Thank you, and good evening. On behalf of DAM Capital, it's a pleasure to have you all on Venus Pipes & Tubes Q3 FY26 post-earnings call.

From the Venus team, we have Mr. Arun Kothari, Managing Director; Mr.

Dhruv Patel, Whole-time Director; and Mr. Kunal Bubna, the Chief Financial Officer.

We'll have the opening comments from Mr. Kothari first, followed by the Q&A.

Thank you.

Good afternoon, and warm welcome to everyone on the Q3 and nine months FY26 earning call for Venus Pipes & Tubes Limited. I have been joined by Mr.

Dhruv Patel, our director; Mr. Kunal Bubna, our CFO; and SGA, our investor relation advisors.

We have uploaded our Q3 FY26 investor presentation on stock exchanges and company's website. I hope you had an opportunity to go through the same.

I will give insight on performance of the economy, followed by performance of the company. The honorable finance minister recently presented her ninth union budget, outlining the government's economic plan with a clear focus on growth, investment, and financial discipline.

The government focus continues to remain on growth-led environment, supported by strong push towards public capital spending. Capital expenditure has been increased to ₹12.2 lakh crore for FY26-27.

Further, the recent FTA will also help domestic manufacturing sector. That underlines the government's commitment to building better infrastructure and supporting job creation and encouraging private investments.

It also places strong emphasis on the power sector and semiconductor sector, both of which present meaningful growth opportunity for the company in the years ahead. The budget along with recent GST rate rationalization measure is expected to further strong the economy.

Overall, the budget reflects strong policy continuity and steady approach towards building a resilient, stable economy. On the industry front, the stainless steel pipes and tube industry continues to gain importance compared to other type of steel and pipes, driven by its superior quality, durability, and long service life.

As highlighted in our earlier calls, while industry demand is growing, a significant portion of this demand has traditionally been met by the unorganized sector and imports. With tighter regulations and customer placing greater emphasis on quality and long-term reliability, we are seeing a steady shift away from unorganized players.

On the import side, anti-dumping duty is also supporting domestic high-quality manufacturing. Coming to Venus Pipes & Tubes, your company has established itself as a trusted brand, known for consistent quality across both domestic and international markets.

Over the years, we have built meaningful scale, and today stand among the leaders in installed capacity in the country. As we scaled up, we also focused on moving up the value chain.

By steadily expanding our product range, we have created our presence across several critical industries and improved our ability to serve more demanding applications. This approach has helped us build a deeper customer relationship and positions us well to capture long-term growth opportunities.

Our product portfolio has continued to evolve in line with changing market needs and customer expectations. With our recent capacity expansion into value-added products, we believe that company is entering a new phase of its growth journey.

Going forward, growth will be driven by higher share of value-added offerings and increased participation in critical end-use sectors. These segments demand strong technical expertise, consistent product quality, and proven execution track record.

Capabilities that take year to develop. Our long operating history, strong customer trust, and disciplined execution give us the confidence to scale successfully.

In these areas, clearly differentiating Venus Pipes & Tubes and setting the foundation for a sustainable and higher-quality growth path. Coming to our Q3 and nine months FY26 operational performance of the company.

Our growth journey is backed by numbers. We continue to report record quarterly performance, with all-time high revenue of ₹296.7 crore for Q3 FY26, growing by 28.3% on a year-on-year basis.

On nine-month basis, as well, we have reached revenue of ₹864.7 crore in nine months FY26, which is already 90% of our FY25 full-year revenue. Our domestic performance improved significantly during the quarter, with revenue growing 43% year-on-year to INR 2 203 crore, and more than 15% sequentially.

The domestic demand environment improved meaningfully during the quarter, as well as export continue to perform well, contributing around 31.5% of revenue at INR 93.5 crore. On a segmental basis, for nine months FY26, both seamless and welded pipes delivering strong performance, registering growth of over 27% and 22%, respectively, reflecting sustained demand and stronger execution across the businesses.

Our capacity utilization remains healthy, with newly commissioned capacity ramping up well and contributing meaningfully to volumes. Supported by a strong order book of approximately INR 4 470 crore, we remain confident of accelerating the ramp-up of this capacity and driving further growth in the coming quarters.

