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EMS LIMITED — Call Transcript 2026
Jun 3, 2026
59827_rns_2026-06-03_aadb848b-86db-43e4-9621-a5028d906920.pdf
Call Transcript
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EMS
June 03, 2026
| BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 | National Stock Exchange of India Limited Exchange Plaza, C-1, Block-G Bandra Kurla Complex, Bandra (E) Mumbai- 400 051 |
|---|---|
| Scrip Code: 543983 | NSE Symbol: EMSLIMITED |
Sub: Transcript for Earnings conference call with investors and analysts- Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations")
Dear Sir/Madam,
This is with reference to our earlier intimation dated May 26, 2026, filed with the stock exchanges in terms of Regulation 30 of the SEBI Listing Regulations, 2015 regarding the earning conference call to discuss the Audited Standalone and Consolidated financial results for the quarter and Financial Year ended March 31, 2026, scheduled on Saturday, May 30, 2026.
Pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 we are enclosing herewith the Transcript of Earnings conference call with various investors and analysts held on Saturday i.e. May 30, 2026.
The Transcripts of Earnings conference call is also available on the Company's Website i.e. www.ems.co.in
Kindly take the above information on your records.
Thanking you,
Yours faithfully,
For EMS Limited
(Formerly known as EMS Infracon Private Limited)
ASHISH Digitally signed by ASHISH TOMAR
Date: 2026.06.03 11:21:12 +05'30'
Ashish Tomar
Managing Director and CFO
DIN: 03170943
Encl: As Above
EMS
sustainable growth
EMS Limited
CIN: L45205DL2010PLC211609
ISO 9001:2015, ISO 14001:2015 & ISO 45001:2018
(Formerly known as EMS Infracon Private Limited)
Corporate Office: C-88, RDC, Raj Nagar, Ghaziabad, Uttar Pradesh-201002 (India)
Registered Office: 701, DLF Tower A, Jasola, New Delhi, Delhi-110025 (India)
Phone: 0120 4235555, 4235559
E-mail: [email protected]
Web: www.ems.co.in
EMS Limited
Q4 & FY '26 Earnings Conference Call
May 30, 2026
Moderator:
Ladies and gentlemen, good day and welcome to the Earning Conference Call for Q4 and FY '26 for EMS Limited.
As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the management discussion concludes. Should you need assistance during the conference call, please signal an operator by pressing '*' and '0' on your touchtone phone.
EMS Limited was incorporated in 2010 by Mr. Ramveer Singh and Mr. Ashish Tomar and is involved in the business of Sewerage Solution Provider, Water Supply System, Water and Waste Treatment Plants, Electrical Transmission and Distribution, Road and Allied Works, Operation and Maintenance of Wastewater Scheme Projects and Water Supply Scheme Projects for Government Authorities.
Let us now begin with the Introduction of the Management. We have with us today, Mr. Ashish Tomar, Promoter and Managing Director of the company. Also joining us today is Mr. H. K. Kansal, Chief Executive Officer.
I would now like to hand the conference over to Mr. Ashish Tomar, Promoter and Managing Director, to give his opening remarks. Thank you and over to you, sir.
Ashish Tomar:
Good afternoon and thank you all for joining EMS Limited's Earning Call today. I am Ashish Tomar and I will be opening today's call.
I want to begin by acknowledging the hard work of our teams and the patience of our investors and partners. We know this quarter's results are disappointing and we take full responsibility for keeping you informed and accountable.
The shortfall this quarter was driven largely by factors outside our direct control. Several of our projects were delayed because required government permissions were not granted in time and a prolonged cash flow constraint on the government side has delayed payments to contractors, including us.
These issues constrained our ability to operate at planned capacity and materially impacted revenue and margins. While these are external challenges, we have already taken concrete
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steps to mitigate the impact and strengthen our resilience, intensifying engagement with relevant government stakeholders to expedite permissions and payments, reinforcing our working capital management and contingency planning to reduce vulnerability to counterparty delays, reprioritizing projects and controlling discretionary spending to focus on high-value, lower-risk work streams, and preparing clear milestones and metrics so we can demonstrate progress and restore confidence.
