Welspun Enterprises Limited (NSE: WELENT) Q1 2026 Earnings Call dated Aug. 07, 2025
Corporate Participants:
Unidentified Speaker
Salil Bawa — Investor Relations
Sandeep Garg — Managing Director
Saurin Patel — Managing Director – Welspun Michigan Engineers
Abhishek Chaudhary — Chief Executive Officer
Lalit Jain — Chief Financial Officer
Lalit Jain — Chief Financial Officer
Lalit Jain — Chief Financial Officer
Lalit Jain — Chief Financial Officer
Lalit Jain — Chief Financial Officer
Lalit Jain — Chief Financial Officer
Analysts:
Unidentified Participant
Vaibhav Shah — Analyst
Koustubh Shaha — Analyst
Dheeraj Ram — Analyst
Shailesh Raja — Analyst
Parth Thakkar — Analyst
Raman KV — Analyst
Vishal Periwal — Analyst
Sarvesh Gupta — Analyst
Bhavik Shah — Analyst
Riddhesh Gandhi — Analyst
Presentation:
operator
Ladies and gentlemen, thank you for patiently holding. The conference is expected start shortly. Please continue to hold. Ladies and gentlemen, thank you for patiently holding. The conference is expected to start shortly. Please continue to hold. Ladies and gentlemen, good day and welcome to the Wellspurn Enterprises Q1 FY26 earnings 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 the conference call please. 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. Vaibhav Shah from JM Financial. Thank you. And over to you sir.
Vaibhav Shah — Analyst
Thank you Vish. On behalf of GM Financial, I welcome everybody to Q1FY26 earnings conference call of Wellspring Enterprises Limited. I will now hand over the call to Mr. Salil Bawa Group Head Investor Relations of Wellspan World. Over to you sir.
Salil Bawa — Investor Relations
Thank you Vaibhav and good afternoon to all of you. On behalf of Wellspun Enterprises Limited, I welcome each one of you to the company’s Q1 FY2026 earnings call. Along with me today I have Mr. Sandeep Garg, Managing Director and CEO Mr. Sorin Patel, Managing Director for Wellspurn Michigan Engineers Ltd. Mr. Abhishek Chaudhary, Chief Executive Officer, Wellspurn Enterprises and our CFO Mr. Lalit Jain. I have also Sangeeta Tripathi who leads Investor relations for wellspurn Enterprises. We hope you have had a chance to review the investor presentation that we filed with the exchanges yesterday. The presentation is also uploaded on the company’s website.
During today’s discussion we’ll be making references to this presentation. Hence would request you to take a moment to review the safe harbor statement in the presentation. As usual, we’ll start the forum with the opening remarks from the leadership team and then we’ll open the floor for Q and A once the call gets over. Should you have any further queries, please feel free to connect with anyone of us. With that, I would now like to hand over the floor to Mr. Sandeep Gar, Managing Director, Wellspun Enterprise Limited. Over to you, Mr. Gar.
Sandeep Garg — Managing Director
Thank you, Sunil. Good afternoon everyone. I am pleased to welcome you to the Wellspun Enterprises Q1 FY26 results conference call. I thank you all for being present today in Q1FY26. Our consolidated revenue declined by 9% year on year. This was expected. I would want to reference to my earlier guidance for the FY26 wherein I had mentioned that around 40% of our targeted revenue will come in H1 of this year, unlike previous years where our revenue was more evenly distributed amongst both halves. The early onset of monsoon has also impacted our revenue this year and we have lost approximately 10 days on our road projects.
This led to fewer operational days and consequently impacted our revenue. Mr. Lalit Jain, our CFO will share some more details on this in the call later. Despite this, our margins expanded and The EBITDA grew by 8% year on year from Rupees 193 crores in Q1FY25 to Rupees 208 crores, underscoring our continued focus on operational efficiency and margin reduction resilience. Our subsidiary Western Michigan Enterprises limited Or WMEL began the year with a healthy performance reporting revenue of Rupees 208 crores up 45% year on year. Mr. Sarain Patel, Managing Director of WML and CEO Water Vertical will provide further insights on both WMEL and our water segment shortly as on 30th of June 2025.
Our standalone order book stands at rupees 11,960 crores. I correct myself 11,962 crores while our subsidiary WMEL holds an order book of rupees 2,805 crores bringing the consolidated order book to rupees 13,665 crore. It is important to clarify that WMEL order book includes rupees 1102 crores order related to DGT project which has been sourced from wel. Additionally, the consolidated order book also includes O and m contracts worth rupees 4400 crores. Further, we are actively pursuing new projects worth about 12,000 to 13,000 crores which are likely to be bid over the next 30 to 45 days.