On the capex front, our new capacities for fittings, as well as seamless pipes and tubes, are progressing well and remain firmly on track. These facilities are expected to come on stream over the coming months and we will further able to cater the high-value and critical application segment.

Overall, we are excited about the year ahead and confident that 2026 will be a year of meaningful growth and driven by the commissioning of the new capacities and our continued expansion into a more value-added product portfolio. With this, I hand over to Mr.

Kunal Bubna, our CFO.

Good afternoon, everyone. We are pleased to share that our company has delivered a resilient performance in the third quarter and nine months ended December 25.

On revenue front, revenue from operations for Q3 FY26 stood at ₹296.7 crore as compared to ₹231.3 crore during Q3 FY25, achieving a growth of 28.3% year-on-year basis. Revenue for nine months FY26 stood at ₹864.7 crore, witnessing a strong growth of 23.5%.

Revenue bifurcation for the quarter was 34% from welded, 60% from seamless, and 6% from others. Growth in the seamless segment was 43% on year-on-year basis, and welded segment registered a growth of 7% for Q3 FY26 on year-on-year basis in terms of revenue.

Our export sales stood robust at ₹93.5 crore for the quarter compared to ₹89.1 crore during the same period last year, a growth of 5% on year-on-year basis. On the EBITDA front, our EBITDA for the quarter stood at ₹48.8 crore as compared to ₹37.2 crore in Q3 FY25, a growth of 31%.

EBITDA margin for the quarter stood at 16.4% compared to 16.1% in the same period last year. On nine-month FY26 basis, EBITDA saw a growth of 12%, standing at ₹141.1 crore with margin at 16.3%.

On the PAT front, PAT for Q3 FY26 is ₹25.6 crore compared to ₹18 crore in Q3 FY25, a growth of 42% on a year-on-year basis. PAT margin stood at 8.6% for the quarter.

During the quarter and nine months, we had a one-time impact of approx ₹60-55 lakhs due to increase in gratuity and leave liability on account of changes in labor code. As we look ahead, we are optimistic about the opportunities before us.

Backed by disciplined investments, consistent execution, and well-defined growth roadmap, we are focused on building a stronger Venus brand and raising the bar in the stainless steel pipes and tube industry. With this, I would like to open the floor for questions.

Thanks for the opportunity, sir. Sir, just one question on the export front, right?

We've seen a bit of a decline in momentum in terms of growth. How should we think about exports going forward, and if you could also share what is the split of the order book with respect to domestic and exports?

Any reason why the export growth is slow, and in the next year, how should, in your view, exports growth come through? That's my first question.

Primarily just to give on the front of order book, it's around more than 30% on the side of export and balance in domestic. If you see, we had also been exporting to USA in the last quarter.

We did around more than 20%, but this quarter it was around 12% sort of number of the total export what we exported to USA. Again, the percentage has been more than 30%.

Definitely not it was as in the last quarter passing. Again, the order book is there from Middle East, Saudi, and good order book is also coming from Europe.

We seems ki more than 30-35% should be export also going forward, in coming forward year also.

Okay. With the tariff...

Just to also mention ki in case of US with the recent tariff ease which has been done. Because see, in case of our product, the section 232 duty of 50% was unanimous, same for every country exporting to USA.

There was a lot of apprehension because there was no predictability about the tariff, what would be the tariff. It can increase anytime.

I think that ease has been done in the recent two three days back. I think as in steel and tube perspective, we should see order from USA also coming forward in coming quarters.

Sure, sir. Sir,

my second question is on the fittings business. Given it's come on stream now in the second half, how should we think about it from next year growth perspective?

In the sense that what is the kind of contribution or any targeted revenue that you have in the fittings business, and how should it ramp up in FY28 as well? A two-year ramp up plan in that regard would be very helpful.

See,

as we said you earlier, the investment was roughly in the range of 60-odd crore in our fittings business, and we can see a asset turnover around 2.3-3.5 times. As you rightly said, the fittings business will be coming by end of this March 2026, from the next year we will be getting the benefit.

In the first year, maybe something around 50% of near to 50% of that should be contributing, and in the FY28, I think substantial portion of the capacity should be utilized from the fittings business.

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

Thank you, sir, for the opportunity. Sir, just wanted to understand a little bit on the value-added products.

