Thank you. On behalf of DAM Capital, I welcome everyone today for Venus Pipes & Tubes Q4 FY26 earnings call.

From the company's side we have Mr. Arun Kothari, Managing Director; Mr.

Dhruv Patel, Whole-time Director; and Mr. Kunal Bubna, the CFO.

I hand it over to Mr. Kothari for his opening remarks.

Thank you, and over to you, sir.

Good evening and a warm welcome to everyone on the Q4 and FY26 earning call for Venus Pipes & Tubes Limited. I have been joined by Mr.

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

We have uploaded our Q4 FY26 investor presentation on stock exchanges and company's website. I hope you had an opportunity to go through the same.

FY26 was a year of continued momentum and steady progress for the company. Throughout the year, we remained focused on two key priorities.

First, successfully navigating the challenging global environment. The year saw multiple disruptions globally, starting with uncertainty around tariff, followed by geopolitical tensions and Middle East conflict.

In today's interconnected world, no economy or business remains untouched when such events occur. The biggest impact is usually seen in supply chains, whether it is sourcing raw materials or executing exports smoothly.

Despite these challenges, we navigated the environment well and continued to deliver steady growth. Our backward integration helped us helped insulate the business from raw material volatility, while our diversified presence across sectors and geographies also largely supported resilience through the year.

While RM prices and gas shortages increased, our strong procurement system and operational efficiencies helped us manage the impact effectively. However, a prolonged period of elevated RM prices may have some impact going forward.

We remain focused on driving further efficiencies across the businesses to further strong resilience and sustained performance. On the export front, we delivered an 18% growth in FY26, which is a strong performance considering the global situation.

Q4 did witness some temporary softness due to the Middle East conflict, but our diversified export presence helped us maintain momentum. Europe continues to remain a strong market for us, and our broad customer base across regions has supported in exports.

At the same time, domestic demand remained robust, particularly during Q4. We continue to witness healthy momentum from sectors such as power, oil and gas, engineering, and industrial applications.

In addition, we are now seeing opportunity emerge from several new-age industries, such like data center are creating demand for cooling and chiller applications; semiconductor manufacturing requires high quality piping solution for cooling systems; and solar manufacturing is also opening new avenues for us. We are receiving encouraging inquiries from these sectors and have already secured an LOI from the data center segment, which reflects growing confidence in our capabilities.

Additionally, we as a company also exploring CNG PNG sector, where there can be a good demand for our products. Overall, despite a difficult global backdrop, the company's demand resilient, continued to grow across domestic and export markets, and further improved its position in the stainless steel piping solution space.

The second major focus area for us during FY26 was expediting our capex plan and expanding and expanding our product range. One clear vision for Venus has always been to become a complete, one-stop piping solution provider for customers.

In line with this vision, we had announced our forward integration into fitting, along with the addition of higher grades in welded pipe, tubes, and seamless tubes. I am pride I am proud to say that entire capex program has now been fully commissioned.

This is an important milestone for the company and takes us one step closer to becoming a comprehensive solution provider for our customers. Currently, the company's total installed capacity stand at 27,600 metric ton per annum for welded pipe and 20,400 metric ton per annum for seamless pipe, apart from the fitting capacity.

Earlier, we had a planned expansion of 4,800 metric ton per annum in seamless pipe and tube capacity. However, considering the demand outlook and growing customer requirement, we decided to further enhance the project to 6,000 metric ton per annum by adding additional line, including 1,800 MT metric ton per annum getting operational in November 2025, and 4,200 metric ton capacity getting operational today.

Alongside this, we also added equivalent backward integration capacity for seamless pipe, and we are 100% backward integrated for the 20,400 metric ton per annum capacity to manufacture mother hollow pipe, which will further strong operational efficiency, improve supply reliability, and support long-term security of the business. The expansion significantly increase our product offerings and our ability to serve a customer across a wider range of applications and industries.

Our entry into fitting, along with our broader stainless steel product portfolio, places us among a limited number of players with a such a integrated capabilities. This not only improve our customer relationship, but also opens opportunities in sectors that we have high technical requirement and strong entry barriers.

Going ahead, we believe that these investments will help us deepen our market presence, improve our value proposition for customers, and support long-term growth for the company. In regard to our order book, our order book is today stand at ₹450 crore, without LOI of the ₹185 crore that we have recently awarded by one of the leading data center, and remains well diversified.

