Dhruv Consultancy Services Ltd
NSE:DHRUV

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Dhruv Consultancy Services Ltd
NSE:DHRUV
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Price: 35.99 INR 0.03%
Market Cap: ₹682.7m

Q2-2026 Earnings Call

AI Summary
Earnings Call on Nov 17, 2025

Financial Performance: Q2 FY '26 revenue was INR 19.40 crores, EBITDA was INR 2.13 crores (10.95% margin), and net profit was INR 1.01 crores (5.19% margin); H1 revenue was INR 40.80 crores with 13.98% EBITDA margin and INR 2.60 crores net profit.

Order Book Recovery: Unexecuted order book stands at INR 200 crores, to be executed in 2.5–3 years; new bids worth INR 250 crores are in the pipeline.

Margin Outlook: Management expects EBITDA margins to improve with entry into new sectors and state-level projects; recent dip in margin deemed marginal and temporary.

Debarment Resolved: Temporary NHAI debarment due to JV partner issues has been lifted, and bidding has resumed nationwide.

Sector & Geographic Expansion: Company has expanded into aviation, railways, metros, and international markets, aiming for sectoral and geographic diversification.

Digital Initiatives: Ongoing implementation of building information modeling (BIM) and ERP systems to enhance execution efficiency.

Attrition & Manpower: Attrition rate is 3–4%, much lower than industry average; over 450 employees, with strong internal recruitment capability.

Guidance: Q3 and Q4 expected to be stronger than H1, with management confident of recovering order inflow and maintaining growth momentum.

Order Book & Pipeline

The company’s unexecuted order book is around INR 200 crores, expected to be executed over 2.5 to 3 years. Management highlighted that INR 250 crores worth of tenders have been recently bidded, with results pending. The order book is expected to improve in Q3 as new projects, especially from state governments and new sectors, begin execution.

Margins & Profitability

EBITDA margins for H1 FY '26 were 13.98%, with Q2 at 10.95%. Management noted this is only a marginal dip, largely due to slow order inflow around election periods and temporary debarment. Margins are expected to recover as order flow normalizes and new higher-margin sectors are targeted. Targeted margins in new sectors like aviation and airports are 30–35%.

Sector & Geographic Expansion

Dhruv Consultancy is actively diversifying beyond highways into sectors like aviation (e.g., airport taxiways), railways, metros, and urban infrastructure. The company has secured empanelments in multiple states and has expanded into Eastern India. Internationally, they have completed work in Mozambique and are pursuing projects in several African and Southeast Asian countries.

Debarment & Bidding Eligibility

A temporary debarment from NHAI due to issues with a JV partner led to a brief pause in project bidding. The debarment was stayed by court order, and the company is now fully eligible to bid nationwide. Management emphasized that the case is not being actively pursued by NHAI and there is no ongoing risk of a two-year ban.

Digital & Operational Efficiency

The company is implementing building information modeling (BIM), ERP systems with real-time dashboards, and exploring digital twins and AI enhancements for project management and design. These initiatives are expected to increase efficiency and project capacity, helping manage more assignments without significant margin impact.

Manpower & Attrition

Dhruv has over 450 employees, with more than 75% being engineers. Attrition is low at 3–4%, compared to an industry average of 20%. The company has a dedicated recruitment team and strong internal talent management, enabling prompt deployment of skilled manpower for new and ongoing projects.

Cash Flow & Debtor Days

Average debtor days have increased to around 100, primarily due to delayed work certification rather than client change. Management expects improvement as project clearances and land acquisition issues are resolved, and as the client base diversifies beyond central government agencies.

Strategic Outlook

Long-term plans include becoming a multi-sector, multinational infrastructure consultant, modeled after global firms like AECOM. The company is focused on sectoral and geographic expansion, including bids for large ticket-size projects in India and abroad, with a vision of reaching an INR 1,000 crore order book by 2030.

