Krishna Defence & Allied Industries Ltd - Q4 & FY26 Post Earnings Conference Call

Added: 2026-05-23

[00:00:04]Ladies and gentlemen, on behalf of Captify Consulting investor relations team, I welcome you all to the Q4 and FI26 post earnings conference call of Krishna Defense and Allied Industries Limited. Today on the call from the management team, we have with us Mr. Ankur Sha, managing director and Mr. Manisha, chief financial officer. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements which may involve risk and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to brief us about the business and performance highlights for the period ended March 2026, the growth perspective and vision for the coming year. Post which we will open the floor for Q&A. Over to you.

[00:00:52]>> Yes. Uh thank you Vin. Uh very good afternoon to all of you. Uh and thank you very much for removing time to come for our con call. Uh let me begin by introducing myself. I'm Ankur Sha, managing director of the company and I'm joined by my CFO Mr. Manisha. Uh without wasting much time, I will quickly run through the presentation what we are doing as a company and the financial highlights and we'll open the house as I said. Yeah.

[00:01:21]So uh we are a company started uh almost in 1997 that's my father who started the company was a double engineer. We are based out of Mumbai uh head office and our factory is based in Gujarat in Boda.

[00:01:34]We have uh we started off as an engineering company manufacturing equipment for the milk and the dairy industry and somewhere around 20067 we transcribed into uh the defense space that is there and that factory is at Halude. We have about 1 lakh 50,000 ft based uh in Halude which about 40 km from Mumbai. We have an associate office in Bangalore and we starting a venture in uh Chennai. Uh we'll talk about it as we move forward.

[00:02:01]Uh one of the uh uh key products that we manufacture is the bulbar. Uh the one that you see on the ship building section. Uh the one that you see in yellow is used for the hull construction of warships. Uh this has a very unique pecularity. The strength to weight ratios three times as compared to normal angle channels that is there. And uh worldwide most navies most uh naval platforms uh and even commercial ship building platforms use these bulbars to save weight without compromising on the strength. uh we are naval approved source for this particular product uh for this particular product and most the shipyards are our customers on that front. Uh next is the special steel alloy welding wires and the welding electrodes. These have very special chemistry having the precision control of titanium, nitrogen, nickel so on so forth. These are used for welding of critical platforms or you know survey ships the underwater platforms that are there. uh we have got uh certified by this by specialist uh from Russia to get these approved that is there. They're extremely difficult chemistry to achieve and further process is because of the inherent property of the steel that is there. But we are approved suppliers for the same and have been supplying that for the past few years.

[00:03:16]Uh on the left is the balas bricks. This is typically used mostly in underwater platforms, underwater boards I as I mean to say. These are used as artificial weights to create the right buoy and the balance on in an underwater platform. Uh the specularity of this particular product is there that this uh has a very low magnetic permeability making it very very difficult to build on the radar that is to predict on the radar to see on the radar data set and all these products the bulb bars the well consumables all of them were imported from Russia prior to our development. We have been focusing on working on indigenized product which were otherwise imported by the armed forces. The next product that you see is the armored steel profiles.

[00:04:02]These are Russian steel profiles which are used to manufacture the T90 tanks of the Indian army. Uh we are supplying this to HBF at Chennai. Uh there are these are used for the chassis construction of the tanks. That's what we are supplying. Uh the next product is the improved space heating device as we all call or uh this is simply a room heater which is used at high altitude to keep the room warm at the because you know we have the highest battlefield in the world at temperatures of minus 40 or something. This uses solar and kerosene or battery whatever electricity available and ensures there is no emission of carbon monoxide which we all know is a poisonous gas. This was under a tot with DRDO lab. Uh that's our customer range the army the navy all the all the different shipyards and now even HVF uh which is uh armored vehicle nam limited factory too these are the product range that we manufacture in the dairy site the milk cans the milk cooling tanks the making machine and the robotic milk collection units let's see a few hands up there is there can we just let me finish our presentation then we can take up the questions thank you uh I pass it over to Manisha to just run through quickly the financials of the company over to you.

[00:05:20]>> Thank you. Thank you and good afternoon everyone and thanks for having me.

[00:05:27]>> So um I think we delivered a strong operational and um you know financial performance in FI26 reflecting successful execution in the defense manufacturing segment and improving the operating le leverage. So the key message on this particular slide is that you know our revenue for Q4 26 for the quarter ended 31st March 22 since 2026 was 648 million rupees showing an increase of 42.2% 2%age year over year. IITA was um 161 million rupees showing an increase of 55.1%age year over year. IBITA percentage to sales uh for the Q4 was 24.8%age reflecting 206 basis point increase year-over-year. Net profit for Q4 2026 was 128 million rupees showing a year-over-year increase of 72.9%age and net profit as a percentage of sales uh for Q4 2026 was 19.7 19.7% sorry 350 basis point 351 basis point year-over-year moving on to the annual performance for that matter for FI26 we recorded a you know staggering revenue of uh 2448 million rupees showing an increase of 29.1%age over last year. Similarly, the profit sorry the IITA for the year was 520 million showing an increase of 69.9%age year-over-year.

[00:07:01]ITA as a percentage of you know revenue for the year 2024 20 it was it was stood at 21.3%age showing an increase of 511 basis point year over year over year net profit for the year was at 413 million rupees showing an increase of 85.6% 6%age year-over-year and um as a net profit as a percentage of revenue was 16.9%age showing an increase of 514 basis point year over year as on 31st March 2026 needless to reiterate you know we had a uh very strong order book and a strong tender pipeline as well amounting to 10 through 34 million rupees and 2210 million rupees respectively at the same time during the year we were able to create liquid reserve of 650 million rupees reflecting a liquidity enhancement for that matter. Next slide please. Thank you.

[00:08:05]So this is so on slide number 10 the key message on this particular slide is um from a compounded annual growth rate perspective uh between financial year 22 and 26 Krishna defense's revenue was increased by 52.8%age IDA 67.4%age and net profit 102.4%age 4 percentage.

[00:08:31]Moving on to the next slide please.

[00:08:32]Thank you.

[00:08:34]So whatever story I just narrated this is the graphical and the pictorial presentation thereof in terms of operating revenue, EIA and net profit.

