Projects in Gujarat and Uttarakhand. This Pan India expansion is helping us diversify our order book, reduce geographical concentration and participate more broadly in India’s infrastructure growth story. A pivotal step in our strategic roadmap has been the acquisition of 51 in McAfee Infrastructure Private Limited. This partnership with a subsidiary of Italy based Efficient McAfee strengthen our leadership in slope stabilization, rockfall protection and advance geotechnical solutions beyond India. The partnership also provides a strategic platform to evaluate opportunities in international markets, particularly in the GCC and Africa where demand for specialized infrastructure in challenging trains remains strong. As we move forward, our priorities remain clear, consistent order book conversion, strengthening balance sheet metrics, disciplined capital allocation and long term value creation through steady performance in our core and adjacent markets.
Continuing with industry updates India infrastructure sector remains in structurally strong growth phase with roads and highway continuing from the backbone of economic connectivity and regional development. This environment is particularly favorable for companies with proven execution capabilities in complex and high altitude trains where technical expertise and track record creates meaningful entry barrier. The Union budget of 2627 reinforces this momentum through a strong focus on building resilient future ready infrastructure under the National Infrastructure Growth Plan. Key initiatives such as development of city economic regions are expected to enhance urban productivity while strengthening regional linkages. The proposed increase in Capital expenditure to 12.2 lakh crore of rent sheet of 27 Highlights the government sustained commitment to infrastructure modernization and long term capacity creation.
Further, the introduction of Infrastructure Risk Guarantee Fund is a positive structure reform improving funding across the partial credit granted for lenders within roads. The Ministry of Road Transport highway had received an 8% higher allocation of 3.09 lakh crore supporting accelerated expansion and upgradation of national road network. Against this backdrop, SRAM contractors sit well positioned. A significant portion of our order book is concentrated in strategically important regions such. As Jammu and Kashmir, Leh, Andachal Pradesh. Himachalbadeshotrakhand geographies where difficult terrain and climatic conditions make execution capability a critical differentiator. Our long operating history and proven track record in high altitude roads, bridges and tunnels and strop provide us with strong confidence in our ability to capitalize on these opportunities. From a capability standpoint, our partnership McAfeery enhances our execution strength in specialized geotechnical and soap protection solutions. Rather than being a general construction capability, this allows us to address complex train related challenges more efficiently, improve asset durability and optimize life cycle cost capabilities that are increasingly important in both domestic and international infrastructure projects.
Overall, the sector outlook remains favorable supported by sustained public spending, policy stability, long duration infrastructure programs. We believe our niche expertise, regional depth and technical strength position us well for the next phase of growth. In terms of visibility, the company currently has a robust bid pipeline for extremely more than 4000 crore which includes opportunities under hybrid annuity model as part of our diversification strategy. In addition, we are actively evaluating international bidding opportunities, particularly markets where our specialized execution capabilities and technical partnerships provide a clear competitive advantage. Let me now begin with the glimpse of our operational and financial Updates.
As of December 2025, the company order book stood at more than 1400 crore reflecting a well diversified mix across our core infrastructure segments. This includes approximately 940 crore from roads. And bridges, 139 crore from tunnel projects and around 344 crore from slope subdivision works. During the first nine months of financial year 26 we achieved the order inflows of 329 crore while our bid pipeline for financial 26 remains robust more than 4,000 crore. This pipeline provides strong visibility and underpins our Confidence in sustaining execution momentum over the coming quarters. In first nine months of 26, we have incurred a capex of rupees 78 crore and plan to further incur capex. Of 1920 crore in financial year 26. Now coming to the financial performance, we have had an exceptionally best quarter in terms of performance execution. I am particularly delighted to inform you that we have outperformed our earlier guidance and have delivered strong set of numbers as compared to the most players in infra sector. During quarter three of financial 26, the company achieved a significant operational milestone delivering record breaking performance across all key financial metrics while simultaneously exceeding our previously communicated guidance. Revenue scaled to 231crore representing robust 50% growth year over year expansion. EBITDA surged to rupees 45 crore. Demand 72% year over year growth with margin expansion of 19% from 17.
In the same quarter last year PAT reached rupees 24 crore achieving 51% year over year growth. While EPS mirrored this performance with 51% year over year acceleration to Rupees 10.5 per share. Thank you. Now we are open for the questions.
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 N1 on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star in two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aman Bahiti from Incred Capital. Please go ahead.
Aman Baheti
Hi sir. Thank you for the opportunity. Am I audible? Hello.
Sanjay Mehta
Yeah, please go ahead.
Aman Baheti
Yes sir. Yes sir. Yeah. The first question was in line with our order book. So sir, our order book was quite flat. We were expecting some big orders in close this quarter. So what’s the update there? Sir?
Sanjay Mehta
Yeah, we just wait for two more weeks. We are expecting some good orders in coming two weeks. Even today we have it under opening. At 3pm for a AMP project of more than 550cr. Let’s hope for the best.
