Q1 2027 Goodluck India Ltd Earnings Call

August 10, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Goodluck India Limited Q1 FY27 earnings conference call, hosted by Catify Consulting. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day and welcome to the Goodluck India Limited Q1 FY2027 earnings conference call hosted by Kaptify Consulting. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vinay Pandit from Kaptify. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to the Goodluck India Limited Q1 FY 2027 earnings conference call hosted by Kaptify Consulting. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vinay Pandit from Kaptify. Thank you, and over to you, sir.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Vinay Pandit from Captify. Thank you, and over to you, sir.

Speaker #2: Thank you. Ladies and gentlemen, on behalf of the Captify Consulting Investor Relations team, I welcome you all to the Q1 FY27 post-earnings conference call of Goodluck India Limited.

Vinay Pandit: Thank you. Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the Q1 FY27 post-earnings conference call of Goodluck India Limited. Today, from the management team we have with us Mr. MC Garg, Chairman, Mr. Ram Agarwal, Chief Executive Officer, and Mr. Sanjay Bansal, Chief Financial Officer. I would now request the management to brief us about the business and performance highlights for the completed quarter, and then we'll open the floor for Q&A. Over to the management team.

Vinay Pandit: Thank you. Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the Q1 FY 2027 post-earnings conference call of Goodluck India Limited. Today, from the management team we have with us Mr. MC Garg, Chairman, Mr. Ram Agarwal, Chief Executive Officer, and Mr. Sanjay Bansal, Chief Financial Officer. I would now request the management to brief us about the business and performance highlights for the completed quarter, and then we'll open the floor for Q&A. Over to the management team.

Speaker #2: Today, from the management team, we have with us Mr. M.C. Garth, Chairman; Mr. Raha Magarwal, Chief Executive Officer; and Mr. Sanjay Bansal, Chief Financial Officer.

Speaker #2: I would now request the management to brief us about the business and performance highlights for the completed quarter, and then we'll open the floor for Q&A.

Speaker #2: Over to the management team.

Speaker #3: Management team.

Speaker #4: Hello, this is M.C. Garth. Good morning, everyone, and a very warm welcome to the Q1 FY27 earnings conference call of Goodluck India Limited. Thank you all for joining us and for your continued trust and support.

MC Garg: Hello, this is MC Garg. Good morning, everyone, and a very warm welcome to the Q1 FY27 earnings conference call of Goodluck India Limited. Thank you all for joining us and for your continued trust and support. FY27 has started on a strong note, and I'm pleased to say that transformation of Goodluck India is becoming increasingly visible in our financial performance and business profile. Over the past few years, we have been consciously moving towards becoming a diversified engineering-led company with a greater focus on value-added, technology-driven application-intensive products. Today, our presence expands defense aerospace, infrastructure, renewable energy, transition railways, automotive construction equipment, and other industrial applications. This diversification is making our business more resilient while improving the quality of our earnings. Q1 performance reflects this progress. Revenue grew strongly, while profitability grew sustainably faster, supported by better product mix, high utilization, and operational efficiencies.

Mahesh Chandra Garg: Hello, this is MC Garg. Good morning, everyone, and a very warm welcome to the Q1 FY27 earnings conference call of Goodluck India Limited. Thank you all for joining us and for your continued trust and support. FY27 has started on a strong note, and I'm pleased to say that transformation of Goodluck India is becoming increasingly visible in our financial performance and business profile. Over the past few years, we have been consciously moving towards becoming a diversified engineering-led company with a greater focus on value-added, technology-driven application-intensive products. Today, our presence expands defense aerospace, infrastructure, renewable energy, transition railways, automotive construction equipment, and other industrial applications. This diversification is making our business more resilient while improving the quality of our earnings. Q1 performance reflects this progress. Revenue grew strongly, while profitability grew sustainably faster, supported by better product mix, high utilization, and operational efficiencies.

Speaker #4: FY27 has started on a strong note, and I'm pleased to say that the transformation of Goodluck India is becoming increasingly visible in our financial performance and business profile.

Speaker #4: Over the past few years, we have been consciously moving towards becoming a diversified, engineering-led company with a greater focus on value-added, technology-driven applications and special products.

Speaker #4: Today, our presence expands across defense, aerospace, infrastructure, renewable energy, transmission, railways, automotive, construction equipment, and other industrial applications. This diversification is making our business more resilient while improving the quality of our earnings.

