SPML Infra Limited — Call Transcript 2025

Nov 20, 2025

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Date: 20[th] November, 2025

National Stock Exchange Exchange Plaza, Plot No. C/1, G Block, Bandra (E), Mumbai-400051

(NSE Scrip Code: SPMLINFRA)

BSE Limited

Phiroze Jeejeebhoy Towers Dalal Street, Mumbai-400001

(BSE Scrip Code: 500402)

Sub: Transcript of Earnings conference call for the second quarter and half year ended 30[th] September, 2025

Dear Sir(s),

Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached herewith the transcript of Earnings Conference Call organized by the Company on 14[th] November, 2025 post declaration of un-audited financial results for the second quarter and half year ended 30[th] September, 2025.

Kindly take the same on records.

Thanking you, For SPML Infra Limited

Swati Digitally signed by Swati Agarwal Date: 2025.11.20 Agarwal 17:05:09 +05'30'

Swati Agarwal Company Secretary

Encl.: As above

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SPML Infra Limited

Q2 & H1 FY26 Earnings Conference Call

November 14, 2025

Management:

Mr. Manoj Digga – Director Commercials & Chief Financial Officer

Mr. Vikas Sharma – VP Finance & Accounts

Mr. Samir Patel - Chief of Technology & Operations, BESS Operations

Mr. Kapil Joshi - Investor Relations Officer

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SPML Infra Ltd. – November 14, 2025

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Moderator:

Hello everyone. A very good afternoon and welcome to SPML Infra Limited’s Q2 and H1 FY’26 Earnings Conference Call.

From the Senior Management we have with us on the call today Mr. Manoj Digga - Executive Director and Chief Financial Officer, Mr. Samir Patel – Chief of Technology and Operations of BESS segment, Mr. Vikas Sharma – Vice President, Finance and Accounts and Mr. Kapil Joshi – Investor Relations Officer.

Before we begin the earnings call, I would like to mention that some of the statements made during today’s call may be forward-looking in nature and hence may involve risks and uncertainties including those related to the future financial and operational performance of the company.

I would now like to hand over the call to Mr. Manoj Digga for his opening remarks. Thank you and over to you sir.

Manoj Digga:

Thanks Devyanshi and good afternoon, everyone and thank you for joining SPML Infra Limited’s Q2 Financial year’26 Earning Call. The first half of the current fiscal has been a defining period for SPML Infra, reflecting strong order inflows and strategic progress across both our core water and power infrastructure business and the emerging energy storage segment. This momentum reaffirms SPML’s long-standing reputation of more than four decades as a trusted partner in India’s infrastructure growth story and highlights our transition into a diversified, future-ready organization.

Our focus remains on profitable growth, selective bidding, and strong project execution. This disciplined approach has enabled SPML to sustain healthy margins and strengthen our project mix, building a foundation for long-term growth. The company is mainly focusing on the water, power, and BESS sectors, which have significant potential to grow in the years to come.

A pipeline of over INR 17 lakh crore in fully central- or state-funded water infrastructure projects has been identified across major schemes such as Jal Jeevan Mission, AMRUT 2.0, Namami Gange, river-linking programs, and others, covering water supply, sanitation, and reuse.

India’s BESS market is projected to reach 236 GWh by 2031–32 which makes it ~USD 57 billion investment, driven by renewable energy mandates, including a minimum 10% storage requirement in new renewable projects, the 500 GW RE target by 2030, grid-stability needs, and Energy Storage Obligations (ESO)— representing a market potential of more than INR 5 lakh crore. Since the government has also begun focusing on BESS in thermal power, the opportunity will significantly multiply. The government is also focusing on building smart power infrastructure across India, supported by major investment plans. We are expecting

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approximately INR 25,000 crore of tenders in the current financial year from the aforesaid opportunities, including over INR 5,000 crore of BESS tenders, which will be a key target area for the company.

From a business standpoint, H1 FY’26 has been marked by robust order momentum, with SPML Infra securing new projects individually and through JVs in the water infrastructure segment totaling over INR 3,772 crore across Jharkhand, Madhya Pradesh, Rajasthan, and Tamil Nadu. At present, the company is in L1 position in tenders’ worth around INR 1,125 crore, which are expected to be awarded in the current financial year. Further, the company has an existing order book of around INR 1,600 crore, which we plan to execute swiftly.

