Good morning. On behalf of ICICI Securities, I welcome you all to the Q4 FY26 earnings call of INOX India Limited.

Today we have with us from the management Mr. Deepak Acharya, CEO, and Mr.

Pavan Logar, CFO. We'll begin with the opening remarks from the management, which will be followed by Q&A.

Thank you and over to you, sir.

Thank you, Mohit. Good morning, everyone.

I welcome all our stakeholders, investors, analysts, and friends to the Q4 and FY26 earning call of INOX India Limited. I trust you had the opportunity to review our results, earning release, and investor presentation, which are available on the stock exchange and on our website.

Joining me today is our CFO Pavan Logar, who will later take you through the detailed financial performance, following which we will open the floor for the Q&A session. Let me begin with overview of the global economic scenario.

Towards the close of FY2026 and in the beginning of FY2027, the global economic environment has been brimming with ambiguities. Geopolitical issues, evolving trade dynamics, and energy transitions continue to reshape the calculus for capital allocation, infrastructure investment, and industrial policies across economies.

Tariff pressure and supply chain reconsiderations have added a layer of uncertainty that businesses in our space must navigate and caution and precision. Despite trade tensions and policy uncertainty, global growth was 2.8% in 2025, driven by front-loaded trade, supply chain adaptations, and AI-related investments.

While the growth in 2026 is estimated to be 2.7%, the ongoing West Asian conflict is creating headwinds through elevated energy prices, shipping disruptions, and weakened investor confidence. Talking about the Indian economic scenario, in the current challenging global economic environment, India stands strong.

Growth increased to 7.1% in FY2026, making it the fastest-growing major economies supported by robust domestic demand, relatively lower inflation, income tax and GST rate reductions, and accommodative monetary policy. Manufacturing and service drove supply side performance, although net exports weighed on GDP as imports increased.

Private consumption rose to 7.0% year-on-year, bolstered by rising household incomes. Investments strengthened across both private and public capital expenditure.

However, a prolonged West Asian conflict poses a significant risk to India. As a major energy importer, India remains exposed to sustained oil price increase, fiscal pressure from fuel subsidies, and rupee depreciation.

With nearly 38% of remittance of inflows originating from Gulf economies, any labor market disruption, there would be further strain in the forex reserves. India's macroeconomic buffers provide some insulation, but energy diversification, fiscal prudence, renewable energy acceleration, and trade liberalization through FTAs remain critical to sustain resilience in an increasingly fragmented global environment.

The fundamental opportunity this creates for capable, well-positioned companies remains firmly intact. Despite the global hiccups, at INOX India, we find ourselves at the juncture of reinvigorated growth, driven by India's industrial growth ambitions and the global transition towards cleaner, more efficient energy system.

Rising adaptation of LNG as a transition fuel, the gradual yet accelerating development of green hydrogen infrastructure, and increasing investment in defense and aerospace cryogenic systems are not short-term trends, but a long-term structural opportunities. We believe that INOX India is well positioned to capitalize on these opportunities through its engineering expertise, diversified capabilities, and expanding global presence and footprint.

The global industrial growth and LNG landscape continue to evolve rapidly. Shipping companies are increasingly transitioning towards LNG-powered vessels, aerospace infrastructure requirements are scaling up globally, and emerging applications such as data centers cooling are introducing new business avenues.

With our strong capabilities across cryogenic engineering, LNG infrastructure, industrial gas solutions, and advanced scientific application, INOX India remains well positioned to participate meaningfully in these evolving high-growth sectors. Business performance overview: Q4 and the full year FY2026 reflected a strong operational momentum for INOX India with healthy revenue of ₹1,632 crore, growth across key business segments.

Our EBITDA margins, 23.8% for FY26, remained in line with or better than the guidance provided earlier, demonstrating disciplined execution despite headwind arising from the US tariffs, global logistic disruption, and geopolitical uncertainties. Our diversified business model, expanding geographic presence, and focus on high-value, tailor-made, technologically complex products continue to strengthen our competitive position and enhancing long-term growth visibility.

I will now take you through the segmental highlights. Let me begin with our largest revenue contributor to Industrial Gas Solutions.

The segment delivered another strong quarter and a record year marked by high-value order wins, important volume milestones, and growing global recognition. During Q4, we received a significant aerospace order from a leading US-based private space company with a total order value of approximately ₹200 crore.

We are expecting more high-value orders in Q1 FY27. This order is a direct outcome of our proven execution capabilities and reinforces the growing confidence that global aerospace players have in INOX India's engineering expertise.

Transport tanks also achieved a significant milestone in FY2026, with annual sales exceeding 300 transport tanks and semitrailers for the first time in the company's history, surpassing the earlier benchmarks. We continue to witness strong order inflows across the transport tanks, IMO tanks, and standard industrial gas products, reinforcing our confidence in sustaining this growth momentum in the years ahead.

On the disposable cylinder front, I am pleased to share that despite the challenging US tariff environment, we crossed the milestone of dispatching over 2 million units during FY2026. This is a remarkable achievement for our team and reflects the sustained demand for our products across international markets.