[00:08:45]Moving on to the next one please. And similarly the very strong balance sheet and u u you know whatever you see from a profit perspective you will see profit is strengthening the balance sheet at the end and I'll take a pause over here handing over back to sir. Thank you.

[00:09:02]>> Thank you very much Manishb uh you know since the financials are over uh uh I'll talk about the key highlights that we did in quarter 4. Uh it was a major uh we got a design wing for an aircraft arresting gear. Uh these are basically uh it's a system that prevents uh the uh the onward journey of an aircraft if it were to cross at the lines of a runway that is there so that it does not overshoot. So think of it like a goalpost that is done. We added to our onward steel profile range from 17 that we are supplying to 26 because of the confidence level that the customer had in us. So more and more profiles are being given to us. uh very key certification that we got is the AS9100D certification which is of mandatory a quality certificate for certification for you to get into the aerospace particular components. We also got our IRS certification which qualifies us for the commercial ship building. Remember we already had the DNV and the EBS. Now we also have the IRS certification. In addition to bulbars that we were supplying, we also managed to apply few other profiles which are used for commercial ship building. uh we purchase uh a joining share it's about 50,000 square ft plot for the capacity expansion that we are looking to do and as Manisha explained we were able to create an FDR about close to 65 kores through the balance sheet so far uh taking on just giving a generic glimpse of what we did over the year that is there capacity you know we doubled our capacity uh from 22 2 and a half thousand tons of balbar to about 4 and a half thousand tons of balbar in April 2025 we also success uccessfully developed a few large castings which is in addition to the product range that we could offer to the navy or for the critical platforms we also got the BB certification a big milestone for a company when in December we migrated from board to the main board uh we are under construction of India's largest AUV in partnership with Navy uh and we have a transfer of technology from NIO Goa NIO stands for national institute of oceanography based out of Goa for the seabboard So we've taken the tot and we are building the product. We were also we signed an MOU with the ministry of steel for developing strategic steel which is used for the defense sector and uh it comes under the PLI scheme and uh you know since we did our expansion for shade we were uh doing to cater to the growing team that we have at factory we have now have a new office building at our hub promises.

[00:11:31]We also have a about 20% stake in a design company called Conceptia which is into last 15 to 18 years has been into ship and submarine design and block design so on so forth. Uh we also have a lot of 40% stake that's an associate company in wave optics defense solution.

[00:11:49]These uh this company specializes in making modules which are used for conversion of radio frequency to optical fiber and optical fiber back to radio frequency having uh several applications across the military joint uh uh to manufacture and supply composite uh fire resistant doors and hatches which are used uh at the Navy site. This is a replacement to the current steel door hatches that are used which are heavy, difficult to maintain and difficult to replace that is there.

[00:12:23]These are much lightweight and most of the European navies have moved towards that.

[00:12:28]Uh new prospects that we are adding to we are adding different additional grades of well consumables uh that we are doing. We are supplying only to a few platforms. Now we increasing the range that we can do. the customer or related customers have confidence in our ability to assign us with new development product which they which India is still importing. So that is a way forward that we look forward. Uh additional components for hull structure as I mentioned we are trying to increase our product range that is there. We've also had a joint venture you know we've taken stake in a company that is building smart ammunition amigance systems around particularly for the navy. they have been focusing on indigenizing imported steel weapon systems that are there. So this is something that we likely to take up uh and AUV is uh under the prototype scale and the seabboard with NIO Goa is something that we are looking forward to. So this is where the new change for us is likely to come through. Uh we aspire to grow at a rate of about 30% plus for the for the next few years. Uh and this is how we are we going to get there. we've delivered so far and we we are very uh sure that we will continue to deliver as we move forward. So that's it from my side and uh uh we could stop the presentation and get to the question answers. Yeah, I see a lot of hands up uh there is there.

[00:13:50]>> Thank you sir.

[00:13:51]>> Yeah.

[00:13:52]>> Yeah. Uh so all those who wish to ask a question may use the option of raise hand. If you're not able to use the option of raise hand, you can post your question in the Q&A section as well. So we'll take the first question from the line of Mr. Barat Berti. Mr. Barat, you can unmute and go please.

[00:14:06]>> Yeah. Hi team. Thank you. Strong set of results. Congratulations on that. Uh my first question was just for Manish sir.

[00:14:12]It was a bookkeeping question. Uh the 65 crores of liquid cash reserve that we've spoken about. I just wanted to see is that reflecting in the balance sheet in other financial assets and is it coming in the long-term section >> 65 cr that you're referring to it is reflected in the um just one second I'm just pulling out the balance sheet it is reflected in the long-term so if you go to non-current asset and where you see financial asset there is a section for others having a balance of 77 cr rupes 76.87 87 there that is part because it's a long-term uh long-term fixed deposit.

[00:15:09]So as per the Indian accounting standard whatever fixed deposits that you have um you know these days the way in works is so well before I move on to that this is the first year for us to adopt the inas uh because you know this is the first balance sheet that we are publishing after we were onboarded on the main board and 31st March 2 2026 is the first time adoption of Indas and now as per Indas you know the fixed deposits that you are having earlier we used to show uh you know you take the cut off date 31st March 2026 count 180 days and show short-term long-term but now that is gone whatever fixed deposits that you have you consider from the date of deposit and hence everything was shown in non-current asset. Does that help?

[00:16:02]Barat >> Mr. Barat, are you there?

[00:16:13]>> Yeah. Hello. Yeah, I couldn't unmute.

[00:16:15]Sorry. Yeah. Yeah, that helps us. So, just trying to understand. So, our cash balance is sitting at north of 100 kores right now. Would that be fair to say?

[00:16:24]>> You're right. In Balpa, you're right.

[00:16:27]Yeah.

[00:16:27]>> Got it. Got it. Got it. I'm just trying to understand that the major capeex that has undergone that we've seen in the cash flow is primarily for the Chennai and the rest of the land that we've acquired in halal. That would be right.

[00:16:39]>> That's right. So the capex break up if I have to give you uh Yeah. So that's right. I think in ballpark what you are saying makes sense.

[00:16:46]>> Got it. I'm just trying to understand that how do we plan to fund the uh capeex for our JV with Wabo?