Aman Baheti
So sir, what would be your order book? The guidance for the next few quarters.
Sanjay Mehta
Was before end of this financial year our order book will be more than 2000cr. And of course we have a pipeline of more than 4,000 crore. And in the coming months also we are going to vote for that. So order book will in in the next quarter. By the end of June 26should be around 3,000 crore.
Aman Baheti
Okay, answer this. This includes our international expansion in Abu. Dhabi as You said in the ppt. Africa and Abu Dhabi.
Sanjay Mehta
No, no. We have not included any project of. International expansion so far. We are still working on different territories. We are working on Saudi. We are working in Oman. And we are working in Abu Dhabi and various projects. We are talking to many contractors as of today. Today. But this projections have not included any international earnings.
Aman Baheti
Okay. Sir, have we. Have we opened any offices in any of these areas in Abu Dhabi or something?
Sanjay Mehta
Yeah. Yeah. We have already opened in Abu Dhabi our office. In fact a branch of a contractor has been set to in Abu Dhabi. And we have been. We are there. Our presence is there. Now. We have recruited business development people also.
Aman Baheti
Okay, sir. And one last question before I join the queue, sir. What would be our EBITDA and PAD guidance as we expand in new geographies? What would be our guidance for next year? FY27.
Sanjay Mehta
We will be continuing with the same. Trend which we are doing it of that. That is always I say in all my meetings. I do my cherry picking of the project. So that’s why I am not in a hurry to you know expand my order books just. Just for the numbers only. So we will continue with the same. Trend of pattern every time. You will not see any change for next year also. It can increase. It will not decrease.
Aman Baheti
So we. We can expect around 10 to 11%. Of PAT margins next year also.
Sanjay Mehta
Yeah, of course. Definitely.
Aman Baheti
Okay. Yeah.
Sanjay Mehta
Thank you.
Aman Baheti
Okay. Thank you.
operator
Thank you very much. The next question comes from the line of Darshil Pandya from Fintrest Capital. Please go ahead.
Darshil Pandya
Hello. Hi. How are you?
operator
Mr. Darshan, we cannot hear you clearly. There is a bit of background.
Darshil Pandya
I’m actually traveling out. So. Sir, my question is with regards to. You know, recently there has been some press releases by government that. You know, they have sanctioned some good orders for. You know, for Nashik also for Maharashtra. And there was one from JNK also which where the chief minister had, you know, told us. So just to understand are we considering in this. You know, are we there in this projects that are being bidded. We have quoted for packer 6 in Nasik Ring Road. So there are two bidders.
Puneet Pal Singh
Package 3 also. Package 3 also.
Sanjay Mehta
Okay, you can clarify package 3. I’m not sure.
Puneet Pal Singh
Hello. We have bidded for two packages. Package 3 and package 6.
Sanjay Mehta
Okay. Package 3 and package 6. Right? Yeah. Yeah. We have bidded for 2 packages and in package 6 and both of Priya there are two bidders. More than two. Two bidders. Yeah. Puneet is looking after Maharashtra. Yeah.
Darshil Pandya
Okay. Okay. So sir, any Any guidance on where when this numbers will be, you know, when this orders will be put in place? As in when we, when do we. Get a conclusion on this?
Sanjay Mehta
We already, we have submitted their queries. And I think they should be opening the financial bits in another week to ten days time.
Sanjay Mehta
You are not audible. Art. Rosalun, can you.
operator
Darshan, we cannot hear you clearly.
Darshil Pandya
Can you hear me now properly?
operator
Yes. Better.
Darshil Pandya
Yeah. So I was asking sir, that in the Mecca Ferry acquisition, we haven’t, you know, acquired much in this specific quarter. Are we going to see the number emerging up in Q4 or. I want to understand how this we are sitting.
Sanjay Mehta
Yeah, yeah, definitely. You will see the. Because we have consolidated only few months. Of quarter three only. So we have not consolidated first and. Second quarter in this balance sheet. And of course you will see the. Final numbers in the final year end balance sheet.
Darshil Pandya
Okay sir, I’ll fall back in the queue and all the best to the team srm and you know, we hope that you know, in the last years to come.
Sanjay Mehta
Thank you.
operator
Thank you. The next question comes from the line of Maitricha from Sapphire Capital. Please go ahead.
Maitri Shah
Hello. Am I audible?
Sanjay Mehta
Yeah, you are. Please go ahead.
Maitri Shah
Yeah. Good morning. Congratulations on the result. Just a few questions. Firstly, you’ve given a target for 800 to 900 crores on the standalone level for the business. So any targets for the console level? What sort of guidance do you have for FY26 and also FY27?