We believe these opportunities will strengthen our growth visibility and execution pipeline. On the balance sheet front, we continue to maintain a strong financial position with consolidated cash reserves of Rupees 1068 crores. This provides us with significant flexibility to pursue our growth opportunities while maintaining financial discipline. Mr. Lalit Jain, our CFO will walk you through the financials in greater detail. Coming to our road project updates. As. Expected and shared during our Q4 earning. Calls. I am pleased to confirm that we have received the provisional completion certificate PCOD for the landmark Antashemeria Bridge project. To reiterate its significance, this is India’s widest extra dose cable stay bridge spanning 1.8 kilometers over the Ganga with a 34 meter wide deck. This connects Patna to Begusarai and is expected to reduce the travel time by over an hour. This project truly exemplifies engineering excellence and innovation. As stated earlier, we will attempt to monetize this project during the fiscal year. In addition, our Mukarba Chowk Panipat or MCP project has received its completion certificate. In line with our agreement with actis, we will now move forward with the transfer of our remaining 51% stake after completion of necessary formalities.
Varanasi or Ahmedabad Road Project the project is advancing steadily and would be completed by this calendar year. I stand corrected by this financial year. SNRP Project the project has achieved about 70% physical progress and is on track to receive the provisional completion certificate in this calendar year. Coming to Oil and Gas as informed last year last time, we have signed an agreement for the block C37 adjacent to our existing assets. We are currently progressing on evacuation discussions with ONGC and DGH and once finalized we will announce our strategy for further development. I am happy to share that our commitment to excellence continues to be recognized.
Our Varanasi Aanga Road project won the Gold Award for Road Safety excellence at the 2025 OHSE Excellence Awards. Our Supply Chain team won the People’s Choice award at Alden Global’s supply chain and logistics award. Chosen from over 200 entries. Westbourne Enterprises was named Maharashtra’s state’s best employer brand at the 20th Employer Branding Awards. Highlighting our strong HR businesses, business alignments and People first approach. These recognitions reaffirm the direction we are taking and the talent we we have across the organization. As mentioned earlier, FY26 will see a back ended execution cycle. Projects such as Bhandu Water Treatment Plant and Dharavi Ghatkopa Tunnel have moved past the pre implementation stage and will now be under execution post monsoon.
We thus expect execution momentum to accelerate in Q3 and Q4 of FY26. I want to reaffirm that we are well positioned for long term value creation and expect our FY26 revenue to grow to Rupees 4000 to 4000 crores at consolidated level. With a sharp focus on high return segments, disciplined execution and strength of robust order book, we remain confident in our ability to drive sustainable growth and deliver meaningful value to all our stakeholders. Further, I would like to take this opportunity to mention that our CEO Mr. Abhishek Chaudhary will be addressing you later in the call to discuss our strategic priorities and approach to operational excellence.
Thank you once again for your time and support. I’ll now hand over this call to Mr. Soren Patel for his remarks.
Saurin Patel — Managing Director – Welspun Michigan Engineers
Thank you Sandeep and good morning to everyone. I appreciate your interest in the company and I’m pleased to present key updates from our Water Vertical. Along with our strategic outlook, wellspun Enterprises is strategically strengthening its position as a specialized engineering solutions provider in the water infrastructure sector. An underserved market with substantial growth potential. We aim to focus on expanding ourselves into complex high value segments such as tunneling, wastewater treatment and large scale water delivery systems. These areas present strong demand and attractive opportunities for market leadership driven by accelerating urbanization and increasing environmental priorities. The factors that underpin our confidence in delivering sustainable returns.
Now let me briefly take you all on our project updates in the Water Vertical the Dharavi Wastewater Treatment Facility this flagship project is progressing on track. Our sequencing batch reactor sbr, all the RCC works will be finalized by quarter two. The Blow Building RCC works are ongoing and are expected to be completed by August 2025. Excavation for the IPS and sludge areas is progressing well. We soon look forward to inviting you for a site visit to witness this progress firsthand. The Banduk Water Treatment Facility I’m pleased to announce that all critical clearances for the Bandu project have been secured.
The project will start in Full swing in Quarter 3 FY26. Excavation work in the inlet, active flow and EMF areas is currently underway. The Uttar Pradesh Jal Jeevan Mission we remain on track for project completion. The works are progressing smoothly and once commissioned, the initiative will positively impact nearly 2,500 villages, delivering a substantial social benefit alongside economic value. SmartOps a transformational water taker venture Turning to SmartOps, our technology driven joint venture in the water treatment area, SmartOps offers a modular, scalable and cost effective platform to rejuvenate and recycle contaminated water bodies including urban drains and ponds.