Obviously fittings and the other products going ahead will be value-added. Can you give a percentage of the entire portfolio, how much it is now and in the next let's say two years how much that can become, and hence what impact on the margins can come through at matured utilizations?

See, currently if you see those value-added product, the contribution what is coming in the business is around 15% to 20%. Going forward, given the expansion what we are doing on the side of fitting and also on the side of seamless and other businesses, we believe it should be at least double of that what is currently being contributed.

On the front of EBITDA, it's 16.4%, 16.5% roughly for this current quarter, and we believe it can move from 16% to soon go up to 18%.

Up to 18% it can go when this value-added...

It will come in phases, definitely,

FY27

definitely improvement will be seen and FY28 should be the year where the entire improvement should come.

Okay. Just one more thing.

I think US was a smaller proportion right now of the overall revenue for us, but with this trade deal and all, do you foresee that US can become a bigger growth driver, and hence what are the segments that we will look at in that market? Petrochemicals, power, any sense on that?

Absolutely. With this ease of tariff, definitely US because we had been exporting to US in first quarter of FY26 was a good portion of our supply to USA, and post that Q2 and Q3, the number had been depleting.

With this ease, we definitely believe ki US should be increasing. See, the sector, obviously, we are not selling to the end customer there, but as you rightly said, it will be mix of chemical and engineering and other sectors.

Okay. Basically this quarter, the export growth was lower because US contributions came down in the last two quarters?

Yes.

Okay. Okay.

Lastly, can you share some order book details for this quarter? Right, sir.

It's around 470, out of that more than 30% is export and balance is domestic.

Okay, 30% is export. Okay.

Domestic is picking up, right? Any sense on domestic, how do you look at it the next two-three years?

It's going good from the perspective ki the orders are being received and power sector, oil and gas, engineering, EPC sector. Okay.

Okay. Got it.

Thank you so much. I will get back in the queue for follow-up.

Thanks.

Sir, can you give the order inflow numbers for nine-month versus nine-month last year?

Order?

Inflow.

No, matlab as such not a specific break-up we are giving as such.

Okay. Total order you only give order backlog?

Yes, sir.

How does this stack up versus last year? This 470 crore versus last year, what would be the number?

It was near to 350 crore.

Okay. My second question is your capacities which is to be commenced operation, it is fittings, seamless pipe, and condenser pipe or condenser pipe has started operations?

Condenser pipe has started operation. It will be fittings and seamless only.

What is the status in order for the condenser pipe capacity?

On a capacity perspective, we are running around 25% to 30% currently. Few of the approvals have been received from power sector for condenser tube, and few more approvals we are working on.

We believe ki those approval as and when are being received, it should expand the capacity utilization for condenser tube also.

Pritesh-ji, further to add this, this condenser section is not able to produce only condenser tube. We also supplied some grade in food processing industry as well as in pharma industry also for some of the good tenders in the coming months is floating in some of the power sector in India.

We are hopeful the condenser sector...

Sorry to interrupt, but there seems to be some echo in the background.

Sorry. We are anticipating...

Then sorry. One second.

One minute. Hello.

Now is okay?

It is better. Okay.

Okay. We are expecting some new tender which is floated from the India power sector.

Which will be open in next two to three months. We are hopeful the condenser plant capacity will improve in the coming quarters.

Okay. What is the peak revenue number possible out of the condenser capacity that you have put and the fittings capacity that you have put?

We are anticipating...

See, for condenser, if I take a full capacity run-up for fitting and value-added welded, the better name would be rather than condenser, it should be running around 350-odd crores.

This is for the value-added pipes and fittings?

Welded and fittings taken together.

Acha, fittings and the new pipes. Okay.

Okay. How much of this 350 crore do you think can come in FY27?

In FY20 27, see, on the side of seamless, we believe more than 80% of it. Seamless would be roughly between 220 to 250-odd crores.

Which we believe it should be 80%. On the side of value-added welded tube, which is 120-140-ish, in between that, there in we believe it should be around 70% of it.

Basically out of 350 crore, you will be able to do 250 to 270. That's how we should interpret?

Yes.

Then, we have a base product growth, right, plus these two new product areas that are going to start larger operations next year. Is it fair to assume that the revenue growth will be much higher than what you would have achieved in the last two years?

