EMS Ltd
NSE:EMSLIMITED
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
US |
|
Bank of America Corp
NYSE:BAC
|
US |
|
Mastercard Inc
NYSE:MA
|
US |
|
UnitedHealth Group Inc
NYSE:UNH
|
US |
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
Pfizer Inc
NYSE:PFE
|
US |
|
Nike Inc
NYSE:NKE
|
US |
|
Visa Inc
NYSE:V
|
US |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
Coca-Cola Co
NYSE:KO
|
US |
|
Verizon Communications Inc
NYSE:VZ
|
US |
|
Chevron Corp
NYSE:CVX
|
US |
|
Walt Disney Co
NYSE:DIS
|
US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
Q1-2026 Earnings Call
AI Summary
Earnings Call on Sep 3, 2025
Q1 Revenue Growth: EMS Limited reported Q1 FY26 revenue of INR 211.32 crores, up 3.73% year-on-year, but below internal expectations due to early and heavy rains impacting underground work.
PAT Increase: Profit after tax for the quarter was INR 37.38 crores, a 1.46% rise year-on-year.
Full-Year Guidance Reiterated: Management reaffirmed 25% revenue growth guidance for FY26, targeting about INR 1,200–1,250 crores in revenue, despite first-half weakness.
Order Book Strength: The unexecuted order book stands at around INR 2,500 crores, with a robust tender pipeline of INR 4,000 crores.
Margins: PAT margin guidance remains at 20% (plus or minus 1–1.5%), with Q1 margins impacted by seasonality.
No Debt: EMS Limited continues to operate as a debt-free company, funding growth organically.
Subsidiary Update: The recently acquired paper company is expected to generate INR 100 crores annual revenue with 6–8% margins, with no further CapEx planned.
HAM Project Strategy: Company completed its first HAM project and is actively pursuing more, with fund-raising plans linked to larger HAM opportunities.
EMS Limited's Q1 FY26 revenue grew modestly by 3.73% year-on-year, falling short of management's 20-25% quarterly growth expectations. The shortfall was attributed to unusually early and heavy rains, which disrupted underground project execution. Management expects similar challenges in Q2 but anticipates catching up in the second half as weather conditions improve, maintaining their full-year growth outlook.
The company's unexecuted order book stands at approximately INR 2,500 crores, with about INR 4,000 crores worth of tenders in the pipeline. Management expects to add around INR 600 crores in new orders by December and estimates that about 40% of the order book can be executed annually, providing strong revenue visibility.
EMS continues to target a PAT margin above 20% (plus or minus 1–1.5%), which it has consistently maintained in recent years. Q1 margins were lower due to seasonal effects and increased competition. Management expects margins to normalize over the full year, with ongoing efforts to optimize project mix and execution.
Despite weather disruptions in the first half, EMS reiterated its guidance for about 25% revenue growth in FY26, targeting INR 1,200–1,250 crores in revenue. This target does not include revenue from its recently acquired subsidiaries, which will be additive on a consolidated basis. The company also indicated its longer-term target of sustaining 25–30% annual growth.
EMS Limited emphasized its debt-free status, stating it funds growth through internal accruals rather than external debt. The only exception is for HAM project SPVs, where debt is mandatory for financial closure. Management reiterated its preference for organic, debt-free growth and signaled no plans to alter this policy.
The company discussed its recent 60% acquisition of a paper manufacturing firm, which is expected to add about INR 100 crores in annual revenue at 6–8% margins. This acquisition primarily serves to provide collateral for banking facilities and is not a core focus for further investment. There are no immediate plans for further CapEx or to acquire the remaining 40% stake.
EMS completed its first HAM project and is receiving annuity payments. The company is actively pursuing additional HAM projects, particularly those of INR 500 crores and above. Fundraising, when market conditions permit, is intended to support the equity requirements for these larger HAM projects, with management expressing confidence in continued opportunities in this segment.
Management sees significant long-term growth potential in government-funded water and wastewater projects. They highlighted the large scope under central schemes like AMRUT and Namami Gange, noting ample room for expansion over the next two decades. The company is not involved in the Jal Jeevan Mission and does not face any funding issues for its current projects.
