Welspun Enterprises Limited (NSE: WELENT) Q4 2025 Earnings Call dated May. 16, 2025
Corporate Participants:
Sandeep Garg — MD & Director
Saurin Patel — Managing Director
Lalit Jain — CFO
Analysts:
Parth Thakkar — Analyst
Vaibhav Shah — Analyst
Koustubh Shaha — Analyst
Vishal Periwal — Analyst
Riddhesh Gandhi — Analyst
Raman Venkata Kerti — Analyst
Sarvesh Gupta — Analyst
Presentation:
Operator
Thank you ladies and gentlemen, good day, and welcome to the Welspin Enterprises 4Q and FY ’25 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 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 Path Thakkar from JM Financial Institutional Securities Limited. Thank you, and over to you, sir.
Parth Thakkar — Analyst
Thank you. Thank you,. On behalf of JM Financial, I welcome everybody to Q4 and FY ’25 earnings conference Call of Enterprises Limited. I will now hand over the call to Mr Salil Bawa, Group Head, Investor Relations of Spin World. Over to you, sir. Thank you,. Good afternoon to all of you. On behalf of Welspun Enterprises Limited, I welcome all of you to the Q4 FY ’25 and full-year earnings call. Along with me today, I have Mr Sandeep Garg, Managing Director of Welspun Enterprises; Mr Sorin Patel, Managing Director of Welspun Michigan Engineers Limited; Mr Abhishek, Chief Executive Officer of Welspun Enterprises Limited; Lalit Jain, CFO, Enterprises Limited; and Sangita, who leads Investor Relations for Enterprises. We hope you have had a chance to review the presentation and the press release, which was uploaded on the exchanges yesterday. This presentation and press release is also available on the company’s website. During the discussion, we may be making references to this presentation. Please do take a moment to review the safe-harbor statement in our presentation. As usual, we will start the forum with the opening remarks by our leadership team and then we’ll open the floor for your questions. Once the call gets over, should you have any further queries that remain unanswered, please feel free-to reach-out to any one of us. With that, I would now like to hand over the floor to Mr Sandeep Garg, Managing Director of Enterprises. Over to you, Mr.
Sandeep Garg — MD & Director
Thank you, Salil. Good afternoon and everyone and thank you for joining us today. Welcome to Welspun Enterprises Q4 and FY ’25 earnings conference call. I would like to thank all the attendees for their presence. I’m pleased to report a strong performance for FY ’25, exceeding our guidance. Our consolidated revenues grew by 25% year-on-year against our guidance of 15% to 20% growth. Thus reaching INR3,584 crores. The EBITDA increased by 18% to INR730 crores against our guidance of INR700 crores.
Our subsidiary,, Michigan Engineers Limited or WMEL also recorded impressive results with revenues of INR667 crore, a 62% increase over the previous year. MR. Patel, Managing Director of WMEL, will share deeper insights into the subsidiary’s performance during his opening remarks. On standalone basis, we continue to maintain a healthy cash reserve of INR1,061 crores with zero-debt which positions us for strong — which positions us strongly to pursue our future growth initiatives. MR. Lalit Jain, our CFO, will provide a detailed overview of our financial performance shortly. Let me now provide an update on our key projects further to this.
MR. Patel will provide deeper insights in our water initiatives. Anta Simaria Road project, the 8.5 kilometer bridge project is almost complete and provisional completion certificate PCOD is expected before the end of this month. Just to recall it is India’s widest extra dose cable state road bridge with 34 meter wide deck and wider span being 115 meters. It bridges 1.8 kilometers over the river Ganda. It will connect Patna and Bego Sarai thus reducing the travel time by over one-hour. It is a symbol of innovation, resilience and an engineering model.
Next, I would want to talk about Mukarbach of Panipad or MCP project. We expect to receive the completion certificate within this quarter and following that, we will proceed with the transfer of our balanced 51% stake in the project to on our pre-agreed terms. In-line with our asset asset-light strategy, we will be monetizing these assets during this year. Or I would say we would be attempting to monetize these assets during this year.
Varanasi VRP, the project is advancing steadily and would be completed by this calendar year. SNRP,, Naghe Road project this project has achieved over 60% physical progress and is on-track to receive PCOD in this calendar year. Our journey at Enterprise has been truly transformative. While we begin as a traditional road infrastructure player, we strategically diversified into the water sector seven years ago and initiative today accounts for nearly 85% of our current order book.
