Q1 2027 Rail Vikas Nigam Ltd Earnings Call

August 13, 2026

Moderator: Good evening, ladies and gentlemen. I am Karthikeyan, moderator for the conference call. We would like to welcome you all to the investors' call of Rail Vikas Nigam Ltd. for Q1 of FY 2026-27. We have with us today the management team of RVNL. Mr. V. Mohammed, Chairman & Managing Director. Srimati Anupam Ban, Director Personnel. Shri Mritunjay Pratap Singh, Director Operations. Shri Abhishek Kumar, Director Finance. Shri Amit Tandon, Director Projects. And Shri Chandan Kumar Verma, Chief Financial Officer. As a reminder, all participants will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. If you need assistance during the conference call, please signal an operator by pressing star then zero on a touchtone phone. Please note that this conference is being recorded.

Operator: Good evening, ladies and gentlemen. I am Karthikeyan, moderator for the conference call. We would like to welcome you all to the investors' call of Rail Vikas Nigam Ltd. for Q1 of FY 2026-27. We have with us today the management team of RVNL. Mr. V. Mohammed, Chairman & Managing Director. Srimati Anupam Ban, Director Personnel. Shri Mritunjay Pratap Singh, Director Operations. Shri Abhishek Kumar, Director Finance. Shri Amit Tandon, Director Projects. And Shri Chandan Kumar Verma, Chief Financial Officer. As a reminder, all participants will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. If you need assistance during the conference call, please signal an operator by pressing star then zero on a touchtone phone. Please note that this conference is being recorded.

Speaker #2: Good evening, ladies and gentlemen. I'm Karthik Iyer, moderator for the conference call. I would like to welcome you all to the Investors Call of Rail Vikas Nigam Limited for Q1 of FY 2026-27.

Speaker #2: We have with us today the management team of RVNL: Salim Ahmed, Chairman and Managing Director; Srimati Anupam Ban, Director (Personnel); Muthunjay Prasad Singh, Director (Operations); Abhishek Kumar, Director (Finance); Amit Tanden, Director (Projects); and Sri Chandan Kumar Varma, Chief Financial Officer.

Speaker #2: As a reminder, all participants will be in listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes.

Speaker #2: If you need assistance during the conference call, please signal an operator by pressing START, then ZERO, on a touch-tone phone. Please note that this conference is being recorded.

Speaker #2: We will start with a brief opening remark from the CND, sir, which will be followed by a question-and-answer session. Thank you, and over to you, sir.

Moderator: We will start with a brief opening remarks from the CMD Sir which will be followed by a question and answer session. Thank you and over to you, sir.

Operator: We will start with a brief opening remarks from the CMD Sir which will be followed by a question and answer session. Thank you and over to you, sir.

Speaker #3: Good evening, everyone. I extend a warm welcome to all of you to the Rail Vikas Nigam Limited Q1 Financial Year 2026-27 earnings call. It is my pleasure to have you with us as we share our performance and key developments for the quarter.

V. Mohammed: Good evening everyone. I extend our warm welcome to all of you to the RVNL Q1 FY26, FY27 earning call. It is my pleasure to have you with us as we share our performance and key developments for the quarter. Indian infrastructure sector is witnessing strong growth driven by sustained government investment, modernization, multi-modal connectivity, and the transition towards green mobility creating significant opportunities for RVNL. The company remains committed to supporting the nation's infrastructure vision through high quality sustainable projects while diversifying its order book across transmission, road and highways, ports and harbors, metros, solar energy, and overseas market. This diversified portfolio enhances RVNL revenue, expands growth opportunities, and position of the company for sustained long term value creation.

Shri Saleem Ahmad: Good evening everyone. I extend our warm welcome to all of you to the RVNL Q1 FY26, FY27 earning call. It is my pleasure to have you with us as we share our performance and key developments for the quarter. Indian infrastructure sector is witnessing strong growth driven by sustained government investment, modernization, multi-modal connectivity, and the transition towards green mobility creating significant opportunities for RVNL. The company remains committed to supporting the nation's infrastructure vision through high quality sustainable projects while diversifying its order book across transmission, road and highways, ports and harbors, metros, solar energy, and overseas market. This diversified portfolio enhances RVNL revenue, expands growth opportunities, and position of the company for sustained long term value creation.

Speaker #3: The Indian infrastructure sector is witnessing strong growth, driven by sustained government investment, modernization, multimodal connectivity, and the transition toward green mobility. This is creating significant opportunities for RVNL.

Speaker #3: The company remains committed to supporting the nation's infrastructure vision through high-quality, sustainable projects while diversifying its order book. Across transmission, roads and highways, ports and harbors, metros, solar energy, and overseas markets, this diversified portfolio enhances RVNL's resilience, extends growth opportunities, and positions the company for sustained, long-term value creation.

Speaker #3: The first quarter of financial year 2027 has commenced on a positive and steady note for RVNL, with the company remaining firmly focused on sustaining operational momentum and advancing its key projects.

V. Mohammed: The first quarter of FY27 has commenced on a positive and steady note for RVNL with the company remaining firmly focused on sustaining operational momentum and advancing its key projects. Our fundamentals remain robust, supported by a healthy order book, a strong project pipeline, and continued focus on operational efficiency. At the same time, we are actively pursuing new business opportunities across the infrastructure sector. With the government's continued focus on railway and infrastructure development, we see significant opportunities ahead in real estate, port and hydro, highways, and sustainable infrastructure. We remain confident that execution will gather further momentum in the coming quarters, and that RVNL is well-positioned to sustain its growth trajectory and create long-term value for all stakeholders. The company is targeting work orders of around INR 20,000 crore during this year, in addition to the existing order book.

Shri Saleem Ahmad: The first quarter of FY27 has commenced on a positive and steady note for RVNL with the company remaining firmly focused on sustaining operational momentum and advancing its key projects. Our fundamentals remain robust, supported by a healthy order book, a strong project pipeline, and continued focus on operational efficiency. At the same time, we are actively pursuing new business opportunities across the infrastructure sector. With the government's continued focus on railway and infrastructure development, we see significant opportunities ahead in real estate, port and hydro, highways, and sustainable infrastructure. We remain confident that execution will gather further momentum in the coming quarters, and that RVNL is well-positioned to sustain its growth trajectory and create long-term value for all stakeholders. The company is targeting work orders of around INR 20,000 crore during this year, in addition to the existing order book.

Speaker #3: Our fundamentals remain robust, supported by a healthy order book, a strong project pipeline, and continued focus on operational efficiency. At the same time, we are actively pursuing new business opportunities across the infrastructure sector. With the government's continued focus on railway and infrastructure development, we see significant opportunities ahead in real estate, port and hydro, highways, and sustainable infrastructure.

Speaker #3: We remain confident that execution will gather further momentum in the coming quarters, and that RVNL is well positioned to sustain its growth trajectory and generate long-term value for all stakeholders.

Speaker #3: The company is targeting work orders of around ₹20,000 crore during this year, in addition to the existing order book, out of which approximately ₹5,000 crore has already been received during Q1.

V. Mohammed: Out of which approximately INR 5,000 crore has already been received during Q1. Further, the company expects its top line to grow by around 15%, while the bottom line is projected to increase by approximately 15% to 20%, reflecting continued business momentum and a positive growth outlook. I am pleased to share that our order book continues to remain strong and diversified, providing healthy multi-year execution visibility for the company. During the quarter ended April to June 2026, the order inflow stood at INR 5,417 crore. As on 30 June 2026, the company total order book stood at an impressive INR 93,492 crore. Order book is primarily driven by railway with INR 58,000 crore, followed by S&T at INR 12,000 crore, ports, roads, and highways at INR 3,651 crore, metros at INR 5,700 crore, power and transmission at INR 4,000 crore, and hydro and irrigation projects at INR 1,626 crore.

