G R Infraprojects (NSE:GRINFRA) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to GRINFRA Projects Limited Q2 and H1 FY 'twenty seven Earnings Conference Call hosted by HDFC Securities Limited. Today, we have with us Mr. Rajinder Kumar Agarwal, Managing Director Mr. Ankit Maheshwari, Deputy CFO. This conference call may contain forward looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

0:56 Please note that this conference is being recorded. I now hand the conference over to Mr. Parikshit Kanpal. Thank you, and over to you, sir. Thank you, Shreya. So without taking any further time, I hand over the floor to Mr. Rajinder Varwal for his opening remarks and industry overview, followed by detailed financial analysis by Ankit. Over to you, sir. Thank you, Pritchivji. Good afternoon, ladies and gentlemen, and a warm welcome to the Q2 Financial Year 'twenty seven Earnings Call of GRINFRATES Limited. Thank you for taking the time to join us today. I'm joined on this call by Mr. Ankit Maheshwari, Deputy CFO of Doctor. Kankar. And operational performance during the quarter, along with our perspective on infrastructure sector.

1:49 Thereafter, Ankit Ji will take you through the financial performance in detail. Following, we will open the floor for questions. Looking to financial year '27, the company recorded revenue from operations of approximately INR $20.19 crore, representing a growth of 64% compared to corresponding quarter of the previous financial year on a stand alone basis. Adjusted EBITDA margin stood at 9.29% for the quarter as against 9.75% in the corresponding period last year. In the year, the company maintained a debt equity ratio to 0.04x, which is continue to remain among the best in the sector.

2:44 As of 10/01/2026, our order book stands at approximately INR 24,577 crore further, which aggregating to approximately INR 19,346 crore are yet to be opened. We have received the appointed date of Agra Gwalior DBFOT project as on date appointed date of two projects amounting to INR 3,562 crore is still awaited. Here all, we are seeing early signs of a broader investing cycle with improving private sector capital formation and increasing institutional participation in infrastructure financing.

3:37 At the same time, the focus is shifting towards integrated connectivity, energy transition and strengthening logistic and warehousing infrastructure. We remain positive on opportunities. It create for experienced developers and EPC players, particularly those with the capabilities to execute complex, large scale infrastructure project. Let me now briefly touch upon the key development across our focus sectors. In transport sector, as we know, has identified TRP project pipeline with estimated cost of more than INR 8 lakh crore for next three years, of which Bihar state has received recently approval of project with estimated cost of INR 1.64 lakh crore.

4:31 This reinforced the continued emphasis on expanding national highway connectivity. The government is also taking a step to strengthen private sector participation through revision to the BOT Toll Convention Framework, alongside the technology led initiatives such as barrier less tolling and automated construction. The railway sector continues to prioritize capacity expansion, freight decongestion and network modernization. The government recently approved eight multi tracking projects with a total estimated cost of INR 21,000 crore. In August, the PPP appraisal committee recommended six new railway line projects involving track construction, electrical and signaling system, tunneling, viaducts and bridges for the consideration by the competent authority under the hybrid annuity.

5:33 In tunnels and hydro, the hydro and pumped storage sector continue to present a significant multiyear opportunity. As of August 2026, India has 7.43 gigawatt of operational PSP capacity across 10 projects, A further 10.40 gigawatt across eight projects has been appraised by the Central Electricity Authority. CEA estimates the requirement of 73.93 gigawatt of storage capacity by two thousand and thirty one-thirty two. We believe this creates a strong opportunity aligned with our capabilities in hydro and underground protection.

6:19 In power transmission, the power transmission sector continued to witness significant investment, driven by the need to evacuate renewable energy and strengthen grid infrastructure. Recent key development was the approval of Green Energy Holder Phase III with a total outlay of approximately INR 1.86 lakh crore, including INR 1.36 lakh crore towards interstate transmission infrastructure. In oil and gas, a recent significant development in the sector was the approval of INR 84,000 crore Samudramansan scheme to accelerate domestic offshore exploration and production.

7:07 Through financial year two thousand and thirty to 'thirty one, scheme provide extensive seismic survey, 60 deep water exploration wells and the development of common offshore infrastructure, alongside dedicated manufacturing and service zones. The scheme also provides government support of up to 50% of eligible billing costs. The government is also continuing to expand domestic exploration through successive open aggregate licensing policy. Logistics and warehousing, institutional investment in industrial and warehousing asset decreased approximately INR 3,500 crore during January September twenty twenty, representing a 15% increase in the corresponding period of 2025.