The L1 tenders and the available opportunities in the water, power, and BESS sectors will help us to achieve our targeted business volume of INR 5,000 crore in the current fiscal. The growing business opportunities across all three sectors will also help the company exceed this level in the coming financial year. These wins underscore our technical expertise, execution excellence, and proven ability to deliver large and complex infrastructure development projects. All the aforesaid projects are fully funded and meet our critical criteria for strategic business planning.

Our overall order book and the future prospects provide clear visibility on revenue and earnings growth in the current and coming years. We continue to prioritize projects with assured funding, prudent contract structures, efficient execution timeliness, and higher margins.

SPML today stands on a stronger financial footing, reflecting continued progress in strengthening its balance sheet and access to capital. Our sanctioned bank facilities have been enhanced from INR 205 crore to INR 505 crore by a leading public sector bank, underscoring lender confidence in the company’s financial stability and governance. The expanded facility provides greater flexibility to participate in larger projects and manage working capital more efficiently. Further, the company has received approval for a Surety Bond from a leading insurance company, providing additional bidding flexibility. The company has also been recognized as a “Stable” firm by ICRA for its entire financial and banking facilities. The company does not have any pressure on operating cash flows since the remaining debt of INR 400 crore (including interest) owed to NARCL is expected to be paid through arbitration awards of INR 647 crore (including interest up to October 2025), ensuring a clear path toward a leaner and more resilient balance sheet.

SPML’s power EPC expertise has been built through years of executing large-capacity substations and rural electrification projects. Diversification into Battery Energy Storage Systems (BESS) is a natural extension of these capabilities, positioning the company to leverage its technical strengths and capture new growth opportunities in the clean energy space. The 2.5 GWh Phase I facility at Pune MIDC is progressing on schedule and is targeted

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for commissioning by Q1 FY’27, with Phase II to follow by FY’28. Mr. Samir Patel, our Chief of Technology and Operations for BESS, is also with us to explain the opportunities in the BESS sector and our progress in manufacturing and business activity in this segment. The construction of the BESS plant at Supa, Pune is in advanced stages, and once completed, it will be a modern and efficient manufacturing facility for BESS in India.

With a solid order book, improved liquidity, and strategic alignment across both business verticals, SPML Infra is positioned for sustained revenue and profitability growth through FY’26 and the coming years.

Coming to our performance during the first half of the fiscal year—a period that is seasonally slower for infrastructure companies due to extended monsoons, state elections, and tendering delays. Despite these challenges, we have delivered stable operational performance. On a standalone basis, revenue stood at INR 363 crore, EBITDA at INR 35 crore, and PAT at INR 27 crore for H1 FY’26. The EBITDA and PAT margins improved to 9.8% and 7.6%, respectively, compared to the same period last year, remaining in line with our guided margin range. Revenue from new projects, where margins are higher, will be reflected in Q3 and Q4 FY’26, as substantial progress has already been made on approvals of designs and drawings. Going forward, revenue contribution from these new orders is expected to increase significantly.

Similarly, for Q2 FY’26, revenue stood at INR 199 crore, marginally up by 2% YoY, EBITDA at INR 20 crore, and PAT at INR 15 crore. The EBITDA and PAT margins were 10% and 7.7%, respectively. As we move into the second half of financial year, SPML Infra is well placed to capitalize on the strong momentum built during H1.

The Company is gradually completing its legacy orders, which have comparatively lower margins. Consequently, profit margins over the last few quarters have remained in the 5–7% range, depending on the order mix executed during each period. However, the newly secured orders carry significantly higher margins, and their growing contribution in the upcoming quarters is expected to meaningfully enhance overall profitability.

The Company also benefits from a strong network of empaneled, credible suppliers and contractors who have been associated with the organization for many years. This longstanding relationship supports effective working capital management, which is reflected proportionately in the quarterly levels of debtors and creditors.

Thank you. We are now open for questions.

Moderator:

Participants who wish to ask a question may use the react button to raise their hand. We have the first question from Mr. Hardik Gandhi (from HPMG Shares and Securities), please go ahead sir.

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Hardik Gandhi:

Hello sir, congratulations on a stable set of numbers. Just wanted to know a few things from you. Where have we reached on our BESS manufacturing? How is the progress going? Are we on timeline and are we seeing any major market changes in that sector? A lot of new players are entering into the space. So, just wanted your thoughts around that in the first instance.

Samir Patel: Yes, so operationally, we have already started the ground works and we are on track to set up the infrastructure by Q1 next year. We are on track and that means that we will be ready with our first product by end of Q1. As far as the market sentiments and dynamics are concerned from a technological perspective, it is still the LFP cell concepts and that is what is going to be driven for the entire India market. So, China dominating the entire industry, LFP cells, especially 314Ah cells is what is venturing into Indian segment. This is more about 5.015 megawatt DC block systems is what we are anticipating to launch and this is what the clients and customers are asking for.

