TECHNO ELECTRIC & ENGINEERIN (NSE: TECHNOE) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
P.P. Gupta — Managing Director & Chairman
Ankit Saraiya — Whole-time Director & Chief Executive Officer
Shivani Chandok — VP, Strategic Initiatives & IR
Analysts:
Mr. Suraj Sonulkar — Analyst
Mohit Kumar — Analyst
Ravi Naredi — Analyst
Shrey Gandhi — Analyst
Anmol Mittal — Analyst
Shreyan Gatani — Analyst
Prasanth Gopal — Analyst
Gaurav Shukla — Analyst
Krupa Desai — Analyst
Ashish Soni — Analyst
Janice Chera — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Techno Electric and Engineering Co. Ltd. Q3 and FY26 conference call. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this 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. Suraj Formation Market Securities Private Limited. Thank you. And over to you, sir.
Mr. Suraj Sonulkar — Analyst
Good afternoon everyone. On behalf of Asian Market Security, we welcome you all to the Q3FY26 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 and Shivani Chandok, VP Strategic Initiative and Investor Relationship. I request Guptaji to take us through overview of company quarterly result. And then begin with the Q and A section. Over to you sir.
P.P. Gupta — Managing Director & Chairman
Thank you Suraj. Very good afternoon to all of you and thank you for diving in today. I appreciate you taking the time. To. Join us as we discuss the financial results for the quarter ended December 31, 2025. Before we begin, I would like to make the standard safe harbor statement. Some of the remarks we make today may contain forward looking statements which should be viewed in context of the risks and unseen and challenges inherent in our industry. Or firstly, I would like to start today’s call by setting a broader agenda or context which is new Techno electric. For those of you who have cracked techno electric over years. You know us well. You know us as a disciplined EBC player.
A company with a legacy of 40 to 45 years in power sector. Zero debt balance sheet and a dominant share in India’s power grid both in generation and transmission. And of course as a participant in distribution reforms post electricity act. You know us as the team that built over 50% or more of India’s national meat substations. And maybe more than 60% in 400 and above KB category. You know us as a company that has never reported a net loss for over maybe 30 years. And we have survived and thrived through multiple commodity cycles. Covid period.
Many of our peers have faltered. But today I am here to talk about the techno electric conventional. And I am not here to talk about techno electric conventional business. But I am here to introduce you to new technologies. We are currently in the midst of a fundamental transformation. We are building from being a pure play EPC into power sector. And now transforming to A digital infrastructure platform. This is not just a change in branding but it’s a change in our DNA. We are leveraging our deep expertise in power sector which is after all the main raw material or input of the digital age to build high value assets in data centers and smart metric.
Our vision is simple to bridge the gap between traditional infrastructure and the new digital economy. We are using technology not just to build but to own and operate assets that generate long term annuity like cash flows. The Macro Landscape A Tale of Two Super Cycles why make this pivot now? The answer lies in convergence of two massive super cycles currently reshaping the Indian economy. First, the Power transmission super cycle. India’s power landscape is shifting dramatically. New Central Electricity Authority has devised the financial year 27 peak demand projection upward to over 277 gigawatt. To meet the national goal of 500 gigawatt of renewable energy by 2030, the country requires a staggering investment of 2.5 lakh crore in national transmission infrastructure.
The government is backing this up with unprecedented fiscal support. The Union Budget recently announced a massive 2.99 lakh crore capital outbreak for the power sector, a staggering 39% increase over last year. This includes streamlined right away processes and strong incentives for high voltage intrastate strengthening schem. Also this is our home tub. Our historical dominance in EHV substations and particularly in 400 and 765 KV. Statcom Solutions, GIS and AIs solutions and Technologies positions us as a primary beneficiaries of these buildings. Second super cycle is of the data center exposure. Simultaneously India is witnessing a digital explosion.
According to industry reports From CBRE and JLL, operational data center capacity has already crossed 1.2 gigawatt. With utilization rate hovering around 80%. The demand is shifting rapidly from basic storage to high density AI light computer. In the budget 2026 magically has introduced a tax holiday on qualifying foreign cloud income until 2047 which now has been clarified to be available for domestic players as well where global workloads are served from India based data centers via Indian REIS energy sources structures. This materially reduces permanent establishment risk for hyperscalers and is expected to accelerate the shift of long term compute to India, expanding demand for Indian owned platforms like ours.
