Ladies and gentlemen, good day and welcome to Rail Vikas Nigam Limited Q1 FY 2026 earnings call, hosted by Antique Stock Broking. Please note that this call will end at 3:40 P.M. Indian Standard Time. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vishal Periwal from Antique Stock Broking. Thank you, and over to you, sir. Yeah, thanks. And good afternoon, everyone. And apologies for the slight delay in the start of the call. So I welcome you all for the Quarter 1 FY 2026 post-result earnings call of Rail Vikas Nigam Limited. The dais for this call is led by a management team of RVNL, starting with Mr. Pradeep Gaur ji, who is the Chairman and Managing Director, Mrs. Anupam Ban ji, who is the Director Personnel, Mr. N.P. Singh ji, Director Operations, and accompanied by Mr. Chandan Kumar Verma ji, who is the Chief Financial Officer. So as usual, we'll have a brief from the management, and then we'll have lines open for Q&A. Thank you, and over to you, sir. Thank you so much. And it's a pleasure to interact with the investors. So I think without much ado, we will take the call because time is limited. So we are ready to answer all the queries from the investors. Hello, Mr. Vishal? Hello. Yes, sir. Should we go ahead with the questions? Yeah, yeah. Please go ahead because we are constrained for time today. So we can go ahead. All right. We will 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 will wait for a moment while the question queue assembles. Ladies and gentlemen, if you wish to ask a question, you may press star and one on your touch-tone telephone. The first question is from the line of Mr. Vishal from Antique Stock Broking. Please go ahead, sir. Yes, sir. I think the result got posted sometime back. So I think maybe that's the reason people are just absorbing the result. So if I can ask a few questions, sir, can you share a couple of updates in terms of what has been the order inflow last quarter, how we have closed the order book, anything that can be provided? Good afternoon. In this particular quarter, there has been some order inflows from civil engineering and electrical engineering. The total orders this quarter is roughly of value INR 1,000 crores. And total contracts which are now organized as one stands at around 96 contracts. Of the residual value of the contracts which we have won through open bidding is around INR 60,500 crores. And coupled with our orders which are our legacy railway projects, that is around INR 41,000 crores. So roughly the order book of RVNL is one lakh crores, which is handy meters. Right, sir. In terms of also that usually we do provide the split of this order book, anything on sector-wise, how this is panning out, anything that can be provided? Yeah. Yeah. Yeah. Our order book is spread out on various sectors. The orders which are we having from the civil engineering contracts, which is from the railways, highways, metros, the orders are around 26,000 crores. Orders which are from the electrical is around 10,900 crores. And orders from signaling and telecom is of value total is around 14,700 crores. In civil engineering part, our orders are in metro sector of roughly around 10,000 crores. The highway sector is around 9,000. And the miscellaneous sector, which includes traditional railways, irrigation, etc., is around 7,000 crores. And electrical is spread over the overhead electrification, that is 2x25 kV conversion in railways. Then RDSS, that is a distribution system of the state transports, is a major component. And the transmission line is also comprised of the major segment. Other than that, in signaling sector, we have got some of the railway contracts for automatic signaling or to modernization form of Kavach system. A major content of Vande Bharat, in which the capital cost is around 6,000. BharatNet 6,800. Considering the complete O&M cost is spread over 10 years period, it will be around 13,000 crores. We have got a significant order of Vande Bharat manufacturing also, of which the capital cost is 8,640 crores. That is the RVNL share in the JV. That is the roughly breakup of the different sectoral orders with the railways. RVNL. Got it, sir. Got it. And in terms of our revenue profile earlier at the end of financial year 25, we were hinting at we can clock revenue growth in the range of 10%. So given, I think, what I have seen that the first quarter has been a bit of muted for us and also for the industry. So how do you see this growth number panning out for us for the full year? Actually, let me say it. I think the situation is very much in control because, of course, as expected, the proportion of turnover from railways is coming down. It is in the range of almost 25% down. But kindly appreciate that turnover from