Shri Saleem Ahmad: Out of which approximately INR 5,000 crore has already been received during Q1. Further, the company expects its top line to grow by around 15%, while the bottom line is projected to increase by approximately 15% to 20%, reflecting continued business momentum and a positive growth outlook. I am pleased to share that our order book continues to remain strong and diversified, providing healthy multi-year execution visibility for the company. During the quarter ended April to June 2026, the order inflow stood at INR 5,417 crore. As on 30 June 2026, the company total order book stood at an impressive INR 93,492 crore. Order book is primarily driven by railway with INR 58,000 crore, followed by S&T at INR 12,000 crore, ports, roads, and highways at INR 3,651 crore, metros at INR 5,700 crore, power and transmission at INR 4,000 crore, and hydro and irrigation projects at INR 1,626 crore.

Speaker #3: Further, the company expects its top line to grow by around 15%, while the bottom line is projected to increase by approximately 15% to 20%, reflecting continued business momentum and a positive growth outlook.

Speaker #3: I'm pleased to share that our order book continues to remain strong and diversified, providing healthy multi-year execution visibility for the company. During the quarter ended April to June 2026, the order inflow stood at ₹5,417 crore. As on June 30, 2026, the company's total order book stood at an impressive ₹93,492 crore.

Speaker #3: The order book is primarily driven by railways, with ₹58,000 crore, followed by S&T at ₹12,000 crore; ports, roads, and highways at ₹3,651 crore; metros at ₹5,700 crore; and power and transmission at ₹4,000 crore.

Speaker #3: And hydro and irrigation projects at ₹1,626 crore. The growth and movement in the order book were supported by new railway and multi-sector infrastructure works awarded to RVNL.

V. Mohammed: The growth and movement in the order book was supported by new railway and multi-sector infrastructure works awarded to RVNL, steady execution leading to revenue recognition, and our disciplined margin-focused selective bidding strategy. This strong and well-balanced order book position the company confidently for sustained growth in the coming years. Company also demonstrated consistent execution pace in Q1 FY27, achieving healthy year-on-year revenue expansion, with standalone turnover at INR 4,300 crore, higher by 9.62% year-on-year, reflecting steady execution momentum and improved project activity during the quarter. On a consolidated basis, turnover stood at INR 4,321 crore, which is higher by 10.55% year-on-year, Q1 FY26 to Q1 FY27, demonstrating sustained project delivery and solid core execution strength. Profitability also improved on a year-on-year basis.

Shri Saleem Ahmad: The growth and movement in the order book was supported by new railway and multi-sector infrastructure works awarded to RVNL, steady execution leading to revenue recognition, and our disciplined margin-focused selective bidding strategy. This strong and well-balanced order book position the company confidently for sustained growth in the coming years. Company also demonstrated consistent execution pace in Q1 FY27, achieving healthy year-on-year revenue expansion, with standalone turnover at INR 4,300 crore, higher by 9.62% year-on-year, reflecting steady execution momentum and improved project activity during the quarter. On a consolidated basis, turnover stood at INR 4,321 crore, which is higher by 10.55% year-on-year, Q1 FY26 to Q1 FY27, demonstrating sustained project delivery and solid core execution strength. Profitability also improved on a year-on-year basis.

Speaker #3: Steady execution leading to revenue recognition and our disciplined margin focus selectively bidding strategy. This strong and well-balanced order book positioned the company confidently for sustained growth in the coming years.

Speaker #3: The company also demonstrated consistent execution pace in Q1 for the financial year 2027, achieving healthy year-on-year revenue expansion, with standalone turnover at ₹4,300 crore, higher by 9.62% year-on-year.

Speaker #3: Reflecting steady execution momentum and improved project activity during the quarter. On a consolidated basis, turnover stood at ₹4,321 crore, which is higher by 10.55% year-on-year, Q1 FY26 to Q1 FY27.

Speaker #3: Demonstrating sustained project delivery and solid core execution strength. Profitability also improved on a year-on-year basis. Standalone EBITDA stood at ₹171 crore, as compared to ₹81 crore in Q1 FY26, which is higher by almost 110% on a year-to-year basis.

V. Mohammed: Standalone EBITDA stood at INR 171 crore as compared to INR 81 crore in Q1 FY26, which is higher by almost 110% on a year-on-year basis. While EBITDA margin also improved to 3.99% from 2.08% in Q1 FY26. As a result, PAT stood at INR 155 crore, which is higher by 21.72% on a year-on-year basis. Our standalone earning per share for the quarter stood at INR 0.75, higher by 22.95% year-on-year. Consolidated performance followed a similar trend. Consolidated EBITDA stood at INR 190 crore as compared to INR 64.91 crore in Q1 2026. Consolidated EBITDA margin stood at 4.41% as compared to 1.66% in Q1 FY26. While PAT stood at INR 159.52 crore, higher by 18.73% year-on-year. Overall, the quarterly results highlight robust execution and good revenue visibility for the company.

Shri Saleem Ahmad: Standalone EBITDA stood at INR 171 crore as compared to INR 81 crore in Q1 FY26, which is higher by almost 110% on a year-on-year basis. While EBITDA margin also improved to 3.99% from 2.08% in Q1 FY26. As a result, PAT stood at INR 155 crore, which is higher by 21.72% on a year-on-year basis. Our standalone earning per share for the quarter stood at INR 0.75, higher by 22.95% year-on-year. Consolidated performance followed a similar trend. Consolidated EBITDA stood at INR 190 crore as compared to INR 64.91 crore in Q1 2026. Consolidated EBITDA margin stood at 4.41% as compared to 1.66% in Q1 FY26. While PAT stood at INR 159.52 crore, higher by 18.73% year-on-year. Overall, the quarterly results highlight robust execution and good revenue visibility for the company.

Speaker #3: While EBITDA margin also improved to 3.99% from 2.08% in Q1 of financial year '26. As a result, PAC stood at ₹155 crores, which is higher by 21.72% on a year-to-year basis.

Speaker #3: Our standalone earnings per share for the quarter stood at ₹0.75, higher by 22.95% year-on-year. Consolidated performance followed a similar trend. Consolidated EBITDA stood at ₹190 crore, as compared to ₹64.91 crore in Q1 FY26.

Speaker #3: Consolidated EBITDA margin stood at 4.41%, as compared to 1.66% in Q1 of financial year '26, while PAT stood at ₹159.52 crore, higher by 18.73% year-on-year.

Speaker #3: Overall, the quarterly results highlight robust execution and good revenue visibility for the company. Margins, while showing improvement over Q1 FY27, remain an important area of focus that we will keep tracking closely moving forward.

V. Mohammed: Margins, while showing improvement over Q1 FY27, remain an important area of focus that we will keep tracking closely moving forward. The bidding works have also contributed 31.51% to the total revenue from operation, showing an increase of 16.63% from the previous years. Now I would like to highlight about some important projects carried out by RVNL. BharatNet project was awarded by Bharat Sanchar Nigam Limited, is a INR 13,000 crore initiative to provide high-speed broadband connectivity in rural and remote areas through 82,000 kilometer of OFC infrastructure under the DBOT model. Rail Vikas Nigam Limited has made significant progress in project execution, with work now progressing at a good pace across various locations, and we are expecting good revenue and profit margins in this year.

Shri Saleem Ahmad: Margins, while showing improvement over Q1 FY27, remain an important area of focus that we will keep tracking closely moving forward. The bidding works have also contributed 31.51% to the total revenue from operation, showing an increase of 16.63% from the previous years. Now I would like to highlight about some important projects carried out by RVNL. BharatNet project was awarded by Bharat Sanchar Nigam Limited, is a INR 13,000 crore initiative to provide high-speed broadband connectivity in rural and remote areas through 82,000 kilometer of OFC infrastructure under the DBOT model. Rail Vikas Nigam Limited has made significant progress in project execution, with work now progressing at a good pace across various locations, and we are expecting good revenue and profit margins in this year.

Speaker #3: The bidding works have also contributed 31.51% to the total revenue from operations, showing an increase of 16.63% from the previous year. Now, I would like to highlight some important projects carried out by RVNL.

