Ahluwalia Contracts (India) Ltd

NSE:AHLUCONT

Q2-2026 Earnings Call

[Operator]

Ladies and gentlemen, good day, and welcome to the Ahluwalia Contracts Limited India Q2 FY '26 Earnings Conference Call hosted by AMBIT Capital Private Limited. [Operator Instructions] please note that this conference is being recorded. I now hand the conference over to Mr. Sudhir Vora from AMBIT Capital Private Limited. Thank you, and over to you, sir.

[Sudhir Vora, analyst]

Good day to all. And on behalf of AMBIT Capital, I thank the management of Ahluwalia Contracts India Limited for the opportunity to host your Q2 FY '26 earnings call. We have the following members of the management with us today: Mr. Shobhit Uppal, Deputy Managing Director; Mr. Vikas Ahluwalia, Director; Mr. Satbeer Singh, Chief Financial Officer. I will now hand over the call to Mr. Shobhit to walk us through the quarter. Thank you all, and over to you, sir.

[Shobhit Uppal, executive]

Thank you so much. Good afternoon, everybody. Ahluwalia Contracts India Limited has announced financial results for Q2 FY '26. During Q2 FY '26, the company has achieved a turnover of INR 1,177.30 crores and a PAT of INR 79.45 crores in comparison to a turnover of INR 1,011.48 crores and a PAT of INR 38.36 crores in Q2 FY '25. The company has registered a growth of 16.39% and 106.07% in turnover and PAT respectively, during Q2 FY '26 in comparison to Q2 FY '25. EPS of the company for Q2 FY '26 is INR 11.80 as compared to INR 5.73 in Q2 FY '25.

During Q2 FY '26, the company's EBITDA margin is 10.92% as compared to 7.25% and a PAT margin 6.63% as compared to 3.75% in the corresponding period. During the H1 FY '26, the company has achieved a turnover of INR 2,182.18 crores and a PAT of INR 130.16 crores in comparison to a turnover of INR 1,930.83 crores and a PAT of INR 68.96 crores in H1 of FY '25. EPS of the company for H1 FY '26 is INR 19.43 as compared to INR 10.29 in H1 FY '25. During H1 FY '26, the company's EBITDA margin is 9.85% as compared to 6.93% and a PAT margin of 5.88% as compared to 3.53% in the corresponding period of the last financial year. Net order book of the company as on 30th September 2025 is INR 18,057.60 crores to be executed in the next 2.5 years. Total order inflow during FY '26 is INR 4,521.06 crores. At present, we are L1 in 2 projects aggregating INR 1,620 crores. Thank you. Over to you for questions.

[Operator]

[Operator Instructions] The first question is from the line of Shravan Shah from Dolat Capital.

[Shravan Shah, analyst]

And congratulations on good margins sir, specifically. A couple of questions, sir. First, this L11620 is the same of Bhubaneswar University and MIDC of Mumbai because it was INR 1,800 crores last time.

[Shobhit Uppal, executive]

No, MIDC tender has since been canceled. OUTR Bhubaneswar Unity 1620 OUTR about INR 1,000 crores and about INR 570 crores or thereabouts is RML Hospital in Delhi...

[Shravan Shah, analyst]

Okay. Got it. So now given that in 1H upon execution, we have done for full year [Technical Difficulty] given if I include the L1 INR 6,000 crores kind of inflow is at so meaning 4.5 months to more order inflow are we looking at?

[Shobhit Uppal, executive]

So our target was, as I had explained last time, similar to last year, about INR 8,000 crores. We are confident that, that is where we'll end up at around that figure.

[Shravan Shah, analyst]

Okay. And in terms of revenue for full year, how much we can look at now?

[Shobhit Uppal, executive]

I've given you a projection of 15% to 20%, we are maintaining that.

[Shravan Shah, analyst]

That range in the second half actually leads to a decent 17% to 26% kind of a growth. So that's what wanted maybe a narrow range.

[Shobhit Uppal, executive]

Look, H2 traditionally is more remunerative both in terms of revenue as well as consequently in terms of our earnings. So I think we are going to maintain that -- it's not possible as you know, [Foreign Language] that is -- there is a degree of uncertainty there. And today, since approximately 40% of our order book comes from NCR, that is a factor which will hit, but we are confident of our earlier projections being met. There are 2 projections that I've given during the last call, which is 15% to 20% top line growth and double-digit EBITDA margins. We are well on our way to get there.