To strengthen our capabilities in specialized infrastructure, particularly in niche area of tunneling, we have increased our stake to 60% during the year in Michigan Engineers, which has been rebranded as Welspun Michigan Engineers WMEA. With this move Welspun Enterprises has evolved into a differentiated company entering highly promising and technically advanced segments. Looking ahead, we Enterprise as a technology-led leader in water sector with our strategy anchored around four pillars, transmission treatment, bulk, distribution and operation and maintenance services.
With WMEL as our innovation and technology hub, we are integrating advanced solutions like SmartOps to enhance project efficiency and environmental impact. Through these synergies we are poised to redefine sustainable water management across India. On the oil and gas side we have signed an agreement for a block special DSF round for C37, a small block adjacent to our existing blocks and are at various stages of discussions for the evacuation of gas. Once the evacuation arrangements for the cluster development are in-place, we shall be in a position to come out with a final strategy.
Moving on to our order book, I’m pleased to share that our consolidated order book stands at INR14,300 crores. Of this approximately INR10,700 crore is contributed by our water segment, which includes operation and maintenance of INR4,400 crores and around INR2,150 crores from tunneling vertical. And the transportation vertical sector stands at the remaining approximately INR1,600 crores. We maintain a strong outlook on future bidding across all our core verticals and at the subsidiary level.
We have proactively identified robust opportunities in areas including bulk water supply, seawage treatment plant solutions, water transmission and irrigations, canals, desalination and selective road and water BOT projects commanding higher margins. Given the depth of these opportunities and our strategic positioning, I am confident that we will — we are on — well on-track to close the current fiscal with a consolidated unexecuted order book of over INR20,000 crores talking about awards and recognition, WEL and WMEL have consistently pushed boundaries, setting new benchmarks in quality and execution with unwavering commitment to excellence, innovation and transformative impact on the industry. I would want to make a special mention for the recognitions that we have got of that of Mr S. Madhwan, Lead Independent Director, WEL who has been recognized as the Best Independent Director for 2023-’24 by Asian Center for Corporate Governance and Sustainability. As already mentioned last-time that as a part of our commitment to sustainable development, we unveiled — unveiled our inaugural sustainability report themed transforming infrastructure and advancing sustainability.
We institutionalized ESG governance through the executive sustainability strategy and initiated ESG roadmap rollout plan. In acknowledgment, WL secured two ESG awards at Awards 2025 for excellence in carbon emission reduction and water circularity and women leadership and sustainable sector. As we strategically pivot towards the high-margin water infrastructure segment, we remain confident in Our track — our trajectory for robust and sustainable growth. Coming to the FY ’26 guidance, we reiterate our Investor Day and subsequent Q3 FY ’25 communication. We are confident of achieving 15% to 20% year-on-year growth in consolidated top-line revenues for FY ’26. Importantly, over 90% of this revenue is already secured in our current order book, underscoring the visibility, strength and execution certainty embedded in our pipeline. While the overall revenue growth outlook remains strong, execution in FY ’26 will be back-ended. Both Bandu water treatment project and Dharavi per tunnel projects are at various stages of pre-implementation activities and expected to gain physical momentum post-monsoon. Thus, approximately 60% of the revenues are expected in the H2 compared to a more even split in FY ’25. With a clear execution roadmap and better project financials, we are targeting consolidated EBITDA growth of approximately 20% plus in FY ’26, reflecting the improving margin profile. Our return on capital employed will hence improve to above 15%, excluding monetization gains. With planned monetization events, as I spoke about and MCP, we foresee the to be significantly higher in FY ’26. We remain confident that our strategic focus backed by a robust order book, disciplined execution and a targeted shift to high-return segments will continue to drive long-term value-creation for our stakeholders. With these words, I would want to transfer the call to Mr Patel., over to you.
Saurin Patel — Managing Director
Thank you, Sandeep and good afternoon, everyone. At Enterprises, we are strengthening our position in-the-water infrastructure sector by focusing on delivering resilient, scalable and sustainable solutions powered by technology. We are strategically expanding our capabilities across high-growth, high-impact areas such as tunneling, desalination, irrigation and large-scale water delivery systems. These sectors are not just poised for strong growth, they are also essential for enabling sustainable development and unlocking significant returns.