We have successfully completed two projects in FY26 including a 285 million liter cleaning and treatment project at Digala Pukuri in Guwahati in Assam and Durga Kund Rejuvenation in Kashi, uttar Pradesh of 112 million liter water body. Recognizing the nationwide potential, we have institutionalized SmartOps as a separate company. For the. Dharavi Ghat Kopar Tunnel project. We are working on securing pre project clearances and expecting to start the shaft work at the Daravi outlet in Quarter 3 FY26. Wellspun Michigan Enterprises Limited our subsidiary WMEL continues to exhibit strong momentum in Quarter 1 FY26 WMEL reported revenues of 208 crore reflecting a 45% year on year growth with an EBITDA margin of 21.8% as of June 30, 2025, WMEL’s order book stands at 2,805 crores, delivering a robust book to bill ratio of approximately 3x and strong revenue visibility over the coming quarters. We are of course targeting several opportunities across various segments and are hopeful to convert this into a robust additional order book during the current financial year.
We remain deeply committed to scaling our water infrastructure business, leveraging our expanding capabilities, early project execution successes and strong financial performance. Our strategic combination of engineering expertise, technological innovation and disciplined project management positions positions us well to create sustainable long term value in this critical sector. I Now invite our CEO Mr. Abhishek Choudhary to take you through our strategic priorities and approach to operational excellence. Over to you Abhishek.
Abhishek Chaudhary — Chief Executive Officer
Thank you. Sorry Good afternoon everyone and thank you for joining us. Today we are at a pivotal movement in our journey where strategy, innovation and sustainability comes together to create a long term value. Today I’ll share with you all how we are driving growth, strengthening operations, embracing digitalization, building a future ready organization and embedding ESG principles into everything we do. These are not just initiatives, they reflect our commitment to consistent results, market leadership and responsible business digitalization. Adoption of tools like 3D, 4D, 5D and S4hana digitalization of the entire project management dashboard, process optimizations, real time data analytics, redefining our supply chain processes, integration of E governance which will further improve our control and bring in operational efficiencies.
Further, by aligning our functional support with the business needs and through continuous process optimization and effective performance management we are improving our efficiencies. We are also building the organization for the future. Our people and culture are central to our long term success. We are investing in leadership development, reskilling and fostering a culture based on wilspur light values which is learning, innovation, trust, endurance. We are nurturing young talent from top institutes and also partnering with them for exploring research and development opportunities esg, environment, social and governance. We are driving social impact through initiatives like decarbonization through clean mobility, alternative fuels, solar adoption, etc.
Last year we have reduced over 50,000 tonnes CO2 emission saving 1.7 lakh kilolitre of construction, water and recycling 9,000 metric ton of construction waste. We stand committed to our Chairman’s vision of 3G growth, green and governance for a sustainable and responsible growth while also prioritizing environmentally sustainable practices and strong corporate governance. With a clear strategic foresight, operational rigor, digital innovation and a future ready organization coupled with strong ESG principles, we are well positioned to deliver sustainable growth and long term value for our investors. Now I would like to hand it over to to Mr. Lalit Jain, CFO wel for taking you all through the financial results of Q1FY26.
Over to you Lalit.
Lalit Jain — Chief Financial Officer
Thank you Abhishek and good afternoon everyone. I appreciate your interest in our business and performance. I will now walk you through our Q1FY26 financial results followed by an overview of our Segment wise Performance Quarter 1 FY26 Consolidate Financial Performance Revenue from operations stood at Rs. 845 crore marking a 9% year on year decline. This was primarily due to three factors 1. Early onset of monsoon from May which curtailed execution by 10 days. 2. Current year guidance of back ended revenue gross with H1 H2 at 4060 ratio. This is driven by completion of two road project early in the year and further commencement of the key Water Project.
First monsoon in the H2 Reason 3 Absence of one time claim of Rupees 16 crore that had positively impacted revenue in Q1FY25 as per our guidelines for H1 was 40% of annual turnover. Top line should have been Rs. 840 crore for Q1FY26 whereas our top line is Rs. 845 crore. Despite early monsoon by 10 days due to this we lost turnover by Rs. 30 crore. By considering the same, our top line is higher by 6 to 7%. Against guidance, EBITDA margin improved to 23.8% compared to 20.1% in Q1 FY25, an expansion of 377 basis point year on year.
Despite the top line decline, EBITDA grew 8% year on year reaching 208 crore reflecting strong operating efficiency. Profit before tax was broadly stable at rupees 154 crore compared to Q1FY25. Now Q1FY26 standalone financial performance standalone revenue from operation is rupees 604 crore representing a 19% year on year decline. EBITDA for the year is Rs. 124 crore down by 4% year on year while margin improved by 289bps raising from 16.6% in Q1FY25 to 19.5% in Q1FY26. PBT stood at 117 crore reflecting at 2% year on year decline Balance sheet position Our balance sheet remains strong and resilient.