Speaker #3: The BharatNet project was awarded by Bharat Sanchar Nigam Limited, with a ₹13,000 crore initiative to provide high-speed broadband connectivity in rural and remote areas. Through 82,000 km of OFC infrastructure under the DB1 model, Rail Vikas Nigam Limited has made significant progress in project execution, with work now progressing at a good pace across various locations, and we are expecting good revenue and profit margins this year.

Speaker #3: The Vande Bharat sleeper trainset is also a flagship program of the railways, involving a ₹1,440 crore project with a 35-year maintenance arrangement. This is being executed by Kinnara Railway Solution Limited, an SPV of RVNL.

V. Mohammed: Vande Bharat Sleeper train set is also a flagship program of railways, where INR 1,444 crore project with 35 years maintenance arrangement is being executed by Kinet Railway Solutions Limited, our SPV of RVNL. The project is progressing at a steady pace. First prototype train set is targeted for launch in December 2026. SPV has also received the Bronze A' Design Award 2026 recently for excellence in mobility and transportation design. Rishikesh-Karnaprayag rail project is also project of national importance in Uttarakhand. Being developed at a cost of INR 37,000 crore, the 125-kilometer project has achieved 78% overall progress, with around 97% tunnel excavation completed. Target for completion by December 2029, the project will improve access to the Himalayan region, support the Char Dham pilgrimage corridor, strengthen border connectivity, boost tourism and local economy, and significantly reduce travel time in the region.

Shri Saleem Ahmad: Vande Bharat Sleeper train set is also a flagship program of railways, where INR 1,444 crore project with 35 years maintenance arrangement is being executed by Kinet Railway Solutions Limited, our SPV of RVNL. The project is progressing at a steady pace. First prototype train set is targeted for launch in December 2026. SPV has also received the Bronze A' Design Award 2026 recently for excellence in mobility and transportation design. Rishikesh-Karnaprayag rail project is also project of national importance in Uttarakhand. Being developed at a cost of INR 37,000 crore, the 125-kilometer project has achieved 78% overall progress, with around 97% tunnel excavation completed. Target for completion by December 2029, the project will improve access to the Himalayan region, support the Char Dham pilgrimage corridor, strengthen border connectivity, boost tourism and local economy, and significantly reduce travel time in the region.

Speaker #3: The project is progressing at a steady pace. The first prototype trainset is targeted for launch in December 2026. SPV has also received the Bronze A' Design Award 2026, Retail for Excellence in Mobility and Transportation Design.

Speaker #3: The Vishikesh-Kanprayag Rail Project is also a project of national importance in Uttarakhand, being developed at a cost of ₹37,000 crore. The 125 km project has achieved 78% overall progress, with around 97% tunnel excavation completed.

Speaker #3: Targeted for completion by December 2029, the project will improve access to the Himalayan region, support the Chardham pilgrimage corridor, strengthen border connectivity, boost tourism, and the local economy.

Speaker #3: And significantly reduce travel time in the region. The performance of our JVs and subsidiaries remained encouraging during the first quarter, with subsidiaries contributing ₹126 crore to the consolidated revenue and ₹12.70 crore to profit after tax.

V. Mohammed: Performance of our JVs and subsidiaries remained encouraging during Q1, with subsidiaries contributing INR 126 crore to the consolidated revenue and INR 12.70 crore to profit after tax. While the company's share of profit from joint ventures and associates stood at INR 6.16 crore. Additionally, dividend income received from JVs and subsidiaries stood at INR 12.07 crore during Q1, which contributed positively to the company's consolidated profitability. During the quarter, employee productivity also showed improvement, with revenue from operations per employee increasing from INR 4.929 crore to INR 4.97 crore on a quarter-on-quarter basis. This growth reflects enhanced operational efficiency and better utilization of human resources. In conclusion, RVNL remains fully committed to disciplined execution and steady operational performance, backed by a strong and diversified order book.

Shri Saleem Ahmad: Performance of our JVs and subsidiaries remained encouraging during Q1, with subsidiaries contributing INR 126 crore to the consolidated revenue and INR 12.70 crore to profit after tax. While the company's share of profit from joint ventures and associates stood at INR 6.16 crore. Additionally, dividend income received from JVs and subsidiaries stood at INR 12.07 crore during Q1, which contributed positively to the company's consolidated profitability. During the quarter, employee productivity also showed improvement, with revenue from operations per employee increasing from INR 4.929 crore to INR 4.97 crore on a quarter-on-quarter basis. This growth reflects enhanced operational efficiency and better utilization of human resources. In conclusion, RVNL remains fully committed to disciplined execution and steady operational performance, backed by a strong and diversified order book.

Speaker #3: While the company's share of profit from joint ventures and associates stood at ₹6.16 crore, additionally, dividend income received from JVs and subsidiaries stood at ₹12.07 crore during Q1.

Speaker #3: This contributed positively to the company's consolidated profitability. During the quarter, employee productivity also showed improvement, with revenue from operations per employee increasing from ₹4.929 crore to ₹4.97 crore on a quarter-on-quarter basis.

Speaker #3: This growth reflects enhanced operational efficiency and better utilization of human resources. In conclusion, RVNL remains fully committed to disciplined execution and steady operational performance, backed by a strong and diversified order book. As conditions improve over the coming months, our priority will be to pick up execution speeds, maintain margin discipline, and convert our healthy pipeline of L1 positions and LOAs into active projects.

V. Mohammed: As weather condition improves over the coming months, our priority will be to pick up execution speed, maintain margin discipline, and convert our healthy pipeline of L1 positions and LOAs into active projects. We also continue to explore fresh opportunities in broader infrastructure segments and international markets. With long-term national infrastructure growth on our side, RVNL is well-placed to deliver sustainable value in the quarters ahead. On behalf of the management team, I thank you all for your continued trust, guidance, and support. Thank you.

Shri Saleem Ahmad: As weather condition improves over the coming months, our priority will be to pick up execution speed, maintain margin discipline, and convert our healthy pipeline of L1 positions and LOAs into active projects. We also continue to explore fresh opportunities in broader infrastructure segments and international markets. With long-term national infrastructure growth on our side, RVNL is well-placed to deliver sustainable value in the quarters ahead. On behalf of the management team, I thank you all for your continued trust, guidance, and support. Thank you.

Speaker #3: We also continue to explore fresh opportunities in broader infrastructure segments and international markets. With long-term national infrastructure growth on our side, RVNL is well-placed to deliver sustainable value in the quarters ahead.

Speaker #3: On behalf of the management team, I thank you all for your continued trust, guidance, and support. Thank you.

Speaker #1: Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you have a question, please press star and 1 on your telephone keypad and wait for your turn to ask a question.

Moderator: Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and 1 on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and 1 again. First question comes from the line of Mr. Vishal Periwal from PL Capital. Please go ahead.

Operator: Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and 1 on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and 1 again. First question comes from the line of Mr. Vishal Periwal from PL Capital. Please go ahead.

Speaker #1: If you would like to withdraw your request, you may do so by pressing star and 1 again. The first question comes from the line of Mr. Vishal Perival from PL Capital.

Speaker #1: Please go ahead.

Speaker #2: Yes, sir. Thank you for the opportunity, and congratulations on a good set of results. Also, your initial commentary was quite detailed and provided a lot of perspective in terms of what RVNL is doing.

Vishal Periwal: Yes, sir. Thanks for the opportunity, and congratulations on the good set of results, and also your initial commentary was quite detailed, and it provided a lot of perspective in terms of what RVNL is doing. Just to continue, sir, with what you have shared with everyone. What could be the L1 size of orders that we have with us right now?

Speaker #2: So, and just to continue, sir, with what you have shared with everyone—so what could be the L1 size of orders that we have with us right now?

Speaker #3: Thank you, Vishal.

V. Mohammed: Thank you, Vishal.

Shri Saleem Ahmad: Thank you, Vishal.

Speaker #2: Yes.