Good afternoon, ladies and gentlemen, and welcome to the Earnings Conference Call for Q1 FY '26 for EMS Limited. [Operator Instructions]
EMS Limited was incorporated in 2010 by Mr. Ramveer Singh and Mr. Ashish Tomar and is involved in the business of sewage solutions provider, water supply system, water and waste treatment plants, electrical transmission and distribution, road and allied works, operation and maintenance of wastewater scheme project and water supply scheme project for government authorities, bodies.
Let us now begin with the introduction of the management team. We have with us today Mr. Ramveer Singh, Promoter and Chairman of the company. Also joining us today is Mr. Ashish Tomar, Promoter and Managing Director; and H.K. Kansal, Consultant Engineering Operations at EMS Limited.
I would now like to request Mr. Ramveer Singh, Promoter and Chairman to give his opening remarks. Over to you, sir.
[Foreign Language] Ramveer Singh, Chairman of EMS Limited. [Foreign Language]
May I open the line for questions?
Yes. Let me tell you just something. I am H.K. Kansal, Consultant Engineering Operations. The result of this June '25, as we have given the revenue is INR 211.32 crores against INR 203.72 crores last year of the same quarter, and earnings of INR 37.38 crores against INR 36.84 crores. That is just 3.73% up in terms of revenue and 1.46% up in terms of PAT. The reason behind that, we were looking for 25% -- 20% to 25% growth in this quarter. But as the rainy season was a bit early and we couldn't perform in last 15 days of the June due to rains because we work underground for laying sewage and water supply lines, so the results are not as per the expectation line, these are subdued to our expectation, although they are higher than the previous similar period. And we will try to maintain it in the quarter, not in next quarter, but in the latter half of the year because this time rainy season is at peak, unexpected higher rains are there, and we are feeling difficulty in maintaining the revenue for this quarter as well. Because over groundworks we are continuing and we are doing it on a robust basis but underground works are -- is still suffering. So that is our remark. Now I think we can open the question and answers. Thank you.
The first question comes from the line of Dinesh Kulkarni with Finsight.
I appreciate your information that we had faced difficulties in this quarter -- the previous quarter and expected to continue this quarter as well. So are we going to -- like say, we have mentioned that earlier 20%, 25% of revenue -- at least 25% of revenue growth we are expecting for this fiscal year. So are we still going ahead with that? Or there is a change in that, if you could at least elaborate on that?
Definitely, we are looking for the same growth if you see Y-o-Y, because we are doing -- at present, we are doing procurements and other design drawings and other things, but we are unable to lay the sewer in this rainy season in most of the places. So we can make it up in later half year, basically from September onwards -- October onwards rather, in 6 months, because there are milestones in getting the payments. So if we are doing procurement, we are doing the expenditure, but we are not getting the payments. That is why the revenue will suffer in September as well due to this rainy season. But in next 2 quarters, that is last 2 quarters of the financial year, we will definitely make it up because receivables will be more and we will execute the work of sewer laying in that period, we will make it up. And STPs and WTP works and other building works are in progress with full swing as of now also. That's it. Thank you.
[Operator Instructions] Next question comes from the line of Paras Chheda with Purpleone Vertex Ventures LLP.
Just a couple of questions here. We understand that this quarter or last -- the second quarter [Foreign Language] So second half may we will be able to catch up, right? So now, connected to these, sir -- operating margins, EBITDA margins that used to be in the region of 28% to 30% [Foreign Language] which now, of course, for the last 2 years has come down to 26%, 27%. So on a full year basis, [Foreign Language] Q1 was about 23% odd. So for a full year basis, what kind of and longer-term sustainable EBITDA margins [Foreign Language] we understand there is competition et cetera, but just [Foreign Language]. That was one.
Yes, this is a civil engineering industry. [Foreign Language] but we are definitely looking for more than 20% every time, and that is our PAT basically there. And the growth of the revenue, 25% to 30% we are still looking for because we are managing in a way that rainy season is affecting our Q1 and Q2, but it cannot affect our yearly performance on revenue basis. That is -- we are managing -- [ similar like ] that only.
So 20% of PAT margin [Foreign Language] basically and not EBITDA margin.
Correct. Correct. PAT margin, correct.