bidding has increased by three times. So now this sort of balancing will happen because the turnover from railways will continuously slide. But it will be compensated by increase in turnover from bidding projects. So I'm sure that because overall, now it is - 3.42% as of first quarter. But now, I mean, I can share it that present we have gone beyond, I mean, gone more than the last year as we stand today. So things will change and things will rise again. This turnover will be not only able to match last year, we will increase it also. Okay, okay. That's heartening to hear that, sir. And even particularly on the margin front, I think we are noticing there has been a bit of pressure on the margins for this quarter. So is it fair to say it's primarily a couple of line items, like other expenses, they have increased? And even, I mean, the other line item particularly increased, which you have seen. So that is more to do with the competitive bid projects. They are entering into revenue recognition. So their margins are a bit lower. Anything that can be provided to explain the margin dip, sir? Actually, when you see the gross margin, there is a slight dip in the gross margin by roughly 13.57%. It is due to mainly the income from MOR has decreased. But the income from projects from bidding has increased by 67%. And net margin decreased. There is a reason for that because some of the onerous contracts where some loss has been recognized. They have been accounted for. And in BharatNet project, there were some pre-bid expenses. They were also accounted for roughly value of INR 20 crore and INR 40 crore due to the onerous cost. INR 60 crore has gone into, which has decreased our PBT, and which ultimately resulted in decrease in PAT. Sorry, sir, I just missed on that. So 60 crore, what was the nature of that? Sorry, I missed. Yeah. Chandan, I'll explain. Basically, there is a one-time expenditure in the BharatNet project, in which we have done one consultancy work, pre-bid consultancy work for the bidding survey and bidding all that thing. This is a one-time expenditure, which has been booked in indirect expenditure. Further, a few commercial decisions maybe it's too early because in most of the bidding projects, the projects we have taken on the grant basis, expenditure is just started booking in these projects. That's why there may be we have not the final picture. This is not the final picture. We anticipate that there may be some losses at the end of the project. But in due course, we are doing the value addition. We have some change of the scope, which we have to get sanction on the plan. After that, the picture will improve. But right now, yes, we have recognized the three new projects, which are on the sponsor in this quarter. Okay, okay. Sure, sir. I have a few more questions. I'll come back in the queue, sir. Thank you. Participants, if you wish to ask a question, you may press star and one on your touch-tone telephone. I repeat, participants, if you wish to ask a question, you may press star and one on your touch-tone telephone. We'll wait for a moment while the question queue assembles. The next question is from the line of Mr. Rajesh Agarwal from Moneyore. Please go ahead, sir. Hello. Sir, on account of BharatNet onerous order, how much losses extra you have booked? Please repeat your question. On account of BharatNet order, how much extra expenses you have booked without commensurate revenue? 20 crore. Around approximately INR 20 crore. Approximately 20 crore. And any other one- off is there? No. And, sir. Kindly. Hello? Kindly repeat. Kindly repeat. Any other one-off expenses are there? No. No other one-off expenses. No such other expenses are there. Okay. And you feel as of second quarter, the revenue mix will start improving? Yes. We are quite hopeful. It's already the green shoots are visible. And in this quarter, we expect to cover the substantial ground. And we hope that our revenue will match last year's revenue to the second quarter cumulatively. No, no. We are already ahead now. As of today, we are already ahead in revenue compared to the last year. So definitely, we are making it up by projects taken on bidding. So revenue-wise, absolutely no issue. We will be exceeding the last year's revenue. Margins, sir? Margins of the bidding? Margins, there is a slight dip there. There is a dip in the margin. That is based on. I will request Mr. Chandan Verma to stay on this. Actually, in bidding projects, booking has just started. Most of the projects, we have just started executing the work. So no doubt, it's very early to say that. But margins will improve once the work will start in full swing. And change of the scope, there are too many claims out there to be got