Sathlokhar Synergys E&C Global Ltd Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Augustia Dave - CAO Capital - Analyst : Thank you very much. Am I audible?

Question: Augustia Dave - CAO Capital - Analyst : sir. So, first of all, I would like to thank you and madam for a very comprehensive PIPO meet that you did, and a lot of the questions regarding the business model and the past history of the company, they were very nicely taken by both of you. And, those are very useful. You were a very fresh like a new company which I had not even heard about, but, those are very critical, to build a proper understanding before, investing, in the company post this thing. So thank you very much for that. Congratulations. Thank you so much. Yeah, go with them. Congratulations, for an excellent first job. So, I have two questions. One is, you have surprised, at least me on the margins. The margins have come in, at 16%, which is more than what I was expecting. So can you give some commentary on what factors led to better margins and also how do you see this margin trajectory going forward as you, as your scale increases further? So what is an upper limit? Or a ceiling, for these. Margins to reach.

Question: Augustia Dave - CAO Capital - Analyst : So these margins are sustainable, so, should we put in a base of 16% margins. Going forward?

Question: Augustia Dave - CAO Capital - Analyst : Great, sir. So. Further improvements are.

Question: Augustia Dave - CAO Capital - Analyst : Excellent, sir. So my second question is, you have mentioned in the press release that, you are, you are participating in a certain number of tenders and projects which are in the pipeline, and you mentioned a win rate. So historically, what is your, success rate in winning the bids? You. Mentioned actually 15%.

Question: Augustia Dave - CAO Capital - Analyst : Great, sir. So, thank you very much, sir, and congratulations again, sir. Best Of luck.

Question: Shridhar chatto - GMFL - Analyst : Sir, I'm audible?

Question: Shridhar chatto - GMFL - Analyst : So, congratulations on a good set of results. So, my first question is, so, how do we look at your business? Is it like on a year on year basis or no, or

Question: Shridhar chatto - GMFL - Analyst : Oh, okay. So my next question is more for bookkeeping. Our debt has almost become nil from March 24 to September, but I can see that the interest costs have gone up to once a year. And then when the debt has gone down. So, any particular reason for that?

Question: Shridhar chatto - GMFL - Analyst : Okay.

Question: Shridhar chatto - GMFL - Analyst : Okay, and sir, what would be, so your receipts for this period has gone up from almost 13 crores to 73 crores. So, what is the typical collection.

Question: Shridhar chatto - GMFL - Analyst : Okay, and, very last basic question that I want to understand from a long-term vision perspective planning the education capabilities and, experience with good client and like reliance SP apparent goods, etc. And having manpower handling capabilities. What is also long-term vision? Do you want to venture into so that if PC you want to, venture more on the real estate side. What is your long-term vision?

Question: Shridhar chatto - GMFL - Analyst : Okay sir, I understood. So basically, the existing market is extremely big for you and so fulfill the time you achieve, you would, you have a visibility of next 3 years and then my last question would be, you mentioned that your current order book is 760 Crores. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 11, 2025 / 5:30AM, SATL.NS - Q2 2026 Sathlokhar Synergys E&C Global Ltd Earnings Call

Question: Shridhar chatto - GMFL - Analyst : Yeah, and we are on track to do 250 Crores by. But it's 2025.

Question: Shridhar chatto - GMFL - Analyst : Okay.

Question: Shridhar chatto - GMFL - Analyst : Okay, and sir, what would be, guidance for FY26.

Question: Shridhar chatto - GMFL - Analyst : Okay. Thank. You, sir. I'll come back in with you.

Question: Rajesh Vora - Jain May Venture - Analyst : Good afternoon, Mr. Thiyagu. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 11, 2025 / 5:30AM, SATL.NS - Q2 2026 Sathlokhar Synergys E&C Global Ltd Earnings Call

Question: Rajesh Vora - Jain May Venture - Analyst : Happy afternoon, congrats on very strong numbers. My first question is on, what is the USP? How is it, competitive competition? What are our competitive advantages that your company has.

Question: Rajesh Vora - Jain May Venture - Analyst : Okay interesting and you mentioned about the owner win rate whatever you bid you get 15 out of 100 contracts you win. Is this, win rate, very good, how is the competition who are your competitors in the area every order when you don't get it, who gets it?

Question: Rajesh Vora - Jain May Venture - Analyst : Okay, no, so my question is, who are your competitors in this wherever you, since you win only 15 out of 100, what are the other companies get this order?

Question: Rajesh Vora - Jain May Venture - Analyst : sorry You US S U. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 11, 2025 / 5:30AM, SATL.NS - Q2 2026 Sathlokhar Synergys E&C Global Ltd Earnings Call

Question: Rajesh Vora - Jain May Venture - Analyst : Yeah, URC, yeah.

