Ladies and gentlemen, good day and welcome to KNR Constructions Limited, Q3 and Nine Months FY 2026 Earnings Conference Call. 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 the date of this call. These statements are not a guarantee 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. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. K. Venkatram Rao, General Manager, Finance and Accounts from KNR Constructions Limited. Thank you, and over to you, sir. Yes. Good afternoon. Thank you for joining us today on the call to discuss the financial results for Q3 and nine months FY 2026. Along with me, I have Mr. K. Jalandhar Reddy, our Executive Director and Strategic Growth Advisor, our Investor Relations Advisor. We have uploaded the results and investor presentation on the stock exchanges as well as our company website. I hope everyone got an opportunity to go through it. We would like to touch upon our key company updates and industry events, post which we have a question and answer session. In the past few quarters, the infrastructure has operated in challenging environment, testing execution capability and balance sheet resilience across the industry. The highway sector, in particular, experienced a slowdown, primarily due to moderation in the project awarding by the ministry. This led to a lower construction and execution activity during the financial year. Reflecting this trend, road project, project award during nine months FY 2026 remained muted, with the Ministry of Road Transport and Highways and NHAI awarding 1,448 kilometers and 712 kilometers of the project respectively. Looking ahead, the outlook for project awards is improving, with NHAI has already invited bids for projects aggregating to INR 1.5 trillion. Against this backdrop, awarding activity is expected to gather meaningful momentum in the future quarter, supported by the robust order pipeline with a strong bias towards HAM projects, followed by BOT and PPP opportunities. Despite the near-term pressure, the outlook for sector remains constructive, supported by renewed policy thrust. The Union Budget provided a strong impetus to the infrastructure sector, with capital expenditure increased by 9% to INR 1,220,000 crore for FY 2026-2027. Reinforcing the government's continuing emphasis on infrastructure-led growth under the Future Ready Bharat Initiative. Policy measures are meaningfully focused on driving balanced regional development with a great emphasis on Tier 2 and Tier 3 cities. The development of high-speed rail corridor to promote sustainability mobility and Purvodaya Initiative aims at strengthening industrial connectivity along the east coast. Complementing these measures, the country, with the introduction of the new infrastructure risk guarantee fund, providing partial credit guarantee to the lenders aimed to de-risk infrastructure development during the construction and early operation phase, thereby encouraging greater private sector participation. At the same time, sector fundamentals continue to strengthen. FASTag-based toll collection have maintained healthy momentum, with volume rise by around 17% year-on-year during October-November quarter, and value collection increased by approximately 12.7% year-on-year. This sustained growth enhanced the cash flow of operational road assets and accelerated asset monetization by the ministry, which also creates value unlocking opportunities for companies with mature toll profitability. As a result, asset monetization has emerged a key funding lever for NHAI, enabling to generate resources beyond budgetary allocation. Monetization proceeds of approximately INR 35,000-INR 40,000 crore are expected in FY 2026 and are intended to support new infrastructure investment while maintaining financial discipline. To sum up, while the sector has navigated a phase of moderation and near-term challenges, the underlying fundamentals remain strong. With improving awarding momentum, supportive budgetary allocation and robust policy framework and growing monetization revenue, the road infrastructure sector is well positioned to enter its next phase of sustainable growth. Now, key updates of the company. The percentage of physical progress as of December 31, 2025 for HAM project is as follow: Ramanathapuram to Valanchery, around 99.4%; Valanchery to Kappirikkad, 98.3%; Chittoor to Thatchur, around 97.4%; Magadi to Somwarpet, around 90.1%; Marripudi to Somvarappadu, approximately 64.9%; and Mysuru to Kushalnagar, Package 5, 10%; and Mysuru to Kushalnagar, Package 4, approximately 6%. As of December 31, 2025, the company has already invested INR 727 crore out of INR 962 crore equity infusion required for all the HAM projects. The additional equity requirement of INR 235 crore to be infused as INR 87 crore in FY 2026 and around INR 148 crore in FY 2027. For this, you can refer to slide number 23 of our investor presentation. On 24 December 2025, the company executed share purchase agreement with Indus Infra Trust for the proposed sale of its 100% shareholding, along with the subordinate debt in the following SPVs: KNR Palani Infra Private Limited, KNR Ramagiri Infra Private Limited, KNR Guruvayur Infra Private Limited, and KNR Ramanathapuram Infra Private Limited. As part of this transaction, the company will invest around INR 566.8 crore in four SPVs in the form of equity and debt. Against this, company is expected to receive total proceeds of INR 1,543 crore, which includes INR 1,390 crore towards sale consideration and around INR 145 crore towards the estimated cash surplus, which will be upstreamed to the company in agreed manner. In November 2025, the company received a completion certificate for Avinashi Road Project in Tamil Nadu as of 8 October 2025. The company also received a letter of acceptance from the Musi Riverfront Development Corporation Limited, for the construction of an iconic bridge across Mir Alam Tank, connecting Bengaluru National Highway at Shastripuram to Chintalmet under the EPC mode. The project has a contract value of INR 319 crore in construction period of 24 months. Lastly, CRISIL reviewed the company's long-term bank rating facilities and reaffirmed them as a CRISIL level with stable outlook, while removing the ratings from the rating watch with developing implications. The short-term rating was also reaffirmed as CRISIL A1 and