To conclude, the FY26 was an important year for the company, where we continued to deliver steady growth despite a challenging global environment. I will now hand over this call to Mr.

Dhruv Patel, who will share key developments.

Thank you, Arun ji. At Venus, we have always maintained an endeavor to be a one-stop piping solution provider for our clients.

In line with this vision, we are now further forward integrating into spooling solutions, with a capex of around ₹70 crore. The investment will be utilized towards setting up a dedicated spooling and fabrication facility, fittings machinery, and related infrastructure.

This capex is backed by a ₹185 crore LOI for order in the fast-growing data center segment. This also marks our entry into data center space, which we believe is a high-potential segment with strong long-term opportunities.

What makes this achievement even more encouraging is that we secured this despite currently not having an existing spooling setup. The win was driven by the company's strong reputation, established welded pipes capability across major SKUs, combined with our newly added fittings capacities, which reflected customer confidence in our technical strength, execution capabilities, and ability to scale.

This development is strategically important for the company for multiple reasons. First, it enables us to move further up the value chain and evolve from being only a product supplier to becoming a more integrated solutions provider.

Second, spooling solutions carry higher value addition, better realization, and stronger margin potential compared to standalone piping products. Third, this business will create strong backward linkage benefits by improving utilization of our existing welded pipes and fittings capacities, thereby enhancing overall operational efficiency and strengthening our integrated business model going forward.

Moving on to other key updates for the quarter and the year: First, we have acquired an additional 15 acre of land adjacent to our existing facility. This gives us a strong platform for future expansion and provides the company with long-term flexibility as we continue to scale capacities, expand product offerings, and enter into new segments.

Second, we are further strengthening our leadership and business development capabilities. We have recently appointed a senior marketing professional with deep industry experience to enhance our presence in emerging and high-growth sectors.

This will help us build stronger relationships with clients in new-age industries like data centers, semiconductors, clean energy, and other specialized applications. Third, we have also installed a tandem JCO press for manufacturing longer welded pipes.

This is an important capacity enhancement as only a limited number of players currently manufacture such products. The addition of this machine expands our product range, strengthens our positioning in specialized applications, and enhances our ability to cater to large and more complex client requirements.

With expanded capacities, a wider product portfolio, and strong client trust, we believe Venus is well positioned for the next phase of growth. We remain focused on building a scalable and value-added business, and thank all our clients, employees, and shareholders for their continued support.

With this, I hand over the call to Mr. Kunal Bubna, our CFO, for financial updates.

Good afternoon, everyone. We are pleased to share that our company has delivered a record performance in the fourth quarter and full year ended March 2026.

On revenue front, revenue from operation for Q4 FY26 stood at ₹302.2 crore as compared to ₹258.1 crore during Q4 FY25, achieving a growth of 17% year-on-year basis. Revenue for FY26 stood at ₹1,116.8 crore, witnessing a strong growth of 32%.

Revenue bifurcation for the quarter was 59% from seamless pipe, 34% from welded, and 7% from others. Growth in the seamless segment was 18% on year-on-year basis, and welded segment registered a growth of 15% for Q4 FY26 on year-on-year basis in terms of revenue.

Export sales stood at ₹87.8 crore for the quarter, compared to ₹112.5 crore in the same period last year, impacted by temporary disruptions rising from the Middle East conflict. However, we continue to maintain our export revenue share of more than 30%.

On the EBITDA side, our EBITDA for the quarter stood at ₹49.4 crore, as compared to ₹41.6 crore in Q4 FY25, a growth of 19%. EBITDA margin for the quarter stood at 16.3%, compared to 16.1% in the same period last year.

On FY26 basis, EBITDA showed a growth of 14%, standing at ₹190.6 crore, with a margin at 16.3%. PAT for Q4 FY26 is ₹25.4 crore, compared to ₹23.7 crore in Q4 FY25, a growth of 7% on a year-on-year basis.

PAT margins stood at 8.4% for the quarter. Our EBITDA to CFO conversion stand at 59% for FY26.