In liquid cylinders and CryoSeal brand continue to gain strong market acceptance, with a record order intake during this year. Demand remained robust across both domestic and export market.

I'll now share the details of business in the LNG Solutions segment. This segment had a breakthrough quarter and a defining year.

One of the most significant highlights was the order received from the Cochin Shipyard, one of the India's premier shipbuilding companies, for LNG fuel tanks to be installed in the LNG-powered ships being built for one of the world's largest shipping companies. This is a landmark order for INOX India and marks our entry into the marine LNG ecosystem, a market currently undergoing a major structural transition towards a cleaner fuels.

The order involves six LNG tanks of 800 cubic meter with stringent execution timeline. In addition, we received L-CNG stations order from Gujarat Gas and continued dispatches of LNG fuel tanks to the OEM.

While the adoption in the LNG truck segment has witnessed some near-term challenges, we believe that the long-term opportunities remain robust, supported by favorable economic condition and regulatory tailwinds. Our LNG semitrailer business in India continue to maintain market leadership with more than 250 LNG semitrailers currently operating on Indian roads and commanding a dominant market share.

We have also dispatched the first batch of 5 x 1,500 cubic meter tanks for the Bahamas mini-LNG terminal, reaffirming our capability to execute large, complex LNG storage infrastructure project in timely manner with highest quality. I'll now take you through the updates from the Cryo Scientific Division.

The Cryo Scientific Division continued to strengthen its position as a trusted partner for highly complex global scientific infrastructure projects. During the quarter, we received a repeat order from the ITER France for modification works related to cryostat panels, further validating our deep execution expertise in the world's most ambitious fusion energy projects.

We also completed the production of highly complex LOX tanks for submarine-related application, highlighting our capabilities in mission-critical cryogenic engineering and advanced defense applications. I will now take you to the Beverage Keg business.

The Beverage Keg segment delivered exceptional year and a strong close FY2026. During the FY2025-26, we recorded 31% increase in keg dispatch over the previous year, reflecting continued market expansion and strong demand momentum.

We have now secured approvals and active orders from three of the world's leading global breweries, namely Heineken, AB InBev, and Molson Coors, collectively representing more than 40% of the global beer market volumes. This position us strongly for the next phase of growth in this business.

In FY25-26, we have supplied kegs to Heineken breweries in Bulgaria, Croatia, and Réunion Island. We also secured first order from Molson Coors USA and also repeat orders for the non-standard kegs from Messrs.

Orben, Germany. Our distribution partnership in Germany, Poland, and United Kingdom are now operational, providing us with direct commercial access to the European market.

We are also increasingly focusing on a specialized non-standard keg variants designed for niche applications. These products yield higher margins and help differentiate us from commodity-oriented players in this industry.

True to our vision of remaining historically futuristic, we keep evolving newer opportunities in advanced business areas. One of such opportunity is data center cooling.

I'm happy to share that we have signed an MoU with European company to jointly develop liquid nitrogen-based cooling solution for the data centers. This is currently an early stage R&D-led initiative, and we expect meaningful development over the next 6 to 12 months.

With the growing energy efficiency requirements in modern data centers, we believe that cryogenic cooling technology could emerge as a compelling and scalable opportunity for INOX India in the years ahead. At INOX, we strongly believe in building our own capabilities consistently.

In line with this, I'm happy to share that we are developing a new facility at Kandla. We have acquired approximately 7 acres of land near the Kandla port.

On a 30-year lease basis, the facility is expected to be commissioned within approximately 9 to 10 months. Its strategic proximity to the port, around 2.5 km away, offers a significant logistic advantage.

The Kandla facility will substantially enhance our capability to manufacture ultra-large tanks with diameter 8 to 9 meters, length up to 60 meters, and weight up to 500 tons. This expansion opens opportunity for LNG mega storage tanks, large scale aerospace tanks, and several other high-value, large-format products that are currently difficult to execute at our existing facility.

This year saw a strengthening our revenue mix from the geographical viewpoint as well. Revenue contribution from North and Central America increased from 14% in the previous year to approximately 26% in the FY2026, driven by LNG terminal-related orders, aerospace orders, disposable cylinder exports, and LNG-related shipments, despite tariff-related headwinds.

Our revenue contribution from European market continue to improve because of the opportunities in LNG and cryo scientific area. In the Middle East, Southeast, and Far East, our revenue has improved from 8% in FY25 to 10% in FY26, in spite of global disturbances in this region.

The key takeaway is that demand fundamental remain robust across the geographies. The primary constraint continue to be logistics and supply chain-related challenges, rather than the slowdown in the market demand.

Outlook: As we look ahead FY27, our strong order backlog, expanding global customer base, growing share of high-value engineering products, and capacity augmentation at Kandla collectively places in a comfortable position to sustain and accelerate our growth trajectory. We remain focused on operation excellence, innovation-led growth, and delivering long-term value for all our stakeholders.

Thank you for your continued trust and support. I will now hand over the call to Mr.

Pavan Logar, our CFO, to take you through the financial highlights. Thank you very much.

Thank you, Deepak, and good morning, everyone. I will now take you through the financial highlights for Q4 and the full year ended 31st March 2026.