Okay. And 20%, 25% on a...
We are consistently giving that margin since last -- plus or minus 1% is always there in such industry because we take the work on EPC basis from the government and some contracts may give a bit better results and some contracts may shrink the margins. But 20% plus/minus 1%, 1.5% is our target for every time as far as a stand-alone profit of the company is concerned.
Yes. So just to be very clear, so let's say, sir, about last year, INR 1,000 crores range [Foreign Language] INR 972 crores to be exact, but INR 1,000 crores [Foreign Language]. And say, we say get 20%, 25% growth [Foreign Language] for somewhere around INR 1,200 crores, INR 1,250 crores revenue [Foreign Language] about 20% PAT expectation [Foreign Language].
Correct. Correct. Correct.
Okay. Understood, sir. And then second question, sir, as of now, [Foreign Language] current order book [Foreign Language] outstanding and what is the amount of the bids that we have put into the system?
The current order book unexecuted orders is around INR 2,500 crores. And we have achieved -- we have successfully achieved 2 orders of worth INR 200 crores in this financial year also. And our pipeline -- tenders in pipeline is about INR 4,000 crores.
Okay. And on that, sir, [Foreign Language] win ratio are you expecting, roughly, in '26?
Usually 15% type of thing plus/minus something. So we can still get INR 600 crores up to December this year. And this is a continuous process. We keep on bidding and keep on getting orders. So INR 600 crores we can still get. So it will be around INR 3,000 crores by the end of December, the order -- unexecuted order book. And we can easily do the turnover of INR 1,250 crores, INR 1,300 crores, because in this typical -- the completion period is about 2 years. So we could calculate it on the basis of 2.5 years. So 40% of the order book, we can always execute with these assets.
Okay. Understood. Sir, last query [Foreign Language], in terms of government focus on water projects and government spends basically. So sir, medium-term outlook, [Foreign Language] whether this has sort of peaked in terms of -- in terms of business growth for the industry? [Foreign Language] I mean, in terms of growth potential -- spending from the government side, is that sort of being capped because some water supply projects, Jal Jeevan [Foreign Language]. So how is that being addressed or [Foreign Language] business growth?
Actually, this is a confusion with the Jal Jeevan Mission. So though we are not executing any work of Jal Jeevan Mission even then, I would like to explain something about Jal Jeevan Mission also. What happened in Jal Jeevan Mission basically, there is an allocation of the mission from the Central Government around INR 3 lakh crore for the mission.
What happened, they estimated that in every district there will be a work of INR 300 crores, INR 400 crores for all villages. But when the real estimates framed, they appreciated quite higher side, say, around INR 1,000 crores per district or even INR 2,000 crores per district. So in all over India, this is the scene that the tendered amount of the work was much, much higher than the allocation for the funds. So what happened, the execution also happened, and receivables of the companies have increased because funds were having the cap from the Central Government and the State Government. So this happened in Jal Jeevan Mission, which is giving something unwanted [ similar ] type of thing that there is a shortage of fund in Jal Jeevan Mission and all that.
As far as we are concerned, we are not at all doing any work of Jal Jeevan Mission. We are concerned only with the Central Government funded with schemes like AMRUT, Namami Gange, that is NMCG and [indiscernible] ADB-funded schemes. These are giving only on the basis that there are funds available for that. So we are not having any crisis of fund whenever the work is executed -- because all tenders are done as a mission by the State Mission Director, and that is sent to the Central Government for the consent of the funds, after the consent of the fund, tender is done and tender is accepted. So there is no issue of funds in AMRUT.
And your other question was probably taking the -- scope of the work into consideration. How much scope is there in coming few years or coming...
Going forward wastewater projects been...
Yes. So let me tell you that about INR 15 lakh crores potential of the work is there only in urban cities, like municipal corporation, municipalities and town area committees. So we have only done INR 3 lakh crore in AMRUT. So you can understand that the 4 AMRUT -- up to 20 years, we will have the same flow of the funds because this is now the mission taken by the Central Government.