Vishal Periwal: Yes.

V. Mohammed: Our target for business development or increasing the order book is almost INR 20,000 crore to INR 25,000 crore for a year, for this year. Out of which, already INR 5,500 crore works have been entrusted to us. We are trying in all the sectors. Right now, we are focusing heavily on core sector, hydros, and highways. These are the three sectors plus clean energy also. These are the four sectors we are focusing and expecting good orders in coming quarters. Thank you.

Shri Saleem Ahmad: Our target for business development or increasing the order book is almost INR 20,000 crore to INR 25,000 crore for a year, for this year. Out of which, already INR 5,500 crore works have been entrusted to us. We are trying in all the sectors. Right now, we are focusing heavily on core sector, hydros, and highways. These are the three sectors plus clean energy also. These are the four sectors we are focusing and expecting good orders in coming quarters. Thank you.

Speaker #3: Our target for business development or increasing the order book is almost 20,000 to 25,000 crores. For a year. For this year, out of which already 5,500 crores was have been interested to us, and, you know, we are trying in all the sectors.

Speaker #3: Right now, we are focusing heavily on the port sector, hydros, and highways. So, these are the three sectors, and, plus, green energy also. These are the four sectors where we are focusing, and expecting good orders in the coming quarter.

Speaker #3: Thank you.

Speaker #2: Okay, sir. Okay. And sir, I think there have been a bit of market concern because inflation has been there, and so, in our order book of this ₹90,000 crore plus, what could be a fixed price contract that we are executing?

Vishal Periwal: Okay, sir. Sir, I think there has been a bit of market concern around, because inflation has been there. In our order book of this INR 90,000 odd crore plus, what could be a fixed price contract that we are executing? Maybe share of it.

Speaker #2: Maybe share of it?

Speaker #3: It is almost 40%—42% to be precise. This is for the railway work, which has been awarded on a management fee basis, and we are also trying with other state governments and PSUs.

V. Mohammed: It is almost 40%. 42%, to be precise, is the railway work, which has been awarded on a management fee basis. We are also trying with other state government and PSUs to get the work on nomination basis for a PMC fee. We have already got almost INR 8,500 crore worth from a PSU called National Mineral Development Corporation. Our discussions are going on with other PSUs also. We are hopeful that we are getting works on a fixed margin also. Parallelly, our bidding works, where our margins are slightly lower, are also going on. Our focus is that we get works on good margin. By increasing or by optimization of our operational efficiency, we expect that our margins will also improve in the bidding works.

Shri Saleem Ahmad: It is almost 40%. 42%, to be precise, is the railway work, which has been awarded on a management fee basis. We are also trying with other state government and PSUs to get the work on nomination basis for a PMC fee. We have already got almost INR 8,500 crore worth from a PSU called National Mineral Development Corporation. Our discussions are going on with other PSUs also. We are hopeful that we are getting works on a fixed margin also. Parallelly, our bidding works, where our margins are slightly lower, are also going on. Our focus is that we get works on good margin. By increasing or by optimization of our operational efficiency, we expect that our margins will also improve in the bidding works.

Speaker #3: We are getting work on a nomination basis for a PMC fee. We have already received almost ₹6,500 crore worth of work from a PSU called NMDC, and discussions are ongoing with other PSUs as well.

Speaker #3: So, we are hopeful that we are getting works on a fixed margin also. Parallelly, our bidding works, where our margins are slightly lower, are also going on. But our focus is that we get works on good margin.

Speaker #3: And by increasing or by optimization of our operational efficiency, we expect that our margins will also improve in the bidding works. Thank you.

Vishal Periwal: Okay, thank you. Any impact from inflation are we seeing for our orders that we have, particularly, say, for BharatNet?

Speaker #2: And are we seeing any impact from inflation on our orders, particularly, say, for BharatNet?

Speaker #3: Generally, Vishal, all the contracts are covered by size variation, which generally covers size inflation. So, I think it does not have a very big impact, though some impact is always there.

V. Mohammed: Vishal, generally, all the contracts are covered by price variation, which generally covers the price inflation. I think it does not have a very big impact, though some impact is always there.

Shri Saleem Ahmad: Vishal, generally, all the contracts are covered by price variation, which generally covers the price inflation. I think it does not have a very big impact, though some impact is always there.

Vishal Periwal: Okay. Sir, in the BharatNet particularly, I think you did mention INR 13,000 crore worth of order that we have. In this, how has been the experience, what we have executed, any color that can be shared, and around, I think it's a fixed price contract, right, sir?

Speaker #2: Okay. You said in the BharatNet, particularly, I think you did mention a ₹30,000 to ₹13,000 crore worth of order that we have. In this, how has the experience been?

Speaker #2: What have you executed? Any colour that can be shared? And around—I mean, I think it's a fixed price contract, right, sir?

V. Mohammed: Vishal, initially we really faced few challenges.

Shri Saleem Ahmad: Vishal, initially we really faced few challenges.

Speaker #3: Vishal, initially, we really faced a few challenges.

Speaker #2: Okay. Hello?

Vishal Periwal: Okay. Hello? Your voice is not audible, sir.

Speaker #3: Hello?

Speaker #2: Hey, why is this not audible, sir?

Speaker #3: Can you hear now?

V. Mohammed: Can you hear now?

Shri Saleem Ahmad: Can you hear now?

Speaker #2: Yes, sir, you are audible now.

Vishal Periwal: Yes, sir, you are audible now.

V. Mohammed: Yes. Again, should I repeat?

Shri Saleem Ahmad: Yes. Again, should I repeat?

Speaker #3: Yes. Again, like, should I repeat?

Speaker #2: Yes, sir. Sorry, sir. I missed that, sir.

Vishal Periwal: Yes, sir. Sorry, sir, I missed some things.

Speaker #3: Yes, for BharatNet, initially there were some challenges. We faced some problems in execution also. But now the situation is quite better. It has improved.

V. Mohammed: Yeah. For BharatNet, initially there were some challenges. We faced some problem in execution also. But now the situation is quite better. It has improved. Work is going on in full swing in UP West and UP East also. Payment issues are being deliberated with BSNL and are being resolved. Some payments have been received by us, and other payments are in pipeline. So we are hopeful that this year, in the remaining quarter, we will get good revenue from this work also.

Shri Saleem Ahmad: Yeah. For BharatNet, initially there were some challenges. We faced some problem in execution also. But now the situation is quite better. It has improved. Work is going on in full swing in UP West and UP East also. Payment issues are being deliberated with BSNL and are being resolved. Some payments have been received by us, and other payments are in pipeline. So we are hopeful that this year, in the remaining quarter, we will get good revenue from this work also.

Speaker #3: Work is going on in full swing in UP West and UP East also. Payment issues are being deliberated with BSNL and are being resolved.

Speaker #3: Some payments have been received by us, and other payments are in the pipeline. So, we are hopeful that in the remaining quarter this year, we'll get good revenue from this work also.

Speaker #3: Thank you.

Vishal Periwal: Thank you. Sure, sir. I will come back in the queue. Thank you very much, sir.

Speaker #2: Okay. Okay. Sure, sir. Sure, sir. I'll come back in the queue, and thank you very much, sir. Thank you.

Moderator: Thank you. We have the next question from the line of Ashutosh from Centrum Broking. Please go ahead.

Operator: Thank you. We have the next question from the line of Ashutosh from Centrum Broking. Please go ahead.

Speaker #1: Yeah, the next question is from the line of Ashutosh from Centrum Broking. Please go ahead.

Speaker #2: Yeah, thank you for the opportunity. So, what percentage of our current order book is already mobilized and under active execution, versus projects awaiting approvals, land availability, or financial closure?

[Analyst] (Centrum Broking): Thank you for the opportunity. So what percentage of our current order book is already mobilized and under active execution versus projects awaiting approvals, land availability, or financial closure?

Ashutosh Kumar: Thank you for the opportunity. So what percentage of our current order book is already mobilized and under active execution versus projects awaiting approvals, land availability, or financial closure?

