Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Welspun Enterprises Limited (NSE: WELENT) Q4 2026 Earnings Call dated May. 15, 2026
Corporate Participants:
Hardik Debar — President Finance
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:
Sailesh Raja — Analyst
Sanjay Shah — Analyst
Sarvesh Gupta — Analyst
Unidentified Participant
Vaibhav Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The Wellspun Enterprises Limited Q4FY26 earnings conference call hosted by 361 Capital Market Private 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 and then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Silesh Raja from 361 Capital Market Private Limited. Thank you. And over to you sir.
Sailesh Raja — Analyst
Yeah, thanks Sadhgur. Good afternoon everyone and thank you for joining Wilson Enterprise Limited Q4 and FY26 earnings conference call. I would now like to invite Mr. Hardik from Wellspan to introduce the management team members who have joined us on this call following which we will begin the Q and A session. Yeah. Over to you Mr. Hardik.
Hardik Debar — President Finance
Good afternoon everyone. This is Hardik Debar here. I am President Finance at Wellspan Enterprise and CFO Wellspan Michigan Engineers Limited. First of all, thank you everyone for taking the time out today and joining us on this quarterly and annual call. It’s pleasing to say that we have had a good quarter and overall a good year to begin with and to take you through the journey of FY26. I have the entire senior management of Wellspun Enterprise headed by Mr. Sandeep Garg who’s the Managing Director, Mr.
Sauron Patel who heads the integrated Water vertical and is the Managing Director at Wellspun Michigan. Mr. Abhishek Chaudhary, CEO of the Transport business and looks at digitalization and other initiatives for Wellspan Enterprise and my colleague Mr. Lalit Jain, the Chief Financial Officer at Wellspurn Enterprise. With this I hand over the platform to Mr. Sandeep Garn to make his opening remarks and take you through the journey of Wellspan Enterprise in FY26.
Mr. Sandeep Garg — Managing Director
Thank you Ardik. Good afternoon everyone and thank you for joining us today. It is a pleasure to connect with you again and share our progress for Q4 and FY26. Before I start my address, I would want to say that during the address we may be making some forward looking statements. Please note our safe harbor clause in respect of the same. I am pleased to share that your company has received a letter of award for the Punishrur elevated road project with a total cost of approximately 7,300 crore. While our Transportation CEO Mr.
Abhishek Chaudhary will discuss the project in greater detail during his address, I would like to highlight that this win represents an important milestone for us. It not only strengthens our presence in the road infrastructure segment but also reaffirms our ability to secure and execute large, technically complex projects along with building a diversified and high quality infrastructure portfolio. With the award of this project along with the addition of Pantrapur Water Treatment project, we have added over 10,000 crore to our order book during the year which is in line with the guidance given at the beginning of FY26.
As a result, our consolidated order book now stands at approximately Rupees twenty thousand crores providing a steady revenue visibility ahead. Coming to our financial performance, we delivered a healthy performance during the quarter. Consolidated revenue growth at 14% year on year to INR 1,199 crore. Our consolidated EBITDA grew at 31% year on year to rupees 272 crore on account of our disciplined execution and focus on operational efficiency. For FY26, consolidated revenue stood at 3,615 crore in line with our revenue guidance of 3,600 crores.
EBITDA grew 16% year on year while EBITDA margins for the year stood at 22% exceeding our guided range of 18 to 20%. Our balance sheet continues to remain strong with consolidated cash of approximately 1,700 crore. This gives us the ability to pursue growth opportunities while staying prudent on capital allocation. Mr. Lalit Jain, our CFO will shortly present a detailed overview of our financial performance for FY26. WMEL reported a revenue of 874 crores registering a robust 31% growth over the previous year with a stable 21% EBITDA margin.
The performance across both the quarter and the full year was driven by strong execution momentum and sustained progress across key verticals. Mr. Sarin Patel, Managing Director of WMEL and Head of Integrated Water Vertical, will share further insights regarding the subsidiaries performance and broader developments across water infrastructure business during his address. I’m pleased to share that along with our business growth, we have continued to strengthen our organizational culture and governance framework.
During the FY26 we took meaningful steps towards building a stronger performance driven organization through enhanced accountability and focused performance management practices. These efforts led to a 4% year on year reduction in attrition. We continue to invest in talent development, succession planning and leadership readiness, further improving organizational agility and developing bench strength. Our diversity ratio also improved from 6.3% in FY25 to 7.9 in FY26. All these efforts have been recognized externally with the company being certified as a great place to work for the second time, reflecting the strength of our culture and our core light values, learning, innovation, trust, transparency and endurance.