Hardik Gandhi: Okay, but are we seeing any import challenges for the battery blocks from China?

Samir Patel: No, we do not see any challenges because SPML’s concept or the way the business is modeled is to make in India. So, from an import perspective, the only commodities which we need to import, as I said previously, are the greater commodities like the cell and the PCS. The rest of the commodities we are planning to localize within Pune.

Hardik Gandhi: Understood. Since we will be starting manufacturing in Q1, the sampling and everything will be completed by the end of Q1 FY’27?

Samir Patel: Same reference actually. So, our first FAT planning is scheduled for January next year and SAT for the site itself at Supa is planned for April next year. So, within that three months’ time frame, we are going to do an end-to-end testing and validations for the entire product and assembly line.

Hardik Gandhi: Is there any audit period required from the customer side? Do they have an audit done or they just check the product and they give an order? How does that process work?

Samir Patel: From an auditing perspective, it purely depends from customer to customer. For example, if it is publicly listed clients like NTPC or Power Grid, etcetera. So, they have their own protocols, but the major protocol is to make sure that the products are certified, and you have the right documentations to prove that the entire BESS has met those obligations, including their regulatory obligations. So, those certifications will be part of the tendering process. Once the product is ready, it is SPML's duty to make sure that it meets those certifications in a timely manner.

Hardik Gandhi: For the BESS part, are we only going to assemble and do the EPC ourselves? Or are we going to assemble and provide for other EPC players as well? So, we may not have the order.

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Samir Patel:

SPML's entire model is to do an end-to-end turnkey integration. So, we will be one-stop solution provider for the clients. That means we start from designing and developing of the containers and then we take that into manufacturing and then we take that to the site to commission and install and after that, we do the operational maintenance as well. So, we take care of the entire project within SPML.

Hardik Gandhi:

Just to have more understanding, what would be a good timeline for that? Assuming that we got the order today. So, how much time does it take for you to manufacture, design, install, and then the end-to-end thing for a 100-megawatt hour, let us just say, usually the tenders are multiples of 50 or 100, right?

Samir Patel:

If you are talking about large scale projects, 100 megawatt is a large scale product. That depends with how the solar or the other renewable energy projects are getting maturity. But from a manufacturing standpoint, once we get an order, let us say, post-April, we have a manufacturing capacity of two containers per day. So, for 100 megawatts, I am taking the bag of roughly two months. Within two months, we will be ready to start delivering those products to the site, actually. Commissioning itself will take 45 to 60 days. So, you are talking about three to four months from order placement to commissioning. That is the difference.

Hardik Gandhi:

Thank you so much, Samir. Coming on the water side, sir, what are we expecting?

Manoj Digga: Here I want to add one more, Samir. Basically, earlier BESS was only for the renewable energy but now, very recently, the tender has started for the thermal power also. So, that is a great move changer. You will see the volume and requirement of BESS will increase to the manifold. It is a very good move of the government and the tenders are coming into that line also.

Hardik Gandhi:

Okay. So, again, on the water side. First thing, I saw that there was a preferential allotment to the NARCL. Can you help us understand what happened on that front? NARCL, you got a notification for preferential allotment.

Manoj Digga:

As per our understanding with NARCL, we have to keep their holding at roughly around 12.5% on the expanded capital. We have certain warrant which are going to be converted, for which we have the due date up to March, but we would like to convert it early. After that conversion, we have to maintain the NARCL to 12.5%. So, we are issuing additional share to the NARCL for keeping their percentage to 12.5%.

Hardik Gandhi: How much will we be putting in the warrants? Sorry, I forgot the number. The early warrants.

Manoj Digga: Warrant has already been issued. From here onward up to March, we are expecting roughly around INR 150 crore, which is going to come. It is as per the plan. You will find that every month it will start coming, to bring the further better liquidity into the company.

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Hardik Gandhi:

Okay. On the water side, what kind of growth are we expecting this year? Because I know H1, we had a long period of rains and elections are going on. So, just wanted some color on that. Along with that, along with the growth, since our old projects are lower margin projects and the new ones are comparatively higher. So, with the higher margin projects can we expect some EBITDA uptake from here on? Or what are we looking on that?