[00:16:54]How do we plan to do that? Do we plan to infuse more stake in the JV which we already have put 51,000 into and how much will that amount fractify to any >> yeah the amount that is going to be required we there's no scope of increasing the stake further from here it's 51% the Dutch guy yeah the Dutch guy will now not let us increase any more than that and the initial investment 50% investment is going to come from their side that is there and the funding required is about four five crores only from our side. So which we can do from an internal we don't have to plan or take a debt to be able to fund that.

[00:17:31]>> Got it. Got it. Got it. So it'll be I mean how will the how will the books look like? Will it come will the capeex be on our standalone books or it'll have to be in the JV books? Right. So just trying to understand will it be a loan to a JV? How will that work out?

[00:17:44]>> Will be in the JV itself right? It's a capital of the JV will be part of the JV.

[00:17:50]So JV is a independent entity in itself for that matter and it will be having its own books of accounts >> and uh certainly you know part of the 51%age of whatever profit that you see over there that will be clubed with us uh when from this year onwards from 2026 27 onwards >> so so just a clarification on that we wouldn't be getting the entire consolidation of the JV books into our consolidated books we would just be having it as a share of >> but What a company that is being formed.

[00:18:22]It's a new company that is being formed that is there right? What is the rule for everyone? The same rule applies to us. Right? So we don't have a choice whether you can do this or you can do that. It's a 5149 new company being formed. So whatever the rule whatever you can consolidate will come on our balance sheet at the consolidate balance sheet level.

[00:18:40]>> Got that. Got that. Got that.

[00:18:41]>> Yeah.

[00:18:42]>> Yeah. And that is a we'll treat that as a joint venture not as a subsidiary.

[00:18:48]That's a technical discussion. Um not this is not the right time and right stage to discuss that but I I thought I'll just clarify that. Sorry. Um over to you. Thanks.

[00:18:58]>> Thank you. Uh we'll take the next question from the line of Mr. Rushit Ranga. Mr. Rush you can unmute and go ahead please.

[00:19:05]>> Yeah. Hi sir. Thanks for the opportunity.

[00:19:09]First of all uh many congratulations for the good result. So >> thank you. My question is that what is the margin guideline for the FI 2027 for the upcoming year?

[00:19:21]>> Uh there will be an improvement from here on that is there. So as as a company you always aspire on how you can increase your margins uh percentage margin that is there. So we aspire to keep uh keeping an incremental curve on that that that's what we see. So it will be higher than what is now. That's what we aspire to be. But look at the conditions that are happening right now.

[00:19:43]You very difficult to predict what's going to happen in the next 9 months.

[00:19:46]Right? So but we aspire that we will show an uptake in the margins in the coming years too.

[00:19:56]>> Got it. Thank you.

[00:20:07]Uh thank you. We'll take the next question from the line of Mr. Karan Singh. Mr. Karan, you can unmute and go ahead please.

[00:20:13]>> Thank you for the opportunity and great set of numbers. Uh so actually when I was looking at the order book right currently we have like 103 crores of unexecuted order book >> and for the pipeline it's around 220 crores and if I'm not if I'm right like generally when we try for the order book we get like half of the orders right like in the past so we it would be safe to say that the total order book for next year could be 220 crores right >> as on 31st March if you stand on 31st March 2026. Yes, what you're saying is correct.

[00:20:50]>> So then how will we able to grow next year for like 30%. So how does >> so you also have something coming in right?

[00:21:01]It's not going to be a dry patch.

[00:21:05]This that's why I said this is the position on the 31st of March 2026. And these tender these tender pipelines these are not tender that we're expecting. These are from which bits have already been submitted.

[00:21:18]>> Okay. And solution recently acquire active discussion orders already.

[00:21:32]I know it's very early to say but still sir you are only answering all your questions but so this is a company that is building a smart weapon for the naval systems per se. So it's under development. It should take at least about 2 to 3 years for the product to get developed and post that they will be talking about revenues coming forward.

[00:21:52]So it's a great team over there and we've been having long conversations with them and that's how we decided to invest with their and collaborate with them. It's just not a financial involvement. It is going to be an involvement that will help them build uh jointly build a product that I said. One last question operating cash flow positive right this year. So will this trend continue in the coming quarters and years like any for next year at least?

[00:22:28]You you just have your process is better. we have our processes better. So we will of course try to maintain a positive cash flow.

[00:22:36]>> One last question sorry uh if we see H1 to H2 technically our revenues have been flat and our margins have improved but revenues has been flat right any reason for that?

[00:22:49]Uh no sir, I would not uh see it like that. You have to see it from a yearon-year perspective that is there and H1 H2 flat also is not the correct way to put funds across is because if you compare to last year there's been a 30% rise from what we did last year per se. So there has been consistent improvement. Now you know we we love it when the quarter 4 is very heavy and you know that takes about 40% of the total revenue for the full year. But actually at the company level you are strained for resources be financial be manpower be machine resources. So we've been trying to balance in such a way that we get a equal all all quarters equally where everyone is everyone is comfortable all your resources are not overstretched that is so I would look at it from that perspective rather than seeing it from a quarterto quarter comparison perspective >> and you were talking about the Chennai thing right that you were able to you not able to complete regarding Chennai when you were talking about the presentation you're talking about the Chennai plans right that you Can you tell in in detail?

[00:23:56]>> Not complete. No, I didn't I didn't say anything not complete, sir.

[00:23:59]>> No, you were telling. No, but you are planning we are planning over there. We are planning to do our Excel AU work. The AU work that we are doing will be done over there with our partner company over there in Chennai.

[00:24:18]>> Okay. Thank you very much for the opportunity.

[00:24:20]>> Thank you. Thank you, Karan. Thank you.

[00:24:23]Thank you Karan. Uh I would request all the participants to please limit yourself to two questions per per participant only. We'll take the next question from Mr. Vun Vun Aurora. Mr. Vun, you can unmute and go at least.

[00:24:34]>> Uh hi sir, thank you for the opportunity. Uh just okay you suggested for uh so 30% CGR revenue you will target. Uh I'm audible sir to you.

[00:24:45]>> Yes, loud and clear.

[00:24:47]>> Thank you sir. So, so similarly a similar growth you're targeting for FI27 and FI28 if I'm if I'm right.

[00:24:54]>> Yes sir.

