Thank you. We will now begin the question-and-answer session. The first question comes from the line of Vaibhav Shah with JM Financial. Please go ahead.

Yes. Sir, firstly on some Big-ticket projects. So, we saw in Northern Ayodhya bypass, the execution fell significantly in Q1 to around INR42-odd crores. Any particular reason for that?

Can you repeat your question, please?

In Northern Ayodhya bypass, the execution has fallen in Q1 to almost INR42 -odd crores. So, any particular reason , any issues we are facing or there's something else? Monsoon or something?

No, no. I mean, it is going proper. There's nothing. Now, from last 1.5 months, there's been rain. Otherwise, progress is steady. We've been achieving all our milestones before ahead, before

time. It's just -- sometimes you don't achieve the milestone, payment can only be made only once the milestone is achieved.

Okay. Sir, what kind of execution are we targeting from VRK 11 and 12 in FY27?

So, we are targeting, we should at least do 20% to 25% of both the projects.

Okay. And same for Southern Ludhiana and Southern Ayodhya?

So, Southern Ayodhya, yes, it is there. But Ludhiana, the land is only 62% available with us, so that is a challenge. Otherwise, it is doable.

So, for Ludhiana, we can do 25%-30% in this year?

No, for Ludhiana, you should take at least 15% this year.

Okay, 15%, due to land issue?

Yes.

Okay. And sir, any update on the Rewa solar project? When do we expect to start? When will PPA be signed?

So, PPA signed, they have to provide us a transmission. So, there were 3 things required for this project. One is PPA, one is land, and one is transmission. So, they have provided the PPA, land is there. Third is the transmission line. I think they have a lready taken out the tenders for transmission line, and we're expecting that to happen soon. Once that is there, we are ready to start. It's an easy project. Why? Because you have to build everything in one location. Number two, for PM -KUSUM, we've already started projects in Maharashtra and Madhya Pradesh, and those projects are progressing very well.

Okay. And sir, lastly on equity requirement, what investments are we assuming in for HAM and solar for FY27 and FY28?

So, I'll give you a little brief. So, at the time of our IPO, the equity we have put was INR253 crores. As on today's date, it's INR692 where we have put INR439 crores more. And this year, our balance equity commitment is INR859 crores, and FY28 is INR744 crores.

So, we will be putting INR859 crores in FY27?

Yes.

Of this, HAM and solar break-up?

Yes

INR310 crores is solar and INR550 crores is highway, HAM.

And for FY28?

2028 is INR300 crores for solar, tentatively, INR296 crores.

Okay. And remainder for HAM.

And INR444 crores for HAM, yes.

Okay. Thank you. Those were my questions.

Pleasure.

The next question comes from the line of Krish Bhatia with Anand Rathi Group. Please go ahead.

Thank you for taking my question, and congrats on a good set of numbers. So, first question is on the highway...

I'm sorry to interrupt, Krish, you are not audible. Could you please use your phone on the handset mode in case if it's on hands-free?

Is it better now?

A little bit.

Is it better now?

Yes, please go ahead.

There is lot of disturbance.

Okay. Is it better now?

Yes, please go ahead.

Highway projects to be awarded in FY27? So, how much do you expect to be awarded within this year and what would be the cost…

Sorry, your voice is not clear. It's surrounding.

The line for the participant has dropped. We move to the next participant, that is Mahesh Patil with ICICI Securities. Please go ahead.

Yes. Hi, sir. So, my first question is on the margins. So, we have posted good margins of more than around 13.5% this quarter against our guidance of around 11% to 12.5% for the full year. So, what led to this improvement, and can we see similar margins in the upc oming quarters or was there any one-off this quarter?

So, basically, we have started 3 new projects in this quarter. 2 are Maharashtra solar projects, MH1 and MH2, and road projects, HAM projects in Indore -Ujjain. So, basically, another 3 projects are about to start for which we have already got an appointed date in the first quarter of the July. This will basically improve the numbers as well going forward in future.

Okay. But we still maintain our guidance at 11% to 12.5%, right?

Hello? Can you can you repeat it once again?

I'm asking, are we still maintaining our guidance at 11% to 12.5%, right?

Yes, yes. We are going to maintain the same.

Okay. And sir, about order inflow, I think we guided for around INR55 billion of order inflow for this year. We have done around INR6 billion, right, in Q1?

So, we have guided our investors for INR6,000 crores. We've already got close to INR600, and rest is achievable in during the year.

Okay, sir. Thank you.