Manoj Digga:

Our focus is on two key segments, water and power substation, apart from the BESS business. Both sectors have a huge business opportunity. Now, first time in the power substation, volume of tendering is much more compared to the water. However, there are various water tenders that are supposed to come in Madhya Pradesh, in Maharashtra, in Karnataka, in Odisha. That will keep on flowing into that. There will be a sizable water order. There will be sizable substation power order that may come. Normally, when this order comes, because it is a EPC and design drawing contract, so roughly around three to six months is required to complete all the approvals of the design drawing, which has been passed. If you see our Konar project in the Q3 FY’26, you will find the turnover of Konar coming in. You will also find the turnover of Kekri into the Q3 FY’26 and some turnover of the Indore as well.

That is the way you will find the new order turnover in Q3 and Q4 FY’26. In the total turnover, the new order turnover will be much more compared to the older order.

Hardik Gandhi: On the revenue side, what are we expecting? What kind of growth are we expecting for this year at least?

Manoj Digga:

Old project will continue. Like you have seen in Q1 and Q2, during Q3 also old project will remain on the same level. The new project will further start giving their revenue. Every project required roughly around, you can take the target of three years and every quarter roughly you can take divided by 12, around 8% to 9%. That is the turnover of the new project which will keep on coming, barring few commissioning and piping supply, etcetera. So, more or less, benchmark figure you can take, total project cost divided by 12 is the every quarter turnover into the new water project.

Hardik Gandhi: So, are we expecting INR 850 crore, INR 900 crore top line this year? Maybe more?

Manoj Digga: By that calculation, it should happen more than that.

Hardik Gandhi: What are we expecting our closing order book to be? Right now we have substantial orders. But after Q1, we have not gotten any big orders as such. So, what are we expecting our closing order book to be for this year at least?

Manoj Digga:

As I said, the new orders we have taken are worth INR 3,772 crore and there are roughly INR 1,125 crore worth orders where we are in the L1, which we are expecting into this financial year, maybe in the Q3 FY’26. There are sizable orders, roughly around INR 25,000 crore

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orders, which are going to be tendered this year, including INR 5,000 crore of BESS. So, we should take some share from that also. Our target of INR 5,000 crore new order book into this year and higher next year will continue.

Hardik Gandhi:

Okay. Understood. Thank you so much, sir. All the best.

Moderator: Thank you, Hardik. Participants who wish to ask a question, please raise their hand using the react button. We have the next question from Mr. Darshil Jhaveri (from Crown Capital). Please go ahead, sir.

Darshil Jhaveri:

Hi. Firstly, congratulations on a good set of results, sir. So, just wanted to ask the way previous participants were asking. So, in H2, what is the execution that we are targeting right now, sir?

Manoj Digga: H2 FY’26 again, old order will continue, which we keep on executing. We are expecting a sizable turnover from the three projects which we have already taken. Rajasthan INR 385 crore, Jharkhand INR 650 crore and Indore INR 1,036 crore. So, we are expecting the turnover of these three orders in the Q3 and maybe in the Q4, there are a few more orders which we have taken. So, Q3 and Q4, you will get a reasonable execution from the new order.

Darshil Jhaveri:

Okay. That is fair enough, sir. Sir, so just wanted to know like the margin trajectory, like H2 FY’26 is usually when you are saying more orders will be executed. So, the margins will be better, right? So, any kind of guidance in terms of overall margins, like in terms of EBITDA or PAT percentage that we want to do?

Manoj Digga: As we have told that the new orders where we are having the margin more than 10% and the old orders are at a low margin. So, there will be a mix of these two. All the three orders which we have taken, where execution will happen into the Q3 and Q4 FY’26, the margins are more than 10%.

Darshil Jhaveri:

That helps a lot, sir. With regards to once Q1 next year, our BESS and everything starts. So, what is our targeted revenue for FY’27?

Manoj Digga:

I have given you the guidance. Basically, every year our target on the water side is INR 5,000 crore order, which will be executed into three and a half years. So, that this year orders will continue to execute in the next whole year. And the next whole year order, again, the three to six months is required for the design drawing approval.

So, then we will keep on getting the order, because we are very selective. In taking the order, because that criteria, we have made it out that if it is a fully funded project, it is a project which is our desire and support we have with our supplier and customer, which is a profit more than 10%, where the contract clause is having the pass-through and the state is having,

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where we can easily and comfortably execute the project. So, those are the criteria basis which we will select. Based on that we will keep on getting the order and approval of the design and drawing, the execution will keep on happening. We do not have any issue on the execution because we have a strong team.

