Thank you so much. Good afternoon, everyone.

On behalf of Nuvama, I welcome you all to Q1 FY27 earnings conference call of Venus Pipes & Tubes Limited. We are pleased to have with us management team of Venus Pipes represented by Mr.

Arun Kothari, MD; Mr. Dhruv Patel, Whole-time Director; and Mr.

Kunal Bubna, CFO. We will have our opening remarks from the management, followed by the Q&A.

Thank you, sir, and over to you, Arun sir.

Good afternoon, and warm welcome to everyone on the Q1 FY27 earning call of Venus Pipes & Tubes Limited. I am joined by Mr.

Dhruv Patel, our Director; Mr. Kunal Bubna, our CFO; and SGA, our investor relation advisor.

We have uploaded our Q1 FY27 presentation on the stock exchanges and the company website, and I hope you have had an opportunity to go through the same. I will begin with the brief overview of the operational environment, followed by update on our business and capacity expansion initiatives, and then discuss our performance across domestic and export markets.

The global operating environment continues to remain uncertain, with geopolitical developments, supply chain disruption, and volatility in commodity prices impacting business across markets. At the same time, the medium to long-term outlook for the manufacturing and infrastructure remains encouraging.

India continues to stand out as a one of the key growth economies globally, supported by a healthy domestic demand, infrastructure investment, manufacturing expansion, and increasing localization across industries. The continued shift towards the India as a manufacturing and sourcing destination is also creating opportunities for Indian engineering and industrial products manufacturers.

For the stainless steel industry, we see structural growth opportunities across sectors such as oil and gas, chemical, petrochemical, power, pharmaceutical, and other process industry. The new demands is also coming from the data center.

We believe these trends provide a strong foundation for the industry growth over the coming years. Coming to Venus, we are building our next phase of growth.

We remain focused on building a comprehensive stainless steel engineering platform combining scale, product breadth, quality, and global reach. Our objective is to establish Venus as the first reference and preference for stainless steel engineering solution.

Over the last few years, we have consistently invested ahead of demand to strong our capacity and our product portfolio. We are now entering an important phase where these investments are beginning to translate into new growth opportunities.

Now, I will hand over to call to Mr. Dhruv Patel for updates on the quarter.

Thank you, Arun ji. Speaking of the quarter gone by, we continue to see healthy demand across our key end-user industries.

A key development, as announced on our last call, has been the commencement of our fittings and value-added seamless and welded pipes and tubes capacities in May. We have started receiving encouraging response from our customers for these products.

As with any new product category, customer approval and certifications are an important part of the process, and we are working closely with customers across industries to complete these requirements. We expect penetration to improve progressively as these approvals come through and customers start scaling up their orders.

We took another important step towards forward integration by entering into pipes spool business, with a planned capex of around ₹70 crores, backed by LOI from client in data center segment, as announced in the previous quarter. The project is progressing well, and we remain on track to commence the spooling facility by end of this year.

Venus has been among the early players in the stainless steel pipes and tubes industry to pursue forward integration into fittings and now spooling. These initiatives are an important part of our strategy to progressively build a one-stop piping solution for our clients.

By expanding our product basket, we will be able to address a large share of our customers' requirement, enter higher value applications, and deepen our relationship with clients. We also expect this to improve our product mix over time.

Coming to our performance during the quarter, revenue growth was driven by combination of volume growth and higher realization, with realization benefiting from the increase in steel prices. While higher steel prices supported reported revenues, our EBITDA per kg also improved.

We also saw a higher growth in welded pipes and tubes during the quarter, while the contribution from seamless pipes and tubes also remained healthy. Going forward, our focus will remain on improving our product mix, increasing the contribution from value-added products, and driving operating efficiencies.

As our newer capacity scale up, we expect this initiative to support the quality of our earnings and margins. On the geographical performance, our domestic business continued to witness healthy demand across key end-markets.

We remain focused on sectors with strong structural demand for stainless steel pipes and tubes, including oil and gas, chemical, pharmaceutical, and engineering, while simultaneously increasing our presence in higher-value applications. During Q1 of FY27, our domestic revenue stood at ₹227 crores, registering a robust 31% year-on-year growth.

We remain confident about the domestic opportunity and will continue to deepen our presence across existing sectors, while also penetrating into newer sectors, such as data centers and solar, wherever expanded product capabilities can create opportunities for growth. On the export side, we continue to see a healthy opportunity for Indian manufacturers as global customers increasingly look to diversify their sourcing base.