[00:24:55]>> Okay. Uh so the margin expansion happened very good in a way uh for from March 25 to March 26 to 21%.

[00:25:05]So for 27 and for 28 uh how you predicting your margin or if you can give some guidance on that part?

[00:25:14]uh they've been incremental per se one of the reasons for uh uh the high the specific higher margin throughout FI26 compared to FI25 is due to the product mix. So earlier we were only doing pulp bars right but now we have other products in a in a in an anvil which is uh your armor steel profiles your well consumables and a few other products that we are doing there the margin percentage is higher so that's how the balance trade-off comes in if and we assume that we will keep growing in that state that is there but to expect every year the margin will keep increasing by 5% no that's not a reality right that's not a reality that is there it will increase but it is not going to be every year 5% % that's not fair. Let's be realistic on that.

[00:25:57]>> Right. Perfect. But can we expect the similar margin trajectory for FI27?

[00:26:03]>> Yes.

[00:26:03]>> This product mix will be remain the same.

[00:26:05]>> Maintain maintained. Yes. Assuming the product mix remains the same. We'll see an update. Plus operation leverage kicks in, right? Operation leverage also kicks in. So that does help too.

[00:26:15]>> Okay sir. Uh so uh on conceptia and wave optics if you can uh tell or you can enlighten us for contribution from the these two things for FR27 and F128 that would be very helpful and uh yeah uh I'll take my last question in just next month please.

[00:26:35]>> So uh these two companies also both concept and wave optics as per their projection they will also be growing.

[00:26:42]Concept about 20% and wave up takes are about close to 30 odd% that is there that's what their plan for the next financial year is >> okay okay and any other segment you are targeting organically or inorganically you know in FI27 or FI28 that's my last question >> 2 uh we are targeting definitely to work on the smart ammunition because we see that's one area that we need to work on and also with the AUV so these two or three segments is something that we will be working on.

[00:27:13]>> Okay sir. Thank you. Thank you so much for >> Thank you Kar. Thank you. Appreciate it.

[00:27:17]>> Thank you Vun. We'll take the next question from the line of Mr. Shivam.

[00:27:21]Mr. Shim. You can unmute and go ahead please.

[00:27:24]>> Yeah. Hi sir. Thanks for the opportunity. Good afternoon. So >> thank you Mr. >> Yeah. So my question was with regards to the previous two participants question.

[00:27:34]Uh in followup to that so we have acquired around 47% in Tarabata solutions. So I was very interested into the opportunity fund for the company from the smart animation space and I and I had also gone uh through the comments from professor Colonel Tarabkar that uh he had received a grant from IDEX and uh like uh he had got uh an a into research for D ammunition which we were from Leonardo. So I wanted to know so like you were told that for the past two to so you were looking at from a next two to three year perspective. So my question is from a long-term perspective not 2 three years from a five year perspective uh how much uh opportunity can we see for Krishna defense first question was this and second uh also to an addition to the previous participants question. So what was the contribution to sales profit and the order book position for wave optic wave optics as well as conceptia for H2 as well as financial year 26 full financial year 26 this was my question >> great yes Mr. Shan firstly appreciate the in-depth uh you know research uh that you had done on the acquisition that we had done. Honestly when I first read about the company and I had not done so much research in the short time that you managed to do and so so congratulations and kudos for the research and the reading that you've done. you're spot on with the thing. Uh uh the the the company that we have invested in has a 25 cr grant from uh the Indian Navy to develop this particular product which actually is coming from Leonardo the Italian company and the the the the forces are looking to indigenize that because we don't want to be import dependent. we want to start to manufacture and indigenize the same in India because uh you know with the world scenario we don't know which way it is going to go and if you have an Indian vendor for that what more than that so the Navy is funding uh the development for the same and in terms of what the long-term plan is it'll take about 2 to three years to successfully develop the product that is there post that very high numbers that are there it may not be the right forum for me to talk about these kind of things at these forum but pretty large numbers uh and which will benefit uh both our country and us.

[00:29:58]>> Okay.

[00:29:58]>> So that's on that's on that's on the first part. Yeah. That's on the first part. In addition to the answer you gave like currently what the Indian Navy is importing from Leonardo the D amation is costing around 20,000 to around 50,000.

[00:30:13]So this was the expected that I could find from my research. So are we uh trying to cost optimize on that front as well?

[00:30:23]Right?

[00:30:27]So we don't have the product right. So first thing that you want to do is first make the product then think about how would you want to optimize the thing that is there. And as you know you know for if you are trying to make a product that they are doing you are going to be pretty certain you will be able to do in a better price than what they are doing.

[00:30:47]So uh I once again appreciate uh the the price points that you've got. They are in that range not exactly there but in that range that is there.

[00:30:56]>> Okay. Thank you sir. And sir second question the contribution numbers like sales profit and order book position for optics as well as concept for H2 as well as 26.

[00:31:07]>> Yeah. So I may not have at a granular level at an H2 H1 level but I can give you at the full year level which would which would serve your purpose per se.

[00:31:15]uh when we look at uh conceptia they did a revenue of about close to 80 odd kores that is there with a pat in the range of about close to 5 kores is what they did and uh their order book is in the range of about 20 25 kores that is per se uh when it comes to wave optics they've done a revenue about close to 22 or 23 cr rupes with a pat margin about close to 5 and a 5 to 5 1/2 k rupees for this financial year and order book open order book position is about close to six crores.

[00:31:48]>> Okay sir. Thank you sir. So these numbers were for the full year right?

[00:31:53]>> These numbers are for the full year.

[00:31:54]Yes. Yes. Yes. Mr. B.

[00:31:59]>> Yeah. Thank you very much.

[00:32:00]>> Thank you Shiva. We'll take the next we'll take the next question uh from the line of PHA. P you can unmute and go ahead please.

[00:32:10]>> Hello. Am I aud?

[00:32:13]>> Yes you are. Lord. Yes.

[00:32:16]>> Thank you sir. First of all congratulations for the amazing set of numbers. So my question is uh what would be the like mean from where will be the growth for FI27 it will be like could you explain me in just like brief that from AUV or from bulb bars?

