TECHNO ELECTRIC & ENGINEERIN (NSE: TECHNOE) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Padam Gupta — Chairman & Managing Director
Ankit Saraya — Director
Analysts:
Unidentified Participant
Suraj Sonulkar — Analyst
CA Garvit Goyal — Analyst
Ankit Madhwani — Analyst
Rohan Dalal — Analyst
Deekshant Boolchandani — Analyst
Pranjal Mukherjee — Analyst
Shivkumar Prajapati — Analyst
Vinod Chari — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Techno Electric and Engineering Co. Ltd. Conference call hosted by Asian Market Securities Private Limited. As a reminder, all participants line will be in. Listen only more and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded now. I hand the conference to Mr. Surat Solankar from Asian Market Securities Private Limited. Thank you. And over to you sir.
Suraj Sonulkar — Analyst
Thanks Pari. Good afternoon everyone. On behalf of Asian Market Security we welcome you all to the Q1FY26 earning conference call of Techno Electric and Engineering Company Limited. We have with us today Mr. P.P. gupta, Chairman and Managing Director and Mr. Ankit Saraya, Director Research representing the company. I request Gupta ji to take us through the overview of the company quarterly result and then we begin with the Q and A session. Over to you Gupta ji. Sir.
Padam Gupta — Chairman & Managing Director
Thank you so much. Very good afternoon and welcome everyone to discuss Techno Electric’s financial Results for the Q1 and year ended of the year 30 June 2025.
Anything said on this call which reflects our outlook for the future or that could be construed as a forward looking statement must be reviewed in conjunction with the risk that the industry and company faces. Let me highlight our performance for the Q1 financial year 26. The results of the Company. Firstly, I would like to say the results of the company are not comparable on quarter on quarter basis due to the inherent nature of the business we carry out. The Q1 is generally not is plus minus 15% of the full year turnover followed by 20% plus in Q2, 25% plus in Q3 and around 35% in Q4.
This pattern you must have noticed over the previous years. Also the total revenue of the company for this quarter stands at 515cr up by 25% year on year. Beta of the company stands at 80 crore up by 42% year on year. Beta margin is at 15.6% compared to 13.7 last year year on year. The other income stands at 58 crore approximately compared to 23cr last year. Similarly, profit before tax is at 124 crore compared to 75cr last year up by 64% year on year. The pat of this quarter is at 99 crore up by 78% and EPR is at 10.70 per share.
We have been getting compressed schedule due to Delay in acquiring land parcels for setting up of the facilities from our clients as they want their projects to be operational as per COD dates forming part of their concession agreements. We are bettering the timeline in setting up of the prestigious substations which is again repeated after seeker at the DOSA which is 765 by 400kV substation comprising of 28 elements of transformer and reactors which implies a 5 gigawatt of transforming oblique reactive capacity. A compressed schedule increases the productivity of the resources deployed which includes mechanized construction equipment, skilled labor, the cost of procurement of local inputs, materials etc.
The compressed schedule further helps in optimizing the establishment cost and more so the productivity out of the resources deployed, making working capital efficiency more efficient. This is now being practiced in IES in other ongoing projects at Bidar, Anantpur, Halwad, Lakadia which are under execution and will be completed during the year. During the last year we have successfully commissioned projects at 17 locations all over the country. Apart from this, in spite of increasing revenues, we do not let our balance sheet stretch in terms of working capital management due to better execution, operational efficiency, focus on cash flows and efficient utilization of resources.
Our current Investment as on 30th June 2025 stands at 250 crore which is around 200 rupees per share. Techno has been able to garner better operating margins consistently over the years in this space compared to its peers. We have been able to convert the profit into cash on our balance sheet and at one of the efficient working capital management. The reasons for same can be summarized like speed of execution, thereby timely completion of the projects, the timely collection of the receivables, but more so the retention money by achieving closing of the contracts too avoiding interest meeting advances by the client, the better credit terms from the vendors backed by commitment to pay in time due to better margins and working capital efficiency, we have been able to be debt free company.
