Welspun Enterprises Limited (NSE: WELENT) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Sangeeta Tripathi — Head of Investor Relations
Mr. Sandeep Garg — Managing Director
Mr. Saurin Patel — Head – Integrated Water & Managing Director
Mr. Abhishek Chaudhary — Chief Executive Officer – Transportation Vertical
Mr. Lalit Jain — Chief Financial Officer
Analysts:
Unidentified Participant
Vaibhav Shah — Analyst
Sanjay Shah — Analyst
Sailesh Raja — Analyst
Sarvesh Gupta — Analyst
Apeksha Bajaj — Analyst
Presentation:
operator
Ladies and gentlemen. Good day and welcome to Wellspun Enterprises Q3FY26 earnings conference call hosted by JM Financial Institutional securities Limited. 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 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 Institution securities Limited. Thank you. And over to you.
operator
Thank you. On behalf of JM Financial, I welcome everybody to Q3FY20 earnings conference call of Wellspring Enterprises Limited. I will now hand over the call to Ms. Sangeeta Sripathi, Lead Investor Relations at Wellspun Enterprises Limited. Over to you ma’. Am.
Sangeeta Tripathi — Head of Investor Relations
Thank you Vaibhav. And good afternoon to all of you. On behalf of Wellspring Enterprises Limited, I welcome you all to the Q3 as the nine months of morning’s conference call. Along with me I have the leadership team of Wellspring Enterprise. Mr. Sandeep Garg, Managing Director of Wellspin Enterprise Limited. Mr. Soren Patel, Managing Director of Wellspin Michigan Engineers Limited and Head Integrated Water Vertical. I also have with me Mr. Abhishek Chaudhary, Chief Executive Officer, Transport Vertical Wellspun Enterprise Ltd. Mr. Lalit Jain, CFO of Wellspin Enterprise Ltd. And Mr. Hardik DeBar, Head Finance and Investor Relations, Wellspan Enterprise Ltd.
And CFO Wellspan Michigan Engineers. I hope you had an opportunity to review the investor presentation that we filed with the exchanges yesterday. The same is also uploaded on the company’s website. During the discussions today, we may be making references to this presentation. I would also request you to take a moment to review the Safe Harvest statement in our presentation. As usual, we will start the forum with opening remarks by our leadership team and then we will open the floor for your questions once the call gets over. Should you have any further questions, please feel free to connect with any of us.
With that, I hand over the floor to our Managing Director, Mr. Sandeep Garner. Over to you sir.
Mr. Sandeep Garg — Managing Director
Thank you, Sangeetha. Welcome to The Wellspun Enterprises Q3 and 9 month FY26 results conference call and thank you for joining us. This is our first interaction in 2026. I wish you all a happy and healthy New Year. We are pleased to share that wellspurn Enterprises has been recognized as a great place to work for the second time, underscoring the strength of our culture and our light, values, learning, innovation, trust and transparency and endurance. In line with our focus on responsible and sustainable growth, we released our second sustainability Report in December highlighting tangible progress across our ESG priorities.
We have been honored with the sustainable organization award 2025 at sustainability summit and awards. In addition, our subsidiary Wellspurn Michigan received three awards at the Indian Society for Transitized Technologies for trenchless excellence, reinforcing our execution excellence and sustainability led approach. Abhishek will take you through the key sustainability highlights in his address. On the business front, I am happy to state that CRISIL has revised our outlook from Stable to positive while reaffirming the long term rating at CRISIL AA and the short term rating at CRISIL A1. This division in outlook from Stable to Positive reflects our strong balance sheet, financial resilience and robust business model.
Abhishek and Saran, the heads of Transport and water business respectively will provide a detailed overview of their portfolios. I would like to highlight that currently we are executing four marquee water projects and are at advanced stage of completing two road projects. We have received the first annuity for nhai. I stand corrected. First annuity from NHI for the Anta Simaria Road project as scheduled, further enabling and facilitating our asset monetization strategy. We expect the same to be completed by Q1 or Q2 of FY27. Turning to the financial performance for the nine month period, our consolidated EBITDA grew 10% year on year to 573 crore rupees.
The EBITDA margins expanded from 19.3% to 23.1% reflecting operational efficiency. On the balance sheet front, we remain well capitalized with consolidated cash reserves of rupees 1400 crore providing ample liquidity to fund growth while maintaining financial discipline. Lalit Jain, our CFO will walk you through the financials in more detail. Coming to the Order Book the consolidated order book stands currently at approximately Rupees fifteen thousand crore. I would like to clarify that the consolidated order book is arrived post adjustment for intercompany orders between the parent WEL and subsidiary WMEL of rupees 1559 crores. The order book is inclusive of O and M contracts of approximately 5,400 crore delivering stable long term cash flows.