On a standalone basis, net worth stand at rupees 2776 crore and we continue to maintain a net cash position of rupees 988 crore on considerate basis, net worth is Rs. 2811cr with net debt of Rs. 378 crore now segmental performance Q1FY26 on considered basis segment wise revenue distributions transport 216 crore 37% share water 310 crore 37% share tunnelling and rehabilitation 218 crore 26% share the water segment registered robust 38% year on year growth whereas the transport Segment declined by 43% largely due to the completion of two major projects Mukrabacho project I.e. mCP and Anta Simaria project in the previous quarter while the tunneling and rehabilitation segment grew by 53% year on year basis.
The expansion in water margin reflect the improved quality of our project mix and our continued focus on cost optimization and execution efficiency. In summary, despite seasonal and bus related challenges, our performance demonstrates resilience and improving profitability. We remain well positioned to capitalize on future opportunities with a strong balance sheet, operational discipline healthy order mid Pipeline for future now we open the floor for question and answer. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 Kaustubh Shah from Walford pms. Please go ahead.
Koustubh Shaha
Hello, good afternoon everyone and thanks for the for the entire management for the detailed overview of various segments, my first question question was to Abhishek Abhishek, you mentioned about the digital initiatives and capability building. Can you throw some more light as to know what exactly this is going to help us and whether this initiative has already helped us in the Q1 in terms of margin improvements. If it can be detailed it will be more helpful to understand.
Abhishek Chaudhary
Sure Kaustubh on the digital initiative front, as I explained to you in my opening remarks we we have already implemented and migrated to S4HANA which is SAP4HANA. We have also digitized the entire project management system which is an in house developed system called well Darpan and the entire project review are now taking place on this and we have also developed a MIS tool. We are working on very path breaking initiatives like 3D, 4D, 5D building information memorandum system for our projects at Dharavi and Bhandu and wish to complete E governance in our working and use of AI tools for increasing operational efficiencies in the existing business segments.
And definitely because this is a journey which we have started and it has started contributing to margins and moving forward we will reap in more results.
Sandeep Garg
Just to add to what Abhishek said Sandeep Just to add to what Abhishek has said, the margin expansion that you see is also directly correlated to better utilization of the resources which was possible because of the real time information that we could get through the improved information systems and real time data which was available for decision making.
Koustubh Shaha
Okay, so can we assume that the margins will be around 2425% from year on on the EBITDA side?
Sandeep Garg
So the guidance you would not want to change because of various reasons. But yes, as we see our projects to be able to deliver similar margins the project once the product makes changes and we have a few more transport projects we will come back and give a revised guidance if we need to.
Koustubh Shaha
Okay, next question was on the so we have a handy cash on the balance sheet. So are we looking at any MNA activity in the water space or what is your view as to how the cash will be utilized in the future?
Sandeep Garg
So two parts of the question I would want to address them. Number one is do we see the use of cash that we have in the business that we look at ahead? The answer is we see a significant work getting awarded in the coming months both in the water and the transport verticals and they will be also in these two modes of execution, that is through the BOT or as well as through ham. So we see the consumption of this cash in the businesses very easy and as we have always maintained, we are always looking for opportunities where we can collaborate, innovate and bring in cutting edge technologies which is value accretive for the stakeholders.
So always open for any acquisition or merger in case it brings value to our stakeholders.
Koustubh Shaha
Sure. Thanks. One more question on the order book side. So in the last call you had mentioned that for FY26 we should see a good healthy order input from about 9 to 10,000 crores. But if I see for this quarter it has been hardly 200 odd crores. So are you still confident of that number achieving that number by the year end?
Sandeep Garg
So a very good question. Thank you for taking posing it. So yes. First of all let me try and take you through the pipeline of the projects that we have. We do have a heavy order book but we need to build onto it. As I said, our consolidated order book stands at 13,665 including O&M auto of about 4,400 crores. It gives us the visibility. However, as I said in my opening remarks, we are actively pursuing opportunities of about 12,000 to 13,000 crores over the next 30 to 45 days bid out. Hopefully we will win a few of them.
I also understand that NHI is coming with large order pipeline of about 3 lakh crores for the next 8 months. These are large value contracts both in HAM and bot. So we expect to win a few there as well. There is a large value contracts in water in the states of Maharashtra, Madhya Pradesh and Rajasthan and we are well poised for exploiting those opportunities. So overall I’m very confident that over the next eight months we will book fresh orders in the range of 10 to 11,000 crores. And I am reasonably confident that the Q2 will be a better announcement from a cross standpoint of order book.