We look forward to a disciplined FY27, with a strong focus on scaling operations efficiently, improve capacity utilization, driving sustainable growth across business. Alongside growth, we remain equally focused on maintaining healthy cash flow conversion, operational efficiency, and disciplined capital allocation as we continue to strengthen the company for the long term.

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

Hello. You can hear me?

Yeah. Hi, sir.

Thank you for the opportunity. Sir, I have a couple of questions on the new foray.

Wanted to first understand that the spooling business, when will it come on-stream and what is the revenue potential, and what sort of EBITDA margins are we looking at here? See,

we are targeting to get on with this business by the end of this calendar year. The turnover, we see here turnover around 3x of investment is expected from this business.

See, it would be higher margin-driven business, higher than what we currently earn in our business.

Okay. Then this one ₹185 crore order book, this would be executable in what sort of time period?

Maybe around 15 months.

Okay. Sir, similarly, just wanted to get a sense on this JCO capex that we are doing, ₹12 crore.

By when will it come on-stream, what is the revenue potential like, or also if you can give some color on the sizes that it would help us make? See,

JCO is generally currently we do manufacture from JCO press, but this is a higher size of JCO which can make a longer length of LSAW pipes. Primarily, it gives a competitive edge where very few in the country manufacture those length.

It will help us to qualify for many of the tenders where we are currently not able to. It will give more visibility on the side of order.

The capacity primarily remains the same because it is one of the extension of our SKUs primarily.

Okay. This will come on-stream by?

It's more or less we are done with it. It's completed currently.

Okay. Sir, this capex, where we've increased our capacity instead of 4,200 to 6,000, what sort of capex did we incur on this incremental number for the The

total for seamless, welded, and fitting taken together, it has been more than ₹200 crore.

₹200 crore. Got it.

Fair. Sir, now, since we are adding this spooling capacity, what sort of revenue and margin guidance that we are giving for FY27?

See, for FY27, we see it should be at least more than 20% growth. From the margin perspective, we see it should be higher from what we have achieved in the last financial year.

See, we've been saying that this should be more moving towards 17% and then to 18% by FY28 at EBITDA level.

Okay. It will be higher than 16.3%, which was reported in FY26?

Yes.

Okay. Those are my questions.

I'll join back in queue.

Thank you.

Hi, team. Thanks a lot for the opportunity.

Just a couple of questions from my end. What would have been the volume growth in this particular quarter, as well as the full year FY26?

For FY26, that had been around 15%. For the quarter, it has been not 15%.

Okay.

For the whole year.

Okay.

For the quarter, it has been around 2% 2% around, roughly around 1% to 2%.

Sure. Kunal, can you break it up into seamless and welded?

Primarily, see, the growth on the side of seamless had been more than 15% stainless, and welded was around 10%.

Understood. What is the guidance now for next year's stand at?

It's more than 20% from here.

Got that. Secondly, just wanted to check on your working capital now.

How do we see that changing going ahead? What does the new business, when we are getting into data centers and all, what kind of working capital is needed in those segments?

See,

on the sales basis, it's around NWC is roughly around 120 days prior to that. We believe see it should continue even in the new business also.

Similar type of working capital we are seeing in the new business.

Okay. There will be no change in working capital for the existing

Not major we are seeing any changes.

Got that. Sir, when are we going to start and what is the total order book standing at this point of time?

₹450 crore, plus the LOI what we have received. Got that.

Execution of this new order starts from, for data center?

See, it's a LOI we've received, we are expecting the order soon. As and when that order being received, and we are building up the facility also.

Once these all things get completed, we'll definitely start giving it. We believe see the period of completion should be at least 15 months from here.

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

Thank you.

Good afternoon, team, and congratulations on a good set of numbers. Sir, my first question is that just on the basis of this ₹185 crore LOI, we are incurring a ₹70 crore capex.

Obviously, the visibility on this business seems to be much, much higher. If you can spend some time on that, sir?

See, just to brief you about the business, it's a cooling which circulates through a closed loop network to the server and critical equipments. Family, these fluid networks are increasingly being used in modern data center, especially in AI and high-performance computing environment for advanced thermal management.

Primarily, the fluid network offers several advantages like includes higher cooling efficiency, lower energy consumptions, improved temperature stability, and it enhances the liability. These systems are particularly relevant for AI-driven data center where computing density and heat loads are significantly higher.