For Q4 FY26, total income stood to ₹475 crore, representing growth of approximately 24.2% on year-to-year basis, driven by strong execution across key segments, including the LNG terminal project-related sales, large aerospace order, and record transport tank dispatches. Q4 FY FY26 is very special to us, as we have achieved higher ever quarterly revenue, export revenue, and order booking.

Adjusted EBITDA stood at ₹108 crore, up by 13.4% Y-o-Y basis, reflecting improved operating efficiency and better product mix. Adjusted profit after tax was ₹72 crore, growing by 9% Y-o-Y, supported by margin expansion and robust volume growth.

For the full year FY26, total income stood at ₹1,632 crore with growth of approximately 21.2% over FY25, reflecting healthy performance across industrial gas, LNG, cryo scientific, and keg division. Adjusted EBITDA for the full year stood at ₹380 crore with adjusted EBITDA margin of 23.8%.

This year recorded highest sales for LNG segment and thereby total sales of the company. Adjusted PAT for the full year stood at ₹261 crore, registering a growth of 19.3% over financial year 25.

As of 31st March 2026, our order book stood at ₹1,514 crore, providing strong revenue visibility for the coming year coming quarters, of the approximately 63% is from exports and 37% from the domestic market, reaffirming our strong global presence. Our total fund availability as on 31st March '26 stood at ₹257 crore, providing ample headroom to support the Kandla facility investment, ongoing project executions, and other strategic initiatives.

That concludes my remarks on the financial performance for Q4 and the full year 2026. I would now request the moderator to open the floor for question and answers.

Thank you.

Good morning, sir. Thanks for the opportunity.

My first question on the order inflow front. We had one big order worth about ₹200 crore during the quarter, kind of boosted the order inflow.

What is the pipeline for this big order in the coming quarters and FY27? What will be our guidance for order inflow?

Yeah. We have backlog of around ₹1,514 crore, out of which I told you about the order from the aerospace company is around ₹200 crore.

Going forward in the Q1 or maybe Q2, we are expecting few more orders of similar nature and similar value very soon now, and that will improve our order booking for this FY27.

Around ₹450 to ₹500 crore could be a right run rate for a quarter, right, in terms of order inflows?

Your voice is cracking. I'm not getting the clear voice.

Is it better now?

Slightly better, yeah.

I was saying that around ₹450 to ₹500 crore of order inflow estimate for a quarter, that would be a right number, right?

Yeah.

Given the big orders that we are expecting in Q1 and Q2.

Yes, yes.

Okay. My second question is on execution front on the revenue front.

How is Q1 going currently? You mentioned that there are logistic challenges.

What is the revenue one can expect in Q1 and going forward if the things normalize for FY27?

Our revenue will be in line with our target of the next year, that is almost like what on ₹1,600 or ₹1,632, we have targeted around 18% to 20% growth. In similar fashion, our quarter revenue will be increasing in that fashion.

Our order booking will be also growing the similar speed of around ₹450 to ₹500 crore every quarter.

Understood. Does this 18% to 20% growth bake in that the things normalize in the coming quarters in terms of war and all?

War slightly impact is there, but we are not depending only on the one region or one area. We have multiple products, multiple geographies we target.

Slight plus minus happens into this Middle East area, but that will be compensated by other areas. We don't find any much of a impact of this.

Understood, sir. My next question is on beer keg segment.

What was the revenue contribution from this segment, and what was the dispatch for FY26? What is the order book looking like?

Just a minute. On beer keg for FY26, our order book was 55,000 kegs and sales around 61,000 units.

Value-wise, slightly it is same or like last year, basically because there are different models into this. We had sold more of a 20-liter kegs than the 30 50-liter.

There is a component which is called as a spear, which is almost like €7 to €8 or €10 component. People have thought that they will fix it at their place.

We dispatched the kegs without the spear. We have increased the volume by 31%.

Our sales is almost similar like last year.

Understood. My final question is, what is the outlook on the LNG tanks from order inflow perspective in FY27?

There are a lot of things happening with regards to energy security. Overall, what's your take on it?

See, as you see, there are various challenges LNG coming from Qatar and all that places. Definitely it has improved our situation, basically because as the delivery of LNG coming from Australia and USA, it takes little more time.

The storage capacity at all places where people have installed the LNG facility, they will improve upon. We will have more of a storage orders and transportation equipment requirement going forward till this Qatar solution is resolved, which may take few years to complete that facility, which is damaged during the war.

Understood, sir. Thank you, thanks a lot.

Very helpful, thank you. Thank you.

Thank you.

Yes, sir. I have two questions.

One related to the LNG. We have this whole string of equipments which we show in the slides, right, from storage to transportation to smaller LNG tanks which are to be put up on the vehicles.

Just storage and transportation, what is the size of the market, and at ₹459 crore that we have done last year, what will be the market share? Do we do these small transportation tanks as well?

We do this transportation tanks, but normally the LNG density is half that of the nitrogen. The smallest size what people prefer is around 46 KL tank.