Our presence across multiple geographies provide us with a diversified export platform, and we continue to work on expanding our customer base geographical reach. However, the prevailing geopolitical tensions have created some uncertainty in the export environment.

Despite this external challenge, the healthy traction in international markets and secured strong export orders from our key export markets, particularly US during this quarter. Exports remained robust at ₹94 crores, contributing nearly 30% of our total revenue, reflecting the strength of our product portfolio and customer relations across global markets.

Going forward, our focus will be on further diversifying our geographical presence, entering newer markets, and increasing the share of value-added products in our exports. Our investments in capacity, product range, and certifications will help us capture these opportunities over the medium term.

Our order book for the quarter also stood strong at more than ₹600 crores, without considering the LOI of ₹185 crores, with a strong mix of domestic and export reflecting strong demand for our products. Overall, we believe Venus is entering an important phase of its growth journey.

The investments we have made across fittings, value-added seamless and welded pipes and tubes, and now spooling are expanding our product capabilities and opening up new avenues for growth. Our larger objective is to build Venus into a one-stop piping solution provider and engineering solution provider with a broader product portfolio, deeper customer relationship, and growing presence across geographies.

We remain focused on scaling these new businesses, improving our product mix, and continuing to grow faster than the industry, while creating sustainable long-term value for all our stakeholders. With that, I would like to hand over the call to Kunal ji, our CFO, to take you through the financial performance of the company.

Good afternoon, everyone. We are pleased to share that Venus Pipes & Tubes has delivered a record performance in Q1 FY27, achieving our highest-ever quarterly revenue and EBITDA.

On revenue front, revenue from operations for Q1 FY27 stood at ₹320.5 crore compared to ₹276.4 crore in Q1 FY26, registering a 16% year-on-year growth. The revenue mix for the quarter comprised 55% from seamless pipe, 39% from welded, and 6% from others.

Within the core business, seamless pipe revenue grew 15% year-on-year, while welded pipe revenue grew 21% year-on-year during the quarter. Export sales stood at ₹94 crore compared to ₹103 crore in Q1 FY26.

Exports were impacted by disruption arising from geopolitical situation. Despite this, export continued to contribute around 30% of our overall revenue, reflecting the strength and diversification of our internal business.

Coming to EBITDA, EBITDA for the quarter stood at ₹51.5 crore, compared to ₹44.9 crore in Q1 FY26, registering a 14.7% year-on-year growth. EBITDA margins stood at 16.1%, broadly stable compared to 16.2% in the corresponding quarter last year.

PAT for Q1 FY27 stood at ₹26.4 crore, compared to ₹24.8 crore in Q1 FY26, registering a 6.5% year-on-year growth. PAT margin for the quarter stood at 8.2%.

Overall, we have started FY27 on a strong footing, with healthy revenue growth and record quarterly EBITDA. The underlying demand environment remain encouraging, and our expanding product portfolio provides us with multiple avenues for growth.

With this, I would like to open the floor for questions.

Good afternoon, sir. First question is that what are the utilization levels?

Also, are we maintaining the growth guidance for this year, which I believe was about 20%? If you could just answer that first.

The utilization level at welded is around something more than 60%, and for seamless is around 85-90%. We are maintaining the guidance at similar level.

Sir. One more thing, sir.

During your remarks earlier, you mentioned that we'll be focusing on improving our product mix. If you could just tell me what is the target product mix that we are aiming for?

Is there a specific proportion that we are targeting?

Primarily on the side of welded, in the last year only we started with the value-added tubing business. That is the area we are focusing to increase their proportion.

Secondly, the capex what we finished in the end of May 2026, wherein we added quality on the side of seamless tubing business, and apart from that, we also added fitting business in our armory. We believe all this, in coming quarters to go, you should see the impact of this value-added product.

Sir. Thank you.

Thank you team. Thanks a lot for the opportunity.

Just two questions from my end. One is on the order book.

Did I hear it correctly that you said your order book is ₹600 odd crore currently, which if I am not wrong was around ₹450 last quarter?

Yes.

Sir, where was this ₹150 crore of addition? Which kind of sectors could you enhance that, where is the incremental order book, ₹150 odd crore within a quarter is a huge number.

Where is this incremental order book, which sectors are contributing to this kind of a growth?

Primarily it's from power, engineering, chemical, and oil and gas.