See, the capex is definitely towards spooling, but the spooling is something which is required by It's like which industry which are using SS pipes can use spools. It is like PEB for piping, you can say.

Spools are used to avoid onsite fabrication. The pipes are fabricated with fittings in the factory and connected by nuts and bolts at the site only.

That sort of spool demand can be there from many of the sector going forward that we are in. Again, it also includes few expansion on the side of fitting and all, which we are currently started also.

It's a mixed bag, and definitely this order is a new one for us, but further we are working on it and to see more things to come.

Sir, this ₹185 crore LOI is from a single client?

Yes.

Okay. Lastly, sir, on this BHEL new ordering, is there any visibility?

We were expecting some tenders to open. What is the timeline on that, any sense?

Yes, Bhargav ji. We are already L1 in some of the tender.

Some good tender, which will able to get order in the next 1 or 1 and 1/2 month. Almost more than 50 CR order if we are L1.

That order will be received in next 30 days to 45 days time. Further new tender we are already participated in number of tender, which will going to open in the month of August to September.

By this second quarter of this financial year, we will able to get more order from the BHEL side. Apart from which, Bhargav ji, we are focusing for the spooling operation because nowadays the AI-based data center is booming market in India, and lot of investment is coming.

That's why we started this facility, which will utilize our pipe and fitting as well. This is a very good opportunity in the Indian market.

We are first who will create this facility in particularly in stainless steel pipe industry, who is providing this solution to client.

Right, sir. Thank you very much, and all the very best.

Yeah. Hi, team.

My first question is on the ₹200 crore capex, which we've done from start of financial year to let's say 2026, around ₹200 crores odd. What is the revenue potential from this incremental capex at let's say peak utilization?

See, the capex is more than ₹200 crore and we believe see if it is fully utilized, at 100% capacity utilization, it can give asset turnover at least maybe around 3x.

Okay. Wanted to get your sense a bit more on your export side of the business.

This quarter, of course, we saw a sharp decline on the export front. What's your outlook over there?

It doesn't seem that the Middle East crisis is going anytime, any soon. What's your outlook for the full year going ahead especially on the export side, which now almost a third of our business?

See, of the current order book also, we had an export percentage of roughly in the range of around 40%. For the FY26 entire year, we have maintained a run rate of generally around 30% for each quarter, more than that.

We believe see going forward also, more than 30%, 35% range should continue on the side of export.

Got it. My third question is if you look at your company let's say in a longer basis, for the last almost nine quarters or we are at a ₹25, ₹28 crore kind of PAT range.

While we've invested a lot, let's say in value-added pipes, fittings, increasing capacities in seamless as well as welded, it's not actually showing in PAT. What is expected FY27 to be?

Would see a material improvement in PAT as the quarters go by, or do you see because of the raw material challenges, some inflation, it might take a bit more time to accelerate the PAT growth for the company?

No, the PAT growth should come. Primarily to see generally the major portion of the capex has been completed.

All the available resources will be deployed in coming quarters to come. We believe see each quarter should keep on improving, and I think it should come also to the some PAT number also.

We believe this should keep on improving from here. Generally, many of the projects which have been started are value-added, seems it should show as a result at the PAT level also.

Okay. Got it.

Thank you and all the best.

Thank you for the opportunity. Sir, could you give us the capacity utilization number for the quarter and for the full year for welded and seamless?

See,

more or less for the year, seamless first connection plus more than 90%, 95%, and welded something around 60%, 65%.

For the quarter?

More or less same.

Okay. Thank you so much.

Thank you.

Thank you for this opportunity. Most of the questions on the spooling side have been answered by the management.

I had just one question on the unit economics. What is the amount per megawatt of spooling solutions required?

Per megawatt of a data center, what is the amount of spooling solutions required in tons?

No.

See. Please say.

Yeah. We can't say per megawatt the spooling solution require.

This depend on the which type of data center is going to install the data center operator. About this figure, we are not much aware.

Only the engineer of the data center design the data center, on this basis we know only the information is required by the data center that key what type of spooling they will require. It depends on the type of data center they going to install.

It cannot ascertain. We are seeing very good demand of the stainless steel pipe, spooling as well as fitting in the data center because they believe in the quality, or they require the reputed player to supply the pipe, fitting because it use in the critical operation.