also removed from rating watch with developing implication. Now, coming to the order book position. As of December 31, 2025, the company's total order book includes the recently won EPC project, which stands at INR 8,849 crore. This is divided into 29% for the road projects, 19% for irrigation projects, 12% for pipeline projects, and 40% for mining projects. Client-wise diversification is 84% of order book is from the third party, and balance 16% is from captive in-house projects. The order book percentage is split between state governments, around 80%, and central government 2%, and 2% from the other private sector. The current order book will be able to execute over a period of around two years, excluding mining projects. With the government emphasis on infrastructure development, we anticipate new order awards in the coming quarter. We are hereby aiming at order inflow of approximately INR 10,000-12,000 crore by end of September 2027, with a mix of projects like NHAI, irrigation, and other state government projects. Now, let me move to the Q3 and nine months separately standalone financial performance. The revenue for the quarter stood at INR 585 crore, and EBITDA for Q3 FY 2026 stood at INR 30 crore, and EBITDA margin is 5.2%. Net profit for the quarter was INR 18 crore. For nine months of FY 2026, highlight revenue for nine months of FY 2026 stood at INR 1,561 crore, EBITDA stood at INR 150 crore and margin at 9.6%. Net profit for nine months FY 2026 stood at INR 98 crore. Now, coming to Q3 nine months, that's 2026 consolidated performance. The revenue for the quarter stood at INR 743 crore, and EBITDA for Q3 of FY 2026 stood at INR 160 crore. EBITDA margin is 22.4%. The net profit for the quarter was INR 104 crore. Moving on nine months FY 25, the revenue for nine months of FY 26 stood at INR 2,002 crore. EBITDA for nine months of FY 26 stood at INR 542 crore, with EBITDA margin of around 27.1%. Net profit for nine months FY 26 stood at INR 332 crore. Now, moving on the standalone balance sheet, the company continue to remain strong balance sheet. The working capital debt stood at INR 82 crore compared to INR 93 crore as of March 2025. The consolidated debt as of 31 March 2025 is stood at INR 2,444 crore, as compared to INR 1,847 crore as of 31 March 2025. The net debt stood to be on consolidated basis, March 31, 2025, stand at 0.5 x as compared to 0.41 x as of March 31, 2024. With this, we can open the floor for question and answers. Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Our first question comes from the line of Shravan Shah from Dolat Capital. Please go ahead. Hi, sir. Thank you. Sir, just trying to understand on the revenue and order inflow front. So if you can elaborate on that front. So, I will try to break it in the parts. So first, in the balance of fourth quarter, how much execution or the revenue we are looking at out of this INR 8,850-odd crore order book? And out of this, in FY 2027, how much revenue are we looking at? That is first. Then on the order inflow I will come. Yes, sir. Actually, out of the backlog concerned, what we have very little, in fact, certain portion is from mining. Mm-hmm. So mining actually to start with, I think, we are able to start that in coming second quarter of next financial year or third quarter. Practically, it is possible to make it in third quarter as the forest clearance and the Banahalli village Gram Sabha could not be concluded. So this is going to further take another 8-10 months time, sir, to start it. So this is the situation. So what we are left with is only around 4,000 plus, which is need to be executed, and that need to be executed within upcoming say two years' time, whatever we have. But the project in the Bengaluru-Vijayawada highway, that package 30 should be closed by April, we are expecting. That will be taken with the PCOD. So those things will be closed. So ongoing projects will go on for this year. I think you can take around, say, INR 2,000 crore could be executed this year, this financial year, I need to say. So further, sir, actually, hopefully there is a good robust expectation to get from NHAI as well. We are even gearing up for upcoming railway works as well, high-speed rail also we are take we have already taken one PO for high-speed rail and railways. So that is being now taken care. So we are continually looking for big plays in that also. Again, we are also participating in state highway tenders, for power projects also we are trying to participate as well. We are also participating in railways tenders also we are participating. Apart from that, irrigation totally, we are doing again. There are likely projects to come up from irrigation in Rajasthan as well, in Madhya Pradesh and also from Odisha state. These are now on the board, so we will be participating in those tenders. So definitely, sir, we are trying our best to target the tenders and get some order books for the company because it's very very need of the hour, and we all understand the importance of the thing, and yeah, we even mind our investors concerns about this, sir. Yeah. So, further, just trying to understand. So, let's say break it parts. So till now, how much orders that we have bidded, and also if you can specify NHAI or state level and the segment-wise, where bid is yet to open, that is one. Second, how much more are we planning to bid before March? Although, I understand Venkatesh has said that we are looking at INR 10,000 crore-INR 12,000 crore by September. But just trying to break it apart, and also, let's say, how much we are looking at to get before March, and if so, so in terms of the converting into the revenue in FY 2027, how much can be converted out of this into the revenue in FY 2027? Sir, actually, you have asked about the main, how many bids we have placed right now. First, I'm going to- Yeah. Answer this. There are the projects which we are... Odisha, we have participated in some HAM projects. I think it ended three days ago. Apart from that, we have also participated in certain tenders, I think in Karnataka. Karnataka is a very small bid, but okay, and apart from that, sir, we are now, I think nothing now, other than that. But Maharashtra, it is also there. We have placed this in Maharashtra, but they are smaller, you know, INR 600 crore-INR 700 crore projects we have put in. So almost