Q1 2027 NCC Ltd Earnings Call

August 7, 2026

Speaker #1: Ladies and gentlemen, good day, and welcome to the NCC Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator 1: Ladies and gentlemen, good day, and welcome to NCC Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vaibhav Shah. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day, and welcome to NCC Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vaibhav Shah. Thank you, and over to you, sir.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Vaibhav Shah. Thank you, and over to you, sir.

Speaker #2: Thank you, Tharu. On behalf of JM Financial, I welcome everybody to the Q1 FY27 earnings conference call of NCC Limited. We have, from the management today, Shri R.S. Raju, Director of Projects.

Vaibhav Shah: Thank you, Atharva. On behalf of JM Financial, I welcome everybody to 125 FY27 Earnings Conference Call of NCC Limited. We have from the management today, Shri R.S. Raju, Director of Projects, Shri Sanjay Pusarla, Executive Vice President, Finance and Accounts, and Shri Neerad Sharma, Head, Strategy and Investor Relations. I hand over the call to the management for their opening remarks, post which we can begin with the Q&A session. Over to you, sir.

Vaibhav Shah: Thank you, Atharva. On behalf of JM Financial, I welcome everybody to the Q1 FY27 Earnings Conference Call of NCC Limited. We have from the management today, Shri R.S. Raju, Director of Projects, Shri Sanjay Pusarla, Executive Vice President, Finance and Accounts, and Shri Neerad Sharma, Head, Strategy and Investor Relations. I hand over the call to the management for their opening remarks, post which we can begin with the Q&A session. Over to you, sir.

Speaker #2: Shri Sanjay Pusadla, Executive Vice President, Finance and Accounts, and Shri Neeraj Sharma, Head, Strategy and Investor Relations. Now, I hand over the call to the management for their opening remarks, post which we can begin with the Q&A session.

Speaker #2: Over to you, sir.

Speaker #3: Thank you very much, Vaibhav. Good morning, everyone. This is Neeraj. It gives me great pleasure to welcome you all to NCC's earnings call for the first quarter of the financial year 2026-27.

Neerad Sharma: Thank you very much, Vaibhav. Good morning, everyone. This is Neeraj. It gives me great pleasure to welcome you all to NCC's earnings call for the Q1 of the financial year FY26-27. At the very outset, I would like to thank each of you for joining this interactive session and for your continued interest and trust in NCC. I have with me my colleague, Mr. R.S. Raju, Director of Projects, and our CFO, Mr. Sanjay Pusarla. Yesterday, we have announced our unaudited financial results for the Q1 of FY27, which has been uploaded on our website and shared with the stock exchanges. We trust you have had the opportunity to review the financial statements and the investor's presentation. Before we begin, I would like to draw your attention to a brief disclaimer with a request to study a detailed version from our investor's presentation.

Neerad Sharma: Thank you very much, Vaibhav. Good morning, everyone. This is Neerad. It gives me great pleasure to welcome you all to NCC's earnings call for the Q1 of the financial year FY26-27. At the very outset, I would like to thank each of you for joining this interactive session and for your continued interest and trust in NCC. I have with me my colleague, Mr. R.S. Raju, Director of Projects, and our CFO, Mr. Sanjay Pusarla. Yesterday, we have announced our unaudited financial results for the Q1 of FY27, which has been uploaded on our website and shared with the stock exchanges. We trust you have had the opportunity to review the financial statements and the investor's presentation. Before we begin, I would like to draw your attention to a brief disclaimer with a request to study a detailed version from our investor's presentation.

Speaker #3: At the very outset, I would like to thank each of you for joining this interactive session, and for your continued interest and trust in NCC.

Speaker #3: I have with me my colleagues, Mr. R. S. Raju, Director of Projects, and our CFO, Mr. Sanjay Pusadla. Yesterday, we announced our unaudited financial results for the first quarter of FY27, which have been uploaded on our website and shared with the stock exchanges.

Speaker #3: We trust you have had the opportunity to review the financial statements and the investors' presentation. Before we begin, I would like to draw your attention to a brief disclaimer, with a request to study the detailed version in our investors' presentation.

Speaker #3: This presentation may contain certain forward-looking statements concerning NCC's future business prospects and profitability, which are subject to several risks and uncertainties. The actual results could materially differ from those indicated in such forward-looking statements.

Neerad Sharma: This presentation may contain certain forward-looking statements concerning NCC's future business prospects and profitability, which are subject to several risks and uncertainties. The actual results could materially differ from those indicated in such forward-looking statements. This interaction is broadly divided into three parts. In the first part, I will present a brief overview of the business environment, operational highlights, and our outlook for FY27. In the second part, our CFO will cover the detailed financial performance for the Q1 of FY27. In the third and last part, we will take up your questions. During the last quarter, the operating environment remained broadly stable, and execution across our project portfolio gathered pace. Project progress across the sector continues to be influenced by fund allocation, client approval, land availability, utility shifting, and billing milestones.

Speaker #3: This interaction is broadly divided into three parts. In the first part, I will present a brief overview of the business environment, operational highlights, and our outlook for FY27.

Speaker #3: In the second part, our CFO will cover the detailed financial performance for the first quarter of FY27. In the third and last part, we will take up your questions.

Speaker #3: During the last quarter, the operating environment remained broadly stable, and execution across our project portfolio gathered pace. Project progress across the sector continues to be influenced by fund allocation, client approvals, land availability, utility shifting, and billing milestones.

Speaker #3: And our teams have remained focused on mitigating these through discipline, project execution, and close engagement with our clients. Our underlying business fundamentals remain robust, supported by a diversified order book across seven business divisions and an established and proven project management framework.

Neerad Sharma: Our teams have remained focused on mitigating these through disciplined project execution and close engagement with our clients. Our underlying business fundamentals remain robust, supported by a diversified order book across seven business divisions and established and proven project management framework. As of 30 June 2026, our order book stands at INR 81,214 crore. During the quarter, we have booked new orders worth INR 3,889 crore, mainly from our buildings and water and railway divisions. This order book provides us a book to build of about 3.5x, giving healthy multi-year revenue visibility. If we take into account the projects bagged in the month of July, the total order inflow stands at INR 4,542 crore. In the Q1 of FY27, the company has reported a turnover of INR 5,842 crore on a consolidated basis as against INR.

Neerad Sharma: Our teams have remained focused on mitigating these through disciplined project execution and close engagement with our clients. Our underlying business fundamentals remain robust, supported by a diversified order book across seven business divisions and established and proven project management framework. As of 30 June 2026, our order book stands at INR 81,214 crore. During the quarter, we have booked new orders worth INR 3,889 crore, mainly from our buildings and water and railway divisions. This order book provides us a book-to-bill of about 3.5x, giving healthy multi-year revenue visibility. If we take into account the projects bagged in the month of July, the total order inflow stands at INR 4,542 crore. In the Q1 of FY27, the company has reported a turnover of INR 5,842 crore on a consolidated basis as against INR.

Speaker #3: As of 30th June 2026, our order book stands at Rs 81,200.14 crore. During the quarter, we have booked new orders worth Rs 3,889 crore, mainly from our Buildings & Water and Railways divisions.

Speaker #3: This order book provides us a book-to-build of about 3.5 times, giving healthy multi-year revenue visibility. If we take into account the project bagged in the month of July, the total order inflow stands at Rs.

Speaker #3: 4,542 crore. In the first quarter of FY27, the company has reported a turnover of Rs. 5,842 crore on a consolidated basis, as against Rs.

Speaker #3: Rs 5,208 crore in the corresponding quarter of the previous year, registering a growth of 12%. On a standalone basis, the number is the same, about 12% growth over the last quarter of the previous year.

Neerad Sharma: INR 5,208 crore in the corresponding quarter of the previous year, registering a growth of 12%. On a standalone basis, the number is same, about 12% growth over the last quarter of the previous year. The EBITDA margin for the quarter stands at 9.4% on consolidated basis as against 8.8% in the corresponding quarter of the previous year. I am pleased to share our guidance for FY27 with you. The order inflow for this financial year is a band, INR 22,000 crore to 25,000 crore. I repeat, INR 22,000 crore to 25,000 crore. Revenue growth of 8% to 10%, and EBITDA margin in the range of 8.5% to 9%. The broad components of this order book as of end of Q1 is, the Building division stands at INR 22,357 crore, which is about 28% of the total order book. The Transportation division has an order book of INR

Neerad Sharma: INR 5,208 crore in the corresponding quarter of the previous year, registering a growth of 12%. On a standalone basis, the number is same, about 12% growth over the last quarter of the previous year. The EBITDA margin for the quarter stands at 9.4% on consolidated basis as against 8.8% in the corresponding quarter of the previous year. I am pleased to share our guidance for FY27 with you. The order inflow for this financial year is a band, INR 22,000 to 25,000 crore. I repeat, INR 22,000 to 25,000 crore. Revenue growth of 8% to 10%, and EBITDA margin in the range of 8.5% to 9%. The broad components of this order book as of end of Q1 is, the Building division stands at INR 22,357 crore, which is about 28% of the total order book. The Transportation division has an order book of INR

Speaker #3: The EBITDA margin for the quarter stands at 9.4% on a consolidated basis, as against 8.8% in the corresponding quarter of the previous year. I am pleased to share our guidance for FY27 with you.

Speaker #3: The order inflow for this financial year is a band, Rs. 22,000 to to 25,000 crore. I repeat, 22,000 crore to 25,000 crore, revenue growth of 8% to 10%, and EBITDA margin in the range of 8.5% to 9%.

Speaker #3: The broad components of this order book, as of the end of Q1, the building division stands at Rs 22,357 crore, which is about 28% of the total order book.

Speaker #3: The Transportation Division has an order book of Rs 16,344 crore, which is about 20% of our total order book. The Electrical T&D stands at Rs...

Neerad Sharma: INR 16,344 crore, which is about 20% of our order book. The Electrical T&D stands at INR 13,312 crore, which is about 16% of the order book. The Mining division stands at INR 13,400 crore, representing 16% of the total order book. The Water and Railway divisions holds INR 10,994 crore, which is about 14% of the order book. The Irrigation division has INR 4,806 crore, which is about 6% of the order book. Now, I hand over to my colleague, Mr. Sanjay Pusarla, with a request to share the detailed financial performance of the company for the last quarter.

Speaker #3: Rs. 13,312 crore, which is about 16% of the order book. The mining division stands at Rs. 13,400 crore, representing 16% of the total order book.

Speaker #3: The water and railway divisions hold Rs 10,994 crore, which is about 14% of the order book. The irrigation division has Rs 4,806 crore, which is about 6% of the order book.

Speaker #3: Now, I hand over to my colleague, Mr. Sanjay Pusadla, with a request to share the detailed financial performance of the company for the last quarter.

Speaker #2: Thank you, Neeraj. This is Sanjay Pusadla, CFO from NCC Limited. Good morning, ladies and gentlemen. I am pleased to announce the financial results for Q1 FY27 for NCC Limited.

Sanjay Pusarla: Thank you, Neeraj. This is Sanjay Pusarla, CFO from NCC Limited. Good morning, ladies and gentlemen. I am pleased to announce the financial results for Q1 FY27 NCC Limited. Before I start my presentation, it is my pleasure to announce that the turnover in the Q1 of FY27, which is INR 4,912 crore, is the highest Q1 turnover reported in the history of NCC. As far as the consolidated turnover is concerned, we have reported INR 5,842 crore. This is also the highest turnover of NCC history. The earlier highest turnover was in standalone INR 4,747 crore, which was reported in Q1 of FY25, at consolidated INR 5,558 crore in Q1 of FY25. Now, I'll take you to my presentation. My announcement will be in the order of order book, revenue, profitability, debt movement, and some of the important balance sheet items. Coming to the order book.

Sanjay Pusarla: Thank you, Neerad. This is Sanjay Pusarla, CFO from NCC Limited. Good morning, ladies and gentlemen. I am pleased to announce the financial results for Q1 FY27 NCC Limited. Before I start my presentation, it is my pleasure to announce that the turnover in the Q1 of FY27, which is INR 4,912 crore, is the highest Q1 turnover reported in the history of NCC. As far as the consolidated turnover is concerned, we have reported INR 5,842 crore. This is also the highest turnover of NCC history. The earlier highest turnover was in standalone INR 4,747 crore, which was reported in Q1 of FY25, at consolidated INR 5,558 crore in Q1 of FY25. Now, I'll take you to my presentation. My announcement will be in the order of order book, revenue, profitability, debt movement, and some of the important balance sheet items. Coming to the order book.