Revenue
INR 19.40 crores
No Additional Information
EBITDA
INR 2.13 crores
No Additional Information
EBITDA Margin
10.95%
No Additional Information
Net Profit
INR 1.01 crores
No Additional Information
PAT Margin
5.19%
No Additional Information
Revenue
INR 40.80 crores
No Additional Information
EBITDA
INR 5.70 crores
No Additional Information
EBITDA Margin
13.98%
No Additional Information
Net Profit
INR 2.60 crores
No Additional Information
PAT Margin
6.38%
No Additional Information
Unexecuted Order Book
INR 200 crores
Guidance: To be executed over 2.5 to 3 years.
Bidded Pipeline
INR 250 crores
Guidance: Results to be announced in coming months.
Order Book Target (2030 Vision)
INR 1,000 crores
Guidance: Aimed for 2030.
Attrition Rate
3–4%
No Additional Information
Employee Base
450+
No Additional Information
Revenue
INR 19.40 crores
No Additional Information
EBITDA
INR 2.13 crores
No Additional Information
EBITDA Margin
10.95%
No Additional Information
Net Profit
INR 1.01 crores
No Additional Information
PAT Margin
5.19%
No Additional Information
Revenue
INR 40.80 crores
No Additional Information
EBITDA
INR 5.70 crores
No Additional Information
EBITDA Margin
13.98%
No Additional Information
Net Profit
INR 2.60 crores
No Additional Information
PAT Margin
6.38%
No Additional Information
Unexecuted Order Book
INR 200 crores
Guidance: To be executed over 2.5 to 3 years.
Bidded Pipeline
INR 250 crores
Guidance: Results to be announced in coming months.
Order Book Target (2030 Vision)
INR 1,000 crores
Guidance: Aimed for 2030.
Attrition Rate
3–4%
No Additional Information
Employee Base
450+
No Additional Information

Earnings Call Transcript

Transcript
from 0
Operator

Ladies and gentlemen, good day, and welcome to the Q2 FY '26 Results Conference Call of Dhruv Consultancy Services Limited. [Operator Instructions]

Please note that this conference is being recorded. I now hand the conference over to Mr. Harshil Ghanshyani from Kirin Advisors. Thank you, and over to you, sir.

H
Harshil Ghanshyani

Yes. Thank you. Good afternoon, everyone. On behalf of Kirin Advisors, I welcome you all to the Q2 FY '26 Conference Call of Dhruv Consultancy Services Limited. From the management team, we have Mr. Pandurang Dandawate, Chairman; Ms. Tanvi Auti, Managing Director; Mr. Prashant Ghanekar, VP, Finance and Accounts.

Now I hand over the call to Ms. Tanvi Auti for opening remarks. Over to you, ma'am.

T
Tanvi Auti
executive

Good afternoon, everyone. Welcome, everyone, for today's conference call on Q2 FY '26 of Dhruv Consultancy Services Limited. I take the opportunity to thank all participants, investors, analysts and management team of our company.

Our company was established in 2003, and it is headquartered in Navi Mumbai. Dhruv Consultancy Services is among the India's leading infrastructure consultancy company, offering end-to-end solutions across design and engineering, construction supervision and project management. Our core services include preparation of detailed project report, feasibility studies, carrying out supervision, construction supervision and operation maintenance supervision. Along with that, we also provide technical and structural audit services.

Over the past 2 decades, we have successfully completed more than 250 projects for prestigious clients, including the Ministry of Road Transport and Highways (MoRTH), National Highways Authority of India (NHAI), CIDCO, JNPT, MMRDA, MSRDC and many more. Our team of over 400 professionals out of which more than 75% are qualified engineers form the core of our intellectual capital, enabling us to deliver engineering excellence, operational precision and sustainable solutions across highways, bridges, ports and urban infrastructure.

Since our listing on the NSE and BSE main board, we have remained focused on strengthening our domain expertise and diversifying into new infrastructure segments, both domestically and internationally. During Q2 FY '26, we achieved several important milestones that strengthen our foundation for long-term growth.

We were empanelled as an ATCC Class-1 Consultant by the Public Works Department for traffic census and classification-related consultancy services. This empanelment is valid for 3 years, enhances our eligibility to participate in larger and more complex infrastructure tenders.

Later, we were also empanelled under the A category by MSIDC for the preparation of DPR for road projects valued at over INR 36,000 crores. This empanelment complements our existing PMC assignment for 11 packages of MSIDC, expanding our participation in the state's infrastructure development program.

Further in October 2025, we made our strategic entry into the aviation sector through an appointment by MADC, that is the Maharashtra Airport Development Company Limited for consultancy services on the construction of link taxiways on in MIHAN, Nagpur, which is valued at INR 1.63 crores and spread over 20 months.

This milestone diversifies our sectoral presence beyond bridges and highways into airport infrastructure. In the same month, we were also empanelled by the Odisha Bridge and Construction Corporation Limited as a consulting agency for supervision of roads and bridges for a period up to 3 financial years, that is up to March 2028, expanding our geographical reach in Eastern India. These developments selectively enhance our eligibility profile, geographic reach and sectoral diversity, reinforcing our reputation as a dependable partner for public infrastructure projects across India.