about INR 6,000-INR 8,000 crores, we have quoted as of now, sir. Waiting for those results to come down. Apart from that, there is Chennai bid, which we have quoted, and we are waiting for that results to come out. As it is a court case and all that, it is under strict court directions are needed for that. Apart from that, sir, we are we have nothing now. But we will be placing bids in mining. There is a Jharkhand only there is INR 5,000 crore project is there, which we are now participate trying to participate in that bid. Apart from that, there is almost 63 projects are there in before March. I can see the list also. Of scaling from 3,000 to say 3,000-3,500 also there. So different project size are there. Even INR 4,000 crore is also there. And, there are a lot of work like that, sir. There are, there's, there are bigger kind of projects also. So, looking for, forward, I think, even if you are able to succeed in getting three bids, two, two bids out of NHAI also will be, having enough order in hand, sir. And as you all know, the time it will take, any project to come in, it depends on, again, depending on the, land situation in the project, sir, first thing. And minimum time from bid stage to the financial closure stage is also, you know that, as you know, 7-8 months is, slightly prescribed there. That's a mandatory time that can be before financial closure. So these are all the hurdles which we have, sir, in this. Apart from that, there are railways, also 26 bids are there, which we are trying to participate. Metro, only one bid is there, that also we'll be participating, sir. Solar projects which we are trying, sir, I think, the bids are yet to come from Karnataka as well, from Maharashtra also, which we are, we made a initial level inquiry from the department. So there are bids going to come up in March, but the bids may happen in April or May. April, I think. So this is the situation, sir. Irrigation, there are 11 bids which we are targeting, sir, are there. But this irrigation—sir, this irrigation, 11 bids, in terms of the value would be how much? And railway, 26 bids that you said that, the value would be how much? Railway, 26 bids, sir, I will give you the... I don't think I have that number. No, it's just, so broadly- I'll get back to you. No, it's just so broadly in terms of INR 7,000-INR 8,000 crore bid, which we have already placed, where outcome is yet to come. If I just summarize, maybe, INR 30,000-INR 40,000 crore kind of a bid we are planning to put in now, and out of that, we are looking at INR 10,000-INR 12,000 crore. But given that, let's say we do another, INR 500 crore kind of execution now, so for FY 2027 and the way the bids are done, let's say we, if we win that also, how one can look at the execution or the revenue for 2027 and particularly for FY 2028. Because as you highlighted, once we get this and it will take 6-8 months to start the execution, then for us to recoup the whatever the loss, or the, the we have missed on the revenue front, that we will, we should be covering in FY 2028. So there, how one can look at... Can we look at INR 4,500 crore kind of a revenue in FY 2028, is it possible? Seven, most probably it should be possible. Yeah, it is. If [Wipro] gets right now, order book is INR 8,850 crore. On that, actually, mining order is around INR 3,500 crore. If we exclude them, then order book is come to around INR 5,300 crore. That irrigation is almost INR 1,700 crore are there. Out of that, almost 800 is, that is, unbilled is there. If you remove that 800, only and a new irrigation only, so we left out of around INR 4,300 crore of order book, existing order book. Out of INR 4,300 crore, we can execute around, you can say INR 2,000 crore actually worth in next year, 2027, out of the current order book. If any order is coming and we've been able to execute, that will be added actually. This current order book, definitely we can able to execute around INR 2,000 crore in FY 2027. Okay. And lastly, margin, though, this quarter, if you can highlight specific reason why it has significantly fallen and, going forward, once we get this order inflow, can we look at again 13%-14% kind of a EBITDA margin? No, actually, to regularize that, I think, we hope, not exactly this year or FY 2027 also, we are not expecting that way, sir. But I think 2028 should be very bright year for us. That's what I'm thinking. Because, you know, all these, new projects, whichever we bid and we win, and, that, that will launch in the last quarter or third quarter of the upcoming year. So definitely, the execution will be very less in, in 2027. So at this stage, it is, difficult to say, but, and the competitive intensity is also very, very tough here, sir, nowadays. So with all that, I think, adding to our, perception, definitely I think it would go little bit, lower side on this, 2027. Maybe it's just quite difficult to expect like, levels like, 13, 14 levels right now. But I think we can expect, something, near to, nine, 10 figures to be deliverable. So because, you know, the entire, project force is, project site people, everything, manpower is completely, on, and the number of turnover is coming down. So definitely, there is an impact on that actually. And, people sitting idle, and second, equipment is, very huge with us, and that is not performing to the, required, level. So this is also, causing such, this thing. And, and, Shravan, with that actually what, sir, said, because lot of projects is coming to final stage. If you see our Guruvayur project, our Ramanathapuram project, our Ramagiri project, and Avinashi project, all these projects are almost back of the end. So what is it actually, better and there one is not much revenue, but corresponding expenditure will be there for service starting. If the expenditure is already there. So that's why actually this quarter actually, this has come down. And as you know that in one of the projects, actually, due to this construction of viaducts, so around INR 20 crore actually extra additional cost has come in this quarter. So these are the mainly reason actually why our EBITDA has come down from INR 5 million with the 5% in spite of our industry level. But in future, actually, next year also will be maybe 9%-10%, but 2028 onwards, actually, once this we get all the projects, then definitely we should try to get our