Sanjay Mehta
For 26 we have given a standalone of 800 to 900 and a consolidated of maybe thousand plus. And for 27 we will, we are growing, you can see we are growing. At a pace of something around 70 to 90%. So by any conservative means for 27. We will be crossing 1500 crore.
Maitri Shah
Okay, that is great. And this thousand crores of execution will require close to 400 crores of execution in just quarter four. How do you see the quarter four shaping up so far that we. Almost half of the way through this quarter.
Sanjay Mehta
This quarter of MAPL will be great because we will be adding another. We will be closing MAPL near to. Something around 300 crore.
Maitri Shah
Okay, that is great. And that 300 crores is a full year. Correct.
Sanjay Mehta
So SRM will be closing at something around 8 to 900 crores.
Maitri Shah
8, 900. Okay, that is great. And secondly, on the margins of this quarter we had quite a big jump in the margins. Any sort of drivers that led to these margins for this quarter and do you see them sustaining over the next year, year and a half with the projects that we’ve chosen
Sanjay Mehta
margins are same. EBITDA has increased a little bit because of maybe capex. We have infused a lot of money in Capex this year and same is going to happen next year also for capex. So we are hoping to infuse another. 100 crore in next financial years. This year we have already till now. We have infused almost 70, 75 crore in CapEx.
Maitri Shah
Okay. And so we expect these 19% margins to. To stay sustainable for the next year as well.
Sanjay Mehta
Of course that’s what I told Aman. Also we, we try to improve it. Rather there’s no question of coming down.
Maitri Shah
Correct. And the next day targets you have for the international business since you set up a office in Abu Dhabi and we are in discussions with a lot of contractors there. So what sort of projects you want to aim for, what your margins you are hoping to get secured on those side. Any, any sort of guidance on that side.
Sanjay Mehta
The margins here will be better than. What we are doing in India. That’s why we have decided to move one arm here. So but we are not going to. Give any figures as to as of today because we are as I told we are negotiating with number of international players. So let something mature then only we. Will be in a position to give you figures. So that figures I think will come in next year. First quarter of next year we will be able to share some figures, any.
Maitri Shah
Sort of like color on what projects we are hoping to get there. These are going to be more on the difficulty range.
Sanjay Mehta
Yeah, yeah, yeah yeah. In international market we are just looking. At slope stabilization works in the countries like Oman, Saudi Arabia and Kujera areas of uae. So we as you know we are. Country’S top leader in slope transition and Rahaf after tying up with McAfee and querying 51% stake in the official McAfee’s lead subsidiary MIPL we hold the number one slot in the country and we. Same McAfee experience and their office and. Our specialization we want to carry on. In the GCC and of course we. People are showing interest and very soon we will break through.
Maitri Shah
That is great. Just last question on the fundraiser. Are we raising any funds for the growth that we are hoping to get for next year?
Sanjay Mehta
We will be doing that. We will be doing that Post match.
Maitri Shah
Post match. Okay, okay, okay. Any sort of number you can give on that. How, what sort of. How much are we raising the fund?
Sanjay Mehta
It will be. It will be something under 230. Sierra. I am sorry I couldn’t you 100230 Sierra. It can be anything in this bracket.
Maitri Shah
Okay. Yeah, that’s just my side. Thank you. All the best.
Sanjay Mehta
Thank you.
operator
Thank you. The next question comes from the line of Rehan from Cohen. Will please go ahead.
Unidentified Participant
Hi, am I audible?
Sanjay Mehta
Yeah, yeah. Please go ahead.
Unidentified Participant
Congratulations on a good set of numbers to the entire team. I just have a couple of bookkeeping questions for McAfee. If you can quantify what was the amount consolidated in Q3 and for nine months for this financial year and second for the same lines is in the financial results. The Q2 numbers are not retrospectively stated. So can you help us with that understanding as well?
Sanjay Mehta
Can you give them the figures please?
Aashni Mahajan
Because I don’t have in my front of me.
Unidentified Speaker
Sure. Thank you. Yes, sir, what do you want to know?
Unidentified Participant
Sorry?
Unidentified Speaker
You wanted to find out the MIPL numbers that we consolidated, right?
Unidentified Participant
Yes. For the quarter three and for nine months. And also in Q2. The numbers are not comparison like this. The numbers have not been retrospectively changed. So can you help me with that?
Sanjay Mehta
We have not consolidated for quarter one and quarter two. We have consolidated numbers only from a. Whole quarter of a quarter three or some part of quarter three. Ashley, please.
Unidentified Speaker
Consolidated from 21st of October onwards because that was the day when final acquisition happened as per the company law.
Unidentified Participant
Sorry, it’s not clear. 21st.
Unidentified Speaker
21St of October, sir.
Unidentified Participant
Okay. And what would be the amount?
Unidentified Speaker
Also we had 31cr in revenue. That is the Q3 portion of revenue that we included.
Sanjay Mehta
Okay. So we have not. We have not consolidated quarter one and quarter two and part of September and half of the October. But these all figures will be consolidated in our annual report.