Mr. H. K. Kansal, our CEO, will now walk through the quarter's financial results in detail and explain which projects and regions were affected and outline the specific actions and timelines we are committing to. After these remarks, we will open the call for questions. Thank you for your continued interest and for joining us today.
I will now turn over the call to Mr. H. K. Kansal.
H. K. Kansal:
I am H. K. Kansal – CEO of the company. As Mr. Ashish told that the results are not in the line of expectation and somewhat disappointing to the investors and to us also, but that is not due to any sudden drop in strategy of the management. It was just, you know, there are certain reasons which I would like to draw attention of you that the results looks like falling that much.
So, first of all, I will come to the results. FY '26 Quarter 4 has the total revenue is the 84 as a standalone of EMS Limited and consolidated revenue is 120. And that is a very significant fall from the last year's similar period. And FY '26 as a whole year, the standalone revenue is Rs. 608 crores and consolidated is Rs. 732 crores. This is again about 36%-37% fall from the last year due to the major contribution comes from the Q4 revenue.
So, the main reasons for this which I would like to draw attention that as you could see in our balance sheet probably our inventory has increased about Rs. 100 crores because the works which are having some milestones couldn't be completed up to that extent and the inventory got generated. That is called work in progress.
At certain places, we have put the material on. At certain places, we have done the partial work and milestone couldn't be achieved. So, you know, that is around Rs. 100 crores. If that could have been billed, that could be the Financial Year Q4 result would be looking like 184 type of thing as a standalone, not the 84. So, this is one of the reasons.
The other reason was the West Bengal election. And the election, what happens that once the elections are declared, so all the works of the nature which creates the hindrance in the public life like digging the roads for laying the sewer because we are having a big project of around Rs. 780 crores in West Bengal which mainly have the STPs and the sewer laying works.
So, sewer laying works need extensive digging in the roads. So, in election, the ruling party doesn't want the roads are dug and the public may go against the government's verdict,
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government's favor with the reason that the public should not feel inconvenient. So, the work is stopped. That is the general practice before election of any state.
So, from there only we were expecting minimum Rs. 70-80 crores revenue in the quarter with the reason that that has a Rs. 780 crores project. 500 something crores is the project for the CapEx work and we have to complete this work in six quarters. So, around Rs. 70-80 crores per quarter had to be done, which was 100, and we could only do for Rs. 20 crores work. So, that is a shortfall.
Some issue of bitumen supply was also seen after this West Asia disturbance in Uttarakhand also where we have done the restoration of work of roads up to the subgrade level and that is of course not a milestone. We could have billed the amount once the bituminous layer is laid on the road for the restoration. So, that was a drawback.
Third thing is the government has changed the payment system from the state and central government alliance. There is a new portal now in the capital of every state which ensures the share of the Central government and the state government. So, that is internal payment system.
So, that is called SPARSH and that is taking its gestation period and payments are still not normal because Central government has to put the share and the state government has to put the prorata share, whatever is the share of the state government. Then the payments can be made. So, that is a common escrow type of account that is done by the Treasury of the Reserve Bank of India.
So, that is the third reason and there were certain issues which were related to the heavy rainfall particularly in Uttarakhand area where the property, the transmission lines got damaged and restoration work had to be done first and then after we were allowed to dig the roads.
So, these are the factors which happens in civil engineering. I mean, this is sometimes in 3-4 years this cycle comes and that happens. So, that is our reasoning for so low revenue collection in this FY '26 Q4 particularly and which impacted the FY '26 the whole year's result.
So, that is from my side and I think now the people can ask question-and-answer.
Moderator:
Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Atul Kumar, an individual investor. Please go ahead.
Atul Kumar:
Thanks for the opportunity and also explaining the reason for fall in Q4 revenue and also the profit. So, basically my question was if all those reasons, let's say, would not have happened, what sort of top line and bottom line you were expecting in Q4 at consol level?
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H. K. Kansal:
Sorry, couldn't get exactly the question. That would have been I think of the order of Rs. 250-240 crores. Because Rs. 100 crores we have increased the inventory that directly adds into Rs. 84 crores. That becomes Rs. 184 crores. And some restoration works we couldn't do particularly of the road restoration work. So, that could be again Rs. 30-40 crores. And West Bengal elections had affected as I told you. That could add another Rs. 50 crores minimum. So, it could have been Rs. 250 crores crossed.