sustainable EBITDA of around 30%. Okay, got it, sir. Thank you and all the best. Right. Thank you. Thank you. Our next question comes from the line of Niteen S. Dharmawat from Aurum Capital. Please go ahead. Yeah, thank you for the opportunity, Emma. Sir, your voice is breaking. Hello, am I audible? Yes. Yes, please go ahead. Now it is okay, yeah. Okay, okay. My question is regarding the projects from NHAI. What is the status now? Are these projects coming? Are they, you know, putting more projects for bidding, or is there still stress in the system? What is the sense you're getting especially for next financial year? Yes, sir. Up to March end, we could see almost 63 number bids from NHAI we have selected. I think it's on selected only I'm talking about. In which, the size of the projects are varying from, different, different, sizes. I don't know, five, five to six thousand crore size to, it is varying up to 400 also. So, these are the project size, sizes we have, sir. Mostly, most of them are, above 1,000. Very few are, below, 500 also. So we have selected in a pattern where it, it could be, via our interests or, the nearby projects or side-by-side projects, all that are smaller scale. Also, we are grouping and trying to build so that, you know, it becomes a bigger, portfolio for us. So like that, we are targeting, sir. But I think one aspect I can say, but because the aggression in the market is very heavy here, so we are also not looking at the margins as we used to look at earlier. Maybe we'll have to dilute 2-3% of the margins and then go ahead. So that seems to be also noted, sir. For few projects, not all. Maybe for state highways and all, we are very good, we can get a little bit EBITDA more. But NHAI is concerned only to make ourselves right now comfortable, we would be bidding little bit few projects, little bit lesser, because the initial level it's you know aggression will be there. So there we will be... The size of the projects are grouped more than INR 3,000 crore of projects. There we again, we can aim the right margins as we used to get earlier. Definitely, sir, bidding on bigger size projects will always be helpful. That's what I'm thinking right now. I got it, sir. Because last few projects that we lost with you know very small numbers, if I understand it correctly. So maybe some bit of aggression from our side would help. Is that something that we are concluding? Yes, sir. That's what I'm also looking at, sir, right now. Yes, sir. Sorry, sir, what you said? Yeah, actually, some sort of healthy bidding only we have to do, sir. But however, we'll have to little bit dilute on the margin side so that we keep ourselves first comfortable and then make bid. So as a combination, it could be good one. That's what the conceptual thing which we are trying to design right now. Correct, sir. Correct. My second question is about the net debt. So with, you know, all the deals that we have done recently, what will be the consolidated debt after we receive all the money? Can you highlight that and how it is, you know, going to look from the balance sheet perspective when we are bidding for the new projects? Well, overall, actually, our debt is consolidated as of December is there around INR 2,400 crores. Out of 400, 2,400, what are the four, four actually that we are doing the monetization? Their debt is around INR 2,100. So as of debt consolidated, as of December will be around INR 300 crores, actually. And in future also, the date of this basically, one is we have, this three HAM project is going on actually, and that only debt will come. So you can say by March, actually, our debt will be, after completion of this divestment program, our debt will be around INR 500 crores on consolidation basis. Got it, sir. Thank you so much, and wishing you the best, sir. Thank you. Thank you. Thank you. Thank you. Our next question is from the line of Vaibhav Shah from JM Financial. Please go ahead. Sir, you indicated that we will be closing at INR 2,000 crore revenue in FY 2026, so it indicates revenue only INR 450 crore for Q4. So there will be a sharp fall in a [POQ] business in Q4? ... Yeah, because we have whatever the existing order book is there, based on that only we are projecting that we will get around INR 450. So total, this year we are going to achieve around INR 2,000 crore of the turnover. Next year also 2000? Nah, next year is based on our existing order books. It will go to INR 2,000 if we are getting some good, good projects actually in the third, maybe in the first quarter or maybe in Q2 also, then we can try to expedite and we can come. If we see EPC work is coming, definitely we can look into it. If it is HAM projects, then you know, there's almost it will take further 8-9 months to complete. So that's if additional order is coming, so that means that there will be further added in our revenue. Worst case number is 2,000 for next year? Based on our existing order, yes. Okay. So secondly, our order inflow in YTD would be somewhere around INR 4,300? This year will be, we have nine months- The mining order and two EPC projects. Mining, that will be around- Including mining. It will be around INR 4,000 crore. Around 4,000? Yeah. There were two orders, right? One was multi-level flyover at Khajaguda, and other was iconic bridge across Mir Alam Tank. That put together is around INR 800 crore. So INR 400, INR 400. INR 450, actually, put together. So, it's INR 800. INR 800 crore. Mining is around 3.5, so it will be around INR 4,300-INR 4,400 crore order inflow. INR 4,300 in this year. Yeah, correct. So then according to media articles, there is also one project called [Cheyyur–Vandavasi–Polur] HAM project from the... I think from state government. Any update on that? You are involved in that HAM project. Sir, Chennai, Chennai, Chennai, sir. The Chennai project, sir, actually there is a court case, so that court case, the hearing is on first of this month. So earlier to this, it is very difficult to say anything, sir. But however, you know, actually, the department is also under discussion with the, you know, the committee. There is a committee that is discussing on how to go about that court case after that. So I think, Court case regarding? Actually, sir, that one of the bidders, he disqualified. He has no qualification, actually, but he's fighting in the courts to