Speaker #2: Before I start my presentation, it is my pleasure to announce that the turnover in Q1 of FY27, which is ₹4,912 crore, is the highest Q1 turnover reported in the history of NCC.

Speaker #2: And as far as the consolidated turnover is reported, ₹5,842 crores, this is also the highest turnover in NCC's history. The earlier highest turnover was in standalone, ₹4,747 crores, which was reported in Q1 of FY25; at consolidated, ₹5,558 crores in Q1 of FY25.

Speaker #2: Now I will take you to my presentation. My announcement will be in the order of order book, revenue, profitability, debt movement, and some of the important balance sheet items.

Speaker #2: Coming to the order book, our order book stands at ₹81,214 crore as at the end of June 30, 2026. As you are aware, the order book at the beginning of the year stood at ₹83,004 crore, and orders received during this quarter are ₹3,889 crore.

Sanjay Pusarla: Our order book stands at INR 81,214 crore as at the end of 30 June 2026. You are aware the order book at the beginning of the year stands at INR 83,004 crore, and orders received during this quarter is INR 3,889 crore. The order book contains a standalone of INR 71,312 crore, and from the subsidiaries, INR 9,902 crore. Coming to the revenue. At the standalone level, we have reported turnover of INR 4,952 crore in Q1 FY27 against a turnover of INR 4,430 crore in corresponding quarter of the previous year, thereby an increase of 12% reported. Consolidated turnover. Turnover reported in Q1 FY27 is INR 5,842 crore as against the turnover of INR 5,208 crore in the corresponding quarter of the previous year, thereby an increase of 12%. Coming to the profitability.

Speaker #2: The order book contains a standalone amount of ₹71,312 crore, and from the subsidiaries, ₹9,902 crore. Coming to the revenue, at the standalone level, we have reported a turnover of ₹4,952 crore in Q1 FY27, against a turnover of ₹4,430 crore in the corresponding quarter of the previous year, thereby an increase of 12% reported.

Speaker #2: Consolidated turnover reported in Q1 FY27 is ₹5,842 crores, as against the turnover of ₹5,208 crores in the corresponding quarter of the previous year, thereby an increase of 12%.

Speaker #2: Coming to the profitability, at standalone level, we achieved an EBITDA margin of 9.01%, which amounts to ₹442.45 crores, as against 9.02%, which was ₹394.82 crores for the corresponding quarter of the previous year.

Sanjay Pusarla: At stand-alone level, we achieved EBITDA of 9.01%, which is INR 442.45 crores as against 9.02%, which is INR 394.82 crores for the corresponding quarter of the previous year. The PBT we achieved 5.12% before exceptional item, which is INR 232.51 crore and PAT of 3.8%, which is INR 187.31 crores in the current quarter as against PBT of 5.43%, which is INR 240.69 crores and PAT of 4.29%, which is INR 189.99 crores in the corresponding quarter of the previous year. At consolidated level, we achieved EBITDA of INR 545.12 crores, which is 9.38%, and PBT of INR 311.64 crores, which is 5.33%. This is before exceptional items. PAT of INR 216.40 crores, which is 3.7% in the current quarter as against EBITDA of 8.81%, which is INR 456.12 crores, PBT of 5.15%, which is INR 268.36 crores and PAT of 3.69%, which is 192.14% in the corresponding quarter of the previous year.

Speaker #2: The PBT we achieved is 5.12% before exceptional item, which is ₹232.51 crore, and PAT of 3.8%, which is ₹187.31 crore in the current quarter, as against PBT of 5.43%, which is ₹240.69 crore, and PAT of 4.29%, which is ₹189.99 crore, in the corresponding quarter of the previous year.

Speaker #2: At consolidated level, we achieved EBITDA of ₹545.12 crore, which is 9.38%, and PBT of ₹311.64 crore, which is 5.33%, before exceptional items, and PAT of ₹216.40 crore, which is 3.7%, in the current quarter, as against EBITDA of 8.81% or ₹456.12 crore, PBT of 5.15% or ₹268.36 crore, and PAT of 3.69% or ₹192.14 crore in the corresponding quarter of the previous year.

Sanjay Pusarla: At consolidated level, we achieved EBITDA of INR 545.12 crores, which is 9.38%, and PBT of INR 311.64 crores, which is 5.33%. This is before exceptional items. PAT of INR 216.40 crores, which is 3.7% in the current quarter as against EBITDA of 8.81%, which is INR 456.12 crores, PBT of 5.15%, which is INR 268.36 crores and PAT of 3.69%, which is 192.14% in the corresponding quarter of the previous year.

Speaker #2: We will move to the debt. At the standalone level, the debt at the beginning of the quarter stood at ₹2,251 crores, and net debt after cash and cash equivalents was ₹1,067 crores.

Sanjay Pusarla: We'll move to the debt. At the stand-alone level, the debt at the beginning of the quarter stood at INR 2,251 crores and net debt after cash and cash equivalents, INR 1,667 crores. At the end of Q1 FY27, the debt stands at INR 2,410 crores and net debt of INR 2,008 crores. At the end of Q1 FY26, that is the previous year's corresponding quarter, it is INR 1,852 crores and net debt of INR 1,497 crores. This shows an increase in debt by INR 159 crores in Q1 FY27. The debt equity ratio stands at 0.31 at the end of Q1 FY27 as against 0.30 at the end of March 2026. Corresponding quarter of the previous year, it was 0.24. At the consolidated level, the debt stands at the beginning of the quarter is INR 3,457 crores and net debt after cash and cash equivalents is INR 2,815 crores.

Speaker #2: At the end of Q1 FY27, the debt stands at ₹2,410 crores and net debt of ₹2,008 crores, and at the end of Q1 FY26, that is the previous year's corresponding quarter, it is ₹1,852 crores and net debt of ₹1,497 crores.

Speaker #2: This shows an increase in debt by ₹159 crore in Q1 FY27. The debt-to-equity ratio stands at 0.31 at the end of Q1 FY27, as against 0.30 at the end of March '26.

Speaker #2: In the corresponding quarter of the previous year, it was 0.24. At the consolidated level, the debt at the beginning of the quarter stood at ₹3,457 crores, and net debt after cash and cash equivalents was ₹2,815 crores at the end of Q1 FY27.

Sanjay Pusarla: Corresponding quarter of the previous year, it was 0.24. At the consolidated level, the debt stands at the beginning of the quarter is INR 3,457 crores and net debt after cash and cash equivalents is INR 2,815 crores.

Speaker #2: It stands at ₹4,020 crores, and net debt at ₹3,513 crores. The same at the end of the first quarter of the previous year: ₹1,986 crores is the debt, and net debt is ₹1,574 crores.

Sanjay Pusarla: At the end of Q1 FY27, it stands at INR 4,020 crores and net debt at INR 3,513 crores. The same at the end of Q1 of the previous year, INR 1,986 crores is the debt and net debt is INR 1,574 crores. Coming to the working capital, excluding cash and marginal deposits. At the end of Q1 2027, we stand at INR 5,334 crores, which is 27% of the turnover. In terms of working capital days, it is 95 days. At the beginning of this year, we were standing at INR 4,887 crores, which is 28%, and working capital days was 97 days. Let's get into the trade receivables. Outstanding at the end of Q1 has decreased from INR 3,336 crores to INR 3,055 crores, and the number of days also decreased from 73 days to 68 days in the current quarter.

Speaker #2: Coming to the working capital, excluding cash and margin deposits, at the end of Q1 ’27, we stand at ₹5,334 crore, which is 27% of the turnover. In terms of working capital, it is 95 days.

Speaker #2: At the beginning of this year, we were standing at ₹4,887 crore, which is 28%, and working capital days were 97 days. Let's get into the trade receivables.

Speaker #2: Outstanding at the end of Q1 has decreased from ₹3,336 crore to ₹3,055 crore, and the number of days also decreased from 73 days to 68 days.

Speaker #2: In the current quarter, 77 days is the number in the corresponding quarter of the previous year. Unbilled revenue has increased from ₹6,068 crore and ₹6,675 crore, which is 38% of the revenue, to ₹7,414 crore, which also represents 38% of the revenue on an annualized basis in Q1 FY27.

Sanjay Pusarla: Seventy-seven days is the number in the corresponding quarter of the previous year. Unbilled revenue. This has increased from INR 6,675 crores, which is 38% of the revenue, to INR 7,414 crores. This also represents 38% of the revenue on annualized basis in Q1 FY27, and INR 6,442 crores in the corresponding period of the previous year, which is 37%. Retention money. This stands at INR 2,396 crores at the end of this quarter as against INR 2,256 crores at the beginning of this quarter. Coming to the mobilization advances. These advances stand at INR 3,163 crores as on 30 June 2026, as against INR 3,386 crores as on March 2026. Of these mobilization advances, 60% are interest-bearing, and the average interest rate comes to 9.1%. Interest-bearing advances decreased from 64% to 60% in this quarter. Cash and cash equivalents.

Speaker #2: And ₹6,442 crores in the corresponding period of the previous year, which is 37%. Retention money stands at ₹2,396 crores at the end of this quarter, as against ₹2,256 crores at the beginning of this quarter.

Speaker #2: Coming to the mobilization advances, these advances stand at ₹3,163 crores as on 30th June 2026, as against ₹3,386 crores as on March 2026.

Speaker #2: Of these mobilization advances, 60% are interest-bearing, and the average interest rate comes to 9.1%. Interest-bearing advances reduced from 64% to 60% in this quarter. Cash and cash equivalents are at ₹402 crore at the end of June 2026, as against ₹584–585 crore at the end of March 2026.

Speaker #2: Margin money deposits and others: we were at ₹633 crore at the end of Q1, as against ₹631 crore at the end of March. Coming to the capex, we have incurred capex of ₹170 crore in Q1 against the budgeted capex of ₹500 crore.

Sanjay Pusarla: We are at INR 402 crores at the end of June 2026, as against INR 585 crores at the end of March 2026. Margin money deposits and others. We were at INR 633 crores at the end of Q1, as against INR 631 crores at the end of March 2026. Coming to the CapEx. We have incurred a CapEx of INR 170 crores in Q1, against the budgeted CapEx of INR 500 crores. EPS stands at 2.98 at the end of Q1, FY27, as against 3.03 at the end of Q1, FY26. That's corresponding quarter of the previous year. Inventory, we are standing at INR 1,815 crores as against INR 1,787 crores at the end of March 2026. Investment, we are at INR 867 crores. The same is the number at the end of March 2026. Loans to group companies, we were at INR 290 crores as at the end of June 2026, as against INR 295 crores at the end of March 2026.

Speaker #2: And EPS stands at 2.98 at the end of Q1 FY27, as against 3.03 at the end of Q1 FY26—that’s the corresponding quarter of the previous year.

Speaker #2: Inventory, we are standing at ₹1,815 crore as against ₹1,787 crore at the end of March. Investment, we are at ₹867 crore, which is the same number as at the end of March.

Sanjay Pusarla: That's corresponding quarter of the previous year. Inventory, we are standing at INR 1,815 crores as against INR 1,787 crores at the end of March 2026. Investment, we are at INR 867 crores. The same is the number at the end of March 2026. Loans to group companies, we were at INR 290 crores as at the end of June 2026, as against INR 295 crores at the end of March 2026.

Speaker #2: Loans to group companies were at ₹290 crore as at the end of June, as against ₹295 crore at the end of March. Coming to the Vizag Urban status, Vizag Urban status as at the end of June '26 is ₹271 crore as against ₹291 crore at the end of March '26.

Sanjay Pusarla: Coming to the Vizag urban status. Vizag urban status as at the end of June 2026 is INR 271 crores as against INR 291 crores at the end of March 2026. With this, I conclude my presentation on the financial numbers. I do it back to Mr. Nirad. Thank you.

Speaker #2: With this, I conclude my presentation on the financial numbers. I hand back to Mr. Neeran. Thank you.

Speaker #1: We can start the question-and-answer session now.

Speaker #3: Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may please start. And one on the touch-tone telephone.

Neerad Sharma: We can start the question and answer session now.

Speaker #3: 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.