[Shravan Shah, analyst]

Yes. So that's what I wanted to ask this NCR ban in terms of last time also, it got impacted. So how severe it is and how much it -- obviously, it is difficult to predict how long it will continue and how it will impact, but still [Technical Difficulty]

[Shobhit Uppal, executive]

So you see, we feel that there are some measures which have been taken both by clients and us to mitigate the impact because both are -- the entire ecosystem is impacted when the work is shut down totally. So this time, the labor is not being allowed to go back to their native place. In fact, labor is post elections in Bihar and the results, labor has started coming back. Even when there is no work, the clients have agreed to pay them even when they are on site. So as and when the work restarts, the time will not be wasted for getting the labor back from their native place or other locations. So we feel the impact this time around should be lesser.

[Shravan Shah, analyst]

Okay. And the margin now can we see a 10.5% kind of a margin going forward or maybe 11% going forward as [indiscernible].

[Shobhit Uppal, executive]

Shravan, I am sticking my neck out and staying and saying that we will maintain what I had projected last time. And we've done that. We are almost -- for this quarter, we've crossed 10%. We are nearly at 11%, and we are nearly at 10% for H1. So I think overall, it will be more than double digit. Let me just say that for the entire year.

[Shravan Shah, analyst]

And now sir, private sector wise is close to a 6% to 9% in order book, we wanted a 60-odd percent. So how do we see -- so now going forward, we would be more on government orders? And do we see competition there?

[Shobhit Uppal, executive]

Yes. At the moment, there is a lot of competition. So our focus by design only has been on private sector. But in the long run, 60-40 we see now with NDA coming with more majority, even stronger in Bihar, we see development picking up there. We now see development again picking up in states like Assam. We see some private sector development. We bid for a couple of IT campuses in Bengal. So we see all round -- well-rounded development happening both across public and private sector in states in which we are already present. So going forward, that's why I said [Foreign Language ] new order inflow, I don't see a challenge in meeting that. They will drive our earnings going forward, continue to drive.

[Shravan Shah, analyst]

True, true. So next year onwards also, can we see the similar 8-odd thousand crores kind of order inflow and 15% plus kind of revenue growth?

[Shobhit Uppal, executive]

I think so. I think so. I don't -- there is no -- I don't think there is going to be any slowdown. There is no slowdown on the horizon. At the moment, actually, to sort of give you a correct picture on the private sector side, we are actually refusing work every month because we don't want the ratio to be skewed too much. I don't see a challenge in maintaining the growth of 15% to 20% even next year.

[Shravan Shah, analyst]

Got it. Sir, this quarter, the employee cost has jumped up significantly, INR 121-odd crores versus Q1, it was INR 90-odd crores. So anything specific from third quarter, how one can look at the staff cost on a quarterly basis?

[Shobhit Uppal, executive]

So this will -- in H2, this will taper off slightly. This quarter, it has gone up because we have declared increments and paid arrear because our increment we put -- they start from the calendar year, which is 1st January. This time, we got delayed in implementing -- we were studying, doing our due diligence of what's happening in the industry. So we paid the arrears in this quarter, Q2. That is why this figure is higher. As our high volume projects, value projects, sorry, start like Dahlias and Downtown, they pick up steam. This figure will come down slightly.

[Operator]

[Operator Instructions] The next question is from the line of Mahesh Patil from ICICI Securities.

[Mahesh Patil, analyst]

Congrats on a very good set of results. First question is on the pipeline, sir. What is the bid pipeline currently? If you can quantify where the bids are open and where you expect it to open for next 5, 6 months?

[Shobhit Uppal, executive]

So the bids which have opened in which we are L1 that I mentioned in response to Shravan's question, OUTR in Bhubaneswar and Ram Manohar Lohia Hospital in Delhi. As far as the order pipeline is concerned, at the moment, it is about INR 6,500 crores. I would not like to give out the names of the projects that are under bidding at the moment, but it is -- let me say, it's a healthy mix of private and government sector projects...