I would also like to briefly highlight the recognitions received by the company. Wellspurn Enterprises Ltd. And Wellspurn Michigan Engineers Ltd. Continue to be acknowledged for their consistent performance, strong execution capabilities and adherence to quality standards amongst others. Some of the notable awards include Best Construction Methodology of the Year award at the Build India Awards for the Anta Semaria Road Project, a Bridge Over Ganga River Innovative Climate Action Award at India Climate Salman 2026 by carbon markets association of India, Best Tunnel of Year by Indian Institute of Trenchless Technology for Trenchless Excellence Awards Best Leadership in HSC Excellence for Wellespond, Michigan As a company these recognitions further motivate us to enhance our operational efficiencies, take more challenges and improve upon our own standards.
Coming to the outlook backed by the consolidated order book of approximately 20,000 crores, a strong bid pipeline and our disciplined approach towards risk management, capital allocation and returns, we remain well positioned to deliver our medium term revenue targets. Prolonged disturbances in geopolitical situations and disruptions in global supply chain could create certain near term cost and execution challenges. We remain confident in the resilience of our business model and and execution capabilities.
With this I would like to conclude my opening remarks and invite Saurin Patel Head Integrated Water Vertical and MD of Westburn, Michigan to take you through the water Business and Wellstone Michigan Engineers Limited Updates over to you Saray.
Mr. Saurin Patel — Head – Integrated Water & Managing Director
Thank you Sandeep and good afternoon everyone. It’s a pleasure to interact once again with you. As always, I will take you through the key developments in our water business project updates, financial performance of our subsidiary and the outlook for the business. At the outset it gives me pleasure to state that in less than a decade our water business has evolved into a meaningful and value accretive vertical for Wellspan Enterprise backed by scale, execution capability and improving visibility of long term revenues.
We are currently executing multiple EPC projects of varying diversity and complexity starting with the Dharavi Wastewater Treatment Facility 418 MLD, a first of its kind multi level plant designed to address urban space constraints. This project is progressing well with physical completion of around 65%. It was recently reviewed by the newly appointed BMC Commissioner in April which reflects the importance and scale of the project. We are targeting commissioning by July 2027 followed by a 15 year O&M phase providing long term revenue visibility.
On the UP Jal Jeevan Mission projects. We have achieved progress of approximately 80% and expect the completion in FY27 at the Bandu 2000 MLD Water Treatment Plant excavation works are currently in progress. The civil contractor has been fully mobilized and has commenced PCC and rock anchoring works. The overall project progress stands at approximately 20% and the project remains on schedule for completion by June 2029. The recently awarded Panjarpur 910 MLD Water Treatment Plant is in the early stages of execution.
Mobilization is underway, advances have been received. Key pre clearances are in progress and initial billing has already commenced this quarter. On the Dharavi Ghat Kopat tunnel project, we are awaiting the final High Court clearance post which the shaft work is likely to commence. We are currently executing three segmental tunnel boring machine projects in Mumbai targeted for completion in FY27 in the rehabilitation segments, the use of innovative geopolymer lining technology for 17 km of Mumbai storm water drains is progressing well and remains on track for completion in FY27.
In Varodara, the 2 and a half meter 2 and a half kilometer blast reinforced polymer lined mega trunk drain project is being completed nearly a year ahead of schedule aimed at mitigating severe water flooding in the areas affected on SmartOps, our wastewater initiative. Within just 24 months of launching it, we have successfully delivered several notable projects focused on the cleaning of lakes, rivers and Kunst and are currently executing two sewage treatment plants, one in Mathura and the other in Orissa.
Let me now turn to the financial performance of the subsidiary wellspun Michigan Engineers Limited. WMEL delivered a well rounded performance both for the quarter and for the full year. For quarter four FY26, revenue grew 32% year on year to rupees 351 crore compared to rupees 265 crore in the corresponding quarter last year. EBITDA increased 43% year on year to rupees 72 crore from rupees 50.5 crore in quarter four of FY25. Consequently, EBITDA margins expanded by about 100 basis points to 20% in quarter four FY26 compared to 19% in quarter four FY25 on a full year basis.
Revenue grew 31% year on year to rupees 874 crore in FY26 compared to rupees 668 crore in FY25. EBITDA increased 29% year on year to rupees 185 crore from rupees 143 crore in FY25, while EBITDA margins remained resilient at 21%. In terms of revenue composition, rehabilitation projects have seen strong traction and now contribute approximately 28% of FY26 revenues, improving from 17% in FY25. Going forward, WAL will continue to focus on three key segments, tunnels, rehabilitation and pumping projects, each offering a strong pipeline and scalable opportunities.