sanctioned from the plan. Once these claims will be settled, the margins will improve. Okay. Understood. Thank you, sir. And for JVs, sir, for JV, when the profitability from the JVs will come? Other railway JVs? Yes. Kutch Railway and all? Kutch Railway, basically, Krishnapatnam, this year, they have shown profit for the first time. And in other JVs also, the traffic has improved. So we are hopeful that this year will get dividend. SPRCL has already given a dividend. SPRCL has already given a dividend. Even two SPV has given dividend this year so we are hopeful that with the improvement in traffic, more dividend will come to. The traffic will increase. And obviously, their liabilities is also going down. The cost of the capital which they have taken a loan for. Okay. And, sir, Vande project is on schedule now? Which project? Vande Bharat with the JV. Yeah. Vande Bharat is, yes, all the roadblocks have been cleared, and now it is in advanced design stage, and production has started in Latur factory, and we hope to see the first prototype in June 2026. After that, trial, the regular production will start. Actually, background, you must be aware of it because railways wanted to change the configuration and all that. But that has led to 10 months delay. And railways have increased the time also by 10 months. Okay. Understood, sir. Thank you. Thank you, sir. Thanks a lot. Thank you. Participants, if you wish to ask a question, you may press star and one on your touch-tone telephone. I repeat, if you wish to ask a question, you may press star and one on your touch-tone telephone. We will wait for a moment while the question queue assembles. The next question is from the line of Mr. Vishal from Antique Stock Broking. Please go ahead, sir. Yes, sir. Thanks for the opportunity again. Sir, on Vande Bharat, I think you did mention that June 2026 is first prototype, so how exactly things work after that? I mean, when we start recognizing revenue, how much time it takes from prototype to actually commercially rolling out, so can you give some background of this? Yeah. As we expect the first prototype to roll out by next June, revenue will also start flowing out. As per the contract condition, 90% of the cost of the train set will be given on production of prototype. After its successful trial, balance 10% will also be released as revenue. Once the trials are successful and proving trials are held and the prototype is cleared for regular production, the regular production will start. In the next financial year, that is financial year 2026-2027, along with the prototype, we expect to see the regular production of the train sets also. I'll just add to what Mr. N.P. Singh has mentioned that this trial normally takes 60 days. And the positive part is we are following only ICF design. Because this is basically the design, whatever already trains are running, except difference is the existing trains are chair cars. And this will be sleeper, I mean, sleeper coaches. So there is a slight change in configuration. But by and large, the same ICF design is being followed. So we expect that this trials should not take much issues because it is again ICF design. And as soon as this thing, what I should say, as soon as these trials are over, and I must give the comfort that we have already ordered for spare, I mean, these components and all for 10 sets immediately. So immediately, the production will start. I'm quite sure in financial year 2025, 2026, maybe 2026, 2027, we can expect revenue of at least 6- 8 Vande Bharat trains. Two prototypes and just regular production trains. Even these two prototypes will become part of that 120 train sets what we are going to deliver. Got it, sir. Got it. Got it. Then this 120 train sets, this order will get concluded by when? I mean, 2027 is maybe 6- 8 train sets. 2032. 2032. Five years in total. There's a break-up of year-wise. Right, sir. So we are geared up for that. But once it is just, I mean, our original target for September 2025 to, I mean, roll out the first prototype. But unfortunately, with 10 months, what has this thing delayed the whole thing? So that's why it is now June 2026. And definitely, in the financial year 2026, 2027, it's certain things will start in right earnest. Got it, sir. And then I think earlier, we used to hear that this 120 train sets and plus a couple of tiers also got 80-odd train sets. This 200 train sets, this pie is almost like 500-1,000-odd train sets. So anything that are more orders are coming or anything that can be shared as of now for Vande Bharat? I don't think any tenders are now as of now in the pipeline, because there were some tenders about aluminum producers and all that, but that could not be finalized, so I think presently, this 200 train sets is what it is in the pipeline. 