Understood, sir. Secondly, on the fittings front, what sort of a response are we seeing in the market?

Where is the share of fittings at this point of time, some sense, and when do we see our margins inching up? I know you have a long-term guidance of again inching up to 18-19%, but when do we start seeing our journey improving on a quarter-on-quarter basis?

That's second and last question, sir.

See, fitting definitely, as we are selling pipe to the end customer, basically in many of the aspects, the end customer will be same. We are seeing encouraging response from the end customer, but as it is a very new business, again the requisite approval and process are underway.

We believe from this second quarter onward, a few volume from the side of fitting should also come into the business. Again, from the perspective of EBITDA, see, we started at the fag end of May the seamless and fitting business.

I think post second quarter, I believe we should see inching of margin.

Got that. Thanks a lot team.

All the best.

One more thing. Regarding order book, we are having order book of the ₹600 crore in the sector of pipes and fitting sector.

Apart from this, we are already having LOI of ₹185 cr for our spooling project. All together, we are having order book of near about ₹800 cr.

That was quite helpful, sir. Thank you so much for that clarity.

Hi team, thanks a lot for the opportunity. First question is on export and domestic mix.

While you alluded that you have a very strong order book across these two categories, in terms of FY27 mix, how should we think about it? Does this 30% eventually go to 40-45% at the end of the year, or any number that you want to share?

See, currently it should be more than 30%, but from the order perspective what we are in hand, we have more than 40 or around 45% from export.

Okay. Sir, last six or seven quarters we've seen that margins have been in the same 16% kind of zone.

Now with the spooling solutions and the fittings piece coming through, how should we think about FY27 margins and eventually FY28 margins with the scaling up of fittings and spooling solutions also coming through? I understand the approval side of things that Dhruv ji spoke about, but just wanted your sense there.

See,

the intent is to take it to 18% in coming 2 years to go. Definitely for FY27, it should be less than 17% on an overall basis.

Because see, third quarter will be the quarter wherein we will be starting majorly on the side of fitting and all, and again data center will also come in third and fourth, and then it will be getting spillover in coming year to go. Those things will happen over a few more quarters, then the margin from all the value-added product will start contributing in the EBITDA.

Okay. Sir, if you could just call out what is the debt at the end of first quarter and what should be the capex number that you are looking at in this year?

I'm guessing large part of your capex, but the number would help. Thanks,

sir. Primarily net debt level, it is around 250 to 280 odd crores.

What did you say the next?

Sir, capex.

Around ₹100 odd crores we are targeting, and net debt is ₹325 odd crores as on 30th June 2026.

Sir, this ₹100 crores would be used to increase which segment's capacity?

See, primarily the total ₹100 crore, ₹70 crore will be spooling and tube fittings and other machineries, 20 odd ₹15 odd crore will be towards maintenance capex and all, ₹2 towards solar plant. Between ₹100-₹110 odd crores.

Got it. Thanks a lot, sir, and all the best.

Namaskar, Arun ji. Ek broader question main poochna chahta tha.

If we see the composition of our business, we are in a speciality area, and generally our products have been at better end of the product portfolio profile. It is also evidencing good export performance generally speaking over the period of time.

Despite customer adaptability, product portfolio, reasonable technology at work, and generally long-term favorable demand conditions, hum paanch saal mein dekhein toh mota-mota turnover teen guna hua hai, but that's from ₹400 to more like ₹1,150 odd or three times. Profit bhi mota-mota wohi band mein hai.

Absolute size of the business and absolute size of profit still remain very insignificant. Matlab net profit ₹100 crore ka aur kuch paune baarah sau crore ka turnover itni sab mehnat aur mashakkat ke baad.

Somehow sounds a bit underwhelming.

Thanks, Bharat bhai, for your concern. Bharat bhai, jaisa ki thoda business ka as you must have idea about the stainless steel pipe industry.

Toh stainless steel pipe industry mein specially kya hota hai, approval and number of things required to penetrate in the market. Aur we had did the capacity expansion after the IPO in May 2022, we had did the almost three-time capacity expansion.

Toh we had created our Venus presence in the market in very well way. Aur apart from the creating presence, we had expanded our product portfolio also, just like fitting or we are now moving forward in the spooling solution where you will get the better margin since the in-house product of the pipes and fittings will be consumed in-house, aur we will able to provide the customer complete engineering solution.