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 one on their touchtone 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. The first question comes from the line of Shravan Shah from Dolat Capital. Please go ahead.

Speaker #3: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Sravanshah from Daulat Capital.

Speaker #3: Please go ahead.

Speaker #1: Yeah. Thank you, sir. And good to see you. Very good presentation. And also, good to see that now we have given a guidance. So, couple of questions.

Speaker #1: First, I just wanted to understand directionally. So this quarter, let's say we have done a 12% on the execution front, and margin also kind of a 9%, but we are, we are looking at 8 to 10% earlier, and margin also 8.5 to 9%.

Shravan Shah: Yeah. Thank you, sir, and good to see you. A very good presentation. Also, good to see that now we have given our guidance. Couple of questions. First, just wanted to understand directionally. This quarter, let's say we have done a 12% on the execution front, and margin also kind of a 9%, but we are looking at 8% to 10% earlier and margin also 8.5% to 9%. Does that mean that we are looking at a slightly lower growth, and then margin also may be slightly lower in the remaining three quarters?

Speaker #1: So does that mean that we are looking at slightly lower growth, and then margins also maybe slightly lower in the remaining three quarters?

Speaker #2: Good morning, Mr. Star. As the numbers speak, Mr. Star, the first quarter has been good—sort of encouraging. But the environment continues to be, you know, a bit uncertain.

Speaker #2: It is difficult for us to assess with certainty, you know, how the fund allocation and how things really, you know, pan out in the coming quarters.

Sanjay Pusarla: Good morning, Mr. Shah.

Neerad Sharma: Good morning, Mr. Shah.

Shravan Shah: Good morning.

Sanjay Pusarla: As the numbers speak, Mr. Shah, the Q1 has been good, sort of encouraging. The environment continues to be a bit uncertain. It is difficult for us to assess for certainty that how the fund allocation, how things really pan out in the next coming quarters. That is the reason we have done a detailed exercise and shared what we thought is possible for the next few quarters. That is the reason, this guidance, we have decided to share with the market participants like you.

Neerad Sharma: As the numbers speak, Mr. Shah, the Q1 has been good, sort of encouraging. The environment continues to be a bit uncertain. It is difficult for us to assess for certainty that how the fund allocation, how things really pan out in the next coming quarters. That is the reason we have done a detailed exercise and shared what we thought is possible for the next few quarters. That is the reason, this guidance, we have decided to share with the market participants like you.

Speaker #2: So that is the reason, you know, we have done a detailed exercise and shared what we thought is, is, you know, possible for the next few quarters so that is the reason this guidance we have decided to share with the market participants like you.

Speaker #1: Okay. So, so, but, but internally, are we, are we kind of saying there is a possibility that this number particularly on the growth front, given the, the order book that we have or maybe you can give us some color in terms of the entire 81,000 crore kind of order book is, is, is under execution or maybe how much is still is yet to, yet to kind of pick up in execution?

Shravan Shah: Internally, are we kind of saying there is a possibility that this number, particularly on the growth front, given the order book that we have, or maybe you can give us some color in terms of the entire INR 81,000 crore kind of order book is under execution or maybe how much is still yet to kind of pick up in execution. To get a sense that what's the probability that this number, particularly on the growth front, revenue front, can inch up to maybe a 15%-plus kind of a number.

Speaker #1: So, to get a sense of what's the probability that this number, particularly on the growth front, the revenue front, can inch up to maybe a 15% plus kind of number.

Speaker #2: Yeah, yeah. Let me answer this question a little differently, Mr. Shah. There are two critical elements to our performance. The first critical element is our ability to execute the projects, you know.

Speaker #2: So there is not an iota of change in our capability, our ability to execute the projects, you know. So this is something that is very much in place.

Sanjay Pusarla: Yeah. Let me answer this question a little differently, Mr. Shah. There are two critical elements to our performance. The first critical element is our ability to execute the projects. There is not an iota of change in our capability, our ability to execute the projects. This is something that is very much in place. The second critical element is the ability of the clients to provide the funds, make the funds available on time, give all the approvals, make all the ROWs possible. The performance in any quarter of any financial year finally depends on this. This is how things are expected to pan out. In the next quarter also, as things progress, we would be very happy to come and share with you.

Neerad Sharma: Yeah. Let me answer this question a little differently, Mr. Shah. There are two critical elements to our performance. The first critical element is our ability to execute the projects. There is not an iota of change in our capability, our ability to execute the projects. This is something that is very much in place. The second critical element is the ability of the clients to provide the funds, make the funds available on time, give all the approvals, make all the ROWs possible. The performance in any quarter of any financial year finally depends on this. This is how things are expected to pan out. In the next quarter also, as things progress, we would be very happy to come and share with you.

Speaker #2: The second critical element is, you know, the ability of the clients to provide the funds, you know, make the funds available on time, give all the approvals, you know.

Speaker #2: Make all the ROWs possible, you know. So the performance in any quarter or any financial year finally depends on this, you know. So this is how things are expected to pan out.

Speaker #2: And in the next quarter also, as things progress, we would be very happy to come and, you know, share with you.

Speaker #1: Okay. Okay. Okay. Great. Just a couple of things first. I have seen in the annual report that there is a 1:1 subsidiary, NCC Quantum Technologies Private Limited, where there is a ₹256 crore equity investment, which was ₹70 crore in FY25.

Shravan Shah: Okay, great. Just a couple of things. First, I have seen in the annual report, there is one subsidiary, NCC Quantum Technologies Private Limited, where there is a INR 256 crore equity investment, which was INR 70 crore in FY25. Can you help us? What is this and what this subsidiary is likely to do?

Speaker #1: Can you help us understand what this is and what these subsidiaries are likely to do?

Speaker #2: Quantum Technology is a holding company for the smart meters. You are aware that we are executing two smart meter projects under two SPVs. One is Ray, and one is for Marathwada.

Speaker #2: Quantum Technology is a holding company for these two smart meters.

Sanjay Pusarla: Quantum Technology is the holding company for the smart meters. You are aware that we're executing two smart meter projects under two SPVs. One is RAY and one is for Marathwada. Quantum Technology is a holding company for these two smart meters.

Speaker #1: Okay. Okay. Got it. And lastly, in terms of the trade payable, how much is it as on June? And then, regarding the capex—the ₹500 crore for this year—does that number, that guidance, remain the same?

Speaker #2: Yeah. Guidance remains the same for capex—₹500 crore, as we have given. And for trade payables, it was ₹7,071 crore as at the end of June 26.

Shravan Shah: Okay. Got it. Lastly, in terms of the trade payable, how much as on June, the CapEx, the INR 500 crore for this year, that number guidance remains the same?

Speaker #1: Okay. Thank you, and all the best, sir.

Speaker #2: Thank you.

Speaker #3: Thank you. The next question comes from the line of Ankita Shah from LR Capital. Please go ahead. Hello, ma'am. Can you hear me? Please unmute yourself and proceed with your question.

Sanjay Pusarla: Yeah, guidance remains same for the CapEx, INR 500 crore, whatever we have given. For the trade payables, it was INR 7,071 crore as at the end of June 2026.

Shravan Shah: Okay. Thank you, all the best, sir.

Sanjay Pusarla: Thank you.

Operator: Thank you. The next question comes from the line of Ankita Shah from LRA Capital. Please go ahead. Hello, ma'am. Can you hear me? Please unmute yourself and proceed with your question. Ladies and gentlemen, as there's no response, we'll move on to the next question. The next question comes from the line of Aditya Sahu from HDFC Securities Limited. Please go ahead.

Speaker #3: Ladies and gentlemen, as there is no response, we will move on to the next question. The next question comes from the line of Aditya Sao from HDFC Securities Limited.

Speaker #3: Please go ahead.

Speaker #1: Hi, sir. I hope I am audible.

Speaker #2: Yeah, you're audible.

Speaker #1: All right. Hi, sir. Yeah. Thanks a lot for the opportunity. I had a few queries. Firstly, on the JJM front, if you could, you know, help with what—how much would be the, you know, collection that we would have received in Q1, and, you know, what is the outstanding as of now?

Aditya Sahu: Hi, sir. I hope I'm audible.

Sanjay Pusarla: Yeah, you're audible.

Speaker #2: The outstanding for the JJM as of June 26 is ₹1,043 crore for the UP water projects. Okay?

Aditya Sahu: Hi, sir. Thanks a lot for the opportunity. I had a few queries. Firstly, on the JJM front, if you could help with how much would be the collection that we would have received in Q1, and what is the outstanding as of now?

Speaker #1: Okay. Okay.

Speaker #2: So, in the case of order execution, you were asking about collection in the first quarter, right? In the first quarter, we have collected about ₹110 crore.

Sanjay Pusarla: The outstanding for the JJM as at the end of June 2026 is INR 1,043 crore for the UP water projects. Okay?

Speaker #2: This is corresponding to the UP projects. If you ask me about the overall JJM projects, the total JJM projects, including the surface water and the groundwater, is ₹2,771 crores for the UBR.

Aditya Sahu: Okay.

Sanjay Pusarla: In the case of order execution, you were asking about collection in Q1, right?

Aditya Sahu: Yes, sir.

Sanjay Pusarla: In Q1, we have collected about INR 110 crore. This is corresponding to the UP projects.

Speaker #2: And the amount collected during the first quarter against this is ₹610 crore.

Speaker #1: 610 crores. Understood, sir. And, sir, what sort of receivable dues are you looking at in terms of the JJM projects we have?

Aditya Sahu: Okay.

Sanjay Pusarla: If you ask me overall JJM projects, the overall JJM projects, including the surface water and the groundwater, the total is 2,771 crores is the UBR, and the amount collected during the Q1 against this is 610 crores.

Speaker #2: We started getting this money, and in the month of July also, we have received a good amount of about ₹413 crore from the JJM.

Speaker #1: Okay.

Speaker #2: We are expecting that this flow of money, the release of payments, should continue, and with that expectation, we are expecting to complete substantially the JJM projects in the current year.

Aditya Sahu: 610 crores.

Sanjay Pusarla: In the Q1.

Aditya Sahu: Understood, sir. Sir, what sort of receivable days are you looking at in terms of these JJM projects overall?

Sanjay Pusarla: We started getting this money. In the month of July also, we have got a good money of about INR 413 crore from the JJM.

Speaker #1: Okay, okay. So, by the current year, we are expecting to close the JJM projects that we are a part of.

Speaker #2: Substantially, we will close, provided the money flow also continues like this.

Aditya Sahu: Okay.

Sanjay Pusarla: We are expecting that this flow of money, the release of payment should continue. With that expectation, we are expecting to complete substantially the JJM projects in the current year.

Speaker #1: Okay. Obviously, sir. On the, you know, just on the two more questions on JJM that I had was, what would be the pending order book for the JJM and the balance sheet exposure, if you can provide those two numbers for JJM part?

Aditya Sahu: Okay. By the current year, we are expecting to close the JJM projects that are in your quarter.

Sanjay Pusarla: Substantially, we'll close, provided the money flow also continues like this.

Speaker #2: JJM is already given. We have already given you the amount receivable, that is ₹2,771 crores, and as far as the order book is concerned, we have complete orders for surface water and groundwater—₹5,881 crores.

Aditya Sahu: Okay. Obviously, sir. Just on the two more questions on JJM that I had was, what would be the pending order book for the JJM and the balance sheet exposure? If you can provide those two numbers for the JJM part.

Speaker #1: Understood.

Speaker #2: As at the end of June 26.

Speaker #1: Understood, sir. And overall, if I have to look at the overall bid pipeline, what would that be for us as of now?

Sanjay Pusarla: We have given you already the amount receivable, that is INR 2,771 crores.

Aditya Sahu: Okay.

Sanjay Pusarla: As far as the order book is concerned, we have complete orders like for surface water and the groundwater, INR 5,881 crores.

Speaker #2: Sorry, I couldn't get you. Can you repeat the question, please?

Speaker #1: The bid, the bid pipeline I was looking for—what sort of bid pipeline are you looking at?

Aditya Sahu: Understood.

Sanjay Pusarla: As at the end of June 2026.

Speaker #2: Yeah. In the first quarter, we have shared this number. Mr. Sao, the prospective pipeline of projects is about ₹2.5 lakh crore.

Aditya Sahu: Understood, sir. The overall, if I can look at the overall bid pipeline, what would that be for us as of now?