[00:32:35]>> No. So the growth trajectory that we are showcasing for uh for the next couple of years at least is come from our primary products itself. right and the growth that we managed to do with the new addition uh with the new modification in the products that we do. So I we are not building in any projection from the AUV or the smart weapon uh uh to go with because these are all under development kind of products which may take time and which may get delayed. So the projections that have been given are coming from our existing and developed products per se.

[00:33:11]Got it sir. And sir, one last question.

[00:33:14]Uh what would be the order book by the end of the year? Like what do you see by the end of the year?

[00:33:26]>> But what I can tell you is we see ourselves growing at about 30% plus from year on year at least. So the next 3 years I can have a clear visibility of the products that we are doing. So you may do the backward math and you will have an answer because it's very difficult to say on one particular day what your order book opening order book will be like.

[00:33:46]>> Thank you Breit. We'll take the next question from the line of Dia Jane. Dia you can unmute and go ahead please.

[00:33:53]>> So am I audible?

[00:33:55]>> Yes. Yes. Yes you are.

[00:33:57]>> Thank you sir for the opportunity. So this aircraft resting air system this order that we've got uh can you quantify it and when we are expected to deliver it?

[00:34:08]>> Yeah. So uh quantify as in what quantify? What do you want to know on the quantification?

[00:34:18]>> DA can you explain what you mean by quantification? How what are we looking at?

[00:34:24]So how much revenue are we expecting from this?

[00:34:28]>> So the yeah it's a developmental product. It's under development. It will get developed that is there right? So the focus is right now to be able to successfully build the product that is there. I may not be able to reveal the exact value for the same for want of the NDAs that we have but uh uh this is not clubbed into the revenue that we are looking to do FI27 FI28 right now is for developing of the product. Once it is developed that is there then we will talk about the future revenues.

[00:34:58]>> Okay. So and order pipeline of 220 CR that we have can you uh give us a timeline of when these can be realized?

[00:35:08]>> This will be realized in FI27.

[00:35:15]>> Okay sir.

[00:35:18]>> Thank you and all the best.

[00:35:19]>> Thank you. Thank you very much. Thank you. Thanks.

[00:35:22]>> Thank you, Dia. We'll take the next question from the line of uh Mr. Rohit.

[00:35:26]Uh Mr. Ro, you can unmute and go ahead, please.

[00:35:34]>> Yeah. Hi Ashin.

[00:35:37]>> Ankur is the name.

[00:35:38]>> Oh, sorry. An uncle. Uh >> but that's my father's name. So I can refer my No, no. That's No, no, that's great. I I just wanted to uh I just wanted to understand how many what is the quantum of orders we got this year in FI26 >> quantum of number of orders or what >> no value of orders total value of orders >> total value uh total value of I don't know the math that is there but we were at 190 K order book as 190 K order book to start at April of 25 we executed about 244 and we are outstanding about 100. So you know you could do the math around on how much did we get in this year.

[00:36:21]>> Okay. So so as per your presentation last year the orders received in FI25 was 266 crores.

[00:36:28]>> We executed 245 this year and we are closing order book of 100 crores with a 200 cr pipeline. Is there some sort of slowdown that happened this year or there was less tendering uh or or the industry dynamics are the same?

[00:36:46]>> Industry dynamics the requirements everything is the same Mr. To what changed is you know we had uh uh we had operations Hindu for four or five months the focus of the government was on immediate deployment that is there. So what whatever had to come between April and uh September October all got pushed back for 5 months. So that's the reason that you're seeing and uh the times that are there you know at that kind of times you're looking at immediate deployment uh procurement or emergency procurement as you call the products that we manufacture in terms of bulbar well consumables and so on so forth. These are all used for constructing or the platform that is there. So there was a interim thing that is there that that happened and hence you see all the orders which were like to come in Q1 Q2 got pushed back to Q3 Q4. That's one point that is there. Secondly is because the ship building cycle now uh they are expecting all the vendors to gear up and deliver products much faster uh than what it was before. what it was before like earlier we would get uh 12 months to deliver the goods but now they expect us to deliver in six months time have production planning in such a way now and we have also been able to deliver now because of our enhanced production capacity that we did in April 2025 so there's no change in the ground reality that is there and in the projection but there was a pause for four or five months for the reasons that I told you for >> thank you uh we'll take the next question from the line of Mr. Rahul Shukla Rahul you can unmute and go ahead please.

[00:38:15]>> Yeah sure thanks for the opportunity. Uh first of all I think uh congratulations to management for great execution and delivery to the previous promises.

[00:38:26]>> Yeah so I think my question is already taken into bits and pieces just want to enhance on the order book. So we we are saying that we are running currently with the 100 crores order book and that pipeline. So obviously I understand you mentioned that those will be materialized in this financial year but from a growth perspective we are targeting 30% growth. So that is approximately 300 crores of revenue that would be clocking this year.

[00:38:50]>> Right.

[00:38:51]>> Right. So approximately if I go by 40 60 combinations so around 12 30 crores 150 crores would be the first half and we are having only an opening order book of 100 crores. out of those pipeline 200 crores are we anticipating the conclusions to be made within the first half itself and also I think in terms of the further order pipeline so is there any workar around where you are you know willing to bid for another 200 300 K of pipeline to complete that you know window of 300 k plus >> yeah so uh because we know what the projects are coming up at the naval side right and hence we have the confidence that we will be able to get to the the growth target that we have given that's that's the genesis that we are building things on now uh you know the position that we reflected is clearly on the 31st of March 2026 after that a lot of things have progress that is there and uh you know in the we expect that most of the tender pipeline that we have indicated should fruify in the first half some of them actually got fruified that is as we speak right now but others are also likely to get fruif in in a very short time. So uh all in all if you see we see ourselves getting to the target that we have achieved looking at the pipeline uh that are there and you know you go this is all publicly available data that is there with the new projects with the uh next generation corbits eight boards you know the LPDS the multi-purpose vessel uh the MCM that's likely to come up all these are projects that have been uh cleared and some of them are in finalization state some of them are in the RFP state some of them at the stage uh where the a for all these projects have come in. So we don't see any letdown or slowness that is there. Uh there was as I mentioned previously there was a let down for 4 months that is there is because of a very critical situation but I think we are we are over it now and we are looking forward.