Unidentified Participant
Understood. Because the quadrant quarter then doesn’t become an apple to apple comparison.
Sanjay Mehta
Yeah, yeah, yeah. Because. Because there was some issues with the company.
Unidentified Participant
Understood.
Sanjay Mehta
Although we have acquired the macro ferry. From first April onwards.
Unidentified Participant
Understood. So 31st crore. 31 crores is the revenue and. Sorry, we’re saying, ma’. Am.
Unidentified Speaker
Yes. 31 cr is the revenue. And in MIPL as well, we operate on a similar margin of 10% back and 16 to 17% of EBITDA.
Unidentified Participant
Okay. And you had mentioned. I think Kevin sir mentioned that we did about there’s an order bid pipeline about 4300 odd crores. What is our sample set in that. That we can actually. That we’ve actually bid for or that very critically evaluating.
Aashni Mahajan
You can please repeat your question.
Unidentified Participant
Sure. So I think out of the order bit, the order bid pipeline as for the presentation is about 4300 crores. How much? About that is what we bid for or is the entire amount we’ve bid for.
Sanjay Mehta
Like we have bidding for 4,000 crore already we have bidded for more. Than 4,000 crore projects. These are bidded projects.
Unidentified Participant
Okay.
Sanjay Mehta
These are.
Unidentified Participant
Okay.
Sanjay Mehta
Where the results have not been declared.
Unidentified Participant
Okay, understood. So I think that was just a communication.
Sanjay Mehta
No, no, no. These are all video projects.
Unidentified Participant
Okay. Thank you so much. Thank you.
operator
Thank you. The next question comes from the line of Anukul Arora from Invit. Please go ahead.
Anukool Arora
Thanks for the opportunity. So wanted to know our progress on Hanan projects. How many orders have we received or in the bid pipeline.
Sanjay Mehta
Which projects you are talking about? Nukuls. Sorry and projects. Okay. We have not been open to our account because of. But Today there is one opening. Let’s keep our fingers crossed. That is at 3pm let’s hope for the best.
Anukool Arora
Understood sir. And so and on this part only like when we get any HAM projects other trade receivables going to increase going forward. Whenever we are going for a HAM project.
Sanjay Mehta
Of course ham will be will be. More revenue generating than EPC projects. Because the competition in ham is comparatively less when you compare it to the EPC project zone. Okay. This is your question or I. I. Replied some other way.
Anukool Arora
No, I think this was the question. Maybe on the trade receivable side whether they will be stressed or not going. Forward when we are going for a hand project.
Sanjay Mehta
I don’t think so there will be any stress.
Anukool Arora
Okay. Okay.
Sanjay Mehta
We have not. We have this. This is just. We have very coated to a very. Few amperages on 553cr only. And we will be closing to this. Year at 1100 cross.
Anukool Arora
Okay. On console level we will be closing at 1100 cr. So I think till now we have done around 580 to 600 till nine months. So are we on track to go for Q4 around 400 to 500 odd cr?
Sanjay Mehta
Yes, of course. Definitely. Even I would. I would like to touch this magical figure of 1000 and that of more than 100cr. So we are putting our best efforts to do it and we are confident of achieving it. Okay.
Anukool Arora
Got it sir. Great. And all the best to you sir. Thank you so much.
Sanjay Mehta
Thank you.
operator
Thank you. The next question comes from the line of one Solanki from RSPN Ventures. Please go ahead.
Vansh Solanki
Hi, good afternoon management. So my question is on MIPL that you just told that the quarter 3 revenue is only 31 crore. While the management is targeting around 300 crores full year revenue. So I just want to know that what is the standalone MIBL revenue for nine months? And where are we on like you know, track or what?
Sanjay Mehta
Actually, tell them the standalone revenue of MIPL for 9 months please.
Unidentified Speaker
Yes sir. A standalone revenue of MIPL is around 90 crores right now. And we’re expecting great results in Q4. So consolidation would stay in place. 800 to 900 crores is for SRM and the balance would be out of MIPL. So we’re in line.
Vansh Solanki
So indirectly you are expecting around 200 crores from MIPL in Q4, right?
Sanjay Mehta
Yeah, anything between 150 to 200. Puneet, what are we expecting from last quarter of MMPL?
Puneet Pal Singh
Hello.
Sanjay Mehta
Sorry Puneet, how much we expecting from last quarter? Yeah, How much we are expecting from. Last last quarter of Mipl? Mapl last quarter make expectation.
Puneet Pal Singh
Around 150C.
Sanjay Mehta
150.
Puneet Pal Singh
150.
Sanjay Mehta
Yeah, 150. Sierra. So we will be between 250 to that 2. Around 250 will be achieving here.
Puneet Pal Singh
And around 275. Between 275 to 350.