Toh in the coming quarters, after one or two quarter, definitely you will able to get the improvement in the bottom line in very significant way since we are entering into the value-added product. Aur some of the product will be consumed in-house, which will give the value-addition benefit.

Aur our focus from very beginning was to be the matlab you can say ki early player in the every segment. We had started our journey simple as a fabrication of the pipe and ERW pipe, then we had did the backward integration for seamless pipe, then we had entered into the fitting market, now we are entering into the end-to-end solution for the customer.

Toh aapko do-teen quarter baad isme kaafi improvement dekhne ko milega towards the margin side. Aur hamara in future jo last teen saal mein humne growth ki hai in the top line, woh almost humne 30% ki run rate se ki hai.

Now our endeavor to growth at least minimum 20% and to improve the bottom line or as well as the improve the balance sheet of the company.

Those points are valid. Our products are more value-added.

Constantly we have tried to move up the value chain. We've built businesses with some demanding customers.

Obviously, quality of engineering at work, quality of the product, it passes all those tests. Main keh raha tha ki itni mehnat aur itne sab hone ke bawajood bhi absolute size of the business abhi bhi bahut chhota hai, matlab saare gyarah sau, paune baarah sau crore ka turnover aur mushkil se ₹100 crore ka net profit.

Doesn't it sound little underwhelming compared to whatever strengths and probably opportunities in the markets are?

Definitely, sir, hamara passion hai. This is a engineering business aur this is our passion of the all the promoter.

Toh definitely business thoda time lagta hai. We are very young player in this segment.

Toh abhi young player toh we had did the lot of capex in last 4 years. Toh due to this capex and we had taken some of the working capital borrowing to run the company or to manage the working capital, toh iske liye thoda sa bottom line pe effect kam aa raha hai.

Jaise main aapko bol raha hoon as we will go into the more value-added product toh waise jaise yeh margin towards 16 se aapko 18%, 19% do-teen quarter mein dekhne ko milega, toh you will see lot of improvement in that side, at the bottom line also.

Arun ji, hum dekhein toh 5 saal mein ya even 10 saal mein hamari interest cost is much higher than our depreciation charge. Yadi capex and capex intensity were affecting the business performance, interest cost wouldn't have been so high.

Interest cost typically year after year if you see is two times the cost of depreciation charge. Toh kehne ka I hope you're getting my point,

but... Definitely, Bharat bhai.

Hello? Bharat bhai, jaise maine aapko bataya na, jaise hi maine aapko jo bataya ki jo top-line growth hai, uspe bhi hamara focus maine bataya na 20% ka growth ka hamara focus hai aur abhi hamara direct focus bottom-line growth pe hai.

Jaise hi yeh margin aapka 18% ke aas-paas jaayega, 18-19% in the next two quarters, toh definitely aapko bottom-line growth dikhegi aur working capital borrowing ki bhi

itni zaroorat nahi padegi. Yeh spooling wala project aapne dekha hoga Ratnamani ke results abhi aaye

the.

Their spooling business has done phenomenally well. Of course, their pipes business still had some challenges.

Spooling business had a margin of almost 52%. It was staggering kind of a margin.

Do we think that our spooling activity will produce such a major difference like what we have seen for Ratnamani?

Bharat bhai, just not at par of the Ratnamani. Ratnamani had doing this spooling business since last 3 years.

I will not comment much about that one. Definitely, we are also forseeing good margin in our spooling business, better than the pipe business or fitting business.

In the coming quarters, once our spooling business will start, you will see result in two to three quarters.

Aur yeh kab shuru ho jaayega, Arun ji?

End of this Q3.

Kitni peak turnover expect kar sakte

hain? Main almost matlab you can say ki is saal mein toh FY27 mein almost top line ka 5% ke aas-paas expect kar raha hoon aur in FY28, I am expecting top line ka almost 10 to 15%.

Next year 10

to 15%? Haan haan, top line ka.

Achha.

Ek last question, Arun ji. Abhi jo overall sthiti hai and our backward integration attempts and doing all value-add efforts, and given where is the opportunity domestically which is robust, even exports I suppose should recover once this muddle hopefully is out of the way.

Aapke hisaab

se kitne saal mein yahan se hum soch sakte hain ki hamara business dugna hoga? Matlab almost right now we are in the FY27 hai.