Techno Electric sits exactly at the intersection of these two cycles. You cannot have AI without power. You cannot have a stable grid without digital intelligence. Financial Performance by Report Card let’s translate this strategy into numbers. I am proud to report that Q3 financial year 26 has been a period of resilience growth and operational normalization. And our year to date numbers are best in our history so far. I am pleased to share that in the nine months ending December 2025 we have already delivered a revenue of 2,200 crore which is nearly equivalent to the last year’s top line.
This brings us very close to a full year revenue of 25 revenue. Reflecting the strong momentum in our business and the consistent execution by our teams, we have achieved a robust 26% year on year growth in revenue blocking 857 crore for the quarter. This validates the H3 execution network we have anticipated. More importantly, look at our profitability. The Q4 in addition will be a growth over the last year which will be as you know, is always the best among all the key quarters of a year. Our profit after tax grew by an impressive 45% to 151crore. The fact that profit growth is outpacing revenue growth determines significant operating leverage and productivity benefits in our model. Consequently, our EPS for the quarter stands at 30 rupees of 45% from 9 degrees last year. Yeah. Ma’, am, would you like to take up now?
Shivani Chandok — VP, Strategic Initiatives & IR
Thank you, sir. So, looking at our time month performance, our revenue strength is 2209 crores which is up to 39% from last year. Our core EBITDA has grown 40% to 315 crores. Our PAD has surged 49% to 373 crores and our EPS for the nine month period stands at 34.3. As you’ll notice that our core EBITDA margin normalized to 14.14% this quarter. I want to address this directly. This is not a slip, but it’s a systematic upgrade during the quarter by in the process of digitization we have rolled out our EPS Connect platform to institutional in institutionalized data accuracy across our projects, our initial operating expenditure associated with this deployment led to a marginal decline in EBITDA margin.
However, this strategic investment enables us to capture site level variables with 100% fidelity, eliminating reporting blind spots typical in APC operations and strengthening governance to manage out 10,000 plus crores of order book going forward. Our financial strength lies in the cash and liquid investments which stand at close to 1925 crores. This liquidity is our strategic edge as it provides us with the flexibility to fund our investment plan in digital infrastructure without diluting our equity or taking high cost debt.
P.P. Gupta — Managing Director & Chairman
Yeah, Ma’, am. Let me take over now.
Shivani Chandok — VP, Strategic Initiatives & IR
Yes, sir.
P.P. Gupta — Managing Director & Chairman
Coming to strategic pillars now, the data center growth engine which you all know now let’s deep dive into our growth engine Starting with data centers this is where the true vpivuting story begins. We are not just building shells, we are building AI ready high density ecosystems. Our strategy is a dual prolonged hyperscalers plus edge, our first hyperscale project in Chennai. The flagship facility with a total planned capacity of 36 megawatt continues to be a key milestone in our growth journey. I am pleased to share that the Phase 1 with 6 megawatt capacity has been fully operationally ready since September 25th.
This facility is delivering an industry leading PUE of 1.3 and better reflecting our strong focus on operational efficiency and sustainability. Based on the current demand, visibility and decent budget announcement supporting digital infrastructure, our discussions with both global and domestic cloud operators have accelerated meaningfully. We expect phase one to be fully utilized by the first half of the first financial year 27. With increasing interest from hyperscalers, we are optimistic about commencing new strategic business relationships during financial year 27. In line with this demand momentum, we are initiating construction of the next phase at Chennai in financial year.
In the coming financial year beyond Chennai, we are moving fast. In Noida, construction is progressing at full pace. We expect the first 500 kilowatt or half a megawatt to become operational by March this year followed by an additional 5 megawatt getting ready by March 27. In Kolkata we have commenced construction of a 16 megawatt facility spread across a 4 acre plot within a prime data center cluster called Silicon Valley. Phase one commissioning is targeted during 2027 late late 2027 given we are power engineers, we use our in house EPC expertise to build these centers in shortest time with significant cost saving and faster time to adapt markets.
Second, the EDGE network. This is our unique differentiator. We have a 20 year revenue sharing partnership with Hilton to deploy 100 plus data centers edge data centers across India. The Guruva facility is already live and fully occupied. Mumbai goes live by end of this month and will be occupied before close of this year. The economics here are compelling. Where they are utilizing about 60% of the capacity we monetize the rest. But here is the key metric in these Edge facilities is better and we are selling managed cloud services not just space. We have already onboarded our first cloud customer and the response is extremely encouraging.