By aligning our technical expertise with emerging public policy, cutting-edge technology and private investment, we are positioning Wellspun to drive accretive returns over the long-term, ensuring both sustainable growth and transformative value-creation for our investors. Having talked about our strategy, now I’m pleased to take you through the latest developments in our water vertical along with our strategic roadmap for the future.
Let me now take you through the key project updates on our water vertical. First, the Darawi wastewater treatment facility. The project is progressing steadily. The SBR civil works are now completed up to the third basin level and RCC work is going on for the fourth and final level, marking an important milestone. The administrative building has been fully operational for the past four months. Filing work for the pumping station is well underway.
We’ve reached 16 meters of excavation depth in 50% of the designated structure area out of a total planned depth of 30 meters. Key equipment from our technology partner for the SBR has already been delivered to the site. We are on-track to start project commissioning by November 2026, ahead of the schedule. The water treatment facility, I’m pleased to share that we have secured all the critical approvals for the Banduk water treatment facility, including clearances from the forest and ecosensitive zone committees. Site work has commenced and will gain momentum post monsoons.
On the UPJM project, which is a transformative opportunity. The project is on-track for completion by September 2026. Once completed, it will have a profound impact on the lives of over 2,500 villages in UP. Now for an update on our subsidiary, Wellspun Michigan Engineers, Welspun Michigan Enterprise Limited, WMEL. For FY ’25, WMEL posted revenues of INR668 crores, marking a robust 62% growth over FY ’24’s revenue of INR410 crores.
The company has maintained a very healthy EBITDA margin of 21% and a ROCE of 29%. In terms of segment contribution, tunneling, including segmental, micro tunneling and large-diameter contributed 62% of our revenue. Rehabilitation of underground structures made-up 17%, followed by bridges and smart ops at 5% each and marine at 3%. As of, 31 March 2025, WMEL’s order book stands at Indian INR2,925 crore, which is nearly three times our FY ’25 revenue, a strong indicator of sustained momentum.
Regarding Smart ops, I’m happy to inform that we successfully completed the Durgakun renovation project in UP in-quarter four FY ’25. Our next project, the Chandrabhaga River project at the Vital in Panderpur, Maharashtra will be completed in the coming month. Furthermore, we are retrofitting an existing STP of 15 MLD in Matura, where the works will commence in June 2025. This will open up new avenues for. We look-forward to building on this progress and continuing to create sustainable, impactful water infrastructure solutions. Thank you once again for your time and interest. Over to you,.
Lalit Jain — CFO
Thank you,, and good afternoon, everyone. I appreciate your interest in our business and the company’s performance. I will now take you briefly through our Q4 FY ’25 financial results, followed by an overview of our full-year performance and segmental updates. Talking about the Q4 FY ’25 consol financial performance, revenue from operation is INR1,021 crore, up by 24% year-on-year. Our reported EBITDA margin is 19.3% for the quarter compared to 18.1% in Q4 FY ’24.
This margin expansion, coupled with robust top-line growth drove a strong 32% year-on-year growth in consol EBITDA, which stood at INR207 crores. Consequently, the operating leverage led to a handsome 36% increase in PAT to INR105 crores. For the full-fiscal year FY ’25, consol performance revenue from operation is INR3,584 crores, marking a 25% increase year-on-year, thus demonstrating consistent executions, EBITDA at INR730 crores beat the full-year guidance of INR700 crores shared with earlier in this fiscal year. PAT is INR354 crore, a 11% year-on-year growth.
Adjusted to a significant one-off contractors claim in last financial year in our operating margin, the comparable year-on-year PAT growth would be higher at 20%. For the full-fiscal year FY ’25 standalone performance. Revenue from operation is INR2827 crores, marking a 15% increase over FY ’24. EBITDA stand at INR455 crore, it is a 4% growth against INR439 crore FY ’24. As already explained above, after adjusting one-off claim in last year, our growth for the year is 13%.
Our balance sheet remained robust. On a standalone basis, net-worth stand at INR2690 crores with a net cash position of INR1,061 crore and consol cash is INR1,155 crore, more than enough for future investment in water, EPC capability and capital for high-return selective BOT project in Water and road at consol, net-debt stand at INR145 crore, reflecting the debt taken at HEM SPV level, reflecting the strong progress of those projects during the year as highlighted earlier by Mr Sandeepgar.