Further, the current order book does not consider the Punesh Rur Bot project where we emerged L1. Further, the current order book does not consider the Pune Shirur Road bot project where we have emerged L1 I’m sorry I repeated the statement. Coming to the Oil and gas update Adani Wellspurn Enterprises Limited has taken a write off of Kutch Block GK OSN 20091 following its offering under the government’s DSF4 bid round. The operator ONGC for this block had requested for extension of time which was not finally granted. This has resulted in an A1 level write off of Rupees 140 crore with Wellspurn Enterprises Limited’s 35% share amounting to Rs.
49 crore which has been recognized in our books as an exceptional loss from the Associate. This was in any case never considered in our business plan for oil and gas. On the operating front, able currently holds three adjacent offshore oil and gas blocks namely Mumbai B9 and C37 which with a combined gas initially in place jib of approximately 1.1 tcf. In line with our stated strategy, we are leveraging existing NOC infrastructure through shared facilities rather than investing in new offshore assets or pipelines. We are actively engaging with ONGC to utilize their infrastructure, enabling capital efficiency and faster developmental timelines.
Coming to the guidance at the start of the financial year we had guided that approximately 90% of the FY26 revenues would be driven by the existing secured order book and around 10% from new orders. The delay in award for new projects, delay of certain statutory clearances for the existing orders along with the extended monsoon have impacted our Q3 and 9 month FY26 revenues. Accordingly, we now expect consolidated revenues for FY26 to be in the range of 3,600 to 3,700 crore. However, we remain on track to achieve our full year EBITDA targets. The Union Budget 2026 provides strong structural support to infrastructure players backed by a sustained public investment cycle and a capital expenditure outlay of Rupees 12.2 lakh crore representing 9% approximately year on year growth.
We operate across nearly 40% of the focus areas covered in this outlay including transport, Jaljeevan Mission and urban development, translating into an addressable opportunity of approximately 4.5 lakh crore. Additionally, the proposed Infrastructure Risk Guarantee Fund is a positive structural reform expected to mitigate development and construction phase risks and enhance private sector participation in large infrastructure projects. The continued emphasis on connectivity, urban infrastructure and climate resilient assets ensures a healthy and diversified project pipeline across roads, railways, metros, water and energy infrastructure. This reinforces a healthy pipeline and supports sustained order inflow, cash flow stability and scalable growth for the sector.
We at Wellsman Enterprises are well positioned to capitalize on these opportunities by leveraging our expertise in water both in treatment and transmission space, as well as exploring possibilities of collaboration in the product and technology play from a long term strategy standpoint and complex infrastructure projects anchored in our 3G strategy, Growth, Governance and green. We will continue to remain focused on disciplined execution and delivering long term sustainable value. With this I would like to conclude my opening address and call upon Mr. Swaran Patel head Integrated Water Vertical to take you through our water and westfund Michigan updates.
Over to you Sarain.
Mr. Saurin Patel — Head – Integrated Water & Managing Director
Thank you Sandeep and good afternoon everyone. It is good to reconnect. I will briefly update you on our water business, a segment where we are deploying scale and technology with a clear sense of purpose. Our current water order book stands Approximately at Indian Rupees 11,000 crore of which around Indian Rupee 5,400 crore relates to operations and maintenance. This provides us a strong visibility of stable and recurring cash flows over the coming years. Before I take you through the progress on our key projects, let me briefly reiterate what Sandeep has already highlighted. Wellspun Michigan Engineers Ltd.
Is proud to have received three awards at the Indian Society for Trenchless Technology Excellence Awards. They were the best tunnel of the year for the Miti river project, the best professionally managed company and last and not the least best project execution. A proud moment indeed. Let me now take you through the. Progress on our key projects. The Dharavi project which is 418 ML Sewage Treatment Plant, civil works for the SBR and Blower Building are complete, mechanical erection has commenced, major equipment deliveries are largely done and overall Progress stands at 60% as of December 31, 2025. This project remains on track for completion by July 2027. The Bandu project, a 2,000 ML water treatment plant, engineering and excavation are progressing well. The civil contractor has been finalized and deployed, batching plant setup has been completed and completion of this project is expected by April 2020. Panjapur Project, a 910 ML water treatment plant, enabling works and basic engineering have commenced.