While financial 26 year revenue will be very modest due to initial migration timelines, we are at an inflection point. We are working hard to ensure that in financial 27 we must achieve 100 crore plus revenue as a top line. But look at the quality of the revenue. The revenues come with 50% to 60% EBITDA margins, nearly 4x of our EPC margins. This is the quality of earning shift we are driving. The next pillar is smart metering and annuity income. Our second digital pillar is Smart Meter ami. The segment transforms us from a contractor to a service provider.
We hold a massive automatic book of 2.24 million meters and out of the value that 2612 crores under the RDSS scheme. Having already deployed 2.5 lakh meters under PMDB scheme as of December we have executed approximately 50% of this order book and we are targeting the completion of the indoor and Ranchi indoor facility by March end and ranchi projects by June 26. The Kashmir and Tibra project will be completed by December 26. However, I want to highlight a strategic shift here. We are seeing margin pressures in some new ventures in this space. As of now we are keenly watching them and we have adopted a profit over volume strategy as this one.
We are becoming selective. We will not be chasing every opportunity but the right ones to continue to be giving a stronger bottom line. The long term value here is an annuity model. Once installed, these projects shift to an O and M phase providing steady predictable cash flows that will have balanced the lumpiness of our traditional EPC business, the conventional business and our cash cow as of today is the EPC in power sector. While we reach further digital sky, our feet are firmly planted on our EPC bedrock. This business generates the cash that funds our transformation.
As of December 31, 2025 was ordered to stands at 10,200 crores. Between April 25 and February 26 we secured a order book of roughly about 2,500 crores in new confirmed orders and we are additionally placed L1 in tender worth another 750 crores. This position us well to achieve our target of 3,000 crores in New honours during the current financial year. Our fundamentals remain strong. We are not a commodity player. We focus on compliance high altitude high voltage projects challenging opportunities in EHV segments of 765 or 400kV categories. We award and low margin transmission line businesses.
The technical entry barriers allows us to consistently deliver a beta margin of 13 to 15%. While industry peers struggle at single digestion. We are acutely aware that growth cannot come at the expense of stability. We have identified key risks and have active migration mitigation strategy in place. Client Consideration Historically we had top two clients but now we have more than five of them and we are also actively diluting this by Scaling up our data center and smart metering verticals. Diversifying our revenue base. Large scale digital projects face global supply constraints. Our mitigation is our legacy in this space.
We have 40 years of relationships with global OEMs like Schneider. What G Siemens. This gives us a supply priority over new entrants in data center. Technology moves fast. That’s why our new designs are Nvidia. We need to understand and build variables from day one. We are not retrofitting all designs. We are building on the future choice. So what is now? I’m talking of future outlook. So where are we heading? We 126. My guidance will continue to be on revenue of 3300 to 3400 crores. At the EPS of nearly 50. Around 50 rupees. In brief, I would like to say that Dakar Electric is at the most exciting juncture in its four decade history.
We have the technical expertise having built more than 50% of India’s grid. We have financial muscle. We just zero debt and 2600 in cash. the console level we have the digital strategies, planning data centers, cloud and smart meters. We have the market tailwind fueled by version 26 which are made data center structure and the power super cycle. We are not just observing the digital revolution. We are building the infrastructure that powers it. With this, I open the floor for any more clarifications.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. Participants who wish to remove themselves from the question queue 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 as from the line of Mohit Kumar from ICICI Security. Please go ahead.
Mohit Kumar
Yeah. Good afternoon sir. And thanks for the opportunity. My first question is what kind of revenue growth you expect in FY27 given the current order book and are you facing any execution challenges which can. Which can lead to some kind of downward Division? In our EPS guidance of 75 rupees in F27.
P.P. Gupta
As of now, we are not anticipating any challenges then. Mostly every opportunity becomes a challenge by virtue of delayed availability of land parcels from the asset owners. But other than that we generally don’t see any any challenge.
Mohit Kumar
Understood. So I’m maintaining the guidance of 75 bucks in in F27. Is that correct, sir?
P.P. Gupta
Yeah. Yeah. Absolutely.