Absolutely.

What kind of revenue growth should we look at in FY27? See,

again, on a overall basis, what we are currently guiding is at least more than 20% compared to FY26. But

20% so is this number only, right? Your...

Sir, see, again, this number 80% and 70% are some on assumption. Definitely, it should be higher than that.

What we are currently guiding is more than 20%.

Sir. My last question is why is it that welded tubes is growing slightly slower?

Second, what is the status of capacities or competition in the seamless tubes side? Two different questions.

See,

on the side of welded, last quarter it was fine, but again in this quarter there has been certain detrimental, and it is majorly because of the decrease in the sale to US. We see going forward there should be an order from Saudi and Middle East on the side of welded and power sector also.

We will be able to ramp up that. From the perspective of competition, see, seamless, there has been a competition, but keeping backward integration and also tubing business, and also we are coming up with this U-tube and value-added tubing business which will cater to instrumentation and heat exchangers.

We are slightly better placed as compared to the new capacity or new competition coming in for seamless. Again, along with requisite approval and again presence in Europe and many part of the world, it seems to be least we should not be that much affected by the competition.

Okay. Sir.

I'll come back if I have more questions.

Yes.

Good afternoon, team, and congrats on a good performance. My first question is that is it fair to say that the order which BHEL is likely to announce in our sort of addressable markets is closer to 3 to 4,000 crores, and of that, just about 700 crore have been ordered so far?

Hello. No, still for the pipe order, in the stainless steel pipe segment order, not only 3,000 crore order is pending with the BHEL.

What are the tender has been issued by the NTPC from NTPC or from Adani Group, the BHEL or other power companies, we are anticipating in the next four to five years, almost more than 8,000 metric tons demand will come from the power sector. Still there a lot of tender is pending to be come in the domestic market.

They will float almost in every six months or every quarter, they will float some new tender. This demand will continuously maintain at least for four to five sector.

Further, this demand will be also limited to very few players who are approved in the either BHEL, NTPC, or Adani Power.

Sir, in rupees crores, how much does this translate into?

Almost you can say it will be more than 6,000 crore near about.

Okay, 6,000. Our market share as of now in the tenders which have already been ordered is how much, sir?

Almost we can say right now the water tender have been floated in last one year, our market share is approximately 15% to near about 15%

to 20%. 15% to 20%.

Okay. Can this market share increase or given the...

Definitely it will increase. Since we are develop the new plant, the condenser power, we have not received not much tender in the condenser power sector from the power sector, which we are anticipating in the coming quarter.

Our contribution definitely will improve.

How much of the pending order book of BHEL is remaining now?

It's around in 50 around 60-65%.

60-65% is unexecuted still?

Yes, unexecuted, which should be executed in coming two quarters to substantial portion of it.

Okay. Secondly, sir, is it possible to highlight few key approvals which we might have received, maybe in Middle East or Russia, any clients which you may want to mention which can be potentially big clients going forward in terms of ordering?

Yes, definitely. In the last quarter, we have received some new approval from overseas nuclear sector, domestic and overseas oil and gas sector, and domestic food processing industry.

Hope for some more new grade in power sector domestically. Okay.

This is from which countries, sir? Matlab,

this I want to keep this secret.

Okay. This is primarily UAE, just that's what you are highlighting?

Not only UAE. Not only UAE, apart from Europe and few of the companies are multinational also who are scattered around the world also.

Okay. All right, sir.

Thank you very much for your replies and all the very best.

Thank you.

Good afternoon, sir. Just one question on what is our net debt levels at the end of the quarter?

Net debt was around 260.

Do we expect that this should be the peak level or maybe because of the capex and working capital, this can increase slightly?

For the coming quarter, we believe it should not increase much, 10 10-20 crore from here.

Okay. Any improvement in our working capital levels over the previous quarters?

No, more or less similar.

Okay. Sir, anything on the margin front?

We were at about 18% EBITDA margin, and that has come down to about 16% level. With the VAP going up, can this go back to about 18% by FY28?

Yes, that as we said ki with this start of this in coming quarters, this condenser, value-added welded, then fitting business, then also on the side of seamless business wherein tubing and U-tubing business would be there. Definitely, the coming two years to go, it should definitely improve from 16.4% to move to around 18%.