As an act -- as a Water Act, the responsibility lies with the municipal corporation for supplying the drinking water and to dispose of the waste water from every household. So the scope is tremendous, and I mean so much scope is there that 50, 60 companies of our size can be saturated with the workload without any issue for as many years as we are living on that. So that is the question, I think I've answered the scope of the work. And the further enhancement of the work is reuse of the wastewater basically because we are going to become a water crisis country and so many places in India are dark places, brown places, and we are having water scarce. So we are now making the schemes which are based on the reuse of the water, means the wastewater is treated to the stringent parameters fit for the, either for agriculture or for washing or for gardening or even for the use in boilers of NTPC, BHEL, and there are so many regulations, so many acts, which are working for that. So now the scope of work, quality of work, quality of wastewater treatment is continuously increasing. So there is no -- I mean, there is no second thought that we will be at any time losing the scope of work for us.
Right. So basically, the growth will continue, more or less, is what you're saying because there is huge potential pending, right? And secondly, [Foreign Language] focused water and sewage projects [Foreign Language], give and take -- there is no thought process of...
[Foreign Language] water or waste water may 75% business [Foreign Language]. That is 1 reason. Other reason is [Foreign Language].
[Operator Instructions] Next question comes from the line of Tejas Khandelwal with Prudent Equity.
So my question was for this EMS Realtech Private Limited, which we have acquired recently. So what kind of operation does that company have? And what kind of projects the company have in real estate?
[Foreign Language]
Tomar, sir, [Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
Okay. [Foreign Language] I can see that it is a related party transaction. So [Foreign Language]
[Foreign Language]
Okay. So second question was on this order book only. So in how many contracts are we L1 bidder as on today?
[Foreign Language] that is at Fatehpur, UP. That is for around INR 185 crores. We are L1 bidders, and some formal meetings are going on at the government level, they will approve it and we will get a letter of intent, say, within 15 days or so.
Next question comes from the line of Dinesh Kulkarni with Finsight.
Sorry, having some work issues and not able to connect and I may have missed some questions. But sir, can you just repeat once again, like if you can -- you have mentioned that [Foreign Language] -- will be able to achieve 25% of the growth for this year as well. [Foreign Language] it will remain or it will be lower than what we're expecting on EBITDA margins?
No. We will achieve our revenue growth -- the projection for our revenue, that is around INR 1,200 crore or INR 1,250 crore. And in terms of percentage, it will be around 25% for this year. And EBITDA margin will remain almost same, with plus/minus 1% is always there, but it will remain the same -- in terms of percentage of course.
Yes. Definitely. Sir, a question in terms of [Foreign Language], what you're saying [Foreign Language] -- we are not able to do our work because of the rainy season and all that. Has this impacted our working capital requirements in any ways that you are like [Foreign Language]...
No. We are even doing the less work. So we are getting less payments. Our payment cycle is same, still whether it is a rainy season or not. So there is no payment crisis because whatever we are doing, we are doing less, and we are getting less. And when we will do more, we will get more. So no payment cycle is affected in any way.
Okay. So that is not impacting our current liabilities in any way, right? [Foreign Language]...
Not at all. Because all the work is from government. If we are doing less, we will get less. If we will do more, we will get more. So payment cycle is not affected.
Okay, sir. And sir, [Foreign Language] we wanted to acquire this Brijbihari, the paper company update on that, like what is the status, final status on that? Now how much of we have paid for that and final thing?
Yes, sir, that has already been done. It was already communicated in the March 2025. Yes. So we have acquired 60% stake in that company.
Okay. So are we planning to acquire the rest 40% or like -- I mean I don't see any reason to keep it as a minority subsidiary company. Any reason for that?
By paying 60%, we are able to use that land for 100% value. So I think we don't need to pump in more money into that company. We are only using that company to pledge the land as collateral for getting bank facilities in shape of bank guarantees, So that purpose is already being served.
Sure. Fine. But just still the question we had last time when we discussed. So what is the purpose of the land? Obviously, we are mortgaging kind of a thing or using it as a collateral, but still...
That is the purpose of the land.
Yes. But still the land remains vacant, right? I mean what's the use of the actual -- is there anything product happening on the land?
No. It was a running company. We acquired it from NCLT. So the operations that are going on that land are in addition to the value that we paid for.
Okay. So what is the worth of operations I want to understand in terms of, say, revenue and...