However, we have smaller capacity also LNG trailers where people require less of LNG for the transportation. That is not a standard model or a hot selling product.

So, 46 KL trailer is the most optimized trailer, and more than 250 trailers are on the road now. On the LNG use and this from the storage point of view, the LNG storage vessels are used for satellite application, even for LNG fueling station and L-CNG stations.

The demand of all these three is going to increase. Automatically the storage requirement will increase.

Presently, because of abundance of LNG, people were just keeping one tank of 56 KL or 113 KL. Now going forward, people are asking for at least two tanks, one standby tank for their consumption, so that stockout is not there, because this stations are directly connected with people.

If there is a large queue of tanks for filling purpose and suddenly your tank is empty and you don't get a liquid, that is very difficult situation for them. We hopefully think that more and more storage requirement.

Definitely if storage requirement is there, the liquid has to be transferred from the terminal to the customer station by the transport equipment, and the trailer requirement will go on in the coming year now.

This ₹459 crore LNG, this is pure India business for you or there is export in this?

No, this is export as well. You can consider almost 60% is export and 40% is local, roughly.

Okay. Can you give some color on the size of the India market at least, or the market share?

For LNG?

For LNG, sir.

We have different products and different market shares for different products, but on an average, our market share for the LNG products in India is almost 60% to 65%.

Okay. Any possibility to know the global market share?

For LNG?

LNG, sir.

This is in single digit only as on today, maybe 6 6% to 8%.

Okay. Will this division grow much faster than the company-level growth?

This division has a good potential to grow because of several things, especially the prices of LNG, even though the diesel prices and petrol prices, we are expecting a rise. The LNG price will also rise, but the ratios will remaining the same.

LNG being a clean fuel and almost advantage of 15% to 20%, this LNG division is going to grow faster than our standard products.

Okay. My second question is on the beverage keg side.

When we sell 61,000 kegs, this is India number or this is the include export number also?

This is including export and India.

Okay. Can you tell the total global kegs market and growth rate there?

The total number of kegs available as on today is 120 million kegs are available in the global market. There is a 4% to 5% replacement demand.

Average demand in a year is around 4 to 5 million kegs. There are two, three manufacturers already in Europe and one in China, and we are the second in Asia.

Okay. Capacity for us with this will be?

Presently we have installed a capacity of around 300,000 kegs a year, and presently we are just 1/3 of the capacity.

Okay. When do you see full utilization?

Whatever we have supplied the kegs to the industry, to Heineken, AB InBev, now to Molson Coors, or many other small breweries, I am happy that everywhere the kegs what we supplied are approved by the customers, and they will definitely take some trials initially and will go for full swing in coming year now.

Okay. What aspiration for a market share, what will be your aspiration in that 4 to 5 million kegs?

We are put a facility of 1 million kegs.

You just said 300,000 kegs, right, capacity for INOX is?

That is presently, but our building point of view, everything point of view, we can go up to 1 million kegs without any problem, adding some machinery definitely.

Okay. Thank you.

I'll come back if I have more questions, sir. Thank you.

Hi, good morning. I hope I'm audible.

Yeah. Great.

We said that we have made a

Please continue.

Okay.

Hi. Good morning, sir, and thanks for the opportunity.

My question is around the working capital. The working capital has increased meaningfully in this fiscal.

It used to be ₹731 crore by FY25. It has gone up to ₹990 crore, and primarily one of the driver is contract assets.

Even if I remove the contract assets, I think there's a meaningful accretion. How should we think about the working capital in F27 and F28?

Mohit, actually, our project orders are now increasing a lot. We have the order book of more than ₹1,000 crore in projects.

In projects, what we are doing, we are taking the orders with some payment terms, which is on the basis of various terms, like 30%, 50%, 60%. Whereas on POCM, as per the ICAI guidelines, we have to book the revenue as per the percentage completion method, of how much project is completed, and on that basis, we book the sales.

Whereas the collection is always happens as per the payment terms of the order. That is why little bit contract asset is increasing.

It will remain like this only because the project orders are increasing now. Still, my advances, if you see advance from customers, has increased a lot, and at present, we have advances of around ₹500 crore with us.

Expecting to stay at similar level, right, as we go forward? Is that fair expectation?

Also, the projects are there, and big projects are coming now. In big project, definitely I have to book the contracts assets accordingly, and due to that, little bit may be there.

Overall, my inventory is totally in control. Everything is in control.

Understood. My second question, sir, can you just help us with the market for industrial refrigerant cylinder, which you're exporting to US?

Was that market stable in FY26, or was any growth compared to FY25? How do we see this number in FY27, FY28?

Is there a chance of some growth, or it's most likely flat?

This product is used for storage of refrigerant gases. All these major refrigerant gas manufacturing companies, they have a quota system.

They cannot produce more and they cannot sell more also. The growth is maybe very marginally a little improve.

Perhaps our market share can improve if we target few more customers from US market and compete with the other competitors. That way, we have increased our sales as compared to FY25 in FY26.

We are targeting customers which are not buying or which are buying less quantities from us for the FY27. Hopefully, we will gain over there.

That is what is the present situation for disposable cylinders. We have sold more than 1.5 million cylinders to US in last year.