Yeah. Thank you, sir.

That's it.

Hello,

Mr.

Bagrodia. You're on.

Yeah. I just wanted to ask you for the end market, how is the end market growing and how are we taking market share from?

Can you please repeat?

How is the end market growing and how are we taking market share from there?

In case of domestic, see, predominantly the supply target mainly to the end market only, we are definitely getting those share. On the front of export, generally it is not to the end industry, rather it is to the distributor or trader of the summary, and we are seeing demand from power, chemical, oil and gas, and food processing.

Okay. What I want to understand how much in your estimate would it be end marketing broad?

I'm just trying to understand, and predominantly how are we taking market... Sir,

Absolutely. We are not...

Okay. Can you hear me now?

Yes. Comparatively better.

Sir, what I'm asking, how is the end market doing and the company would be taking market share from who predominantly? Would it be from global players, Indian players, who would be taking market share?

Because considering the capacities are themselves only so small in stainless steel.

See, the demand is there from power sector wherein the demand was very huge, which was not there in the system. From there, we have been able to get an order.

Apart from that, again, from the domestic players, generally the demand has been shift from the smaller or unstructured player to Venus. These have generally happened in the domestic market.

In your estimate, how much would the industry be growing? See,

it's a very tough to say those number because the sectors are being added. Generally, we see a range of 8% to 10%, but keeping this demand of power and new industries being added, it would be definitely higher than that.

Fine. Sir, maybe I missed this, but in your revenues, how much percent would be coming from volumes and how much would be coming from ASP increase?

Come? Volume numbers, we are not currently giving.

No, don't give any numbers. I'm just saying broadly from your revenue growth percentage wise, how much percent would be from revenue growth and how much would be from ASP increase?

See, from volume growth, it should be at least you can say ki from quarter-on-quarter more than 15%.

Year-on-year?

It will be again same sort of number.

Okay. Then would it be fair we've taken price hike as we move up the chain, price hikes have been taken or in terms of realization has been improving because of segment mix change?

Not much on the change of segment currently. It is again the grade mix which keep on selling, which also altered the prices of the grid.

Fine. Then, sir, predominantly it would just be we've been able to increase revenue of particular items.

Would that be fair?

Revenue of, yeah, definitely, the contribution for seamless had increased, that has increased our revenue. That is also...

Fine. Understood.

Thank you so much.

Hi, sir. This is Sonal Minhas.

I hope I'm audible.

Yes.

Yes. Sir, I had two questions.

First question was regarding the BHEL order and the backlog you were talking about, and you mentioned to the previous person who was asking the question, you have around 15% market share. Just wanted to understand who were the other two-three noteworthy players who basically bagged these orders?

If you could share one or two names just for understanding the industry and competitive nature, that will be helpful.

Giving the name of other player would not be right. Again, generally just to mention you, for this power bidding of BHEL and all, generally five to seven players are approved currently in the country, out of that we are amongst them.

Okay. Isn't this public knowledge?

That who gets what

order? It can be available through BHEL, but not on public.

Okay. Understand that.

Second question, sir, was with regard to the price realization and the volume growth you were just talking about to the previous gentleman. The kind of realization growth that we've seen right now in this particular quarter should essentially materialize into a little higher gross margins, a little higher EBITDA margin.

Directionally, are we heading towards, let's say, 18% kind of EBITDA margins in FY27-28, or that's still a little far off?

No, no, no. Not not absolutely far away.

You are rightly said ki by FY28, definitely 27 would be a year where you definitely will see the for the nine-month for the nine-month basis 16.3% EBITDA margin. It will definitely be improving from here, and by FY28, definitely the target is to reach by around 18%.

Got it, sir. Just squeezing in a third question.

You mentioned about getting approvals in the international market, some in Middle East. Wanted to understand what is the lead time of getting these approvals with a particular, let's say, consultant or a refinery or somebody who's a client there?

What is the lead time to get in the approved list?

Again, it's again depend on each client-client basis and their comfort level. Sometime it can take you three to five year also.

Sometime, keeping your credential and all, you can get in less than two year also. Generally, the lead times are generally high for getting these approval from this multinational companies.

Is it higher in, let's say, oil and gas than compared to power? Just for our understanding.