I think -- revenue-wise, I think it is going to generate revenue of about INR 100 crores per year. And margins as it is a manufacturing unit, margins would be in the range of 6% to 8%. So this is without requiring any money being pumped in from the owning company.
Right. So 6% to 8% is the PAT margin you are seeing, right?
Yes. So that is additional that we are getting without putting in any money.
So basically, we can assume 60% of that earnings and -- but the revenue belongs to EMS, right?
Yes. Yes.
Okay. And with no further CapEx plans on this.
Yes. No further CapEx plan.
Next question comes from the line of Rishab, an Individual Investor.
[Foreign Language] fundamental question. Firstly on, [Foreign Language] planning to grow at a 25% growth number and roughly [Foreign Language]. Given our cash cycle, most likely you'd [Foreign Language]. So what is your expected gross debt assumption debt-to-EBITDA estimate.
[Foreign Language] I think this is mistaken already because we are debt-free as of now. [Foreign Language]. In addition to that HAM project, in which that is a mandatory to take that to provide equity and to do the financial closure, so there is no debt on our company -- on EMS Limited. There is no debt till date. We are debt-free company, except that the HAM project, which is a separate SPV, and that is having a debt as a financial closure. So we are debt-free already.
Already, we have never taken debt basically. We have the facility for debt, but we have not taken debt. And we are not looking for debt. That is why we always say that we are looking for 25% to 30% growth because this is the organic growth, which we can maintain with internal accruals without taking debt. So that is our philosophy otherwise seeing the scope of work we could have grown with the 50% also, but that is 25% to 30% growth is our target because we don't want to take any debt, that is our company policy that we won't take any debt as per the thing at present.
Understood. [Foreign Language] order book is currently, roughly INR 2,500 crores, right? [Foreign Language] expected execution timeline, is it like 12 months, 12 to 18 months, [Foreign Language]?
Actually, in different tenders, there is different time of completion. And usually it is 2 years. Usually it is 2 years and sometimes it is 1.5 years, somewhere it is 2.5 years. So usually, if you take an average, the completion period is 2 years. But as a safety, we presume it to be 2.5 years because there is some period which is used in engineering, design, survey, finalization and approvals. So we take it 2.5 years. So it is very safe to assume in our industry -- our type of industry that whatever is the order book you can execute 40% of that order book in coming years. So other [Foreign Language]
Okay. Sir, one last small request. If the company can provide quarterly presentations, I think Q1 [Foreign Language]. So that would really be helpful for the investors.
Q1 presentation, yes that we will upload.
Next question comes from the line of Vineet with Ashika.
Question is related to this execution risk [Foreign Language] so are we looking into next quarter [Foreign Language]. So are we looking to ramp up existing products like power distribution, doing more O&M contract this time for the next -- so you don't see no obligations to reach to that target -- similar target?
I got your question. Basically [Foreign Language] every June, every first quarter after this April to June is always a slower quarter. In place of 25% of the revenue, usually we complete 20% revenue of the total year. It is a trend of the industry. Because in March we get all the receivables. So in June it is generally a slower quarter. And next quarter is also slower because rainy season starts usually from July, and it ends up to August and mid-September. But this year, it was 15 days earlier, most of the places, rainy season. That is why although we set up that quarter-to-quarter we are still 4% up in terms of revenue. But because we lost our 10 to 15 days, that comes around 12% to 15% of the revenue we could have generated by doing the work in that period, which we couldn't do. As far as fetching up in the whole year is concerned, we are still doing a lot of work, not in the field of sewer line and water supply, we are still doing the works related to STPs, buildings, WTPs, and all other ones, which are not being affected by the rainy season.
We are also doing the necessary procurement on the sites. So we are not sitting idle basically in the rainy season. We are doing it. And that procurement will ultimately be converted into the real civil work, and that will generate the receivables from the time when monsoon season is off, say, by the end of September or something.
So usually, those people who are doing the storm water drainage work, sewerage work, water supply laying works, they are usually 40% in H1 and 60% in H2. That is the usual trend all along the year. If you see our history, you will find like that only. But this year, it could remain 35% in first half 1 and 65% in H2, so -- due to that rainy season, but it is not affecting our overall revenue or overall profits. This is just an unprecedented rain which has caused some hindrance and affecting and apparently giving the results as they have grown only by 4%. So I think I have made it clear how it goes.