We do not have any issue in taking the new order because of the BG limit, and the Surety B ond further what we have. We do not have any working capital shortage because enough liquidity is there. So, if all the four factors and the sector where we are having a huge potential to grow, all the three sector, water, power substation and BESS. So, all these things we should get and the reasonable order what we are targeting, INR 5,000 crore this year and more than INR 5,000 crore into the subsequent year and the execution will keep on happening.

Darshil Jhaveri:

I get that sir, in terms of water side. I wanted to understand in terms of BESS, when we start our plant, how would it work? After we start our plant, only then will we be able to bid for orders? What will be the timeline if we start on, example, 1st April?

Manoj Digga:

One thing is very clear that we are not waiting, because BESS as an EPC we can execute when we will have our own battery pack manufacturing, then it will add value into our EPC. So, that is the feature. So, we are participating into the BESS order. There are INR 5,000 crore order which is coming into this financial year. We are participating into that. So, we will get the order, by then we will have our battery pack unit ready, we will do the EPC and later on we will do the EPC but use our battery.

Samir, if you want to add here.

Samir Patel:

Yes, so that is true. So, EPC will commence as Manoj ji said and as far as the (Inaudible) 25.40 - are concerned, we have two options. The first option is once our assembly lines are ready and operational, then we will start feeding that to the customer base. That is one thing. But the second thing is like if you think or if you see from a market demographics, you will see that the tendering process and when the customers need this product is kind of mid next year. So, you are talking about June, July, August next year. So, if you take that timeframe, you will see that SPML will be ready in March, April. Right. So, we are ahead by three to four months before even when the customer starts commissioning their facilities.

Darshil Jhaveri: Okay. Just one bookkeeping question for my end. What was the opening order book for the year, sir?

Manoj Digga:

This year we were having the INR 2,000 crore of order book in April. INR 400 crore we have already executed. So, roughly around INR 1,600 crore of our old order book we have, roughly INR 3,772 crore order we have taken, INR 1,125 crore we are in L1 and we have the INR

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25,000 crore order where we will bid and we are targeting to close our new order book to this financial year of roughly around INR 5,000 crore.

Darshil Jhaveri:

Okay, fair enough. So, that is it from my side, sir. Thank you so much. All the best.

Manoj Digga:

Thank you.

Moderator:

Thank you, Darshil.

Management: Sanaya, You can ask the question.

Manoj Digga: Hi, Sanaya.

Sanaya: Hi, congratulations on a good set of numbers. I just wanted to ask you, can you provide like an update on the awarded or pending arbitration claims? What inflow seems likely over the next three to four years or how do you plan to deploy these?

Manoj Digga:

Like I told in the last presentation also and it is reflected in our investor presentation. At the moment, we have roughly around INR 645 crore arbitration award, which is having the interest up to October. This interest will keep on increasing every month and the award value will keep on increasing. So, we are expecting this INR 645 crore award, in next two, four to five years to begin. Out of this award, roughly around INR 400 crore we have to pay to the NARCL. Whenever we will receive the award, it will be inclusive of up to that day interest, rest over whatever extra from the NARCL award, which we will get into the liquidity into the company.

Over and above, we have roughly around INR 4,600 crore of claim, which we are fighting and which will convert into award and then cash. If we see the historical of SPML, roughly around 41% of the claim value converted into award. So, we have the visibility of further INR 1,500 crore of award, which are going to become in next two years. That will convert further into the cash and that will generate further liquidity into the company. Is it okay, Sanaya?

Sanaya:

Yes, thank you.

Manoj Digga:

Thanks.

Darshil Jhaveri:

Hello, sir. Just two questions. For the arbitration, can it happen that we say that we are going to get, but the government just does not end up giving and we keep on fighting in the court. Is there a specific timeline for this to end?

Manoj Digga:

There is a timeline framed by the arbitration law that if you file the arbitration, normally it has to be settled. They have given one timeline of 34 months, another of 37 months and every court has a timeline. So, from the claim to the arbitration award, normally it is two to

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three years. From arbitration award to the money, normally it should be four to five years because there are various forum where the arbitration can be challenged by the customer.