Speaker #4: Q1 performance reflects this progress. Revenue grew strongly, while profitability grew sustainably faster, supported by better product-based higher utilization and operational efficiencies. A particularly important development is the emergence of defense and equipment as a new growth engine.

MC Garg: A particularly important development is the emergence of defense and aerospace as a new growth engine. We have invested in this business with a long-term view, and recent order wins and regulatory approval demonstrate the progress we are making. We also continue to see strong structural opportunities in renewable energy, transmission infrastructure, and railways, both in India and international markets. Our export business is another important pillar of our progress. We serve customers across more than 108 countries. We continue to expand our global footprint despite the challenges in international trade. Going forward, our priorities are clear: scale the defense business, increase the contribution of value-added engineering products, execute our domestic and international order book, improve capacity utilization, and maintain disciplined capital allocation. We believe the investments made over the last three years are creating multiple growth engines for Goodluck India.

Mahesh Chandra Garg: A particularly important development is the emergence of defense and aerospace as a new growth engine. We have invested in this business with a long-term view, and recent order wins and regulatory approval demonstrate the progress we are making. We also continue to see strong structural opportunities in renewable energy, transmission infrastructure, and railways, both in India and international markets. Our export business is another important pillar of our progress. We serve customers across more than 108 countries. We continue to expand our global footprint despite the challenges in international trade. Going forward, our priorities are clear: scale the defense business, increase the contribution of value-added engineering products, execute our domestic and international order book, improve capacity utilization, and maintain disciplined capital allocation. We believe the investments made over the last three years are creating multiple growth engines for Goodluck India.

Speaker #4: We have invested in this business with a long-term view, and recent router improvements and regulatory approval demonstrate the progress we are making. We also continue to see strong structural opportunities in renewable energy transmission infrastructure and railways, both in India and international markets.

Speaker #4: Our export business is another important pillar of our progress. We serve customers across more than 100 countries. We continue to expand our global footprint, despite the challenges in international trade.

Speaker #4: Going forward, our priorities are clear: scale the defense business, increase the contribution of value-added engineering products, execute our domestic and international order book, improve capacity utilization, and maintain disciplined capital allocation.

Speaker #4: We believe the investments made over the last few years are creating multiple growth engines for Goodluck India. Our objective remains to build a stronger, more diversified, higher-quality engineering company capable of delivering sustainable growth and superior long-term value for all our stakeholders.

MC Garg: Our objective remains to build a stronger, more diversified, higher quality engineering company capable of delivering sustainable growth and superior long-term value for all our stakeholders. With these remarks, I would now like to invite our CEO to take you through the operational performance in greater detail. Thank you.

Mahesh Chandra Garg: Our objective remains to build a stronger, more diversified, higher quality engineering company capable of delivering sustainable growth and superior long-term value for all our stakeholders. With these remarks, I would now like to invite our CEO to take you through the operational performance in greater detail. Thank you.

Speaker #4: With these remarks, I would now like to invite our CEO to take you through the operational performance in greater detail. Thank you.

Speaker #2: Thank you, sir. This is Raha Magarwal. Good afternoon, everyone, and thanks for joining us. Q1 FY27 was a strong quarter, operationally, and demonstrates the progress of our strategy with 31% revenue growth, 46% EBITDA growth, and 67% PAT growth, with EBITDA margins above the 10% mark.

Ram Agarwal: Thank you, sir. This is Ram Agarwal. Good afternoon, everyone. Thanks for joining us. Q1 FY27 was a strong quarter operationally and demonstrates the progress of our strategy with 31% revenue growth, 46% EBITDA growth, and 67% PAT growth, with EBITDA margins above 10% mark. The key takeaway is that profitability is growing significantly faster than revenue, reflecting better product mix, capacity utilization, and operational efficiencies. On the volume side, standalone volume has increased 8.8% YOY to 122,718 metric tons, while annualized capacity utilization remains strong at 98%. The most significant operational development during the quarter was the acceleration of our defense business and has emerged as an important growth driver. Goodluck Defense and Aerospace Limited received an order of INR 255 crore for 155 mm long range ready to fill empty shells to be executed over 10 months.

Speaker #2: The key takeaway is that profitability is growing significantly faster than revenue, reflecting a better product mix, capacity utilization, and operational efficiencies. On the volume side, volume has increased 8.8% year-over-year to 122,718 metric tons, while annualized capacity utilization remains strong at 98%.