Sanjay Mehta
275 to 3. 350s. Yeah, so that is what I said. 250 to 300 we are expecting. Thus this will be.
Vansh Solanki
Okay. And what is the current working capital cycle for nipl? Because I have, you know read someone that it is around 5, 6 months working capital cycle. Is this right?
Unidentified Speaker
No, sir.
Sanjay Mehta
Yeah, actually please go ahead.
Unidentified Speaker
No sir, that’s not true. Earlier with the previous management maybe it was true. But in our case it is not. The working cycle is similar to srm. It’s just one to two months only. When we bill it, we get the money intent.
Vansh Solanki
Okay. And it is
Sanjay Mehta
not more than 60 days. That is the working cycle. We have been doing both the five.
Puneet Pal Singh
To five to six months working capital was due to the reason that MITL was working maximum for the private companies. And for the private companies 90 days is the payment schedule. And they lead up to four months or five months. But now we have shifted from private players to 80 to 90% government orders. So it’s the same as we do in srm.
Vansh Solanki
Okay.
Sanjay Mehta
What you have read was the earlier. Management they were more into with the private players. Now the new management has taken over from 1st April onwards and we have shifted to public and government institutions. And this working cycle remains same as in case of SRM which is 60 days.
Vansh Solanki
Okay. Okay, got it. And just two more questions on P L. What is our gross debt and netbet level console as of Q3? And also is there any new labor code impact for Q3. Because the employee expense is looking quite significantly high on sequential basis.
Unidentified Speaker
Our net debt level on the consolidated level is 0.14. And the increase in is primarily because of mobilization of our new projects in Maharashtra. It’s affected by labor code but not very much. The increase in cost is primarily due to the mobilization of the project in Maharashtra.
Vansh Solanki
Okay, thank you management and all the best for a future. That’s from my side.
Sanjay Mehta
Thank you.
operator
Thank you very much. A reminder to all the participants that you may press star and one to ask a question. A reminder to all the participants. Please restrict yourselves to two questions. The next question comes from the line of Madhurati from counter cyclical investment. Please go ahead.
Madhur Rathi
So. Thank you for the opportunity. Sir, what would be the success rate for this 44000 crore plus project that we have already building?
Sanjay Mehta
Very dicey question, man. But we are expecting almost 1500 crore. To minimum to be on the prudent size. Minimum 1500 crore.
Madhur Rathi
Right. And for this high this annuity model kind of a project. So what kind of ROC do we expect? And what is the debt to equity ratio that will be using to for these kind of projects?
Sanjay Mehta
We can get back to you. But I don’t have papers with me right now. But we. Of course we will get back to you. Please note we will share with him.
Madhur Rathi
Sir, also is my understanding correct that our EBITDA margins have increased because we have done lot of capex. And because of that rental and other expenses as a percentage of our revenue has reduced.
Sanjay Mehta
Yeah, that’s. I told you that we have a. This year we have a already done a capex of 75 year which may increase in coming two months also. Yeah. We can touch hundreds here this year only.
Madhur Rathi
Got it. And sir, I wanted to understand regarding. The bank guarantees for these highway and tunnel. The slope utilization. The project that you do. Is it higher versus any other road maintenance or road construction contract? Because of the. We have seen that some of these projects have failed after completion. There has been some issues. So has this increased? Or if you could just help us understand what is that.
Sanjay Mehta
There is a. Maintenance period of four to 10 years was after completion of the projects for many slope work. There are three for a maintenance of 10 years. Roadworks is the standard of four years. So we have to hold our performance. Bank rent is still that date. But we have not faced any issue till date. And there is. I don’t think we will be facing any such issues.
Madhur Rathi
Right. And sir, what is the portion is of the project that we need to provide either guarantees or some kind of money that is stuck with the government because of these projects.
Sanjay Mehta
Sorry, bank guarantees or what?
Madhur Rathi
Sir, bank guarantor performance guarantees for these projects for normal road road construction is I think 5 or 10%. Is it higher for these slope stabilization or tunnel kind of projects?
Sanjay Mehta
Yeah, yeah. They are more maintenance period. They ask for more for the slope works. And somewhere like border road they only ask for one year. National highway ask for four years. I constructed a tunnel and slope works, they are for one year. So it depends on agency to agency. Iron Konkan again one year. So it varies from agency to agency.
Madhur Rathi
Right. And so just a final question from mine. So this MIPL that we have acquired had a 200 odd crore order book I think as per their credit report. So this 200 crore would be a higher working capital. And the new order that we expect. Going forward, that would be low working capital. Right.
Sanjay Mehta
We have existing limit for MAPL also. Separately we have bank guarantee for them also.
Madhur Rathi
No sir, I was asking about the 232 crore. 232 crore rupee order book. That is that was available as of July 25. So okay, this would be a very high working capital. Right. And whatever new order that we expect that would be lower working capital.