Apart from that, over the past few years the company has successfully monetized its all renewable power assets and transmission assets thereby garnering a cash surplus of 1500 CRS and not in a single asset. We had to see haircut. Additionally rupees 1250 crore has been raised on QIP basis. This amount is available for next growth phase which is in execution now and we are constantly investing now in value accretive assets like data centers, AMI, TBCV etc. The benefits financial benefits which will be seen in the coming years. We have already deployed about 1250 CRS in last two years as CAPEX in our subsidiaries SPV for setting up of the data centers, edge data centers, AMI projects, transmission projects acquired in TVCB mode and also the projects in execution in partnership with INGRID at Dhoolaishanagar, the company is pleased to inform that the Chennai Data center is now ready for operations and as data center at Gurgaon is already in deployment is complete and in deployment we expect during the year to deploy edge data centers at five locations and also deploy smart meters of more than a million and we have also planned to successfully complete substations of 765 to 220kV level at more than 20 locations countrywide.
You will be happy to note that we are deploying 220x66kV GIS substations in the highest altitude of the country in Ladakh and Kashmir at four locations out of which three will be complete during the year. Coming to the Order Book the momentum for bidding an order book has been steady. We have robust order book of unexecuted orders as of 10,408 crores as on the June end we are further L1 in order and also in advanced stage of order receipt for worth 720 crores. We expect the order book momentum to continue and order intake for the financial year would be around 3500 crores.
This simply reflects we will have enough orders in hand to keep the growth momentum of around 40% to 50% CAGR for next two years. Building on this growth momentum witnessed in last three years over, our monthly revenue grew from 75 crores in 23 to 200 crore per month in financial year 2025 which is further to be which is further planned to be at 300 crore per month in the current year. This confidence stems from our already achieved performance in the previous year successfully with this delayed of order backlog to execution will be at around 3 plus which is the industry norm.
In the meantime the company will continue to grow up its business in data space data center space which is becoming very exciting with every passing day. We are pleased to inform that our Chennai Data center has been considered eligible for deployment of AI backed applications including Clouds Outlook. India’s energy landscape is going through a significant transformation from historically sluggish industry energy demand growth to now registering double digit growth driven by peak load targets scaling 260 gigawatt and above and ambitious 400 gigawatt by 2030. To bridge this demand supply gap, strategic investments are being channeled into advanced transmission systems like High End 765kV Solutions, Tedcom Solution, VSC HVDC, Solutions Battery storage solutions where techno enjoys a market leading position on the distribution front, massive smart metering rollout under RDSS and new reform link distribution digitized distribution schemes will drive efficiency and private sector participation.
Another area of focus for us, the generation segment is also reviving meaningfully with the government 80 gigawatt thermal capacity addition plant opening the substantial opportunity for balance of plant, EPC and power evacuation infrastructure or grid connectivity of these facilities simultaneously. The data center ecosystem in India is undergoing a paradigm shift driven by AI cloud 5G and data localization imperatives. The market is expected to more than double by 2030. Our investment in hyperscale NH data centers in Chennai, Gurgaon, Kolkata and across tier 2 tier 3 cities via realtel are timely and strategic position to capitalize on this.
We believe this convergence of energy transformation and digital infrastructure offers a multi year high growth opportunity. Techno Electric is strategically aligned, technically equipped and financially sound to scale alongside India’s aspiration in both these mission critical sectors. Let me brief outlook opportunities and techno strategy in each segment the key drivers for the power transmission sector are integration of 500 gigawatt of renewable energy to the grid needs, at least 50,000 circuit kilometers of transmission lines and at least 433K MBA transformation capacity. National Electricity Plan envision a outlay of 9.15 crore and power grid’s own capex in this is no less than 2 lakh crore till 2030 as per their plans.
Finance Minister in Budget Speech 2025 has incentivized electricity distribution and augmentation of intrastate transmission capacity by States amid efforts to improve their capacity of power firms and financial health and additional borrowing of half percent of GSDP will be allowed to state contingent of these reforms. This will bring another investment opportunity of 1.5 lakh crores and we can see already Maharashtra taking lead in this place. The EPC opportunities in this segment the TBCB model projects increasing private participation, High End Technology EPC 765 KV AIs GIS Statcoms and Battery Energy Storage Solutions and VSC HUDC Solutions Inter regional corridor strengthening capacity corridor capacity transfer ability strengthening green energy corridors for more re evacuation and integrating with rest of India.