Speaker #2: As of the first quarter, we don't revise this number quarter to quarter. But this is the prospective, you know, bid pipeline we have.

Sanjay Pusarla: Sorry, I couldn't get you. Can you repeat the question, please?

Aditya Sahu: The bid pipeline, I was looking for what sort of pipeline you are looking at.

Speaker #1: Okay. Okay. Understood, sir. And just, I think, I'm just trying to understand on the commodity prices, because I think commodity prices have increased. So any impact if you would have seen towards the payments and the execution?

Sanjay Pusarla: In Q1, we have shared this number, Mr. Sahu. The prospective pipeline of projects is about INR 250,000 crore.

Neerad Sharma: In Q1, we have shared this number, Mr. Sahu. The prospective pipeline of projects is about INR 250,000 crore.

Aditya Sahu: 2.5.

Sanjay Pusarla: As of Q1. We don't revise this number quarter to quarter, but this is the prospective bid pipeline we have.

Neerad Sharma: As of Q1. We don't revise this number quarter to quarter, but this is the prospective bid pipeline we have.

Speaker #1: Like what is your view? I mean, on that front, because of these increase in the commodity prices?

Speaker #2: As far as the commodity prices are concerned, like regular commodities, steel, cement, we are not seeing any price increase. But the commodities which are related to the link to the petroleum products, and aluminum and copper, we are looking at little price increase.

Aditya Sahu: Okay. Understood, sir. I'm just trying to understand on the commodity prices, because I think commodity prices have increased. Any impact, if you would have seen, towards the payments and the execution? What is your view on that front because of these increases in the commodity prices?

Speaker #2: And also the OFC cable, which we are using in our BharatNet projects, we are also seeing there is a price increase. But in the first quarter, whatever impact is there, whatever material we have used, that is from the turnover, what is there in our hand.

Sanjay Pusarla: As far as the commodity prices are concerned, like regular commodities, steel, cement, we are not seeing any price increase. The commodities which are related to the link to the petroleum products and aluminum and copper, we are looking at little price increase.

Speaker #2: In the second quarter, we are expecting the prices to stabilize. If the prices are stabilizing, I hope that impact will not be there. Not much of an impact will be there.

Aditya Sahu: Okay.

Sanjay Pusarla: Also the OFC cable which we are using in our BharatNet projects. There also we have seen there is a price increase. In Q1, whatever material we have used, that is only turnover what is there in our hand. The Q2, we are expecting the prices to stabilize. If the prices are stabilizing, I hope that impact will not be there. Not much of impact will be there.

Speaker #1: Understood, sir. So, the price increase.

Speaker #3: Sorry to interrupt, sir. May I request that you please rejoin the queue for any follow-up questions?

Speaker #1: Sir, this is connected to that one only. Just, just one thing. So the price increase that you're seeing, like, you know, how much are you able to pass on that?

Speaker #1: That's all from my end.

Speaker #2: So we have almost 81% of the contracts with price escalation clauses. So whatever price increase comes, it gets partially compensated with the price variation clauses that exist in our contracts.

Aditya Sahu: Understood, sir. The price increase

Operator: Sorry to interrupt, sir. May I request you to please rejoin the queue for any follow-up questions?

Aditya Sahu: Sir, this is connected to that one only. Just one thing. The price increase that you are seeing, how much are you able to pass on? That's all from my end.

Speaker #1: Understood, sir. Understood. That's all from my end. Thank you so much, sir. Thank you.

Speaker #2: Thank you. Thank you.

Speaker #3: The next question comes from the line of Parvesh Kazi from Noama Group. Please go ahead.

Sanjay Pusarla: We have almost 81% of the contracts have the price escalation. Whatever price increase is coming, it gets partially compensated with the price variation clauses that are existing in our contracts.

Speaker #2: Hi, good afternoon, gentlemen. Thanks for taking my question. I have two questions from my side. First, in the smart meter projects, what is the pending equity from our side?

Aditya Sahu: Understood, sir. That's welcome. Thank you so much.

Sanjay Pusarla: Thank you.

Operator: Thank you. The next question comes from the line of Parvez Kazi from Nuvama Group. Please go ahead.

Speaker #2: There is no pending equity from our side. Whatever money needed to be invested in the smart meter projects, that has been completed. We have invested about ₹460 crores as of the end of March.

Parvez Kazi: Hi. Good afternoon, gentlemen. Thanks for taking my questions. Two questions from my side. First, in the smart meter projects, what is the pending equity from our side?

Speaker #2: There is no further equity requirement at the moment. Sure, sir. And my second question—over the last two quarters, we have seen an improvement in execution as well as in the payment cycle.

Sanjay Pusarla: There is no pending equity from our side. Whatever money need to be invested in the smart meter project, that has been completed. We have invested about INR 460 crore as of the end of March. No further equity requirement is there at the moment.

Speaker #2: So as things stand today, would you say that the payment cycle for state government projects is far better compared to, let's say, what it was at the same time, maybe last year?

Parvez Kazi: Sure, sir. Second question, obviously over the last two quarters, we have seen improvement in execution, also an improvement in payment cycle. As things stand today, you would believe that today the payment cycle from state government projects is far better compared to, let's say, what it was at same time maybe last year. Would that be a fair assessment? I'm not talking only about the JJM projects, but overall, what is your view on payment cycle now?

Speaker #2: Would that be a fair assessment? And I'm not talking only about the JJM projects, but overall. I mean, what is your view on the payment cycle now?

Speaker #4: Firstly, Mr. Kazi, good morning. This is Neeraj. We are executing, you know, projects in several states, not just one or two. So it keeps changing from state to state.

Speaker #4: But you know, I think it is not helpful to go into each of the states individually. So, by and large, we could say that things seem to be improving.

Sanjay Pusarla: Firstly, Mr. Kazi, good morning. This is Neeraj. We are executing projects in several states, not one and two. It keeps changing from state to state. I think it is not helpful to go into each state individually. By and large, we could say that things seem to be improving. We have lot of states. The state governments will have lot of different kind of projects, which are managed by different arms of the government. It is not that you could just one size fits all. In the same state, there could be some problem in some projects, the other projects in the same state might be getting paid fast. This is a very nuanced kind of situation, we keep monitoring almost on daily basis and accordingly make progress.

Neerad Sharma: Firstly, Mr. Kazi, good morning. This is Neeraj. We are executing projects in several states, not one and two. It keeps changing from state to state. I think it is not helpful to go into each state individually. By and large, we could say that things seem to be improving. We have lot of states. The state governments will have lot of different kind of projects, which are managed by different arms of the government. It is not that you could just one size fits all. In the same state, there could be some problem in some projects, the other projects in the same state might be getting paid fast. This is a very nuanced kind of situation, we keep monitoring almost on daily basis and accordingly make progress.

Speaker #4: But we, you know, we have a lot of states. The state governments will have a lot of different kinds of projects, which are managed by different arms of the government.

Speaker #4: So, it's not that, you know, you could just have one size fits all. In the same state, there could be some problems in some projects.

Speaker #4: In the same way, the other projects in the same state might be, you know, getting paid fast. So this is a very nuanced kind of situation.

Speaker #4: And we keep monitoring, you know, almost on a daily basis and, accordingly, make progress.

Speaker #2: Sure, sir. Thanks.

Speaker #3: Thank you. The next question comes from the line of Vishal Perival from PL Capital. Please go ahead.

Speaker #2: Yes, sir. Thanks for the opportunity. I have two questions. First, in terms of order book breakup, can you provide this split into state, private, and central?

Parvez Kazi: Sure, sir. Thanks.

Speaker #2: And second is, in the order book that we have, are there any slow-moving orders, or, I mean, have we received mobilization advance for all of them?

Operator: Thank you. The next question comes from the line of Vishal Periwal from PL Capital. Please go ahead.

Speaker #2: Any color that you can provide? It will be helpful.

Vishal Periwal: Yes, sir. Thanks for the opportunity. I have two questions. First, in terms of order book breakup, can you provide this into state, private, and center? Second is, in order book that we have, are there any slow-moving order or have you received the mobilization advance for all of them? Any color that can you provide will be helpful.

Speaker #4: Generally, in our order book, what we do is that if there is any slow-moving order or a non-moving order, we don't consider that.

Speaker #4: We generally move it from that, okay? And what is the other question?

Speaker #2: The breakup of the state government, central government, and private sector.

Speaker #4: Private sector.

Sanjay Pusarla: Generally, in our order book, what we do is that if there is a very slow-moving order or like a non-moving order, we don't consider it. We generally remove it from that. Okay. What is the other question?

Speaker #2: Yeah. The central government order is constituted about 14%, and the state government order is constituted about 19%. PSUs and state government entities, they consider, were about 60%, and ADB, AIB, and banks, it is about 5%.

Vishal Periwal: The breakup of the state government, central government, and private.

Sanjay Pusarla: I'll just give it. The central government orders constitute about 14%, and state government orders constitute about 19%. PSUs and state government entities, they were about 60%. ADB, AIIB, and banks, it is about 5%. From the private clients, we started taking the orders, which constitute about 4%.

Speaker #2: And from the private clients, we started taking the orders, which constituted about 4%.

Speaker #4: Okay, okay. And maybe just one follow-up. I think you mentioned slow-moving orders—we generally remove those. But I think a couple of quarters back, there were certain orders, say, JJM and maybe, like, you know, Mahastha.

Speaker #4: So is that fair to understand? I mean, there is no such order which is part of the order book, and probably everything we are executing.

Speaker #4: Maybe the PS could be.

Speaker #2: Yeah. The entire ₹81,000 crore of orders are up and running now. All are executable orders. Yeah.

Vishal Periwal: Okay. Maybe one just a follow-up. I think you mentioned slow-moving orders, we generally remove it. I think a couple of quarters back, there were certain orders, say JJM and maybe like an Ambasta. Is that fair to understand? There is no such order which is part of the order book, and probably everything we are executing. Maybe at least could you-

Speaker #4: Sure, sir. Sure, sir. And this is helpful, sir. Thank you very much.

Speaker #2: Thank you very much.

Speaker #3: Thank you. The next question comes from the line of Vebhasha from JM Financial. Please go ahead.

Speaker #4: Yeah. So, you mentioned that the order book for JJM is roughly ₹1,500 crore. Of that, what would be of a longer-term nature? There will be an O&M component as well?

Sanjay Pusarla: The entire 81,000 crores of orders are up and running now.

Vishal Periwal: Okay.

Sanjay Pusarla: All are executable orders.

Vishal Periwal: Sure, sir. This is helpful, sir. Thank you very much.

Sanjay Pusarla: Thank you.

Speaker #2: It doesn't have any ONM component. It doesn't constitute any ONM component. What I have told you is that in the order book, 3,524 is only the groundwater.

Operator: Thank you. The next question comes from the line of Vaibhav Shah from JM Financial. Please go ahead.

Vaibhav Shah: Yeah. Sir, you mentioned that the order book for JJM is roughly INR 1,500 crores. Of that, what would be of a longer-term nature? There would be an O&M component as well?

Speaker #2: If you take the surface water, it is ₹2,358 crore. The total order book as at the end of June 26 is ₹5,881 crore.

Speaker #4: Sir, so if the payments are on time, this entire backlog can be executed in the next 12 months?

Sanjay Pusarla: It doesn't have any O&M component. What I've told you is that in the order book, INR 3,524 is only the groundwater. If you take the surface water, it is INR 2,358 crores. The total order book as of the end of June 2026 is INR 5,881 crores.

Speaker #2: Substantially, it can be completed.

Speaker #4: Okay, okay. So, secondly, on the Vizag side, how much receivables are we expecting to recover in this year out of the ₹271 crores?

Speaker #2: By December's numbers, it is by December 26.

Speaker #4: The entire amount?

Vaibhav Shah: Sir, if the payments are on time, this entire backlog can be executed in next 12 months?

Speaker #2: Yeah. Supposed to come by the entire amount by December 26.

Speaker #4: Okay. Sir, how do you see the debt number moving by March 2027? From ₹2,400 crores?

Sanjay Pusarla: Substantially, it can be completed.

Vaibhav Shah: Okay. Sir, secondly, on the Vizag side, how much receivables are we expecting to recover in this year of the INR 270 crores?

Speaker #2: Maybe it is flat, or it may come down also, depending on the collections and what we are expecting from the JJM.