Mohit Kumar
My second question is. Sir, the order inflow has been subdued in last nine month compared to what we did in F24 and F25. Can you just talk about the order prospect in transmission for F27? How do you think about the F27 in terms of the order inflow?
P.P. Gupta
Mohit, this is a little double edged question. To my mind there is ample opportunities in the market. But we are becoming more choosy till we build up our ability to deliver more in the sector. We are a man based industry. You can see in three years what we used to deliver in a year has become a quarterly output. So that is the kind of growth we have seen in last three years. Sustaining this level of growth often can be prejudicial at times. So we believe in discipline and continuity of performance. So we will like to limit our order intake and not and learn to say no to many orders unless they are juicy and bottom line accretive. So there is no debt for business in this marketplace given the business profile. But we will not like to book more than three to three and half thousand crores going forward. But till such time my top line grows to 5,000 crore and beyond.
Mohit Kumar
Understood. My last question sir, how much. How much you invested in the smart meter and TVCB till date?
P.P. Gupta
Yeah, in smart meters we have already invested about thousand crs you can take and in TBCB our investment is about 500cr.
Mohit Kumar
Understood sir. Thank you and all the best. Thank you.
operator
Thank you. The next question is on the line of Ravi Naredi from Naredi Investments. Please go ahead. There is a lot of disturbance from your.
Ravi Naredi
Sorry. Sorry. Sorry sorry. Now you won’t get any disturbance sir. It is a really. I can say fantastic result so far sir. How much data outstanding since low long in our books like the Bengal Energy limited and this Afghanistan project. How can we say how much is.
P.P. Gupta
We are very little in amount and all energy is a very legacy issue of where they did not pay our retention money of 15cr only and arbitration is going on. I think any day we will get the what in Afghanistan. It is much much advanced. Now our total outstandings of 8 million plus have been certified by D&42UN for payment we just in Q1 we should this money.
Ravi Naredi
Okay, okay. And sir, please tell some detailed commentary about data center how our Chennai is working. How is the top line and bottom line of Chennai?
P.P. Gupta
It’s a bit early to talk Mr. Daddy it is still working progress if you archm demands more hard work and I think it is still this market of data centers is very different than power sector. So I think we’ll be more in a position to speak on it by September 26th.
Ravi Naredi
September 26th it is. It will be fully gearing up, right?
P.P. Gupta
Yeah. We have a lot more clarity to say clearly that this is how it will plan out. But I’m very sure on one thing. If you ask me by 2829 data center will digital infra will become the face of the company. It will be other way around.
Ravi Naredi
Okay. And some some data center we are planning with rental also.
P.P. Gupta
Yeah, absolutely. Noida is with real time edge data centers are always.
Ravi Naredi
Okay. Thank you. Thank you. All the best.
operator
Thank you very much. The next question is from the line of Shri Gandhi from CR Kotari and so on Stock broking. Please go ahead.
Shrey Gandhi
Thank you for the opportunity. My question is regarding the data center segment. So how much capex are we planning for the next year for Chennai, Kolkata and Mo? If you can give a brief stage wise.
P.P. Gupta
Yeah. Our Planning is around 500 to 600 crs in data centers in 2627.
Shrey Gandhi
Can you give a brief like how much in Chennai in Kolkata and Noida in phase one and phase two.
P.P. Gupta
Okay. As Chennai is concerned is a part of the audited accounts in the March and you will see we have spent by now about 550 cross and maybe another 50cr more if required to suit to build to some applicants, some entities, some hyperscalers requirements and additionally I am giving these budgets was 2627 April to March 27th. That will be another about 600cr in Noida and and also maybe three to four Edge data centers.
Shrey Gandhi
Okay. How are we planning to depreciate the data center? What is our policy regarding that?
P.P. Gupta
There is no policy as of now. We like to hold on it and build on it as I’ve already stated in my submissions.
Shrey Gandhi
Okay. And how is the customer onboarding going right now in Chennai? Have you acquired any major customer? To be clear.
P.P. Gupta
We are in a silent period with some hyperscaler. We cannot announce. But discussions are going on with many more. If there is a very active interest I can share that with you.
Shrey Gandhi
Okay. And my last question is how are we saving seeing the opportunity? It’s Google has announced that they are setting up a data center. So how are you seeing RPA option?