qualify. Okay. And he is less by, so much, amount like that. So that- Okay. He went to the court. So once, single bench has cleared in our favor, not our favor, it is the department favor, because it is... We are not concerned with it, actually. Generally, he made an allegation on that, that about, that you have been blacklisted, so how it is like that? He made an allegation, for which we have submitted our documentation because, you know, we have the co-- we went to the court and we got nullified that order. After that, NHAI considered the settlement agreement, saying that we will do the flyover FP first, and they will not put us in the blacklist. So, there is no blacklist for us. So which we have explained to the court, and we, with that, that part we got clear from the bench. And now he went to the government, actually. So now government's hearing is on first. So once that outcome comes, then we can be able to tell you what happens, sir. Okay. Okay. Sir, secondly, any update on Bhandara-Gadchiroli order? So do you expect anything to happen or...? This is pending in a long way. We've been extending the bank guarantees and waiting for that, because the land acquisition is only concerned, but they are still talking about it. But I think in a month's time, we'll be able to know that, they also said we will somehow clear it in March, somewhere. Any possibility of getting LOA sometime in first quarter next year? Yes. Or is there a possibility of cancellation of order? Both the possibilities are there. We really do not know. It's pending with CMO office, actually, the CMO. So CMO, Okay. What the CM takes a view, that's on it, actually. But after lagging on to the project for so many time, years, so many days, generally, it will not go in cancellation. Because if they had to cancel, they would have canceled by now, because they have canceled that multi-modal corridor, and they're recalling the tenders in the BOT Toll. So this is not canceled as of now. Okay. And sir, lastly, one bookkeeping question: So out of your irrigation book of INR 1,700 crore as of December, what would be the unbilled portion? Around INR 800 crores, INR 816 crores unbilled. So the revenue potential is only INR 900-odd crore from the irrigation book? Yeah, yeah, yeah. Incrementally. 900. Yeah, yeah. What would be the total unbilled revenue at the company level? It is around 1,300, 1,355. ... in the water pipeline order, we have seen that the order book is roughly INR 1,033 crore. Also there is some unbilled portion over there with in an order? With pipeline work, huh? Yeah, pipeline. So there is unbilled there around INR 140 crore unbilled there, actually, on that. So that also should be reduced as, if you want to look the revenue potential- Yeah. Of 1,030- Yeah, it will also reduce. Yeah, yeah, it will also reduce. Yeah, correct. Okay, okay. Thank you, sir. Those are my questions. Yeah, yeah. Okay, thank you. Thank you. Thank you. Our next question comes from the line of Ritesh Poladia from Girik Capital. Please go ahead. Yeah, thanks for the opportunity. Sir, if you can give us some comments on Kaleshwaram Package 3 and Package 4, how much needs to be done more? The total of this outstanding receivables from this Package 3. Because Package 3, there is no outstanding receivable. What were the certified bills were there, it is already paid off. With respect of Package 4, around INR 677 crores is the certified bill that is pending for payment. Other than this, unbilled is in both the project is around INR 650 crores. So total around INR 1,430 crores is the amount which we supposed to receive from the government of Telangana for certified and unbilled portion. Do we need to spend more on this project or is this over from our end? As far, well, Package 3 is definitely no issue because we are receiving the collection. As far as Package 4 is concerned, that left out order book is around INR 100 crore, is only there actually in Package 4 only. So for that actually we may have to incur expense, otherwise most of the work of Package 4 is also completed. Okay. Sir, is there any legal actions we are taking or we are still waiting for government to come back to us? No, definitely we are following with the government, and we have, as you know, we have already put our appeal to the court also. So both processes we are following actually, both following with the department as well as through court also. So that's it. It is taking some time. You can give us by what time this can be cleared out or is there any chance that we need to write it off? No, no, definitely government side there is a delay. There is no question of write off, because definitely—Actually, writing off means certified gross write off is six months again. See, the thing is, second thing is, main government is not saying that they'll not pay bill, and they are really certifying the bills, that they want us to do the project. And on that they say, this one, that one, it is extending. But the thing is, hopefully, I am also thinking partial payments can be recognized in this month, March end. By March end, the partial payment should come out. That's what we are also thinking. Because, you know, there is a necessity of that project to be commenced as soon up. Recently, in CMO assembly also there was discussion. After that there is a CMO office, there is a discussion that was all the after the concerned actors were called there, and they wanted water for Hyderabad. Hyderabad badly needs water. So for that, you know, it is going to be a critical thing for them. Unless they commence this project upcoming years, they cannot give the water properly. So to address this, they wanted this project to be speeded up. So they said the department has said that it is been not paid for so many years, and the contractor is slowly moving on it, and there is no significant progress which expected progress is not there. That's what they said. So then CM said: "No, we'll pay them. Ask them to speed it up," like that they said. We are – they approached the department, approached us, and they said, "Okay, pay us, we'll speed up." That's what he said. So it stands as this, sir. So I think hopefully the heat is coming up from the requirement side, so definitely they should consider to pay us. Okay. Sir, another question on high-speed rail side. What kind of projects you will