Question: Rajesh Vora - Jain May Venture - Analyst : Okay. Yeah.

Question: Rajesh Vora - Jain May Venture - Analyst : Yeah, and are they bigger than you or smaller than your company.

Question: Rajesh Vora - Jain May Venture - Analyst : Okay. So can SATHLOKHAR improve this win rate of 15% to 20, 25%? Is that possible, not possible.

Question: Rajesh Vora - Jain May Venture - Analyst : okay. And last question, your current team in terms of number of people and infrastructure that you have can handle what level of orders or revenues. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 11, 2025 / 5:30AM, SATL.NS - Q2 2026 Sathlokhar Synergys E&C Global Ltd Earnings Call

Question: Rajesh Vora - Jain May Venture - Analyst : Sure, that's very useful. No, I mean, it's a whole company in the full year of operation. If you, if your company has to handle 1,000 total revenues worth of orders, what is it required? Current team can do it in one full year. Or is it, you need to add more people, more infrastructure to execute, total 1,000s in a year.

Question: Rajesh Vora - Jain May Venture - Analyst : Okay, yeah, okay. And what is the typical working capital because there has been significant increase in receivables of 16-year-old. There are loans

Question: Rajesh Vora - Jain May Venture - Analyst : Okay. So, you have to give advances to whom? So much of advances, 46 crores.

Question: Rajesh Vora - Jain May Venture - Analyst : Okay, but usually working capital is 20% of revenue, is that what you're saying?

Question: Rajesh Vora - Jain May Venture - Analyst : Okay, I understand. So you operate where you TRY to operate at 30 and get More margins. Is that how you do?

Question: Rajesh Vora - Jain May Venture - Analyst : Okay. All the very best. Thank you so much.

Question: Siddharth Goel - SOL - Analyst : Good afternoon, Thiyagu sir. I'm Audible. Congratulations for this, consistent growth.

Question: Siddharth Goel - SOL - Analyst : So sir, I want to understand on the debt position like you mentioned that we require somewhere around 20 to 50% of working capital. So somewhere around 20 to 50 croes for every 100 kros of revenue. Yes, and, as you mentioned, the pre IPO call that we have enough smoking capital to be somewhere around 5000-600 rolls of revenue, right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 11, 2025 / 5:30AM, SATL.NS - Q2 2026 Sathlokhar Synergys E&C Global Ltd Earnings Call I just wanted to understand, like how are we planning, how much growth can we foresee with the same level of debt and when do we need to require, raising debt, and, how are the plans accordingly.

Question: Siddharth Goel - SOL - Analyst : And we'll be able to achieve that without raising any further External debt.

Question: Siddharth Goel - SOL - Analyst : We will be able to achieve those, revenue targets without raising external debt.

Question: Siddharth Goel - SOL - Analyst : Okay. Thank you. Best of Luck.

Question: Preeti Jaswal - SJ Logistics - Analyst : Hello, sir. Good afternoon.

Question: Preeti Jaswal - SJ Logistics - Analyst : Yes, sir. My question to you is, sir, with, a ebita of margins increasing by over 400 basis points, can you provide more details on your margin expectations by project type or Sector?

Question: Preeti Jaswal - SJ Logistics - Analyst : Yeah. Yes, sir.

Question: Preeti Jaswal - SJ Logistics - Analyst : Okay, sir, one more question is, are certain segments more profitable? And if they are, if there is any, segment that is more profitable, then do you prioritize them moving forward?

Question: Preeti Jaswal - SJ Logistics - Analyst : Okay sir, I understand. Okay, thank you for answering my question, sir. Thank You.

Question: Akhilesh Reddy - - Analyst : Yes, sir. Hello, good Afternoon, sir.

Question: Akhilesh Reddy - - Analyst : Congratulations On the good Growth in numbers.

Question: Akhilesh Reddy - - Analyst : I visited our stall in Mumbai, and the experience was very good. However, I noticed that many companies participated in the exhibition. In my opinion, competition is increasing in the industry. What is your opinion on the competition and growth side? Thank you, sir.

Question: Akhilesh Reddy - - Analyst : Okay, thank you, sir.Thank you for your, detailed explanation. All the best for the coming future.

Question: Sagar - H&I - Analyst : Yeah, am I audible?

Question: Sagar - H&I - Analyst : Yeah, thank you sir this Is my question, sir. Sir, I have two questions. So, the first one is what is a typical timeline for executing an order.