8:02 The union cabinet approved the establishment of Integrated Transport and Logistics Authority, a special purpose vehicle to improve coordination and integrate planning across road, railway, port, shipping, aviation, inland waterways and logistics. In September 2026, DPIIT announced work with the Asian Development Bank on a grading and dating framework of warehouse and core chain facilities. The initiative is intended to improve quality standards and create modern facilities and support formalization of the sector. I wish you and your families, including our clients, lenders, partners, employees and share a very happy and prosperity.

8:56 I hand over to Mr. Nitish. Thank you, sir, and good afternoon, everyone, on the call. I would now take you through the key highlights of the quarter two financial performance. The stand alone revenue from operation was INR $20.19 crores in the quarter ended September 26, which has increased by 64% approximately year over year compared to INR $12.34 crores in the quarter ended September 25. Consolidated revenue from operations was INR 2,325 crores in quarter ended September 26, as increased by 43% year over year compared to INR $160.02 crores in the quarter ended September 25.

9:43 Stand alone EBITDA margin stood at 9.49% in quarter ended September 26 from 9.76% in quarter ended September 25. The margin at group level has decreased to INR 18.63 crores in the quarter ended September 'twenty six from 24.16% in quarter ended September 'twenty five. Profit after tax at stand alone level increased to INR 161 crores in the quarter ended September 'twenty six compared to INR 131 crores in the quarter ended September 'twenty five. Profit after tax at consolidated level increased to INR $2.90 crores in the quarter ended September 'twenty six as compared to INR 189 crores in quarter ended September 'twenty five.

10:34 Stand alone net worth stood at INR 9,235 crores at the end of September 'twenty six. It was INR 8,869 crores at the end of fiscal 'twenty six. The net worth at consolidated level is INR 10,042 crores. At the end of September 'twenty six. It was INR 9,391 crores at the end of fiscal 'twenty six. The total stand alone borrowing outstanding at the end of September 'twenty six is $3.40 crores approximately with debt to equity of 0.04x and the total consolidated borrowing outstanding at the end of September twenty six is INR 5,938 crores with debt to equity of 0.60x.

11:25 During the quarter, the company has made additions to the fixed assets amounting to INR 60 crores. The net block of property, plant and equipment, including CVP intangibles, is ten fifteen crores at the end of quarter September 26. Investments in the subsidiary companies in the form of loans and equity are 2,687 crores approximately at the end of September twenty six. And the balance promoter equity contribution required to be made to the HAMBOT projects is INR 3,163 crores, of which the company is expecting to contribute approximately INR 500 crores in the remaining year fiscal 'twenty seven.

12:19 Working capital in days at the end of September twenty six is 152 days compared to one hundred and twenty eight days at the end of fiscal 'twenty six. The increase is primarily on account of increase in debtor days and inventory days. Trade receivables at the stand alone basis are INR 2,636 crores, which includes HAM debtors of INR $14.90 crores at the end of September twenty six, and the trade receivables at the consolidated level are INR $11.81 crores at the end of September 'twenty six. The unbilled revenue at the stand alone level is $11.32 INR crores at the end of September 'twenty six, and the unbilled revenue at the consolidated level is INR $6.18 crores at the end of September 'twenty six.

13:14 The inventory levels are at INR $8.42 crores at the end of September 'twenty six compared to INR $7.39 crores at the end of fiscal 'twenty six. I would also like to thank to all our stakeholders, including employees, business partners, vendors, bankers and auditors who have supported the company. And further, I would also like to wish you and your family a very happy Diwali in advance. Thank you. Thank you very much. We will now begin with the question and answer The The first question is from the line of Shravan Shah from Dollar Capital Private Limited. Go ahead.

14:21 Thank you, sir. Ankit, sir, can you just repeat the unbilled revenue at console and stand alone level, which you just mentioned? Unbilled revenue at stand alone basis is INR $11.32 crores. And at consolidated level, it is INR $6.18 crores approximately. Okay. Got it. So sir, now coming to the question front. So in the first is, can explain me if I look at difference between the Q1, Q2 order book, the difference is very, very $7.50 odd crores versus INR 2,000 crores 'nineteen revenue that we have booked. So why this revenue is difference is that? And now given that in 1H, have already done 45% kind of a growth, INR 4,442 crore. So and we were looking at just a 15% kind of a 15%, 20% kind of a growth for this year. So how now we can look at the growth for full year or maybe the balanced second half?