Now let me move on to our financial performance. For Q2 FY '26, our consolidated revenue stood at INR 19.40 crores, reflecting steady business momentum. EBITDA came in at INR 2.13 crores with margins at 10.95%, demonstrating disciplined cost management. Net profit for the quarter was INR 1.01 crores, translating to a PAT margin of 5.19%. This performance underscores the company's focus on execution excellence, stronger project mix and strategic diversification across new clients and regions.

For half yearly FY '26, our consolidated revenue stood at INR 40.80 crores, supported by stable execution across key projects. EBITDA for the period was INR 5.70 crores with a healthy EBITDA margin of 13.98%. Net profit for H1 reached INR 2.60 crores, delivering a PAT margin of 6.38%.

The half yearly performance demonstrates that the company's strengthening fundamentals, efficient project delivery and continued expansion across clients and regions. Looking ahead, we remain optimistic about the opportunities in India's infrastructure ecosystem supported by sustained government investments in highways, bridges, railways and airport connectivity.

Our strategy is centered on expanding sectoral expertise, enhancing digital integration and project management and scaling operations across emerging markets. With strong and a growing project pipeline and a disciplined approach to execution, we are well positioned to sustain our growth momentum in second half of FY '26. The recent additions to our portfolio, particularly in the aviation sector and the state infrastructure will serve as a key growth enabler in the coming quarters.

In closing, I would like to express my gratitude to our shareholders, clients, partners and employees for their continued support and confidence. We remain committed to delivering engineering excellence, sustainable growth and long-term value creation. Thank you.

Operator

[Operator Instructions] And the first question comes from the line of [ Vinod Shah from VX Ventures ].

U
Unknown Analyst

Yes. So our EBITDA margins in H1 were around 14%. So are these margins sustainable considering the mix of our new consultancy vertical?

T
Tanvi Auti
executive

Can you repeat? Your voice is a bit low.

U
Unknown Analyst

Yes. Our EBITDA margins were around 14% in H1. So is this the margin that those are sustainable going forward, considering we are venturing into the new consultancy vertical?

T
Tanvi Auti
executive

Yes. So answering your question, the EBITDA margin has reduced, but it's not a big significant reduction. It is marginally less. And as has been the trend now last year due to elections and this year also, the order book flow is a bit slow, which is now picking up for the month of October. So Q3 and Q4 will definitely take it up. And there is not a much drop in the EBITDA margin as such.

Now with the new orders coming in, in the new sector as well, the reason of entering into new sectors and new geographies is because we want an increase in EBITDA margin. So our focus has now shifted into new -- entering into new sectors and new clients where we were only dependent on the highway sector.

U
Unknown Analyst

Okay. And what is the current order book and execution time line on the [indiscernible]?

T
Tanvi Auti
executive

Yes. So our current order book is close to INR 200 crores unexecuted. And this is to be executed in a period of 2.5 years, 2.5 to 3 years.

U
Unknown Analyst

Okay. And what's the bid pipeline?

T
Tanvi Auti
executive

So it depends on the type of projects. If it's a DPR project -- bid pipeline, sorry, bid pipeline is around 4 to 6 months.

U
Unknown Analyst

No, I'm asking about value, like how much...

T
Tanvi Auti
executive

Okay. How much tenders are bidded and -- yes, yes. Around INR 250 crores of tenders are bidded for which results are awaited.

U
Unknown Analyst

Okay. Okay. Like with the recent tie-ups that we have done, so what kind of revenue growth and profitability we can expect in, let's just say, next 2 to 3 years?

T
Tanvi Auti
executive

So I'm not allowed to comment on the growth factor as per SEBI and LODR guidelines. But definitely, our Q3 and Q4 will be better than Q1 and Q2.

U
Unknown Analyst

Okay. Okay. And we have recently expanded into the Eastern India. So is there any plan like in North India and South India?

T
Tanvi Auti
executive

We are already having a strong presence in North and South India. East India, we had a few projects, 1 or 2 projects. Now we are expanding to the states as well. We were only doing it with NHAI and ministry that is the central government. Now with states also coming up with larger infrastructure projects, in fact, the state government projects are very high-end ticket size, INR 25 crores plus. That is why -- and with good EBITDA margins, of course. So our focus is now shift a little bit diverted from central government, which has gone in auto mode, and we are definitely receiving projects from NHAI and North as well. But in addition to that, in order to improve our EBITDA margin, we are now targeting state infrastructure projects, not just in Maharashtra, but all over the country.

U
Unknown Analyst

Okay. And like we are bidding into the aviation consultancy segment. So what are the revenue expectations from there, like in next 1 to 2 years, like what will be the contribution...