Speaker #3: Sir, why is it not very clear?

V. Mohammed: Sir, voice is not very clear.

Shri Saleem Ahmad: Sir, voice is not very clear.

Speaker #2: What percentage of our current order book is already mobilized and under active execution, versus projects awaiting approvals, land availability, or financial closure?

[Analyst] (Centrum Broking): What percentage of our current order book is already mobilized and under active execution versus projects awaiting approvals, land availability, or financial closure?

Ashutosh Kumar: What percentage of our current order book is already mobilized and under active execution versus projects awaiting approvals, land availability, or financial closure?

Speaker #3: It is under approvals, under execution. No, our total remaining order book is ₹93,000 crore, and works which are in progress are about almost ₹40,000 crore.

V. Mohammed: Under approval. Under execution. Our total order book which is remaining is ₹93,000 crore, and works which are in progress is about almost ₹40,000 crore.

Shri Saleem Ahmad: Under approval. Under execution. Our total order book which is remaining is ₹93,000 crore, and works which are in progress is about almost ₹40,000 crore.

Speaker #2: Okay. And can you also provide details on how much effect we have incurred till now, our revenue recovery recognition, and the expected completion timeline for BharatNet, Vande Bharat sleeper train, and others?

[Analyst] (Centrum Broking): Okay. Can you also provide details on how much CapEx we have incurred till now, our revenue recognition, and expected completion timeline for BharatNet, Vande Bharat sleeper train, and others?

Ashutosh Kumar: Okay. Can you also provide details on how much CapEx we have incurred till now, our revenue recognition, and expected completion timeline for BharatNet, Vande Bharat sleeper train, and others?

Speaker #3: Sir, the BharatNet project is in two parts. First is the implementation of the infrastructure at the site. The timeline is three years. There are certain issues at the ground level which are being sorted out, and this duct and fiber is being provided.

[Company Representative] (Rail Vikas Nigam): BharatNet project is in two parts. First is the implementation of the infrastructure at site. The timeline is 3 years. There are certain issues at the ground end which are being sorted out, and this duct and fiber is being provided. This will take another 6 to 8 months, it will be extended. The second part is for maintenance for the next 10 years. Whatever is being implemented there and handed over, that is automatically going to the maintenance period. As far as the cost is concerned, most of the items which are being used, hardware, the cost was finalized and the tender order issued before this crisis. We are getting the material at the previous costing at present also.

Speaker #3: So, this will take another six to eight months. It will be extended. The second part is for maintenance for the next 10 years. So, whatever is being implemented there and handed over, that is automatically going into the maintenance period.

Speaker #3: As far as the cost is concerned, most of the items which are being used—hardware—that was, already the cost was finalized and the tender orders issued before this crisis, and so we are getting the material at the previous costing.

Speaker #3: At present also.

Speaker #2: Okay. Okay. Thank you, sir.

[Analyst] (Centrum Broking): Okay. Thank you, sir.

Ashutosh Kumar: Okay. Thank you, sir.

Speaker #3: Sir, Ashutosh, you asked about the Vande Bharat. Vande Bharat, you also have components—one is the delivery of the 120 sets of the Vande Bharat set, which is likely to start from December of this year. The first prototype is likely to roll out in this December, and thereafter in five years, the complete 120 sets are to be delivered.

V. Mohammed: Sir, Ashutosh, you asked about the Vande Bharat.

Shri Saleem Ahmad: Sir, Ashutosh, you asked about the Vande Bharat.

[Analyst] (Centrum Broking): Yes

Ashutosh Kumar: Yes

V. Mohammed: The Vande Bharat is also having components. One is the delivery of the 120 sets of the Vande Bharat set, which is likely to start from December of this year. The first prototype likely to roll out in this December, and thereafter in 5 years, the complete 120 sets are to be delivered. Thereafter, the contract with the Indian Railways involves maintenance of these supplied rolling stocks for 35 years in different parts of the country. It is a very long-term contract, and which we think is likely to give good revenue to RVNL and with positive margins. Thank you.

Shri Saleem Ahmad: The Vande Bharat is also having components. One is the delivery of the 120 sets of the Vande Bharat set, which is likely to start from December of this year. The first prototype likely to roll out in this December, and thereafter in 5 years, the complete 120 sets are to be delivered. Thereafter, the contract with the Indian Railways involves maintenance of these supplied rolling stocks for 35 years in different parts of the country. It is a very long-term contract, and which we think is likely to give good revenue to RVNL and with positive margins. Thank you.

Speaker #3: Thereafter, the contract with Indian Railways involves maintenance of these supplied rolling stocks for 35 years in different parts of the country. So, it is a very long-term contract, which we think is likely to give good revenue to Arjuna with positive margins.

Speaker #3: Thank you.

Speaker #2: Okay, sir. Sir, and you have given a guidance of 15, 20 percent FY27 revenue growth. So, do you maintain this guidance after Q1? And what gives you confidence in achieving it?

[Analyst] (Centrum Broking): Okay, sir. Sir, you have given a guidance of 15% to 20% FY27 revenue growth. Do you maintain this guidance as per Q1, and what gives you confidence in achieving it?

Ashutosh Kumar: Okay, sir. Sir, you have given a guidance of 15% to 20% FY27 revenue growth. Do you maintain this guidance as per Q1, and what gives you confidence in achieving it?

V. Mohammed: Yes, definitely. I said in my opening speech also, we are looking for a growth 15% in our top line and 15% to 20% in the bottom line. In Q1, we have achieved 19% year-to-year growth for our bottom line. So we are very much hopeful that in coming quarters, we will be able to maintain this momentum. Thank you.

Shri Saleem Ahmad: Yes, definitely. I said in my opening speech also, we are looking for a growth 15% in our top line and 15% to 20% in the bottom line. In Q1, we have achieved 19% year-to-year growth for our bottom line. So we are very much hopeful that in coming quarters, we will be able to maintain this momentum. Thank you.

Speaker #3: Yes, yes, definitely. As I mentioned in my opening speech, we are targeting close to 15% growth in our top line, and 15% to 20% growth in the bottom line.

Speaker #3: In quarter one, we have achieved 19% year-on-year growth with our bottom line. So, we are very much hopeful that in the coming quarters, we will be able to maintain this momentum.

Speaker #3: Thank you.

Speaker #2: Thank you, sir.

[Analyst] (Centrum Broking): Thank you, sir.

Ashutosh Kumar: Thank you, sir.

Speaker #1: Thank you. Yeah, the next question is from the line of Priyank Shah from INSEC. Please go ahead.

Moderator: Thank you. The next question from the line of Priyank Shah from InCred. Please go ahead.

Operator: Thank you. The next question from the line of Priyank Shah from InCred. Please go ahead.

Speaker #2: Sir, thank you for the opportunity. In your opening remarks, you highlighted that you are also exploring international markets. Could you elaborate on that front with regards to the overall strategy, and what are the key markets or geographies you are currently targeting?

Priyank Shah: Thank you for the opportunity, sir. Sir, in your opening remarks, you highlighted that you are also exploring the international markets. Could you elaborate on that front with regards to the overall strategy, and what are the key markets or geographies you are currently targeting? If you can also help us with the opportunity size when it comes to the overall international business.

Speaker #2: And if you can also help us with the opportunity size when it comes to the overall international.

Speaker #3: Good afternoon, Priyank. Arjuna is focused in many parts of the world, and our primary focus is in Central Asia, the Middle East, and Eastern European countries.

V. Mohammed: Good afternoon, Priyank. RVNL is focused in many parts of the world, and our primary focus is in Central Asia, Middle East, and Eastern European countries, and Southeast Asia also. We are already in process of bidding in Africa also. We are in process of bidding in all these areas, and we have submitted bids in parts of Africa for power transmission line, for railway projects, road projects. We have submitted bids in Nepal also for hydropower projects. We are in touch for submitting the bids. We have already submitted the expression of interest for acquiring metro projects in Israel, Tel Aviv Metro. In Eastern European countries also, a lot of opportunities are coming in, where in form of roads and railways, where a lot of reconstruction work for railway sector is going on. So we have identified some bids in Georgia and Serbia.