Atul Kumar:
And also then margin number also would have looked better. Right now, I think at consol level it is 15%. That could also have been better.
H. K. Kansal:
Exactly. Margin is basically a pseudo figure which is being reflected with the reason that suppose there are works going on different sites. So, our total cost of establishment cost, watch and ward cost and there are certain costs which are included in the tender conditions, like restorations of the work which comes into dilapidated condition after rainy season or something.
So, we had to deploy the capital and in return we couldn't get anything. So, that is the reason that this margin is looking. So, basically this margin doesn't carry much meaning in case of the civil engineering project.
Once the whole inventory is clear and every unbilled bill is done, then margin will again come to 16%-17% or minimum 15% in coming quarters. It may take to restore everything further 2 or 3 quarters. Till next year FY '27, we will be able to control all the damage and to restore the things which is seen on the balance sheet and on the margins, etc.
I think I am able to answer the things.
Atul Kumar:
And also, sir, the effective tax for the Q4, it comes around 60, roughly 60%. Is there a reason that that is not seen very high?
Ashish Tomar:
Can you please speak up, sir? We could not hear you properly.
Atul Kumar:
I was saying the effective tax for Q4 also comes at around 61%. Is there a reason the effective tax is that high in this quarter? And I think that is lowering the net profit just to Rs. 6 crores.
Ashish Tomar:
Are you talking about the standalone basis or consolidated figure?
Atul Kumar:
The consolidated basis, the tax rate.
Ashish Tomar:
We will just have a look.
Atul Kumar:
I am talking just about Q4, not the whole year.
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Ashish Tomar:
No, sir. I think the tax figure would be something around Rs. 38 crores. The tax figure is 38 crores against the revenue of about Rs. 732 crores. So that comes out to nearby around Rs. 5 crores.
Atul Kumar:
No, sir. I am talking just about Q4, not the whole year and also at consol level.
Ashish Tomar:
Just Q4.
Atul Kumar:
Yes.
Ashish Tomar:
Just give us a moment. So, in that also, against the revenue of Rs. 120 crores, the tax is about Rs. 4.30 crores for current tax.
Atul Kumar:
Okay, sir. I will check with you. So, I will check.
Ashish Tomar:
That comes out to be around 7%. Yes.
Atul Kumar:
Also, sir, at current stage, like after Q4, what is the unexecuted order book that we are starting FY '27 with? And what sort of top line we are expecting? I think in earlier conference calls, you have given guidance of growing at a rate of 30%. So, could you share some details on what top lines and bottom lines you are expecting for the coming year?
Ashish Tomar:
Yes. So, the order book is as on 31st March 2026, the order book stood at Rs. 1,837 crores of unexecuted work. After that, we have received orders of about Rs. 209 crores from UP Jal Nigam in Varanasi. And within this month, three more tenders are expected to be finalized there. And considering that the rate that we bid for are similar to the ones that we secured, we are quite hopeful of turning those bids into work orders.
Apart from that, almost about Rs. 2,500 crores to Rs. 3,000 crores of tenders are in pipeline that we are bidding for in Delhi Jal Board and also some projects in Maharashtra. So, we are hopeful of securing work in excess of about Rs. 1,500 crores this year. That is our plan.
And considering that, since the typical timeline for completion of work is about two to three years, against a work order of about Rs. 3,000-odd crores, we should be able to target a revenue of about one third of that, somewhere about Rs. 1,000-odd crores. So, that is the plan.
Atul Kumar:
And also, sir, in your earlier response, you said that we should get back to the normal range of EBITDA margin of 15%. But in the past, sir, you have done 25%...
Ashish Tomar:
No, we are talking about PAT margins, not EBITDA. EBITDA would be...
Atul Kumar:
PAT margin of 15%.
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Ashish Tomar:
Yes.
Atul Kumar:
And also, sir, if we are targeting 1,000, that means in FY '25, we have done about Rs. 1,000 crores top line, Rs. 966 crores to be precise. So, you are saying in '27 also, we are targeting 1,000. So, is it like, it has been brought from FY '26, but if we look back one more year, we have already done Rs. 1,000 crores of top line. So, are we being conservative in giving the target or can you throw some light on that?