But one very interesting thing has started by all the court. Like if we win the arbitration award and if the other party wants to challenge that arbitration award into the court, they have to deposit 75% into the court amount. One more interesting thing done by the government of India while making a scheme called Vivad Se Vishwas. That is the scheme which they have made into the arbitration also, where they have given the guideline that how you can settle the arbitration award. Because normally settlement has the, it is all the arbitration award to the government and they need certain guideline for their compliance issue. So, one, the court has taken a stand that if any arbitration award the customer wants to challenge, they have to deposit 75%. So, it is a cash outflow to the customer. Second, the arbitration, the government has given a strategy that if anybody wants to settle, they can settle it to 65% because that is the Vivad Se Vishwas scheme. Now every settlement has their own negotiation, but they can settle at 65% also. So, now we are expecting and which we are realizing also, lot of settlement has started coming, like one or two arbitration award, which is at the court. The party is discussing with us for making the settlement into those arbitration award. If that happens, then the realization will be much fast.

So, huge changes has come into the arbitration claim and award settlement. Lot of timeline has been decided by the government of India. Lot of stringent rules and regulations they have made into that. So, I hope the settlement will become much, much faster and the resolution will become much faster. But normally when the award win and when it is win by the one level of court or another level of court, the cancellation can normally happen when they find that any biasness is happening to the arbitration award. That is the way we are very, very selective in identifying the arbitrator. We have not faced any this type of situation that once we get the award and then any reversal has happened.

Darshil Jhaveri:

Manoj Digga:

Darshil Jhaveri:

Moderator:

Yes sir, understood. Just a small question. I do not know if this is relevant as such, but how is the promoter group finding money to put in warrants, like for a quantum of INR 125 crore? Just curious.

That is their family office.

Okay. Understood. Thank you.

Thank you, Darshil. We have the next question from Mr. Suraj Shinde (from Yes Securities). I will just read it from the chat box. At the start of Q2, you indicated a strong order book and L1 pipeline. So, how much of this has converted into firm orders and how does the bid pipeline look like right now? And the second question is with respect to the order book mix. So, he is asking, with a mix of legacy and new projects, where do you see FY’26 margins settling and operating leverage can be unlocked as newer projects scale.

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Manoj Digga:

If you see since the last time when we met, after that we have won INR 1,438 crore order into Rajasthan. That has come. There are two Rajasthan award is still pending. That is Pratapgarh and that is INR 700 crore, it is still pending. We have received one more L1 in Chennai. So, all these award because of the various election and various that thing, the award took slightly longer time. But I have normally seen once the L1 has come and the process has been fully fulfilled, then award will convert into the order. I do not remember any case where the award, once the L1 then the award has been not been awarded. So, these three award of INR 1,125 crores, which is there in the system, I am expecting it may come into the Q3 or it may, part may spill over into the Q4, but these award are going to come.

Further, as I told you, the INR 25,000 crore order award which the government has already processed and tendered or is in the process of tendering, which includes the BESS award of INR 5,000 crore. So, that is where and all those award which we have told, all these tenders are our targeted tenders. So, there we will bet and hopefully we should win roughly at least INR 2,000 crore. Once that is in, then our target of INR 5,000 crore for this year will be met. We may cross more than that and this growth momentum is continuing for the next year.

As I told INR 17 lakh crore is into the water, roughly around INR 5 lakh crore by 2030 into the BESS. When we started the year, we did not thought of the power substation tenders, but there a lot of tenders are coming and we are expecting at least one order into the power substation also into this financial year. So, a lot of opportunities there and our target is selective and INR 5,000 crore, it looks to be very closely achievable.

On the margin, yes, we are very clear that unless there is a good margin and our criteria is fulfilled, we are not going to take the order. Once we get the order, you can take average of three to six months, by that time it will get completed. Average time, there are few orders which we can complete into the two years, few orders into three and a half years. So, average time you can take into the three years and the order will be executed proportionately. Sometimes it may be one month high, one month low, but you can take that every quarter, one twelfth of that order will keep on executing.-

Moderator:

Manoj Digga:

Moderator:

Thank you, sir. And he has just asked a follow up question as to what will be the revenue mix down the line, say to next two to three years as far as both the segments go, water and BESS.

Our desire and internal target that we should have, the BESS and water and power turnover will be 50:50 by 2029 or by 2030. That is our target. At the moment, our water business is roughly around 90%. Historically, our water and power business was 75:25, at the moment 90:10. Going forward, we have the desire and our target to reach the 50:50 level of water and power. Power includes the BESS.

Thank you, sir. We have the next question from Mr. MM Merchant .

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SPML Infra Ltd. – November 14, 2025

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In an article it is mentioned that the company will set up more plant in the future for BESS in Rajasthan and MP. Can you please share the detail on this?

Manoj Digga:

No, at the moment, no. At the moment, we are focusing first to have our Supa plant be ready.