Now turning towards the segmental performance. On consolid basis, segment-wise revenue was as below for the year. As you can observe, we have pivoted during FY ’25 where water and tunnel comprise 55% Of revenue-share versus 42% last financial year. This trend will further continue in the coming years as the company pivots in water-focused innovation and technology lead business. The higher relative margin in water and tunnel segment reflect in the quarterly results, EBITDA margin profile improvements. This also leads to margin improvement for financial year ’26 as guided by Mr Sandeep Garg earlier. Coming to FY ’26 revenue guidance, I’m summarizing the guidance given by Mr Sandeep Garg. We expect 15% to 20% consolidated revenue growth in FY ’26. With our 90% already secured, execution will be H2 heavy, driven by project approvals and execution schedule. EBITDA is set to grow 20% plus. Plus with this loss raising above 15%. Further will be significantly higher on monetization of our assets. I further guided that our standalone balance sheet will continue to be debt-free. Our strategic pivot to Water Infra ensures strong sustainable value-creation. Thank you. We can open the floor for questions.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. 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 Shah from JM Financial Limited. Please go-ahead.
Vaibhav Shah
Yeah. So you provided the guidance on consol front. Can you provide the same for standalone revenue and EBITDA margins for FY ’26 and the guidance given for standalone will also be in the ranges of 15% to 20%, both for the EBITDA and for the revenue. And EBITDA margins would be — the EBITDA margins will be slightly higher at a standalone level than the current levels. Okay. Sir, secondly, we have seen that there has been a good improvement in some margins in 4th-quarter. So what has driven that improvement, both on Y-o-Y and Q-on-Q terms.
Sandeep Garg
So the — as I said, it’s a question of what projects contributed to how much of percentage. As the projects mix changes, the mark each project has its own markups and hence you will see this improvement as the water — water projects become more prominent in our contribution to revenue and EBITDA. If you were to look at the segmental reporting, you would notice that the segmental reporting of water stands at 21% is for the FY ’25 and we see that trend to continue going-forward.
Vaibhav Shah
. Okay. Sir, have you seen some improvement in terms of payments in GJM projects and what would be our outstanding receivables from GGM?
Sandeep Garg
So at this point in time, the — there is a slight slowdown at of payment at UPJ GM over at a vertical level, we are good because all other water projects are getting paid-in time or ahead of time. Our net block at the UPJ GM would be somewhere in the close — to the close of about INR200 crores. You mean net receivables from UPGM outstanding? Yes, that’s correct.
Vaibhav Shah
Okay. Sir, lastly, what would be our overall bid pipeline, if you can quantify and the mix in terms of segments as well?
Sandeep Garg
So we expect — segmental mix may be a bit difficult to give, but our guidance to you is that we will be taking substantive orders in water. And our target is to be up — booking orders upwards of INR10,000 crores in the year. For us to meet the guideline of being more than INR20,000 crores unexecuted order book at the end of FY ’26. So by water you mean that it would be mainly on the treatment side and not on JJM side in terms of the incremental inflows. So we are not likely to participate in any JJM projects at this point in time. Okay.
Vaibhav Shah
Okay. Thank you, sir. I’ll fall-back in queue. Thank you.
Operator
Thank you. Thank you. Next question is from the line of Shaha from Wallford PMS. Please go-ahead.
Koustubh Shaha
Hi, sir. Thanks for taking my question and congrats on the great set of numbers. My question was on the fundraise that the company is starting to do of INR1,000 crores. So the major utilization of this would be towards working capital for tendering of new projects or it would be towards some capex as well? Just wanted some idea on that. Thank you,.
Lalit Jain
The — this is enabling the authority that we are taking. We see a lot of projects are being announced in terms of the BOT projects by both NHAI and the states. We also see certain projects in water getting — moving to HAM and POT space. So this is just an enabling kind of authorization, which we are seeking should we require funds in future and we get orders beyond what we are currently forecasting, then we may use that authorization. Otherwise, we don’t necessarily see within the current order profile that we will need funds to be raised.
Koustubh Shaha
Okay, great. Second question was on the current year total order intake, was it all about INR4,000 odd crores if I have done the calculation right. Is that the correct number?
Lalit Jain
Because at the consol level, the order intake was in the ranges of INR3,200 crores. INR3,200 crores.
Koustubh Shaha
Okay. Fair enough. And lastly, on the capex side, are we planning any incremental capex in next one or two years, but still we continue to be on the asset right.
Saurin Patel
Sorry. So as far as far as Enterprise is concerned, there will be no CapEx. However, for the Michigan, there will be a small amount of capex going-forward.