P.P. Gupta
Can you repeat your question?
Shrey Gandhi
Are we looking at the opportunity of the data center segment in which The Google has announced 1 billion investment in Vishakha Patnam? How are you looking at?
P.P. Gupta
Yeah, we won’t be interested in doing any APC for Google. But if they need any data center as a suit to build we will be very keen to Be part of that and we are talking to them but anyway they will need lot of power infra behind it.
Shrey Gandhi
Okay, thank you. That’s all from my side.
operator
Thank you. The next question is on the line of anmol Mittal from SMC Private Wealth. Please go ahead.
Anmol Mittal
Good afternoon sir. Thank you for the opportunity. My first question is regarding the community given guidance often focus on standalone performance. Could you please explain why standalone is preferred metric for tracking business health and whether consolidated number will be became more relevant going forward.
P.P. Gupta
My mind both are relevant here but it depends on the investor which one he wants to rely more because control also inbits the future Whereas standalone is of the very period of the entity as a holdco as a face of the entity.
Anmol Mittal
Okay sir, can you provide Q4 FY 2026 guidance on revenue and batch separately for standalone as well as consolidated operation. What are the key assumptions behind the guidance?
P.P. Gupta
I. I thought I have already shared with you. I said Q4 will be upside over the last year and our target is to achieve three 400cr around and EPS of 50 rupees as a standalone. Okay sir.
Anmol Mittal
And on the other income part it is a meaningful contribut to overall profitability. So could you please share a future outlook on how much other income can we take in next quarter or in your next year also you can take.
P.P. Gupta
The same amount year on year. It is well managed. Treasury with us, very skilled. You can take around 150cr for year. 150.
Anmol Mittal
Yeah. Okay sir, thank you.
operator
Thank you very much. The next question is on the line of Shreyan Gatani from SG Securities. Please go ahead.
Shreyan Gatani
Good afternoon sir. I had a question on the data center strategy. So just trying to understand are we, you know, in the future looking to, you know, dispose of these assets like you know, we did for the power transmission assets. Maybe, you know, give it or lease it out. Otherwise it’s like a big capex. Capex heavy business where we probably, you know, need to raise money. So how are you looking at that strategy?
P.P. Gupta
Can you repeat your question? I think your question is little confusing.
Shreyan Gatani
No, so what. What I meant is like once you have your data center ready and leased out, are you looking to, you know, give, sell it? You know, how we did for the transmission assets where we get the higher return and then you know, we sell it out to, you know, some infrastructure trust or something like that?
P.P. Gupta
Not for next two, three years. As of now, we first want to build the scale as a platform and we may look for investors at the platform level and not exit the asset like transmissions.
Shreyan Gatani
Got it. Okay, so what kind of capex are you looking at, you know, in the next, you know, three to five years? In this segment then.
P.P. Gupta
We have stated our outlook that we are looking for a capex in data centers of no less than 5,000 cr over next by 2030.
Shreyan Gatani
Okay. Okay. So and you previously you have mentioned that the margins would be around 70 to 80%. This call you said it’s around 60%. So I don’t know if I if those are comparable or I’m looking at understanding differently.
P.P. Gupta
No, you look these margins.
Ankit Saraiya
Let me answer that. So basically you see when we talk about a margin of 70 odd percent, we talk about in a situation where the data center is getting purely leased out or only on a purely model. But when we start building services on top of the data center, such as bare metal services or cloud services, it ends up improving the top line. But obviously it also impacts the ebitda though the absolute number in EBITDA and top line improves, the margin levels are not the same comparable to a pure play co location lease.
Shreyan Gatani
Oh, I see. So we are not providing racks as such. We are providing additional services. If you could elaborate on that. That is not something that.
Ankit Saraiya
Yes, so we are building on additional services. Today we target to generate at least 20 to 30% of your revenue out of additional services, while 70 to 80% might come out of your claypool location.
Shreyan Gatani
Got it, got it. That’s good to know.
Ankit Saraiya
And I think in the beginning of the call during the introduction phase, we also mentioned that we have already onboarded our first customer for bare metal services and we have also onboarded our first customer for cloud services.
Shreyan Gatani
Got it. And when would the rest, you know, how long would it take to operationalize the entire 36 megawatt in Chennai? Would it be as and when you get customers or is it going to be like, you know, one shot kind of expansion?