Understood. Sir, my last question, sir, can you just help us with the outlook on the Cryo Scientific Division ordering for F27?

Where is that ISRO launch pad tender is currently?

Yeah. Cryo Scientific Division, we have ample of opportunities, not only in India, but all over the globe.

There are very few players who operate into this region. INOX India can be among one you can count on fingers perhaps, maybe two, three such suppliers are there, which we are one of them.

Our advantage is our strong engineering, execution, and our competitive offers what we are giving. We have a strong belief that Cryo Scientific Division will grow substantially in coming years.

On this third launch pad, yes, the tender will be coming by end of this quarter, and we have to bid maybe the quarter two, and maybe by end of this year, some outcome will come for the order.

Understood, sir. Thank you, sir.

Best of luck. Thank you.

Thank you.

Sir, first of all, congratulation on a good set of numbers. My first question is with respect to the margins.

Our profit margins have come in a bit. Can you just give some understanding, why is that?

See, Mohit, if I told you whenever you visited our factory also, we have always a product of standard and non-standard tanks. Quarter to quarter, if you see, there'll be slight variation in the margins because of the product mix variations.

However, if you see year-on-year basis or we are always maintained our margins of 21% to 24% what we have given the guidelines. This year, we for a year total year's result is 21.6%.

Last year it was also the same thing. We are in the same bracket.

I don't think there is a much variation. Our products are very difficult to you can't control like that, depending on the market requirement, we have to push the products.

Product

plays a vital importance in the margins.

Understood, sir. Sir, the Cochin Shipyard order, can you share the order value and what's the completion timeline for this order?

We got six tanks order for the six ships of around 8 800 cubic meter tanks. The order value is around ₹85 crore, and we have to complete between 2 to 3 years.

As the ship gets constructed, we have to supply. You can say in a year, we may have to supply around two numbers tanks to shipyard.

Understood, sir. Sir, for the Bahamas, how much have we already supplied for the Bahamas order, and how much is pending?

We had initial order of around ₹230, ₹35 crore, then we got some additional order because of some changes. The total order value was around ₹240 crore.

We have supplied around ₹160 crore in this year. Balance will be supplied in FY27.

Understood, sir. That's all from my end, sir.

Thank you so much.

Thank you, Mohit.

Thank you for the opportunity, sir. On the data center cooling tie-ups what you mentioned with one of the OEM, can you just throw some more light on what sort of work or role you're trying to play in this tie-up?

Is this more like a joint system integrator, or this is just for supplying some of the components the capabilities which you already have, say the piping and all? Yeah.

This is, I can say, it's basically R&D project what we are doing initially. This company is one of the pioneer company in the IT infrastructure, manufacturing the racks, the cooling system, and other things.

They are already into the existing business, and major business is they are doing in this sector. When we are discussing with them, they said the major power consumption is the main thing for cooling purpose.

We suggested them because the chips and the microprocessor has to be cooled at a particular temperature. There, if you use liquid nitrogen for cooling, that can improve.

We have recently attended a exhibition in Europe as well, and we got a lot of feedback how it has to be done. We have started the project of understanding how we can develop a model or product for them.

This is under trial initial purpose, and it may take 6 to 1 year time to develop a product for this application.

You're trying to be a solution provider in this, not just a component supplier to this OEM.

No. Entire solution.

They will be manufacturing the racks and other systems, and we'll be providing them the cooling solution. Together, we will offer it to the customers.

Got it. That's it from my side, and all the best.

Hello.

Sir, am I audible?

Yeah.

Sir, congratulations on good set of numbers. My first question is on ITER side.

Sir, ITER has nine vacuum vessels thermal shield, and INOX has now received repair orders for what appears to be all of them by Q1 FY26. Can I get to know if there any new scope of work being discussed with ITER beyond this thermal shield repair?

ITER work will continue for next 7 to 8 years more. Presently, we have that repair work which is going on, which will be continued for 1.5 year at our shop.

Then we have the work for installation that work at site. Besides that, there are many such equipments which they require on a short period notice, and they are directly contacting us because of our good quality and timely delivery of products.

There are many such pipeline work or maybe some improvement work which is required, and they are contacting us and we are doing for them.

Can you give us a ballpark figure of how much quantum of orders are we expecting from them?

On an average, going forward, at least ₹50 to ₹60 crore we should get on a regular basis for next at least 5 years.

Okay. Thank you, sir.

Another question is you mentioned in your PPT about Highview Power liquid air energy storage system. Basically, there the first Carrington order which we supplied to them was worth £9.35 million.

Now I want to know that as Highview Power management has indicated that Highview has plans for four more projects by 2030. Is there any order visibility in that area in coming 2 to 3 years?

What would be the per project tank value if we get the first order from them?

We have bidded for all the projects what they require, and perhaps the order value will be quite big, but they're just waiting for this first project getting commissioned and seeing the fruits from this first project. Favorably, maybe another 6 to 8 months, at least one project will come up now.

Okay. What will be the quantum of that order?

Very difficult to say at this moment, because what they order at this moment to us, but definitely they are asking for some additional work besides what we have supplied for the Manchester project.