T
Tanvi Auti
executive

So -- okay. So if it's -- it depends on the type of work, also if it's a full airport project, like we have bidded for over 7 airport projects right now. Out of that, one we have received for the -- for MIHAN, MADC Nagpur. The other projects that we have bidded, they are not for only the taxiway or the runway like it is for Nagpur, it is for the entire airport expansion. So we can expect a ticket size of INR 10 crores to INR 15 crores from it.

Operator

The next question comes from the line of Gunit Singh from Counter Cyclical PMS.

G
Gunit Singh
analyst

So what is the reason for fall in the revenues in Q2 by 40% and also fall in EBITDA margins if you compare year-on-year?

T
Tanvi Auti
executive

Yes. So it is just a spillover of last year due to the state and the central government elections. Secondly, in the last 6 months due to a debarment order from NHAI, we couldn't get any new projects that were there. But now since 4th July 2025, our projects close to INR 250 crores have been bidded. And since October month, our revenues have started to build up. So the company has not -- the EBITDA margins of the revenue have not gone down very badly as such, not very substantial, but very marginally. And it will -- the Q3 and Q4 will take care of it.

G
Gunit Singh
analyst

So what was the reason for debarment by NHAI? And are we allowed to bid orders now?

T
Tanvi Auti
executive

Yes, yes. So it was published on the BSE website as well that there is a stay order on it and the case has been adjourned. So right now, we are open to bid any tenders across the entire country. The reason for the debarment was that our JV partner, Global Infra Solutions, it was given back-to-back -- the project was given on a joint venture back-to-back basis to him.

And Dhruv had no role to play in that particular project. And due to some approvals given -- which were rectified also in the form of supplementary agreement, NHAI processed the debarment, but there was no loss faced to NHAI due to the errors made at site and which were rectified. Hence, the court issued a stay order on the debarment. And now we are open to bidding. And recently, we have been awarded an INR 8.73 crore project in the state of Karnataka as well by NHAI. And we are being technically responsive also and our bids are also being opened.

G
Gunit Singh
analyst

Got it. So is the case just temporarily closed? I mean, we have stay orders or is it permanently closed because the debarment was for 2 years. So I just would like to understand that do we have any risk of serving the entire 2-year debarment?

T
Tanvi Auti
executive

So NHAI is right now not pursuing the case because they understood that it has been done -- it was not fair with us as well. We've been a listed company. And till date, our record has been very clear. And in fact, our projects finished before time line as well. A lot of contractors have taken bonuses for early completion and not even one single show cause notice has ever been received against the company. So NHAI is not pursuing the case as such. That is why the case is adjourned. There have been no submissions from NHAI side on the case.

G
Gunit Singh
analyst

All right. Got it. So if we look at our top line in H1, so it has been much lower if we compare it year-on-year. So I would like to understand, would we be able to maintain -- I mean, achieve the INR 100 crore revenues that we achieved in the previous financial year?

T
Tanvi Auti
executive

There will definitely be improvement in Q3 and Q4 because now the orders have started flowing in since Q3. Since October, if you can see, there have been a lot of empanelment, a lot of government projects coming up. In fact, we have bidded for major projects in CIDCO as well for the Navi Mumbai Airport connectivity.

And they are much larger in ticket size, much improvement in EBITDA. So in fact, now the company is more focused on sectoral expansion and client expansion as well. So the results have also started to come out. And with new orders flowing in, there will be an improvement in order book also, and we'll be back to our original order book number that was there earlier. So we are expecting a good jump in our order book in Q3 itself.

G
Gunit Singh
analyst

Got it. So what percentage of current order book is from NHAI?

T
Tanvi Auti
executive

Almost 90%. And that has -- the current order book, the debarment has no effect on the current order book.

G
Gunit Singh
analyst

All right. So I mean, it's just that we cannot bid for any new projects, but in case the debarment held...

T
Tanvi Auti
executive

Yes, it was only for a period of 2 or 3 months from 4th July 2025, we have again started bidding for NHAI and MoRTH itself.

G
Gunit Singh
analyst

So what is the reason for our debtor days increasing from around 55 to 60 during FY '22 to around 100 days currently? Is there a change in client -- our major clients or -- what is the main reason for that?

T
Tanvi Auti
executive

No change in major clients as such. Yes, MSIDC has been added, but the debtor days increase has been due to lower certification of work. There have been a few projects where certain land acquisition or certain project clearances are pending due to which marginally, it has been lower due to lower certification of our bids. But I think with land acquisition issues also coming up and NHAI coming up with newer policies, this will also be sorted out. And now that we will no longer be dependent on only MoRTH or only NHAI, definitely, the debtor days will also see improvement.