It is targeting a CAGR growth of over 25% over the next three years. On the overall water business, our order book including tunnels and O and M stands at around Rupees fourteen thousand crore providing a strong multi year revenue visibility supported by a robust bid pipeline across water and wastewater treatment, large scale water supply systems and tunneling. We remain as wellspun enterprises well positioned to capitalize on the sector’s expanding opportunities and drive sustainable long term value creation.
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 Soran and good afternoon everyone. We appreciate your continued participation and interest in our company. As always, I’ll briefly take you through the progress across our transportation portfolio, key project milestones and subsequently provide an update on our digital transformation initiatives. Let me begin with our transportation portfolio. Execution across our projects remains stable reflecting our continued focus on disciplined delivery and operational efficiency. For the Anta Simaria Project in Bihar, we have received the first annuity payment and in line with our disciplined capital recycling and asset light strategy, we are in advanced stages of monetizing this asset.
This is expected to further strengthen our balance sheet and enhance capital efficiency. With respect to Varanasi Aurangabad Road Project progress remains steady with project completion targeted for Q1 FY27. Execution on the SNRP project in the state of Tamil Nadu and Puducherry is also progressing well and is expected to be completed in Q2 FY27. As communicated earlier, we have received the Letter of Award for Pune Shuru Elevated Road Project. The project involves the development of a six lane partially elevated highway corridor on National Highway 753F covering the Pune to Shuru stretch in Maharashtra spanning approximately 53.4 km including nearly 36 km of elevated corridor.
The project reflects both the scale and technical complexity that align well with our core execution capabilities which was earlier demonstrated through projects like Anta Samaria. The punishiru project will be executed under design, build, finance, operate and transfer which is DBFORT model with a total project cost of approximately 7,300 crore. The concession period is 29 years which comprises of 4 years of construction followed by 25 years of tolling rights. Strategically, this project strengthens our transportation portfolio and deepens our presence in one of Maharashtra’s fastest growing infrastructure corridor.
The project further strengthens long term revenue visibility while reinforcing our position in complex transportation infrastructure. The project is expected to enhance connectivity across key urban and industrial hubs including Waghooli, Lonikant, Ranjan Kao and Shikrapur by easing congestion, reducing travel time between Pune and Chiduri and thus improving freight movement efficiencies. Over the long term, the corridor is expected to support industrial growth, improve logistic efficiency, reduce transportation cost and create enormous employment opportunity, aligning well within our strategy of developing infrastructure sets that deliver sustainable economic and social value.
With this addition, our transportation order book stands at approximately 6,000 crore including the EPC value of Pune Shiru, providing healthy execution visibility over the medium term. Going forward within the transportation vertical, we will continue to focus selectively on technically complex road projects, elevated corridors, tunnels and projects under EPC and BOT models where execution and engineering capability provide a clear competitive advantage. Overall, we remain focused on disciplined execution, timely monetization, prudent capital allocation and strengthening the quality and visibility of our transportation infrastructure portfolio.
Let me now briefly touch upon our Digital Transformation initiative. Digital Transformation is increasingly becoming an integral part of our operations across all business verticals, namely transportation, water tunneling. These initiatives span the entire project life cycle as well as the key support functions with the objective of building a future ready and operationally agile organization. Our focus is on leveraging technology to improve execution efficiencies, strengthen governance, enhance productivity and build scalable operational capabilities.
Key initiatives include the implementation of 3D, 4D 5D building information modeling for our Dharavi sewage treatment plant and Bhandu water treatment projects which will also be replicated for the newly run Power Anjarapur water treatment project and Punisher. We have launched an RFI application at the BANDU site to enable real time reporting and monitoring of the project progress. As communicated earlier, we have also successfully migrated to S4HANA SAP4HANA, creating a strong and more integrated digital backbone for the organization.
In addition, we recently rolled out an E governance platform to promote paperless operations, expedite approvals and create a centralized digital repository of records and documentation. We are also developing AI driven tools for quality management, safety monitoring and real time execution tracking at the project sites. Further, we are working on an AI enabled platform for the operation management and maintenance of tunnel boring machines to improve our operational productivity and efficiency. Over the coming phases we will migrate towards a unified enterprise architecture where all applications will be hosted on a single integrated platform enabling improved data visibility and process efficiency across the organization.
At the same time, our supply chain ecosystem is being digitized to strengthen processes at the end, accelerate procurement cycle, improve supplier management and enhance overall efficiencies. Overall, these initiatives are helping us build stronger execution capabilities, improving efficiencies and create a scalable platform for long term sustainable growth. With that I would now like to hand it over to Mr. Lalit Jain, our Chief Financial Officer. Over to you Lalit.