Shri Saleem Ahmad: Good afternoon, Priyank. RVNL is focused in many parts of the world, and our primary focus is in Central Asia, Middle East, and Eastern European countries, and Southeast Asia also. We are already in process of bidding in Africa also. We are in process of bidding in all these areas, and we have submitted bids in parts of Africa for power transmission line, for railway projects, road projects. We have submitted bids in Nepal also for hydropower projects. We are in touch for submitting the bids. We have already submitted the expression of interest for acquiring metro projects in Israel, Tel Aviv Metro. In Eastern European countries also, a lot of opportunities are coming in, where in form of roads and railways, where a lot of reconstruction work for railway sector is going on. So we have identified some bids in Georgia and Serbia.

Speaker #3: And Southeast Asia also. We are already in the process of building in Africa also. And we are in the process of getting into all these areas, and we have submitted bids in parts of Africa for power transmission lines, for railway projects, road projects. We have submitted bids in Nepal also, for hydropower projects.

Speaker #3: We are in touch or submitting the bids. We have already submitted the expression of interest for upcoming metro projects in Israel, Tel Aviv Metro, and in Eastern European countries also. A lot of opportunities are coming in, in the form of roads and highway railways, where a lot of reconstruction work for the railway sector is going on.

Speaker #3: So, we have identified some bids in Georgia and Serbia. Our focus is basically on railways, metros, highways, and power transmission in these areas.

V. Mohammed: Our focus is basically in railways, metro, highways, and power transmission in these areas. Thank you.

Shri Saleem Ahmad: Our focus is basically in railways, metro, highways, and power transmission in these areas. Thank you.

Speaker #2: Thank you. All right. Thank you, sir. That's all from my side.

Priyank Shah: All right. Thank you, sir. This was all my side.

Moderator: Thank you. Ladies and gentlemen, if you have a question, please press star and 1 on your telephone keypad. Next question comes from the line of Sunil Bhatt from Choice Broking. Please go ahead.

Operator: Thank you. Ladies and gentlemen, if you have a question, please press star and 1 on your telephone keypad. Next question comes from the line of Sunil Bhatt from Choice Broking. Please go ahead.

Speaker #1: Thank you. Ladies and gentlemen, if you have a question, please press star one on your telephone keypad. The next question comes from the line of Sunil Bhat from Choice Limited.

Speaker #1: Please go ahead.

Speaker #2: Sir, the contribution of bidding projects has been increasing steadily, and now forms a meaningful share of revenue. So, could you share the revenue mix between nomination projects and competition bidding projects for Q1 FY27, and how do you expect this mix to evolve over the next two to three years?

Sunil Bhatt: The contribution of bidding projects has been increasing steadily and now forms a meaningful share of revenue. Could you share the revenue mix between nomination projects and competition bidding projects for Q1 FY27, and how do you expect this mix to evolve over the next 2 to 3 years?

V. Mohammed: Our order book is mixed. 40% of our order book is from the railway management works, which have been assigned to us. 20% of the railway work we have taken from bidding, and others are from either PMC work from other PSU or bidding works in other sectors. If you see our Q1 results, almost 60% of the revenue top line is from the management work. It is almost 63% is from management work, and remaining is from the bidding of PMC.

Shri Saleem Ahmad: Our order book is mixed. 40% of our order book is from the railway management works, which have been assigned to us. 20% of the railway work we have taken from bidding, and others are from either PMC work from other PSU or bidding works in other sectors. If you see our Q1 results, almost 60% of the revenue top line is from the management work. It is almost 63% is from management work, and remaining is from the bidding of PMC.

Speaker #3: You know, our order book is mixed. Forty percent of our order book is from the railway management works, which have been assigned to us.

Speaker #3: Twenty percent of the railway work we have taken is from bidding, and the rest is either CMC work from other TSUs or bidding works in other sectors.

Speaker #3: If you see our quarter one results, almost 60 percent of the revenue, top line, is from the management work, which is almost 63 percent.

Speaker #3: It's from bidding works, from management, and the remaining is from the bidding of PMC.

Speaker #2: Okay, sir, the next question is on the current order book and the pace of execution we have right now. So, considering this, how do you see RVNL's book-to-bill ratio over the next two to three years, or, I can say, for the short-term to long-term tenure?

Sunil Bhatt: Okay. Sir, the next question on the current order book and the pace of execution we have right now. Considering this, how do you see RVNL's book-to-bill ratio for next 2 to 3 years, or I can say for short term to long term tenure?

Speaker #3: We are hoping that in the next three years, our order book will be equally divided—50-50 percent—between railway management works and bidding works. So, that is how the order book will evolve in the next three years.

V. Mohammed: We are hoping that in next 3 years, our order book will be equally divided 50/50% between railway management works and bidding works. That is how the order book will evolve in next 3 years. As you have been briefed, we are focusing more on the overseas works, and as already explained, we are bidding for works in Georgia, we are bidding for works in Africa, we have bid for Israel Metro. We are expecting good order from these overseas works. That will increase the non-railway portion. Railway works are already with us, almost INR 40,000 crores of work have to be executed by us in next 3 years. Those works will always go parallelly, and we are hoping that in our top line, soon it will be 50/50% for next 2 to 3 years.

Shri Saleem Ahmad: We are hoping that in next 3 years, our order book will be equally divided 50/50% between railway management works and bidding works. That is how the order book will evolve in next 3 years. As you have been briefed, we are focusing more on the overseas works, and as already explained, we are bidding for works in Georgia, we are bidding for works in Africa, we have bid for Israel Metro. We are expecting good order from these overseas works. That will increase the non-railway portion. Railway works are already with us, almost INR 40,000 crores of work have to be executed by us in next 3 years. Those works will always go parallelly, and we are hoping that in our top line, soon it will be 50/50% for next 2 to 3 years.

Speaker #3: As you have been briefed, you know, we are focusing more on overseas works. As already explained, we are bidding for works in Georgia, we are bidding for works in Africa, and we have bid for the Israel Metro.

Speaker #3: So, we are expecting good orders from bids for overseas works. That will increase the non-railway portion. Railway works are already with us—almost ₹40,000 crore of work has to be executed by us in the next three years.

Speaker #3: So, those works will always go on in parallel. We are hoping that in our top line, soon it will be 50-50 percent for the next two to three years.

Speaker #2: Okay. Well noted, sir. And sir, as the business shifts towards competitive bidding, I just want to know: what is management thinking about the overall profitability, ROE, and ROC going forward?

Sunil Bhatt: Well noted, sir. Sir, as the business shifts towards the competitive bidding, just want to know what's the management thinking about the overall profitability, ROE, ROC going forward? You can highlight something on, or you can throw some lights on margins, which we are expecting going forward.

Speaker #2: Or you can highlight something, or you can throw some light on the margins that we are expecting going forward.

V. Mohammed: For the last 2 quarters, we are focusing on the works which give us better margins, and those margins are more than 5% to 6% for the bidding works. For management, you know it is from 8% to 10%. For PMC work, which we have got from PSU is almost 7%, and we are trying with other state government and PSUs to get the same PMC margins, fixed margins. For bidding, I will again repeat that our margins will vary from 5% to 6% for the works in India. But for the overseas, we are expecting margin of 15% to 20%, which we are trying in Georgia, in Africa, in other countries. Thank you.

Shri Saleem Ahmad: For the last 2 quarters, we are focusing on the works which give us better margins, and those margins are more than 5% to 6% for the bidding works. For management, you know it is from 8% to 10%. For PMC work, which we have got from PSU is almost 7%, and we are trying with other state government and PSUs to get the same PMC margins, fixed margins. For bidding, I will again repeat that our margins will vary from 5% to 6% for the works in India. But for the overseas, we are expecting margin of 15% to 20%, which we are trying in Georgia, in Africa, in other countries. Thank you.