Koustubh Shaha
Okay, sir. Great. Thanks. Thanks for answering my question. That’s it from my side. Thank you.
Operator
Thank you. We take the next question from the line of Diraj Ram from Ashika Institutional Equities. Please go-ahead.
Vaibhav Shah
Hi, sir. Thank you for taking my question. Just wanted to know what is the L1 orders that we currently have and also last quarter you said that you are L1 for close to INR1,850 odd crores. So how much has been converted in 4Q?
Saurin Patel
So at this point in time, we are not L1 on any other projects other than what was stated earlier. And from the media, we get — we are made aware that those — that project is unlikely to be awarded. However, we have no official confirmation from the client.
Vaibhav Shah
Okay. And this receivables under service concession, which has been increasing Y-o-Y, you could throw some light on this?
Sandeep Garg
Yeah. This is Lalit Jain. This increase basically, we have a two project, one SNRP and another Anda project. This is HEM project. So under that we have got 50% money from the NHI and remaining 60% will get under the annuity. So this is getting accumulated and we will receive this money next 15 years as annuity.
Vaibhav Shah
Okay, sir. Okay. And just last question on smart Ops. So we had three projects as per last quarter — last quarter in smart in which one we recently, as said is completed. So how much revenue can we expect in smart for FY ’26 and does the have higher-margin compared to other projects in, Michigan?
Sandeep Garg
So I would let Mr Patel answer the question in terms of smart ops. But just to clarify that the — as far as the margins are concerned, the margins will — at a steady-state operation Will come in about three, four years because it is right now in a concept and selling and marketing and developmental phase. So we do not expect the margins to be any different than what we are currently chugging in-the-water segment. And just to brief –, if you would want to take this question on projects. So yeah, the projects that we were doing last year are either successfully completed or well on the way to completion.
Saurin Patel
As I explained in my earlier conversation, the Temple will be completed in the coming months. And unfortunately got delayed because the work order from there was delayed due to circumstances not in our control, but we finally gotten the work order and in the next 60 days, we are due to deliver that. So yeah, projects other than what we had announced last year have been completed and handed over.
Vaibhav Shah
Got it, sir. And last question, what is the guidance — growth guidance for WMEN for FY ’26?
Lalit Jain
So as I said, we are expecting we are expecting the guidance for, Michigan to be increased revenue to grow by about similar numbers as the FY ’25. So this would be somewhere around 50% and there wrong.
Vaibhav Shah
Got it, sir. Thank you. Thank you.
Operator
Next question is from the line of Parth Thakkar from JM Financial. Please go-ahead.
Koustubh Shaha
Hello, sir. Thank you for the opportunity. So out of our total current order backlog, what would be our executable backlog?
Saurin Patel
So I think the whole order that we have is executable order book. The — I think the question is about what is the split between the design-and-build executable versus O&M related executable. So the split is that O&M related, which is going to be long-term revenue generation is about INR4,400 crores and the balance is all design-and-build operational — operatable order book.
Koustubh Shaha
Okay. Thank you, sir. And also would we be looking for participation in PPP projects? Y
Saurin Patel
Eah, we surely are looking-forward to participating in PPP projects both on the road as well as in the order segment.
Koustubh Shaha
Okay. Thank you, sir. Those were my questions. Thank you.
Operator
Thank you. We take the next question from the line of Vishal Periwal from Antique Stock Broking. Please go-ahead.
Vishal Periwal
Thanks for the opportunity. Yes, sir, sorry. Thanks for the opportunity. One comment — a question on this capex front. So you did mention that we are planning capex at a standalone in Michigan. Will it be possible to share the number, sir?
Lalit Jain
So in the coming year, we don’t expect any major capex or spend in, Michigan sorry and correct me if I’m wrong, it will be in the ranges of INR20 crores to INR30 crores.
Vishal Periwal
Yeah. Okay, right. And in terms of investment, I think your press release did mention around INR130 crore INR140 odd crore that we’ll be putting up in, I mean couple of assets that we have. That’s a fair number to take, right?
Lalit Jain
That is — that is primarily into the road HAM projects that we are investing in. Okay. And the asset monetization that we are planning in the road that we are planning in FY ’26 will be in the BOT of route. Okay. So we are — we are planning asset monetization in FY ’26 for two road projects. Just to recall, we have three road projects which are open for monetization. MCP or Mukarwach of Panipad was monetized partially earlier on the Actus deal, we have a pre-agreed term to monetize the balance 51%, which we expect to happen in FY ’26. We are also targeting to monetize the Anta road project, which is likely to get the PCOD within this month-in this financial year. And thus, we will be left with one more road project to be monetized with this SNRP, which we expect to happen later.