The next question comes from the line of Parth Thakkar with JM Financial. Please go ahead.

Sir, thank you for the opportunity. Sir, I would like to ask when can we expect the ADs for the 2 new HAM projects?

So, our FC date due for Bihar is, I think, next month, and the Punjab project is close to November. So, once I mean, we have already tied up with the banks, and once the FC is done, maximum two or three months after that, we should start the work.

So, by we can expect the AD for both by Q4?

So, yes, fourth quarter we should expect a I mean, Bihar we can expect by third quarter. Otherwise, in fourth quarter, definitely, we'll get the ADs of both the projects.

Sir, what has what is the amount of capex we have done in this quarter, and how much can we expect for the full year?

Close to INR14 crore s we have done the capex in this quarter. That was primarily a launcher which have been purchased in Danapur. So, from the IPO proceeds, we have already paid for more than INR100 crore s worth of machinery. So, as and when any specialized machinery is required, then only we will go for buying, otherwise we do have ample machine for execution of these projects.

And what would be the full-year capex guidance?

Close to INR30 crores-INR35 crores.

So, earlier we used to say it should be between 10% to 15%. This year, it should be minimum 15%.

Okay. And what would be our equity invested in HAM and solar in this quarter?

This quarter particularly, the quarter which has gone or the new quarter which is right now?

No in Q1 and year-to-date?

INR23 crores we have invested.

INR23 crores we have invested in the first quarter.

So, this is cumulative both HAM and solar?

Yes, yes.

Okay. Those are my questions thank you.

Thank you so much.

The next question comes from the line of Chetrika Deshpande, an Individual Investor. Please go ahead.

Hello. Good morning, and thank you for the opportunity, sir.

Good morning.

So, my first question was over the next 3 years, what will be the biggest driver of shareholder value? Like will it be revenue growth, margin expansion, asset monetization, or higher ROCE? Sorry.

So, good question. We have almost 11 verticals in the company. We always target to build at 25% IRR at the project level. And if you see, we have already sold one asset, which is Malout Abohar Sadhuwali, which has given much more the IRR what we committed or we guided our investors. So, our order book is robust for next 4 years. You can see that. We have good capacity to bid more projects. And our project which are going to get completed, we are very clear that we are going to sell those projects. We have already done that in past. We've already sold Malout Abohar Sadhuwali, which happened in the first quarter. And I mean, if we maintain our EBITDA margins of the EPC level, and we make money on equity, you yourself can see we have already delivered before. Our return on equity would be great as compared to the peers in the market.

So, normally, the order inflow comes in Q3 and Q4. If you see last year, in Q4, we got almost 45% of the order book.

Okay. And sir, should we expect working capital intensity to improve in FY27 or will higher execution keep it elevated?

Definitely, there will be an improvement in FY27, looking at the relaxation given by the government, and it will improve further in FY28 as well.

And one more, one last question, sir. How do you see margins and returns in renewable compared to our traditional and road EPC business?

So, we have guided our investors the same kind of margin, but of course, we are trying to achieve better.

Okay, that's all from my side. Thank you, sir.

Thank you so much.

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

Thanks for the follow-up. Sir, you mentioned that we would be investing roughly INR550 crores in as equity in HAM projects, but if you look at the status of the HAM projects, so we may be doing two are awaiting AD, and another two will be starting now, VRK 11 and VRK 12, and also for Southern Ayodhya, we're expecting some slowdown in execution this year because of land challenge. Then how much equity are we investing in this? So, we will be investing 70% - 80% for the VRK projects in this year itself?

50% which is it.

Can you hear us?

Yes. Vaibhav, if you look at the sanction.

Yes.

The sanction requires us to infuse 50% upfront liquidity in VRK 11 and VRK 12. So, this is what we have considered in the total commitments. So, if you look at, there are other projects also which are going on, like Northern Ayodhya, Southern Ayodhya, Ludhiana -Bhatinda, in which we are yet to infuse equity. So, as and when the progress will achieve, we will accordingly infuse the equity in those projects as well. So, in totality, we will be infusing INR550 crores, which is across all 11 of our HAM projects.

Incrementally, right?

So, because I was factoring roughly 70% for both VRK projects, then Northern Ayodhya, Southern Ayodhya entire equity, and also 70% in Southern Ludhiana, and 15 in Indore -Ujjain. Then also I was getting roughly INR430 crores-INR440 crores incremental. So, I was confused.