[Mahesh Patil, analyst]

Okay, sir. And sir, just one clarification. The figure that is mentioned in the PPT in terms of order inflow around INR 4,374 crores, this is still YTD or this is for H1?

[Shobhit Uppal, executive]

This is till date.

[Mahesh Patil, analyst]

And sir, what will be the figure for H1?

[Shobhit Uppal, executive]

H1, I think -- in the last month or so, we have not got any new orders. This is -- basically it's H1 and YTD is same.

[Operator]

The next question is from the line of Lakshminarayanan from Tunga Capital Investments.

[Lakshminarayanan K G, analyst]

I have one question. See, as we are becoming larger, and I believe in the next couple of years, we'll be 2x or even more. I want to see -- want to understand how are you building up for scale in terms of either leadership -- I mean, not leadership alone, but in terms of systems and how do you ensure that we are able to deliver at scale as we become much, much larger?

[Shobhit Uppal, executive]

So primarily, if I understand your question correctly, you're talking about us scaling up in terms of staffing, in terms of...

[Lakshminarayanan K G, analyst]

Yes. I mean we are looking at for a much larger order book, right? And as we become bigger, we'll have a different set of challenges. It could be exponentially higher. For example, getting the engineering talent or getting -- ensuring that the cash flows are managed, the systems are done. I just want to understand how are you thinking about that aspect if at all, that is a thing that you are actually spending a lot of time.

[Shobhit Uppal, executive]

No, no, it's a valid question. But I think we have started preparing for this a few years ago or 2, 3 years ago. One -- and we've mentioned this in -- both me and Vikas have mentioned this in our interactions with all of you either one-to-one or during investor calls, the company a couple of years ago, embarked on a digitization drive, and it's an ambitious drive, which is helmed by Vikas himself. And as a step 1, we have implemented SAP. PwC has done that for us. We've gone live. The process or this is being refined continuously as we speak. And this is the first step. We've -- the use of IT tools, be it tools developed by Autodesk, virtual modeling, digital twins, financial software. This is something that the company is doing very, very aggressively. And as I said, this is an ongoing process. Secondly, all of you know, we have -- we are heavily -- our CapEx has increased. We are heavily investing into machinery, getting in new machinery from outside, getting in new shuttering systems so that our efficacy...

[Lakshminarayanan K G, analyst]

May I ask you what kind of machinery you are actually spending on?

[Shobhit Uppal, executive]

So this is -- a lot of projects that we are doing now are going up vertically. They are high-rise buildings, right? So we are investing in heavy-duty machinery. Traditional cranes has given way to heavier cranes where these cranes can be used not only to do RCC buildings, but also to do structural steel buildings. A lot of buildings that we are doing now have pre-engineered -- are designed using pre-engineered techniques or using structural steel. So we are importing heavy-duty cranes. We are using larger and larger batching plants so that we can make higher -- and these are all electronic batching plants so that we can make higher grades of concrete captively because all these buildings, high-rise buildings now using traditionally, the highest grade of concrete, which was used 5 years ago is M30 to give you -- to put things in context.

Now we're manufacturing our own grade going up to M80, right? So that is why we are using more and more sophisticated machinery. Then the CapEx is also towards using more refined shuttering systems or system shuttering, so to say so that we can mitigate the skill shortage in terms of carpenters. We're using machinery, CNC machines to do bar cutting or fabrication of reinforcement steel. So these are some of the measures.

And then as far as the other aspect of skill shortage, which is tough, Ahluwalia over the last few years, even prior to COVID has been investing in fresh talent. We go to campuses every year, barring the 2 or 3 years where COVID had impacted the industry, we recruit 50 to 60 fresh engineers and we train them. So our investment in training is going up now. So these are a slew of measures that we've taken to sort of prepare for the growth, which is on the anvil.

[Lakshminarayanan K G, analyst]

For example, since you have so many parallel running projects, do you have a visibility of whether your procurement is actually optimized. So for example, you may be buying a lot of scaffolding. There will be -- in some places, there will be inventory shortage, some places you may be using more. Is that something which you actually are able to track now given the digitization exactly on a daily basis, what is the planned target, what is an achieved target? Is your procurement getting centralized? I mean all those things, I'm just trying to understand. And on the journey of 1 to 10 -- I mean, on a journey of 1 to 10 in your own assessment, where are we? And when do you think we would be in a much comfortable position, again, as per your own aspiration?