Sanjay Pusarla: It is by 26 December 2026.

Speaker #4: So you mean flat on a Y/Y basis?

Vaibhav Shah: The entire amount?

Sanjay Pusarla: Yeah. Supposed to come, the entire amount, by 26 December 2026.

Speaker #2: Sorry?

Speaker #4: So, flat number on a YoY basis by March '27. So it was 2,250 last year, so similar number in FY27 as well.

Vaibhav Shah: Okay. Sir, how do you see the debt number moving by March 2027 from INR 2,400 crore?

Speaker #4: March 27.

Speaker #2: Yeah, more or less, it will be the same number.

Sanjay Pusarla: Maybe it is flat. Or it may come down also, depending on the collections, what we are expecting from the JJM.

Speaker #4: It would depend on the, you know, the collections that we get to see, you know. It would be a function of that. Okay, okay.

Vaibhav Shah: You mean flat on a YY basis?

Speaker #4: And sir, lastly, what would be the AP Capital City receivables right now?

Sanjay Pusarla: Sorry?

Vaibhav Shah: Flat number on a YY basis by March 2027. It was INR 2,250 in last year.

Sanjay Pusarla: Yeah.

Vaibhav Shah: Similar number in FY27 as well, March 2027?

Speaker #2: One second. AP Capital City.

Speaker #4: I remember it was around 150-odd crores last year.

Sanjay Pusarla: Yeah. More or less it will be the same number.

Speaker #2: Yes, in the AP Capital City, old projects— the Capital City old projects—okay? Which was there at the end of March 26. It is about ₹142 crore.

Neerad Sharma: It would depend on the collections that we get to see. It would be a function of that.

Vaibhav Shah: Okay. Sir, lastly, what would be the AP capital city receivables right now?

Sanjay Pusarla: One second. AP capital city.

Speaker #2: So, we are expecting the entire money to be realized this quarter, or maybe early next quarter.

Vaibhav Shah: I remember it was around INR 150 odd crores last year.

Speaker #4: Okay, okay. Thank you, sir. Those were my questions.

Sanjay Pusarla: Yes. In the AP capital city. Old projects, the capital city old projects, okay, which was there at the end of March 2026, is about INR 142 crores. We are expecting that the entire money to be realized in this quarter or maybe early next quarter.

Speaker #2: Right.

Speaker #3: Thank you. The next question comes from the line of Abhishek Maheshwari from Sky Ridge Fund Managers. Please go ahead.

Speaker #5: Yeah, hi. Thank you for taking my question, sir. I just wanted to talk about your annual revenues. The amount has kept ballooning year over year.

Vaibhav Shah: Okay. Thank you, sir. Those are my questions.

Speaker #5: And it's growing faster than your revenue rate. So, is it that the flow of annual revenue to revenues is slower than what you would ideally like it to be?

Sanjay Pusarla: Right.

Operator: Thank you. The next question comes from the line of Abhishek Maheshwari from Skyridge Fund Managers. Please go ahead.

Abhishek Maheshwari: Hi, thank you for taking my question. Sir, just one. Wanted to talk about your unbilled revenues. The amount has kept ballooning year over year, and it is growing faster than your revenue rate. Is it that the flow of unbilled revenue to revenues is lower than what you would ideally like it to be?

Speaker #2: Obviously, because this annual revenue is also out of the ₹7,414 crores, about ₹780 to ₹800 crores has been certified in the first week of July.

Speaker #2: So, that has come down to the tax center. And given the context, nowadays the contracts are based on milestones. That is the reason there is a little bit of an increase in the annual revenue.

Sanjay Pusarla: Abhishek, because this unbilled revenue also, out of that INR 7,414 crore, about INR 780 to 800 crore, that has been certified in the first week of July. That has come down to that extent. Given the contracts nowadays, the contracts are based on the milestones. That is the reason there is a little bit of increase in the unbilled revenue. We are expecting that unbilled revenue should get smoothened over the next quarters because the BSNL billing also will start where we are executing for BharatNet. The billing also will start. It will get converted from unbilled revenue to revenue. This is what we are expecting. Over the next two quarters, it should smoothen.

Speaker #2: But we are expecting that annual revenue should get smoothened over the next quarters because the BSNL billing will also start. Where we are executing for BharatNet, the billing will also start.

Speaker #2: It will get converted from annual revenue to revenue. This is what we are expecting over the next two quarters. It should smoothen out.

Speaker #5: So, just a follow-up. Over the next two quarters, revenues might be a little lumpy in terms of growth; it will not be consistent. Because a lot of annual revenues you have—as and when milestones keep getting hit, the revenues will keep getting recognized.

Speaker #5: Am I correct in assuming that?

Speaker #2: No, no, no. Because annual revenue is already treated as revenue. Wherever the annual revenue converts into certification, what will happen? The annual revenue will come down.

Abhishek Maheshwari: Just a follow-up. With next two quarters, the revenues might be a little lumpy in terms of growth. It will not be consistent because a lot of unbilled revenues you have, as and when milestones keep getting hit, the revenues will keep getting recognized. Am I correct in assuming that?

Speaker #2: Your certified revenue will go up, so it will not change the revenue numbers.

Speaker #4: It will change the debtors.

Speaker #2: Yeah.

Speaker #5: No, annual revenue. Okay, got it. Got it. Understood.

Speaker #2: Yeah.

Speaker #5: Okay.

Sanjay Pusarla: No. Because unbilled revenue is already treated as revenue. Whenever the unbilled revenue converts into certification, what will happen? Unbilled revenue will come down, your certified revenue will go up. It will not change the revenue numbers.

Speaker #3: Thank you. The next question comes from the line of Krish Bhatia from Anand Rathi. Please go ahead.

Speaker #4: Yeah, hi. Thank you for taking my question. So my first question is on the Keralatwa project. There have been protests around land acquisition, compensation, and rehabilitation.

Neerad Sharma: It will change the debtors.

Sanjay Pusarla: Yeah.

Abhishek Maheshwari: No. Okay, got it. Understood.

Sanjay Pusarla: Yeah.

Speaker #4: And there were reports of work at the Notting Dam site being disrupted. So, given that NTC is executing that package, could you update us on the current execution status, and have these issues affected site availability or execution? Or do you see any risk to the project timeline?

Abhishek Maheshwari: Okay.

Operator: Thank you. The next question comes from the line of Krish Bhatia from Anand Rathi. Please go ahead.

Krish Bhatia: Yeah, hi. Thank you for taking my question. My first question was on the Kerala water project. There have been protests around land acquisition and compensation and rehabilitation, and there were reports of work at the Daudhan dam site being disrupted. Given that NCC is executing that package, could you update us on the current execution status, and have these issues affected site availability, execution, or do you see any risk to project timeline?

Speaker #2: Yeah. Mr. Bhatia, good morning. Firstly, this is the first, you know, interlinking of rivers project that has been taken up in India. This is the very first project.

Speaker #2: And we are fortunate to back this project. I am happy to report that we are making reasonably good progress on this report. Yes, we have seen all these media reports and we understand that the local administration is in touch with the agitators.

Sanjay Pusarla: Yeah. Mr. Bhatia, good morning. This is the first interlinking of river project that has been taken up in India. This is the very first project, we are fortunate to bag this project. I am happy to report that we are making reasonably good progress on this report. We have seen all these media reports, we understand that the local administration is in touch with the agitators, the issues are slowly getting resolved.

Neerad Sharma: Yeah. Mr. Bhatia, good morning. This is the first interlinking of river project that has been taken up in India. This is the very first project, we are fortunate to bag this project. I am happy to report that we are making reasonably good progress on this report. We have seen all these media reports, we understand that the local administration is in touch with the agitators, the issues are slowly getting resolved.

Speaker #2: And, you know, the issues are slowly getting resolved.

Speaker #4: Okay. So contractually, if site handover execution gets delayed because of land acquisition or rehabilitation issues, I mean, would we—

Speaker #2: We are making good progress. Yeah. Mr. Bhatia, as I shared with you, we are making reasonably good progress. And this site, that has been widely reported in the media, is, you know, about 20–30 kilometers from our actual site.

Speaker #2: So, there is no great impact as such. This is an issue between the local administration and the agitating population, and we hope the issue is slowly getting resolved.

Krish Bhatia: Okay, contractually, if site handover execution gets delayed because of land acquisition or rehabilitation issues, then would it be?

Sanjay Pusarla: We are making good progress. Yeah, Mr. Bhatia, as I shared with you, we are making reasonably good progress. This site that has been widely reported in the media is about 20, 30 km from our actual site. There is no great impact as such. This is an issue between the local administration and the agitating population, we hope the issue is slowly getting resolved.

Neerad Sharma: We are making good progress. Yeah, Mr. Bhatia, as I shared with you, we are making reasonably good progress. This site that has been widely reported in the media is about 20, 30 km from our actual site. There is no great impact as such. This is an issue between the local administration and the agitating population, we hope the issue is slowly getting resolved.

Speaker #4: Okay, sure. Thank you. That's all from my side.

Speaker #3: Thank you. The next question comes from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.

Speaker #5: Yeah, sir. Hi. Sir, my first question is on the debt numbers. So, if I see year-over-year, your debt was ₹1,500 crore standalone net debt and consolidated net debt was ₹1,600 crore.

Krish Bhatia: Okay, sure. Thank you. That's all from my side.

Speaker #5: And now in Q1, it has gone up to ₹2,000 crores and ₹3,500 crores. So, substantial jump in consolidated debt. So, can you please explain that?

Operator: Thank you. The next question comes from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.

Speaker #5: What is the increase? Where is the increase?

Parikshit Kandpal: Yeah, sir. Hi. My first question is on the debt numbers. If I see YOY, your debt was INR 1,500 crore standalone net debt and consolidated net debt was INR 1,600 crore. Now in Q1 it has gone up to INR 2,000 crore and INR 3,500 crore. A substantial jump in consolidated debt. Can you please explain that? What is the increase? Where is the increase?

Speaker #2: The increase is mainly on account of fresh debt we have taken in the smart meters—about ₹400 crores, ₹370 crores we have taken as debt on the smart meters.

Speaker #2: So, the reason for the increase is only that. Also, we are taking some equipment at the old coal level. The capex requirements are there.

Speaker #2: So, about ₹160–170 crores per capex requirement. Also, we have used some of the loans. Yeah.

Sanjay Pusarla: The increase is mainly on account of fresh debt we have taken in the smart meters. About INR 400 crore, INR 370 crore we have taken debt on the smart meters. The reason for increase is only that. Also we are taking some equipment at the holdco level. The CapEx requirements are there, about INR 160 crore, INR 170 crore. For CapEx requirement also, we have used some of the loans. Yeah.

Speaker #5: So the increase year-over-year is about ₹1,900 crores. That is the reason I was asking. The consolidated debt has gone up to ₹13,500 crores.

Speaker #2: 1,900 when you compare it with June 25?

Speaker #5: Yeah, yeah. June 25. So, because we think.

Speaker #2: Yeah. If you ask me, from June 25, the loan which we have drawn for our smart meter projects is about ₹1,350 crores.

Parikshit Kandpal: The increase YOY is about INR 1,900 crore, that is the reason I was asking the consolidated debt has gone from INR 1,000 to INR 3,500 crore.

Speaker #5: 1,350 crores.

Speaker #2: Yeah. Yeah.

Speaker #5: So it's a project, basically, if I have to see. Great. So, out of the ₹3,500 crore of total net debt—that's at the standalone level, sorry, at the consolidated level—approximately ₹1,350 crore comes from the smart meter.

Sanjay Pusarla: INR 1,900 when you compare it with June 2025?

Parikshit Kandpal: Yeah. June 2025. Because we didn't have any.

Sanjay Pusarla: If you ask me from June 2025, if you ask me, the loan which we have drawn for our smart meter projects is about INR 1,350 crores.

Speaker #2: So, if you ask me cumulatively—if you ask me—it is coming to 1,461. Because we were talking about from June '25. But if you ask me cumulatively, the debt of smart meters at the end of June '26 is ₹1,461 crore.

Parikshit Kandpal: INR 1,350 crores.

Sanjay Pusarla: Yeah.

Parikshit Kandpal: It's a project. Basically, if I have to see that split, out of the INR 3,500 crore of total net debt in the consolidated level, approximately INR 1,350 comes from the smart meter.