Okay. Sir, about the LNG fuel tanks, we described our product.

China has a lot of penetration of LNG tanks moving in their country. Don't you see import as a risk if basically India as a market for LNG tanks will grow, won't Chinese players will dump their products as they have specialized multi-capacity in that area?

Are imports a risk for us?

No. See, initially some tanks had come to India.

I do agree with you. Going forward, there is a regulation in India called as a PESO, which governs the incoming flow of such tanks.

There is no shop in China which is approved by PESO as on today. No further more tanks can come to India, because it has to go with PESO approvals.

Number one. Number two, this tanks are to be utilized on the trucks or the buses which are moving vehicles, and it requires regular maintenance, periodic inspection, and support from the vendor as well.

China finds really manage such show, whereas we have our service centers across north, south, east, west, and people are very happy with the service provided by INOX India. Going forward, I'm quite confident that we can beat the Chinese on competition from these two aspects.

One is every truck has a different dimensions, we have to design the fuel tank according to their needs. In China, they will say, "This is my standard.

If you want to buy, take it. Otherwise, forget it."

In our case, we design them to their requirement. We service them.

We support them, because this is a new technology all

together.

We have put our people at Tata and Ashok Leyland on their conveyor lines to see that they don't face any problem. Such type of services cannot be offered by Chinese people.

Thank you, sir.

Thank you.

Yes, thank you for the opportunity. I've got two questions, please.

First is what aspects of cryogenic systems integration and engineering have the steepest learning curves? Realistically, how many years would a serious competitor need to kind of replicate INOX India's capabilities at comparable reliability and scale?

Very million dollar question you are asking me. It depends on the type of people you are investing into it.

Okay? If the skills are already available with a person, then he can do it.

It takes long time for the approval of the plant, the equipment, prototypes have to be produced. There is not only one product.

N number of products. I can say there are more 30, 40 type of approvals and certifications we are having.

This is on a regular basis it has to be renewed and reviewed. It is a quite cumbersome task.

In my opinion, if anybody start with highly skilled people and put a plant which is modern-day plant, it will take at least 10 to 15 years to replicate this facility.

Understood. Sir, INOX has demonstrated capability across many domains: LNG, hydrogen, aerospace, scientific cryogenic systems, at the prototype and project level.

What capabilities or processes give you confidence that these can reliably scale into kind of a repeatable industrial businesses? Because I've seen many companies are very good at the prototype or initial stage, but at the commercial scale manufacturing is a completely different ball game.

In your experience, can you give us some sort of a data point that we got 100 prototypes across our last 10 years history and we converted X out of those into industrial scale? That kind of a number is what I'm looking at, because it's not easy to convert a pilot or an experiment scale project into commercial scale.

Our methodology of working for prototypes is different. What we do is we listen to the customers, we listen to our marketing guys, what products are required in the market, and accordingly we develop.

It is not we just develop the product and then find the application. No.

We just have the application and we develop the product. For example, I'll tell you one simple example of CryoSeal, which is a very good product for artificial insemination program.

There was a need 25 years before that India needs to have a higher yield for milk from a Indian cow. That was a project, and there are very few people in this country who can supply such a solution.

We develop that solution. Today, 95% of insemination program is through a dewar, which are supplied by us for this project.

Similarly, the healthcare sector. We have supplied so many products during corona time, the cryogenic tanks, liquid cylinders, so many things.

In our case, I can say around 95% of our products what we develop is commercialized, and if there is a commercialization possible and if there is a need, then only we develop the product.

Understood. That's helpful.

Thank you so much. Thank you.

Thank you for the opportunity. Just a couple of questions.

Firstly, could you provide the revenue share for kegs and disposable cylinders for FY25 and '26? Would it be fair to assume if their share in the revenue mix increases, our console margin could decline?

Secondly, sir, any update on the ISRO third launch pad? That's it from my side.

For the kegs business, FY25 was around ₹27.15 crore, whereas FY26 was around ₹26.13 crore. I told you, though the volume has increased from 46,000 to 61,000, the container was like 20 We sold 30 and 50 more in FY25, whereas we sold more of 20-liter kegs in FY26.

On the disposable cylinders, I don't have the correct number, but something around ₹135 crore or something on FY25. This year, we have just reached around ₹150 crore.

More than 2 million cylinders were sold in this one. On the ISRO, yes, the RFQ is on the way, and hopefully in another 1 month's time, we should have the RFQ, and ordering will be placed in the next year beginning.

This is what is the present situation.

Got it, sir. Just one last question.

Sir, what percentage of the current order book is in the coming 1 year? Could you quantify that?

Pardon?

What percentage of the current order book would be executable in the coming 1 year? Is it possible to quantify that?

Pending order of around ₹1,514 crore. Out of that, at least ₹1,200 crore will be executed this year.

Fine, sir. Thank you, sir.

That's really helpful. All the best.

Hi, sir. Am I audible?

Yeah. Sir,

thank you for taking my question. My question was regarding the Highview Power order.

There was an article which suggested that Highview they raised £300 million for this project from UK Investment Bank and UK's utility.