[Shobhit Uppal, executive]

So let me answer the easier bit first. On a journey of 1 to 10, I think we would be at 4 if I was honest. Having said that, we've always, say, over the last 10 years or so, we've used some homegrown software that has sort of helped us keep in touch with what has been happening at the ground as we multiplied our geographical locations. Now that is why we're using more and more tried and tested software now. SAP, I gave you an example. We're using tools like Power BI now that SAP is operational or we've gone live to provide various kinds of dashboards to people at different levels of hierarchy in the company.

So while it would be -- I don't think it's a mix if anybody says or it's a fallacy, if anybody says that decisions are based anywhere in the world on a daily basis based on a set of figures, that's not happening anywhere. But yes, from doing a due diligence every quarter, I think the top management of the company is now looking at dashboards on a monthly basis. And our intuition is coupled with more accurate or hygienic data, which is coming to us or flowing to the top management, which is helping us take decisions even for projects where we are unable to sort of hit the ground ourselves.

[Operator]

The next question is from the line of Vaibhav Shah from JM Financial.

[Vaibhav Shah, analyst]

Sir, firstly, on any update on Gems & Jewelry project?

[Shobhit Uppal, executive]

Vikas, would you like to answer that?

[Vikas Ahluwalia, executive]

Yes. So we have received the environmental clearance on the project. And some ground clearance and exploration work is being done, but that is in the scope of the client. So while that is happening, we have now started with the engineering side of it, design and other things. So I think another 2 months' time, some work should start on ground.

[Vaibhav Shah, analyst]

Okay. So any guidance on how much revenue are we targeting for FY '27? I believe '26 would not be much of a revenue on account of the initial work going on.

[Vikas Ahluwalia, executive]

So for the total book order value, the first year is usually where things take shape. So maybe about 30%, 35% of the order value.

[Vaibhav Shah, analyst]

In FY '27?

[Vikas Ahluwalia, executive]

Yes.

[Vaibhav Shah, analyst]

Okay. Sir, secondly, on the working capital side, are you facing any challenge in any of the states? Or is it smooth across?

[Vikas Ahluwalia, executive]

No, I don't think there is anything untoward to sort of report as far as the working capital challenge is concerned in many of the.

[Vaibhav Shah, analyst]

Maybe these are improved in the next quarter. Already working capital has been improved in this quarter versus 87 days approximately from 95 days...

[Shobhit Uppal, executive]

There is only one challenge, which is on a broader this thing, I don't think it's something which is very challenging, but some money is stuck up in Maharashtra and Assam on account of GST revisions. That's a statutory increase. It's just a matter of time when it will come.

[Vaibhav Shah, analyst]

But not sizable.

[Shobhit Uppal, executive]

It's around INR 70 crores.

[Vaibhav Shah, analyst]

Okay. Sir, secondly, on CST junction redevelopment, we have seen improved execution in the second quarter. So going forward, we should maintain this run rate in the second half? And how do you see '27 shaping up?

[Vikas Ahluwalia, executive]

Now finally things have started to move. The design is finally getting closed, and we started the first round of work above the track also. Up till now, we were not doing work above the track and the greenfield buildings they are now -- the biggest one is now out of the ground and it's now -- the progress is now better. We are expanding our structural steel fabrication capacity also, we are doubling it now in the next 2, 3 months. Now the clearances have come. So now it makes sense to expand.

[Vaibhav Shah, analyst]

Okay. Sir, any revenue guidance for '26 and '27 from the project?

[Vikas Ahluwalia, executive]

Pardon.

[Vaibhav Shah, analyst]

Revenue guidance for the project in '26 and '27?

[Vikas Ahluwalia, executive]

About 40% of the order book or the order value.

[Vaibhav Shah, analyst]

In '27?

[Vikas Ahluwalia, executive]

Yes.

[Vaibhav Shah, analyst]

Okay. And sir, lastly, any challenge we are facing on the labor side?