Koustubh Shaha
Great, thanks. And with your permission, if I can have one last question. Yeah. So lastly, so now so how do we position ourselves? Will we position ourselves as a water infra play or. Because you also mentioned about the road infra projects that you will be bidding for. So how do we position ourselves? Are we a pure play water intra or we are combined water plus transport and in the future would you kind of have a demerger of the transport segment or you continue the same entity? That was my last question.
Sandeep Garg
So let me bring out very clearly that we will continue to play in transport which has been our forte in the past. We are adding a vertical of water which is going to be more technology driven play rather than pure, you know, white label play. As the road seems to have come true. So we are, we want to create differentiation there and that is why there is a focus. But we are not giving up our core strength in road or in transport vertical. We may move to more value accretive segments within the transport of focusing more on complex projects and tunneling, et cetera, et cetera but or the elevated structures but that shall remain as a part of the company as we look forward into future.
Koustubh Shaha
Thanks. Thanks for all the answers and all the best to the management for the future. Thank you.
Sandeep Garg
Thank you. Thanks a lot.
operator
Thank you. Ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Should you have a follow up question, we would request you to rejoin the queue. The next question is from the line of Dheeraj Ram from Ashika Group. Please go ahead.
Dheeraj Ram
Hi sir. Thank you for taking up my question. So my first question is we have given a growth guidance of revenue growth guidance of 15 to 20% in 4Q and we have done a slight degrowth. And considering the upcoming quarters, do you still maintain the top line guidance?
Sandeep Garg
As I said in my opening statement, we are committed to delivering any revenue anything between 4000 to 4100 crores which is in the range of 15% over the 3550 crores revenue reported in FY26. So want to bring in that even despite what you see today, we have seen it earlier and hence given a guidance that we will be having more skewed towards H2 revenues and given the guidance of about 40% Q1 has been slightly thereabout in the same range of 20% of the revenue target. The Q2 as you see is a very monsoon driven, an impacted play.
Depending upon how our job sites see that, we may be at a 20% of our guidance or slightly lower than that. But overall guidance for the FY26 remains unchanged with anything between 4,000 and 4,400 crores at the consolidated level.
Dheeraj Ram
Okay sir. And the second one is you’ve said the bid pipeline in prior participants question. So can we see over 50% or 60% and above orders coming from water or at least in the bid pipeline since this segment had seen a significant improvement in margins in EBIT margins, both YOY and qq.
Sandeep Garg
So. We will be targeting more value accretive projects whether they will come from water segment or they will come from transportation. It is very difficult to predict. As you know we are in a bidded environment rather than anything else. So yes, the focus is to bid for projects which are more value accretive. Now whether we will be able to continue our streak to grow water at the same rate as they have grown or not will be seen by the bidding pattern. Anything that you would like to add? Sorry.
Abhishek Chaudhary
I think Sandeep, you’ve said it well. We see substantial momentum coming into the tunneling space as well as the rehab space in the water segment. And we are very excited about how our initiative in the WarStewewater transformation through SmartOps is shaping up. So yes, I can only confirm and reiterate what you have just disclosed on the call.
Sandeep Garg
Thank you. Thank you sir.
Dheeraj Ram
Okay, just. Just Last question if I may. If you can give me the breakup between how much revenue contribution from Bandoop and dharavi project for Q1.
Sandeep Garg
Project wise bifurcation. If you want you can connect with offline. We will discuss.
Dheeraj Ram
Okay. Yeah. Thank you.
Sandeep Garg
And was already given the financials.
operator
Thank you. The next question is from the line of Shailesh Raja from BNK Securities. Please go ahead.
Shailesh Raja
Yeah. Thanks for the opportunity. Out of 12,000 to 13,000 crore that we have delivered what is the breakup of road and walkways?
Sandeep Garg
So the current forecast that we are we are targeting is practically balanced. We are targeting 50. 50% of the orders. 50. 50% bids pipeline. As we see at this point in time for the next 30 to 45 days.
Shailesh Raja
Okay. So what is the order intake that you expect? Sir, from each of the business vertical like wmel. Smart tops.
Sandeep Garg
So smart OP will remain small. It will be in the ranges of about. For the FY26 it will be in the range of 80 to 100 crores. That’s what we expect it to be the giving.
Shailesh Raja
Sir. Sorry. This is the new order intake you are talking, right?