Question: Sagar - H&I - Analyst : Okay, so in that case, considering the number of, the order that you're working on which is 5,000 ross plus and assuming the same conversion rate which you historically achieved about 15%, is it safe to say, next year we are looking at the 800 crores plus kind of top-line like a FY 26.

Question: Sagar - H&I - Analyst : No, sir, I get that. I'm just doing mathematics here, 5,000 something cores of orders that you're working on 15% plus conversion ratio, so that gives you your whatever 800 cores plus kind of number.

Question: Sagar - H&I - Analyst : Okay, excellent. Thank you, sir. Thank You.

Question: Kunal Joghankar - M Wealth - Analyst : Hello.

Question: Kunal Joghankar - M Wealth - Analyst : Yes sir. My question is, like, most of our projects were in, specific, concentrated in specific states, so how we are planning to Diversify and, in like a geographic Footprints.

Question: Kunal Joghankar - M Wealth - Analyst : Okay, sir. Thank you.

Question: Krupa Desai - Electrum Capital - Analyst : Hi sir. Am I audible?

Question: Krupa Desai - Electrum Capital - Analyst : I'm fine. How are you, sir?

Question: Krupa Desai - Electrum Capital - Analyst : Sir, firstly, congratulations on good set of numbers. So the question was that I understand that we have to pay advances to our supplier, but can you tell me when will we become OCF positive and what will be our average working capital day cycle going ahead?

Question: Krupa Desai - Electrum Capital - Analyst : No, sir, my question was, what will be our average working day cycles and when will we become the cash flow positive right now we are cash flow negative, right?

Question: Krupa Desai - Electrum Capital - Analyst : Okay.

Question: Krupa Desai - Electrum Capital - Analyst : No further questions.

Question: Shrida Jadav - JM Financial - Analyst : Sir, just wanted to understand If you are seeing any, big you're

Question: Shrida Jadav - JM Financial - Analyst : Yeah, is it better now?

Question: Shrida Jadav - JM Financial - Analyst : So just wanted to understand if we are seeing any, repeat orders from our existing customers, for example, any big orders from Reliance, Godrej SP Group.

Question: Shrida Jadav - JM Financial - Analyst : So sir, with with these repeat customers, with this repeat large order, book, can we say that going forward our win ratio and the incremental project would be higher or or this 15% is SCP for new customers.

Question: Shrida Jadav - JM Financial - Analyst : Yeah, understood, sir. I appreciate that, with your clients growing, your order book and profitability will grow. So my next follow-up question is, are we the exclusive, EPC vendor, or there are, other players also like, for example, an SP or a Golden Alliance, when they set up new factory or when you have expansion plans. Are there multiple, contractors, or you would be the, you would, you have currently enjoy an exclusive kind of a relationship at least in the states where you have demonstrated your, track record.

Question: Shrida Jadav - JM Financial - Analyst : No, sir, my question was that, so for example, take the example of Reliance Sampacola. So, say if you want to set up 5 new factories, so will all of the 5 new factories come to you, or it is like 3 may come to you and 2 may go to your competitor? That was my question. Like, are we, do we currently enjoy an exclusive kind of relationship or.

Question: Shrida Jadav - JM Financial - Analyst : Okay, sir.

Question: Siddharth Goel - SOL - Analyst : Sir. So, pre-IP, so you had mentioned that we are creating a separate vertical for solar.

Question: Siddharth Goel - SOL - Analyst : so, and we are also the authorized channel partner for Data Solar, right?

Question: Siddharth Goel - SOL - Analyst : Yes sir. So I just wanted to know what is the progress on that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 11, 2025 / 5:30AM, SATL.NS - Q2 2026 Sathlokhar Synergys E&C Global Ltd Earnings Call

Question: Siddharth Goel - SOL - Analyst : Okay, so, and how is the margin profile as against the other EPC work that you're doing?

Question: Siddharth Goel - SOL - Analyst : Okay, so similar margin profile.

Question: Siddharth Goel - SOL - Analyst : Okay, so the turnover ratio will be possible.

Question: Siddharth Goel - SOL - Analyst : And like we are the authorized starting partner for Data solar. So are we just using the solar for the in whatever plants that we are manufacture? Are we taking separate projects for just putting up the solar plants?

Question: Siddharth Goel - SOL - Analyst : Okay, I can get the advertisement part, so as well like, advertisement. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 11, 2025 / 5:30AM, SATL.NS - Q2 2026 Sathlokhar Synergys E&C Global Ltd Earnings Call

Question: Siddharth Goel - SOL - Analyst : Okay, and they're willing to share extensions for.(Inaudible)

Question: Siddharth Goel - SOL - Analyst : Okay, great, thank you so much.