Next question comes from the line of Paras Chheda from Purpleone Vertex Ventures LLP.
I mean, business wise, at least we wonder, sort of -- only 1 thing my end. [Foreign Language] there's a significant investment in Polymatech Electronics [Foreign Language]
[Foreign Language]
So as of now [Foreign Language] is what the thinking is?
Yes.
Next question comes from the line of Pankaj Motwani with Equirus.
Sir, I just have one single bookkeeping question. So like as per your disclosure, this Brijbihari company, so like you were saying this -- like the Brijbihari company is using 20% of the property plant equipment and for the...
Can you please talk a bit louder?
Sir, I saying this Brijbihari company, so like you have mentioned that the 20% -- like you are using 20% of the property plant equipment in this company. So -- and the rest, 80% is not being used. So like you are not charging depreciation on this effect. So my question is like the -- as per Ind AS 16, so like the depreciation will start, like whenever the asset is intended, like the asset is available for use. And so my question was on the -- like I said -- like if you have the asset available for use. So why aren't we charging depreciation on the same?
Just wait a second, please. So sorry, I was not able to -- I think, correctly understand your question. But I think you're asking if we are claiming depreciation on the asset. Is that your question, sir?
My question is, like you said, this 80% of the site, we are not using -- that's why we are not charging depreciation on that.
No, I don't think I ever saying that. The only depreciation that we faced was that, we have acquired 60% stake in that company.
Yes, I got it. But I'm saying this disclosure is in your Q1 results. That's why I am asking.
Where in that Q1 results.
So it's on Page 11, footnote number 8.
We are not using 100% of the machine that is present there. So I think we are only claiming depreciation on the machinery that are currently being used.
Yes, that I understand. But as per Ind AS 16 -- what Ind AS 16 says. So as per Ind AS 16, depreciation should start when the asset is ready for use irrespective -- if we are not using we should book depreciation.
It is not put to use, sir.
I'm saying depreciation should charge whenever the asset is ready for use, irrespective...
The whole asset is not ready for use.
Okay. But I think as you have said that this company was actively working before our acquisition. So like my asset was not ready...
The whole plant was not operational. There are 4 to 5 machineries. Out of that, 2 machineries were operational.
Okay. So like we have to incur more CapEx on those machineries?
No, we don't plan to invest any money in this company. If the company is able to generate money to start those machineries, then it may start. But EMS Limited is not going to pump in any money in that company. Our primary objective was to use this land for mortgaging to the bank, and it will remain so. Any business or income that is related in that company through its own assets or -- what is additional benefit to the company.
Okay. So like if those machinery -- like you don't want to use those machineries. So any plans...
We don't want to put in any money in that company because it is not our primary line of business. But if that company on standalone basis generates enough revenue or income to start those machineries, then it is fine.
Sorry about this. Just I'm saying the 80% of the machinery, so like -- those 80% of machinery -- like do you want to sell them because you are not using them and you don't want to...
Yes. We are also thinking on that line. We are assessing the scrap value. If it is acceptable and seems the market -- the rates seem appropriate, then the company may decide to scrap those machineries.
[Operator Instructions] Next question comes from the line of [ Ruth Visweswara ], an Individual Investor.
Ram, Tomar. I have been invested in your company for about 2 years now, and it's been a good journey. [Foreign Language] which I wanted to ask, the rate of order flow on [Foreign Language]
Rate of order flow, if you can explain a bit more, what does it actually mean? We are getting continuous orders and our unexecuted order book is increasing continuously. And the bidding we are doing is also increasing. We are under more than INR 4,000 crore bids in pipeline and INR 2,005 crores order book in hand. So exactly, I couldn't get your valuable point basically what we intend.
Yes. Before you had joined, sir, about 9 months back, [Foreign Language] at that time our order in hand was about INR 2,000 crores, INR 2,200 crores. And the number of bids we had done about was INR 4,000 crores and INR 4,500 crore, [Foreign Language]
So whatever orders we are going, we are also executing now. That is why -- this is as on date unexecuted order book. Once the execution is done, that is deducted from the standing order books. So we have...