Operator

The next question is from the line of [ Pradeep Agarwal ], individual investor.

U
Unknown Attendee

So my first question is, what is the management's long-term plan? Does the company intend to evolve into multi-sector infra consultant like any AECOM or...

T
Tanvi Auti
executive

Yes. So yes, you can consider AECOM to be a role model kind of a company in infrastructure. We are definitely -- till now, we have expanded into the highway sector, and we are one of the top 5 consultants in India. In the last 3 or 4 months, you all have seen that there has been an increase in the clients as well as an increase in the sector.

Our focus is now equally on the metros, the railways, the airports and urban infra sector, not just in India, but globally. Last year, we were awarded with a project in Mozambique, and we now have a presence in Mozambique. And with our U.K. subsidiary from London, we are bidding a lot of AfDB, ADB and World Bank assignments all over Africa, Southeast Asia.

In addition to that, we are also increasing our client base, not just to the central government sector, but state governments as well where the ticket size are much larger, like we did with the Ganga Expressway project, which is valued at INR 20 crores, with UPEIDA, which is a state government organization and MSIDC, INR 22 crore project, which is again a state government organization. So with our focus on sectoral expansion and geographical expansion, definitely, we plan to become a multinational as well as a multi-sectoral company.

U
Unknown Attendee

Okay. So there must be some plan to diversify into railways, metros like renewable energy...

T
Tanvi Auti
executive

We have already diversified. Railways, we are currently doing one project in Jharkhand, in Kota, Rajasthan and one in Tamil Nadu that is in Salem region. So 3 projects are currently ongoing in the railway sector.

As far as metro is concerned, with MMRDA, Line 1, Line 5, Line 7 and Line 3A, all these 4 projects we have given are PMC services for the metro sector in Mumbai. And we are also presently bidding for large metro projects under CIDCO, then large airport projects as well for the Navi Mumbai Airport connectivity and the Cochin Airport and other Tier 2, Tier 3 airport coming up. As we have heard in the Union Budget, 227 new airports are being constructed all over India, and there is very less competition there. Hence, airport sector has been identified, and we are bidding it with great joint ventures also in place.

U
Unknown Attendee

Okay. Okay. Okay. And how has the revenue contribution evolved between DPR, PMC supervision and MoRTH?

T
Tanvi Auti
executive

Yes. So between supervision, O&M would be around 40% of our revenue. Then 40% would be construction supervision and balance 20% for DPR.

U
Unknown Attendee

Okay. And what's currently -- I mean, revenue currently coming from long-duration PMC projects versus short-duration DPR contracts?

T
Tanvi Auti
executive

Most of it is coming from PMC because operation and maintenance or construction forms a PMC project only. So that is why 80% of our revenue comes from PMC itself.

U
Unknown Attendee

Okay. So the rest...

T
Tanvi Auti
executive

And it is good for cash flow management as well. It is good for cash flow management as we receive payment on a monthly basis.

U
Unknown Attendee

Okay. Okay. And are there any large-sized multiyear consultancy mandates under a negotiation that could materially alter the revenue profile?

T
Tanvi Auti
executive

Can you tell your question again?

U
Unknown Attendee

Are there any large-sized multiyear consultancy mandates under negotiations? So that would materially alter the revenue profile, right?

T
Tanvi Auti
executive

Yes. All the assignments are for a longer tenure. For PMC, it is a 3-year construction plus a 3-year defect liability period. Maintenance also are 5 years project. And DPR, we deliver our service in 1 year itself, but the project keeps on expanding as new requirements come up with the client. And for those, we receive variations as well.

Operator

The next question is from the line of [ Chandresh Singh ] from Trident Asset Management.

U
Unknown Analyst

So my question is Dhruv recently entered the global markets via Mozambique. So what is the strategy for scaling international assignments? And which regions are being targeted?

T
Tanvi Auti
executive

Yes. So presently, I would like to give you a list that in Mozambique, we are already present with a branch office present in Mozambique. Secondly, we are currently under negotiation in Ghana. Along with that, we are bidding -- we have been shortlisted in a few projects in Zambia. That's again in Africa.

Then Cambodia also we have been shortlisted. There is Zambia and Tanzania. So these are the currently projects where projects are being talked about, and we have been shortlisted. And we are hopeful that from this Q3 onwards, we'll bring in more projects from the international sector.

U
Unknown Analyst

Okay. My second question is, how does the company intend to build a sustainable international revenue stream through partnerships, JVs or local offices?