Almost I am expecting ki in next 3 years, by FY29 or '30 in between, kabhi yahan se business double ho jaayega, usse pehle bhi ho sakta hai. Right now jo company ki capacity wagarah humne growth ki hai aur jo hamara plan hai, hamare business double se zyada hai ki hamara focus abhi towards margin ki taraf zyada hai, toh that's why agar business double ho ya nahi hoye, par margin side mein aapko kaafi improvement dekhne ko milega in next two to three quarters.

Achha. Jaise maine bataya ki in-house product jo pipes wagarah ban rahe hain, what's our aim ki jo main pipes wagarah banata hoon, usko almost in-house hi consume karoon.

In-house jahan pe fittings mein, spooling mein, in all this business activity. Toh wahan pe you will get the better value

addition. Matlab paune baarah sau crore ka jo last year ka turnover hai, by FY29 or FY30, somewhere in between, karib ₹2,500 crore ka hona chahiye hamara?

Before that,

haan. Bilkul

bilkul bilkul.

Margin should be at least 3-4% higher than where we are today?

Minimum we are targeting 3-4%, but on conservancy, you can assume ki it will be minimum 18%.

Theek. Thank you, Arun ji.

Thank you for the opportunity. Am I audible?

Yeah. Hi, Arun ji.

Arun ji, I had a couple of questions. First, we have showcased a good order inflow this quarter for our closing order book to be around ₹600 crore.

Just wanted to double-click on that, where are we seeing those new order inflows coming to us? Means is it within the existing customer base or is it that we are added new customer in this quarter to drive such an high order inflow?

It is more than what we reported in the last four quarters. Just curious to know is it within the same customer that we are gaining wallet share or we have added a few more customer this quarter?

Most of this order inflow, is it related to domestic market or it includes a mix of both domestic and exports?

It's a mix again, both domestic and export. The order inflow has been good from USA in this order book of ₹600 odd crores.

Again, in the domestic also again the customer are mixed, a lot of from power, engineering, chemical predominantly. From power from the repeat customer also and few from engineering, chemical from new customer also.

It's a mixed bag.

Okay. Fittings, as you already highlighted, we are planning to commercialize this.

What kind of revenue are we expecting from the fitting division in FY27 and '28? FY27,

we're expecting around 5 5 to 7% of the total top line. In coming year to go, we are expecting around 10%.

Less something less between 8 to 10%.

Okay. One last point.

Just sir highlighted that we are looking at a 20% growth, which almost signifies an ₹1,400 crore revenue for us. And 5% of that is roughly ₹70 crore, and that is what was indicated that we are anticipating ₹70 crore worth of revenue from data center.

If I remember correctly, in the last call, you indicated that the order book execution of that ₹185 crore letter of intent is around, I think, 15 months, which basically gives you an ₹37 sort of crore kind of revenue. Since we're executing only for a quarter, I'm just curious where is this mismatch of ₹70 crore top line from data center versus what you indicated earlier that it's going to commercialize only in Q4, which indicates that it would not be more than ₹40 crores?

See,

what we have done ki lot of work on the side of plant perspective has been done on the data center, and the customer is quite curious to get it done at a faster pace. We have pulled up many things for the data center, and we are quite hopeful significant portion, see the entire capex may overlap to fourth quarter of Q4 FY27, but major portion we are targeting to finish before December 2026.

We believe good amount of top line will also be contributed from data center. The execution period is basically, you can say, before December 2027.

Again, we will try our level best to finish at earliest.

Okay. Thank you.

Good afternoon, sir. Thanks for the opportunity.

Sir, this quarter, we have seen the growth in the welded pipe segment is much higher than the seamless. If I look at your historical, the seamless have grown much better than the welded.

What has changed for us in the welded pipe segment particularly? Oh,

see what has happened with us, the seamless was to a good extent utilized to the maximum, as we added the capacity by the fag end of May 2026. The contribution for the increased capacity will be coming from the coming quarter to go.

Again, we have been trying to increase welded and we have been able to do that in this quarter on the side of welded.

Sir, any particular sector that have given us a growth on the welded?

No, it's a mix sector again, not a specific one.

Okay. Do you expect, sir, seamless pipe run rate to remain the same since we are running at a full utilization?

See,

with the new capacity, the intent is to get it run at a full capacity. Again, it will not be in the immediate quarter.

Each passing quarter, we believe that capacity utilization should keep on increasing, and the intent is to take it to the fullest going forward.

Okay. Thank you so much, sir.

Am I audible?

Yes.

Yeah. Thank you so much for taking the opportunity.