The bidding pipeline apparently visible is around 40,000 crore per annum and where techno plans to buy it 2500 crore per year for next four years. We concurrently have orders worth of Presently we have orders worth rupees 7,127 crore for transmission. We have successfully bagged two concessions in TBCB with the total revenue of 2,800 crore over concession period now coming to distribution. The RDSS scheme has a allocation of 3 lakh crore plus as a outlay out of which two years are already nearly over and this scheme is for five years. The reform linked distribution scheme of 16,000 crore focused on PPP oblique privatization model.
The scheme is for distribution sector at a mix of result and reform based financial support with an objective of ensuring 24 by 7 sustainable power for all financially viable distribution sector. The scheme and messages forward to DISCOMS in case of adoption of reform packages including PPP ownership of distribution companies, Adoption of various financial models at distribution level including multiple supply franchises. Focus areas are going to be grid modernization which includes scada, gis, ami, smart grid deployment, loss reduction and power quality improvement solutions. Advanced smart metering as an opportunity landscape 22.24 crore meters planned under RDSS another scheme which totals almost about 2.22 lakh crore as a capex.
Out of this 14 crore meters are already awarded and 2.9 crore meter stands installed and out of this our share is about 1.5 million against 29 million scope for 8 to 9 crore more meters to be bid out in next 23 years. High margin reckoning O and M scope under Trotex model and also data driven DISCOMF transformation due to the very presence of smart meters or AMISP in place now we have won concessions in AMI for 2 1/2 million meters out of which by now we have deployed about 0.8 million and it will be around 1.7 million by the end of the year.
Thermal generation 80 gigawatt of additional thermal capacity is planned by 2030to meet the peak demand of 400 gigawatt. Focus on ultra supercritical and supercritical plant technology which means lesser coal consumption and also emission. Thereby the EPC scope as a balance of plant will continue to be there. We will have a scope to deliver at least the grid connectivity part as well as the electrical elements for auxiliary systems. The estimated EPC opportunity is about 80,000 to 1 lakh crore over 7 years out of which we intend to make around 500 crore per year renewable generation. The target is 500 gigawatt of renewable capacity by 2030 up from around 200 gigawatt.
Currently need to integrate solar plus to solar hybrid systems and wind farm EPCs and also to ensure RTC solutions floating solar and RD parks under M and RD programs. The EPC opportunity is another 3 to 4 lakh crore and with number of polling stations required to facilitate this capacity. The budget for financial year 26 significantly increased allocation for the renewable energy sector with the budget estimates reaching almost rupees 258 billion for MNRE, a 39% increase against the earlier budget allocation of 191 billion from last year. We see a slowdown in FGD segment particularly after the Nithya report, but the orders we have got will continue to be executed at the given pace.
The industry may see business to the extent of 5 gigawatt per year from SCBS and somewhat from private sector in this space if they are classified under category A by the Ministry of Environment and Forests. We have got the orders worth 1450 crore of FGD and is progressing normally. Next is the data center. Major growth drivers for data centers are public cloud adoption, data localization, policy incentives, digital transformations, technology development and the rollout of 5G, AI 5G and VR. Increased Adoption Revolutionizes Enterprise Technology Market IoT Big Data and private cloud computing will be another opportunity.
The Chennai Data center is now ready in its first phase of 5 megawatts which is a high I will say hyper density infrastructure deployed in this solution. We have invested about 500 crore into this project by now despite facing delays due to regulatory and permissions approvals etc. Supply chain disruption. We have successfully now completed the first phase of our Chennai Data center and now is in deployment. We are ready to deploy 40 almost 50 racks I will say before end of year two which is half megawatt and we hope to deploy this full capacity by December end.
We are inaugurating this facility on the 27th of August and our first few orders from retail customers will help us streamline our operations and demonstrate our capabilities as a data center operator. We have received orders from leading media production studio working on animation and special effect vfx. They will be running this entire story operations from our data center and will be a good reference for future. Our pipeline for data center is robust and with ongoing discussions with cloud and AI partners. These partners are in particularly interested in high density setups leveraging the unique value propositions offered by our Chennai site due to its comprehensive design.
Domestically we are engaged with banks, CDNs, domestic cloud providers receiving positive feedback from one global private sector bank. We are actively participating in RFP processes with the global bank which we anticipate conclusion within next two months. Recent advancements in the AI field have significantly increased the demand for data centers as GPUs require substantial resources that can only be supported by data centers like ours. With the unique proposition due to the design of the Chennai Data center we are placed ahead of the competition. India’s AI mission has recently commenced with the empanelment of various players and we are in contacts and negotiations with multiple stakeholders to provide our data center infrastructure at Chennai to enhance our market reach.