Ashish Tomar:
Because we are navigating some troubled waters as far as geostrategic conditions in the world or the funding that is deployed by government in the sector. See, all the work that we carry out is dependent upon funding being released by the government on a timely manner. So, since there has been some delay on their part, so the pressure can be seen on balance sheet also.
Atul Kumar:
So, that would be all from my side. Thanks for taking the question. If there are more, I will get back in the queue.
Moderator:
Next question is from the line of Azhar, an individual investor. Please go ahead.
Azhar:
First of all, thank you for giving me the opportunity to ask you the question. So, I just have a couple of questions. So, firstly, if we look at earnings call Q2, that was held on 14th Feb and the commitment was, I asked this question if the company is facing any balance sheet stress or if you need any funds in near term. The answer was that we don't have any stress on the balance sheet. Just 10 days later, I see this earnings file that you are raising funds up to Rs. 300 crores. Not probably up to Rs. 300 crores.
And also, to the another question was said that there is a plan of reducing pledge. Just 5 days after we received the exchange filing, that 4.5 lakh shares were pledged to Tata AIG, which was later released, but then that has been increased.
So, then go back to Q2. We grew in Q2. And it was said that we will cover some days, lost days in Q3. In Q3, obviously, that rain and landslides happened in Dehradun and we were expecting revenue from Dehradun. That didn't work out well.
So, I asked this question that FY '26 is a goner. So, what is our plan for FY '27? Do we see ourselves outpassing FY '25? We did somewhere around Rs. 1,000 crores in FY '25. And the commitment was yes, and we will recover some losses in Q4. If we look at Q1, FY '26, the commitment was to bring the pledge to almost zero by the end of FY '26. That didn't happen.
I just want to understand, why do we have this misinformation on every con call because it doesn't make sense. It doesn't draw a nice picture that when we are holding an earnings call, we are committing something. But happening within a week, within a fortnight, is completely
different. That doesn't boost the investor confidence. That actually shadows the company image of giving fake commitments.
Ashish Tomar:
Sorry for that, sir. But as far as our commitment for delivering growth is concerned, see, all the commitments were given earnestly with true intent. But since our performance is also dependent on payment...
Azhar:
I am sorry to interrupt there, but how can I plan that I don't have any fund requirements for the next six months, and then within 10 days of holding an earnings call, I hold the best Board meeting, and I hold the Board meeting and pass the resolution to raise up to Rs. 300 crores?
Ashish Tomar:
Sir, that was just a permission from the Board that we took. We did not act on it. So, it is a resolution that is valid for one year. We just had it passed in the Board so that in case any eventuality arise, we do not have to go back to the Board.
But we assure you that now we don't have any plan to raise any funds right now. In case we secure a large hand project in which capital is required to be pumped in by the company, then we might go for that. Apart from that, for regular EPC projects, we do not intend to raise any funds.
Azhar:
Yes, sir. And when in Q1 FY '26 earnings call we had committed that we will bring down the pledge by the end of FY firstly 26, it has only increased since. And within 10 days of last quarter's earnings call, we again pledged 4.5 lakh shares on 10th of March to Tata AIG.
Ashish Tomar:
Sir, I think there might be some confusion there. If you will check the latest filings by the company, the pledge numbers have been reducing relatively steadily, and by the end of next year, it will be zero.
Azhar:
To be honest, it is mind-boggling. I don't want to be very sober in stating my question, but it is mind-boggling that whatever commitments we are making quarter after quarter, we are, like, for example, if we look at Q4, in Q3 we said that there were landslides and we have the visibility in Q4. That was already a month and a half past. And we have the visibility that, okay, Q4 will be softer, but it will be relatively better than Q3.
Forget about last year's Q4, it is worse than Q-o-Q, it is worse Y-o-Y. We having that visibility, being in the quarter for a month, for a month and a half, I mean, I do not understand why is it so difficult being transparent?