Sandeep Garg
That is correct. That is correct. So we are talking only about the order the intake between Michigan and wel. I think the bulk of the orders will come from the wel. The order intake at the level of directly at the WMEL may be in the ranges of about 600 crores. The balance order will be contributed by WGL. Now giving a split between the two of water and transport is very difficult. As I said, it’s a big environment. But given the size of the opportunities that we look in both we see that the order book in both of them will be pretty healthy in the 3/4 to come in this year.
Shailesh Raja
Okay. Have you bidded for this desalination project in Mumbai?
Sandeep Garg
Yeah. As you know, as you know it’s still still not bidded. And it will be improv improper for me to declare our strategy.
Shailesh Raja
Okay. Okay. Okay. So how do you see the growth in the next year FA27. As most of the projects road projects will get over by this year. Even if we win the road project in next 45 days can we book decentralized revenue in FY27?
Sandeep Garg
So the forecast, as I said earlier, almost 93% of our revenue is for the FY26 is covered by the existing orders. So FY26 is pretty much, you know the political and the weather vagaries notwithstanding enforcement situation. We are very confident of our FY26. And it is true if you book the orders in the early part of FY26. We will see some revenues flow through them in the FY27. If you book them pretty late in FY26 they will start contributing from H2 of FY27.
Shailesh Raja
Okay. Okay. Okay.
operator
Thank you. The next question is from the line of Part Thakkar from JM Financial. Please go ahead.
Parth Thakkar
Thank you for the opportunity. My first question is what would be our current L1 position? Sir.
Sandeep Garg
We are not L1 in any of the bids. In fact as we speak there is no bid open. But we are expecting. Expecting to bid for. As I said in the next 30 to 45 days. Anything upward of 12 to 13,000 crores.
Parth Thakkar
Okay. And what is our outstanding order book on the Mumbai?
Sandeep Garg
I must correct myself. Sorry, my. Before part I we go forward. I must correct myself. There is a project where we are L1 but we have counted it out because we have no formal information from the client for quite some time.
Parth Thakkar
So what is the value of it?
Sandeep Garg
1850 crores value contract. We are L1 but we have. We do not declare it because we have not heard from the client as to what their view on that particular order is. So we are not counting it at this point in time. Neither in L1 nor in the order book.
Parth Thakkar
Okay. What is our outstanding order book in the Mumbai Dara base for the project?
Sandeep Garg
Can I request you to take project specific conversations offline path so that we can give you exact details.
Parth Thakkar
Okay. And can you also provide the overall bid pipeline like vertical wise?
Sandeep Garg
So we expect the auto pipeline as I said is huge. NHI is coming up with 3 lakh crores. We expect another 2 lakh crores in the water state notwithstanding in the transport and water transport. So the huge opportunity going forward now the bid pipeline for us. Because we don’t bid everything. So I would expect that we would be bidding anything between 70,000 to about a lakh crore worth of orders in the next nine months.
Parth Thakkar
Okay. Thank you. Those are my questions.
operator
Thank you. The next question is from the line of Raman from Sequent Investments. Please go ahead. Mr. Aman, your voice is not audible. Hello. I will request you to come back in the queue. Sir, the next question is from the line of Mr. Vaibhav from JM Financial. Please go ahead.
Raman KV
Yeah. Hi sir, what is the position on JGM projects in up? So last time we indicated that our outstanding receivables are close to 200 odd crores. So what would be the order book over there? And has there been any payments received in the quarter on the Year so. Far.
Sandeep Garg
Good in upjjm. You know cash flow for this quarter we have received around 30 crore in this quarter and money stuck till now is 237 crore as per our books of accounts. However if we talk about the contract, as per contract we are receivable is 330crores. And it is true, Weber, that it is. The collections have been slower than the plan. But I would want to add that we are, we are remaining, we have remained focused on execution and completion of of the project and we do expect the Q3 to be better as far as collections are concerned.
Raman KV
Okay. And so what was the. The project size and outstanding order book? Now for the, for the project I.
Sandeep Garg
Would request if you could on a project specific order of execution and project specific order outstanding if we can take it offline.
Raman KV
Okay, sure. Are we open to any more JM projects maybe in UP or any other state.
Sandeep Garg
I don’t think at this point in time we have the bandwidth to take such car such a project. We will, we will want to stay away from these highly distributed projects at least on UP now.
Raman KV
Okay. Okay. So lastly, out of our total order backlog what would be in the execution right now?
Sandeep Garg
Can you repeat the question please?
Raman KV
Out of our total order backlog what would be currently under execution where I’ll be awaiting the start dates.
Sandeep Garg
So then all projects that we have are. The start dates are already there. So projects are all ongoing. There’s not a single project that we have on hand where the project is not ongoing. Certain projects which are as I said Bhandu water treatment plant and Haravi Ghatopur tunneling was in pre construction approvals of statutory approval stage which we have met. And we expect the Bandu to start full swing Silver Works post monsoon and Dharavi Ghat Kopar, we expect the shack work to begin at Dharavi post monsoon.