[Shobhit Uppal, executive]

Yes, yes, labor is a continuous challenge. It is the biggest challenge that we are facing. It's -- in addition to the labor, there being a skill shortage, there is also an impact on account of events such as festivals such as Diwali, Chhath and then elections now, which just got over in Bihar. En masse, a lot of skilled workforce has gone to Bihar, especially this year because of implementation of SIR. So yes, that challenge is there. That's why I mentioned in response to Shravan's question, the first question that was asked, that we are trying to reduce our dependency on labor or mitigate this problem by investing in higher mechanization.

[Vaibhav Shah, analyst]

Okay. Sir, lastly, what would be our mobilization advances and the interest bearing portion.

[Unknown Executive]

Mobilization advances right now is -- this is INR 708 crores as on 30th September.

[Vaibhav Shah, analyst]

And the interest bearing portion?

[Unknown Executive]

Pardon.

[Vaibhav Shah, analyst]

Interest bearing out of this?

[Unknown Executive]

Interest bearing it's around 33%.

[Operator]

[Operator Instructions] The next question is from the line of Aditya Sahu from HDFC Securities.

[Aditya Sahu, analyst]

I wanted to understand on the other 2 major projects that we have apart from the [indiscernible]. On the CSMT part, so I think you have mentioned to the previous individual, the execution has started over there, correct me if I'm wrong. And since we were in designing phase till now and the revenue that we are expecting is 40% in '27 of the order value. How much are we expecting in '26?

[Vikas Ahluwalia, executive]

'26, we don't have much of expectation. We have about another INR 400 crores in the midst...

[Shobhit Uppal, executive]

Actually, yes, what Vikas is saying is totally we've given a projection of about INR 400 crores for the entire year for the entire FY '26. And also the balance in H2, it will be about INR 250 crores.

[Aditya Sahu, analyst]

Okay. Understood, sir. And same for the Gems & Jewelry, 30% to 35% of the order value is what we consider it as revenue potential for '26 also.

[Shobhit Uppal, executive]

No, no, no, '27 -- 30% to 35% FY '27.

[Aditya Sahu, analyst]

Understood, sir. Understood. On the Dahlias project for Gurugram, I just wanted to check on the execution since we were expecting that the execution to begin by September '25. So has that like are we on track on that part?

[Shobhit Uppal, executive]

We are slightly delayed, but DLF has handed over 2 towers to us, where work has begun. It just began prior to the rains -- because of the heavy rains in September, they got delayed in handing over the towers to us. Out of 8 towers, they have handed over 2 towers. And the third tower also will be handed over now that the work is stopped for graft. That's why that's got delayed. But 2 towers, we started work on the ground, and we are expecting to pour concrete as soon as the graft is lifted.

[Aditya Sahu, analyst]

Same question on this particular project, the revenue potential for '26 and '27 on this project?

[Shobhit Uppal, executive]

So for '26, we are looking at a revenue of about INR 100 crores and INR 100 crores to INR 125 crores. And for '27, the revenue will be between INR 300 crores to INR 350 crores.

[Operator]

The next follow-up question is from the line of Vaibhav Shah from JM Financial.

[Vaibhav Shah, analyst]

Sir, the inflows that we received in last year second half, especially on the private side. So how do you see the momentum picking up in those projects?

[Shobhit Uppal, executive]

Which we picked up last year?

[Vaibhav Shah, analyst]

Yes, second half.

[Shobhit Uppal, executive]

So yes, downtown -- DLF downtown, it's picking up now. We were on the verge of taking off. In fact, we've been logging a billing of about anywhere between INR 15 crores to INR 20 crores. This will be ramped up in the second -- this will be ramped up by about 20% to 30%. And the other projects that we picked up last year, I think Signature Global was another sizable project, which has also picked up now. We are out of the foundation stage there. And Varanasi Airport, Darbhanga Airport, they are running full stream. In fact, we are logging a billing of close to INR 25 crores to INR 30 crores on each of these 2 projects. So Whiteland was a project which was always slated to begin in December. And that's what it will begin in December month.

[Vaibhav Shah, analyst]

Particularly for the 2 airport projects so they are 24-month and 36-month deadline projects. So for '26, are we on track to maybe at least to 30-odd percent?

[Shobhit Uppal, executive]

Yes, yes, we are on track. In fact -- no, you're saying FY '26. Yes, yes. So we are looking at 30%. Yes, yes, we are on track to do that. One project is about INR 650 crores, 30% would be close to INR 200 crores. We will touch that. We will cross that figure of 30% in both the projects.