Because any of the dust also can destroy their GPU or system. That's why all the data center operators wants the material should be supplied by the reputed player where they require the clean room environment, other things.

In India, the first very reputed data center has given us this order after seeing our facility, after seeing our growth, after seeing our quality of the product.

Sir, what kind of

a

realization per ton can we expect?

See, again, these are again sold on number, and primarily this needs to be seen.

Okay. Got it.

Hi. Thank you for the opportunity, and many congratulations for a good set of numbers.

I just wanted to confirm the volume growth numbers that you have answered to the previous participant. You had 15% growth on the seamless side for the full year

More than 15%, yeah.

more than 15%. On the welded, it would be around 18% seamless and 10% towards welded.

Around 18% and 10% towards welded.

Okay. How was the pricing behavior for the full year versus FY25?

It was slightly increased, 5% to 7%, but again, because of grade mix and all, that has also happened.

Okay. Now, stainless steel prices have risen by good 6%, 7% if we had to compare from the December lows.

Will we see that effect directly coming in FY27? Your guidance on 20% volume growth, we can expect somewhat of more pricing growth on that to translate into revenue?

See,

definitely there had been some increase in the prices of RM and all, but we believe see 20% guidance that we believe see we should achieve on the volume front at least.

Okay. Got it.

A general comment on the demand scenario, if you can answer with respect to how things are working in the export market with respect to the disruptions on the Middle East war, the cost inflations, if you're seeing anything, how the gas cost is working for you, and demand in domestic market, if you can answer this?

See, the US market, we are seeing demand. Definitely, yes, on the Middle East, because of this crisis, we are also not able to do much out there, and the order from Middle East is also we are not seeing much flow from that side.

We hope it should improve, and those things also we've started receiving orders from that side. Europe is we have the highest volume in Europe only, and this has continued in last quarter, and from the domestic side, we are seeing demand in CNG, power, oil and gas, engineering, chemical.

These are the four or five sectors where you are seeing demand.

Apart from Sahil ji, right now, we have the order book of the ₹450 crore. Apart from this, we have already received the LOI for supply to data center spooling solution, that's near about 185 CR.

Apart from that, we are already L1 in some of the BHEL tender, that is 50 CR. All together we can say our volume will be near about 685 crore visibility we are already having.

Out of 685 crore, the export you can say 30% is the export with remaining is from domestic market. At least for the next two to three quarters, we are seeing good visibility.

We are already bid for the number of projects in the domestic also. Once this Middle East market will open, lot of inquiries coming from Middle East market.

Lot of our new approvals, we have already received some of the new approach from oil and gas sector of the USA and the approvals from the Middle East also. We'll see once the Middle East market the conflict will be over, we'll see good demand from there.

For at least for next two to three quarters, we have a good visibility from Europe market, US market, as well as from domestic market.

Perfect. That is good to hear.

I'm just confirming you said the spooling business you expect the facility to be set up by December 2026, right? Is that correct?

You're definitely perfect. We will be operational before that, but December 2026 is the last date.

Perfect. Done, sir.

Congratulations, and all the best.

Thank you for the opportunity. Am I audible?

Yes.

Hi, sir. Sir, my first question is with respect to this spooling business.

If I heard you correctly, you said the asset turn in this business is around 3 times, right? The working capital is similar to let's say that 120 to 130 days which we are currently doing in the base business, correct?

Yes.

Sir, if I do a back calculation, assuming a 20% EBITDA margin, the ROCE for this business is more than 25%. Is that understanding also correct?

It should be, but again, this ₹180 crore will also include a part of our internal facility of pipes and fittings. See, each order has their own component of this fitting, pipes, and other bought-out components, this will vary from each order to order.

Okay.

When we say that we have received this LOI from a single customer, the customer in this case would be the EPC contractor to whom we'll be supplying this let's say assembled pipes? Because ultimately, the MEP work has to be done by the EPC contractor for the data center, correct?

No,

we have received from one of the data center only. We have already received this LOI from a data center.

Data center will take this material with us, or some of the fabricator will install at their site.

Okay. Sir, what were the criteria for us to win this LOI since it's a new business for us and since, as you also highlighted, it's a very critical application.