Correct.

How much would our contribution be in this project, our equipment contribution?

We are supplying only the cryogenic tanks for storage of liquid air. That way our contribution for the entire project is not much in the value-wise.

Definitely from the technology point of view, this has got a importance. Going forward, now we are discussing with them for three, four projects where the capex will be much higher from the cryogenic point of view, because they are relied and they understood our capabilities now.

Going forward, we'll definitely have more scope into whole project, because this is mainly a cryogenic project. Besides that, there are many equipments which they are manufacturing somewhere else, but we have also offered them the non-cryogenic equipment for their requirement.

Let us see how does it come up in future.

Yes, sir. The second phase which Highview is planning, which is in Scotland, which is almost eight times bigger.

Can we assume that our order would also be eight times bigger from Highview for the next project?

The tank sizes are very, very big, and we have given them a solution, which we can some site work as well. They're happy with our proposal.

Let us see, you're correct. The order value will be around 8 to 10 times of the present order book what we have.

Sir. Let's say the capital cost for such a liquid air energy storage plant would be ₹100.

How much rupees would be cryogenic storage tanks?

It will be around 20% to 25%.

Oh, okay, sir. Now that we've dispatched the first lot for our mini-LNG terminals in the Bahamas, could you provide more color on the pipeline for such more mini-LNG projects?

Does this success of the Bahamas project open doors for similar island nation energy projects, or do you have any visibility there?

We already received two small orders from the Bahamas, small islands. The two orders which we are received is under construction now.

We are targeting few more in various countries now, because of our success of this small-scale LNG terminals projects in Scotland, then Caribbean, now the Bahamas, and two more orders in Bahamas we are received recently. People have understood the importance of this, and the majority problem in the islands is the electric power.

If that power is taken care with a green method of manufacturing, I think people are very much interested in this type of projects.

Sir. Also, the recent

Sure. Thank you.

Thank you.

Congratulations on the great set of numbers. I just wanted to ask you that we had discussed an order from MSRTC bus conversion, right?

Is there any update on that? Also on the Starbucks keg for coffees, is there any update on that?

What noise?

Sorry.

Yeah. On the MSRTC, whatever equipment we have supplied, they're running successfully.

The trucks are running every day sorry, the buses are running every day. Unfortunately, that customer is not so aggressive, and he has some different mindset.

We are not pushing that customer very hard, because of the payment terms and other things are also very difficult with that party. Beyond that, we don't have much information, but I understand they're working somewhere other than INOX now.

Okay. On the Starbucks keg, coffee kegs?

Yes, Starbucks, we have supplied the samples and it is successful. Hopefully in this quarter, we should get some trial order.

Okay. One last question, can you give me an update on the LNG installed tank vehicles and fueling stations?

Is there any other big orders for fueling stations in the near term?

Fueling station awarded as on today are almost 70 numbers. The fuel tanks are in put together around 1,500 plus trucks are running on the Indian roads.

Okay. Is there any big orders we have, or are we in talks for?

We don't have much big order for both LNG fueling station as well as the fuel tanks. Going forward, there are two, three companies which are venturing into a big way into this business, and we are tracking them for our order.

Sir. Thank you so much.

I'll join back in the queue.

Yeah. Thanks for the opportunity.

I had one specific question. Last 3 years, if I were to look at the revenues, they've grown at 18%, but cash flow from operations are not growing.

In '23, on a sales of ₹966 crore, operating cash flow was ₹177 crore. Today, on sales of ₹1,587 crore, cash flow from operations is ₹116 crore.

Even last year, with a 21% sales growth, cash flow from operations was actually lower than '25. What is leading to this decline, and given the order book of 50% industrial gas, 28% from LNG, and 22% from cryo scientific, how should we look at operating cash flow on a going forward basis?

Actually, thing is, especially the capex every year we are doing capex more than ₹100 crore from last 2, 3 years, and in the coming

Capex doesn't come in operating cash flow, nah?

But

I'm talking about operating cash flow, not free cash flow.

Okay. Another thing is, we are now, because increase in the order book, we are getting more and more project orders, big orders.

In big orders, what happened, the investment is very high, and it is going on as per the POCM method of calculation for booking the sales. The payment terms in these project orders are on various stages.

When the stages are completed, then only we get the payment. The investment is high and the payment receipt cycle is as per the payment terms agreed with the customers.

Because of that, my contract assets is little bit high, and due to that, my operating cash flow is little bit lower. Otherwise, my inventory is in control.

My vendors, because of this order book, we are paying to our vendors very timely, and our vendor payment is very strong now. That we doesn't face any problem from the material side.

To understand this better, you are saying if I have a project of, say, ₹100 crore, and as per billing terms, till the time that ₹100 crore is not fully executed, you cannot have any cash flow related stuff in your accounts?

I just give one example. ₹100 crore is a I have an order of ₹100 crore.

From a project business, right.

An example of ₹100 crore. I got a project order of ₹100 crore, and as per payment terms, I got advance of ₹50 crore.

Whereas,

I already completed the project of ₹60 crore. Okay?