Vishal Periwal
Okay. So in terms of book-value of investment, what could be that number for the FY ’26 monetization that we are planning?
Lalit Jain
So it will be around INR300 crores.
Vishal Periwal
Okay. Sure, sir. And GJM, what is the order book that we have?
Saurin Patel
The total order book as we expect of the UPJM is about INR2,800 crores. And the unexecuted order book will be in the ranges of about INR1,000 crores.
Vishal Periwal
Okay, sure. And on this revenue that we have booked, roughly like INR3,600-odd crores, what could be the O&M part in this revenue, sir?
Lalit Jain
Okay. There is practically very limited INR2 crores of O&M revenue, which is going to start now as the projects get completed.
Vishal Periwal
Right. I think, yeah. That’s all from my side, sir. Thank you.
Operator
Thank you, Vishal. Thank you. Thank you. Next question is from the line of Shah from JM Financial Limited. Please go-ahead.
Vaibhav Shah
So both WEL and WMEL have interest in-the-water business. So what are our plans to make it more efficient.
Saurin Patel
Yes. So we have already started operational efficiencies to kick-in as I had told — sorry, and Patel is now heading the complete vertical of water irrespective of the corporate wheels. So we are bringing in the operational efficiencies as we speak. The — as far as the corporate structures are concerned, we will let you know if there is any development at an appropriate time?
Vaibhav Shah
Okay. Sir, secondly, how is the competitive intensity across the verticals? You mentioned that there are nowVE models in water business as well, especially on the HAM side. So how are you seeing the competition in both in water and waste business?
Sandeep Garg
So I think I would want to just clarify water is our main business. So as I said, we are focused on water. So competitive intensity in trans — road is relatively high. In routine water projects, the intensity is medium. And in specialized road projects, specialized water projects, it’s further reduces. However, in terms of — in terms of BOT, I — we expect the competitive intensity to remain medium to low.
Vaibhav Shah
Okay. Thank you, sir. Thank you. Thank you.
Operator
Next question is from the line of Ridhesh Gandhi from Discover Cap Capital. Please go-ahead.
Riddhesh Gandhi
Hi, sir. Interconnect and congratulations on the numbers. Just had a question on your oil and gas. I know you guys obviously have like clocks where I mean some of the other book players have been able to find reasonable reserves. Could you just give us an update on where you guys are on your oil and gas, what the plans are? And what kind of — what kind of timing we can expect to see some sort of unlocking in the value from your oil and gas assets?
Saurin Patel
Yeah. Thank you,. So oil and gas, as you know, is a controlled sector. So there are lot of obligations on the parties under the contract. So we are — we are in the process of our development plans to be approved by the government, specifically the evacuation plan, which is critical for the — we know the reserves, we know what the resources can be. But until unless the evacuation plans are in-place, it is difficult for us to quantify anything. We are currently under discussion with the — the government for defining the evacuation plan. Once the evacuation plan is agreed with the government and the third-parties, we will be in a position to come back to you of our complete plan on oil and gas. However, it is clear to us that
Sandeep Garg
All our blocks going to be developed as a cluster and not as an individual block because that’s the way all our development plans have been proposed to the government.
Riddhesh Gandhi
And is there any indication or both with regards to the timelines to get the evacuation plans in-place and also any sort of indicative reserves you can give us some insights on to?
Saurin Patel
So as earlier, I have been maintaining the results in all the three blocks put together is in initially in-place in the ranges of 1. However, evacuation, as you know, the — how much we can produce out of this will be determined upon the complete plan and this and the formation’s ability to produce. So all this is part of the developmental plan and the evacuation routes will determine how much of back pressure is required and how much we will be able to extract. So all this I can only share once the developmental plans have been approved by the government, I will request you to wait till that time.
Riddhesh Gandhi
Okay. Sir. And the other question is with regards to your ECE or actually water infrastructure projects, which we are — which we are bidding on. Who do we typically are going to come up heads-up against in these bids, which we usually do as in like who would be our main competitors who we end-up competing with.