Speaker #2: Out of that, 4,019.

Speaker #5: 1,460 is part of the 3,500 crores of net debt, right? So, to break up the consolidated debt of 3,500 crores, can you split that net debt of 3,500 into standalone and consolidated?

Sanjay Pusarla: If you ask me for cumulatively, if you ask me, it is coming to INR 1,461. We were talking about from June 2025. If you ask me cumulatively, the debt of smart meters at the end of June 2026 is INR 1,461 crore. Out of that, INR 4,090.

Speaker #5: That is.

Speaker #2: Out of 35? Out of 35, 1,461 is smart meter. Out of 3,500, 1,461 is the smart meter debt.

Speaker #5: Okay. All right, sir. So, second question is: What is the BharatNet order book right now, pending? And how much is it? How much is it in admin?

Parikshit Kandpal: INR 1,350 is the part of INR 3,500 crore of net debt, right? Up to date of the consolidated debt of INR 3,500. Can you split that net debt of INR 3,500 into standalone and consolidated? That is what I would like.

Speaker #5: And how much admin? How much admin? So it's 5 of 10. So what kind of...

Sanjay Pusarla: Out of INR 35, INR 1,461 is smart meter.

Speaker #2: Parikshit ji, your voice is not audible and not clear. Can you please repeat the query again?

Parikshit Kandpal: Okay. Got it, sir. Second question, what is the BharatNet order book right now pending and how much is it?

Speaker #5: Okay, sir.

Speaker #4: Sir, regarding the Bharat Net order, what is the total residual order book? And since optical fiber prices have gone up significantly, is it a pass-through for us?

Speaker #4: Will we make margins on this project, or will there be losses at the current prices?

Sanjay Pusarla: Parikshit, your voice is not audible, not clear. Can you repeat the query again?

Speaker #2: So, what we are expecting is that, with the current prices, even we are taking it up with the consent authorities at the client level, and at the ministry level also, we are asking them to look into that to ensure that the supply, also domestically, is available at fairly reasonable prices.

Parikshit Kandpal: Sir, the BharatNet order, what is the total residual order book? Since the optical fiber prices have gone up significantly, is it a pass-through for us, whether we'll make margins on this project or there'll be losses at the current prices?

Speaker #2: But at the moment, what we are doing is other infrastructure works which are not involving the OFC. But OFC will also be done continuously.

Sanjay Pusarla: What we are expecting is that with the current prices, even we are taking up with concerned authorities at the client level, at the ministry level also. We are asking them to look into that to ensure that the supply also domestically it is available at fairly reasonable prices. At the moment what we are doing, we are doing other infrastructure works which are not involved with the OFC, but OFC also will be doing it continuously.

Speaker #2: Long project. Yeah, long project. It is a—

Speaker #4: The prices—the prices might change, you know, change also. Parikshit ji, it's a long-duration project. So, you know, it is not that the price which is prevailing in the market will continue for eternity, you know.

Speaker #4: This might undergo some change, and we are in regular touch with the authorities, the concerned departments. And we have not—we only—all the...

Speaker #4: We have raised this issue with the client, and we are hopeful of some kind of resolution in the near future. What is the pending order book, sir?

Neerad Sharma: It's a long project.

Sanjay Pusarla: It's a long project.

Neerad Sharma: The prices might change also. Parikshit, it's a long duration project. It is not that the price which is prevailing in the market will continue for eternity. This might undergo some change. We are in regular touch with the authorities, the concerned departments, and we have, not we only, all bidders have raised this issue with the client, and we are hopeful of some kind of resolution in the near future.

Speaker #4: And is it a fixed-price contract on the optical fiber site?

Speaker #2: 2,000 is the order book. 6,000, yeah. 6,500 is the balance order to be executed for Bharat Net projects.

Speaker #4: And is it a fixed price contract? I mean, especially the optical fiber part.

Speaker #2: Yeah, yeah, it's a fixed-price contract.

Speaker #4: Okay. And if the current prices prevail, and if we have to execute, then there will be a loss on this, right?

Parikshit Kandpal: What is the pending order book, sir? Is it a fixed price contract on the optical fiber side?

Neerad Sharma: 6,000 is the order.

Speaker #2: It may not be resulting in a loss, but it will result in a lesser profit. But what actually Mr. Neeraj explained to you is that the prices will not continue forever like this.

Sanjay Pusarla: 6,500 is the balance order to be executed for Bharat project.

Parikshit Kandpal: Is it a fixed price contract? I mean, especially the optical fiber part.

Speaker #2: There can be ups and downs in the prices. We are expecting that the prices will get smoother over a period of time.

Sanjay Pusarla: Yeah, it's a fixed price contract.

Parikshit Kandpal: Okay. If the current prices prevail, and if we have to execute, then there will be a loss on this, right?

Speaker #5: Okay.

Speaker #4: It's a long gestation project, Mr. Kandpal. So, you know, as I said, it is not only about NCC. There are other bidders. The future of the Bharat Net Project depends on how these prices—and not only the price—are considered.

Sanjay Pusarla: It may not be resulting into a loss, but it will result into a lesser profit. What actually Mr. Neerad explained to you, the prices will not be continued forever like this. There can be ups and downs in the prices. We are expecting that the prices will get smoothened over a period of time.

Speaker #4: We unduly always focus on the price and do not look at the availability part, you know, of the cables. Unless these issues are sorted out, you know, it would be very difficult to timely complete the total Bharat Net Project.

Parikshit Kandpal: Okay.

Neerad Sharma: It's a long gestation project, Mr. Kandpal. As I said, and it is not only about NCC, there are other bidders and the whole future of the BharatNet project depends on how these prices, and not only the price. We unduly always focus on the price and do not look at the availability part of the cables. Unless these issues are sorted out, it would be very difficult to timely complete the total BharatNet project. As I brought to your attention, we are in regular touch with the client, and we are hopeful of some kind of resolution in the next few quarters.

Speaker #4: As I mentioned earlier, we are in regular touch with the client, and we are hopeful of some kind of resolution in the next few quarters.

Speaker #4: This is the last question, sir, on the execution. Thanks, sir. I mean, we have been persisting with you to give guidance, and this time, you have given it.

Speaker #4: So the question is, you earlier in the call spoke about the challenges and gave one or two points. But till now, in this quarter Q2, have you seen the execution intensity reducing, or is it in line with your expectation or the run rate you were seeing in Q1, FY27?

Parikshit Kandpal: Okay. This is the last question, sir, on the execution. Thanks for, I mean, we have been persisting with you to give guidance, and nice timing you have given it. The question is, you earlier in the call said about the challenges and one or two points you gave, but till now in this quarter Q2, have we seen the execution intensity reducing or is it in line with your expectation or the run rate you were seeing in Q1 FY27?

Speaker #4: Please repeat your question, Mr. Kandpal. So—

Speaker #2: Your voice is not very clear.

Speaker #4: I was asking, sir. I was asking where you had earlier— to an earlier question— said that the execution will depend on the collections and the site availability.

Speaker #4: So given that you have done—surprised us positively on the execution in Q1—so in Q2 till now, July month and August, is there any challenge on execution and site availability, or is it the usual execution which you have done in Q1?

Neerad Sharma: Could you please repeat your question, Mr. Kanthal?

Parikshit Kandpal: So-

Neerad Sharma: Your voice is not very clear.

Parikshit Kandpal: I was asking, sir. You in two earlier questions said that the execution will depend on the collections and the site availability. Given that you have surprised us positively on the execution in Q1, in Q2 till now, July month and August, is there any challenges on execution and the site availability, or is it as usual execution, which you have done in Q1, similar kind of like, there is no challenges and that execution is happening smoothly? That is what I wanted to know.

Speaker #4: So, similar kind of, like, there are no challenges and the execution is happening smoothly. That is what I wanted to know.

Speaker #2: As we speak today, it is, it is moving, you know, smoothly. We are making good progress. But as I have called this out, you know, in trying to answer one question on the related subject, the environment remains uncertain, you know, and it is very difficult to, you know, say for a certainty that, you know, this is how the future quarters would, how would, you know, the fund allocation.

Speaker #2: But to cut a long story short, as we speak today, things appear to be the same as last quarter.

Neerad Sharma: As we speak today, it is moving smoothly. We are making good progress. As I have called this out, in trying to answer one question on the related subject, the environment remains uncertain, and it is very difficult to say for a certainty that this is how the future quarters would how would the fund allocation. To cut a long story short, as we speak today, things appear to be the same as last quarter.

Speaker #5: Okay.

Speaker #4: Sure, sir. Thank you, Anushka Damaskar. That's one of the questions.

Speaker #2: Thank you. Thanks.

Speaker #1: Thank you. The next question comes from the line of Manav Bhatra from Disvelado Advisory. Please go ahead.

Speaker #5: Hello. I'm an auditor, sir.

Speaker #2: Yeah, you are audible.

Speaker #5: Yeah. Sir, I wanted to ask about the private sector book. Historically, government projects have dominated your order book. Are you seeing any build-up for the private sector book as well?

Neerad Sharma: Okay. Sure. Thank you, Anushrut. Those are my questions.

Neerad Sharma: Thank you. Thanks.

Operator: Thank you. The next question comes from the line of Manav Batra from the Swaledo Advisory. Please go ahead.

Speaker #2: We are slowly entering into the private sector and, as I said earlier, the private sector order book accounted for about 4% of our total order book.

Manav Batra: Hello. Am I audible, sir?

Neerad Sharma: Yeah, you are audible.

Speaker #2: And we are also looking into those private sector projects; also, slowly, we are getting into them. As you are aware, NCC predominantly deals with real estate, government, central government, PSUs, and banks like ADB or World Bank.

Manav Batra: Yeah. Sir, I wanted to ask about the private sector book basically. Historically, government projects have dominated your order book. Are you seeing any build-up for the private sector book also?

Neerad Sharma: We are slowly entering into the private sector, as I said earlier, the private sector order book constitutes about 4% of our total order book. We are also looking into those private sector projects also. Slowly we are getting into. As you are aware that NCC predominantly deals with either state government, central government, PSUs, banks like ADB or World Bank. Now we are also venturing into the private projects. Slowly we are venturing into it, likely that we will see some kind of our entry into the private projects also, increase in the entry of private projects also.

Speaker #2: But now we are also venturing into the private projects. Slowly, we are venturing into it. And it is likely that we will see some kind of our entry into the private projects also increase, an increase in the entry of private projects also.

Speaker #5: Okay, just a follow-up. I also wanted to ask about, like, what is going to be your debt profile in the next two to three years?

Speaker #5: Do you expect the leverage to, you know, increase in FY27?

Speaker #2: Your voice is not very clear. There is a lot of echo. But I think you are asking about the debt level for the next two or three years, right?

Speaker #2: That's your question, right?

Speaker #5: Yeah, yeah. Yes, sir. Yes, sir.

Manav Batra: Okay. Just a follow-up. I also wanted to ask about what is going to be your debt profile in the next two to three years. Do you expect the leverage to increase in FY27?

Speaker #2: So it is very difficult. See, we have just shared, you know, the, the, the guidance for FY 27. And the process that we follow in NCC, generally we talk about the guidance for the next financial year at the start of the, you know, the financial year.

Neerad Sharma: Your voice is not very clear. There is a lot of echo, I think you are asking about the debt level for the next two, three years, right? That's your question, right?

Speaker #2: So it is very difficult to talk only about debt in the next two, three years on a standalone basis. So next year, when we share about the guidance, maybe we will talk about, you know, this to add a few things on the now the even the contracting is also changing.

Manav Batra: Yeah. Yes, sir.

Neerad Sharma: It is very difficult. See, we have just shared the guidance for FY27. The process that we follow in NCC, generally, we talk about the guidance for the next financial year at the start of the financial year. It is very difficult to talk only about debt in the next two, three years on a stand-alone basis. Next year, when we share about the guidance, maybe we will talk about this. To add a few things on this.

Speaker #2: Now the contracts are coming in either PPP mode, HAM mode, or annuity mode. So, depending on the type of contracts we are going to win, the debt profile also will be changing.

Speaker #2: So that is the reason, I think, Neeraj was mentioning that it's very difficult to predict now, because the way the contracting is happening today is completely different from what it was before.

Manav Batra: Okay.