Speaker #3: In the last two quarters, we have been focusing on the works which give us better margins. And those margins are more than 5 to 6 percent.

Speaker #3: For the bidding works, and for management, you know, it is from 8% to 10%. For PMC work, which we have got from PSQ, it is almost 7%.

Speaker #3: And we are trying with other state governments and PSUs to get the state PMC margins, fixed margins. For bidding, I will again repeat that our margins will vary from 5% to 6% for the works in India.

Speaker #3: But for the overseas, we are expecting margins of 15% to 20%, which we are trying in Georgia, in Africa, and in other countries.

Speaker #2: Thank you. Okay, sir, the last question is to understand the industry. So, which are the major internal and external risks for the company as of now?

Sunil Bhatt: Okay. The last question on to understand the industry. Which are the major internal and external risks for the company as of now, or companies facing which affected our procurement timeline or projects cost or overall project execution or business? Can you throw some light over there?

Speaker #2: Are companies facing issues that have affected our procurement timeline, project cost, overall project execution, or business? Can you shed some light on that?

Speaker #3: Definitely, as you know, the present geopolitical situation is a challenge. That was faced during Q1 also. And if a similar situation persists, this is a big challenge for us.

V. Mohammed: Definitely, as you know, the present geopolitical situation is a challenge that we faced during Q1 also. If the similar situation persists, this is a big challenge for us. Definitely, we are facing some challenge of labor availability from the market. Labor is not available for works, so we have to make extra effort to get the labor for execution of our works. Payment from the client is also a challenge, but we are trying to get the payments from them. Regular follow-up is being done. These are the few challenges which we are facing, but we are hopeful. Even with these challenges, we will be able to achieve the targets which we have fixed for ourselves. Thank you.

Shri Saleem Ahmad: Definitely, as you know, the present geopolitical situation is a challenge that we faced during Q1 also. If the similar situation persists, this is a big challenge for us. Definitely, we are facing some challenge of labor availability from the market. Labor is not available for works, so we have to make extra effort to get the labor for execution of our works. Payment from the client is also a challenge, but we are trying to get the payments from them. Regular follow-up is being done. These are the few challenges which we are facing, but we are hopeful. Even with these challenges, we will be able to achieve the targets which we have fixed for ourselves. Thank you.

Speaker #3: And definitely, we are facing some challenges with labor availability. From the market, you know, labor is not available for works. So, we have to work extra, we have to make extra effort to get the labor for execution of our works.

Speaker #3: Payment from the client is also a challenge. But we are trying to get the payments from them; regular follow-up is being done. So, these are the few challenges which we are facing.

Speaker #3: But we are hopeful, you know, even with these challenges, we will be able to achieve the targets which we have fixed for ourselves. Thank you.

Speaker #2: Okay, sir, that's all from my side. Thank you so much for the opportunity, and all the best.

Sunil Bhatt: Okay, sir. That's all from my side. Thank you so much for the opportunity and all the best.

Speaker #3: Thank you.

V. Mohammed: Thank you.

Shri Saleem Ahmad: Thank you.

Speaker #2: Thank you. We have the next question from the line of Abhishek Rekha from NIST Wealth LLP. Please go ahead.

Moderator: Thank you. We have the next question from line of Abhishek Leeka from Messrs. Wealth LLP.

Operator: Thank you. We have the next question from line of Abhishek Leeka from Messrs. Wealth LLP.

Abhishek Leeka: Hi, sir. Thank you for the opportunity. Congratulations for a stable to good set of numbers. My question is, since you are trying to diversify to Middle East and Israel, and all those basically areas are geopolitically highly active now. How you plan to address the risk part into that?

Speaker #4: Hi, sir. Thank you for the opportunity. Congratulations for a stable to good set of numbers. My question is, since you are trying to diversify into the Middle East and Israel, and all those areas are basically geopolitically highly active now.

Speaker #4: How do you plan to address the risk part in that?

Speaker #3: Good afternoon, Abhishek. As you rightly pointed out, the area of the Middle East, Israel, is a bit volatile at present. But we understand that the situation is likely to stabilize in the coming time.

V. Mohammed: Good afternoon, Abhishek. As you rightly pointed out, the area of Middle East, Israel are a bit volatile at present. But we understand that the situation is likely to stabilize in coming time. These areas, they typically yield very good margins for the projects. As a country, India has a good presence in all these areas, and we stand to get good support from the government side also while executing the projects in those areas. So we will not face much of the issues, but certainly we have to account for some of the challenges there, because when we are taking the still done and still not out of that area, the payments, they have to be given properly. They have to be insured properly. So we will take care of all these things while executing projects on these areas.

Shri Saleem Ahmad: Good afternoon, Abhishek. As you rightly pointed out, the area of Middle East, Israel are a bit volatile at present. But we understand that the situation is likely to stabilize in coming time. These areas, they typically yield very good margins for the projects. As a country, India has a good presence in all these areas, and we stand to get good support from the government side also while executing the projects in those areas. So we will not face much of the issues, but certainly we have to account for some of the challenges there, because when we are taking the still done and still not out of that area, the payments, they have to be given properly. They have to be insured properly. So we will take care of all these things while executing projects on these areas.

Speaker #3: And these areas typically yield very good margins for the projects. And as a country, India has a good presence in all these areas.

Speaker #3: And we stand to get good support from the government side also, while executing the projects in those areas. So, we will not face many issues.

Speaker #3: But certainly, we have to account for some of the challenges there. Because when we are taking the skilled and unskilled manpower to that area, the payments have to be given properly.

Speaker #3: They have to be insured properly. So, we will take care of all these things while executing projects in these areas.

Speaker #4: Okay. And the estimate is done. Mm-hmm.

Abhishek Leeka: Okay.

V. Mohammed: Assessment is done.

Shri Saleem Ahmad: Assessment is done.

Speaker #2: Abhishek, proper risk assessment is done before, you know, quoting. So, these risks have been identified and, accordingly, mitigation measures or premium has been considered.

V. Mohammed: Abhishek, proper risk assessment is done before coding. So these risks, risk premium has been identified and accordingly, mitigation measures or risk premium has been considered.

Shri Saleem Ahmad: Abhishek, proper risk assessment is done before coding. So these risks, risk premium has been identified and accordingly, mitigation measures or risk premium has been considered.

Speaker #4: Okay. Okay. So, that's good to know. And pardon me if that has been addressed earlier. I have been answered earlier. ROE, what kind of vision that we have over the next three years?

Abhishek Leeka: Okay. So that is good to know. And pardon me if that has been addressed earlier or have been answered earlier. What kind of vision that we have over the next three years?

Speaker #3: It's only your turn. Like, we are expecting data of 5 to 7 percent.

V. Mohammed: We are expecting a return of 5% to 7%.

Shri Saleem Ahmad: We are expecting a return of 5% to 7%.

Speaker #4: ROE, like ROE vision for Arvinas as a whole, in the next three years.

Abhishek Leeka: ROE, like ROE vision for RVNL as a whole in next three years.

V. Mohammed: Almost 30% to 30%.

Shri Saleem Ahmad: Almost 30% to 30%.

Speaker #3: That's true—almost 12 to 13 percent.

Speaker #4: Okay. Mm-hmm. Fine. Okay. Yeah. Thank you so much.

Abhishek Leeka: Okay. Mm-hmm. Fine. Okay. Yeah. Thank you so much.

Speaker #3: Thank you.

V. Mohammed: Thank you.

Shri Saleem Ahmad: Thank you.

Speaker #2: Thank you. We have the next question from Prakash Barivala, an individual investor. Please go ahead.

Moderator: Thank you. The next question from the line of Prakhar Sibariwala, an individual investor. Please go ahead.

Operator: Thank you. The next question from the line of Prakhar Sibariwala, an individual investor. Please go ahead.