Mobilization advance has been received with revenue expected to start from FY27 onwards. The EPC value is Indian rupees 1685 crores with an O&M component of Indian rupees 980 crores over 15 years. Up. Jal Jeevan Mission we have accrued revenues of up to 70% of the contracted value along with O and m commenced for 33 out of 1068 schemes on completion. This will benefit over 2,500 villages. Dharavi Ghatkopar Tunnel as updated by Sandeep for the Dharavi Ghar Kupar Tunnel the project clearances have been delayed resulting in a delayed takeoff for the main execution post receiving all pre project clearances. Shaft work for the 150 meter shaft at Ghat Kopar is expected to commence shortly. SmartOps within two years of launch five projects are live across India including Varanasi, Guwahati and Pandarpur.
Around five new projects are expected over the next six to eight months. Coming to Wellspun Michigan Performance for the nine months FY26 revenues grew by over 30% year on year to Indian Rupees 522 crores and EBITDA grew by approximately 20% to Indian Rupees 111 crores. Wellspun Michigan’s order book stands at Indian Rupees 2,540 crores led by tunneling, pumping stations and rehabilitation works. To conclude our strategic focus on wastewater treatment, large scale water supply systems and tunneling positions as well to create sustainable long term value in a sector that is both critical and most importantly fast growing.
With that I will now hand over to Abhishek who will take you through the transport segment performance in greater detail.
Mr. Abhishek Chaudhary — Chief Executive Officer – Transportation Vertical
Thank you Saurin, Good afternoon and a very happy New Year to everyone. I will take you through the project progress and key milestones in our transport vertical followed by a brief update on on our digital transformation and sustainability initiatives starting with Anta Samaria Road Project in Bihar as highlighted by our Managing Director. We have received the first annuity payment from NHAI for this project as scheduled. This milestone enables us to move forward with asset monetization which we expect to complete in Q1 or Q2 of FY27 post monetization approximately 800 crore of debt is expected to move off our balance sheet significantly strengthening our financial position.
Moving to SNRP Project the project is nearly 80% complete. We expect to achieve provisional commercial operation date 1 or PCOD1 by Q4FY26 with full completion targeted for Q2FY27 on the Varanasi Aurangabad Road project, progress remains steady with completion targeted for Q4FY26. While there have been some front availability issues, we are working closely with the client to resolve these challenges and accelerate execution. Coming to The Pune Shiru Road Project. The project continues to remain under L1 status. The letter of award was delayed due to elections and we now expect to receive the LOA shortly, likely within this quarter.
This is a marquee project for Wellspan Enterprises involving an estimated capital outlay of approximately 7,300 crore for a 54 kilometer six lane highway including around 36 kilometers of elevated corridor. Now moving to Digital Transformation initiatives Let me now briefly touch upon these initiatives which continue to drive digitalization across our operations. We are leveraging building information modeling to improve quantity estimation, reduce rework and track both physical and financial progress through our well Darpan Portal, our business intelligence platform. In parallel, we have implemented SAP S4 HANA Rise as our enterprise ERP solution. The digitalization of our Project Management Dashboard have enabled process optimization and real time analytics across various projects during this quarter.
We are also commencing the digitization of our supply chain management function aligned with a three year roadmap to significantly enhance its maturity and performance. We have also initiated the development of an E Governance solution with a pilot to be launched within this quarter to further strengthen our governance framework from a technology backbone perspective. We are in the process of migrating towards a unified application framework which will enhance data security, strengthen controls and accelerate end to end process digitization. Let me now take a few moments to speak about our sustainability initiatives at wellspun Enterprises. Sustainability is integral to the way we operate.
We recently released our second sustainability report titled Sustainability in the Unstoppable Journey and our efforts have been positively rated by Crisil and Sustain Analytics. Our decarbonization strategy is anchored on three pillars circularity, resource efficiency and nature conservation. Our ambition is clear to lead the transition through a low carbon circular and inclusive infrastructure ecosystem. With that I would now like to hand over to Mr. Lalit Jain, our CFO who will take you through the detailed financial performance for the quarter and the nine month period ending 31st December FY26. Over to you Lalit.