[Vaibhav Shah, analyst]

And we were higher in '27.

[Shobhit Uppal, executive]

Yes, both projects will be completed. In fact, Varanasi, our stipulated date of completion is June or July '27. The client is trying to -- because of elections somewhere in March, client is in UP, March 27, the client is pressing us to squeeze the time line. We are on track. And Darbhanga will get completed in October '26.

[Vaibhav Shah, analyst]

Sir, payments also are not a challenge in either of the project since it is a -- for the client.

[Shobhit Uppal, executive]

No, not at all. No challenge. In fact, on both the projects, I don't think we've taken mobilization advance also.

[Vaibhav Shah, analyst]

Okay. Sir, typically, on an average, what would be the interest cost on the mobilization advances?

[Unknown Executive]

Major -- out of this interest bearing, which is the CST project, it's around INR 250 crores. That's bearing the 7%.

[Shobhit Uppal, executive]

No, are you asking the percentage that the client charges us?

[Vaibhav Shah, analyst]

Yes. No, no, the interest rate that we pay on mob advance.

[Shobhit Uppal, executive]

Yes. So the interest rate is about 8% to 9%.

[Vikas Ahluwalia, executive]

7% to 8%. Yes, exactly.

[Vaibhav Shah, analyst]

And sir, lastly, what would be our CapEx target for '26 and '27?

[Shobhit Uppal, executive]

For '26, it was -- we've given a guidance of about INR 500 crores in the last call. It will be lesser than this only. And for '27, it will be lesser because the equipment that we've invested in, in the last cycle, that will become free. A lot of projects will get completed. And so FY '27, it should be about 20% lesser.

[Vaibhav Shah, analyst]

But it will be around INR 400 crores, INR 450 crores...

[Shobhit Uppal, executive]

Yes. About INR 400 crores.

[Vaibhav Shah, analyst]

And for '27, it will be around INR 300 crores?

[Shobhit Uppal, executive]

Yes.

[Vaibhav Shah, analyst]

Okay. So sir, we have seen that on the depreciation side, on a quarterly basis, we still seen in the similar range of around INR 20-odd crores for the last couple of quarters. So when do we see it moving up in the second half or in the next year?

[Unknown Executive]

Just we are planning to increase our CapEx this year, just around -- maybe around INR 350 crores to INR 400 crores and depreciation will move according to that also.

[Vaibhav Shah, analyst]

And what was the CapEx in the first half of this year?

[Shobhit Uppal, executive]

INR 137 crores.

[Operator]

The next follow-up question is from the line of Shravan Shah from Dolat Capital.

[Shravan Shah, analyst]

Sir, retention money and unbilled revenue as on September?

[Unknown Executive]

This retention money, including [indiscernible] side, INR 418 crores and...

[Shravan Shah, analyst]

Sir, retention you said INR 118 crores.

[Unknown Executive]

INR 418 crores. And unbilled revenue is INR 552 crores.

[Shravan Shah, analyst]

Sir, a couple of things I just wanted to understand first, at the annual report FY '25, there was close to INR 25 crores land that we have purchased. Just wanted to understand where and why we purchased the land and how -- we will be -- are we going to sell it immediately or...

[Shobhit Uppal, executive]

No, no. This is a land which we procured to build our own office in Okhla. Our present office is in Okhla that is spread across 2 buildings. One building is our own, one is on rent. At this land, we will consolidate our offices, and this is the land which we procured for that purpose.

[Shravan Shah, analyst]

Okay. So for office, so broadly, how much we will be spending for our office in terms of the CapEx?

[Shobhit Uppal, executive]

At the moment, we are doing our planning. We will be building up -- this is a 1,300 square yard plot. We will be building up close to about 30-odd thousand square feet. So let's see, we'll be -- our planning is happening at the moment. I will be better able to answer this during the next quarter call.

[Shravan Shah, analyst]

Okay. And this year, the INR 350 crores, INR 400 crores of CapEx that we are planning to do so this is primarily on the plant and machinery and shuttering material?

[Shobhit Uppal, executive]

Yes.