Ashish Tomar:
Sir, please let me be clear, we cannot force government's hand. If government does not give permission to excavate roads, we cannot work there. We were expecting to get permission since we were constantly being told by our employer, which is Kolkata Municipal Corporation, that please deploy the site, mobilize on the site, deploy all machinery, and you are required to
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execute the work by this quarter. But when we deployed the machinery on site, citing non-clearance of permissions, we are not allowed to work. And now we cannot force government's hand. All we can do...
Azhar:
I totally understand that, sir. That is not my point. My point is that I can understand it as a business practice that certain unforeseen circumstances happen. But I can understand that being happening on a quarter basis or they happen rarely.
I cannot understand the misconnection there being after every quarter, because whenever we are holding earnings call, we are already in the quarter for a month, or in some cases, month and a half. We have that visibility. We had it in Q2, we had it in Q3. I can understand at this point in time you face the backlash from the elections that were happening in Kolkata. That's fine. I can understand that.
But I cannot understand that this disconnect happening every quarter. Either it is this or it is...
H. K. Kansal:
Sir, what can I say? It has been a perfect storm. We are trying to navigate it and our effort is sincere and...
Ashish Tomar:
Coincidentally it all happened.
Azhar:
Sir, may I also ask that in last quarter, that is Q3.
Moderator:
Sorry to interrupt, sir. Can you please rejoin on the queue for follow-up question?
Azhar:
Sure.
Moderator:
Next question is from the line of Mr. Ajay, an individual investor.
Ajay:
Sir, I want to follow up on the last question that the investor asked. It is a perfect storm, as you said, happening every quarter after quarter. Let us give you that.
Now, can you tell me that in Q3, we lost some revenue. We were expecting to build some revenue from Dehradun. And because of the landslides and everything, we postponed it. So, can you tell me, what was the revenue lost in Dehradun? And did we bill for the lost revenue in Q3 from Uttarakhand?
H. K. Kansal:
Sir, what I can tell you is, not the exact numbers, but somewhere around Rs. 50-odd crores of work is lying finished, waiting to be billed in Dehradun.
Ajay:
So, you are expecting that to be billed in Q1, FY '27?
H. K. Kansal:
Yes.
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Ajay:
And what is the total amount of number that we are expecting to garner from Q1 from Uttarakhand?
Ashish Tomar:
From Uttarakhand, that would be somewhere in excess of that.
Ajay:
And because there has been a delay from West Bengal, do you think we can bill some amount from West Bengal in Q1 FY '27?
H. K. Kansal:
Yes. What we are facing there is, since the government has changed, there has been some shuffling in the department, transfers. And as soon as, I think within 10-15 days, the new officials join, then we can progress and execute.
Ajay:
One last question on the margin structure. Like, if I look at margins, we were operating at, say, operating margin of somewhere around 22% to 25%. We can't actually compare that with this quarter, when the revenue has been more than 50% down.
But at an operating level, operating margin level, where we traditionally operated between 25% to 30%, so 25% being a median over there, what do we see FY '27 operating at, as an operating margin level?
H. K. Kansal:
So, what we are targeting is upwards of profit after tax of 15%.
Ajay:
So, you are talking about EBIT of 15%, so that would be operating...
H. K. Kansal:
Not EBITDA. EBITDA would be somewhere around, I think, yes. So, 21% EBITDA we have already achieved in 25-26. We will try to rectify it and raise it to about 25%.
Ajay:
So, we are saying operating margin of roughly around 25% for FY '27 and PBT of somewhere around 15%?
H. K. Kansal:
Profit after tax, not PBT.
Ajay:
Okay, PAT of somewhere around 15%, right?
H. K. Kansal:
Yes.
Ajay:
And what we have, as in guidance, that we did somewhere around Rs. 970 crores FY '27, FY '26 is a washout, but we will probably surpass FY '25 figures, that is Rs. 950 crores in FY '27, right?
H. K. Kansal:
Yes, almost similar.
Ajay:
Any visibility that you have for Q1 revenue ballpark where it could land?
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Ashish Tomar:
No, sir, as our CEO, sir, has already said, we are still recovering and I don't think the numbers would be too good, but we are trying to improve on that, as far as Q1 is concerned.