Raman KV
Okay. And sir, apart from the jgm any other projects where payments are delayed or it is on time?
Sandeep Garg
Not really.
Raman KV
Oh, okay. Thank you. Those are my questions.
operator
Thank you. The next question is from the line of Vishal Perival from Antec Stock broking. Please go ahead.
Vishal Periwal
Yes, thanks for the opportunity. So in terms of guidance we did clarify but but if one look at between standalone and consolidated, I mean will it be more growth driven by Michigan or how do you see that?
Sandeep Garg
No, I think definitely the growth rate of Michigan is going to be higher because it’s at a lower base. So that’s for sure. But the growth will be across both the companies and we are giving the Guidance only at the console.
Vishal Periwal
Right? Right. No. So reason I’m asking is like, you know, probably this is Michigan is driving then the EBITDA margin could be better than like, you know, what, what we have done or what we are seeing.
Sandeep Garg
So the EBITDA margins, Vishal, will, as I said, we, we are not changing our guidance but our projects are capable of giving the returns that you see in Q1 at this point in time.
Vishal Periwal
Okay. Right, sir. And then maybe one last thing. In the initial part of commentary it was mentioned Smart Ops in a separate company. So I just thought to clarify, so what, what exactly it means or if I’ve heard it right.
Sandeep Garg
So do I take this question?
Abhishek Chaudhary
Please go ahead.
Sandeep Garg
So Smart Ops VC is a much different play than the bidded and competitive environment that we see both in Wellespan Michigan and Wellspurn Enterprises level. It is a very different business technology driven. It will need very different set of skill sets to manage that business which is distributed as well as it is long term operation and maintenance driven, etc. Etc. So we have created a company and we are expecting its CEO to join very soon. It’s being populated. The management team other than the CEO is already in place and it is a joint venture with the, with the Smart Ops uk.
So it is going to be a very separately housed business vertical.
Vishal Periwal
So when you say separately separate vertical, it’s a part of the Wellspun Enterprises or it’s a, I mean like an altogether different company. Altogether.
Sandeep Garg
No, it is, it is, it is. The parent for Smart Ops UK is going to be Westburn, Michigan.
Vishal Periwal
It’s a part of, it’s been Michigan.
Sandeep Garg
Yeah.
Vishal Periwal
Okay. Okay. Okay, sure. That, that’s all from myself.
Sandeep Garg
Thank you.
operator
Thank you. The next question is from the line of service. Gupta from Maximal Capital, please go ahead.
Sarvesh Gupta
Good afternoon, sir. So first question is on the guidance. So if I work out the guidance of 4,000 to 4,100 crore, that is 12 to 14%. So we are revising it down from 15 to 20% in the previous quarter. Is that, is that correct?
Sandeep Garg
So I, you know, because there has been reclassifications and everything, everything happening in the accounts right now, I have, you know, moved the guidance to become more specific to be in the ranges of 4000 to 4100. And I have clarified that the base is 3550 which if we reach the 4100 will be about 15% is what my computation says. And that’s, that’s what we are targeting.
Sarvesh Gupta
Okay, understood. And secondly on the margin side now two Things have happened. One thing that you spoke about is the, you know, introduction of more technology leading to efficiency gains. And secondly is the mix change because now the overall revenue profile is dominated by tunneling and water, unlike earlier when road used to be the most important part. So what would be the sustainable EBITDA margin excluding other income that we should target from the mix that we have now, which is different.
Sandeep Garg
So you’re right to the extent that the EBITDA margins will be governed by the product, the mix of the revenue. However, we expect the split to remain more or less equal between the three verticals that we are talking about which is the transport, the tunneling and the water. So I would not want to change the guidelines but guidance on the EBITDA. But the EBITDAs that you see in Q1 are sustainable in that range.
Sarvesh Gupta
Okay. Okay. And finally on the order inflow. So earlier when we were I think talking about 9 to 10,000 crore. Now we are talking about 10 to 11,000 crore. So we are incrementally more positive about getting higher orders in FY26 as opposed to previous.
Sandeep Garg
Because we see much, much better visibility both on water as well as on the transport. And our interactions with the, you know, our prospective clients tell us that they, they are bullish about the auto pipeline going forward in the next eight months.
Sarvesh Gupta
Okay, so in one project which got completed. So how much is the receivable when we sell that particular project? The merit one, right?
Sandeep Garg
Yeah. This project is Anta Samaria project which we have got the PCOD on the 15th of May. In this project we have invested equity of 160 crore. It would not be appropriate to talk about the valuation at this moment since it is a marquee project. We expect that this would provide us return in 2x which is better from the last monetization deal which was at 1.5x. We expect to close this in the current financial year.