We are onboarding global channel partners for distribution and establishing an extensive distribution network within India for our forthcoming data centers with help of our distribution and IT players. We are also in discussion with some customers for bare metal private cloud services. With our customers with the niche service offerings we will have better monetization. Edge Data Centers we have secured a concession from Realtel to build under edge data Centers. As you know at tier 2 tier 3 cities and towns across India. Our first EDC in Gurgaon with 200 kilowatt is complete and is being now in deployment.
We are now in the process of deploying the racks to the various customers engaged by Railtel which are largely government and PSUs. Work on the Mumbai Edge Data center has become and is expected to be operational by in H2 of the current year. Discussions are ongoing with an Indian conglomerate to lease 100% of the capacity upon commissioning. We are negotiating and contracting 4 to 5 tier 23 locations with global hyperscale customers. We have shown interest in sites at Gandhinagar, Indore and Bhopal. New Delhi, Hyderabad and Guwahati are targeted for future edge data centers under the Railtel contract.
Multiple inquiries from distributors and channel partners are being actively pursued. Noida Data center we have secured a concession from Realtel to build a hyperscale data center of 18 megawatt in Noida. The construction work for the same is going on and we expect a partial completion and commissioning in H2 financial year 26. Kolkata Data center the master layout for the data center is ready and pre construction has started. The first phase will be commissioned between mid and late 2027. We have an active funnel of 100 crore and key large cloud opportunities. The expected revenue for financial year 26 is 3500 crore and approximately a growth of another 25% for the year 2627.
Accordingly, the EPS forecast is rupees 50 for the current year and around 75 for the next year. With this. Ankit, do you have something to add? Yeah, yeah. We can take up the questions now.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask the 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 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 C. CA Garved Goel from Invest Analytics Advisories. Please go ahead.
CA Garvit Goyal
Hi, I’m audible.
operator
Yes, sir.
Padam Gupta
Yeah, welcome dear.
CA Garvit Goyal
Good evening sir. And congrats for a good set of numbers. You mentioned about SGD slowdown and while you also mentioned in existing order book, we will not be facing any hindrance in the terms of execution. Can you spend few minutes on explaining the impact of this policy related to FGD on your vision for techno’s scale up over the next three to five years? That’s my first question.
Padam Gupta
Yeah. You see, FGD was never a big time focus as a top line growth for techno in business. We never expected business to be more than 3 to 400 crore per year out of this segment. And we wanted our presence to be no more than 5% in this marketplace. I think this is a debatable space even now. Although government has under some prudence classified requirements on category A, B and C believing the cost of deploying the solution is not value. You know, driven the capex is lot more than the benefit achieved out of this facility.
So they have classified the country based on populations 1 million and above number one and the powerhouse must be within 10 kilometers as a category. Then they have a B category and C category. That B is not very well defined. But CES which are not required immediately. So that is the classification. But if the ongoing projects have already achieved a progress more than 40%, those projects will see the completion depending on the approval from the discoms. That is how the policies so government is actively engaged. Meetings have been held at the level of the project.
Utilities CA has conducted meetings with generators, they have conducted meter meeting with EPCs and I’m sure some guideline will follow shortly.
CA Garvit Goyal
So is there any risk in the existing order book execution as well? Like you mentioned about some approvals. So if approvals are not there, then that means we will be facing some challenges in the execution of existing order book as well. Can that be the case?
Padam Gupta
No, no, no, no. The order existing orders have already a two year old with us and they have quota falls and we have two orders quota and Jalawar quota is in category A so it has to see the completion by the very policy. Jalawar is in category C which is already complete beyond 60%. We have shared all the data with the generators, with the utilities BIZCOM as well as vca. NTPC has already taken a call to go ahead with the ongoing projects. So I. We technically don’t see much threat to the other order also at Jalawar.
CA Garvit Goyal
Understood sir. And secondly on the Chennai data center you mentioned that is operational now. So can you tell us like what kind of revenue are we anticipating in this year itself from Chennai Data center.
Padam Gupta
Ankit, are you there? Hello.
operator
Yes sir. He is connected into the line.
Padam Gupta
Hello.
operator
Yes sir.