Ajay:
So, you are expecting to outpace the growth in second phase of the coming year? Because we are still recovering for the next quarter.
Ashish Tomar:
Yes, as soon as these things stabilize, the supply of bitumen is, yes.
Ajay:
And one last humble submission from my end and one last request from my end is, business up cycles and down cycles happen, but we shouldn't feel underconfident ourselves and it doesn't take much to be transparent and we should actually hold our corporate practices and investor practices and transparency to investors to highest regard. That is the only request that I would submit over here.
Ashish Tomar:
Yes, sure, sir.
Moderator:
Next question is from the line of Atul Kumar, an individual investor. Please go ahead.
Atul Kumar:
So, I was looking at your past numbers and if I see your trend from 2020, year 2020, to like Financial Year 2020 to Financial Year 2025, your top line has grown from around 300 levels to 326 to 966, so roughly 3x. And that would be like roughly 25% CAGR, so which has been impressive in the past.
Since now we are saying that in FY '27, we are giving a guidance of what we achieved in FY '25, that is okay because FY '26 is a washout, so it takes like some time to get back to the role again. But, sir, if one has to understand the view of the management and the company, how we are looking two, three, four years outward, so what sort of CAGR we should be expecting? Is it that we are looking to go back to that 25% CAGR kind of range? Or is it more with less? So, any kind of color you can shed on that, sir, it will be really great.
So, if I, let's say, from here, if I have to think about, like we roughly know FY '27, but if I have to think of how are we going to progress towards FY 2030, so like if any sort of vision you can share, sir, that would be great.
Ashish Tomar:
Yes, in the long run, if the figures till 2030 or further are to be given a guidance, so I think we can hope to achieve somewhere around 20%-25% growth over the long run.
Atul Kumar:
So, maybe from FY '27...
H. K. Kansal:
I would like to add something for the answer of your question, that in civil engineering industry, particularly once it is government driven or is dependent on the government funding, what happens that any one year or two or some quarters can go with surprisingly low revenues and profits. You see, our company was incorporated in 2013 full shape, 2013, and till 2019, we
tripled our revenue, from something Rs. 107 crores to Rs. 320 crores or so. And again, from 2019 to 2025, in six years, we have again tripled our revenue.
So, if you see the 12-year graph or two graphs of six years from 2013 to 2019 and from 2019 to 2025, it is flat 20% growth in terms of CAGR. Although in FY '22, we were down from FY '21. And similarly, if we can project and if we can foresee, we are down in FY '26 from FY '25.
But definitely, if we look for 2030, the five-year or six-year 31, that the CAGR will be maintained at 20%. That is our organic growth. And with this setback due to unprecedented conditions, which happened this financial year, we foresee that we will be able to maintain it. Say, 25%-30% growth from this figure of 26, that will touch around 25 figure. And then if we maintain it more than 25% and for four, five years, then it will be flat 20% in further five, six years.
So, that is the target always remains with an industry like us. But one year should not disappoint us. And we have the sufficient reasons. Maybe that investors are thinking that the figures are looking on paper, they are looking very disappointing. But if you have the reason behind everything, then, of course, you can very well calculate.
We as a management can very well calculate that after four, five years, if you see the figure of 2030, this will again be at 20% CAGR from 2013 to 2030. That is what I think you are trying to and I am able to answer your question. Thank you so much.
Atul Kumar:
Yes. So, actually, that was the intention behind asking that question, that historically, we have seen a very good growth. So, of course, one year can be a washout. It is understandable. But that is why it was more on the horizon that how are we thinking to go ahead from here. And also, once you give such kind of answers, it will be easy for investors community to take this one year as a bygone and then look forward and see how we are progressing and, of course, as I see on your guidance again.
Sir, one last question I have. Like you mentioned that we are mostly into government projects. So, actually, do we have any plans to, let's say, next one or two or three, four years to diversify our work area so that the dependence is reduced from government?
And second, sir, I also see in shareholding, right? Currently, we don't have FIIs, DIIs. So, do you have any kind of investor meetings or plan to kind of pitch our company and growth plan and then get more institutional investor on board to your company in, let's say, one, two, three years? So, if you can share some details on that, that will be helpful, sir.