T
Tanvi Auti
executive

So we have a strong business development team who has a good network in Africa. And on a day-to-day basis, meetings are being done with these partners. And the local partners present in Africa do not carry the technical capability of carrying out the works on their own. That is why they need a stronger JV partner to execute work -- larger works of World Bank or AfDB, especially in Africa. So they are in fact, it is -- they are more willing to partner with an Indian firm. So we take the local services wherever we need to deploy any local manpower as such. And all the project is being executed by our team itself, wherein we don't need to hire anyone extra, but within our existing manpower itself, this has been taken care.

U
Unknown Analyst

Okay. My next question is, is the company evaluating AI/ML-based solutions or digital twins or design supervision or asset audits?

T
Tanvi Auti
executive

So we are currently implementing building information modeling, which is just a one notch below version of digital twin. So for digital twin to be implemented, we need BIM modeling first. So our team is currently being trained for BIM modeling with AI also coming up.

AI will be implemented in building information modeling. So faster design sets and faster designs can be there. There can be faster project management efficiency also. So with all this advancements being done, we will be able to take up more number of projects.

U
Unknown Analyst

And do you all use any digital project management tools and technologies to reduce cost and enhance efficiency?

T
Tanvi Auti
executive

Yes. So we have an internal ERP system that is being used for project management that has real-time dashboards present in it. So each project coordinator at our head office actually can get a real-time report from the ERP about what is happening on the site. So that ERP is in place. And through that ERP, project management is being taken care on a real-time basis.

Operator

The next question is from the line of [ Anjana Nambiar from Orion Capital Managers. ]

U
Unknown Analyst

Yes. So ma'am, like my first question is with multiple empanelment secured in financial year '26, what is the average conversion cycle from empanelment to receiving work orders?

T
Tanvi Auti
executive

So empanelment is not a work order. After empanelment, we are allowed to bid for orders that is coming up. So as and when, say, the empanelment is for a period of 3 years. So for the next 3 years, under that client, we can bid any number of works.

So like, for example, the Odisha Bridge Corporation that we received empanelment. So under that INR 25 crore plus ticket size assignments are coming up. And due to that empanelment, we can now bid for larger ticket size projects, which have very good EBITDA as well. So there is no fixed time line. But as soon as the empanelment happens, even from tomorrow, we can start bidding. It is like that.

U
Unknown Analyst

So does being empanelled in multiple states give the company cost advantages or better visibility when bidding for national level projects?

T
Tanvi Auti
executive

It definitely helps us to reach larger client base and larger geographies also. So because with NHAI, we are present in 25 to 26 states where we are executing projects. But to have a wider client base and larger ticket size projects, we have taken this step of targeting a few state government authorities as well.

U
Unknown Analyst

Okay. So like what is the current engineer to project ratio? And how does Dhruv Consultancy plan to scale manpower for coming tenders?

T
Tanvi Auti
executive

Yes. So for DPR projects, we have an in-house DPR team sitting at the head office itself. They are a team of 10 engineers, and they take care of our DPR projects from the head office. As far as PMC is concerned, we have project coordinators under 3 general managers, who take care of the project operations and have a real-time update about what is going on in the project. So along with that, we deploy around 8 key professionals and 20 subprofessionals, support staff on every site as per the tender requirement.

If it's a maintenance project, then this might be less also. So for each project, such number is required to be deployed, whether it is domestic, whether it is international. And we have a strong recruitment team of 7 to 8 individuals who constantly are involved daily in the recruitment and talent acquisition for these particular projects.

So until now, we haven't faced any issue with getting new manpower as well as we itself have a big manpower base of 450. So with our database itself -- within our database itself, we keep shifting in our in-house employees only if required, then we hire from outside.

U
Unknown Analyst

Okay. So ma'am, like my last question would be like given expansion into new regions, is the company planning to set up regional offices or...

T
Tanvi Auti
executive

There will be no regional offices as such, but there will be project site offices wherever there is a PMC project. And right now, there are only -- there is only one subsidiary that is in U.K. As far as India is concerned, we operate from our Mumbai office only.

Operator

The next question is from the line of [ Aditi Roy from Patel Advisors ].

A
Aditi Roy

Ma'am, I just want to know how we are improving our execution efficiency and turnaround time, if we specifically talk on DCRS, PMC and supervision assignment.

T
Tanvi Auti
executive

Yes. So we are currently -- as I said in my previous answer also, we are currently implementing building information modeling. This is -- this will help achieve faster designs because building information modeling not just helps us organize our design works, but it implements AI.

And through that, not just 2D models, but 3D models of infrastructure projects will also be developed. Right now, in Saudi Arabia, the Middle East and developed countries, not 3D, but 5D models are being developed, 5 dimensional. So we have -- now our team is being trained on 3D modeling and soon with digital twin implementation and more advancements in the AI field, I think with 5D and 6D modeling should also be there, which will help us take more number of projects and increase the employee performance as well.