Padam Gupta
Yeah, you see you can take a revenue this year may not be more than my Ankit will be more able to say accurately but I trust it will be about 25cr.
CA Garvit Goyal
I think earlier we were speaking about. 100Cr
Padam Gupta
not this year. You see ultimately this will grow up to 100cr. I said today also maybe it will be more visible from 100 to 200cr next year. In this year we are in the process of building up of the capacities like Gurgaon, Bombay, Chennai. So these three facilities will be ready for deployment. So I will say conservatively 25 crore but maybe more and depending on what you include in it. You know I am not including any services or any power cost in it. I’m talking of the beer revenue which will have a beta of 80% or more.
CA Garvit Goyal
Understood sir. And lastly on the guidance part, the guidance for this year EPS 50 and Revenue 3600. Is that intact?
Padam Gupta
Yeah, yeah, absolutely they are intact.
CA Garvit Goyal
Thank you very much sir. And all the best for the future.
operator
Thank you. The next question is from the line of Ankit Mahadwani from Step Trade Capital. Please go ahead.
Ankit Madhwani
Hello.
Padam Gupta
Yes sir.
Ankit Madhwani
Yes sir. I just wanted to know the margin profile like the data center will be operational by this year. So what will be the margin for the FY27?
Padam Gupta
No, we have already said margin. We don’t inbuilt the 75cr. EPS of 75 will largely be coming out of the EBITDA inclusive of data center in that obviously. So it is depends on how top line is constructed. In this business if you take bare rentals then it is 80%. But if you include services power costs then accordingly a beta goes down to 50, 60%. So. But it will be much better than what we get in our EPC business. So it will only be improving.
Ankit Madhwani
Okay. So sir, when we look at your data center business, so what will be the proportionate revenue for FY26? So can you tell us the weight of the data center?
Padam Gupta
So no, in 26 it will be very negligible. So we are already talked about it in the previous question. Maybe 25 to 30 cr but it will be little more significant next year.
Ankit Madhwani
Okay. Okay, so one one year is the waiting period.
Padam Gupta
Yeah. That is 26, 27.
Ankit Madhwani
Okay. Okay. Understood, sir. Understood. Okay. And sir, FY27 may. What would be the tentative number? So when it is significant. But what would be.
Padam Gupta
You see, we need to be precise. I think you wait for another two quarters when we take up the results of, you know, around maybe Q3 on data center revenue will be more precise. But we are definitely targeting a big push because this sector is evolving and changing every moment. Sometime it looks, it is so opportunistic, so wonderful. And sometime it takes time to conclude, you know, with the customer. Customer takes more time to conclude a contract and deploy his facilities. So that bit of uncertainties of three months, here they are always keep playing in the forging a relationship and relationship becoming revenue accretive.
Ankit Madhwani
Correct, sir. Okay. Okay. Thank you. Thank you very much, sir.
operator
Thank you. The next question is from the line of Rohan Dalal from Batliwala and Kirani Capital. Please go ahead.
Rohan Dalal
First of all, congratulations on some excellent numbers that you’ve shown. And we really look forward to the next couple of years going forward. My question is that we have been, you know, in the past you have guided that you’re looking for a strategic investor for your data center business. Is that still on the cards or now are you looking at doing it entirely on your own?
Padam Gupta
Look, dear, strategic is a very meaningful and very significant word. How strategic a partner is who brings opportunities, who brings capabilities and not merely finance, you know, because techno is capable to finance its operations. So we will keep, we are exploring. We are continuously in touch with many great global firms as well as Indian companies. So it’s a work in progress, I will say. And we have a open mind on it. So we will definitely take you in confidence as and when something significant happens.
Rohan Dalal
Okay. And sir, my next question is I know that you know in the past you have offered for if anyone wants to come and visit your office in Kolkata. Who should we contact if we would like to come?
Padam Gupta
Vishal Jain is our PR man.
Rohan Dalal
Okay. Thank you sir.
operator
Thank you. The next question is from the line of Dikshant from DV Wealth. Please go ahead.
Deekshant Boolchandani
Hi management. Congratulations from the good results. So the first question is could you actually from an historic perspective, before 2021 we used to have margins in the range of 24, 25%. But since 2021 our margins have dipped significantly. So what has been the change in the business that has led to this drop in margins right now?