Sanjay Mehta
Higher working capital. I still want to understand your question before replying.
Madhur Rathi
Right?
operator
Mr. Madhura, in the queue for follow up questions. The next question comes from the line of Ruth from Philip Capital. Please go ahead. Mr. Ruth Shawan, you can proceed with your question.
Rutu Chavan
Hello sir, can you hear me?
Sanjay Mehta
Yes sir.
Rutu Chavan
I wanted to know how what is the order book that we have in mipl? Do we bid it for SRM and MIPL together or is it an individual order? And what is the current outstanding order book that we have in Mipl?
Sanjay Mehta
Maple. The 1400 plus is only for SRM. How much we have? 232. Hello.
Puneet Pal Singh
Right now we have order book of 282 crores in MIP.
Sanjay Mehta
282 crores in MB. Right. As of today.
Rutu Chavan
And what is the pipeline in MIPL?
Puneet Pal Singh
That is around 400.
Sanjay Mehta
400. Okay. And if I’m not wrong. But remember one thing. The conversion rate in slope is much higher than converting highways. Right? So. Is more will be more in slope as compared to previous.
Rutu Chavan
Understood. And what are the regions this MIPL is focused in? Is it more northeast focused or is it Pan India?
Puneet Pal Singh
It is basically focused in Pan India. But we are. We are basically focused in northeast, Uttarakhand, Himachal as the landslide area is these only. But we Are expanding in Rajasthan also. Because we have bidded two projects in Rajasthan. And we are hopeful that before 20th of this month only we will back that project.
Sanjay Mehta
And. And we are into mining also. We are already into B. Odisha doing my augmentation. And we have in Gujarat also for minor condition.
Rutu Chavan
Understood. In sir. Srm, what is the bank guarantee that we have currently? Last time I remember it was 250 odd crores of bank guarantee that we had credit line. What is it? Right.
Sanjay Mehta
I think. I think with the last sanction which. We have received from SBI two days. Back now a total limit. Arun, please go ahead with the figures. I don’t want to be approximate.
Unidentified Speaker
It is if we add SBA the latest function it will be around 500. Crores of bank guarantee limits.
Rutu Chavan
And how much of it is utilized and unutilized.
Unidentified Speaker
182 is utilized only.
Rutu Chavan
Okay. Understood. So we have a good scope of guarantee that we can utilize for the further. Further growth. That’s. That’s how.
Unidentified Speaker
Yeah. That’s grow. If we don’t.
Rutu Chavan
Yeah. One last question. If I’m not wrong. There was till 9. 9 months in MIPL we’ve done 90 crores worth of billing. Right. Total top line for MIPL in 9M.
Sanjay Mehta
Yes, please.
Rutu Chavan
90 crore. Yeah. 90. Yeah.
Sanjay Mehta
Yes. Yes.
Rutu Chavan
Okay. Okay. Great. That’s it. Thank you so much. And congratulations, sir.
Sanjay Mehta
Thank you very much.
operator
Thank you. The next question comes from the line of Chiraksha from ICSA securities. Please go ahead.
Unidentified Participant
Hi. Good morning sir. Just a clarification I wanted because if I remember the last call you had mentioned that FY27 you will be dropping revenue in northwest of 2000.
Sanjay Mehta
We were talking about. Sorry.
Unidentified Participant
So you had guided for a revenue guidance of 2000 crores plus in FY27. And now in this call you have mentioned that that number would be somewhere around 1500 crore plus. So why this change of guidance? As in are there any orders or. The order finally finalization has become slow on the ground.
Sanjay Mehta
No, no, no. We. We are trying to be more prudent only. But this is what like we are closing our 26. So we do. I told you it will be more. Than a hundred thousand. It will be something near 1100 also. And in 271500 is a prudent figure. So we will come out with the. Figure once we have our annual results.
Unidentified Participant
Okay. The same goes for the backlog thing as well. Because we were expecting a backlog of 2000 crores by mid February, early March. That figure or that change to June now. So that is What I’m trying to write.
Sanjay Mehta
But we have enough projects to feed. Us for next two years. Now We. I don’t want to burn my fingers. By just increase my order book. I go for something with. I told. I. I am in. We are in a. We have a policy of cherry picking the projects and getting those projects where we can good get good margins. Still we. We are not in a hurry to increase our order books with their projects. Which have a less margin. So this. You. You don’t worry. You see in march also even 2000. Is a huge order book for next year that we are talking about. Now. The project cycle is two years maximum. If I have even 2,000, I have. So I have enough work for next year also. But I am talking about June where. It will be 3,000. So we. We are well placed in that order book. Book. And I. I am not in a. Hurry to do that also. I will. I will not do that also.
Unidentified Participant
The big pipeline of 4000 crores that we have. The order finalization of this project. Would that happen before June so that we can get those orders?