Saurin Patel
So I mean, it depends upon because we are many verticals on-the-water itself. Depending upon what we are doing, we come up with different competitors. But at a macro-level, large projects, it will be people like LNT, NCC, etc., etc. And a smaller play with — sorry, and would you like to add to what your area of people who compete with you? Considering Sandeep, we are in such a specialized area of micro tunning or rehabilitation or segmental tunnels. Typically, there are a handful of people. We claim to be the small big boy. So sometimes we compete against the likes of the ITDCs or the make us or the. At other times for smaller projects, we have local competitors like Gypsum who come across pan-India to compete with us. So few and far in-between, but the same faces everywhere.
Operator
Got it. Sir. And the — so sorry to interrupt. MR. Gandhi, may I request that you return to the question queue for follow-up questions. There are several other participants waiting their turn. Okay. Thank. Next question is from — is from the line of Raman Kevi from Sequent Investments. Please go-ahead.
Raman Venkata Kerti
Hello, sir, can you hear me, sir, my first question is with respect to the Smart Ops business. So one, what is the market opportunity size for the of Smart Op business and will there be any impact in terms of costing due to the UK. India free-trade? And can you repeat the second part of your question? So will there — will there be any impact on the costing due to the UK India key we see so I don’t think that there is any cost impact because of that any way to tell you what the top of the canvas or opportunity for smart is it is technology which we are trying to prove across all the use cases.
Saurin Patel
We have been able to now demonstrate its utilization in terms of reservoir cleanings. We are on the verge of — with the — with the retrofitting at in a position to say how we can retrofit the existing STPs. Based on the outcome of these two things, will we be able to really truly identify what can be done on the wastewater side. We are parallelly also proving the technology on the industry side based on that, it will be appropriate for us to share the larger numbers that can ban out. I would suggest that we wait for another six to nine months before we get into the details of the annual business plan on smartups
Raman Venkata Kerti
Okay, sir. My second question is on the order book side. So one of INR1,400 — INR14,300 crores is the current order book. What is the execution timeline and what is the as one order book?
Sandeep Garg
Yeah. So as I said earlier, we are not L1 in any of the projects other than the one of INR18,000. There were INR1,850 crores a project that we had declared earlier, which from the media report it is that it is not likely to be awarded but we have not heard from the client as of now the in terms of your question of on the order book, the currently the order book is split into about 12,000 odd crores, 12,500 crores on-the-water and water associated infrastructure and about INR1,600 crores in terms of road. Hello.
Raman Venkata Kerti
Yeah, yeah. So one small doubt sir, sorry if this may be repetitive, but I missed the initial part of the commentary, but I would like to know the reason for INR1,000 crore fundraise by the company.
Sandeep Garg
So I there is — it is an enabling provision, as I said earlier also, because we see lot of opportunities in BOT Road as well as to water segment. However, if the current forecast of the order is what materializes and it is not about that, we don’t foresee that we would be requiring to raise the funds. However, if we are — if we get more orders than what we are currently targeting. This is — this enabling provision may be utilized in that case. Otherwise, right now, we have enough cash on the balance sheet of about 1060 crores at standalone and INR1,500150 crores at consol level.
Raman Venkata Kerti
So what is the bid book currently? What is — can you repeat? The order bit pipeline.
Sandeep Garg
Yeah, you’re looking for bid pipeline. So our — yes, current hit rate is about one in three projects we hit. So we are targeting more than INR30,000 crores at this point in time.
Operator
Okay, thank you, sir. Thank you. Thank you. Next question is from the line of Sarvesh Gupta from Maximal Capital. Please go-ahead hello Sarvesh we can’t hear you Sarvesh we can’t hear you can you leave a bit louder please hello. Hello?
Sarvesh Gupta
Yeah. Yeah. Sir, on your O&M order book, so in the last two years, that has increased from INR1,800 crores to INR4,400 crores. And as you said that the revenue realization is only like INR2 crores in FY ’25. So going-forward, how much of revenues are we expecting from this and what could be the margins on these revenues?
Saurin Patel
So O&M is of the projects that we do are design-build. So as the projects will get completed, the O&M will start after completion and accordingly, the revenues will be recognized. Now it is early days for us to give a guidance on O&M margins, but we expect the O&M margins to be consistent with our current EBITDA levels. And we will get to know once we are — once we get into O&M and we have an experience about it. So I would want to — I would suggest that we stay a bit more patient as the O&M revenue will start coming in, we will be more — we’ll guide you better about what returns to expect, but it is a long-term Revenue visibility as well as profit visibility and it gets scaled-up gradually as we take more-and-more orders on what a vertical. And what can we expect in this year sir FY ’26 it is still it is very low in the ranges of IN 10 odd crores because only UPJM some portion of it will start getting into O&M stage and certain annual orders are also on the O&M stage the WMEL revenues, some part of it is being booked under water vertical
Sarvesh Gupta
Also, sir, because tunneling itself is only INR700 crores and WMAL revenues you said was INR662 crore. So what is the portion of WMEL booked underwater? So tunneling is entirely for the WMEAL, nothing is WEL.