H. K. Kansal:
As far as diversification is concerned, what I could get is diversification, you mean to say that we are going to diversify from government sector to private sector. That is one diversification. And other diversification, you may mean that from water supply and sewerage sector to another sector. So, let me clear it.
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Atul Kumar:
Client diversification as well as business maybe, let's say, getting into power because there are lot of projects getting into power and (inaudible 00:37:56) are also there.
H. K. Kansal:
Yes, sir, yes, sir. I would like to answer for this that there is a tremendous and huge scope in water supply and sewage treatment sector of the urban India. It is a huge, tremendous. We are just 1% of the work we are able to do as far as pan-India scope is concerned. So, we are not going to diverge from the government sector as of now. We are not planning.
And from the water sector also, we are doing 70% to 75% business from the water sector, which is likely to continue. We are bidding rigorously in the water sector. And about Rs. 3,000 crores bids are in pipeline. And soon, depending upon the data and how we bid, how we select the bidding condition, we are looking for at least Rs. 300-400 crores potential of winning the bids in this month or in the coming month. So, the sector is, you know, we are not going to leave the sector. We are not going to diversify.
And as far as clients are concerned, we are already working in seven states, and that is Housing and Urban Development Ministries projects, that is AMRUT projects, and Namami Gange projects. So, let us tell you that we work only in urban sector, and we don't work in rural sectors like Jal Jeevan Mission or Swachh Bharat Mission. And because we have not, we don't need to diversify because there is a tremendous thing.
What happened this year, again, I will have to emphasize, the change in the government system, some payment delayed due to some West Asian disturbance, some AMRUT projects, they were delayed in payment. If the payment is delayed from the government, what happens? We are unable to further pay it to our subcontractors. And ultimately, the work is stopped. So, that becomes a big reason.
So, continuous payment supply is very, very essential of our business. And once the subcontractor is not paid, and labor leaves the site, you just visualize it, labor leaves the site, say, there are 400, 500 people which work on a project. Suppose they leave the site, what happens? To rearrange them, to reassure them, it takes a month or month and a half to reengage them. And the people of the area also get disturbed because we have dug the road, and we are not restoring due to lack of labor.
So, it is a very rigorous cycle to work on the sewerage things. And that is why so many big companies are now not into the digging of the sewer. They are working on STPs, they are working on WTPs, but they are not working on sewer laying. So, this goes like that in civil engineering sometimes.
Certain times, it is luck dependent also. But the management, the company is of the view that we will in long term give the CAGR of 20%. May not be able to give this year, but if we even
catch the FY '25 figures in FY '27, even then we will have to raise by 30% from FY '26 or even more than 40% we will have to raise.
So, we will do that. But next year if we raise by 25%, 27%, then average will be of 20% we will achieve in 2, 3, 4 years. So, that is it about this. Not a need to diversify from the government sector. Not need to diversify as far as the water sector is concerned.
Atul Kumar:
And also, the second part of my question was, are you planning to onboard institutional investors anytime near?
H. K. Kansal:
With institutional investors, we keep on meeting through roadshows in Mumbai. Actually, there are certain projects which we were looking and we are looking for. They are HAM projects in which 60% is...
You are asking that why the institutional investors have not purchased our shares or they are not holding our shareholding is not there. So, initially that was there, no? Initially they were there, but our share rolled to Rs. 1,000 per share, Rs. 900 plus, sir. Then they have exited. So, they were having shares.
Atul Kumar:
Thanks for patiently answering our question. And I will just say that we are trusting your words from your end. I echo the same sentiment that other two individual investors requested. So, let's be transparent in disclosing the numbers as planned. And let's work together to see where it goes.
Moderator:
Thank you. As there are no further questions, I would now like to hand the conference over to Mr. Ashish Tomar – Promoter and Managing Director, for closing comments.
Ashish Tomar:
Yes. I would like to thank everyone for attending this earnings call and would like to reassure our investors that we are sincerely putting in our best efforts to get back on the track and would deliver the growth that we promised. Thank you.
Moderator:
Thank you. Ladies and gentlemen, on behalf of EMS Limited, that concludes this conference. Thank you for your participation and you may now disconnect your lines.
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