[Shravan Shah, analyst]

Okay. Okay. So broadly, because as per the calculation, if I look at the number, accordingly, roughly 16%, 17% normally, that's the way we depreciate shuttering materials over a 6-year odd. So how one can look at the depreciation at least in the next year FY '27?

[Shobhit Uppal, executive]

I will get back to you about that.

[Shravan Shah, analyst]

Okay. Okay. And another thing, sir, I just wanted to understand. So let's say...

[Shobhit Uppal, executive]

A lot of this -- let me further clarify. Let me clarify. While Satbeer will answer this question in detail later, but a lot of investment in shuttering is on aluminum shuttering, right? So the life of which at times is more than the standard depreciation formula that is used. I just wanted to clarify that. Go on. You are asking...

[Shravan Shah, analyst]

Yes, that's what I wanted to understand. So how is -- whatever the INR 300 crores if we are spending multiply into, let's say, 15%, 16%. So that's the way one can look at or how one can look at the depreciation for next...

[Shobhit Uppal, executive]

INR 300 crores is not totally on shuttering. A large chunk of this is machinery and machinery is also a different kind, while a crane has a life, which is much more than 6 years, but the batching plant would have a life, which is maybe less than 6 years. So you cannot give a standard answer. Then shuttering different kind of shuttering have different life spans.

[Shravan Shah, analyst]

Okay. Okay. Got it. Got it. And another thing is, sir, INR 18,000 crores order book as on September and top 10 projects that we have given in the PPT is close to INR 11,400-odd crores. So balance INR 6,600 crores, INR 6,700 crores, that is kind of spread over 33-odd projects and I believe -- that would be at INR 200 crores, INR 300-odd crores. So balance of close to maybe INR 4,500-odd crores would be spread over maybe a 28-odd project. So do we see this -- the remaining value most likely will be completed by FY '27?

[Shobhit Uppal, executive]

You can't say that because in this smaller value project, there would be some projects which would be, say, MEP projects, stand-alone projects where we are -- our company is doing MEP works also, right? So yes, but if not FY '27, by middle of FY '28, these smaller value projects should get over.

[Shravan Shah, analyst]

Okay. Okay. And just wanted to check, is there any update on the West Bengal Kolkata land? So previously, we were thinking either to sell it or to do a joint venture real estate development. So anything -- any progress there from...

[Shobhit Uppal, executive]

Progress, as I said last time, we are looking -- we are working actively to get necessary approvals to make the land free. I wouldn't say free from encumbrances. It is already encumbrance free, but to make it ready to build. Whether we do that ourselves or we sell it outright, that is something to be decided at a later date.

[Shravan Shah, analyst]

Okay. Okay. And the flats that we are having, I don't remember maybe INR 40 crores, INR 50 crores, INR 60-odd crores, the old one. So is there any thought that when we will be able to sell it off and clear it out?

[Unknown Executive]

This is now INR 35 crores. And we are basically looking for that.

[Shobhit Uppal, executive]

This value is also reducing as and when -- we have no intention of retaining it on our balance sheet. As and when we feel that we get a good price, we liquidate the inventory one by one.

[Shravan Shah, analyst]

Yes, because the time it's with us for since long. So that's what I was asking. Has it kind of in next 6 months, 1 year, can we sell it off.

[Shobhit Uppal, executive]

Depending because a lot of this inventory is in, say, Noida, lots of changes happening in the laws there. And some of this inventory is in projects where the client has gone into NCLT, some -- while our inventory, which is there on our balance sheet is secured. But we see in some of these locations, we'll get a better price once the project per se is sort of secured and electrical connections and so on issues such as these are resolved. So we are waiting. We are in no hurry to sell. Whenever we feel we get a good price, we liquidate...

[Shravan Shah, analyst]

Okay, okay. Got it. And last, this Whiteland. So the last quarter, it was INR 821 crores outstanding order book and now it is INR 1,065 crores. So whatever INR 244-odd crores, that's the increase in scope that we have. So that's the value of the project now we will be executing.

[Shobhit Uppal, executive]

Yes.

[Shravan Shah, analyst]

Okay. Okay. And this would be the execution most likely would be starting from the FY '27 there?

[Unknown Executive]

Whiteland FY '27, you can say...