In the WIP, it is ₹60 crore, whereas I collected only ₹50 crore. What happens to the ₹10 crore?

₹10 crore is invested from my pocket till the next payment terms arise, like we are having the payment terms of 10%, 30%, 50%, 70%, 90%, and last 100%. Depends on the payment terms which we agreed.

Whereas, production goes on the regular basis. Some product may be completed 65%, whereas the next payment terms is 70%.

Unless I complete 70%, I will not get balance 20%. Because of that, what happened, in projects orders, we have to collect as per the payment terms agreed only.

Due to that, operating cash flow is little bit less.

Pawan-ji, given our varied businesses, varied projects, and multiple segments in which we operate, it should get offsetted over a period of time, nah? See, I'm not looking at one specific year.

I'm looking at 1 year, 2 year, 3 year.

Sales is

definitely growing, but sales at the cost of cash flow is happening. Are we okay with that, or is it a business mix which is driving it?

I'm just trying to understand it better to forecast how would that remain. Because it should get normalized with multi-product lines, multi-stage execution, because we are a contract-driven company.

I understand that, a project-driven company. Various stages, various orders come, various orders get executed.

That should improve, right?

Right, right, I expect on that way, but my product mix is changing. Product mix is changing.

My standard tanks is reducing and my non-standard orders are increasing. If you see, earlier it was just 30% project orders.

Now we have more than 60% project orders in our order book. The change in product mix is there.

My project work is increasing, and my standard products are not increasing so much than the non-project orders. My project orders mix is arising.

More than 60% now at present is my project orders. Okay.

We would expect this kind of not too much of a operating cash flow growth if project business continues to grow the way it is. It would remain more or less in that range.

it's only one question. There is no follow-up question.

I'm just talking about the operating cash flow only. There is no follow-up question from my end.

We are just talking about that. Anyways, Pawan-ji, we'll take it offline.

I think we need to discuss it better. They'll be offline.

Thank you.

Yeah. Yeah.

Thank you.

Sir. Thank you for the opportunity and congratulations on a very good set of numbers.

Sir, I just had one question in terms of the LNG business. Sir, now this 122 odd crores of a run rate, going forward, can we sustain this kind of a run rate, or in your overall guidance given of an 18% to 20% kind of a growth, what is the kind of growth we are expecting especially on the LNG front?

The LNG business is more of a, you can say, project-based business. There are standard equipments, but the standard equipments also are limited.

These orders are little bit lumpy, you can say. If you get a order, you get a order of ₹200 crore, or you don't get a order.

The time from concept stage to realization stage, it takes a little longer time. The variation will be there in quarter to quarter, but yearly basis, we'll maintain our targets and perhaps improve upon that.

Okay. Sir, just one clarification.

You mentioned fleet on the road as of now of INOX India in India is about 250 vehicles or 1,500?

1,500 are the trucks with the fuel tank. Others are 46 KL trailers, which are running on the road for carrying the liquid from the terminal to that station.

There is a difference. 1,500 is the trucks having the fuel tank.

Whereas, these trailers are collecting the liquid from the terminal and delivering to the fuel stations.

Okay. Got it, sir.

Thank you so much.

Yeah.

Or we're done with the time?

Hello. Am I audible?

My question is on your data center side. Like you said that there is a technology cryogenic cooling technology, how is it different from air cooling or liquid cooling in the unit economic terms, and what kind of opportunities are we expecting from this technology going ahead?

I told you, this technology is getting developed. This is in the R&D stage as on today.

If you stay air cooling, then you require air conditioners. If there is a water cooling, where you require chilling water.

The amount of energy and the time which takes for cooling from say maybe room temperature to say 2 degree or less than that, it's a long Whereas if you put a chip into the nitrogen temperature, it will get the 77 K or -196 in fraction of seconds or minutes. Okay?

That is what we are studying, how much energy saving will be possible if we can achieve that, and how much time we will save to achieve that. This is what we are studying.

This is specially in R&D stage. Different numbers

Is there any company in global level that they are doing this kind of tech or developed a product as of now?

There are no other companies who are thinking like this, but in our recent discussion during the exhibition in Europe, we found that there are a lot of companies like mainly the Intel, Microsoft, and other companies, they're really interested in finding out a solution like this. We will try to work with them and develop some prototype and test it at our place.

We have the R&D facility at IIT Mumbai. We'll be doing some tests over there, provide them the data, and we will work out how much energy saving and how much time saving is there.

If that is successful, then there is plenty of opportunities, I can say.

What is our R&D spend as turnover, as percentage of turnover or on an average?

It is for to comment on this. Wait for some time for this.

Sure, sir. Thank you very much for answering questions.

Thank you.

Thank you very much for your time and energy, and we had a very wonderful discussion. If any questions are remaining pending, you can send that to our IR team, and we will be answering those questions.

We always organize some visit to our plant, you can be in touch with our Adfactors, which is the agency who is dealing in all this, we can organize your visit so you can see the products getting manufactured, and we can have one more discussions on face to face. Thank you once again for joining this call, and I hope you had a good time.

Thank you so much.

Thank you. Bye.

Thank you. Bye.