Sanjay Mehta
No, no. This 4,000 crore finalization will happen before March. Okay. I am. I am. I am talking about. Because I am not stopping here. I am bidding daily. So by March this pipeline will also remain close to this figure only. Because some projects will come for some projects will go. So we’ll be maintaining a pipeline of 3 to 5000 crores always.
Unidentified Participant
Okay, just one last clarification. You mentioned that there are only two bidders in the ring road project. So.
Sanjay Mehta
Sorry.
Unidentified Participant
There are two bidders and there are two packages on the ring road. Three and six.
Sanjay Mehta
Okay.
Unidentified Participant
So what would size of packages? Yeah, yeah, yeah. What packages size? The two packages that you have mentioned. Package size.
Puneet Pal Singh
Size. Size. 500 for each. 500 for each.
Sanjay Mehta
More than five.
Unidentified Participant
Together they will be thousand. Okay. And what. Who would be the second bigger than. Sorry. Yeah. So can you mention the name of the second bidder? Because you mentioned there are only two qualified bidders in this project. One is SRM and the other if you can name. If you have the permission.
Puneet Pal Singh
One is AFCOMS and one is Sriji Infrastructure. One is FCOMS and one is Sriji infrastructure. No, no, no. We have bidded for two projects. Okay. Both projects cost is around 900cr. In package three, one bidder is SRM and the second one is AFCON. Okay. And in package. In package six, one is Sriji Infraspace and one is SRM.
Unidentified Participant
Okay. Thank you.
operator
Thank you. The next question comes from the line of Anjali Bajaj, an individual investor. Please go ahead.
Unidentified Participant
Hello sir, historical what has been our inquiry to order conversion percentage? Has the ratio improved after our technical capability Especially for Mega PD acquisition? On average how long does it take for inquiry to convert into confirm order? Hello. Hello.
operator
Yes, Anjali.
Unidentified Participant
So my question is regarding what has been our inquiry to order conversion percentage hydration improve after safely pause mechanically activation.
Sanjay Mehta
I have got it.
operator
The line for Mr. Sanjay was disconnected and he’s back right now in the conference room.
Sanjay Mehta
Anjali, the question has been answered by. Somebody as.
operator
There is a lot of background noise from. Mr. Sanjay, from your end there is a.
Sanjay Mehta
Question has been answered by somebody.
Unidentified Speaker
She can repeat. It’s not answered.
operator
It was not answered. Mr. Raj, there is a lot of background noise from your end. Mr. Raj, you can proceed with your question now.
Unidentified Participant
Yeah, thank you very much. Am I audible?
operator
Yes, you are.
Sanjay Mehta
Yeah. Please. Yes.
Unidentified Participant
Sir, this fundraise that you have talked about. Will it be equity or debt?
Sanjay Mehta
Equity. Okay.
Unidentified Participant
Okay. And you as per your judgment this amount will be enough to grow for next two years or three years or one year.
Sanjay Mehta
One year. For one year.
Unidentified Participant
Okay. That’s it. Thank you very much.
Sanjay Mehta
Thank you.
operator
Thank you. The next question comes from the line of Akhilesh and individual investor. Please go ahead.
Akhilesh
Good afternoon sir. The number looks good. My first question is about Brahmaputra infrastructure. They work in roads, tunnels, slope stabilization, bridges etc and operate in most of the location where we are present. They continues to receive government orders including undergo slope stabilization project in Mazuru six months back. Six months ago. I. I don’t know anything about Brahmaputra infrastructure, man. They are listed in the market. They are announcing regularly of orders. Their margins are.
Sanjay Mehta
Their margins are higher than us.
Akhilesh
Oh yes. They are even getting tunnels, bridges and roads etc. Same like us. Okay.
Sanjay Mehta
So what do you think?
Akhilesh
Sir, their margins are higher than us. And we have not receiving any orders Updates in last 3 months. Could you please explain why their margins are better like that if you know about that company.
Sanjay Mehta
No, no man. I don’t know about the company neither. I have studied so I can’t comment on that company. But our order books. I as I have told you will. See a surge in next two weeks. You can check later on the market.
Akhilesh
And my second question is what is the target segment revenue mix from commodity road projects to niche business such as tunnel bridges and slope stabilization for. Higher. Margins and financial 27.
Sanjay Mehta
You want to know the mix of the projects. So roughly to. As of Today we have 60% of. Our revenue coming from roads and something like 25 to 35 slopes and 10 to 15 tunnels. So we are still looking for a good tunnel project. And let’s see bikey road and slope we have got. We are bidding and we are getting whatever is required tunnel project. We of course we are lacking a little bit. But we are looking for a good project. And as you know there are few. Tunnel projects as compared to road project and smoke projects. But as and when we get a good margin tunnel projects we are definitely. We going to do it. Already we completed world highest cut and cover tunnel at show. So which I told you in the beginning which was in the national headline. It is our flagship tunnel. It’s 920 meter India’s longest precast cut and cover tunnel. So we are looking for the same opportunities.