Padam Gupta
I think all of you know we were the first IPP in wind had invested in 200 megawatt. The revenue of wind power had a beta of no less than 80%. But the revenue may be around 200cr. So that was contributing lot more to the EBITDA when put together with EPC business. And same may happen down a year. But data center businesses clubbed with the our EPC business. So EPC business has a different beta, you know, than the beta in a asset based business.
Deekshant Boolchandani
So given our seasonality of business, June quarter has had actual better margin than the previous. So what has been going right for us to give us this margin in a seasonally muted quarter?
Padam Gupta
No, there is no magical change. Again I will say because now the sum revenue of our wind business number one has become so insignificant that the auditors decided to take it a one segment business and not two segment business anymore as we did till previous year. So if you take on EPC business only, the margin will be around 14 and half percent only. Whereas if you put the wind business revenue which is around 1520 crore now of the remaining 20 megawatt in our books then it improves by further 1% more.
Deekshant Boolchandani
Got it. So in our line item there is a particular line item in a P and L which is profit from discontinued operations. So could you just give us some light on understanding what this particular number means and why is it declining?
Padam Gupta
You see, a discontinued business is a discontinued business and realization out of the same is the arrears receivable from the discoms of the power already supplied over previous years. The asset stands monetized and disposed of in 23 by the company. Now. So those are regulatory disputes. As and when we get regulatory favorable orders, those amounts becomes payable by the discoms and we get paid. That is what it means.
Deekshant Boolchandani
Thank you so much for that explanation. But could you, could you elaborate a little bit on this? That when does a regular business become a discontinued business for us just from a business cycle perspective, the question I’m asking.
Padam Gupta
No, I have not got your question. A discontinued business never become regular business.
Deekshant Boolchandani
See, regular business will become discontinued business at some point of time, right?
Deekshant Boolchandani
Yeah, that is already discontinued in 23. So I said there is no more power generation, no more regular sale of power. These are the realization of areas as per the eligibility as per provisions of the PPA we have with the discoms. So DISCOM heads its own disputes with us. So we went through regulatory resolutions with tnerc, with eptel. So those favorable orders as and when are implemented, money is received, we disclose that amount on receipt basis in our books as A conservative. They were not kept in our books as outstanding of the previous years nor accounted for those entitlements.
We already state that we are conservative and we account all disputes and all these kind of regulatory issues pending in the courts or arbitration or in regulatory courts on receipt basis only.
Deekshant Boolchandani
Got it. So last question is on our guidance. So you have mentioned a 40 to 50% guidance for the next at least two years. What kind of margins can we expect on this sort of growth? Do you think we can be more than 25% at the end of this?
Padam Gupta
Look, margins are not so simple to come by. We are a regulated part of regulated businesses. As far as EPC is concerned, 14% plus minus will be the benchmark as I have always guided and we have achieved consistently. The further improvements will happen only by our data center business now happening and somewhat out of the AMI business which are the asset based businesses of the company. So club together you may find some improvement year on year. Please. As I said earlier, we will discuss this more in Q3.
Deekshant Boolchandani
Okay. Okay. So if I may ask one more last question is on our other assets items. Our other assets items are has improved from last year to 2025. So it has gone from 400 odd crores to close to 900 crores, around 880 crores. Could you just tell us that what are these other assets that we are working on right now? Is this part of the cwip? But that would be different.
Padam Gupta
You rightly worded yourself. It is a CWIP which will be capitalized in Q2 now out of this for Chennai Data center and somewhat more by the end of the year on the AMI and somewhat on the TBCB site as and when commissioned.
Deekshant Boolchandani
Thank you so much sir. Thank you.
operator
Thank you. The next question is from the line of Mukherjee from Growth Peer Ventures. Please go ahead.
Pranjal Mukherjee
Hi sir. Am I audible?
Padam Gupta
Yeah, very audible sir.
Pranjal Mukherjee
Thank you for giving me this opportunity. And I have to say sir, congratulations on a great set of numbers. So my. I had a couple of questions on the smart meter business. So given we understand that H1 is usually slightly low on the software on the implementation part like in smart meters and then the majority of the business and the implementation picks up in H2. So I just wanted to understand like. Like what kind of like on ground, like what is the on ground situation that you’re seeing right now in the market and do we foresee like installation picking up quarter on quarter even from this level?