be targeting? So actually, there, it's a very premature stage because, you know, the... I think, already, the high speed rail network is being done in India. Right now, the, Hyderabad, Pune, and all that, is they're supposed to launch, on the project side. So we are also—right now, we have, recruited one CFO for railway, not for speed, high speed railway. He's a PE retired person. Mr. Ashok has been taken on the board now. He is, forming a team, and, also he's, likely to visit, concerned departments in, next week. So we'll get more information on that side, because as budget, they have allocated a lot of fund towards doing this, project. So definitely we also want our footprint out there so that, you know, now that roads we had some bad hits this year, these two years onward. So definitely we want to have another portfolio where we can keep us in growth path. That's what our conceptually we are thinking. Because it's a civil construction, we are always the civil construction, only the rail mechanism and all that we need to learn with the design consultants and all that, there are lot more people available with the team. So definitely we can scope up and do work. That's what I feel. So that's why we are starting off, it's a very, very, very starting stage with us. Yeah. That's all from my side. Thank you very much, sir. Thank you. Our next question comes from the line of Deepashri Joshi from Ambit Capital. Please go ahead. Ms. Joshi- Yeah, hello. Your line has been... Yeah, please go ahead. It is not audible, even voice. I think it's, it's Am I audible now? Yes. Now, it is better. Yeah. Little louder. Hello? Yeah, this is better. Yeah, yeah. Please go ahead. Yeah. For the canal project, is there a change in scope for the bid cost? Which project actually? The canal project. We have- The Paleru, Paleru Link Canal and Sita Rama Lift Irrigation. Oh, irrigation. That is your, actually, that is your new one. The last time it is INR 327 crore. Yes. It is the same only. Order book is the same only, INR 327 crore only. So, my question is because the total irrigation project in September 2025, in the order book, the number was around 1,500 crore, and now the number is increased to 1,700 crore. So just wondering where the increase has come from? It is that addition in our Package 4, actually. So what is our Package 4 was there. So there are some RE has been approved, actually. So there was some addition in our Package 4. It is not due to this project, it is due to our existing packages. Okay. So whatever addition is because of Package 4? Yeah, yeah. Absolutely, yeah. Okay. And when is the Paleru Canal and the other Sitarama Lift expected to start? Actually, because there is some land acquisition issues are there in that project, so this now government is starting out there. So it may start in somewhere in next year, Q1 of next year. Okay, got it. Just one more thing. What is the CapEx guidance for 2026 and 2027? We definitely will, if... Because what are the existing CapEx are there, there, that is actually sufficient for us. And then when if we are adding some new projects actually in sector, so for that, CapEx may require. So really that, we have to see that when we are getting these projects. So based on that, we may go up to around, you can say, up to INR 100 crore CapEx actually next year. Okay. Okay, got it. Sorry, last question: For the Package 4 and 5, Mysuru packages, what is the expected execution or the revenue that you're expecting in Q4? For which projects? Package, Package 5, Package 4, Package 5, Mysuru question. Understood. So for these two projects in this quarter you are talking, Q4 or next year? Actually, ma'am, that yes, this is concerned. There have been almost the new land problems have cropped up there because it's a complete refill. The land which is cutting down entire villagers' access to the other part of the field. So they wanted some service roads for which state government is supposed to do the land acquisition, which L&T is supposed to construct it. But the thing is now because of these issues, sorry, because the main problem is with the public, they have already not started any land acquisition as of now by the Karnataka government. So they, so the public were angry, and they stopped, in certain areas. So the Package [audio distortion]. So Package 4 concerned, 5 concerned, there is land problems. 4 concerned, I think only, there is 65% land is available there. On Package 5, the land is almost, only 55% available, that's it. So within that only we have to finish. So that's what, what we are planning is that, we do little bit early, completion is ensured, leaving the gaps of the land issues, and balance will be going for the, completion. I think, the, issue is taken into PMO purview to pursue that matter, as L&T try to, convince the people. So this is under, PMO's purview, sir, purview. So maybe it gets solved in another 4-5 months, what they're saying, 2-3 months that's it. This is the situation. Here, the completion can happen, I think, by May. May, June, we are expecting to do the PCO for that. Targeting, it's not that the thing we are doing part. Okay. So for Package 4, you will still be able to maybe finish because there are no issues as such, but Package 5 is still a concern? ... Yes. But concerned, but the whatever the leftover land, whatever the land for working is available, that will finish and go for PCOD. As such, contractors have a as number of gap, which they doesn't give you before six months, that can be deleted or dealing per PCOD. And then, again, after that, we will be doing for PCOD to final completion. Okay. So both combined, what do you think will be the revenue from these two projects in Q4? Actually, these two projects are about, say, two BOTs, around INR 10,000,000 and odd. Mm-hmm. Roughly we get around, say, INR 300-INR 350 crore. Because already partially is executed now, almost. Eleven hundred. 