We have the second Supa plant to enhance the capacity to 5 gigawatt and then maybe further from 5 gigawatt. That is our first plan. But parallelly, we keep the option ready. But at the moment, our focus is very clean that we will be focused to have the growth into the Supa. That is long term, but not now. Once we have any such type of final plan, we will announce to the stock exchange and to all the investors.

Moderator:

Manoj Digga:

Satyam Agarwal:

Manoj Digga:

We have the next question from Mr. Satyam Agarwal.

Hi, Satyam.

Hi, Manoj ji. Sir, my question was on the BESS front. So, we just mentioned that we are firstly trying to do BESS EPC and then we will assemble the BESS complete and then we will install also. So, I just wanted to understand what is the per gigawatt revenue we can generate when we assemble a BESS plant along with EPC thing and when we do just the EPC thing. And what is the margin in both these business on the EPC thing and on the assembly plus EPC thing?

Typically, Samir correct me if I am wrong there. Typically, in the EPC, it depends upon the contract to contract and how we bid because it is all the competitive bidding. Every contract we have to bid accordingly based on our strategy and planning.

On the EPC front, normally, we do not take any business less than 10%. That is our internal guideline, both into the water and power and including the BESS. But once we have the component manufacturing like assembly line ready that should increase our revenue further by 4% to 5%. Margin should increase by 4% to 5%. But again, it depends upon the tender to tender and the bidding to bidding because it is not a fixed market sale. It is a bidding process and wherever we bid. But this should be our internal target that once we have our component manufacturing of this battery pack manufacturing unit ready, our margin should be between 14% to 15% as an EPC, our margin should not be less than 10%.

Satyam Agarwal:

Manoj Digga:

On the revenue front, how much revenue 1 gigawatt can generate on the EPC front and on the assembly plus EPC front?

Both are the same because the revenue you can say, ballpark for 1 gigawatt is INR 1,000 crore, and if it is 5 gigawatt, then we have the potential to be by INR 5,000 crore. But then the market keep on increasing on the price. If the price of the raw material, basically the component will reduce, then the finished product will also react accordingly. But as a ballpark figure, you can see that if we are setting up a 2.5 gigawatt now, then the potential is INR

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SPML Infra Ltd. – November 14, 2025

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2,500 crore. And if it is a 5 gigawatt, which we are planning to expand, then it will be a INR 5,000 crore potential into the BESS volume.

Satyam Agarwal:

Okay. Sir I just wanted to know one more technical question. So, let us say someone is making battery. So, if I want to install a BESS thing into my plant, I will go to the battery manufacturing, the person who is making battery as well as the whole BESS thing or I will go just to the EPC player. Can you tell me why a person will come to only an EPC player and not a person who is making the battery itself from zero to the whole BESS thing?

Manoj Digga:

Samir, do you want to reply?

Samir Patel:

So, I am just trying to understand your question. From the way I understand is like you have two options, right? So, one is you have an EPC player whose expertise is to install and commission the BESS. On the other hand, you have these experts who manufacture the batteries and they assemble the batteries into battery strings and the container. Right? So, you have these two guys. Now, you can have a combination of both or one after the other. Like, for example, if you talk about, Adani projects. So, Adani will kind of take care of the entire project and SPML can be part of the EPC and SPML can be part of the EPC plus the battery integrator as well. So, it depends on the bidding process of what Adani wants SPML to do for them. That is one thing. The second thing is. SPML can offer a turnkey solution, that is the EPC and manufacture the BESS under SPML brand and deliver that as well to the client. So, if you are asking from an investor's perspective, like, you know, why a client would go to an EPC and not to the BESS or why the BESS will go to the BESS and not to the EPC. The answer is clear, like it purely depends on what pricing you have bid for and what is that benefit that client is getting from dividing this two into separate sort of projects.

In our theory, we are ambushed to have the capability from both perspectives. So, whether a client wants an EPC sort of service or they want a combination of full turnkey service, we are positioned to actually provide everything for whatever the market is asking for.

Satyam Agarwal:

Okay. Sir from where we are importing the batteries, we will be having batteries from China or somewhere else?

Samir Patel:

You mean the cells?

Satyam Agarwal: Yes, cells.

Samir Patel:

The cells is purely coming from China or Indonesia, either of the two.

Satyam Agarwal: Okay. What is the cost of the cell in the whole BESS?

Samir Patel:

The cell that is industry driven. So, currently you are talking about $40 to $45 per kWh. That is industry standards.