Sarvesh Gupta
Project where pcod. So is there any receivable?
Sandeep Garg
Yes, yes there is a receivable. So we have already sold this project to ACTIS and price is already fixed. 269 crore plus 6% interest from the 2022 differential amount. We have already taken some money so that will be transferred. So net impact will be around 140 crore will be get from the in. Terms of the cash flow.
Sarvesh Gupta
Okay. And on Smart ops, so how much will be WME and shareholding in Smart ops?
Sandeep Garg
The holding in the smart WML is 50%.
Sarvesh Gupta
50%. So net for our company will be 50% into 60%. Like 30%.
Sandeep Garg
That is correct.
Sarvesh Gupta
Okay. Okay, sir. Thank you. And all the best for the coming.
Sandeep Garg
Thank you.
operator
Thank you. The next question is from the line of Bhaviksha from Invexa Capital. Please go ahead.
Bhavik Shah
Yeah. Hello sir. First I want to clarify. So did we say 10 to 11,000 crores of order inflow guidance for FY26?
Sandeep Garg
That is correct.
Bhavik Shah
Right. And sir, we have a strong order book in Michigan of around 2900 crores. So generally what is the execution timeline over there?
Sandeep Garg
So can do I take this?
Abhishek Chaudhary
Yeah, please go.
Sandeep Garg
Okay. Because one of the orders in that 2900 crores is an 1100 crore order book which is a long term contract which should take about seven years to complete. The rest of the order book, the normal timelines are anything between one and a half year to three years.
Bhavik Shah
Okay. Understand. Sir, we are seeing of investment of 137 crore in a press release. So is it only the ham investment or is it including the capex and all other investments? Can you just break it up if possible?
Sandeep Garg
This is equity investment in hem project.
Bhavik Shah
Okay. Equity investment. The 137 crores. Right. Okay. And so last question. Are we seeing any delays in Maharashtra in say bids opening up, bids coming or say on the receivable side as well? Anything that we are witnessing, we are.
Sandeep Garg
Not witnessing any delays on the receivables. So our receivables are absolutely real time. So there is nothing that we can see. You know these large projects getting delayed by a month or this way or that way is something that all businesses anticipate. So we don’t see any. We have no red flags as far as what we see.
Bhavik Shah
So there is no negative impact of the lightly banner scheme which you are seeing in March?
Sandeep Garg
We see no negative impact.
Bhavik Shah
Okay. Thank you so much.
operator
Thank you. The next question is from the line of Ridesh Gandhi from Discovery Capital. Please go ahead.
Riddhesh Gandhi
Hi sir. And any update you can give us on what’s happening with the oil and gas business and any update on the development approval.
Sandeep Garg
Thank you. I was hoping that this question. I had addressed this in my opening statement as I said that we need. We are working with ONGC and BGH for the evacuation of the asset. So as you will recall that we had given the commercial. The main project that we have or the main block that we have is MB OSN 20052 Mumbai block. We had given the declaration of commerciality last quarter. So we expect the evacuation discussions to conclude in next 60 to 90 days. Hopefully. These are government companies and this is government. And as you know that government has come up with the rules for sharing of infrastructure.
So if the rules are quickly adapted, the draft rules are already out, it will be easier to conclude the discussions. And based on that, we expect next Q3 to have a better information to share with you.
Riddhesh Gandhi
So as in if the things play out, could you give us the kind of contours of how this could then look?
Sandeep Garg
So we have three blocks. As you know MBUs in 2005, two B9 and C37. Commerciality of all the three blocks is established. The question is how the evacuation will take place. Their surface facility, as far as the blocks are concerned is reasonably well clear to us. The clarity is what does not exist at this point in time is from which route will be evacuate this gas and condensate and process it where. So these two issues are right now under discussion with ONGC and dgh. So the controls are. Once this is known, we will actually know in what time frame these can be monetized.
Riddhesh Gandhi
All right. All right, thank you. That’s all for me.
operator
Thanks. Thank you. Ladies and gentlemen. As there are no further questions, I now hand the conference over to the management for closing comments.
Sandeep Garg
Thank you everyone. Thanks once again for coming and joining us today. I hope we have addressed all your queries. We remain committed to creating long term value for our stakeholders and our focus is on improving return on equity and return on capital employed. Should you have any further questions or feedback, please feel free to reach out to our CFO or investor relations team. Thank you and good day.
operator
Thank you ladies and gentlemen, on behalf of JM Financial Institute, Institutional Securities Limited and Wellspurn Enterprises. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.