[00:40:53]>> Okay fair enough. And I think just to uh build on to that as a follow-up question on the nature of orders that we are willing to beat for I I mean is there any uh change in approach from management or market conditions because uh I think the single largest order that we have received in the past was last I think in October 24 where we got 90 crores order of order. So are we going for more of uh number of orders with a smaller size rather than single biggest order too or it is more And Mr. Ra, we honestly had no control over that. Now uh you know shipyard's also becoming the customers also becoming smarter. They are wanting to place their uh orders in batches so that uh uh it's easy for them to do the inventory. They're not expecting us to they're not going to give us 12 months or 18 months to deliver. Now they expect us to deliver in 6 months time that is there because they want to keep the minimum inventory levels at their side also. So they want to improve uh that side. So the order quantum has remained the same but they've just been broken up into smaller parts and honestly the for us either is okay if you give us one big order or you split it up into parts that is there either is okay and we are willing to take anything that comes our way.

[00:42:05]>> We'll take few questions from the Q&A window. There are two questions from yes Jen. What is the addressable market potential for the gel capy program and when can we expect the first order and what's the likely size tentative indication of product variance >> right uh now this answer very difficult to give how much is going to be the actual market size for that but the year I would say the navy has year year Now, Ankur, we lost you for a minute over there.

[00:42:58]>> Yeah, please go ahead.

[00:43:00]Please go ahead.

[00:43:02]>> Yeah. Uh, I don't know who asked the question, but on the track. So the Navy has earmarked an budget about close to $1 billion on the autonomous or AUV space that is there. Now how much of that falls in this particular category?

[00:43:15]Very difficult because the product is not even ready right now. Right? The product is under development. Once the product is developed the concept of operations or how it is going to be used is uh looked at and then the future of the same will go forward. But just to give you an idea worldwide navies are buying this literally by the billions that is there. the navies who have successfully developed it, the countries that have successfully developed it. So the potential for the same is very very large. But to quantify it not very easy.

[00:43:43]His other question is why are we now exploring different products in defense especially casting trials and arresting gears and do we already have soft commitments there especially when our core business is already seeing strong demand.

[00:43:58]We are trying to grow our product basket that is there and uh you know we are using the same infrastructure we already have steam melting so casting is a natural tilt that we are getting into so there's no we are adding to our product range using almost the same infrastructure >> the other question is from Mr. Sata with the current capacity can we do 400 cr revenue organically?

[00:44:22]>> Yes, we can.

[00:44:23]>> Yes.

[00:44:26]>> We'll go back to the Q&A queue.

[00:44:28]>> Yeah.

[00:44:29]>> Thank you. We'll take the next question from the line of Shika Meta. Shika, you can unmute and go, please.

[00:44:36]>> Hello. Hi, Ankor. Sir, can you hear me?

[00:44:39]>> Yes, Lou. Hi, Shika.

[00:44:42]>> Hi. Congratulations on a great set of number and especially on the margins. Um I just had a few questions. Uh first regarding our new ventures, our new products. So is there any you know TAM we have in mind that below a certain amount we don't look at new products or is can you help me with your thought process behind the new products we're trying to get into and how we identify which ones are worth getting into and not.

[00:45:13]>> Okay. So uh Shik T is a criteria that is there but that's not the only criteria.

[00:45:19]Sometimes you want to do uh an order because you want to get inside a particular uh uh lab that is you want to get inside particular segment that is there where you may not have the choice to make a complex platform or a platform which has a large addressable market in excess of 100 K or two straight up that is there. Uh so you may have to start small and then eventually grow with adding your products that is there. So addressable market is a a thing but that's not the only thing. I I hope you can understand what I'm trying to say.

[00:45:48]>> Right. Got it. And sir on our existing product range mainly bulb bars, welding wires and electrodes uh steel profiles and the composite doors and hatches. Can you give a ballpark TAM of what we can do in a best case scenario peak?

[00:46:06]uh uh what we the TAM what we can do right now at the infrastructure that we have as I mentioned earlier we can get to a 400 to 500 K in the same infrastructure with some modernization automation that we built inside uh uh that is something that we is achievable provided we get the right product mix uh for the orders that are there >> understood and uh what would be our product mix for um you know FI26 Six.

[00:46:40]>> Sorry, I missed your question. Can you please come in?

[00:46:42]>> What would be our order book for I sorry our product mix for FI26?

[00:46:48]>> Uh about bulb parts about close to 60%, the welding wires is about 15 odd% as the HVF the RC profile about 15 odd%.

[00:46:59]And you know roughly around that then others be another 10%.

[00:47:03]Got it. And this is broadly what we'd like to maintain for FI27. Yes. Maintain these kind of masks.

[00:47:09]>> True, true, true, true.

[00:47:12]>> All right. All right.

[00:47:13]>> Thank you, Shika.

[00:47:14]>> Thank you. Yeah. I'll come back in the queue. Thank you.

[00:47:17]>> Uh we'll take the next question from the line of Prem Sony. Prem you can unmute and go ahead please.

[00:47:27]>> Hello. I'm Adan.

[00:47:29]>> Yes. Yes. Hi.

[00:47:32]Hi, congratulations sir for the good set of results. Uh I have a question on yeah so I have a question on our customer segment like can we have a figure or percentage in terms of what kind of revenue is contribution from the highest customer >> very difficult that is there because it all depends on which come which shipyard is going to get the particular platform that is there. So last year we did two customer X per se. This year we did customer Y. But all in all these are the six seven shipyards that we transact with and there's a fluctuation in amongst them.

[00:48:10]>> Like can we have a ballpark figure for top five players even in AB C D in in this way?

[00:48:17]>> It is not but I'll give you the figure for the last year FI26 but it will vary from FI27. See the moment a ship is going to be built they're going to require our product per se. They're going to require our product right. So whether shipyard a tender >> hello there's some disturbance at your end.

[00:48:59]Hello sir, >> please go ahead.

[00:49:09]>> Yeah, apologies. I had some internet issue at uh the office. So it's slow.

[00:49:14]Tell me please. Go forward.

[00:49:15]>> No, no worries sir. So so we were discussing about the customer uh contribution from our current revenue like if we can can can we give a ballpark figure from A B C D in this way?

[00:49:29]uh uh uh uh you would put uh to the customer A about 30%, the other one about 20%, and >> okay, >> I'm lost. Lost.