Mr. Lalit Jain — Chief Financial Officer
Thank you Abhishek. Good afternoon everyone and thank you for joining us today. I will briefly walk you through our financial performance for Q4 and FY26 along with some key business highlights. Starting with Q4 FY26 we reported console revenue of rupees 1199 crores reflecting a healthy year on year growth of 14% driven by strong execution across our projects. Console EBITDA for the quarter grew by 31% year on year to Rs. 272 crore compared to Rupees 207 crore in Q4FY25. The improvement was supported by better operating efficiencies and continued cost optimization initiatives.
Consequently, EBITDA margin expanded to 22% during the quarter compared to 19.3% in the corresponding period last year. Profit after tax for Q4FY26 stood at rupees 163 crore registering a strong growth of 54% year on year. Now moving to full year performance. I am pleased to share that we achieved our revenue guidance for FY26 against our guidance of rupees 3600 crore. We delivered revenue of rupees 3615 crore added by strong execution during the fourth quarter while overall revenue decline marginally by 2% year on year.
Profitability improved meaningfully during the year. Console EBITDA increased by 16% year on year to Rs. 845 crore while EBITDA margin expanded by 350 basis point to 22%. This improvement reflect our continued focus on execution efficiency, better project mix, disciplined cost management. Profit after tax for financial year 26 increased by 11% on year on year basis to rupees 393 crores. Now coming to Segmental performance. The tunneling and rehabilitation segment revenue delivered strong growth of 37% year on year supported by healthy execution momentum and improved project mix.
The water segment revenue witnessed a marginalized decline by 3% primarily due to slower execution in the UPJJN project. Revenue from the transportation segment declined by 17% year on year mainly on account of project completion and delays in the awarding of Pune Sirudor project. Now turning to the balance sheet. We continue to maintain a strong financial position supported by robust order book of rupees twenty thousand crore and a healthy balance sheet. As of 31st March 2026 our net worth stood at rupees 3261 crore.
We also maintain a strong cash balance of rupees 1728 crore with net debt remaining low at rupees 43 crore. During the year, CRISIL revised our outlook from stable to positive while reaffirming our long term rating of Crisil AA and short term rating of CRISIL A1. Additionally, GRA assigned an AA rating for the incremental working capital limit of Rs. 400 crore, further validating the strength of our financial profile. Going ahead with the strong order book, healthy liquidity position and continued focus on disciplined execution, we remain confident of delivering sustainable growth and long term value creation.
With that I would now like to hand over the call back to the host. Thank you. Thank you.
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and then one on their touchstone phone. If you wish to remove yourself from the question queue, you may press Star and then 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 again to register for a question. You may press STAR and then one. Your first question comes from the line of Sanjay Shah from KSA Securities.
Please go ahead.
Questions and Answers:
Sanjay Shah
Good afternoon gentlemen and thanks for opportunity and sincerely appreciate the opening remarks from all the division head and Very helpful sir, very helpful. So my question was regarding Pune Sirur, can you. Can you highlight upon the expected project IRR, equity commitment, monetization timeline, tolling, economics etc.
Mr. Sandeep Garg
It’s a very detailed question. Thank you for the interest in the company and I really appreciate that. The as Abhishek addressed the timelines for the project is 4 years for construction and 25 years of tolling thereafter. Now coming to the Equity IRR we as we have always planned for Equity IRR upwards of 18% as a basic Governance. We are targeting similar returns on this project. For a detailed conversation, I would request you to get in touch with our team, the IR team or the CFO for them to take you through every detail.
Sanjay Shah
Yes, sir. My next question was regarding can management share the expected monetization timeline for Anda Samaria SNRP and future boot project?
Mr. Sandeep Garg
So as an asset light model principle, we are targeting to monetize the Anta Semaria project for which we have received the first annuity within H1FY27 subject to getting the right valuation for it. We are, we will be targeting to similarly monetize the SNRP or Satanatha from Naga Batunam Road project once it is complete and we have received the first annuity so it may go into the FY28. As a principle, we stay committed to asset monetization at an appropriate time so that we can create value for the stakeholders at the right value as well as term the equity quickly for future growth.
Sanjay Shah
Fine. So my last question was on SmartOps. How do management see revenue potential margin profile, scalability over next three to five years?
Mr. Sandeep Garg
We are very positive about these smart ops. We are taking strides to establish the technology in all spheres that it can deliver value. We have already established it in the space of Kund and water body clearance retrofit of the STPS is currently in progress as well as establishing it in a flowing drain. So this is where we are currently focusing. The next focus will through move into the industrial space as well as standalone sewage treated plants of a particular size and scale. We believe that it’s a very good technology to support a quick deployment of treating the wastewater and it is practically small footprint and quick deployment technology.
So we believe that there are multiple usages of the technology which should unfold going forward in next couple of years.
Sanjay Shah
Very helpful. Thank you very much sir.