[Foreign Language]
Exactly. Rather, we have executed, say, in last 9 months, INR 600 crores, INR 700 crores order, so that is deducted from the -- at that time order book, it is deducted and fresh order, it has added. So now it has achieved INR 2,200 crores to INR 2,500 crores order book. So order book is increasing, that is net order book basically. It's not only that this is the order book which is freezed.
[Foreign Language]
[Foreign Language] This is always calculated as unexecuted works basically, unexecuted work in our order book in our terms.
[Foreign Language] Whenever you win an order, I think it will help if you make that announcement so that the positivity continues to stay. That is one part.
My second question is, L&T has also come into this line in a big way, because I have seen some wins from that side also on the sewage business.
Can you please repeat it?
Larsen & Toubro [Foreign Language]
[Foreign Language] they are doing the works of STP and WTP as a standalone because that is the work which is being executed in a campus sort of thing. So in that -- at their [indiscernible] also there is diesel plants and WTP and STP. [Foreign Language] they must be knowing better.
[Operator Instructions] Next question comes from the line of Parsad, an Individual Investor.
So I have 2 questions, sir. On promoter pledge. So we have around 7% of promoter pledge, which has been increased to 11%. So may I know the reason, sir?
Yes. So there was -- we acquired some property on a personal basis. For that some fund was raised by pledging of the shares.
Okay. So is there any timeline this pledge will be reduced on any time frame like 12 months down the line, 18 months down the line?
I think the pledge is not substantial, but I think coming 1, 1.5 years, yes, this pledge will be removed.
Got it. Okay. So just 1 more question here. So are we doing business in Punjab? So currently, Punjab is badly impacted by monsoons, right? So are we doing any business there?
Can you please repeat that?
Are we doing any business in Punjab, sir?
No. Currently, we are not executing any product in Punjab.
Okay. So due to this rainy season, I do understand based on your commentary, like our revenues will be impacted. So looking into the equation that you have shared, 35% in H1 and 65% in H2. So we may see a decline on quarter on -- year-on-year quarter basis kind of Q2, right, sir, is my understanding right?
Yes, I think that's right, but we are going to maintain our guidance for year-on-year basis.
Next question comes from the line of Dinesh Kulkarni with Finsight.
[Foreign Language] as you mentioned, we'll be doing some 25% revenue growth this year, which is great. And so the paper company, you're saying like INR 100 crores of revenue you're expecting. So this 25% growth is inclusive of INR 100 crores or excluding this...
No, no. That guidance is for EMS Limited on a standalone basis. Any revenue generated by our subsidiary would be in addition to that.
So that is like -- because see, this is a 60% subsidiary, so we'll do a full consolidation, right? So on a consolidated basis, it will be INR 100 crores plus we have to do, right?
Yes.
[Operator Instructions] Next question comes from the line of Paras Chheda with Purpleone Vertex Ventures LLP.
[Foreign Language] which, of course, market conditions have changed. [Foreign Language] And what was that money at some point being targeted for. [Foreign Language] some point?
Yes. So it is under process. You see this whole process is guided by the market. So as soon as the market stabilizes and if any deal is finalized, then you will surely get to know.
But, sir, [Foreign Language] and whenever it happens, what was the purpose typically? I mean generally or physically [Foreign Language] debt-free. Just trying to -- of course, higher equity will be used for certain business purposes. But just trying to understanding cap purpose [Foreign Language]...
For executing large HAM projects, we were looking for that.
Right. And those opportunities continue to exist?
Yes, those opportunities continue to exist and frequent tenders are floated by various departments on a regular basis.
So it is about good market timing eventually and then we'll hopefully look to enter that space also.
Yes.
Next question comes from the line of Ruth Visweswara, an Individual Investor.
Sir, we had picked up one HAM order. Do we plan to continue to bid during the next few months on HAM products? Or we will wait for completion of the existing HAM products and then...