A
Aditi Roy

Okay, ma'am. And ma'am, what steps are we being taken to ensure the timely deployment of skilled manpower, specifically with the expansion into new states and new income categories?

T
Tanvi Auti
executive

So the bid period is around 4 to 5 months. So 4 months before itself, the employee, who is going to be deployed on the project gives a written consent not just to me, but to the client as well. So that person has to join on the project because at the bidding stage itself, they give a consent. And if in case there is a delay in deployment or so, the client is informed. But in less than 1 month of the project award date or the work order date, our deployment is usually 100%.

A
Aditi Roy

Okay, ma'am. And on 75% of workforce being engineers. And what is the company's strategy for hiring retention and capability building going forward?

T
Tanvi Auti
executive

So as compared to the industry, we have the lowest retention to the tune of 3% to 4%, lowest attrition, I would say. So with such a low attrition rate, I think we are already ahead of our competitors. So that itself answers it.

A
Aditi Roy

And ma'am, so if we talk of government-related projects forming the bulk of revenue, how we mitigate a delay related or payment cycle risk?

T
Tanvi Auti
executive

So yes, delays used to happen, but now the delays have significantly reduced. And more than 180 days, hardly any debtor goes because average 120 days, we receive our payments. Even though it is delayed, it is a 100% guaranteed payment, whereas in private sector, we have seen that there are huge delays. But as far as government sector is concerned, our payments, even though there is a delay, we receive the payment properly whatever has been contracted in the agreement.

A
Aditi Roy

And ma'am, my last question, how we are managing the margin pressure in price competitive bidding processes?

T
Tanvi Auti
executive

So that itself has been taken care with sectoral expansion and geographical expansion. With the geographical expansion, we have now started receiving payments in USD. So dollar has been quite high, and that actually gives us an advantage of receiving good payments in U.S. dollars. So that is one. And client base widening also now we are -- with new empanelments also coming in place, we are bidding larger ticket size projects, which definitely have good EBITDA margin.

Operator

The next question is from the line of Thomas, an individual investor.

U
Unknown Attendee

We talked about the Mozambique empanelment and all. Why has there been a huge delay? We've been hearing about the orders coming in for now maybe more than a year now. Why hasn't there been any progress?

T
Tanvi Auti
executive

Mozambique project has already been executed, and we have received our payments also. So I don't think there's an issue there. But the turnaround time itself in Africa, they are very small countries like Gambia, Ghana, Zambia, Tanzania, where the population is also less and due to less population, the requirements are low, but definitely, ticket sizes are more.

There is a 2-year turnaround time for all this. So the projects that we have bidded 2 years ago we just started entering into the international sector 1.5 to 2 years ago. So now the results keep on coming in as far as government sector is concerned. To enter into the private sector there, we need local registrations, which we now have in Mozambique.

So with the Mozambique order being executed, we can get faster projects in Mozambique. But as far as other Africa is concerned, the market is quite slow there. And this year, 2025 itself has been slow all over the world. So -- but we can see that in Q3 itself, things have started to pick up. So a lot of negotiation meetings have been held up in the past 1 month only, which did not happen in the past 7 to 8 months. So things have started to take place. But due to a general slowness all over the world economy, I think things are getting delayed.

U
Unknown Attendee

Okay. And so when you're looking at an overall order book or orders that you can win, what is the maximum size that it can go up to? Can you give me an estimate?

T
Tanvi Auti
executive

The order book?

U
Unknown Attendee

Yes, the total order book, like what could the maximum size be based on your capacity right now?

T
Tanvi Auti
executive

So for vision for 2030, we have a target of INR 1,000 crore order book, and it can definitely go higher than that if airport projects and more larger ticket size, like we are bidding ticket size of close to INR 150 crores also. So if we start receiving such good ticket size projects, then it might go up more than that, but INR 1,000 crores is what we are eyeing at for 2030.

U
Unknown Attendee

Okay. And when it comes to when you're having these discussions and negotiations, what factors are you considering? I mean, are you trying to make sure that you win it on price? Or is there a cost plus basis that you're looking at? What is it?

T
Tanvi Auti
executive

No. It is just a taxation that needs to be cleared off because whether the country has a DTA agreement with India or not. So just the taxations are being discussed. There is no cost negotiation as such happening. If in case -- because there is a 2-year period of between the bidding and the opening, if in case they allow us to replace our manpower also in case someone has left or someone needs to be replaced. Other than that, there are no cost reductions happening in the negotiation.

