Financial Performance Q1 FY27

  • Revenue: ₹286 crores, up 74% Year-on-Year
  • EBITDA: ₹28 crores, up 81% Year-on-Year
  • PAT: ₹22.7 crores, up 87% Year-on-Year
  • EBITDA Margin: 10% (vs. 9% in Q1 FY26)
  • Quarter-on-Quarter: Revenue remained flat, EBITDA improved 17%, PAT declined 20% due to one-time tax reversal in Q4 FY26

Order Book Status

  • Total Order Book: ₹5,100 crores
  • Legacy Projects: ₹1,251 crores (expected to be executed in FY27 and FY28)
  • New Quality Orders: ₹3,849 crores with expected operating margins of 10% or higher
  • Q1 FY27 Order Intake: ₹1,293 crores
  • Current L1 Position: ₹212 crores of orders
  • FY27 Guidance: Target to surpass ₹5,000 crores in order intake

BESS (Battery Energy Storage System) Manufacturing Update

  • Manufacturing Facility: Located at Supa MIDC, Pune
  • Phase 1: 2.5 GW assembly line fully ready
  • Certifications: Obtaining IEC/UL certifications for battery packs
  • NTPC Order Status: Advance received, design and drawing approvals expected by Q3 FY27
  • Sample Container Approval: Targeted for December 2026
  • Supply Timeline: Commencement in Q4 FY27, completion within contractual timelines of FY28
  • FY27 BESS Revenue Target: ₹200-300 crores subject to NTPC approvals
  • Capacity Expansion: From 2.5 GW to 5 GW along with container facility expansion to be completed in first half of FY28
  • Annual Manufacturing Capacity: 600 container units
  • Market Potential: 208 GW by 2030 (from 34.72 GW in FY27)
  • Competitive Advantage: Manufacturing facility and exclusive technology partnership with Energy Vault, US

Project Pipeline

  • Tracked Pipeline: 134 projects worth ₹98,725 crores across 11 states
  • Sector Focus: Irrigation and water supply make up over 80% of pipeline value
  • Key Projects: Wainganga-Nalganga river link (₹1 lakh crore), Marathwada Water Grid (₹37,600 crore), Ken-Betwa Links MP component (₹24,300 crore), Tapi Basin Mega Recharge scheme (₹19,200 crore)
  • Additional Tenders: Progressing in Bihar, Odisha, Rajasthan, Gujarat, Kerala, Northeast, and with PSUs like SAIL and NMDC

Financial Position Improvement

  • Promoter Support: ₹400 crores infusion during last 3 years
  • Net Worth: Doubled from ₹500 crores to over ₹1,000 crores
  • Debt-to-Equity Ratio: Improved from 1.1x to 0.4x
  • Legacy Debt: Total outstanding obligation of ₹700 crores, repaid ₹325 crores, balance ₹375 crores backed by arbitration award of ₹678 crores with accumulating interest
  • Arbitration Claims: ₹4,526 crores with nearly 40% expected to convert into awards
  • Credit Rating: ICRA upgraded long-term rating to BBB (Stable), CRISIL assigned BBB (Stable)
  • Banking Facilities: Enhanced from ₹505 crores to ₹860 crores from PSU banks, plus ₹300 crores surety bond line

Working Capital and Liquidity

  • Cash Position: ₹150 crores as of 30th June 2026
  • Working Capital Management: Escrow mechanism in water sector reduces working capital requirement
  • RA Bill Realization: Comfortable with sufficient liquidity through fixed deposits
  • Employee Cost: Increased due to recruitment for water, power and BESS operations
  • Finance Cost: Includes interest on mobilization advance (₹3.54 crores), BG commission (₹63 lakhs), and Ind AS adjustment on ROU assets (₹27 lakhs)

Business Segments Strategy

  • Three Segments: Water (drinking water, irrigation, river linking, sewerage), Power Substation, and BESS
  • BESS Revenue Streams: EPC business for own orders and OEM business supplying to other contractors
  • Execution Timelines: Water projects (3-3.5 years), Power substation (15-18 months), BESS EPC (18 months), BESS OEM (3-4 months)

Risk Management

  • Price Variation Clause: Incorporated in all new contracts to mitigate input cost fluctuations
  • Project Selection Criteria: Only projects with margin above 10%, PV clause, funded projects, and escrow mechanism capability

Guidance and Outlook

  • Revenue Growth: Maintained guidance of more than 25% growth compared to FY26
  • Profitability Growth: Maintained guidance of more than 25% growth compared to FY26
  • BESS Contribution: Expected to become significant revenue driver due to faster execution cycles
  • Capacity Utilization: Expecting sizable growth in BESS capacity utilization in next 2-3 years

Conference Call Participants

Management: Mr. Manoj Digga (Executive Director and CFO), Mr. Malay Chakraborti (EVP Projects), Mr. Samir Patel (Chief of Technology and Operations, BESS), Mr. Arun Agarwal (Vice President, Finance and Accounts)

Moderator: Mr. Rohan Baranwal (Arihant Capital Markets Limited)