Saurin Patel
So I think if I get your question correct, the question is, is there any dug any water? No. The answer is no. Okay. Okay. And then sir, the related question was, for example, in the tunneling EBIT margins, we have seen some 250 basis-point decrease in the EBIT margin. So any particular reason why the tunneling margins have come down this year? I think too deep a question, I would suggest that you come and have a discussion because we don’t — we don’t — your numbers we don’t understand. So maybe we are not able to understand this clearly. I would request that if you could start with top-line, sir. I’ll take it. And thank you.
Sarvesh Gupta
Just one more query was, you said that the book-value of the road assets that we want to monetize in FY ’26 is INR1,300 crores. Is that right?
Lalit Jain
No, no, no. INR300 crores, INR300 crores. INR300 crores. Okay.
Sarvesh Gupta
Okay. Thank you, sir, and all the best. Thank you.
Operator
Thank you. Next question is from the line of Dhiraj Ram from Ashika Institutional Equities. Please go-ahead.
Koustubh Shaha
So thank you for taking up my question again. And the debt levels has increased Y-o-Y and since I also know that we have been raising fund. So how do you see the debt levels in FY ’26?
Lalit Jain
So you’re referring to consolidated balance sheet. Yes, and yes, there have been debt drawn on the — largely on the SNRP projects, which was earlier funded by the equity. And hence you see that is the increase in the debt as minor debt has been drawn in the Antha Simaria. Now as the Anta Simaria will be hived off, the debt alongside of it will also go. Hopefully, it will be done in FY ’26. So alongside with it, there is a debt of almost on — so I will answer this question. Yeah. With respect to project, we have a debt of INR615 crore. So it will be outfit if we sell this project. With respect to SNRP project, we are having INR600 crore debt outstanding. Further, we’ll draw another INR600 crore to complete the project. So if you can say that level remains same if we enter some other sale also.
Koustubh Shaha
Okay. Okay, got it, sir. And last question. Sir, in Q2 FY ’25, you have said that almost INR3 lakh crores are from tunneling. I mean the market size of tunneling is almost INR3 lakh crores for next seven years and you’re targeting 10% to 20% market-share in this. So which poses that we need to secure close to INR4,000 crore of orders every year. Isn’t it the big — very big number, numbers?
Saurin Patel
Yeah. So that’s exactly what I keep on saying. The segmental split of an order is difficult when you are at crossover verticals. So I would — I would look, I would request that you look at long-term guidance as a long-term overall guidance, but and the split is not possible for us to predict in the — given that it is a competitive word and a bidding environment. But overall guidance remain unchanged in terms of our order book target for about INR10,000 crores plus in this FY ’26.
Koustubh Shaha
Got it, sir. Got it. Yeah, that’s it. Thank you, sir. Thank you. Thank you.
Operator
We will take the last question from the line of Ridhesh Gandhi from Discover Cap Capital. Please go-ahead.
Riddhesh Gandhi
Hi, sir, just a quick question was with regards to the large amount of the cash we have on books. Are we looking to use that for inorganic or ultimately use that for oil and gas investments? Are we just keeping it as optionality for other products.
Saurin Patel
So as I said Mr Gandhi, that we are expecting a lot of projects both in road and water on the BOTL probably HAM in case of water as well. So we see a lot of opportunities to deploy this cash painfully in the business and that is why we are retaining this cash on the balance sheet. Our enabling provision — enabling provision to raise further money is only to ensure that should we get more orders, we should be in a position to fund those. Got it. But for our existing guidance, we would not need to raise equity in case it goes over and above that. So we are not expecting — the short answer to your question is, we are not expecting any equity raise this financial year as we speak.
Riddhesh Gandhi
Got it. Okay. Thanks. Thank you.
Operator
Okay. Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to Mr for closing comments.
Sandeep Garg
Can you 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. Good day.
Operator
On behalf of JM Financial Institutional Securities Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.