Ankit Saraiya
So it will largely depend on how we are, how smoothly and how fast we are able to acquire customers. We will not be expanding speculatively, but given the way industry is evolving and rapidly evolving, I believe that we should be commissioning the entire capacity and maybe more within the next two and a half, three years. We might just be required to expand our Chennai project beyond what we initially envisaged.
Shreyan Gatani
Okay, so we have capacity there to like additional capacity that we can expand to.
Ankit Saraiya
Yeah, so the project can actually be expanded up to at least 45 megawatts, whereas we have currently executed somewhere around 34 to 36 as of now.
Shreyan Gatani
Okay, got it. All right, that’s good to know. That’s all from my end. That’s very helpful.
operator
Thank you very much. The next question is on the line of Prasanth Gopal from Spark Asia. Mark Impact managers private limit. Please go ahead.
Prasanth Gopal
Sir. Can you provide approximate per megawatt cost for your data centers? Now.
Ankit Saraiya
Assume around 40cr safely. Okay, that helps.
Prasanth Gopal
Thanks.
operator
Thank you. The next question is from the line of Gaurav Shukula from Fine Vistas. Please go ahead.
Gaurav Shukla
I’m audible.
P.P. Gupta
Yeah.
Gaurav Shukla
Congratulations sir for good set of numbers. And thank you for giving me opportunity. Sir. When we see the result in standalone mode and consolidated depreciation is different standalone 2 cover and in consolidated 9 crore. Please explain this, sir.
P.P. Gupta
Yeah, that ought to be different here. Because in standalone is a EPC piece and we don’t own many heavy value equipment. We are mostly rented out for the purpose of construction. But when you console the assets deployed or owned by Those subsidiaries or SPVs they had to have a impact of the depreciation of the equipments. So obviously in a console mode the depreciation will always be higher and growing more going forward.
Gaurav Shukla
Enter your guidance which you have given for 50 EPS. That is consolidated mode or standalone.
P.P. Gupta
I have given on standalone mode but console will also not be very different. You know you can it will be within plus minus 5% only.
Gaurav Shukla
Yes, that is why the seven curve. Difference is made made in pat also. Okay, thank you sir. Thank you.
operator
Thank you very much. The next question is on the line of Kripa Desai from Electrum pms. Please go ahead.
Gaurav Shukla
Hello, am I audible?
P.P. Gupta
Yeah,
Krupa Desai
hi sir. I’m actually new to the company so some basic questions. So my first question was on smart meters. Since smart meters we are saying that we are more than 2000 crores of order book where we would be installed in more than 2 million meters. So sir, here how much capex we would be doing per meter, how much revenue we are generating and what are the EBITDA margins here? That was my first question.
P.P. Gupta
You have more questions for your this question only?
Krupa Desai
No, there are more questions too. But on smart meters this was the question.
P.P. Gupta
Ma’, am, the question is little tricky. I think you need to see the whole value chain of it. You know when the concession is given to us by the customer it is always a on a per month per meter basis with some grant inbuilt into the concession. And now this is also inclusive of GST also. So it’s bit difficult to compute per se. But whatever concessions we have got with us you can Easily say that our margin, beta margin will be around, you can say 20% but we are not recognizing in the books again you know that is a difficulty because they 18 months a lot of time discounting because they happen over 10 years and 94 months.
So there are lot of computations involved in terms of the time value, in terms of the taxis, in terms of the back to back arrangements with the people providing the services to us. Sometimes they are upfront and sometimes they are also staggered on month, on month basis. So different business models are deployed in it. But overall I can say we are in a good shape in this space like transmission we’ll be exiting on profit only if we decide.
Krupa Desai
Okay, so it would be difficult to give capex per meter?
P.P. Gupta
No, there’s no difficulty ma’ am but there can be different modes of computing it and the numbers can again change.
Krupa Desai
Okay, and sir, how much capex we would be doing going ahead in this space? We have already done some thousand clause you said so going ahead we would do more capex in this space.
P.P. Gupta
Smart meters we have to complete our. Assignment of 2.24 million meters and definitely our total CapEx will be around 1500 cr.
Krupa Desai
Okay.
P.P. Gupta
Yeah.
Krupa Desai
Yeah and so my next question was on the data center. So you said the per megawatt cost. Cost is around cross. How much revenue can we generate per megawatt?