U
Unknown Attendee

Okay. And what would you -- what is the -- I mean, in India, what is your win rate when it comes to these tenders? And abroad, what do you feel your bid win rate would be?

T
Tanvi Auti
executive

Bid win rate. So right now, if you see the overall bid period also, we are -- we have a success rate right now of 1%, which we are now scaling up to 5% to 10% in this financial year. Whereas in India, it is a 25% strike rate, a bid win rate.

Operator

The next question comes from the line of [ Priya Jain ] from Green Capital.

U
Unknown Analyst

So I'm new to the company and I was going through a few of the available information on exchange on Dhruv. So Dhruv has entered new sectors such as aviation consultancy and traffic census services.

So how do you see the sector mix evolving over the next 2, 3 years? And what percentage of revenue could non-highway segment contribute?

T
Tanvi Auti
executive

Yes. So we are expecting that -- see, even though we are expanding in sectors, highway is going to remain the core of it because the network that highway has all over the country, no other sector has. So -- but what we are looking at from the sectoral expansion is large ticket size and good EBITDA margin projects.

So the number of projects may not be very high, but the ticket size and the EBITDA margins will definitely be higher. The Union Budget itself tells us the budget allocation and the focus being given on infrastructure projects. In the last 2 or 3 budgets itself, we have seen emphasis on railways, metros and airport sector. Airport sector has been given emphasis this Union Budget, the last Union Budget itself. So with these advancements happening, companies aligning their sales and business development efforts accordingly.

U
Unknown Analyst

And what kind of EBITDA margin you all are eyeing?

T
Tanvi Auti
executive

We are eyeing on 30% to 35% EBITDA margin in these sectors.

U
Unknown Analyst

Great. Good to know. Okay. So I have a few more question with multiple across CWD and MADC, [indiscernible] what's the company's internal estimate of the addressable tender value over the next, you may say, like 12 to 18 months?

T
Tanvi Auti
executive

In the next -- so INR 250 crores of orders are presently being bidded, and we are hopeful that in -- by the end of Q4, INR 70 crores to INR 80 crores total projects will minimum be added with our strike rate. But now that we are expecting some improvements in ticket size also, so this can be higher as well.

U
Unknown Analyst

Okay. And what is the current like active consolidated order book?

T
Tanvi Auti
executive

Unexecuted order book is INR 200 crores.

U
Unknown Analyst

Okay. And how much of this is expected to convert into like a top line is going to contribute in top line for...

T
Tanvi Auti
executive

So this -- our INR 200 crores is to be executed in 2 years because I'm not allowed to comment on the revenue figures. So I can only say that INR 200 crores is the total order book and to be executed in 2.5 to 3 years.

Operator

The next follow-up is from the line of [ Vinod Shah from VX Ventures ].

U
Unknown Analyst

Okay. So what digital twins have the company has deployed like for supervision of the project and for tracking the quality? And like is it contributing to the higher margin?

T
Tanvi Auti
executive

Margins have no effect to play on it, but definitely, the efficiency will improve. We can take up more number of projects with these implementations.

Margins, if digital twins is good for the contractor, but as a consultant, our job is only supervision and designing. So with more time available with us through this implementation, we can take up more number of projects. That is the -- so that can help us in increasing the order book.

U
Unknown Analyst

Okay. So are we like doing like twin-based surveys or LiDAR mapping for BI?

T
Tanvi Auti
executive

Yes, we are doing it. We are doing it.

U
Unknown Analyst

Okay. Okay. And like how sensitive is the business to the like change in employee cost and employee cost inflation?

T
Tanvi Auti
executive

So yes, there is inflation in employee cost, but our attrition rate in the industry -- the industry attrition rate is 20%, but our attrition rate is 3% to 4%. So which itself till now as such, we haven't faced this issue of manpower in our operations. So -- and we have a very good talent acquisition team who's been involved on a day-to-day basis dedicatedly for employee attrition as well as hiring new employees for new projects.

U
Unknown Analyst

And what's the current employees -- new employees and total employees? And how much of them are on contract or full time? Can you give a breakdown on that?

T
Tanvi Auti
executive

So around 100 employees are on contract, but rest all are on our permanent status.

Operator

[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to Mr. Harshil Ghanshyani from Kirin Advisors for closing comments. Over to you, sir.

H
Harshil Ghanshyani

Yes. Thank you, everyone, for joining the conference call of Dhruv Consultancy Services Limited. If you have any queries, you can write us at [email protected]. Once again, thank you, everyone, for joining the conference call.

Operator

Thank you, sir. Thank you, everyone. On behalf of Kirin Advisors, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.

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