Speaker #5: Yeah. Hello, sir. So, my first question is regarding the large projects that are underway with Vande Bharat and BharatNet, etc. So, what would be the funding requirement?

Prakhar Sibariwala: Yeah. Hello, sir. My first question is regarding the larger projects that are underway with Vande Bharat and BharatNet, et cetera. What would be the funding requirement and what would be our pipeline? How much would be internal accruals? Would we be looking at debt as well?

Speaker #5: And what would be our pipeline? How much would be internal approvals? Would we be looking at debt as well?

V. Mohammed: Presently, we are not looking for any debt from other sources. We are able to maintain from our internal resources only. We have our working arrangements with some banks for working capital, if required. In next 2, 3 quarters, we are not looking for any assistance on part of debt.

Shri Saleem Ahmad: Presently, we are not looking for any debt from other sources. We are able to maintain from our internal resources only. We have our working arrangements with some banks for working capital, if required. In next 2, 3 quarters, we are not looking for any assistance on part of debt.

Speaker #3: There will be—we are not looking for any debt from other sources. We are able to maintain from our internal resources only. But we have our working arrangement with some banks for working capital, if required.

Speaker #3: So, in the next two to three quarters, we are not looking for any assistance on the part of debt.

Speaker #5: And what would be the rate on these bank lines that we have already secured?

Prakhar Sibariwala: What would be the rate on these bank lines that we have already secured?

V. Mohammed: Around 5.5% to 5.9%.

Shri Saleem Ahmad: Around 5.5% to 5.9%.

Speaker #3: Around 5.5 to 5.9 percent.

Speaker #5: Okay.

Prakhar Sibariwala: Okay.

Speaker #3: So, we have not taken any debt till now. But we have a kind of arrangement with them. If required, most probably it will be required in BharatNet.

V. Mohammed: We have not taken any debt till now, but we have kind of arrangement with them. If required, most probably if it will be required in BharatNet, we may take it, and that will be at 5.5% to 5.9%.

Shri Saleem Ahmad: We have not taken any debt till now, but we have kind of arrangement with them. If required, most probably if it will be required in BharatNet, we may take it, and that will be at 5.5% to 5.9%.

Speaker #3: We may take it, and that will be at 5.5 to 5.9 percent.

Speaker #5: Okay.

Prakhar Sibariwala: Okay.

V. Mohammed: But presently, we are able to manage from our internal cash.

Shri Saleem Ahmad: But presently, we are able to manage from our internal cash.

Speaker #3: But generally, we are able to manage from our internal cash.

Speaker #5: Okay, that's great, sir. And my last question is regarding the dividend policy, sir. Should we expect dividend growth to track the PAT, or could the ratio move going ahead?

Prakhar Sibariwala: Okay. That's great, sir. My last question is regarding the dividend policy, sir. Should we expect dividend growth to track the PAT or could the ratio move going ahead?

Speaker #3: We generally follow different guidelines. Ours is either 30 percent of the PAT or 4 percent of the net worth, whichever is higher. So, we will give that dividend.

V. Mohammed: We generally follow DPE guidelines, which is 30% of the PAT or 4% of the network, whichever is higher. We will give our dividend.

Shri Saleem Ahmad: We generally follow DPE guidelines, which is 30% of the PAT or 4% of the network, whichever is higher. We will give our dividend.

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

Prakhar Sibariwala: Okay. Got it. Thank you so much, sir, for the opportunity and all the best.

Speaker #3: Thank you.

V. Mohammed: Thank you.

Shri Saleem Ahmad: Thank you.

Speaker #2: Thank you, sir. Ladies and gentlemen, if you have a question, please press star one on your telephone keypad. We will now take the next question from the line of Mayur Pedmaker, an individual investor.

Moderator: Thank you, sir. Ladies and gentlemen, if you have a question, please press star and one on your telephone keypad. The next question from the line of Mayur Pednekar, an individual investor. Please go ahead.

Operator: Thank you, sir. Ladies and gentlemen, if you have a question, please press star and one on your telephone keypad. The next question from the line of Mayur Pednekar, an individual investor. Please go ahead.

Speaker #2: Please go ahead.

Speaker #6: Hello. I'm Ravindran.

Mayur Pednekar: Hello. Am I audible?

Speaker #2: Yes, sir. You are audible. Please go ahead with your question.

Moderator: Yes, sir. You are audible. Please go with your question.

Mayur Pednekar: Yes, sir. You are audible. Please go with your question.

Speaker #6: Yeah. Yeah. What am I questioning? On the following recognition of losses on certain contracts, in Q1 '26—so can you confirm whether all the major provisioning has now been completed, or do we have any additional contracts remaining under review?

Mayur Pednekar: My question is on the following recognition of losses on certain contracts in FY26. Can you confirm whether all the major provisioning has now been completed, or do we have any additional contracts in the number maybe?

V. Mohammed: We have already provisioned for the ongoing project, and we are not anticipating any further provision of the loss.

Shri Saleem Ahmad: We have already provisioned for the ongoing project, and we are not anticipating any further provision of the loss.

Speaker #3: So, we have already provisioned for the onward project, and we are not anticipating any further provision.

Speaker #6: Okay, okay. And the second question I have is on receivables from the Ministry of Railways, which have increased marginally during Q1 '26. So, what is the current outstanding amount for the same?

Mayur Pednekar: Okay. The second question I have on receivables from the Ministry of Railways, which has been increased marginally during FY26. What is the current outstanding amount for the same?

V. Mohammed: This is actually railway receivable or outstanding is a dynamic process.

Shri Saleem Ahmad: This is actually railway receivable or outstanding is a dynamic process.

Speaker #3: Around 2,500.

Speaker #6: So, the sale—actually, railway receivables or outstanding—is a dynamic process, you know. And presently, our outstanding with the railways is almost ₹2,500 crore.

V. Mohammed: Presently, our outstanding with railways is almost INR 2,500 crores.

Shri Saleem Ahmad: Presently, our outstanding with railways is almost INR 2,500 crores.

Mayur Pednekar: Okay.

Speaker #6: And we keep on receiving the payment on a monthly basis. You know, we raise our bill to them, and within 30 days, the payment is received.

V. Mohammed: We keep on receiving the payment on a monthly basis. We raise our bill to them, and within 30 days, the payment is received. So that is the normal and dynamic process, and we are making more effort to ensure that our cash flow is maintained and payment is received well on time with railways. So our correspondence and interaction with railways is regular.

Shri Saleem Ahmad: We keep on receiving the payment on a monthly basis. We raise our bill to them, and within 30 days, the payment is received. So that is the normal and dynamic process, and we are making more effort to ensure that our cash flow is maintained and payment is received well on time with railways. So our correspondence and interaction with railways is regular.

Speaker #6: So, what is the normal and dynamic process? And we are making more effort to ensure that our cash flow is maintained and payment is received well on time with Railways.

Speaker #6: So, our correspondence and interaction with Railways is regular.

Speaker #5: Okay, okay. Got it, sir. That's it from my side. Thanks.

Mayur Pednekar: Okay. Got it, sir. That's it from my side. Thank you.

Speaker #2: Thank you. That was the last question for the day. Ladies and gentlemen, this concludes the conference for today. Thank you for your participation and for using our conference call service.

Moderator: Thank you. That was the last question for the day. Ladies and gentlemen, this concludes the conference for today. Thank you for your participation and for using Chorus Call conference call service. You may disconnect your lines now. Thank you, and have a pleasant day.

Operator: Thank you. That was the last question for the day. Ladies and gentlemen, this concludes the conference for today. Thank you for your participation and for using Chorus Call conference call service. You may disconnect your lines now. Thank you, and have a pleasant day.

Speaker #2: You may disconnect your lines now. Thank you, and have a pleasant day.

V. Mohammed: Thank you.

Shri Saleem Ahmad: Thank you.

Speaker #3: Thank you.

Moderator: Thank you, sir.

Operator: Thank you, sir.

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Q1 2027 Rail Vikas Nigam Ltd Earnings Call

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