[Operator]

[Operator Instructions] The next question is from the line of Ashish Shah from HDFC Mutual Fund. Sir, can you speak a little louder, please?

[Shobhit Uppal, executive]

No, no, you're not. Your voice is very faint. Yes, much better now.

[Ashish Shah, analyst]

Okay, sir. So sir, just one question. What do we think about the cash, which is on the books? I think there's a sizable amount, INR 1,000-odd crores. So any strategic moves we want to make in terms of either acquisitions or maybe augmenting our sort of size of the company by maybe getting into some adjacencies, et cetera?

[Shobhit Uppal, executive]

So part of this is being used to fund our CapEx, especially because we've made a policy that on government projects where the advances are interest-bearing, we are not -- we are trying to avoid taking the advances, right, to reduce our finance costs. Second, we are using this to get -- to reduce our procurement costs, right, to get better bargains from our suppliers and better maintain or control our supply chain. Thirdly, as we move along and as our base becomes larger, we are obviously studying sectors around our core competence to sort of diversify and maintain the growth rate going forward. So what we are building now -- this will come in use 2 to 3 years down the line when we may look at getting in new technologies, tying up with foreign partners or even looking at acquisitions. But let me clarify, acquisitions is not something which is on the anvil in the near future.

[Ashish Shah, analyst]

Understood. And sorry, just to -- on that point, again, how much is the retention out of this INR 1,000 crores? Sorry, not retention, restricted cash?

[Unknown Executive]

Around INR 419 crores.

[Ashish Shah, analyst]

Okay. So about INR 600-odd crores should be free in this INR 1,000 crores?

[Unknown Executive]

Yes, INR 615 crores, that's exactly...

[Operator]

[Operator Instructions] The next question is from the line of Shravan Shah from Dolat Capital.

[Shravan Shah, analyst]

I thought time is there so let me try one more. Sir, yes, sir, on the residential part so now obviously, the 44-odd percent order book that we have in residential, if you can also specify how much is the private, I mean to say private real estate developer per se. But there, we don't see any kind of a risk. So simple point is, do we see any kind of a write-back -- sorry, write-off in terms of the extra provision on debt going forward?

[Shobhit Uppal, executive]

No, if you see the pedigree of the clients, the private sector clients that we have, you'll see about INR 3,500 crores is -- INR 3,300 crores is DLF, which is the largest and the financially most stable and strong of all the developers. Then we have Signature Global, again, a party which is financially stable. So we've done -- we have Smartworld. We have MR, right? And then we have Brigade down South. So these are all -- we've done our due diligence post the last downturn, and we've always maintained that we have to do very strong -- we have to be very strong on our due diligence when we take on a private sector client. Secondly, residential real estate, I don't think there is any sort of downturn, which is on the anvil. I feel that over the next 3 to 4 years, the runway seems clear.

So -- and thirdly, we've built-in to safeguard with some of the newer clients with like Whiteland and others where we are not giving any bank guarantees. What I'm trying to say is that we have negotiated the contracts in such a fashion that our financial liabilities are considerably -- we've derisked ourselves so to say. Have I answered your question or anything I missed out?

[Shravan Shah, analyst]

Yes. No, no. Perfectly. So that's the only thing because the exposure is increasing. So structurally, even if the one project goes on or maybe a half on a wrong track, then also it will have a decent issue for us. So that's the only thing just wanted clarity there.

[Shobhit Uppal, executive]

Just, like I said -- I mentioned Whiteland. The project will begin in December, as I said, but we've already got some mobilization advances from the client, right, which is interest free. Similarly, with a few of our other private sector clients. DLF, for instance, are -- while they are also very, very strong on their due diligence, they only work with 3 or 4 contractors across India, but they are funding our CapEx. right? So our exposure there is also considerably lesser if there is a slowdown in the project. And when they fund our CapEx, that's also interest-free. That funding is interest-free.

[Operator]

As there are no further questions from the participants, I would now hand the conference over to the management for the closing comments. Over to you, sir.

[Shobhit Uppal, executive]

Thank you. Thank you, everybody, for joining in. Look forward to seeing you again or talking to you again after 3 months. Have a good evening. Thank you so much.

[Operator]

Thank you. On behalf of AMBIT Capital Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.