Padam Gupta
Yeah, we have not faced any problem to be honest in deploying meters so far and we almost do about a 80,000 to 1 lakh meter a month. And that is what we are obliged to do under these four concessions. And it is going as per the program. Right. So we are, we are to complete all this by September 26th or entire two and a half million meters. And by end of this year we should be at around 1.7 to 1.8 million meters. Leaving another half million or 0.7 million for next year, six months.
Pranjal Mukherjee
Right. And sir, how are we seeing the new announcements that are coming out in states like Tamil Nadu and maybe Karnataka side. Like, are we also pursuing those opportunities?
Padam Gupta
Not seriously to be honest. Because we as we always maintained that our exposure will be no more than 3.5percent in this segment because counterparty risk is little high because of the discoms. And discom reforms are still not very strongly visible though government is supporting it. So we are conservative on this aspect. Wherever we feel we are getting our good ebitda, good customer support, we are there. But we are not going to grow this business aggressively.
Pranjal Mukherjee
All right, sir, I get that. Thank you. Thank you for answering my question.
operator
Thank you. The next question is from the line of Shivkumar Prajapati from Ambit Investment Advisors. Please go ahead.
Shivkumar Prajapati
Yeah. Hi sir. Good evening and congratulations on a great set of numbers. So my question is on data center first. So if I look at the last presentation, last quarterly presentation, I see six figures, 650 million of order in our order book. So the 25 crores that we are, you know, assuming for this year, is it from that or is it the additional 25 crores?
Padam Gupta
No, it is part of that. Only what you see.
Shivkumar Prajapati
Okay, understood, Understood. And so this Mumbai data center, is it on track? I mean.
Padam Gupta
It will be commercialized by December.
Shivkumar Prajapati
Okay, okay. Okay. And sir, one more thing. What would be the depreciation rate for the data center?
Padam Gupta
This is a very challenging question. In an evolving technology space, how to determine a depreciation is always a management challenge. You know, because insolution is a bigger risk you carry than a very physical, you know, the or operational availability of those assets. So technological absolution always is a challenge to my mind. One should not take a life of data center more than 10 years. To my mind.
Shivkumar Prajapati
Last year Q2 we had mentioned some foreign like we are interacting with some foreign entities for our data center. So could you shed some light like what sort of customers and from what all reasons, you know, we are in talks for the data centers.
Padam Gupta
No, I have already. Yeah, please go ahead.
Ankit Saraya
As we mentioned in the beginning of the call that we are in discussion with multiple foreign entities and even domestic entities who can be strategic partner to us. But now that we have successfully started operating our data center in Chennai as well as Gurgaon and have started deploying capacity over there to end customers, we would ideally like to possibly continue deploying that capacity and wait for right valuations. Because once we have taken the call of boldly going into a market on our own strength then better to see the entire cycle and then look out for a strategic partner who’s willing to give those valuations which come with an asset which is generating revenue.
So it is more wise to now wait and take a more prudent call and a bold call when the time is right. Having said that, we have not stopped discussing with strategic partners. We are already in discussion with them and we keep engaging with them time to time.
Shivkumar Prajapati
All right, thank you so much and best of luck.
operator
Thank you. The next question is from the line of Vinod from Philip Capital. Please go ahead.
Vinod Chari
Yeah, thank you very much for the opportunity. Sir. Sir, I had a question on distribution response. So you seen this industry for a very long period of time. I think recently the Supreme Court has said that for Delhi the regulatory assets have to be cleared in next three years and this could become a role model for other distribution cycles. So do you really think this time it’s very different? Because we’ve seen a lot of different distribution reforms in the past which have faltered. So what’s your view on this Supreme Court judgment.
Padam Gupta
Sir? I wish our country was more simple than what you are stating when it comes to the politics of World bank and power sector have not missed or not seen the market reforms like telecom or aviation or highways, similar sectors. So that’s a sad part. It’s a pain part that we say we go by so much of litigations and court orders but states, it’s ultimately a discretion of the states. We have two layers, you know, it’s a so called concurrent list. We have SERCs, we have CRCs. Rather my biggest pain is the, the very Electricity act it provided two things apart from others that we will give a, you know, a consumer hys of the power supplier and we’ll also give a.
Vinod Chari
Hello?
Padam Gupta
Hello, can you hear me?
Vinod Chari
Yeah, yeah, I can hear you now.