My question is around welded and seamless bifurcation. What sort of ratio for domestic revenue and export revenue for welded product and seamless product individually?

On a blended basis, we generally give it's around 80-20%.

On a blended basis, you can't give bifurcation for welded and seamless? Blended is 80-20, is it?

Yeah.

Blended

if you take, definitely in the last quarter, seamless was more.

Last quarter, seamless was more. What about this quarter?

This quarter matlab Q1 Q1 quarter.

Any numbers that you want to quote in terms of the percentage?

No, I don't.

Okay. Seamless was more than 80%?

Yes.

Okay. Also on the capex part that we are having going to live for spooling, we are expecting in Q3 FY27 it will go live, correct?

Yes.

Okay. What sort of demand are we looking at in that part?

In spooling?

Sorry?

For spooling, you said,

no?

Yeah. See, India data center capacity, what we believe was around 1.3 gigawatt roughly in 2025, which is targeting to grow by 8x around 10.5 gigawatt in coming 5 years.

We believe good amount of demand is there on the side of data center. These generally pipes are required for cooling in the data centers, primarily known by the name of SFN, Secondary Fluid Network.

We are quite hopeful a good robust demand should be there in this line of business. Apart from that, we are working on other sectors also, varying like solar and others.

We believe the company expect a strong demand across several high-growth and newer sector, like data center, power, semiconductor, CNG station, railway infrastructure, and also going forward, nuclear energy. In addition to this, if you see this domestic opportunity, the company continue to focus on expanding its overseas business.

We believe with the gradual easing of this geopolitical tensions and normalization, export opportunities are expected to improve further. You see the combination of this incremental seamless capacity, improving utilization, a favorable shift towards higher margin product like fitting and spooling, and demand from this emerging sectors and potential recovery in overseas markets should support, I believe, both revenue growth and volume performance over the coming quarters.

Okay. Sir, we are more or less bullish on...?

No, see, it's all depends you also need the geopolitical situation should also improve, that should help the company to grow.

Okay. Got it.

Understood. Thank you so much for answering the question and all the best.

Thank you.

Hello, sir, a very good afternoon. I want to know that we want to more or less double our revenues by Q2 of FY30, if I'm not wrong.

That comes to a CAGR of around 23% versus our FY27 revenue growth target of 15%, if I'm not wrong. We plan to grow more aggressively in the later years of FY28 and '29?

No, the revenue growth we are targeting is around 20% for FY27.

More or less, we will achieve double our revenues by Q2 of FY30?

That how we are proceeding as a primarily 20% kind of growth for coming year to go.

Sir. Second question would be on what would be your internal mix that you want to achieve in terms of domestic and export revenues in the long term, and the revenues between seamless and welded?

See, again, for the export perspective, the intent is to be above 30%. The intent is that, and again, it's all depend how the orders, how the markets play out, wherein sometimes the export can increase further.

The intent is to keep it more than 30% on the side of export.

The revenue mix internal target of seamless and welded? See,

if you see sort of near to what currently we are having, the mix is should go like that.

Sir, in the export markets where the customers have multiple sourcing options globally, what specific advantages or differentiations lead customers to choose Venus over competing suppliers?

There are many factors which play while they choose you as a customer. See, we are equipped with the entire facility of both welded and seamless.

The number of SKUs what we can offered are quite in numbers. Again, with the addition of fitting, they get a forward integration also of the product which we can offer to them.

Apart from that, timeliness delivery, quality of product, which we have been doing since last many years. Those things, the certification, qualifications, and everything help us.

Everything in tandem plays to make them Venus one of the main supplier supplying in the overseas market. Again, you added a team of people in many of the geographies of the world who are senior people who know the very minor details of these products and business, who also help you a lot in getting these orders and all.

Again, we participate in many of the conferences happening around the world, that also help where you can display your strength, your products, your technical capabilities, and others. Hello?

Yes. Hello, am I audible?

Yeah. I had a question.

We are doing a ₹70 crore capex for the spooling facility. What is going to be the total capacity for that?

See, again, these are generally sold on numbers and all. Giving a capacity number on the side of spooling will be quite difficult.

What we believe, this should contribute at least 3x of the capex in the form of revenue.

Okay. The asset turn you're saying is 3x?

It should be more than 3x, yes.

Okay. My next question is once we commercialize the facility in Q3 FY27, how fast can we ramp it up?