15:30 Yes, sure. So considering the growth which we have witnessed in H1 of this fiscal, we are expecting that the growth would be closer to 20%. And for the remaining of the year, approximately INR 5,000 crores worth of revenue, we are expecting from all our business units as far as top line is concerned. Okay. Now regarding Yes. So not material improvement. So current 1H 4,400. So INR $5.50 odd crore extra revenue that we are looking at in the second half versus our first half. Yes, that's right. But overall, if you compare with the previous year, it will give us the growth of approximately 20%.

16:24 So earlier from the guidance perspective, we were projecting around 15%, but that we are now kind of increasing marginally closer to 20%. And then going forward, 'twenty eight also, this similar 20 kind of growth one can look at? Yes. I mean, see, of course, subject to the order inflows and project executions, we can reasonably target a growth of around 15% in the next fiscal. Upon we are the lag in the compared to all other peers also.

17:30 Opportunity to hire across to sir sector may through this all may or this this all So sir practically and November, December February, March main

18:56 transport road and rail transport transport power or hydro and tunnels Okay. But what's our new competition this is after the credit will be confident target we should be able to do it.

19:52 Okay. Okay. Sir, project appointed date December Yes. Expectation So as of September 26, around INR 3,100 crore is the commitment which is required to be infused. So next year around INR 2,500 crores next year.

20:49 2,500 crores FY 'twenty eight may single year may we will be putting or FY 'twenty eight, FY 'twenty nine half of kind of a split? 3,100 around accordingly, next to next fiscal year accordingly distribute over depending upon project progresses. And margin, sir, is a possibility And Sarwon, also coming back to your question of the order book movement. So it is the net impact of the project, which we have added a positive change of scope escalation and maintenance revenue.

22:07 So that's the net impact of INR $7.43 crores you see. The next question is from the line of Mohit Kumar from ICICI Securities Private Limited. Sir, my question order book sequentially, if I'm not wrong, would decline I think So order book, if you see consistently, we have been maintaining between the range of 20,000 crores to INR 24,000 crores.

23:06 And Agra Gwalior plus other projects where appointed date is awaited, yes, that we reflect separately as L1. And only after the appointed date, it has been included. So as of now, this Agra Gwalior has been included. But the other two projects, once we receive the appointed date, it will be added. So sir, last quarter order book include 30,000 order book? April 1 04/01/2026, the order book was INR 26,400 crores. So as I was mentioning to Shabal, then it has certain additions also about the positive change of scope, etcetera, and then the work done. So based on that, the closing balance as of September 30 is INR 24,500.

24:04 Is it right to say, sir? Agra College is included in this. Alright, sir. Yes, sir. Yeah. So, earlier criteria or criteria of network, is it possible to share the changes which are made to the net worth criteria under the new and BOT? The net worth criteria for the more guidelines. Know that 20% of un executed Jitney projects 20% network requirement. So pipeline was strong 1.7 Last question, sir, on the transmission project,

25:52 pipeline and given the fact ambition larger size project, bigger size project as you go forward? Power transmission pipeline 92,000 crore projects. Approximately INR 8,000 INR 1,000 crores project, we'd open on submitted already.

26:45 My question is, it too early? Within INR 5,000 The next question is from the line of Abhinav Naladir from ICICI Securities Limited. My first question is on the back deposit from NTPC, which was canceled during this quarter. So what was the reason behind that? Is there any execution challenge or anything pertaining to a company that has impacted the cancellation?

27:52 Yes. So see, the force majeure clause was activated considering this war situation. The prices of the battery have skyrocketed. So that is why that particular clause got activated. But currently, we are in discussion with the client, and we are keen to complete this project. So we are quite positive to complete this project, but there are certain terms which are underway discussion. So very soon, they will get finalized. And accordingly, we will inform everyone on the progress of this project. But this project has been canceled, right? The project, I mean, in literal sense has not been canceled by NTPC, though they have come up with a revised bid, but they are also extending the time line of the same because of the same fact. Yes. So it depends upon how we accept to proceed further on this project.

28:56 Understood. So second question, I mean, I'm just still on the order book part. So if I understand correctly, the Agra Gwalia project was worth about INR 4,000 crores, right, roughly? That's right, no? Yes. Yes. Yes. So if I see the order book, I mean, Mohit was also speaking, it is it has not increased. We have executed about INR 2,000 crores of projects during this quarter, but the order book still has declined, whereas we are adding INR 4,000 crores of new order from that is the Agara Walle project. Just trying to understand the math behind this, if you can help us in the granular details, how is the working behind this INR $245,000,000,000 worth of order book? No, no. So Agra Gwalior and other projects have already been added in the order book, but they become executable only after the appointed date. So therefore, as I was mentioning that at the beginning of the year, April 26, our order book was INR 26,400 crores.