200 train sets by the quantities, and ICF, when RCF will be producing their railway production unit, they will continue to produce the train sets. And then so we have this ICF. We are mapped to ICF. So for the 80 train set, Titagarh are mapped to other coach factories, is it? No. 80 train set is awarded to the other bidder consortium. That is BHEL and Titagarh Wagons. So they will be contract matching to our basically train set rates. So they will be producing 80 train sets in their manufacturing facility. Okay. Okay. And then both the things will go parallelly. Prototype, when we are doing, they are also doing prototype. They are entering into commercial. Yes. We are also. Okay. Yes. Yes. Because they will be doing their own engineering and other things. But both of them will be on the basic ICF platform only. ICF. Okay. Got it, sir. And they will be manufacturing the train sets in ICF only. Like we are going to do it in Latur, they will manufacture it in ICF. Okay. Got it. And then, sir, any developments that is happening for a couple of JVs that we have found? Any business traction that are we seeing? Anything? Or as of now, they are still at MOU stage and more like a prelim discussion that usually happens before any business pickups. So it is at that stage only. Is that fair to say? Or any updates that can be provided? You are talking about the MOUs which are being entered? Yes. Yes, sir. So we have entered into a couple of MOUs. And we are seeing good potential coming from it. Like in maintenance of the rolling stock and engines, Indian Railways has come up with some of the bids also for maintenance of the electrical engines at two workshops. So we have already formed an MOU with the two companies. And we hope to compete in those projects. Simultaneously, in the nuclear sector also with the Rosatom, we have entered into MOU. And we have given a proposal to the Ministry of Railways also to that is an upcoming sector. And with the government of India's focus on nuclear power in a big way, we hope to gain certain business from that sector also. And the solar sector also, we are with our success in JV in Uzbekistan and Saudi Arabia. We hope to continue with the momentum in the solar projects also. Armenia. And. Right. In Armenia, we are bidding. Armenia. Solar. And. Same Jakson. With the Jakson, with whom we had a project completed in Uzbekistan and an ongoing project in Saudi Arabia. In Romania, we are going for some solar projects. That will be almost 800 MW. So this MOU and JV partnership, we are expanding it further to go to Europe now. Okay. Maybe one last question from my side, sir. As of now, what is the international order book pie in our 1 lakh crore order book? Which pie? International. International. Probably around INR 4,000 crore. Okay. Okay. International. But let me add, we have already bid in the present year itself around 10,000 crores. We have bid. And another 6,000 crores is in pipeline. We are expecting to bid almost 30,000- 35,000 crores of projects this year only overseas. So even if the strike rate is around 15%-20%, we hope that this order book will increase now. Because this is one of the main areas of focus which we are really, I mean, really going all out to get some good orders abroad. Okay. Got it. And then, sir, I know, I mean, like a couple of procurements and everything that has been done for Vande Bharat, it's still some time to actually physically or commercially roll out. So as of now, I mean, what sort of margin that you are seeing that one can make for, I mean, RVNL can make in Vande Bharat? Maybe single digit, high single digit, low double digit, or anything? The cost has been bid based on working the cost. And I mean, what I will add that most of the supply chain is established supply chain with which we are already supplying to ICF. So mostly, we have gone by the same order. So I think there is nothing, I mean, nothing I should say. Nothing notable. Nothing extraordinary happening as of now. So I think it is going in the direction at which we had planned. Because in this case of ICF design, we are ordering to the same supply chain, except for one or two things where it is abroad. One or two issues were there about sanctions, etc. But those have also been overcome. Sure, sir. I think I've taken good. Nothing extraordinary. Nothing extraordinary, neither on positive side nor on negative side. Sure, sir. Sure, sir. And thank you, sir. I'll come back in the queue. Yeah. Thank you. Ladies and gentlemen, in the interest of time, that was the last question. On behalf of Rail Vikas Nigam Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you so much. Thank you, sir. Thank you. Thank you.