It's a more time in the nuclear sector. Nuclear sector takes the more time then oil and gas and power.

Or normally especially in the case of lead time, lead time matlab normally vary, depends on the plant. Normally lead time only the approval submission of the approval paper doesn't matlab we can't consider the lead time.

On the plant front as well as your past track execution and the plant capability, all this thing does matter.

Sure, sir. Got it.

Thank you, sir. Thanks for answering my questions.

Thank you.

Hi. Thank you for the opportunity.

Congratulations for very good set of numbers. The first question was with respect to CBAM.

What we are hearing is that there are already benchmarks in place, and there are third-party evaluators also. Have we done that evaluation, and where do we stand on the liabilities that could come?

I understand we don't have to pay this year, but any sense on that front, and could that really impact our margins? See,

at the end of December, they have come up with a revised calculation and formulas. See, for us also, we have to take those numbers because precursor emission is also need to be considered while calculating the CBAM value.

We have also taken up with our suppliers. See, each one in the system is working because the formula, calculation has been revised at the end of December.

Everybody is working. As and when it come up, then we can be able to.

Again, we are also taking guidance from consultant and all, and the entire team is working on that.

What will be our current split as in percentage basis if you can give on the export, how much goes to Europe and how much US and how much Middle East? See,

on a nine-month basis, if you see, Europe was around 60% to 65%, and US was around 20% to 25%, Middle East, UAE, Saudi around 10% to 12%, and balance to other countries.

Right. Any kind of benefits that we are getting from the EU trade deal, because from 1st of July there was this quota reduction, is there anything in the EU trade deal for us?

No, from pipe and tube as such we are not seeing that. Again, that quota reduction is to every countries who are exporting to EU, it's not standalone to India only.

Applicable to the all the countries.

Okay. On a YoY basis this quarter, was there a price improvement or a price reduction?

Sort of improvement only.

Okay. Sure.

Thank you, and all the best.

Hi, team. Congratulations on great set of numbers.

Just couple of questions from my end. Given the US tariff, they're about finalized, how do we see the opportunities in the US market shaping up given in last couple of years we've done so much work, especially Europe, Middle East?

Where do you see opportunities for the US market? That's first.

See,

absolutely, the opportunity should be there because, see, as you rightly said, we have worked on US part and it was the time where to get those benefit. This hovering of tariff has come.

With this clear-cut ease of tariff currently and see, as I said you earlier also, section 232 similar for all the country exporting to USA. As there was no clarity on the side of tariffs, that's why the order was not coming in quantum.

Definitely, we believe it should be a better opportunity going forward from USA.

Understood. Could touch upon the working capital requirement, how different it is from domestic versus export market, and more in terms of margins given that we've recently seen rupee depreciation?

See, working capital is more or less similar. It's not that much changing between domestic and export.

Again, margin perspective, generally when you are establishing this Europe and USA market, we generally drive a higher margin. As I said ki coming forward quarters, I think we should be able to a better profitability in export market as compared to domestic.

Again, after you are set up in those market, you generally get those benefit.

Understood. Lastly, on your order book front, we've seen a great improvement on a quarter-on-quarter basis from 3.5 to 4.7-odd billion.

The incremental order book would be coming in from which areas? Is it mostly domestic or export?

It's mix. It's from power sector and export.

Understood. Thanks a lot, team, and all the very best.

Thank you for the follow-up. Sir, one clarification, I just wanted.

See, we have got new qualifications from the export market also. Our exports are also anticipated to grow.

In India also, I think domestic power and all is doing well, new approvals received. Just want to understand, next year probably you said we'll grow 20% plus kind of number.

Beyond that, because next year you'll have seamless capacity also coming in. Beyond that, let's say, '28, '29 going towards there, shouldn't we face some capacity constraints if at all the demand remains stronger?

In context of that, do you see the capacities which are coming up by the competition, can they gain that market if we don't have capacities? How does that stack up if you can just throw some color?

Hello.

Definitely. After this new capacity expansion, we'll able to do the 20% growth for the FY27 as well as FY28.

Or we always plan in advance

for the

we see the market presence, how is the market demand is going on. We are always open to do the capacity expansion.

We are also focusing on our cash flow. We don't want to take the not much debt for the capacity expansion, or we want to leverage our position.