Neerad Sharma: Now even the contracting is also changing. Now the contracts are coming on either PPP mode or HAM mode or annuity mode. Given the type of contract we are going to win, depending on that, the debt profile also will be changing. That is the reason I think Neeraj was mentioning that it's very difficult to predict now, because the way the contracting is happening today is completely different what it was before.

Sanjay Pusarla: Now even the contracting is also changing. Now the contracts are coming on either PPP mode or HAM mode or annuity mode. Given the type of contract we are going to win, depending on that, the debt profile also will be changing. That is the reason I think Neeraj was mentioning that it's very difficult to predict now, because the way the contracting is happening today is completely different what it was before.

Speaker #5: Okay, thank you, sir. That was my thought.

Speaker #2: Yeah.

Speaker #1: Thank you. Ladies and gentlemen, you are requested to restrict your question to one per participant. I repeat, you are requested to restrict your question to one per participant.

Speaker #1: The next question comes from the line of Dr. Jain from Sapphire Capital. Please go ahead.

Manav Batra: Okay. Thank you, sir. That was my part.

Speaker #5: Hi, sir. Thank you for the opportunity. So, on a blended basis, how do we look at FY28 in terms of revenue and margins, now that we have started picking up on our execution and we expect prices to go down a bit?

Neerad Sharma: Yeah.

Operator: Thank you. Ladies and gentlemen, you are requested to restrict your question to one question per participant. I repeat, you are requested to restrict your question to one question per participant. The next question comes from the line of Diya Jain from Sapphire Capital. Please go ahead.

Speaker #5: I mean, stabilize to some level.

Speaker #2: Madam, we have just shared that your voice is very feeble, but I think you're talking about FY28 guidance. The process that we followed in the earlier question, I have shared the same thing.

Diya Jain: Hi, sir. Thank you for the opportunity. On a blended basis, how do we look at FY28 in terms of revenue and margins now that we have started picking up on our execution and we expect prices to go down a bit, means stabilized from the levels?

Speaker #2: We have just shared the guidance for FY27, and after completion of this financial year, we should be in a position to talk about our guidance for, you know, FY28.

Speaker #2: I do not have any guidance whatsoever to share for FY28.

Neerad Sharma: Your voice is very feeble. I think you're talking about FY28 guidance. The process that we follow in the earlier question, I have shared the same thing. We have just shared the guidance for FY27. After the completion of this financial year, we should be in a position to talk about our guidance for FY28. I do not have any guidance whatsoever to share for FY28.

Speaker #5: Okay, sir. No problem. And from the OAC side, how much revenue? Hello?

Speaker #2: Yeah, yeah. Go ahead, please.

Speaker #5: On the OAC side, how much revenue have we recognized in Q1?

Speaker #2: When you say OAC side, which side are you talking about? She was talking about Barclay, am I right?

Speaker #5: Yeah, yeah, yeah.

Speaker #2: Yeah, we did about 185 crores in Q1. And cumulatively, to date, we have done about 620 crores.

Diya Jain: Okay, sir. No problem. From the OFC side, how much revenue Hello?

Neerad Sharma: Yeah, go ahead, please.

Sanjay Pusarla: Yeah, go ahead, please.

Speaker #5: Okay, sir. Got it. Thank you, and all the best.

Diya Jain: On the OFC side, how much revenue have we recognized in Q1?

Speaker #1: Thank you. The next question comes from the line of Saqeeb E. Kapoor from Kapoor Company. Please go ahead.

Neerad Sharma: OFC side means which side are you talking? She was talking about BharatNet. Am I right?

Neerad Sharma: OFC side means which side are you talking?

Sanjay Pusarla: She was talking about BharatNet. Am I right?

Speaker #4: Yeah. Namaskar, Neeraj ji and team. Hope I'm audible.

Diya Jain: Yeah.

Neerad Sharma: We did about INR 185 crores in the Q1, and cumulatively up to date, we have done about INR 620 crores.

Sanjay Pusarla: We did about INR 185 crores in the Q1, and cumulatively up to date, we have done about INR 620 crores.

Speaker #2: Yeah, you are audible. Namaskar, Saqeeb ji.

Speaker #4: Thank you, sir, for the opportunity. Sir, as a prudent management, we have always apprised the market, the investors, and also alerted ourselves when the timing was not correct to give guidance.

Diya Jain: Okay, sir. Got it. Thank you. All the best.

Operator: Thank you. The next question comes from the line of Saket Kapoor from Kapoor & Co. Please go ahead.

Operator: Thank you. The next question comes from the line of Saket Kapoor from Kapoor & Company. Please go ahead.

Speaker #4: But overall, we it is always prudent to it is always prudent to see that, we, we guide and deliver above, above the guidance. So is that prudency can be expected are a conservative management and whatever we have guided, our aspiration or endeavor should be to, to stay above the same both in terms of revenue recognition as well as in terms of EBITDA margin.

Saket Kapoor: Yeah. Namaskar, Neeraj Ji and team. Hope I'm audible.

Sanjay Pusarla: Yeah, you're audible. Namaskar, Saket Ji.

Saket Kapoor: Thank you, sir, for the opportunity. Sir, as a prudent management, we have always apprised the market, the investors, and also alerted us when the timing was not correct to give guidance. Overall, it is always prudent to see that we guide and deliver above the guidance. Is that prudency can be expected from NCC also that we are a conservative management and whatever we have guided, our aspiration or endeavor should be to stay above the same, both in terms of revenue recognition as well as in terms of EBITDA margin. Is this understanding fair on part of investing community?

Speaker #4: Is this understanding fair on the part of the investing community?

Speaker #2: Thank you, Ms. Thank you, Mr. Kapoor, at the very outset, for the kind words. I will continue to live up to your expectations.

Speaker #4: Okay, sir. And then, looking into the river linking project part, sir, can you please summarize what is the value and how much have we mobilized?

Speaker #4: And secondly, sir, out of this, as you mentioned, Neeraj ji, at the beginning, ₹81,000 crore worth of orders are in the mobilization phase, in some phase or the other.

Sanjay Pusarla: Thank you, Mr. Kapoor, at the very outset, for the kind words, and we hope to continue to live up to your expectations.

Speaker #4: So, what should be the expected execution period for this entire thing, in its entirety, to get executed? The average period.

Saket Kapoor: Okay, sir. Looking into the river linking project part, sir, can you please summarize what is the value and how much have we mobilized? Secondly, sir, out of this, as you mentioned, Neeraj Ji, that in the beginning, that INR 81,000 crores worth of orders are in mobilization phase in some phase or the other. What should be the expected execution period for this thing in entirety to get executed? The average period.

Speaker #2: A ₹7,000 crore order book consists of many orders, which are spanning between two years to five years. Okay. If you take a mining order, it is almost for seven years.

Speaker #2: Seven years. And if you take other orders, some of those orders span maybe two years, some of the orders are between three to four years.

Speaker #2: Three to four years. But one thing we can say is that all these ₹81,000 crores of orders are in executable mode. Now, only the orders which we have received in this quarter, about ₹3,889 crores, are the orders which were received in the current quarter.

Sanjay Pusarla: INR 81,000 crores of order book consists of many orders, which are spanning between two years to five years. Okay. If you take a mining order, which is almost like for seven years. If you take other orders, they are spanning, some of the orders are maybe two years, some of the orders are between three to four years.

Neerad Sharma: INR 81,000 crores of order book consists of many orders, which are spanning between two years to five years. Okay. If you take a mining order, which is almost like for seven years. If you take other orders, they are spanning, some of the orders are maybe two years, some of the orders are between three to four years.

Speaker #2: They will start producing the turnover maybe from the third quarter onwards, because initial mobilization time is required. As far as the Ken-Betwa is concerned, the total order value is ₹3,390 crore.

Saket Kapoor: Right.

Sanjay Pusarla: One thing what we can say is that all these INR 81,000 crores of orders are in executable mode. Now, only the orders which we have received in this quarter, about INR 3,889 crores. They are the orders which were received in the current quarter. They will start producing the turnover maybe from the Q3 onwards, because initial mobilization time is required. As far as the Ken Betwa is concerned, the total order value is INR 3,390 crores, and so far, we have executed about INR 116.35 crores. Thirdly, the Ken Betwa project, we have already completely mobilized at the site. All the equipment has been received. Now the season also will start. Probably if rains are there will be a little slowdown in the progress, but if the rains are not there, the progress will be good.

Neerad Sharma: One thing what we can say is that all these INR 81,000 crores of orders are in executable mode. Now, only the orders which we have received in this quarter, about INR 3,889 crores. They are the orders which were received in the current quarter. They will start producing the turnover maybe from the Q3 onwards, because initial mobilization time is required. As far as the Ken Betwa is concerned, the total order value is INR 3,390 crores, and so far, we have executed about INR 116.35 crores. Thirdly, the Ken Betwa project, we have already completely mobilized at the site. All the equipment has been received. Now the season also will start. Probably if rains are there will be a little slowdown in the progress, but if the rains are not there, the progress will be good.

Speaker #2: And so far, we have executed about ₹116.35 crores. And thirdly, the Ken Betwah project—we have already completely mobilized at the site. All the equipment has been received.

Speaker #2: Now, the season also will start. Probably, if rains are there, there will be a little slowdown in the progress. But if the rains are not there, the progress will be good.

Speaker #4: Right, sir. And only to add, sir, in the smart meter business—

Speaker #1: Sorry to interrupt, sir.

Speaker #4: Okay, bye. Okay, bye. I joined the queue. Yeah, yeah, yeah, yeah, yeah. Thank you.

Speaker #1: The next question comes from the line of Chandramoli Jagannathan, an individual investor. Please go ahead.

Speaker #5: Hello, sir. Regarding the smart meter SPV, where you mentioned there is a, you know, build annuity from FY27–28 onwards, how does it work, sir?

Saket Kapoor: Right, sir. Only to add, sir, in the smart meter business.

Speaker #5: What is the annuity income that we can expect? Hello?

Operator: Sorry to interrupt, sir.

Saket Kapoor: Okay, bhai.

Operator: May I please interrupt you?

Saket Kapoor: Yeah.

Operator: Thank you. The next question comes from the line of Chandramouli Jagannathan, an individual investor. Please go ahead.

Speaker #2: Yes, sir. Yes, sir. I need to check my internet. Whatever the volume actually, the CAPEX part will be completed by March 27. We are expecting that all the smart meter projects, either at Maharashtra or at Bihar, will be completed by March 27.

Chandramouli Jagannathan: Hello, sir. Smart meter HTB, where you have mentioned there is a build annuity from FY27, 28 onwards. How does it work, sir? What is the annuity income that we can expect? Hello.

Speaker #2: By that time, the CAPEX part will be over. Then we will have the O&M revenue, which will be consistent and on a regular basis.

Sanjay Pusarla: Yes, sir. Actually, the CapEx part will be completed by March 2027. We are expecting that all the smart meters projects, either at Maharashtra or Bihar, will be completed by March 2027. By that time, the CapEx part will be over. Then we will have the O&M revenue, which will be consistent, and on a regular basis, it will be accruing to the organization.

Speaker #2: It will be accruing to the organization.

Speaker #5: What would be the revenue, sir, roughly? Any estimate, sir?

Speaker #2: I'll come back to you on this. Maybe offline, I'll come back to you, sir. I do not have it right now; I don't have any number right now.

Speaker #2: But, generally, what happens is that for every 1 lakh meters that we are bringing into operation, we'll be generating about 1 crore rupees for the O&M.

Chandramouli Jagannathan: What would be the revenue, sir? Roughly, any estimate, sir?

Speaker #2: For every 1 lakh meters coming into operation, we'll be generating ₹1 crore of revenue as O&M revenue.

Sanjay Pusarla: I'll come back to you on this. Maybe offline, I'll come back to you, sir.

Chandramouli Jagannathan: Okay.

Sanjay Pusarla: Right now, I don't have any number right now. Generally, what happens is that for every 100,000 meters that we are coming into operation, we'll be generating about INR 1 crore for the O&M. For every 100,000 of meters coming into operation, we'll be generating INR 1 crore for revenue, as O&M revenue.

Speaker #5: Okay, okay, okay, okay. So the projects will get over by, I mean, the CAPEX part by March '27. How about the 6,700?

Speaker #2: Given the situations, what is happening now at the prevailing time, so we are expecting that the project should be completed by March 27.

Speaker #5: I mean, to the whole ₹6,800 crores, approximately.