Any small damage can also result in shutdown of the whole data center capacity itself. What criteria were decided before giving us this LOI because it's a new business for us?

Deepak ji, just after seeing our facility, we have the pipe facility as well as the fitting facility also. Again, they require the fast execution of their project.

We have given commitment to them, we will able to do fast execution for this, and they have seen our execution. On that basis, they have awarded this LOI to us.

See, there had been a technical capability team that with us which has it can be executed. See, we manufacture wide number of SKUs both on the side of welded, seamless, and numerous number of fittings products are also coming underway.

We think that's also a criteria which helped us to qualify for it.

Okay. In this spooling business, as of now, who would be our competitor, let's suppose from a domestic and a global standpoint?

Domestically for this there will be some EPC contractor will be there they are having only fabrication facility or spooling facility. They don't have the ability to the pipe or fitting.

We are at the better edge who is providing this solution to data center with the pipe and fitting capacity. We will be in better position to them because the data center operators will get timely delivery, timely execution, each everything.

We are the first one in the pipe segment who has awarded this contract. Other players are only simply you can say fabricator who are engaged in this business.

Okay. Sir, for us to convert this, let's say, first of all, you'll have some trial runs, right?

Only then you'll start the commercial supply. Generally, as per your understanding, as things stand, means how long do you think this phase will convert from trial runs to actual commercial production?

Almost trial will be over in the Q2 of this financial year, and commercial production we are expecting to start in Q3. Middle of the Q3.

Good to hear that. Sir, one question I had on capex.

Given that you're spending ₹70 crores here, and you will obviously have some other maintenance capex for the base business as well, for FY27, what kind of capex number are we looking at at a console corporate level?

₹90 to ₹100 crores.

₹90 to ₹100 crores. Okay.

One last question on our growth guidance. You are guiding for 20% kind of growth.

Now, but if I look at your order book, in March 2026, we ended with ₹450 crore order book, right? Which was almost an 20% decline versus previous March, where we had a large order win from BHEL, which propelled the order book to almost ₹575 crore, right?

Starting this year on a lower order book plus you're seeing some weakness in the export market. I understand that Middle East is not a big market for us, but even the US and Europe, because of this energy inflation, they are talking about slowdown in the macroeconomy itself, right?

The capex plan of other industrial equipment where our stainless steel pipes goes. Just wanted to understand with slightly weaker order book and export being a little softer, what gives you the confidence that you'll be able to do that 20% growth since this data center business is also commercializing mostly in FY28 or maybe let's say December of this calendar year?

Deepak ji, almost if you will see, right now, we have the order book of the 450 CR of this pipe business. Apart from this, we are already L1 in some of the tender which is value of the 50 CR, which is going to be completed in the next two quarters.

Apart from this, we have already received LOI for this data center. Every month we are getting lot of inquiries from the local project over here as well as from the US market and Europe market.

This growth or apart from this we are already started with a new business fitting segment, which is a part and parcel of the pipe business. Where pipe is required, the fitting is required.

Seeing all this thing, we are confident that we are able to do growth more than 20%. Even if you will see, this FY26 was also very challenging year.

Compared to FY27, we are forecasting that this FY26 was more challenging, where lot of the Middle East conflict, Russia Ukraine conflict, then US tariff war, lot of things were there. Even then also we are able to achieve more than 32% growth on the top line.

This year already we are started with the capex, we are very hopeful we will able to do growth more than 20% in the FY27.

No, sir. I understand that despite all these challenges, we really showcased a good set of numbers, at least on the top line.

Congratulations on that. Delivering a 20% growth in FY27 also, just want to know your thought, how are you kind of thinking about it?

Means let's say if I had to simplify further, what kind of absolute revenue are we anticipating from fittings and our new venture, which is your hygienic and titanium tubes, and then the base business in this ₹1,400 crore kind of rough range, which you are guiding for in 2027?

All this thing we can elaborate in the one-to-one call to you at any time. We will elaborate on that what's our plan.

On overall basis, we're able to achieve more than 20% growth on the all together pipe business, fitting business, then this spooling business which we are starting. Apart from key we are already expanded our seamless pipe capacity, which was previously planned 4,800.

This has increased to 6,000. We are seeing good demand in the seamless pipe segment.