1,100 crore, yeah, pending. So which will come around INR 400 crore-INR 450 crore. In next year, FY 2027, out of that, we can expect around 40%-50%, around INR 450-INR 500 crore, actually. Okay. Got it, got it. Thank you so much, sir. Yeah, cool. Thank you. Our next question comes from the line of Bhavin Modi from Anand Rathi. Please go ahead. Hi, sir, thank you for giving the opportunity. Sir, just wanted to understand there was a hike in, you know, the subcontract expense. It's around INR 216 crore. And that has led to the, you know, the decrease in the EBITDA margin to 5%. So can you just help me, what is this cost pertaining to? So actually, as you know, we, what are our pipeline project is there, that is we have given back-to-back to our subcontractor. So on this project, actually, around INR 120 crores actually, turnover is happened actually. Out of INR 216 crores, INR 170 crores is pertaining to these subcontractor things are there. So that's why subcontractor expenses has increased. And, and as you know, subcontractor project has actually compared to less margin. So that is also one of the reason that our total EBITDA has reduced. And, and other reason, as I already told you, due to completion of our projects in the final stage and one issuing wire extension from us to her. So these things has actually, has factors and reduce the EBITDA. Okay, okay. So what about that, you know, the there was an accident, right? On NH- 66, for which we had to, you know, do some of the rework, right? Work INR 20-25 crores. So what is the status with respect to that? We need some settlement with them. Yes, sir. The bridge construction is going on, sir. I think almost substructure is 100% completed. The superstructure is got complete by this month end, maximum. ±10 days, at least. So, sir, how much money did you spend? We spent around INR 30 crores actually, as of now. Around INR 14, 15, 14, 15, 20, 15, 20 crores, we have to do it with that. 15, 20 crores. That has been reflected? About INR 3 crore, about that, on that project. Okay, okay. Got it. Yeah, so that's it from my side. Okay. Thank you, thank you. Thank you. Thank you. Our next question comes from the line of Vasudev from Nuvama. Please go ahead. Yeah, thank you, sir, for the opportunity. Sir, I just wanted to know, how is the progress going on the irrigation and the pipeline projects? Like, how much have we executed in nine months, the spending on the book, and when do we expect to complete these projects? Actually, out of this 1,033, actually we already around INR 150 crores work already done in the month of December. And in this quarter, actually, well, Q4, we are expecting around INR 200 crores worth in this quarter. So already INR 100 crores billing is there, actually, that we have to put the bill and balance INR 100 crores in the next month. So definitely out of 1,100, if you say INR 1,100 crores, almost INR 450 crores, around INR 350 crores actually is going to be executed by this year end. And maybe in next year, we may execute around INR 300 crores-INR 400 crores, balance maybe around INR 400 crores working, pipeline project for the next years. Okay. And sir, just a clarification on the subcontracting expenses. You said, INR 170 crore was for irrigation projects, where, you know, we haven't received the amounts. So like revenue is in book, but cost has been incurred, so that's why margins are low. Is my understanding correct? And it's corresponding because, you know, our accounting is based on expenditure basis. So already I have considered in our cost as well as in our revenue to the extent the margin, what are the... Our EBITDA margins are there, we have to, in revenue also consider, expenditure also consider, but because these are subcontractor expenses, we won't get that 13%-14% EBITDA in that. Generally, subcontractor, back to a contractor will have around say 3%-4% margin. So that margin only has been built up in the financial. Okay. Sure, sir. And just a few bookkeeping questions. So, you know, if you can help me with your standalone debt and cash levels, the segmental revenue split and CapEx that we did in the third quarter? The standalone debt is zero, actually, and there is a cash surplus as of December of INR 80 crores in their, on the standalone basis. The CapEx in Q3 and the revenue, segmental revenue split? We have only one segment actually. So we are not, so we have only one segment. So what are the revenues there? That is only from the one segment. And as far as CapEx is concerned, we added just actually, actually INR 5 crore from the CapEx, actually, in this year ahead. Okay. So I was wondering, like, now the total revenue, how much is from the road HAM projects, EPC, irrigation? So if you can give that split for the third quarter. Yes, yes. Okay, okay. That percentage there in HAM, it is 27-28%. And irrigation is around 17%, and back-to-back is around 33%. And our own execution is around 20%. Okay. Sure, sir. That's it from my side. All right. Thank you then. Thank you. Our next question is from the line of Dheeraj Kruplani from Avendus Spark. Please go ahead. Hello, am I audible? Very much. Hello. Yeah, you're audible. Yeah. Yeah. So my question is follow-up on one of the previous questions. Like you said, YTD FY 2026, we have secured INR 4,300 crore of orders. And like you said, up to March, then 63 bids or more to come from NHAI. So can we expect some additional order inflows in 4Q? And what will be our target for FY 2026, FY 2027 order inflows? Definitely, actually, because this quarter we are expecting more of the bid from NHAI. So definitely we are targeting to guide actually some of the order in Q4 with NHAI. We have listed like Odisha and project we have bid actually INR 5,000 crore. So definitely it is a target actually we want to add something. In total, around INR 10,000-INR 12,000 crore we are targeting by September 26th actually. We should be able to get actually further order inflow of around INR 10,000-INR 12,000 crore by September 26th. So these are the target, and towards that target almost seven to eight thousand crore we already bid, and we already identified INR 30,000-INR 40,000 crore actually, order that we are going to bid. So that's why we are working on that, and hope. Okay. Okay, thanks. Thank you. Our next question is from the line of Shravan Shah from Dolat Capital. Please go ahead. Uh, hi. Yeah. Sir, just a clarification. The further equity that to be invested, you said INR 235 crore, but, given the whatever the adjustment that, or the rather lower equity for the four that we are selling, it should be INR 107 crore that we should be putting additionally. That's why I told out of this, revised equity, out of 962, we already put INR 7 crore. Left out is only INR 233 crore of equity in our future