Mr. Lalit Jain — Chief Financial Officer
Good afternoon everyone and thank you Abhishek. Thank you all for joining us today. I will briefly walk you through our Q3 and 9 month FY26 financial performance, key development during the period and our outlook going forward. Let me begin with the consolidated financial performance for for 9 month period considerate income was 2480 crore down 9% year on year. For Q3 FY26 incomes to date Rs. 806 crore representing a 12% year on year decline. This decline was largely timing related. First we saw delay in statutory lenses from the Dharavi Ghat Kopa tunnel. This shifted execution from Q3 into Q4.
Second there was extended monsoon. This has impacted both WEL and Western Michigan. Further there were delaying project awards including Pune SIL project where we have been L1 for the past four months and now expect the award by the end of this quarter. Similarly, the Project Panjarpur project which was originally planned for Q3 is now expected to commence in Q4 FY26. Despite the lower revenue, our operational performance remains resilient. For the nine month period EBITDA grew 10% year on year to 573 crores with margin expanding to 23.1% and increase of 3.9%. This is reflection of strong operational efficiency helping us to maintain margin despite decline in revenue.
EBITDA for Q3FY26 stood at rupees 174 crore marginally lower on year on year basis. However EBITDA margin improved meaningfully to 21.6% and expansion of 2% driven by operational efficiency and cost discipline. Now moving to profitability on 9 month basis, EBIT before exceptional item increased by 4% year on year basis to 389 crores. PBT before exceptional item for Q3FY26 stood at rupees 109 crore reflecting a 6% year on year decline. During the quarter we recorded an exceptional loss of Rs. 49 crore related to the write off of the GKOSN 2009 oblique 1 oil block in the Touch basin.
This represent our 35% share of the total write off at ONG Chevy level. As a result reported paid for Q3FY26 stood at Rs. 31 crore exceeding this one time exception. Item paid would have been Rs. 80 crore reflecting 4% year on year growth. For nine months. FY26 reported pet was 230 crore while pet excluding the write off stood at rupees 279 crore representing 12% year on year growth. I will now brief touch upon the standalone performance. Standalone revenue for nine month period stood at 1866 crore and 612 crore for the Q3FY26 reflecting approximately 14% year on year decline for nine month FY26 EBITDA remained broadly flat at rupees 331 crore while margin improved to 17.7% and expansion of 2.44%.
Q3 EBITDA on standalone basis was rupees 91 crore with margin remaining stable at 14.8%. Standalone PBT for nine month period stood at Rs. 285 crore and for Q3FY26 is Rs. 73 crore. Now turning to the balance sheet, our financial position remains strong and well capitalized. On standalone basis net worth stand at Rs. 3,112 crore with a healthy cash balance of 1,273 crores. On consolidated basis, net worth is Rs. 3,148 crore with a net debt of Rs. 466 crore. During the quarter we issued 1.9 crore warrants at an issue price of Rs. 525 per share aggregating to Rs.
1,000 crore. We have received 250 crore upfront during the quarter which has been invested in mutual fund. The balance will be converted over the next 18 months. Let me now briefly cover the segmental performance for the nine month period. Transport contribute10.65 crore. This is 44% of total revenue. Water contributes 764 crore. This is 32% of total revenue. Tunneling and rehabilitation contribute 587 crore which is 24% of the total revenue. The tunneling and rehabilitation segment delivered 39% year on year growth. The water declined 15% mainly due to the UPGM slop Probus. The transport segment declined 19%.
Impacted by the project completion and a violent delay of Pune Siruru project finally coming to the outlook. Our current order book stand at Rs. 14,800 crore. With the Pune Siruru project expected to be added shortly. We expect the FY26 order book to cross 20,000 crore. This give us strong visibility and position. Us well. For revenue recovery and sustained long term growth. With that I will now hand over the conference to the host.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchdown 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. We’ll take our first question from the line of Vaibhav Shah from JM Financial. Please go ahead.
Vaibhav Shah
Yeah sir. On the standalone front if you look at the EBITDA margins XO further income. So we have seen some softness in the third quarter. So what do attribute this to and how do you see the margins moving forward at standalone level?
Mr. Sandeep Garg
So the way to look at the. I would say is look at the nine month average. There is a decline on in the Q3 slightly softness because the revenue recognition has been lesser than what is anticipated. And it is also dependent upon the phase of the project that we are executing. So I think at an overall level I would recommend we look at a larger period rather than purely at a quarter to quarter. And we have also not recognized profits on UPJJM project which is also as a prudent practice. We have decided that we are not able to recognize on the profits on this project till the time we see attraction at the government level.
I hope I have answered the question.