Like you mentioned that from data center, we can expect around 5% of revenue contribution in FY27, and I'm assuming that that is coming from the spooling facility only. Is that assumption correct?

It's right. The primarily post start, the intent is that to ramp it very fast.

Again, as you said that we already have a LOI in hand. The things are working as per this LOI and all, we definitely believe the intent is to ramp it very fast, and the end customer who's placed for LOI is also wanted to move it fast.

I think this should help us to take quickly at the number what we are expecting.

Right. My last question is in FY28, can we expect the margins to improve further because the spooling facility will also have the full effect for the whole year?

Definitely, as we said, the combination of incremental seamless capacity, improving utilization, a favorable shift towards higher margin product like fitting and spooling, demand from emerging sector, and potential recovery in overseas market should definitely support both revenue and margin, we believe, going ahead.

Okay. Understood.

Thank you so much.

Thank you.

Yeah. Hi, good evening.

Just one question. On this revenue target that you just talked about, 20% for FY27, can you just break that growth between seamless, welded, and fittings?

How would each of these segments broadly grow for the entire fiscal, FY27?

Can you repeat?

In your revenue target that you just talked about, 20% revenue growth you are aiming for in FY27, what would the growth be for welded, seamless pipes, and for fittings separately?

The growth would be basically, in a growth percentage, we are targeting from both welded and seamless would be around 20% in both the cases what we are targeting currently. From the fitting and spooling, see, as we said, it should be at least 5% from fitting, which should contribute to this top line for FY27.

I think approximately for the year, steel prices probably are higher by at least 5-6% on average. Then is it fair to assume that the volume growth for this year would be 10 to 15% at best?

No, if I take fittings, spooling, seamless, welded all together, we believe we should be higher than 15% on the volume front also.

Spooling will not be much in this...?

No, but again, some part of fitting and spooling will definitely come, definitely it will contribute in some quantity also on the quantity level.

How much would fittings be on quantity level approximately, just to get some sense?

It will be very currently very tough.

Less, right? Yeah.

Okay. Fine.

Thanks a lot. That's the only question I had.

Hi, sir. Thank you so much for the opportunity.

Am I audible?

Yes, a bit low.

Just a sec.

Am I audible now?

Yes.

just wanted to understand, you mentioned that in the data center spooling, we have a ₹185 cr of LOI. Is there a possibility of this going further, like we can get more orders here, or this is the highest order we can get?

No, no, see, it's very very common to once you are established and you get an approval and all, definitely we as a company believe we should definitely have more orders from data center coming anyway. Once you start your facility, execution demonstration has been done to the end customer, it definitely helps you a lot in getting a few more orders.

Definitely we are working towards that only.

Okay. Are there any more customers with whom we are having chat or inquiries regarding the DC spooling orders, or that will come only after the capacity is online?

See, it's very common again as a company we keep on working with a few more customers in the spooling line also. We mean to say ki when you had your facility in place, when you start supplying, it add more push towards the end customer to place an order with us.

Definitely yes, we are working with few other also.

Understood. Sir, when can we expect a pick up in the export revenue?

We have seen a degrowth in this quarter. Is growth on line from Q2 onwards, or it will take some more time?

The intent is to do it in Q2, but again, we all know there are a few geopolitical and container issue in this quarter, Q2 primarily. Might be a few pick up might be there, but definitely Q3 and forward, it seems to be more good from the export perspective.

Understood. Sir, does export have a higher margin as compared to domestic, or because of the increasing freight cost and power cost, overall margins have taken a slight hit this quarter?

Generally, when you are established in the export market, you tend to earn a slightly higher margin. Again, your domestic orders are also there where you can chip in and you can get a similar margin or in sometime incremental margin.

Those all depend on case-to-case basis.

Okay. In this ₹600 crore order book, what is the split between export and domestic?

More than 40% is export.

Understood. Thank you.

Hi. Arun ji, thank you for the opportunity.

I had just one question. This EU has significantly probably reduced the safeguard quota for seamless steel tubes and pipes, and beyond the quota, there is a duty of 50%.

I'm just trying to understand if the export revenue decline attributable to that or was it just geopolitical? How are we planning to navigate such kind of quotas implemented in the EU?

This is mainly due to geopolitical only. The quota has been reduced by 25% only for the Europe.

Otherwise, previously also when the quota was complete, approximately 6,000 metric ton, the export from India was going more than that. If they require anything seamless pipe, India is best source of supply for them.

This was due to geopolitical only.