HAM projects. So it, Okay. I will have a word with you on that. Right. This entire INR 1,543 crore, how much out of that we are likely to receive as a cash by March? Well, we actually passed two projects, that is Palani and this Ramagiri, actually. That we are planning to complete, because we already had applied to the banks for NOC and to the NHAI also, and we are expecting that we should be able to close it. We are targeting to close Palani and Ramagiri. That put together is coming to around INR 500 crore actually, by this March end, and balance with Ramanathapuram and Guruvayur in first quarter of the next year. That is our target, actually, to complete that. Okay, okay. And then the CapEx for this mining that we've got, so, when we will be doing the CapEx for that? Definitely, as you told us, there is still forest clearance has not come. So based on that, maybe in next year, end of the year, maybe we have to do the some CapEx in that line. When we see that there is a feasible front is available to execute, accordingly we will make up the required CapEx. So we expect that somewhere in Q4 of the next year, we may able to take some CapEx in that project. Total CapEx on that project is INR 350- odd crore, if I'm not wrong. Yeah, yeah. Tentatively, yeah, INR 350 crore, yeah. Okay. So some we will do in Q4, FY 2027, and the balance will be in FY 2028. Yeah, yeah. Okay, yeah. Okay, okay, okay. Got it, sir. Thank you. Thank you. Our next question is from the line of Vaibhav Shah from JM Financial. Please go ahead. Sir, you indicated that in the Kerala project, the cost which we have to bear of, via the construction, it would be roughly INR 14 crore-INR 15 crore odd in Q4 as well? Yeah, yeah, definitely. For Q4 is left out as on INR 15 crore, so that we have been included. Yeah. So that will come in Q4? That will come in Q4. Okay. So secondly, for the pipeline order, what revenue are we targeting for FY 2027? FY 27, we are targeting around INR 400 crore. INR 400-INR 450 crore on that project. ... as it is completed in FY 2028? Balance will be in FY 28. Okay. And sir, for the two new orders which we got, the two EPC projects, INR 450 and INR 300, what is the timeline for those two orders? One was 24 months, the Mir Alam Bridge. What about the second order? Both are on 24 months only. That should be completed by FY 2028, both of them? Both are going to complete FY 28, yeah. When do we expect to start the execution on them? Mir Alam, sir? Mir Alam is going to start already. It is started, work is started. Mobilization. Yes, mobilization is going on and the piling, piling work is also started. But actually there is a change in design because of the water is complete in the pond. So there is some change of design which we have submitted, and that is approved. So, detailed design on the basis of that need to be approved. Actually, in principle, the changes were approved, so detailed design need to be made and then, it could be got approved. So for two foundations, we have started the work actually, where there is some clarity. The other project? Other project is started, sir. Not going on there. There is some tree cutting problems are there, but they are solving and then- Okay. Sir, for the two irrigation projects, the total around INR 430 crore value, so when do we expect to start the work on both of them? It was quite a bit delayed. Yeah, it may be in because there was land acquisition was there. So maybe in Q1 of next year it will start. We can do roughly 30%-odd in a year, because they were 24-month projects, both of them. So then definitely land is available, but that year definitely we can do it, yeah, around 30%-40% in the first year. Okay. And sir, we have seen some uptick in revenue for the 2 Karnataka HAM projects, Package 4 and Package 5. So combined, what revenue would be expecting for 2027 from those two projects? Those two projects is around, maybe around, you can say INR 4, around. Well, actually, because we have to, maybe around, INR 500 crores actually. Around INR 500 crores on both the projects. So then the land issues are sorted in the both of them right now? In one project, land issue was there, one project is okay, that we can assure. So that's why we consider around 50% of the balance, that is around INR 450 crores, we can do it, INR 400-INR 500 crores. Okay. Okay. Thank you, sir. Those were my questions. Yeah, you're welcome. Thank you. Next, we have a follow-up question from Niteen S. Dharmawat from Aurum Capital. Please go ahead. Yeah, thank you. So just wanted to know what is the receivable amount now from the Telangana projects that we had earlier? So, and what is the, you know, recovery cycle we'll be having over here? This Telangana is out of INR 870 crore of receivables, around INR 677 crore receivables is from the government of Telangana, that is for the Package 4. If we consider unbilled also, so total around INR 1,430 crore is there from irrigation actually, from Irrigation Department from government of Telangana. What is the- Collection. Yeah, yes. Go ahead. As far as collection is concerned, actually, as I told that we are trying to put a few pressure. So we are expecting some part of collection in the very end of the March, actually, some part out of this INR 677 crore. So that's why we are putting a lot of pressure actually. That's why, that's, that's why we are working towards that. So how much we are expecting, almost 50% or, less than that? If we can have some guesstimate over there. Some, maybe around 50% we are expecting. 50% of the certified bill. What are the certified bills are there? Around INR 677 crore. We are expecting some around 50% in them. Got it. Got it. We have not filed any case, for this, right? We are still negotiating with the government only. No, case is already filed. Okay. And parallelly, we are putting pressure also. Got it, sir. Okay. Thank you, sir. Yeah, you're welcome. Thank you. As there are no further questions, I would now like to hand the conference over to management for closing comments. Yes. Oh, thank you all for joining us on this call. Please reach out to our investor relations and certain Strategic Growth Advisors or us directly, should we have any further queries. We can now close the call. Thank you. Thank you, sir. On behalf of KNR Constructions Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.