Operator
Thank you. The next question comes from the line of Sarvesh Gupta from Maximil Capital. Please go ahead.
Sarvesh Gupta
Yeah. Hi, good afternoon and thank you for the opportunity. So sir, first question is on the, you know, the revenue outlook for FY27. So if we look in the last four years of our company we had like two, two years where the revenues broadly remained similar and then we had a step up jump. So while you have a medium term guidance of 15 to 20% but given that this year we did not grow our revenue as such, so can we expect 25 to 30% growth in FY27?
Mr. Sandeep Garg
So our guidance will stay to 15, 20% as we have always maintained and we will Continue to maintained, we shall target higher growths for sure. But given the headwinds that we are facing in terms of supply chain disruptions as well as in terms of the labor situation, given the various challenges, I would not want to give any, any guidance beyond the range that we have already specified.
Sarvesh Gupta
Okay. Secondly sir, on the fundraising proposal which was mentioned in the results release, so now we recently raised 500 crores and for I think qualifying for the adjusted network criteria area etc. So now this thousand crore fundraise has been announced. So you know, given that we already have a very cash rich balance sheet and then there is a lot of monetization we are targeting. So somehow it looks like, you know, these constant fundraisers are creating a very lopsided balance sheet with a lot of cash and very little debt.
So how do we look about on this particular point?
Mr. Sandeep Garg
Thank you for raising this question. Let me clarify. First of all this is just an enabling approval. As of now I can clarify. There is no proposal to raise this fund as we see the normal business unfold. This is more to prepare the business for any opportunity that may come in and which may need liquidity over and above what is currently forecasted. You are absolutely right and I would want to correct that. We have preferential warrants of thousand crores out of which 250 crores has been received.
We are in a position to call up for 750crores over, over a period of 18 months from the start of the warrant period. So we have that liquidity and we do have assets to liquidate. In terms of the Anta simaria, we have 51% of Mukarbach of Panipat and we hopefully will complete the project of Satanathapuram Naga Pattanam in this financial year which should be available for the next year. So right now in a normal business scenario we do not anticipate any further fundraise. This is purely an enabling, enabling request which is from a point of view of preparing the organization should the opportunities be larger than what we have anticipated on our future forecast.
Sarvesh Gupta
Understood sir. And on wmel, sir. So you know this has. So we spent two, three years here and now the company is performing well and we have a 60% odd stake. So is there any plan to also utilize some of the cash? We have to sort of take up the minority interest there.
Mr. Sandeep Garg
So we would be very happy to consolidate further on the balance sheet provided the existing shareholders would want to sell. However, I don’t understand. I don’t think that they are right now very eager to sell. They are very confident that we are going to create larger values on the platform. So as they are holding on to it. But should there be an opportunity we would be definitely looking at it the if it is available at the right price.
Sarvesh Gupta
Okay. And on Pune project. So when do we expect to commence the construction and what kind of revenue booking can be done here or the. Or these expenditure that can be done here in this financial year?
Mr. Abhishek Chaudhary
Yeah. Hi. Thank you for this question. I’m Abhishek regarding this project. As you are aware this is a DBFort project which means that we are supposed to do the financial closure for which we have a time limit of around six months. So during this six months period we will be undertaking the project development activities which is with regard to the utility shifting, with regard to setting up of casting yards etc. Etc. We plan to have our financial closure probably in the month of October or November basis which an appointed date will be declared.
So we’ll be left with close to around four months of real execution which can contribute to the top line of FY27. So we expect somewhere in the range of say 500 to 600 cr which will be contributed during this year by punish route.
Sarvesh Gupta
Okay. Thank you sir and all the best.
Operator
Thank you. The next question comes from the line of Radha from Motila Loswal. Please go ahead.
Unidentified Participant
Hi sir. Thank you for the opportunity and congratulations on very good results. Sir, in the last call you had highlighted that FY26 revenue base is low. Hence the company is expecting to grow FY27 revenue by 20%. However, if we delve into the individual project schedule it implies that we need one more large order winning the next few months to be able to start execution in the second half. Are we on track for the same, sir?
Mr. Sandeep Garg
So thank you rather for a very deep analysis of our business. And yes, you are right that we are going to be looking for order booking. As you know these are large contracts. So saying that we will be able to target it in the next two months or three months is a matter which I would not want to dwell upon. But there is a clear focus on adding order book. And we expect the order book to be added somewhere around 8 to 10,000 crores in FY27 and we would want to add as soon as is possible. We are working towards it.
Hopefully we will be able to do it within this H1 which is sufficient for us to meet our guided target of 15 to 20% growth in. And to give you an idea that the uncovered portion of our revenue from the guidance is close to 8 to 10% only which is uncovered and we are reasonably confident that we should be able to cover it in H1 so as to meet the guidance.