Vaibhav Shah
Yes. So connected question. So what would be our outstanding order book in JJM? It is largely from UP, right?
Mr. Sandeep Garg
Yeah. We are only associated at UP. Our approximate order book is about 600 crores at this point in time and outstanding receivables. Receivables stand at about 300 crores.
Vaibhav Shah
So once we see some traction then we will start determining the profit and do the execution as well.
Mr. Sandeep Garg
We, we are continuing with the execution whatever what is required for overall completion of the schemes. However, we will recognize the profits once we see that there is a clarity in the cash flows from the client.
Vaibhav Shah
Okay. So secondly what would be our bid pipeline across the verticals and which are the key segments are we are targeting in the next couple of years and any diversification that we are looking forward in the medium term.
Mr. Sandeep Garg
So in terms of our water vertical we are focused on treatment and transmission projects. We are not going to for going in for distribution projects which is not what we want to do in terms of the pipeline. Just to give you an idea, we do see approximately about within these three spaces in water something like about 3 lakh crores worth of order in the medium term. So we expect substantial orders in this sector in the FY27. Now the other part of the question that you had was. Can you repeat the question?
Vaibhav Shah
Any diversification that we are targeting in the medium term beyond water and highways.
Mr. Sandeep Garg
I think we will continue with the three segments that we are currently involved in. That is the water, the tunneling and in the transport vertical. So these are the three segments that we will be continuing with. We don’t see in the immediate future anything added at this point in time.
Vaibhav Shah
Okay. Okay. Thank you sir.
operator
Thank you. We’ll take our next question from the line of Sanjay Shah from KSA Securities. Please go ahead.
Sanjay Shah
Yeah. Good afternoon gentlemen and thanks for opportunity. So my question was regarding in FY26 which specific approvals or milestone caused the maximum execution delay and how those issues is now Been largely resolved more comes from after this BMC election. My second question should I complete my question three question is for.
Mr. Sandeep Garg
I suggest we put short questions so it’ll be easier for us to answer. So the first question that you have is what. What contributed to the maximum impact? The you know quantification may be a bit difficult for the but we can definitely say that the expanded monsoon has impacted us in a big way both across Wellspurn Enterprises as well as across Wellspun Michigan. So which is what I would first call out in terms of our other thing is obviously that punisher getting awarded delayed wherein we had planned for certain activities during the initial phases is impacting us to certain extent Some you know I would want to qualify that not only the statutory delays but local local disturbances on certain projects which we had planned that we will start have contributed to the recognition in Q3 being below what we would have anticipated.
Is my question the answer to your question? I hope I have answered your question.
Sanjay Shah
Yeah, so continuing that sir, in order book is strong but revenue has been solved due to timing. I understand but from normalized execution perspective what should investors assume as as a steady state of annual execution run rate over the next 23 years?
Mr. Sandeep Garg
So I think the current situation is an aberration because few of our projects as Abhishek mentioned are nearing or completed in transport. So this is aberration in the overall growth of the company. However, in our steady state we do believe that we as we had earlier also guided that we will grow at about 15% now that FY26 is not expected to meet its target and there is a spillover of the revenue, the slower base as well as accumulation of these orders. I think that the FY27 may grow upward or close to about 20%.
Sanjay Shah
Sir, my second question was to Mr. Sovereign sir. Sir, do you see VEML becoming a strategic mode that helps VEL win larger integrated water plus tunneling contracts?
Mr. Sandeep Garg
If you would I will take this question from Saren. Yes, we do see Wellsman Michigan becoming a strategic part of tunneling growth that is for sure Water also as we as he is heading the integrated water the synergies should pan out as we move forward
Sanjay Shah
Sir, I’ll squeeze one more. I have many but I’ll complete it one more sir, at OEM order book is now at 5,400 crore. Can you help us to understand the annual revenue and EBITDA contribution expected from O and M over next 35 years?
Mr. Sandeep Garg
Okay, so see the 5,400 crore is constituting about. 2,300 from the Dharavi which should get on stream as Sarin said in 2007, which is over a period of 15 years so should contribute something like about 200 crores a month, a year with an EBITDA margins similar as our main business. Now I would want to clarify very clearly that O and M as a vertical we have not operated for a long term at a large scale. So this is an anticipation at this point in time as we get into the O and M for over a year or two we would have much more clarity as to how the O and M piece should be positioned for investors to understand.