Apart from that, in power sector also domestically, we are seeing good demand. A lot of projects in last 1 and 1/2 years in India, apart from this power, data center, this oil and gas project, then chemical sector, lot of project you can say under installation or they are in under the preliminary stage.

There's a very good expansion in the steel sector also. If you will see all the big player in the steel sector, they are doing the huge capacity expansion.

In steel sector also, the usage of the stainless steel pipe day-to-day is increasing compared to the previously the industries using more MS pipes, but nowadays we are seeing in most of the operation they prefer to use the SS pipe for the longer life of their plant. This year we are confident, or further the breakup we can share you in one-on-one call.

Sir. Lastly, any approvals in our seamless or welded or titanium tubes and hygienic tubes that we received let's say in the last quarter or do we expect any further approvals?

Any notable approvals which you would like to highlight, which we think can come through in the next six months?

Kunal, you got

We received the order from global oil and gas companies, a few from sewage treatment plant, few approvals from chemical company. It's a mixed bag again.

A few from petrochemical and engineering company. Those things are being received in the last quarters, and we are hopeful out of them some must be converted in the coming quarters to come.

Okay. Very helpful, and all the best to the team.

Thanks a lot for the opportunity, sir. My first question is on EBITDA per ton across seamless and welded.

If you could just give out the data for FY26?

On a totality basis, I can give, it's around ₹65 per kg.

On a blended basis?

Yes.

Okay. Sir, second question is on margins, right?

We've seen a dip in margins obviously YoY. Incrementally, while you're talking about a 20% plus volume growth with fittings coming through, with these new solutions coming through, how should we look at margins in FY27 and thereafter?

First part of this.

Basically we said it will be higher from what we have achieved in the last financial year. Definitely, the intent is to reach up to 18% on a blended basis by FY28.

We see hopefully the intent is to get it increased each quarter to come. Okay.

Sir,

just a clarification on the fittings side, right? Now, with the spooling solutions coming through and we are also adding the fittings plant, it's commenced operations today.

How much of that seamless fitting pipe will actually be utilized for this spooling solution? If you can just a clarification there.

See, it's a two set of business for us now with the inclusion of this new. First will be pipe and fitting business which you sell to many number of our customer directly.

Second, it will be very new-age sector like data center, semiconductor, and etc. It will be two set of business for us from currently with the venturing into this spooling business.

That's how the customer will be getting it added. Again, it can be sometimes 20% to 30% of the fitting requirements internally can be pulled up into spooling.

Again, it's vary from order to order.

It's fair enough. That's all from my side.

Thank you for taking up my question. Just on the spooling side, right, am I correct in hearing that this order is on the domestic business front, the spooling order?

Yes.

Okay. Can we classify in terms of capacity for this new spools business as we're setting up, are we putting just enough capacity to fulfill this order, or will that be enough if we get certain future orders as well?

No,

see, again, it's asset turn, which would be better to look at. Spooling will be sold on numbers.

Definitely, the capex which we are going for in will definitely establish some of these capacity. Again, it will definitely also try to cater to more orders to come.

Okay. Just lastly, since we also have some presence in the US as well, will we be exploring the US region from the spooling perspective in data centers because that is also coming up in a big way in that region?

We are definitely open for that. See, we had currently a whole entire world presence with our pipe and we'll be moving to fittings, data center anywhere we'll be open.

As we already said, we started with this domestic and see how it pan out in coming quarters to come.

All right. Got it.

That's it from my side. Thank you.

Hi, sir. This is Sonal Minhas from B&K Capital.

Thanks for taking my question. My question is with regard to the realization gain that we've seen in this quarter.

Given that you mentioned that the volume growth was just 2%, the balance was the realization. Could you just get some subjective commentary on what this realization growth was for?

That's my first question. No,

see, QoQ quarter, if you see the quantity growth was 1% to 2%. If I see on year-on-year quarter, the volume growth had been there of more than 12%.

QoQ basically there's not much realization growth is what you're saying basically here?

Yes.

Got it. The second question is with regard to the execution status of the BHEL order.

What percentage of this order have we actually executed by Q4? If you could highlight and clarify that, that'd be helpful.

Something less than 60% had been executed.

Okay. Got it.

Just a clarification on the order book coming from the power sector in BHEL in particular. We've seen that there have been delays at the end of BHEL on the fabrication side.