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SPML Infra Ltd. – November 14, 2025

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Satyam Agarwal: I am talking about the overall cost. So, if the overall cost of a BESS is INR 100 then how much percentage is the cell component of it? Samir Patel: So, cell contributes to about 28% to 30% of the entire BOM. Satyam Agarwal: Okay. Thank you. Samir Patel: Thank you. Moderator: Thank you. We have the next question from Mr. Rajesh Naik. You may please go ahead. Rajesh Naik: Hello. Thanks. I just wanted to know the Energy Vault's role in our BESS business. What exactly they are providing us. That is it. Samir Patel: Okay. So, let me rephrase. So, you are asking, like, what exactly we are doing with B-VAULT or Energy Vault. Rajesh Naik: Yes

Rajesh Naik:

Samir Patel: So, Energy Vault is our strategic joint venture partner who has given us the licensing agreement under IP ownership to use their systems design on the SPML trademark to sell for Indian markets and global as well. So, essentially, all of the techs which they have developed in America, we have the license to use that tech for the Indian market.

Rajesh Naik: So, majorly technical know-how that is what we are bringing in. Samir Patel: Yes, the technical know-how from a system level perspective. So, whether it is the EMS, whether it is the electrical architecture for the entire BESS or whether it is the thermal management and the safety related to the entire containers, all of that IP we have secured actually.

Rajesh Naik: That is it. Thanks a lot.

Samir Patel: Yes.

Moderator: Thank you. We have the next question from Mr. Yash Modi (from Ashika Group). Please go ahead, sir. Manoj Digga: Hi, Yash. How are you?

Yash Modi: Hi. Good evening, sir. I am good, sir. How are you, sir?

Manoj Digga:

I am fine.

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SPML Infra Ltd. – November 14, 2025

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Yash Modi:

Manoj Digga:

So, I wanted to ask a question regarding the EBITDA margins. So, obviously, like you rightly said that we have been doing older projects, so margins are lower. If I remove the other income, the margins have come down during this first half, second quarter especially. So, when do we see this EBITDA margin rising and how much of the old projects are yet to be executed and how do we basically model the EBITDA margin going forward? Especially because the cost related to BESS might also come. So, how do you see on especially at the standard level and on consolidated level?

BESS is a part of the SPML Infra itself and all the expenses of the BESS till the commencement of the commercial production of our unit will be capitalized. It will not come to the profit and loss account. Then we will show a segmental profit where we will show the BESS profitability separately. On the order size, we have told that roughly around old order was INR 2,000 crores, INR 400 crore executed, INR 1,600 crore is there. Old orders, margin is low. New orders from Konar, from Jharkhand, MP, Rajasthan or Chennai, all orders are more than 10%. Normally three to six months is required for completing all the design drawing. Luckily by that time the rain was there and we have completed all.

So, you will find a substantial growth and the new order contribution into the next quarter's revenue and those all are highly profitable. So, the profit margin will keep on increasing from Q3 to Q4 and then the Q1 of the next year. INR 5,000 crore is this year and again another INR 5,000 crore or more than INR 5,000 crore in next year. That is the way our water revenue and power revenue will keep on growing.

BESS, yes, we will do the EPC for now and future whenever our manufacturing unit is there, we will use our component that battery pack into our EPC business of container. That will improve our profitability further. Otherwise, typically it is 10%, but that depends upon to tender to tender.

Yash Modi:

Moderator:

Manoj Digga:

Got it, sir. Thank you. All the best.

Thank you, Yash. I believe there are no further questions. I would now like to hand over the call to Mr. Manoj Digga for his closing remarks.

Thank you, everyone, for joining us today and for your continued interest in SPML Infra Limited. FY’26 marks an important phase in our journey as we strengthen our leadership in water and power infrastructure and advance our presence in clean energy through the BESS initiative. With a strong order book, improved liquidity, and a clear strategic roadmap, we remain confident of delivering sustainable growth and profitability in the coming years. Our focus will continue to be on timely execution, prudent financial management, and disciplined project selection, all aimed at building long-term value for our stakeholders.

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SPML Infra Ltd. – November 14, 2025

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We appreciate your time. On behalf of the entire SPML Infra team, I would like to thank all our investors, partners, and employees for their continued trust and support. Thank you, and we look forward to interacting with you again. Thank you.

Samir Patel:

Thank you so much.

Moderator:

Thank you, sir, for taking the time out and thank you to all the participants.

This transcript may contain transcription errors. The Company or the sender takes no responsibility for such errors, although an effort has been made to ensure high level of accuracy

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