SPML Infra Ltd

- The company has raised liquidity through preferential allotment and internal accruals to fund the BESS manufacturing plant (Rs. 175 crore capex). - Two potential warrants issues are planned: one in November and another in April, including promoter participation. - These warrant proceeds aim to provide funding well before scheduled needs. - The lock-in period for these warrants is 6 months as per law. - The company has existing regular sanction of Rs. 205 crore from a nationalized bank for bank guarantees. - Additional enhancement of banking limits is in process to support new business. - Current debt stands at approximately Rs. 407 crore payable over 6 years, backed by arbitration awards and claims, with no cash outflow pressure from operating cash flows. - The company has repaid Rs. 23 crore ahead of schedule to NARCL and plans continued repayments supported by improved liquidity.

- Capex of Rs. 125 crore planned for establishing a 2.5 GW BESS manufacturing plant in Pune, including land cost. - Total capex for scaling the plant to 5 GW is Rs. 175 crore, funded through preferential allotment and internal accruals. - Preferential allotment funds have already been generated to fund the capex phases. - Plant commissioning timeline: 2.5 GW capacity by Q1 FY27 and 5 GW capacity by FY28. - Plans to ramp up further to 10 GW post 5 GW capacity expansion in the medium to long term. - Strategic technology tie-up with NASDAQ-listed Energy Vault for advanced BESS technology and support. - Targeted investment supports the shift towards localization of BESS components, reducing imports over the next 2-3 years. - Capex supports entry into high-margin, technology-driven BESS projects aimed at robust revenue growth.

- SPML Infra expects strong revenue growth driven by both water and power segments, aiming for equal turnover contribution by 2029-2030. - Target order inflows of Rs. 4,000-Rs. 5,000 crore annually in water projects, with execution over 3-4 years. - BESS (Battery Energy Storage Systems) plant ramp-up to: - 2.5 GW capacity by Q1 FY27 - 5 GW capacity by FY28 - Plans to scale further to 10 GW and beyond in the longer term. - Revenue from BESS is expected to rise progressively: - Rs. 1,000 crore per 1 GW of capacity - Approx. Rs. 2,500 crore from 2.5 GW capacity next year - Rs. 5,000 crore potential from 5 GW plant at full capacity - Strong order book (~Rs. 4,500 crore) and L1 orders (~Rs. 2,200 crore) support healthy sales pipeline. - Orders and revenue targets supported by government schemes and strategic partnerships, with expectations for robust ramp-up and margin improvements.

- SPML Infra expects sustained revenue growth driven by both water and power sectors, targeting Rs. 5,000 crore order inflows annually in water projects with improving margins (7%-10% in next 2 years, moving to ~10% for new orders). - The Battery Energy Storage System (BESS) business is anticipated to contribute significantly starting FY27, with ramp-up from 2.5 GW plant in FY27 to 5 GW by FY28 and eventually 10 GW, targeting Rs. 5,000 crore revenue capacity from BESS by 2028. - Operating margins in BESS EPC are targeted above 10%, increasing to 15%-16% with in-house battery pack manufacturing, with break-even expected within 1 year. - The combination of strong order book, L1 positions, and selective high-margin projects underpin optimism for profitability and earnings improvement. - EBITDA margin in Q1 FY26 improved to 14% with PAT margins at 7%, indicating margin expansion trend.

- Current order book stands at approximately Rs. 4,500 crore (Page 6). - Legacy orders within this order book amount to around Rs. 2,000 crore, expected to be completed in 2-3 years (Page 6). - New orders valued at about Rs. 2,500 crore to be completed in 3-4 years (Page 6). - Pending L1 orders are about Rs. 2,200 crore, expected to be converted into confirmed orders by September/October (Page 6-7). - Company targets annual order inflows of Rs. 4,000 to Rs. 5,000 crore for FY26 (Page 4). - Orders converted in Q1 FY26 include Rs. 1,500 crore out of Rs. 3,000 crore discussed previously (Page 7). - Order selection is based on project quality, funding support, margin (>10%), and operational ease (Page 7).