Ankit Saraiya
You can take a revenue if you’re doing a pure co location you may take a revenue of about I would say 8 odd cr and the moment we, but moment we bring in bare metal services and cloud services it is three times.
Krupa Desai
Okay, okay. Those were the two questions for now. Yeah, thank you for answering my questions.
operator
Thank you ma’. Am. The next question is on the line of Ashish Soni from family office. Please go ahead.
Ashish Soni
This brand new data center policy, do you think you will want to expand more into data center against your stated goal of 250 megawatts by I think 2030?
Ankit Saraiya
I think we need to firstly see the impact of the announced policy. It sounds very motivating and very encouraging to the industry and especially global players who were refraining if at all because of taxation inequalities. But if it truly makes a difference we will surely expand beyond what we have what we planned when we entered the industry in 21. And as we speak we are seeing good interest from large scale data center users whether it is hyperscalers or neo cloud into the Indian market and they’re looking at capacities of very very large size. So yeah, it is quite possible that very soon we will. We might have to revise our entire plan and hopefully so.
Ashish Soni
And just another question on this Google setting up 1 giga gigawatt in I think Vizag. So what sort of services if at all you want to do for other customers like that will you be from your gamut of services you’d like to do and which is not you want? I think some clarity was given by Gupta sir, but I didn’t understand what we plan to play there or what we don’t want to play in this space for other customers.
Ankit Saraiya
We want to remain to participate in this industry as a developer, as an operator and going forward as a managed service provider and a network service provider. These are the four products and services that we want to keep providing. Within that there are many products and services but these are the four verticals. And that’s the reason, you know, in our entire discussion we try to keep EPC out of the content of the discussion itself because we want to limit to be a developer today while having said that because when large scale data centers of gigawatt capacity or even half a gigawatt capacity comes up, there is a larger requirement for power infrastructure. And if we are playing as a power infrastructure provider over there, we can look at providing our conventional or traditional business services like epc. But when it comes to data person data center itself, these are the four buckets I would put it.
Ashish Soni
And in next two, three years, what’s the mix in terms of business you are anticipating right now in data center and your core business? Maybe including Smart meter in the core?
Ankit Saraiya
I didn’t get your question. Could you repeat in what terms?
Ashish Soni
Okay, in terms of a percentage of revenue or the profitability in two, three years where do you see data center like mixed by 30%, 40% sort of thing compared to our core services including smart bid? We can say.
Ankit Saraiya
So you see data centers are data center balance sheet will look very different than what we have in EPC because profit margins are different. Top lines are quite different. They are not very heavy on top line but they give good EBITDA margins. The pad gets subdued because of depreciation, but it’s always positive cash flow. Therefore the, therefore the contribution towards the total balance sheet from data centers might look different at different line items. But I would be confident to say that within two, three years of time we should be able to target, we should target a top line from data centers of close to around. Maybe around 400 odd crores, maybe 300 to 400 crores.
Ashish Soni
And can you elaborate on this? Network services you Spoke about the service for data center. What exactly do you want to do there?
Ankit Saraiya
Yeah, so we have recently been awarded a license. We actually succeeded in getting a license from Department of Telecom to provide network services within the city of Chennai. And what it helps us to do is aggregate bandwidth into our data centers and sell that bandwidth to the end customer who’s leasing DAX or end services within those data centers from us. So this becomes an additional set of revenue for us apart from what traditionally data center brings. And it’s a good achievement because getting a license is also a procedure. It requires you to achieve certain qualifications and we’ve been able to break through that and we’ve finally got the license and. And we’ll be starting generating revenue out of network services though very very small but from this quarter itself.
Ashish Soni
But that will be only for Chennai. Or do you think it will be expanded to wherever you’re going to operate?
Ankit Saraiya
We will expand it. We will expand it. We will expand the license itself that is under planning. But we are starting with Chennai because that is the commission capacity today with us.
Ashish Soni
And how much margins there? Or is this add on service you are thinking right now?
Ankit Saraiya
So we can expect a margin of around 40 to 50% from network services.
Ashish Soni
But it will be like minuscule portion of your data center revenues or if you want right. Overall revenue wise
Ankit Saraiya
it may not be. A significant portion but it will have a significant contribution to EBITDA of the data center.
Ashish Soni
Thanks and all the rest.