Padam Gupta
Yeah. Other than these two things like openss and choice of power supply to the consumer, we have done everything in this sector. We have deployed best of the capacities, best of the solutions, best of the technologies but still they are not cost effective because of the inefficiencies of the discomps so that is a challenge which still persists in our sector, sir. And someday central government has to take as a economic reforms call. That power sector is under GST number one, which is still not number two. I will say that they must by legislative or parliamentary order make it mandatory to have multiple power suppliers in every area of the country as well as open access to the all generators.
It should be one market, you know, free market like any other thing. When we say power is a commodity then it must be dealt like a commodity. Sometime you cannot say some, some people will say it is essentialty. Somebody will say it is a necessity. Sometime we want rules like commodity. So it is a very blended mindset. It’s basically a mindset and behavioral issue in this sector of the local governments.
Vinod Chari
Sir. On that thought actually since you mentioned open access, I think what’s happening with state discoms is I think many of the industrial customers are, you know, the C and I customers are moving out. They are moving into either captive or you know, hybrid kind of renewables and that is probably. And they were typically the customer segment that used to cross subsidize the, you know, the others. So I think the pain is probably going to increase for state discoms than I think what, what we are seeing today.
Padam Gupta
So I don’t know, I’m not, I’m not getting into those debates, you know this week. We usually call it a creamy layer in our sector. That is the language we use sir. But government have to believe can tnd cost be 200% of power generated cost in any country. Tell me, have you experienced that you generate power at 33 to 4 rupee and still in your house it comes at no less than 10 rupees.
Vinod Chari
Correct.
Padam Gupta
So no, no citizen asks in this country to the government who takes away my six rupees, sir. So that those questions public have to rise up, you know one day and ask these questions. So that is the challenge. And obviously when normal efficiency or efficient and competitive solutions are not available to the industry or large commercial sector they find roundabout ways to achieve it.
Vinod Chari
Sure sir.
Padam Gupta
That is what is happening. Why so much of pain, you know, why we cannot reduce the cost of the power to 50% and and consumption to two times. You see how much growth it will bring to the sector. Why per capita consumption cannot be 2000 in this country if power cost comes down to 5 to 6 rupees.
Vinod Chari
Let’s hope. I think this probably sets the tone because there have been many one time settlements which have never remained a one time settlement.
Padam Gupta
Absolutely right. Yeah.
Vinod Chari
Thank you so much sir. Thank you.
operator
Thank you. The next question is from the line of Dikshan from DB Wealth. Please go ahead.
Deekshant Boolchandani
Hello.
operator
Go ahead with your question, Mr. Dixon.
Deekshant Boolchandani
Hi sir. Am I audible?
Padam Gupta
Yeah. Now you are.
Deekshant Boolchandani
Our working capital days has been increased. So could you shed some light on what’s happening on our total working capital cycle right now?
Padam Gupta
No, no, no. It was very momentary in June and if you are talking in July itself we realized no less than 250 cr out of these outstandings. So now it is back to normal in June customers were little short of funds and government. Maybe funds were not released by the government. MOP. May be war was the one reason. I don’t know. But now we have got all the money back. Even our balance in the cash in hand is almost 2500 cr plus in standalone entity.
Deekshant Boolchandani
So do you think that our current years working capital cycle will be in the similar range or can we be better?
Padam Gupta
Absolutely. No. It will be in the similar danger.
Deekshant Boolchandani
So sir, last year also our working capital has had increased in 20. 25. 25.
Padam Gupta
Not at all. Please read our document more. With a deep sight. With the with a growth of 50% the working capital requirement remained the same. Our our debtors were at 600cr only.
Deekshant Boolchandani
Got it. Got it. Thank you so much, sir.
Padam Gupta
Yeah.
operator
Thank you. Ladies and gentlemen. That was the last question for today. I now hand over the conference to management for closing comments.
Padam Gupta
Yes, Suraj. Would you like to say or.
Suraj Sonulkar
You say Sir.
Padam Gupta
Yeah. Thank you very much for joining the conference call. If you have any question regarding our performance please send us an email. And you are always welcome to drop in our office if you happen to be in Kolkata or in Gurgaon any part of the time of the year. With this concludes the conference and we appreciate and respect your participation. Thank you very much.
operator
Thank you. On behalf of Asian Market Securities Private Limited concludes this conference. Thank you for joining us. And you may now disconnect your lines.