What it definitely brings out clearly to us is that it gives a revenue and a profitability visibility for over a long term rather than short term which is on design and build portion. So that’s something which to us creates a lot of visibility of sustained EBITDA margins and sustained profits. I hope I have answered your question.
Sanjay Shah
Yes sir. Yes sir. So I have a few questions. I’ll come in queue for more. Thank you sir.
Mr. Sandeep Garg
Thank you.
operator
Thank you. We’ll take our next question from the line of Shailesh Raja from BNK Securities. Please go ahead.
Sailesh Raja
Yeah, thanks for the opportunity sir. You have reduced the guidance from revenue guidance from 4000 to 3600 crore. 3700 crores. So the ask rate for this fourth quarter that comes to roughly around 1200 crores. So which is around 50% jump over 3Q. So what gives us confidence that to achieve this sharp revenue growth in FA sorry 4Q FA26 and also you mentioned about some of the. Some disturbance happened in continuing the project. So can you please address this when this happened and if the issue is fully resolved. So how do you see this 4Q achieving 1200 crores.
Mr. Sandeep Garg
So first question we would have been when we were revising downwards we were very careful about what is achievable. So the question is, are we reasonably confident about the 1200 crores? We do believe that that’s a. We are very confident about it. And the. As I, as Abhishek also referenced in his opening statement a few of the projects are getting completed. So the completed recognition of revenue should take place. So there is a. There is a finality to that, to that level. Now coming to the disturbance, the disturbance were primarily we had the approval for starting our DGT project at Dharavi which we had said that we will start.
But because of local disturbances we could not do it. And there was a sensitivity because there were local elections, etc. Etc. Etc. At that point in time. So it became a question of what we could do in the given set of circumstances and hence the deferment of some of the activities on that DGT took place. Now we do have the clearance on the starting of the work in Ghat Kopar on dgt if from the CRZ there is a formal approval or a process related approval pending. However, we are reasonably confident that we can start the work on DGT in this quarter on both the ends.
So we are reasonably confident that there is nothing residual in starting the DGT work going forward. I hope I have answered all the questions that you.
Sailesh Raja
Yeah, yeah, yeah. It is clear sir. But sir, in this 1200 crores can you give breakup of water and tunneling and transportation business?
Mr. Sandeep Garg
I would request if it is not a problem to connect with the my team or our CFO to.
Sailesh Raja
Yeah, sure. Yeah, yeah sure sir. My second question specific to wmel, the press release mentioned that there was a delay in statutory clearances of BGP project. To best of my knowledge, if you see in last one year there was no mention of these pending statutory clearances in DGT projects. So this announcement was complete surprise for me. So can you please give us clarity? And also now you are saying about the local disturbance and. And we met in investors conference in November, November month. So there was no discussion. Is it happened after that? So can you please give more clarity on this? And also is there any more approvals pending to start this project dgt?
Mr. Sandeep Garg
So I’ll take this question for on behalf of Saren. So we had started our work at. On the DGT at Dharavi end which is as you know it’s. It’s from our own site location which is for the Dharavi sea breast treatment plant. We anticipated no issues however because we have to dig to about 150 meter deep. The locals had certain observations which due to the elections the authorities decided not to intervene at that stage. But I think the intervention is now taking place. So that front is now when the disturbance has happened? Sir, it was about middle or end of November when we started the work.
Sailesh Raja
Okay, okay.
Mr. Sandeep Garg
So there’s something which we couldn’t have anticipated that because it is our own site and we are working there for sea rich treatment plant. There was no expected challenge from locals but there was a. There was an unexpected move and due to the situation in the state, the state chose not to intervene at that point in time.
Sailesh Raja
Okay, okay, okay. Remember even in last year in FA25 there is a revenue recognition from DGT project. So. So, so now we are seeing. Now only we got the statutory approval. So I just wanted to. Wanted to know the breakup of the 695 crores revenue that we have booked last year. So this is one of the major project.
Mr. Sandeep Garg
So there are two things that we do in a project. So there are preparatory expenses and engineering expenses. There are lot of machines that we kind of mobilize etc. Etc. So there are pre project execution expenses that get incurred in most of the projects. So the question is when you start. The majority of the work starts once you are able to actually unlock the major work. And the unlocking of major work is to create a shaft and then go ahead with the tunneling and lining of the tunneling. And that is the phase that we got hit at.