Ludhiana-Bhatinda, we are targeting close to INR53 crores. And then Ludhiana, Ayodhya bypass, we are targeting INR61 crores and INR53 crores in another project. VRK 11 and VRK 12, we are targeting INR97 crores and INR139 crores. Southern Ludhiana bypass, we are targeting close to INR38 crores. Indore-Ujjain, we are targeting INR60 crores, INR50 crores we are targeting in Bihar Sahebganj project, Zirakpur, we are targeting another INR16 crores . So, in totality, this comes to INR550 crores.

Okay. Okay, okay. Sir, secondly, on depreciation, we s aw sharp fall from around INR13 -odd crores last quarter in Q1 to INR9.5 crores. So, incremental, what would be the run rate, and what was the reason for this fall in depreciation amount in Q1?

So, if you look at the block, it's constant, it's basically charged at the same rate. So, reduction because due to some of the assets which has been sold in the previous financial year, and there is a WDV depreciation method which we are charging on the assets.

So, this should be the recurring run rate going forward?

Yes, if we are going to buy a few assets more during the year, definitely this will increase, otherwise, if you look at the same level, it will keep on reducing every year.

Okay. And sir, lastly, on other income, we saw a sharp fall from INR15-odd crores last year to INR9.5 crores in this year, first quarter. So, even this should be recurring or we may see some increase in other income?

Other income, if you look at, is primarily on account of royalty, which we were getting in the earlier years. Right now, we are not charging royalty, and plus FDR, if you look at, in the previous financial year, we were having proceeds from IPO on which we were getting returns in form of an interest on FDs. So, we don't have that surplus now. We have 100% utilized the IPO proceeds in the last quarter of the FY26. So, whatever FDs we have close to almost INR320 crores FDs lying in the books of accounts, so as per the rate of interest, we are getting the interest in the books of accounts.

So, this should be a recurring number, right?

This will be on the same line, what we have shown in the first quarter.

Okay, okay. Thank you, sir.

The next question comes from the line of Yash Parkar, an individual investor. Please go ahead.

Hi, sir. Am I audible?

Yes, hi. Please go ahead.

Hi. Thank you so much for the opportunity. So, my question was regarding the commercial papers. So, recently, we have approved the issuance of commercial papers of around INR100 crores on a private placement basis. So, sir, as a shareholder, I would like to understand what is this commercial paper intending to fund, and how does raising short -term commercial paper fit with the long-tenure nature of our HAM and EPC project cash flows?

So, commercial paper we are going to carve out from our working capital limits. So, the reason being we are getting a better ROI on commercial papers, it will be close to 6.8% to 7% as against WCDL where we are getting a rate of 7.5% to 7.8%. So, this will reduce our finance cost, and moreover, we will be entering into the market by issuance of the commercial paper, which will give more benefits to the company and visibility to the company.

Okay. And sir, could you elaborate on the near -term pipeline, what it looks like in the two international markets? And whether we should expect meaningful revenue contribution from the Ceigall Global PTE Limited or the UAE entity within FY '27 and FY '28?

So, we are very conservative going global. We have quoted few tenders; one was in Romania and few in Dubai. Because of this war situation, we are a little more conservative now, and our order book is robust in India. So, we are we want to take baby steps there. We are bidding for a few more projects, which I can't tell you on this line. Once we bid, we can share that. Otherwise, our order book is robust in India. We want to grow internationally, but again, very conservatively. Thank you.

Okay. Sir, last question from my end. So, consolidated ROE has fallen sharply to 14% in FY '26, even though ROCE has been comparatively more stable somewhere around 19%, 20% over the same period. Is this decline in ROE purely a function of the equity base expanding post-IPO and post-QIP type capital raises, or is there a genuine decline in return on the incremental capital deployed that we should be concerned about?

This was primarily on account of rise in equity share capital only. So, if you look at, we were close to INR2,098 crore s equity share capital at the end of FY '26, so my base has increased, which has reduced my ROE.

Okay. That's it from my end. Thank you so much for answering my questions.

Thank you.

Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to Mr. Ramneek Sehgal for the closing remarks.

Thank you very much, everyone. I would once again like to thank all the participants for joining us today and making this an engaging and insightful discussion. We appreciate your continued interest and confidence in Ceigall India Limited.

As we move forward, we remain committed to disciplined execution, prudent capital allocation, creating sustainable long -term value for all our stakeholders. We hope we have been able to address all your queries. In case you have any further questions, please feel free to connect with our investor relation team at Adfactors. Thank you once again. Have a good day, guys. Thank you.

Thank you, sir. Ladies and gentlemen, o n behalf of Ceigall India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.