[00:50:04]Yeah.

[00:50:06]>> Yeah.

[00:50:07]>> So about uh 40% of the revenue, 35 odd% comes from one particular customer but that keeps changing. So that's a shipyard for us or a shipyard for us and the rest follows accordingly. So we have uh five six c main customer that give us the entire business.

[00:50:23]>> Okay. So sir uh like uh I I was reading about some of the shipping companies con call so I got to know that there was a some nextg corvette order is going to be lined up in next uh someday uh so there is a value >> value will be around 33,000 cr so can we as we are the one of the like we are one of two companies one or two companies who are into the niche product delivering kind of thing so can we expect some order from this segment as well.

[00:50:55]Yeah 100% sir but not some we'll get the whatever the requirement of the products that we are doing we are certified for the product that will that part order will surely come to us >> so this will be uh this will be the order for balbar right >> yes yes yes >> so assuming 33 hello >> yes please go ahead >> yes >> yeah so assuming >> yeah so assuming a value of order 33,000 can we expect as we have a 10% of composition which is for bulb bar in the or ship so can we assume 10% or 78% like a value of 33 or 3,000 crores of auto book >> no sir the 10% is by weight of balpa restorship it is not the value >> okay okay >> yeah yeah >> okay fine thank Thank you Prem. Uh we'll take the next question from the line of Baba Gandhi.

[00:51:58]Baba, you can unmute and go ahead please.

[00:52:01]>> Yeah. Hi, thanks for the opportunity. Uh just wanted to understand while you mentioned that 200 crores you've already bid uh for the orders. So what is the number that you are still going to bid for the full year? If you can just provide some uh number on that front as well.

[00:52:19]>> We'll bid for whatever comes our way, right? There's no finite limit that we stop.

[00:52:25]Our target is to be able to get to the revenue that we are predicting. So there's no uh stopping to get that but from the predictions that Navy has said and the shipyards as the gentleman mentioned we know the number of platforms that are likely to come through in the first half what's going to come in quarter three or quarter four that will help us reach our targeted revenue.

[00:52:47]>> Okay, got it. Fair enough. And uh this order book includes all your new products as well.

[00:52:54]>> This is just for the product.

[00:52:54]>> This is for the products. This is for the products that we have already developed there which is the pulpar the mercy profiles the well consumables and so on so forth.

[00:53:05]>> Got it. And you mentioned something$1 billion uh dollar opportunity on the AU side. If you could just elaborate that uh what exactly is that? Is it the domestic opportunity or the total global opportunity?

[00:53:17]No, that is what the in Navy has earmma uh for autonomous underwater platform.

[00:53:23]So it's not for the product that we are doing. It's the entire space that is there.

[00:53:28]>> Okay. So for if you were just to segregate your bulbar and the other products for the other products if you were to calculate the TAM total addressable market what would it be like? I mean on a broader context a very high level question. I know it's difficult to quantify but just to understand you know what market we are trying to cater to.

[00:53:48]uh I didn't I didn't understand the question that is said you know uh what we are looking yeah >> yeah I I'll rephrase it so one we have bulb bar and the existing products and there are new products that you're trying so if if you were to segregate the new products what would be the total opportunity size in your uh understanding in your experience could be in terms of revenue potential or maybe the total addressable market >> honestly first things is to be able to make the product. The other products that we are looking at the smart ammo, the AUV, the resting gear, these are all in development that I say, right? So there is definitely a large addressable market on that. But to quantify a number particularly on that is very very difficult uh per se. Uh uh so very difficult to give a specific number around that.

[00:54:37]>> Okay, got it. Okay, thank you so much.

[00:54:39]I'll get back in the Thank you.

[00:54:41]>> Thank you.

[00:54:43]Thank you, Baba. Uh we'll take the next question from Priyank. Priyanch you can unmute and go ahead please.

[00:54:50]>> Uh hi sir uh hope I'm audible.

[00:54:53]>> Yes. Yes P you are.

[00:54:55]>> Yeah uh great set of numbers sir. Uku sir I have a uh question in uh with regards to our um u sorry uh with the with regards to our uh uh current order book. Um is it I'm new to this company tracking sir.

[00:55:12]So uh are we currently bidding just for Indian one or export one? That is the first question. Second is a part question of this only. Uh the licenses that you have mentioned sir uh is are those act as an entry barrier if we bid for global customer or domestic ones if you can throw some light on that.

[00:55:33]>> What we have bid is all uh domestic only. The steels that we are doing for uh for the bulbar for the navy or the well consumable these are all classified. So we are not allowed to export the same as we speak.

[00:55:54]U okay sir uh sir next question is yeah next question is on the uh composite door sir. So um uh I assume we already uh in like last year before that also we are in business of doing it using a um uh steel phone or cast all right so will this composite one will eat up our existing margin sir like because uh I understand this is a better I beta or a better margin product because it's a lightweight but uh given the metal content is also reducing like will it cut down on the revenue new also for our existing product if it gets replaced by Indian Navy also composite is a replacement for steel door hatches we are not making steel doors and hatches at all we not making that there's no question of eating up revenue understood sir sir my questions are answered thank you for this opportunity >> thank you thank you pri Yeah, she will take the next question from the line of Shiva Kumar. Shiva Kumar, you can unmute and go ahead please.

[00:57:07]Uh sir, am I audible?

[00:57:10]>> Yes, Mr. Shivumar, you are.

[00:57:13]>> Yeah. Uh thanks for the opportunity and congratulations for the great set of numbers. So my couple of questions is regarding the uh if you can give any updates on the current the Jelkopy project which is currently ongoing and if there are any um uh subsequent orders that we are looking for that was my first question and second one is on the raw material inflation that we are currently looking on is there any yeah thanks for the opportunity >> yeah so I couldn't hear parts and pieces but uh whatever I could hear I could just question around that is there you want to know what the gel copy thing is.

[00:57:49]The work for the scene is progressing uh as planned. There could be a uh 3 months or something delay because this is under a developmental project. So these delays are likely to happen. Such product does not exist as we speak right now in the country. So it's under development. So that can happen and follow on orders and all will happen post successful development post trials so on so forth.

[00:58:11]So that's a some time away uh for us. I did not get the third part of the question that you asked sir.