Sailesh Raja
Okay. Okay. Okay. So just one last question. Sir. You mentioned that next year we are expecting around 20% growth. So that is around incrementally. We are expecting around 800 crores revenue. Right, sir. And if I go segment wise. For example if we take a road project, Saunta Samaria next year there will not be any revenue contribution. And SNRP and Varanasi we are expecting, I think the pending revenue would be around say 350, 400 crores next year. Then how much we are expecting from this Pune Shiro project and when we expect the recommissioning of this Pune Shiru project.
That is one and second is that so the wmel how much revenue that we are expecting next year? And also water. Water also if you see DGT is roughly around 400 crores. So balance 2000 crores, 2500 crores. I’m not able to connect the dots actually. Could you please help in understanding.
Mr. Sandeep Garg
So these are, these are very detailed questions. Can I request you, Mr. Raja to you know interview. It will come and have a discussion with the operating team so that they can do justice to your question.
Sailesh Raja
Yeah, yeah, yeah. Sure. Sure. Okay.
Mr. Sandeep Garg
Thank you.
Mr. Sandeep Garg
Thank you. Thanks.
operator
Thank you. Ladies and gentlemen, in order to ensure that management is able to answer queries from all participants, kindly restrict your questions to two at a time. We’ll take our next question from the line of Sarvesh Gupta from Maximal Capital. Please go ahead. Sarvesh, your line is unmuted. Please go ahead with your question.
Sarvesh Gupta
Yeah. Good afternoon, sir. And thank you for giving the opportunity. So sir, first question is, you know, on the overall EBITDA margins. I think this year despite getting lower revenues we have gotten better EBITDA margins. So here you know some of the projects in the road as you mentioned were in the later stages also. But let’s say going forward, you know, in a steady state, how should we look at the overall EBITDA margins? And also considering that the mix of the business has changed a lot in favor of water and tunneling. So if you can help us with steady state margins in all the three segments and hence at the company overall, that would be very helpful.
Mr. Sandeep Garg
Thank you. I think as we say we. I have maintained that earlier also and I will repeat myself, the way we the company operates in its accounting is. Is a conservative accounting. We maintain certain contingencies on the project. And depending upon the phase of the project and the de risking of those issues for which we provide for the contingencies, we release those contingencies at an appropriate time. And that is because projects are getting closer to the completion of the two of the road projects, those contingencies are getting released or you know, the project. If there is something which is a specific risk that we see that risk is mitigated, we release those contingencies.
So you will see certain changes as the project evolves from the base that profitability that we guide depending upon how the contingencies are consumed or released. So that is something which is normal. As I have always maintained. We would want to definitely stay with the macro level guideline of about 18% or 19% EBITDA on a long term basis. Currently we are chugging at about 23% or there around at a consolidated level. And we foresee that this to continue in the same bracket for at least this year. Somewhere close to that. However long term guidance because that’s something which is very difficult given the product mix and the project mix that we will have.
We would maintain with 18, 19% EBITDA. Talking about segmental profitability, obviously tunneling. Based on the phase of the tunneling that it goes. It should. It gives us a very good and so does the water and specialized transport projects. It is the run of the mill transfer projects which may not be able to give better EBITDA over what we have guided.
Sarvesh Gupta
Okay. And sir, on the, on this new Punisher project, how much of execution can we do in FY27?
Mr. Sandeep Garg
So we would definitely come back to you once this is awarded. But given that we are anticipating this award this year, I would definitely believe that anything between 500 to 600 crores we should be able to execute within the next financial year depending upon if this is awarded in a. In the financial. In this financial year in appropriate time. And you know the. There are as we say, no surprises when we hit the ground.
Sarvesh Gupta
Okay sir,
operator
thank you. I request you to join back the queue please as we have other participants waiting for their turn. Thank you. Ladies and gentlemen, we request you to restrict to one question at a time please. We’ll take our next question from the line of Apeksha Bajaj from AV Fincorp. Please go ahead.
Apeksha Bajaj
All my questions have been answered.
operator
Okay, thank you. The next question is from Ritesh Gandhi. Please go ahead.
Unidentified Participant
Hi sir. You know the economics survey was talking about a 3.2 lakh crore opportunity in treating of a low quarter over 20 years or so. You know how do you guys look at this opportunity and how are we actually placed? Who are we competing with and how do we like? Sort of.
Mr. Sandeep Garg
So the treatment business will be spread over the large volume and as well as distributed treatment facilities in the large play. We are associating ourselves with the big players like Xylem and Veolia to address that large scale market on the distributed network. As you as we have talked about, we have technology which we have, you know taken rights for the complete India as smart ops which should help us address this distributed treatment space.