30:01 And then as of 06/30/2026, it was INR 25,000 crores and as of September, INR 24,500 crore. So this entire trend includes all these three projects when they were awarded. But if you ask for the executable, so executable does not include two projects where the appointed date is awaited. And also Agra Gwalior is INR 3,686 crores to be precise. It's not INR 4,000 crores. My last question is on the operational LAM projects. Any plans to monetize any of those in the near terms?

30:48 Approximately INR $12.50 crore. Thank you. The next question is from the line of Baibhav Shah from GM Financial Services Limited. Please go ahead. Yes. Sir, out of INR 25,000 crore in order backlog as of September, what would be the oil and gas order backlog? So the oil and gas order backlog as on date is around INR 300 crores.

31:41 And what revenue are we targeting from oil and gas for 'twenty seven and 'twenty eight? So this year, we are targeting to secure a project of approximately 2,000 crores, of which around INR 1,000 crores worth of revenue we expect in 'twenty seven-'twenty eight. Cumulative for the entire year, INR 1,000? Yes. And what have we done in the first half? First half of the next year? No, this year. Actual oil and gas turnover in first half. Actual turnover in this first half, one minute, let me share it to you.

32:29 So it was around INR 900 crores. Okay. Okay. So second half only INR 100 crores we are doing? No, no. I was talking about the financial year 'twenty seven, 'twenty eight, you asked now. Okay. INR 2,080 thousand target. Yes. So new order book target is INR 2,000 crores, of which we expect to do INR 1,000 crores in next financial year 'twenty seven, 'twenty eight. Okay. And for FY 'twenty seven, the oil and gas turnover? For FY 'twenty seven, the overall oil and gas turnover would remain around INR 1,200 crores. So next year, we are expecting a decline in terms of turnover? Yes, it depends upon the season as well because the work has to be carefully executed as per the season, the learning of which we have got in this particular project.

33:23 Okay. Okay. And secondly, working capital has increased significantly in the last couple of quarters. So can you give you a breakup of between the oil and gas receivables and hand debtors? Yes. So total, if you see the receivable as of September 26, is around INR 2,600 crores, which includes HAM debtors of INR $14.90 crores and other debtors of INR $11.45 crores. Out of this other INR $11.45 crores, the oil and gas is around INR $7.40 crores. Okay. And sir, lastly, on Agra Goliath, what revenue are we targeting for this year and next year?

34:14 Given the ADF come up now, we have the entire second half. Right. So Agra Goliath, we are targeting a turnover or revenue from this year approximately $2.50 crores. Next year? Next year, around INR 1,200 crores to INR 1,400 crores. Okay. Those are my questions. Thank you. The next question is from the line of Deepashree Arvind Joshi from Ambet Capital Private Limited. Yes, ma'am. Yes.

35:03 Sir, I just wanted to understand the on your EBITDA margin front, there was a fifty sixty bipod decline from your 10% target. But could you explain the reasons behind the slight contraction? Yes. So ma'am, the main reason remains around 2%, 2.5% impact due to the increase in cost of construction, which is driven by due to this war impact and price escalation on oil related products. But it also impacts the other supplies like cement and steel also. So that was the primary reason. Okay. Got it. And could you also provide your CapEx guidance for this year and FY 'twenty seven and 'twenty eight?

35:58 Yes. So if you see in this particular H1, this financial year, already we have done the CapEx of INR 83 crores. The guidance for rest of the year shall be in the range of INR 150 crore more. So overall, between the range of INR 200 crores, $2.50 crores. And for the next fiscal year, it would be around the same range of INR 200 crores. The next question is from the line of Shravan Shah from Dollar Capital Private Limited. Sir, project to monetize equity.

36:50 So now, obviously, we will be monetizing through the invite. So we will be getting the entire cash by this year or partly this year and partly next Yes. So this monetization will be in the cash only. But see, once this particular financial modeling will get start, then the entire enterprise value need to be assessed. So if we are able to monetize these five to six projects, let's say, by December or January, then hopefully, this entire cash will also come in this year only. Okay.