[00:58:22]Uh sir uh my next question is on the if uh we are we seeing any raw material impact because of the price rise for the raw materials what we are making the products.

[00:58:36]>> Yes we are. So uh it's it's it's a it's a global issue that is there. So how could we be insulated? there is going to be uh uptake in terms of fuel cost uh uh in steel prices all of that. So that definitely there is an uptake in that there's going to be uh uh uh increase raw material pricing increase uh conversion cost that is per se.

[00:58:59]>> Yeah. Uh so are you seeing any impact on the margins or anything like that uh or any um substantial impact on that? Thank you.

[00:59:08]>> Not sub not there is any impact but not substantial.

[00:59:12]Yeah. Yeah. Thank you sir and all the very best. Thank you. Thank you very much.

[00:59:17]>> Thank you Shumar. We'll take the next question from the line of Karan Singh.

[00:59:20]Kar you can unmute and go ahead please.

[00:59:29]For the opportunity again. So are we taking any kind of special measures to like improve our margins? Like what are we doing in terms of how we can get better margins from here on?

[00:59:43]Um Mr. currently um you know uh improvement in productivity, improvement in efficiency is an ongoing process, right? It's an ongoing process. So by introducing better systems in place, how you can get uh a lesser rejection, your yield increase, it's an ongoing process.

[00:59:59]So no one stops that process. There's nothing special. So better processes implementation, better automation, uh better yield improvement uh is something that we are focusing on.

[01:00:11]And next year are we going to see like quarter on quarter results?

[01:00:15]>> Yeah. Yeah. It's we are on the main board now, right? So, so we will have to do it.

[01:00:21]>> Uh and last one question. So, currently we have like a joint venture with Vabo, right? So, when are we expecting the manufacturing to start at that uh plant and any order book traction that we can expect from Vabo joint venture?

[01:00:38]>> Yeah. So the manufacturing for the same has started that is there. It's a trial production for the same and we will see some traction in this financial year.

[01:00:48]>> Okay. Thank you very much.

[01:00:49]>> Thank you. Thank you Karan.

[01:00:50]>> Thank you. Thank you.

[01:00:52]>> We'll take the next question from the line of Achar. A you can unmute and go ahead please.

[01:00:58]>> Hello.

[01:01:00]>> Hello.

[01:01:00]>> Yes A.

[01:01:01]>> Yes Mr. D. We can hear you.

[01:01:04]>> Uh yes sir. Thank you for the giving the opportunity. So my question is about the inventory. Inventory has declined sharply from 724 K to 163 K this year.

[01:01:14]So could you clarify whether this reduction is driven by improved inventory turnover and execution efficiency or if there have been any changes in accounting treatment.

[01:01:27]>> There have been no changes in account treatment that is there. Uh the in it's just a cut off on that particular date.

[01:01:34]you know our raw materials that were uh away to come in February and March have come in first week of April that is there but if you saw the average inventory holding that is there that was in the range of about 40 odd K rupes that is there so I would not read too much into it the reality is not 72 Kores not 17 KS it's somewhere in between so the average inventory levels and pay holds were close to 40 odd Kores >> okay and the other question is about uh your guidance that uh you have given on the guidance of 30% growth over next 3 to 5 years. So could you elaborate on the key drivers of this growth like part specifically the segment contribution which segment will lead this growth?

[01:02:19]>> We are into the defense segment only. So all the revenues are likely to come from that and with the various projects that are there the naval projects and the tender pipeline that we have that is how we see ourselves getting there.

[01:02:33]No uh I mean product mix like um okay bulbs or >> yeah so uh there will be a proportionate increase in all of them uh the way it is right now about 60% uh revenue will come from the bulb bar 15 20% will come from the se profile 151% will come from the well consuables and uh so on so forth >> okay so you mean to say that uh it will be the same like >> will be similar yes you're right sir Okay. Okay. Thank you sir. That's all from us.

[01:03:05]>> Thank you. Thank you Mr. Arch.

[01:03:07]>> Thank you Arch. We'll take the next question from the line of Karthik but Karthik you can unmute and go ahead please.

[01:03:16]>> Yeah. Uh thank you for the opportunity and congratulations the management for a good set of numbers. So my question is on the commercial ship building opportunity. So we've secured the IRS certification recently for uh commercial ship building application. So a what other certifications would be required before we look to make further inroads in the segment or is it that we are all set to uh pursue the segment maybe more aggressively this year and B how is the inquiry pipeline now shaping up in this are we seeing a good uptick uh in inquiries as compared to last year >> uh the inquiries have just started to flow IRS so we are all geared up to answer your question in short uh we are all geared up if the ship bleeding orders start coming We have the certification, we have the approval, we have the bandwidth, we have the infra done that is there and we did very little last year that is there with requirement was very little but now things are improving and we are seeing an uptake in uh we will see an uptake in the requirements for commercial ship building very difficult to put a timeline to the same and the uh uh quantify that because we don't know which kind which way the projects are going to be shaping up but we are ready if the opportunity comes Okay. Okay. And on this aircraft resting gear systems uh was it largely being imported earlier? I mean is it being indigenized currently? And how's the competition intensity and segment? If you can throw some color.

[01:04:43]>> No absolutely your is being it was being imported and the the forces were looking to indigenize the same and not depend on any uh foreign vending for the same. So hence the indigenization concept.

[01:05:01]>> Okay. Sure. Thank you.

[01:05:03]>> Thank you. Thank you.

[01:05:05]>> Thank you. Uh Mr. Karthik. So uh due to the positive of time uh we take this as the last question for the day. Uh sir, would you like to give any closing comment before we end this conference call?

[01:05:20]>> Yes. I uh I would like to thank the shareholders and the investors that have come in over here. Really appreciate the time that you have spent and the faith that you have showed in the company and uh we are confident of achieving uh the targets that we have given forward as we have done for the past few years. So thank you for all the support that you have consistently shown. We expect that you continue to have the support and the faith in us. Thank you very much.

[01:05:46]>> Thank you sir. Thank you to the management team for giving us their time. Thank you to all the participants for joining us on the call. This brings us to the end of today's conference call. You may all log off now. Thank you.

[01:05:57]>> Thank you.

[01:05:57]>> Thanks. Thanks everyone.

[01:06:00]Take a bite.