Unidentified Participant
Understood. Secondly, you know in the Punisher project was received in last quarter and you are expecting the execution to start happening from the you can say last four months of this year. So that means between receiving the project and the execution there is a large gap, so about 3/4 gap. So even if you receive the project in, I mean project in, so is it still fair to assume that execution can start in the second half of the year or will it be taken forward to FY28?
Mr. Sandeep Garg
So rather, the point that I think partially was addressed by Abhishek is that during the developmental phase between now and the start of physical road building, we would be we will be doing utility shifting, we’ll be doing certain establishments, we are entitled to do lot of clearing, etc. Etc. So it is not that we will not be recognizing revenue totally in this period of six months, but the ramp up will take place post the appointed date is the point that Abhishek wanted to mention. Similar situation will unfold for the projects that we get for after in this year.
The assumption that you are making in the question, to my best of my mind is that if we were to get only a bot project, bot projects generally start chugging in the revenue about six months to nine months after the award. However, if those are EPC or other model forms of contract agreement, the revenue recognition starts earlier. So the projects that we are targeting are also in the EPC space. So we are reasonably confident that we will be able to meet the guidance of 15 to 20% growth on the revenue.
Unidentified Participant
Hope I’ve answered
Mr. Sandeep Garg
Your question.
Unidentified Participant
Yes, yes, that’s very clear. The second question sir, regarding in your opening remarks you mentioned that near term there is cost and execution challenges due to geopolitical issues. So since the company is having entirely domestic business and also complete pass through cost pass through quarters with the customers, I request you to please elaborate a little bit more on this aspect.
Mr. Sandeep Garg
So rather it is true that most of our contracts which have the WPI CPI linked escalation provisions. However, and it is also true that the government is trying to respond to the challenges which are happening because of the geopolitical situation in the world by coming up with the as you are, as you may be aware, the Ministry of Road Transport has come up with the clear office guidelines that bitumen will be the cost of bitumen will be on actuals rather than based on wpicpi. They are also, they’ve also come up with a clear statement that they will be paying for even the hybrid annuity model on a monthly basis rather than on a milestone linked basis.
The Finance Ministry has come up with force majeure provisions which are helpful. Hopefully those will be adopted by the other ministries. So I think on an overall basis the government is working towards easing of the pain. However you cannot. It will be. It will be prudent on our part as a conservative company to caution that there could be a small medium term or near term impacts which we are more than confident that we will be able to overcome. And the balance sheet is resilient and that is why we are are.
Despite our EBITDA margins being in the ranges of 22.5% for FY26, we are giving a guidance of only 18% plus. So we are acutely aware of all this and we factored all this into our guidance so that there is no shock that can come in near term issues notwithstanding timely.
Unidentified Participant
Thank you. So lastly. Sorry to interrupt.
Operator
Radha ma’, am, may we request you to return to the queue for follow up questions please as there are several participants waiting for them. Thank you so much. Your next question comes from the line of web of Shah from JM Financial. Please go ahead.
Vaibhav Shah
Yeah. So what would be the EPC value of Pune project?
Mr. Sandeep Garg
Thank you. Above it is approximately 5,400 crores for as an EPC cost of the project.
Vaibhav Shah
Okay. And sir, you mentioned that this year we will do closer to 5 to 600 crores of revenue from the project. So next year can we see closer, closer to around 1800 kind of revenue. 18 to 2000 crores of revenue from the project.
Mr. Sandeep Garg
I, I I mean we are giving a guidance of FY27. However if the discussion is about punish rules long term how it will unfold, I would request Weber to have a interaction with the IR stroke CFO who will take you through from all the details on the punisher rule. I hope that works for you.
Vaibhav Shah
Yeah, sure. And the lastly land status for the project. So we are confident of starting the works producing AD by November or December.
Mr. Sandeep Garg
So the good part of this project is that it is as Abhishek mentioned, it is primarily 35 km of elevated structure which is on the median or which is supposed to be built on the median of exit existing road project which caters to almost like 70% of the cost of the project or more than that. So that front is available right now, right there. So the only land acquisition which is really required is mostly for tolling and the access to the elevated sections. And very little land acquisition otherwise is required.
So there is a very, very little land acquisition requirement as an overall on the project. So we are reasonably confident that we will be able to not only start the project in time, but we will be able to complete the project on time.
Vaibhav Shah
Okay, what will be our investment in the oranges business so far?
Mr. Sandeep Garg
Investment? So it’s about 500 crores at this point in time.
Vaibhav Shah
This is our share.
Mr. Sandeep Garg
Yes, yes.