In past also I have addressed that we are looking at not only the contracting or EPC projects but we are also looking for from a technology point of view and that’s something which we believe we are currently very aggressively looking at the smart ops and then an associated technologies so that it gives us an edge on the treatment space that we believe will get unlocked in India in a large way.
Unidentified Participant
Good. And just to understand from technology angle who are the other players who you. Who you think could ultimately play in this? Are there a lot of international players and how are we positioning ourselves and.
Has it tendering for all of this already started or. It’s still early details for this opportunity.
Mr. Sandeep Garg
So this obviously the. The traction on the treatment has started coming in. The big boys as I said are the Olias Zealands. Yeah. Local, local level, we attack. Etc. Etc. So there are a number of players in terms of technology that have the capability of depending upon what is the size and because this is a very detailed question and also involves strategic placement that the company would want to make, I would request that this question.
Unidentified Participant
Sure. All right, thank you. Just last question is with regards to. I mean so with regards to this quarter we should just be like looking at it as an aberration where some amount of revenue recognition is actually deferred as opposed to anything really actually structural in any way.
Mr. Sandeep Garg
Yeah, it’s just an aberration at this point in time it’s just purely and purely look some three things coming and hitting us simultaneously. So that’s something which is not a normal business scenario. You. You can catal for one or two things going up or down three things in a simultaneously is any case.
Unidentified Participant
Thank you. That’s all.
Mr. Sandeep Garg
Thank you. Thank you.
operator
Thank you. We’ll take our next question from the line of Radha Agarwala from BNK Securities. Please go ahead.
Unidentified Participant
Hello sir. Thank you for the opportunity. Sir. In the Anta Samaria project wanted to understand how much NLP was received and what are the payment schedules. And consequently is this asset getting bidders? If yes then is it at or above the past valuations of 1.5 price to book.
Mr. Lalit Jain
We have received 72 quote as annuity. With respect to valuation. We are in this in process and. We’Ll come back to you on right valuation.
Mr. Sandeep Garg
So let me add to what has been stated by Lale. To answer your question. Do we anticipate our equity returns to be 1.5 times the equity invested? The answer is we expect better results. However if the process is on, once the process gets completed we will definitely share the specific details.
Unidentified Participant
Okay. So thanks sir. Secondly, regarding the oring dust blocks. Earlier there were two blocks in college and another in Assam that had been written off or 200 crores from the bookshelf SUV as there was no oil and gas findings. So in FY25 after considering these write offs the book value was 300 crores in orange. How much further write off are you expecting in this segment?
Mr. Sandeep Garg
Interesting one, let me assure you rather the only three blocks that we have been talking about in past have been the Mumbai block, the B9 block and now C37. For at least the last nine months I have not talked about this GK block. This was never being considered in our business plan. What we were speaking to you and we continue to speak this. This block was not being run by us. We were not the leaders. ONGC were the operators. Operators have certain responsibilities and authorities. So we have decided not to consider it into our business plan.
So whatever business plans that I’ve shared with you to the extent shared remain unchanged. Now we are in aggressive, as I said in my opening statement, we are in active discussions with ONGC or other agencies at the state at the center level to optimize the infrastructure available so that the production can take place at the earliest at the lowest cost. Those things should get, you know, crystallized enough in a month or so or two months. So wherein then we will be in a position to share more details because then the field development plans can be finalized and the economics be worked out.
So I think I will request you to wait for a couple of months more before we can start sharing certain details on oil and gas. And I can assure you there are no further write offs that we anticipate in any of these three blocks which are the business blocks for us.
Unidentified Participant
So this 48 crores write off is covered in the 300 crores that we have recorded in the bond.
Mr. Sandeep Garg
Sorry.
Unidentified Participant
The 48 crores write off in this quarter. Was this amount considered in the 300 book crores that were there in the assets?
Mr. Saurin Patel
No, no. Basically we have at concrete level we have considered in financials. So fair value we will do in the March 26 quarter.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to management for closing comments over to you.
Mr. Sandeep Garg
Thank you. I thank all of you for joining us today. To sum up, I would like to reiterate that we remain committed to creating long term value for our stakeholders with a continued focus on improving return on equity and return on capital employed. We hope we have addressed all your queries. Should you have any further questions or feedback, please feel free to reach out to our CFO or the investor relations team. Thank you and good day.
operator
Thank you on behalf of JM Financial Institutional securities limited that concludes this conference. Thank you for joining us. You may now disconnect your lines.