Anything which you see or get a sense on whether the bottleneck there has been eased off or there is something which you can share which can help us understand the timelines of newer orders coming from there?

As I told you already, we are already L1 in some of the order, almost near about 50 CR. For further new order, we have participated already in some of the tender, which is going to open next two to three months.

Mostly we hope in Q2 of this financial year, the number of new tender will be open from BHEL side.

Okay. The pace at which these orders will come will be higher than what we've seen in the last one or two years?

Definitely because BHEL also just creating this fabricating capacity. Already all the old order awarded to BHEL from the big player is already delayed.

BHEL is also planning to expedite those orders.

Got it, sir. Thank you.

I'll fall back in the queue.

Hello. Thank you so much for the opportunity.

I just wanted to understand the data center order which we have received of ₹185 crores, is there any possibility for higher order going forward, more orders coming from the same customer?

See, definitely the intent will be take from the same customer and also from new customer. That's how we see the business going forward, and that's the reason also why we are setting up a dedicated capex for this spooling business.

The intent is very towards both new and the same customer also.

Okay. Is there a possibility of further capital expenditure in the spooling segment if we receive higher orders?

See,

currently, it's a good number the capex for this financial year. Going forward in coming six months or something we see more visibility, more order coming, definitely we can think on that line.

Currently, this is the amount of capex what we are pouring into.

Okay. Sir, just wanted a clarification.

We mentioned that 20% volume growth in FY26 and 27, but with additional capacities coming on-stream, is this a conservative number which we are giving and we can expect a higher growth rate in this FY27 and going forward as well?

See, the 20% growth is keeping the current scenario, the geopolitical scenario. Many things have been considered, and see, it's always an intent of the company to achieve a higher number what had been said.

See how it pan out going forward.

All right, sir. Sir, last question was on the margin front.

With the spooling turning in, can we expect a higher margin than the 18% blended margin? If not in FY27, can we expect a further higher margin because of this addition of business in the coming quarters?

See,

again, the answer would be similar. See the intent would be to at least when you establish in the spooling, you can definitely claim a higher margin.

Again, it will be a certain percentage of your total business which spooling will be catering to. Keeping all the constraint need to be taken into.

We believe currently it's up to 18%, but definitely the intent would be to achieve as higher we can.

Okay. Sir, in terms of Middle East, are we seeing any demand uptick from that order, recurring of the oil and gas pipelines or anything still time to come?

See,

we are quite hopeful going forward Middle East should be a good geography for us for supplying our pipes and all. We believe what internal information we have got from our team, there would be issue damage control order also coming forward.

Again, it will be slightly need to see how this geopolitical issue pan out and if this war issue get calm, I think then definitely we should see a good order coming from Middle East also.

Understood. Thank you so much.

to understand this spooling business a little more.

Hello. Is this better?

Hi, sir. Sir, I just wanted to understand this spooling business a little better.

How different is this spooling product versus Ratnamani, what Ratnamani does? I believe even they ventured into this a year and a half year back.

How different and what is the difference between the two?

Basically, what is in this spooling business is the different type of spooling business. Mostly the focus of the Ratnamani in spooling is for the nuclear power business.

Right now, we are going spooling is for data center. Every business, every size of the spool, every crater of spool is different, considering the nature of the industry where it's happen to use.

The spooling is of some you can say joint of the pipe, fittings, and other products for the any company in this industry who is setting their plant, they can do on the basis of nut-bolt. You can do number of variety business in the same facility.

You can do most of the variety of the spooling business in the any facility with the some minor critical equipment you can do.

Sir, would it be possible that even we can maybe get into nuclear business if the opportunity is big?

Definitely. The prospective of the business is wide.

Lot of limitations are there. Instead step-by-step, the endeavor is to grow the business, definitely, sir.

Okay. Sir, nuclear or whatever Ratnamani does, right, in spooling, they do an EBITDA margin of around 35%.

Are we looking at a same sort of number?

This is

It will again depend on how things pan, as we said, with few more orders to come and all.

Okay. Fair enough, sir.

Thank you so much for answering my questions.

Thank you all for joining us today. I hope we have addressed all of 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 SGA, our investor relation advisor.

Thanks, everyone.