Vaibhav Shah
Oh thank you sir. Those are my questions.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, we request you to limit to two questions each and rejoin the queue for any follow up questions. Your next question comes from the line of Pavik Shah from Invexa Capital. Please go ahead.
Unidentified Participant
Yeah, I’m audible.
Sanjay Shah
Yeah, a bit louder will help.
Unidentified Participant
Yeah. Hi sir. Yeah, so first question is how much like what is the guidance for say Wellspurn Michigan for this year? Like how much do we expect the growth to be and the margins there? And what is the cross on order book say from Wellspurn Enterprises to Wellspun Michigan?
Mr. Saurin Patel
So hi, this is Saurin. We expect our revenue basis to be growing at a rate of 20%. We have said CAGR of 25 over the next couple of years. But 20% is what we are predicting for the FY27 CAGR season.
Unidentified Participant
Okay. So and our cross order book is how much from WellSpan Enterprises?
Mr. Sandeep Garg
14,000
Mr. Saurin Patel
For water.
Mr. Sandeep Garg
So if the question is, if I get you correctly Bhavik, the question is what is the portion of the contracts intersect between W E L&WMEL.
Unidentified Participant
So
Mr. Sandeep Garg
There is about 1100 from thousand crores. Between thousand and 1100 crores is the interstate party
Unidentified Participant
Transaction on
Mr. Sandeep Garg
Ravine contract?
Unidentified Participant
Is that the question? That was it. Right.
Mr. Sandeep Garg
And
Unidentified Participant
If I heard the guidance correctly, the EBITDA margin guidance has been lowered to 18%.
Mr. Sandeep Garg
We guided 18% plus on and that’s the guidance that we would give. We are acutely aware of the the supply chain disruptions. We do not want to over guide the plus can be anything. So I would only want to say that.
Unidentified Participant
Okay. Mr. Shah, sorry to interrupt.
Operator
We request you to return to the queue for follow up question. Yeah,
Unidentified Participant
Just this last one. Yeah. How much is the investment pending in SNRP project in this year? FY27
Mr. Lalit Jain
We have fully invested in the SNRP project. Okay,
Unidentified Participant
So no investment, no
Mr. Lalit Jain
For the equity required.
Unidentified Participant
Okay, thank you so much. And all the Best.
Mr. Lalit Jain
Thank you.
Operator
Your next question comes from the line of Anand Darshan. Please go ahead.
Unidentified Participant
Hello sir. Am I audible? Yes, you are. Yeah. Thanks for the opportunity, sir. And congrats on the great set of results. So my first question is regarding the transportation. By the end of financial year 25 we had an outstanding order backlog of near 2950 crores from three projects of Honda, Samaria, SNRP and Varanasi. After our execution in financial year 26 the balance stands at around 500 crores. Can you give me the breakup of this 500 crores between SNRP and Varanasi? And also we just added Punishur project.
And usually it takes around six months time to start executing this. So do you expect that to be a drop in revenue from the transportation in current year at 27?
Mr. Sandeep Garg
So you’re right. There could be a marginal drop in the overall segmental revenue for this year. However, this is this subject. This presupposes that there are no additional projects that are kicking in until the revenue. So as was covered by the in the address by CFO on a segmental basis there is a transportation vertical which has seen a degrowth this year as well. However, we don’t see any substantive change now in the segmental revenue regulation.
Unidentified Participant
Can you give me the breakup of that 500 crores unexecuted order back let’s say from between SNRP and Varanasi.
Mr. Sandeep Garg
So Varanasi is about 50, 60 crores and about 500. 500 to 550 crores is between. Between the Varana SNR. Sorry.
Unidentified Participant
Okay. Okay, sir. And my second question is regarding the water project. Our expected executable EPC order is around 850 crores from three projects of devas Bandu Pand. So what will drive the top line growth in FY27 compared to FY26 revenue of 1240 crores. And how much orders execution are we expecting from Punjabur water projects?
Mr. Sandeep Garg
I think I am not able to correlate your numbers in the question. Our order book as of integrated water stands at about 14,000 crores which includes the 5,000 crores of O&M. So effectively about 9,000 crores of outstanding orders. So we have a reasonably confident of meeting our guidance on the transport on the water vertical to be able to achieve the desired revenue.
Unidentified Participant
So how much are we expecting from Punjabur water budget? Sir,
Mr. Sandeep Garg
I would request that if we need to go project by project you please get in touch with the IR or cfo. They will be very happy to take you through.
Unidentified Participant
Okay. Sir. Okay. Thank you sir.
Mr. Sandeep Garg
Thank you.
Operator
Thank you. The next question comes from the line of Vignesh Iyer from Sequent Investments. Please go ahead.