Actually, the HAM project, which we have undertaken is already complete, and we are getting annuity since last September, that is around 1 year, we are getting annuity for that. And basically, what is happening in particularly NMCG, that is National Mission for Clean Ganga, there are so many projects being floated as HAM project. The intention of the mission -- intension of the Namami Gange mission could be that if you do the work with the -- some CapEx of the government and some CapEx of the SPV, so you do the good work and maintenance for 15 years is also done. So there are so many projects only in UP and India wise, they are coming from the government side. So we are definitely intending to go for the HAM project of the ticket size of INR 500 crore plus. So for that, we were planning for this fund raise and all that, and that is still under consideration. And we are bidding for that. As soon as a bidding process itself take 4, 5 months minimum for -- because HAM project bidding is a bit different and it's more cumbersome bidding than the EPC projects. So we are continuously behind it to get the work because that is our field. National Mission for Clean Ganga and river regeneration, river pollution abatement works, that is our field basically. So we are definitely looking for HAM projects. And the fundraising phenomena or the fundraising concept was for that HAM project only.
Sir, 1 last question. FY '26, we expect to do about INR 1,250 crores. What's the plan for FY '27 and '28, sir?
Actually, I can tell 1 thing that since the inception of the company, it is almost 12 years when we are having the balance sheet. So in 2012, '13, we were at INR 109 crores. Then after 6 years, in 2018, '19, we were INR 313 crores standalone. And in 2024, '25, after 6 years, again, we have INR 939 crores as standalone. So that is a cumulative progress of 20% per annum in revenue. And in these 12 years, 2 and 2.5 years were COVID affected. So we also remain stagnated like other companies remain. So we got an average growth of 23%, 24%, and we are still looking for 24%, 25%, not for this year, but the years coming ahead, so many years to come. We will try to grow by 25% to 30%. So that is our target as a long-term perspective.
[Foreign Language]
The order book is sufficiently growing because we have the INR 2,500 crore unexecuted orders. Basically order book and unexecuted order book could slightly confuse anybody. Unexecuted order books, we have already raised the bill against these orders. The INR 2,500 crores order book is still there. I can complete in 2 years. So 2 years, even if I don't get any order, I will do the INR 1,250 crores work. So order book is sufficient, and we are continuously getting the orders and the bids are in pipeline is of the order of INR 4,000 crores. So that is like that we are growing in terms of orders, we are growing in terms of orders in pipeline. We are growing in terms of bidding process, and we are in line perfectly to grow with the 25% to 30% growth revenue-wise.
Right, sir. [Foreign Language] any view on your long-term perspective will really help, sir.
[Foreign Language]
[Foreign Language]
[Foreign Language]
Next question comes from the line of Paras Chheda with Purpleone Vertex Ventures LLP.
[Foreign Language] we should aggressively bid for. And in the time [Foreign Language] we can probably take a short term [Foreign Language] we can just replace that whenever market conditions are favorable. But business opportunity [Foreign Language] so I think we should go for that [Foreign Language].
[Foreign Language] that is nothing like [Foreign Language] and they can grow faster and better. But as far as our policy is concerned, the company management doesn't think we should go for any debt. So this is...
[Foreign Language]
Your suggestion is not at all denied, that is a good suggestion, of course...
[Foreign Language]
[Foreign Language]
[Foreign Language]. So in a certain proportion, let's say, [Foreign Language] balance sheet...
[Foreign Language]. So we are behind the HAM project tenders. And we are doing it. And in EPC also, we are look -- basically, we have to look for the good tenders also. At our pre-bid engineering team work, every tender we don't participate basically. So we have to see so many things in the tender, how much is the pipeline, what is the STP capacity, how we can make our profit whatever we think that we should get. So there are certain criteria. [Foreign Language]. We are daily preparing for the bids. [Foreign Language] that will ease our condition, and we can further increase the growth to 25% to 30%, 35% also in future, let us see. But as a guidance, we can guide for 25% plus.
I mean, overall -- I agree with you [Foreign Language]
[Foreign Language] and we will definitely consider [Foreign Language]
Ladies and gentlemen, due to time constraints, we have reached the end of question-and-answer session. I would now like to hand the conference over to Mr. Ramveer Singh, Promoter and Chairman, for the closing remarks.
Thank you. [Foreign Language]. Thank you.
Thank you. On behalf of EMS Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.