Akhilesh
Let’s see any percentage for financial 27. Sorry, any percentage revenue mix for imajin segment.
Sanjay Mehta
Even with the roads which we are. Choosing now they are not a less margin. So as of today my project the mix is up. Slope is of course highest margin in the segment. And we are increasing slope component slowly. But road is also giving us a good margins as of today if you compare with the other industry, our competitors. We are getting good margins in road also.
Akhilesh
Yes sir. What are the margins in the road? Sir, can you explain?
Sanjay Mehta
It varies from project. If it really varies from project can be 7% or it can be 18% also in some projects it depends how you mix and match your projects. It we can’t say anything with. Because if you are bidding for something like minus 35 project and you see it is a good opportunity and you are already working there, you are mobilized there. So you may settle for a little, some little margin. But if you are going to a. New territory and everything then we look for a better market. So it varies. It’s a mix.
operator
Thank you. The next question comes from the line of Anjali Bajaj, an individual investor. Please go ahead.
Unidentified Participant
Hello sir. Congratulations for good set of numbers. And thank you for giving me opportunities. My first question is historical. What has been our inquiry to order conversion percentage? Has this issue improved after over technical capabilities? Especially post Mecha ferry acquisition on average how long does it take for inquiry to convert into confirmed order?
Sanjay Mehta
Okay so of course I as I. Told me earlier some investor also that. Conversion in slope is much higher than conversion in road. So if I have a order pipeline. Of 400 crore in Mecca ferry for. Which we have bidded so my conversion will be more than 50% here in road it can be 10. It can be 20, 20 because even one project you get you suddenly increases your. You know if you get a 600 crore project so it 10 it increases by 10%. So that way road is. You can say 20, 20, 20% but slope is almost 50% as of today.
Unidentified Participant
Okay. And my thought second question. See what kind of revenue contribution can be accept from expect from the Mecca Perry in franchise 26 and 27 as Mecca very business operating at higher margin compared to HRM existing ECC business. Can this improve the overall EBITDA margin going forward? And how much of current order book include geotechnical solution? And how do you see this segment growing over the next two to three years?
Sanjay Mehta
Yeah, in McAfee we are expecting a turnover of 250 to 325cr range. And as of today EBITDA and Pat are same similar in SRM Mecca Perry. And we love to have a higher. Margins in both the companies.
operator
Thank you. The next question comes from the line of Disha from Sapphire Capital. Please go ahead.
Unidentified Participant
Hello.
operator
Yes. Yes you are.
Unidentified Participant
Thank you so much for this opportunity. So most of my questions have been answered. This one question from. From my side. So you mentioned we are expecting 275. To 300cr contribution from MIPL for this year. What could this number look like for FY27?
Sanjay Mehta
27?
Unidentified Participant
Yes.
Sanjay Mehta
27 will be in the range of. 400 to 500 cr. Yeah, this was this. Since this was our first year we. Expected a higher turnover. But first year, first two quarters we. Have been you know streamlining for formulating new policies, going to new customers. So of course second year will be the launching.
Unidentified Participant
So overall I think we can expect. 2000Cr kind of target on a console basis. Because I think 1500 is what we’re expecting from standard only.
Sanjay Mehta
We keep our fingers crossed but up.
Unidentified Participant
Close and so yeah. Any plan for increasing the stake in mrbl?
Sanjay Mehta
Not as today because the management is interested to go with the official. McAfeer is interested to go for the same setup. But we have one class of increasing our stake. If we are able to achieve certain turnovers they will give some. There is a ramification ramp up of the some shares which will happen. That’s it.
Unidentified Participant
So for this mrpl what sort of growth CAGR can we expect going ahead? Also.
Sanjay Mehta
Going ahead. What?
Unidentified Participant
So FY27 you mentioned 400 to 500 go FY28. FY29 going ahead. What sort of growth do you see in this business?
Sanjay Mehta
Yeah, that, that. But the slope works are not that. High in the country. Right. So their size is also not very big they range from 20 crore to 200 or 30 crore something like that. So even I say next year 400 so we we cannot grow like 800. And 1200 as we can grow and grow this road business slope slope will. Take its time so why any conservative. Means if we achieve 400 then 600. Something like this not it can’t grow. Double or something like that.
Unidentified Participant
Yeah yeah right right okay that was helpful thank you so much and all the best for the future.
Sanjay Mehta
Yeah thank you.
operator
Thank you very much ladies and gentlemen that was the last question for today. I would now like to hand the conference over to Mr. Sanjay Mehta for closing remarks.
Sanjay Mehta
Thank you very much investors for keeping faith in us. We always say we are here to perform and we believe in merit only and merit always shines. Thank you very much.
operator
On behalf of SRM Contractors limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you. It.