Speaker #2: Yes, we have even mobilized ourselves. We have our resources, and we are geared up. And to execute that, whatever number of people are required, contractors are required, we have mobilized ourselves.

Chandramouli Jagannathan: Okay. The projects will get over by, I mean, the CapEx part by March 2027.

Sanjay Pusarla: Yes, sir.

Chandramouli Jagannathan: Out of the 6,700.

Speaker #2: To ensure that we complete the project by March 27.

Sanjay Pusarla: Given the situation what is happening now at the prevailing time, we are expecting that the project should be completed by March 2027.

Speaker #5: Sir, sorry, whatever the annuity revenue that you are talking about, does it straight away go into the bottom line? Is it a service kind of revenue, or is there any overhead for that?

Chandramouli Jagannathan: I mean the whole ₹6,800 crores approximately.

Sanjay Pusarla: Yes. We have even mobilized ourselves. We have our resources, and we geared up, and to execute that, whatever number of people are required, contractors are required, we have mobilized ourselves to ensure that we complete the project by March 27.

Speaker #2: There will be overhead, sir.

Speaker #5: Okay, thank you, sir. That's all from me.

Speaker #2: Right. Welcome.

Speaker #1: Thank you. The next question comes from the line of Karan Gupta from Kavi Capital. Please go ahead.

Chandramouli Jagannathan: Sir, sorry. Whatever the annuity revenue that you are talking about, it straightaway goes into a bottom line, it's service kind of revenue, or there is any overhead for that?

Speaker #5: Yes, sir. Thanks for the opportunity. I just wanted to follow up on the previous question about the smart meter project. When bidding for the project, what was the underlying return on capital that management was looking at?

Sanjay Pusarla: There will be overhead, sir.

Chandramouli Jagannathan: Okay. Thank you, sir. That's all from me.

Sanjay Pusarla: Right. Welcome.

Operator: Thank you. The next question comes from the line of Karan Gupta from Kavi Capital. Please go ahead.

Operator: Thank you. The next question comes from the line of Karan Gupta from Cavi Capital. Please go ahead.

Speaker #2: We were looking at an ARR of 18%, and we expect that we'll be maintaining that in the project.

Karan Gupta: Yes, sir. Thanks for the opportunity. Just wanted to follow up from the previous question on the smart meter project. When bidding for the project, what was the underlying return on capital that management was looking at?

Speaker #5: Okay, and is that on total capital or on equity?

Speaker #2: Yeah, on the total capital.

Speaker #5: Including that. Including that. And just one more question: how many total meters are expected to be installed under those projects?

Sanjay Pusarla: We were looking at an IRR of 18%, and we expect that we'll be maintaining that in the project.

Speaker #2: So, we have so far installed about 45% of the total meters that are required to be installed. And if you ask me, we have done—huh?

Karan Gupta: Okay. Is that on total capital or on equity?

Speaker #4: 7 to 8 million.

Speaker #2: Yeah, 7 to 8 million. And we are supposed to—we have installed more in the case of Maharashtra, about beyond 50%. And it was a little lower in the case of Bihar.

Sanjay Pusarla: Yeah, on the total capital.

Karan Gupta: Including debt. Just one more question. How many total meters are expected to be installed under those projects?

Speaker #2: On average, it comes to about 45% of the total meters to be installed across all three contracts.

Sanjay Pusarla: We have so far installed about 45% of the total meters that are required to be installed.

Karan Gupta: Seven to eight million.

Sanjay Pusarla: If you ask me,

Speaker #5: Okay, sir. So, 7 to 8 million.

Karan Gupta: Seven to eight million.

Sanjay Pusarla: Yeah, 7 to 8 million. We have installed more in the case of Maharashtra, about beyond 50%, and it was little lower in the case of Bihar. The average, it comes to about 45% of the total meters to be installed against all the three contracts.

Speaker #1: Sorry to interrupt, sir. May I request you to please follow up, because the response—

Speaker #5: Wasn't very clear. So, 7 to 8 million—was that the total number that is expected to be installed, or is that what you've already installed?

Speaker #2: No, no, no. Seven to eight million is the approximate total number of meters that we are expected to install in all these three smart meter projects.

Speaker #2: Two projects are in the state of Maharashtra in SPV, and one project is in Bihar, which is in our NCC, the parent company's name. So, I'm talking about the total number of meters which are expected to be installed.

Karan Gupta: Okay, sir. 7 to 8 million was the total number that is-

Operator: Sorry to interrupt, sir. May I request you to please join your-

Karan Gupta: Yeah, just a follow-up because the response wasn't very clear. 7 to 8 million was the total number that is expected to be installed, or is that what you've already installed?

Speaker #2: And as my colleague has already answered, we have already achieved about, you know, 45% of this number.

Sanjay Pusarla: No. 7 to 8 million is the approximately total number of meters that we are expected to install in all these three smart meter projects. Two projects are in the state of Maharashtra in SPV, and one project is in Bihar, which is in our NCC's parent company's name. I am talking about the total number of meters which are expected to be installed. As my colleague has already answered, we have already achieved about 45% of this number.

Neerad Sharma: No. 7 to 8 million is the approximately total number of meters that we are expected to install in all these three smart meter projects. Two projects are in the state of Maharashtra in SPV, and one project is in Bihar, which is in our NCC's parent company's name. I am talking about the total number of meters which are expected to be installed. As my colleague has already answered, we have already achieved about 45% of this number.

Speaker #5: Perfect, sir. Thank you very much.

Speaker #2: Thank you very much.

Speaker #1: Thank you. The next question comes from the line of Srinath Reddy from Ray Investment. Please go ahead.

Speaker #5: Oh, yes, sir. Thank you for taking my question. I have a question regarding the approximately ₹180 crore receivables from the Telangana government relating to Mission Bhagiratha.

Speaker #5: So, like, which were subject to recent High Court prospects? Could you please update on that—whether, how much amount is received and, like, what is expected?

Karan Gupta: Perfect, sir. Thank you very much.

Operator: Thank you. The next question comes from the line of Srinath Reddy from REI Investments. Please go ahead.

Operator: Thank you. The next question comes from the line of Srinath Reddy from Rei Investments. Please go ahead.

Speaker #2: We have received about ₹50 crore against that, and we are expected to receive the balance money also at the rate of 15% every month.

Srinath Reddy: Yes, sir. Thank you for taking my question. I have a question regarding the approximately INR 180 crore receivables from the Telangana government relating to Mission Bhagiratha, which were subject to recent High Court proceedings. Could you please update on that, whether how much amount is received and what is expected?

Speaker #4: Subjective. It's a subjective matter, you know, but it's a subjective matter. This is being, you know, monitored by the courts. So, you know, maybe it's very diff—I mean, we hope to get paid as per the schedule.

Sanjay Pusarla: We have received about INR 50 crores against that, we are expected to receive the balance money also at the rate of 15% every month.

Speaker #5: Yes, sir. Sir, but again, if suppose if the government doesn't provide, on a monthly basis, so will you again fight through judicial? I mean, will you go will you continue proceedings, or will you take the back off?

Operator: Okay.

Srinath Reddy: Okay.

Sanjay Pusarla: It's a sub judice matter. This is being monitored by the courts. It is very difficult. We hope to get paid as per the schedule.

Neerad Sharma: It's a sub judice matter. This is being monitored by the courts. It is very difficult. We hope to get paid as per the schedule.

Speaker #2: No, as Mr. Neeraj said, it is sub judice. I will not be able to dwell on that.

Speaker #4: It is very difficult, Mr. Reddy, to, you know, decide—say all this. The matter is sub judice, and why are we hoping that this will not get paid, you know?

Srinath Reddy: Yes, sir. Again, if suppose the government doesn't provide on a monthly basis, will you again fight through judicial? Will you continue proceedings or will you back off?

Speaker #4: We are waiting. We are hopeful.

Speaker #5: No, I see, like, some of the cases were backed off from the NCC itself. Previously, I mean, like, there are a couple of cases.

Speaker #5: So, which you have initiated, but again, back off. That's the reason why, sir. You know, it's a huge amount, right? ₹180 crore is almost like 5% of the total receivables. ₹180 crore is something like 5% of total receivables.

Sanjay Pusarla: As Mr. Neeraj said, it is a sub judice. I will not be able to dwell on that.

Neerad Sharma: It is very difficult, Mr. Reddy, to say all this. Matter is sub judice. Why are we hoping that this will not get paid? We are waiting. We are hopeful.

Speaker #5: So that's the reason I'm asking.

Speaker #4: It's a sub judice matter, you know. We have nothing more, really, to add.

Srinath Reddy: No, I see some of the cases were back off from the NCC itself. There are a couple of cases, which we have initiated but again back off. That's the reason why. It's a huge amount, right? INR 180 crore is almost 5% of the total receivables. INR 180 crore is something 5% of total receivables. That's the reason I'm asking.

Speaker #5: Okay, sir.

Speaker #1: Thank you. We have the last question from the line of Sravansha from Daulat Capital. Please go ahead.

Speaker #2: Again, sir.

Speaker #4: hi, sir. sir, just two things, in terms of the depreciation and the finance cost. So, whether the, GMLR or TBM, the current depreciation in this quarter, let's say 67 or crore, when can we start seeing the, this, this, going up and to what extent it can, can go up on a quarterly basis?

Sanjay Pusarla: It's a sub judice matter. We have nothing more really to add.

Neerad Sharma: It's a sub judice matter. We have nothing more really to add.

Srinath Reddy: Okay, sir.

Operator: Thank you. We have the last question from the line of Shravan Shah from Dolat Capital. Please go ahead.

Speaker #4: And at the same time, in terms of the finance cost also, so the broadly, kind of a 3.2, 3% of the revenue that's the way one can look at, or the given the, recently the, gross rate has has increased.

Sanjay Pusarla: Yes, Shravan.

Shravan Shah: Hi, sir. Sir, just two things in terms of the depreciation and the finance cost. Whether the JMLR or TBM, the current depreciation in this quarter, let's say INR 67 crore, when can we start seeing this going up and to what extent it can go up on a quarterly basis? At the same time, in terms of the finance cost also. The broadly, kind of a 3.2% or 3% of the revenue, that's the way one can look at, or given that recently the gross liabilities has increased, we can see maybe a slight increase from here also.

Speaker #4: So we can see maybe a slight increase from here also.

Speaker #2: Two things, sir. One is on the depreciation. We are expecting the TBM will also start functioning from now. Once it starts functioning, probably maybe from the third quarter, the depreciation also will go up.

Speaker #4: First quarter, fourth quarter—it depends.

Speaker #2: Third quarter. In the third quarter, we will start recognizing the depreciation on the TBM. That is one. And the second thing, you were asking about the interest.

Sanjay Pusarla: Two things. One is on the depreciation. We are expecting that TBM will also start functioning from now. Once it starts functioning, probably maybe from Q3, the depreciation also will go up.

Speaker #2: Given the situation, if the payments are coming, we'll be maintaining the same kind of percentage of interest cost. And we are looking at the corrections in the coming months.

Shravan Shah: Q1, Q4, it depends.

Sanjay Pusarla: Q3 it will start. We'll start recognizing the depreciation of the TBM. That is one. Second thing you were asking on the interest. Given the situation, if the payments are coming, we'll be maintaining the same kind of percentage of interest cost. We are looking at the corrections in the coming months. If these corrections are coming, probably the interest cost may get softened.

Speaker #2: If these corrections are coming, probably the interest case cost may get softened.

Speaker #5: Okay, okay. Got it. And thank you, and all the best, sir.

Speaker #2: Yeah.

Speaker #1: Thank you. We'll take that as the last question, and I would now like to hand the conference over to management for closing comments.

Speaker #1: Thank you, and over to you.

Speaker #4: Thank you very much for your very enthusiastic participation. Thank you. Have a good day.

Speaker #2: Thank you so much. Thank you, everyone.

Shravan Shah: Okay. Got it. Thank you and all the best, sir.

Sanjay Pusarla: Yeah.

Operator: Thank you. We'll take that as the last question. I would now like to hand the conference over to the management for closing comments. Thank you, over to you.

Sanjay Pusarla: Thank you very much for your very enthusiastic participation. Thank you. Have a good day.

Neerad Sharma: Thank you so much. Thank you, everyone.

Operator: On behalf of JM Financial, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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