Ankit Saraiya
Thank you.
operator
Thank you ladies and gentlemen. To ensure the management can answer questions from all the participants please limit your questions to one per participant. The next question is on the line of Jainice Chera from Kempfin family office. Please go ahead.
Janice Chera
Good afternoon sir. So my question is with regards to smart meters I just wanted to understand that you said you have done a capex of thousand crores and there’s 1500 capex. So there’s incremental 500 or incremental 1500 crores capex to be done in smart meters.
P.P. Gupta
No, no, no. We said total is 1500 and out of that thousand is committed already. That is what we are talking and that will be the number by the group may be close of the year also.
Janice Chera
Okay, and how do we follow the.
P.P. Gupta
It is nothing quarter specific. I must make it clear.
Janice Chera
Right? I understand that but in terms of accounting, how are we following the accounting? But as you said you are getting it per meter basis and then capex it’s not the part of your fixed assets I assume I. I see from the annual report. So how Are you for the accounting in terms of revenue capex as well as expansion out the entire thing.
P.P. Gupta
There are separate SPVs for each concession and they are doing their own accounting, which becomes part of the consortium.
Janice Chera
No, but the amount you get while installing the smart meter, you show it in your revenue or you are still capitalizing the entire thing.
P.P. Gupta
The cost of deployment becomes part of the revenue for a EPC company and it is capitalized in the SVB per se. And then HPV generates its own revenue as a grant and on PMPM basis as as eligible.
Janice Chera
So for the testing would be depreciating the meter over the period of 10 years, right?
P.P. Gupta
Yeah. Actually in this case I don’t think depreciation is required. Basically it is amortized. You can say.
Janice Chera
Okay, so eventually in the consolidated balance sheet this number should be done a capitalized capex of thousand crores. Work in progress. Of thousand crores. Either of the two, it should be there in the consolidated balance sheet, right?
P.P. Gupta
Yeah, it will come. But when only they go live? Like I said, one concession go live in March. One goes live in July. June, July and rest two will happen in December. You are right. When they get go live, it will happen like that. Till then it is is a kind of a in deployment mode.
Janice Chera
Okay. So revenue will start flowing once it goes live. So even in the top line on the console basis, there won’t be any revenue. As of now.
P.P. Gupta
Again, this is the dubiousness in our government policies. Government start using even a say I have to deploy in a given concession half a million meter. But even if I have defined employed say 50,000 meter the revenue starts there. But definitely the whole scheme is not complete those contractual obligation stats. So as a conservative approach is to capitalize them when whole deployment happens and go live certificate is obtained from the customers. But. But revenue happens on system acceptance test. We call sat.
Janice Chera
Okay, so how many are expected to be deployed in March? Number of meters
P.P. Gupta
in March it should. Be about 1.4 billion.
Janice Chera
1.4 million in March. Okay,
P.P. Gupta
up to March.
Janice Chera
Up to March and total it’s 2.5 million, right?
P.P. Gupta
2 point. No, 2.24 billion 2.2. And in the previous there is amendment to it. You know, customers also seeing the progress can and ask the requirement by 25% that is a part of the contract.
Janice Chera
Okay. And by 25 we are saying we want to target up to 5 million in by 2031. In the previous calls, right? Just confirming that.
P.P. Gupta
No, no, no. We have never set a target on ami to be 5 million or so. We’ll continue to scout for good opportunities. If we find it rewarding, we may do 5 million or maybe more. But as of now, the government is more keen to deploy whatever stands ordered. And very few new tenders are happening in this space as of today because the performance of the industry is not very good. Probably techno is the best where we have deployed more than 50% of the concessions backed by us. Others performance is only ranging from 15 to 25%.
Janice Chera
Okay, thank you so much. That was helpful.
operator
Thank you very much. Ladies and gentlemen, due to time constraint. That was the last question. I would now hand the conference over to the management for the closing comments.
P.P. Gupta
Yeah, I would once again like to. Just a mere accident. I would like to thank you for your continued trust and partnership and I was really delighted for insight questions being sought by all of you. I am now happy to say that you are welcome to visit us whenever you are this side of the country, either to our Gurgaon office or to Kolkata. And we will be happy to address any other questions you have for our ongoing work. Please email us if you need any more details.
operator
Thank you very much, sir. On behalf of Asian Market Securities Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.