Whenever it will be required, we are open to do capacity expansion. You can see in the almost in last four years, we have did the capacity expansion almost more than 4x.

Whenever need will arise, definitely we are open for that. We are more focus on the growth as well as the balance sheet focus and the debt focus.

Also focus on the ROC and ROE. To again mention here, see the demand has come from this power sector, which was not there in the system, as earlier said also.

That is also driving. See, that export geographies we are trying to capture more.

We are expanding our horizon to many part of the world. That is also coming to play.

We are moving our supply towards food processing and other. Again, see, we are also adding a product like fitting, generally many of the competitors doesn't have.

We are also adding many of the value-added product, which generally not many players are there in those horizon.

I think

giving all the mix bag, we believe as a company ki we will able to take it forward also.

Okay. To summarize on this point, probably we are saying that with the capacity coming in and the utilizations moving up, for '27 and '28 probably we should grow at around 20% odd with margins improving plus fittings revenue coming in.

Post that, if we need capacity, we will plan by '27 or '28. That's the right understanding, right?

Haan, but new capacity, see, the company keep on planning that. If something comes up earlier, also we will definitely update you.

Correct. Got it.

Sir, just one thing on the export side. Obviously in the last one year or two years, we've done phenomenal on the export front.

Going ahead, what kind of growth rate can we expect on a normalized basis considering you're getting approvals and all those things? Is export a higher margin business versus domestic?

See, it's not

if you see the current year export, it's not normalized, even to go to ramp up it. Further, see, again, the percentage of the total revenue should be more than 30% the intent is as currently.

We are trying that. Again, it's again depend ki there are good margin order we get in export, it can go higher than that also, but the intent is currently at least above 30%.

See, when you are established in this market, definitely you earn a better margin as compared to domestic.

Okay. Okay.

Okay. Sir, this year this quarter, how much OCF we would have generated if you can give that number?

Balance sheet figure

currently are not having.

Sir. Thank you so much.

Thanks.

Thank you for the opportunity. Am I audible?

Yes.

Thank you. Sir, I recently started tracking the company, kindly bear with me.

Firstly, I wanted to know what is our current capacity utilization in seamless and welded segment?

In case of seamless, it's more than 90%, and on the side of welded, it is more than 60%.

Okay. Secondly, I just missed your comments on how much capex are we currently doing on the fittings and seamless side, and what kind of asset turn are we targeting there?

Just wanted to ask when this capacity is going to be live?

See, the capacity of fitting and seamless pipe, a portion of seamless has come, but major capacity we are targeting by end of this financial year. Primarily all the capacity will be live in the coming financial year, that is 2026-27.

You mentioned by end of next financial year, right?

End of this March '26.

Acha, by March '26. How much capex are we incurring for that, and what kind of asset turn are we expecting?

See, on the side of seamless, it is on the side of fittings, on the side of condenser. It should be at least more than 3x 3-time asset turn should be there.

3-time. 3 times,

sir.

Okay. Next, you mentioned that our current order book size around 470 crores, and incrementally we expect orders from the power sector and export demand.

I just wanted to ask what is the execution timeline for this current order book size, and what is the application of our products in the power sector? See,

the order size should be typically be between you can say less than six-seven months, the execution time for this order book. See, the application in power is varied.

These are used for boiler also, these are also used for condenser of power plant. It's a mix bag of use in power industry.

Okay. Any broad comments on demand situation and just I wanted to get a general sense on what kind of issues we faced in the last nine months or the past quarter that we are expecting to be a bit relieved upon while going forward?

See, few of the geopolitical issues had been there. With the recent ease of tariff on India by US, I think it's a good sign.

Again, the India-EU deal was not directly impacting us, but again, it's a sentimental improvement is also there. We believe and also with the demand from power and other sector in the Indian market also.

Keeping all this perspective, going forward, it seems to be quite positive from now onward.

Got it. Just final question, I missed your comments on the country-wise geography mix that you mentioned in the exports.

Could you please repeat?

We said see, it was around 60% to 65% in Europe and 20% to 25% on the side of US and balance to other country including Saudi and UAE.

How much in Europe?

60% to 65%.

60% to 65%. Okay.

That's it from my side.

Actually my questions have been answered. Thank you.

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

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

Thanks, everyone.