Got it. I'm sure like you said that India was exporting more than the quota, it will definitely impact players like us?

No, I don't think so. Venus presence has been number of geography, apart from the Europe, USA, Middle East, in the Southeast Asia also we are creating our presence.

We have our marketing every places. Sometimes according to our requirement also, domestic demand, export demand, every place demand, sometimes we used to say no for the order also when we had the not much capacity is available for that one.

Recently, we had did the good capacity expansion in seamless pipe segment. After that, you will definitely this year see in the growth in the export revenue.

Got it. Understood.

Just one more follow on with respect to the spooling order that we have won. The solution that we will be offering, does it flow down from the CDU or what is the product's utility in the data center?

Is it around the building or will it be flowing down the CDU?

It is in the building. The product name is the SFN, Secondary Fluid Network in the data center.

It's inside the building.

Got it. From the CDU to the rack, if I understand?

Yeah.

Yes.

Got it. Thank you so much.

I'll come back in the queue.

Hi, Kunal. Thank you so much for this.

Can you hear me?

We can hear you.

Most of my questions are answered. Just wanted to understand about competitive intensity.

Are we seeing competition increase when we are reaching out for orders, undercutting, anything along those lines?

See, few peoples are coming in this business, but again, as we have said ki the intent of our diversifying to number of geographies, number of product, and number of world market, we should be able to keep apart from this type of competition. Again, addition of this few product like forward integration to fitting and spooling, this will definitely give us an edge to withstand those if something is there more.

Let's say in spooling, now we have another player which is also increasing capacity. How long will it take for us to get approved by customers for spooling?

We believe ki see, it's for new customer you ask me?

No, let's say even your existing customers who use our pipes, if we go to them with spooling, wouldn't they also take time to assess our product,

and how long would that take? That definitely it's again each one has their own way of approving.

It can take a few months, it can be slightly at a faster pace also. As we said ki as and when we start executing this current LOI, it definitely will give the utmost amount of confidence to many of the customer in the country and also abroad.

I think that will really drive the future spooling business and all.

Fine. In your current pipe business, just to understand, are we seeing a lot of undercutting, or just to understand how is the competition behaving?

See, bit competition is there, but not as such major

undercutting,

yeah.

Fine. Sure.

Thank you.

Thank you.

I'm there.

Sir, actually, I was not able to get the answer of what is our utilization levels in the seamless segment and the welded segment? If you can just clarify on that part.

More than around 60% on welded and around 90% for seamless.

Sir, but also just to adding on that part that we have seen our capacity ramping up for the seamless pipes, which usually contributes around 60% to the revenue, but even after the ramp up as the utilization, with the new capacity, we haven't seen much of a top-line growth, sir.

No, the new capacity, major of the new capacity has started by end of May 2026. Definitely, you will able to see in the coming quarter to go.

Sir. Going ahead, do we expect the margins to pick up, sustain, or how do we see it?

The intent is there to get it increased, but again, it's a mixed bag of contribution coming from welded, seamless, and other product. Again, when you add fitting and spooling, those started contributing, definitely the margins will be from that.

Okay. Sir, and any guidance on the margin for this year, margin side, please?

See,

for coming year to go, we are targeting of around 18%, which will keep on increasing in each quarter you can say a bit portion the intent is that.

Sir. We remain on track for 18% margin till FY28?

Yes.

Okay. Thank you so much, sir, for answering, and all the best.

Hello, sir. Good afternoon.

I have two questions. The first one is related to volume growth.

What was the volume growth during this quarter and for FY27 as well as FY28? Additionally, could you just share the specific volume and realization figures for both welded and seamless?

No, we are not giving as such those break up. On a year-on-year quarter, there is a growth of more than 7% on a blended basis.

The target Sir,

can you repeat volume growth for this quarter?

No, it's more than 7% on a blended basis. Targets we are given ki for each year is the revenue guidance is more than 20% in coming year to go.

Okay. What will be the capacity utilization trajectory for both welded and seamless for FY27 and FY28?

See,

it will definitely be in 20 on the side of seamless we are targeting more than 80-85% for both the years. On the side of welded, it should be exceeding 60-65%.

Okay. Thank you, sir.

Thank you all for joining us today. I hope we have addressed all your question.

We remain committed to keeping the investment community informed with regular updates on any developments in the company. For any further information or queries, please feel free to reach out to our SGA, our investor relation advisors.

Thanks, everyone.