37:37 Okay. Okay. Yeah. Got it. Yeah. Thank you. The next question is from the line of Vasudev from Novama Wealth Limited. Please go ahead. Sir, what is the status of the BharatNet project? In BharatNet project, there are currently certain challenges regarding the right of way. But so it is progressing at a bit low pace, I would say.

38:24 So there are discussions which are going on with the relevant stakeholders. We are expecting that somewhere in January, that clearance should come, and then the project will start picking up from there in from quarter four onwards. Okay. And how much dividend or distributions we've received from the investor in this quarter? So in this quarter, we have received the total of 3.55 per unit, which includes the capital repayment of 1.17 per unit in this quarter against 3.25 per unit in quarter two of the last year. Okay. And for full year, how much is the total distribution that we are expecting?

39:16 For the total distribution, one minute, we are expecting around 13 crores to 14 crores. The next question is from the line of Sudip Bora from Ahmed Capital Private Limited. My question is on the working capital part. So the working capital days has increased predominantly because of the receivables and partly due to inventory. So receivables are like higher in your oil and gas segment. So is this the normal payment cycle? Or are we experiencing some kind of delays from the client side?

40:16 No. So the increase in working capital is mainly on account of inventory because if you see, all our projects are getting executed at a decent pace. So we have to build up inventory, particularly in the power transmission projects. Okay. But like I was going through the presentation, so the receivable days also have increased from eighty to one hundred twenty days. So it is coming from receivables as well. Yes. So this is primarily our HAM debtors. So if you see our model, this EPC project has been given by SPV to the GRINFRA projects. And because the working capital requirement as such in the GR, we have optimum. So therefore, we don't realize those debtors from our SPVs.

41:09 So they are getting realized as and when requirement basis. So it's the receivable which is lying there, and I need not to draw at this moment. Okay. Agreed. And like how is the receivables in oil and gas segment? So as I mentioned, our total receivable in the other sector, which is INR $11.45 crores, of which around INR $7.20 crores pertains to oil and gas. Okay. And like what would be the time lines? Like what would be the receivable days specifically for the oil and gas segment?

41:59 So currently, the work is on as the season has started. So Phase III of the project has started. So somewhere in March, we are expecting to realize majority of these receivables. Okay. So is the cycle of six months? Because if I see INR 900 crore of execution was done in oil and gas in first half, and the oil and gas receivables are around INR $7.40 crores. So is it somewhere around five months, the receivable days for oil and gas? No. No. See, it depends upon the completion of the entire work because, sir, the billing is on the milestone basis.

42:45 And accordingly, the collection comes in from the relevant parties. So the government will pay to the ONGC, ONGC will pay to the Masgow docs, And then through the escrow account, it will come to us. So that also takes some time. Okay. But on a blended level, like how many days or months would be the receivable duration for the specifically for the oil and gas projects? I think around ninety days to one hundred days is the normal period. Okay. Okay. Sure. Thanks. That was from my side. Sure. Yeah. Can I go ahead with the question?

43:42 Sure. Sir, earlier in the call, you highlighted about the PSP projects. So if you can just help us understand, are we qualified to bid for PSP projects? And typically, what size of PSP projects are you targeting for the order inflows? Qualification different requirement like standard qualification different qualification.

44:36 Typically, what kind of size of orders you are looking here, sir? Yes, 3,000 crore, yes, possible. Okay. So in one of them, you're qualified as a JV and other one, you're directly qualified? Yes. And so typically, the margins here will be in line with our existing margins or will be slightly better given the complexity of the projects? Margin, But we project And you will be entering this segment not as a partner to develop to a utility, but mostly as the EPC partner, right? I mean there won't be any equity commitment for these projects.

45:38 So the other question is given the commodity price increases, the crude has increased, bitumen prices have gone up, cement, other materials have gone up. So the compensation or the compensation from the customers, so is it smooth or you're absorbing the cost and the customer is not fully compensating you for the price increases? 1.5% to 2% impact.

46:33 Otherwise, bitumen side was a major impact government absorb payment. Thank you, sir. I think those are my questions. I don't see any further questions in the queue. So I would like to thank the management for giving us opportunity to host this call. So any final comments you have before we close? Ajith Najeev? Thank you, everyone, for your time and engaging discussion today. The quarter's financial and operational performance is a direct reflection of our team's sharp focus on project execution and our disciplined approach to capital management. We remain fully committed to translating this operational excellence into a superior long term value for our shareholders.

47:18 Thank you for your continued trust and partnership in building the nation's future. Thank you. Thank you, sir. Thank you, sir. Sure, we can close the call. On behalf of HDFC Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.