Unidentified Participant
Thank you for the opportunity. I’m audible right. Hello.
Mr. Sandeep Garg
Yes, you are.
Unidentified Participant
Yeah, thank you. So my question is more on the contract when we already have in place. Wanted to understand how does the raw material escalation impact us. And I want to understand more on the lines. If, if we how much percent of percentage of the escalation can we pass it on? If you could share your views on that.
Mr. Sandeep Garg
So to give you an example, it is this is illustrative and not definitive that I am going to respond to. Most of our contracts are covered by increase of which is based on WPI CPI formula and which by and large covers our all inflations which are under normal circumstances. Now these are not normal circumstances circumstances. The government is coming up with certain specific reliefs as I said earlier. Like in case of the mof. They are. They have come up for a relief on bitumen. So we expect that most of the cost increase on these projects where we have these escalation provisions, we should be able to transfer this the cost to the authority.
The only difference is on the BOT projects, the BOT projects do not have an escalation provision. However, we maintain enough contingencies for on the cost escalation and we are, we are confident that our provisions as at this point in time are more than sufficient to tide over any such near term challenge.
Unidentified Participant
So if I have to look at this guidance of 18% EBITDA for the full year, would it be fair to say that subject to this problem of the West Asia was resolving we would be ending this year with a very strong number and that might take the blended number to 18%. Would it be the correct way to read it?
Mr. Sandeep Garg
My guidance is 18% plus. If everything were to happen this plus can be as close to the current numbers as is possible. And if the chips are down, it could be whatever number. So we are the guidance is 18% plus. However, the projects in a normal circumstances are capable of delivering better ship in time.
Unidentified Participant
Right. Got it. That’s all from my side and all the best.
Operator
Thank you. Your next question comes from the line of Prateek Bhandari from Artventures. Please go ahead.
Unidentified Participant
Yeah, hi sir, thanks for the opportunity. Can you specify the margin trajectory that you are targeting for Wellspurn Michigan?
Mr. Sandeep Garg
So I mean in interest of time I will take this question. It has been consistently EBITDA of 21 to 22% and we expect it to remain in that range or better.
Unidentified Participant
And you also mentioned that you are currently having a strong bid pipeline. Can you throw some more light as to what is the size of the current bid pipeline and which segments you know this pipeline is from? This will give a better sense.
Mr. Sandeep Garg
Are you talking about at WEL level or
Unidentified Participant
At the company level? At wel. Standalone.
Mr. Sandeep Garg
At wel. We see a lot of opportunities coming on in the water transmission space. We are also looking at certain opportunities, opportunities of large scale treatment in water. We see a lot of opportunities in transport on BOT as well as complex projects in the space of structures and tunneling which will be the target for the company to look after. Now if you were to give us ask me the top of the canvas all put together, the top of the canvas will be like most likely in the range of about 2 lakh crores for the FY27.
However, we are as you know we are aim and shoot bidders. We are not going to be bidding for all of them. We have. We are going to target the projects which meet our revenue as well as our return expectations which is a matter of confidentiality and I may not be able to share with you.
Unidentified Participant
All right. And just one last question. You have given order inflow guidance to the tune of 8 to 10,000 crores for FY27. Is that correct?
Mr. Sandeep Garg
That
Unidentified Participant
Is correct. Okay, thank you.
Operator
Thank you. Your next question comes from Abeksha Maheshwari from AV Fincorp.
Unidentified Participant
Hi. All my questions have been answered. Thank you.
Operator
Thank you. Thank
Mr. Sandeep Garg
You.
Operator
The next question comes from Pavi Pogar from Astralid Investments. Please go ahead.
Unidentified Participant
Oh yeah. Hello. Good afternoon. So I just had one broad question. The highway pickup like the NHI disbursement in FY26 were quite small. So how do you see them picking up in FY27?
Mr. Sandeep Garg
So NHI order book has in the FY 2016 not as high as was in the earlier years. So there is a lot of pent up there are situation wherein the orders need to go out from NHI Strokemark. We believe that those will come forth in the year ahead. We also are looking at a lot of desire and need in these states to enhance the infrastructure. And since we are willing to play the BOT project scenario with our strong balance sheet and our execution capabilities. So we see a lot of opportunities unfolding going forward in the transportation segment as well.
And as I said we are going to focus on complex projects which allow us to create differentiated offering at a company level. I hope I’ve answered your question.
Unidentified Participant
Yeah, thanks a lot. That’s all.
Mr. Sandeep Garg
Thank you.
Operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Mr. Sandeep Garg
Thank you. I thank you all 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 361 Capital Markets Private Limited. That concludes this conference. Thank you everyone for joining us. And you may now disconnect your lines.