Speaker #2: The most significant operational development during the quarter was the acceleration of our defense business, which has emerged as an important growth driver. Goodluck Defense and Aerospace Limited received an order of Rs.

Speaker #2: Rs 255 crore for 1,55,000 long-wave radio-filled empty shells to be executed over 10 months. In addition, it received an order of Rs 52 crore for 20,000 155 shells, with execution over 3 months.

Ram Agarwal: In addition, it received an order of INR 52 crore for 20,000 155 mm shells, with execution over 3 months. The near-term focus is now on converting these orders into production and deliveries while maintaining the stringent quality requirements applicable to defense products. Goodluck Defense has also received DGQA quality assurance certificate for M107 ready to fill artillery shells. This strengthens our qualification for future opportunities. As I have earlier said also, despite all the headwinds, your company has been successful in wading through the choppy waters. Today, energy, mobility, and defense are the pillars around which total global economy is moving around. Your company is well connected to these sectors, which are supporting these pillars. We talk of energy, we need infrastructure to support energy, power generation. We are making solar support structures for fixed and tilt, both types to support renewable energy.

Speaker #2: The near-term focus is now on converting these orders into production and deliveries, while maintaining the stringent quality requirements applicable to defense products. Goodluck Defense has also received the DGQA quality assurance certificate for 107 ready-to-fill artillery shells.

Speaker #2: This strengthens our quality qualification for future opportunities. As I have mentioned earlier, despite all the headwinds, your company has been successful in wading through choppy waters.

Speaker #2: Today, energy, mobility, and defense are the pillars around which the total global economy is moving. Your company is well connected to these sectors, which are supporting these pillars.

Speaker #2: We talk of energy. We need infrastructure to support energy—power generation. We are making solar support structures for both fixed and tilt types to support renewable energy.

Speaker #2: In this energy deficiency atmosphere, solar is supporting India to continue its stride to the future. Against 500 gigawatts of non-fossil energy, 300 gigawatts have already been achieved. Out of its 164 gigawatts of solar, we have achieved so far.

Ram Agarwal: In this energy deficient atmosphere, solar is supporting India to continue its strive to the future. Against 500 gigawatts non-fossil energy, 300 gigawatts has already been achieved. Out of this, 164 gigawatts solar we have achieved so far, 55 gigawatts added in last year only. This data shows only that there is a great market available for our solar products. We are presently serving 30%+ market share of this sector. To transmit this energy across the states, we are making transmission line towers to the tune of 50,000 tons every year, and to give power to the last mile, making substation structures. This sector likely to grow by 50% in next 2, 3 years. A road network, a pillar for the mobility, and a railway network is required to happen this all. We are in road bridges, road safety barriers, and in rail routes.

Speaker #2: Fifty-five gigawatts were added last year alone. These data show only that there is a great market available for our solar products. We are currently serving over 30% market share of this sector.

Speaker #2: To transmit this energy across the states, we are making transmission line towers to the tune of 50,000 tons every year. And to give power to the last mile, we are making substation structures.

Speaker #2: This sector likely to grow by 50% in next 2-3 years. A road network, a pillar for the mobility and a railway network is required to happen this all.

Speaker #2: We are in road projects, road safety barriers, and in rail routes. We are making steel railway bridges and recently completed the bullet train project from Ahmedabad to Mumbai. We see a 100% growth in this sector in the coming 3–4 years.

Ram Agarwal: We are making steel railway bridges and recently completed bullet train project from Ahmedabad to Mumbai. We see 100% growth in this sector in coming 3, 4 years. To combat West Asia volatility, to ease gas and petroleum product, government has recently announced INR 80,000 crore incentive scheme to drill and transport oil. It needs new refineries, new oil blocks, new transfer lines. Your company's forging vertical is a major supplier to all type of flanges Whether in the subsea or over the ground, whether it is SS, alloy or critical material, we are there. Not only domestic, but globally as well, like ADNOC, Saudi Aramco, or any name you call. The future is waiting for this product. We see almost 60% growth in the next 3, 4 years in this particular sector. Automobile is the area which defines current urban and rural India.

Speaker #2: To combat West Asia volatility and to ease gas and petroleum product concerns, the government has recently announced an ₹80,000 crore incentive scheme to drill and transport oil. It needs new refineries, new oil blocks, new transfer lines. Our company, Exposing Division, is a major supplier of all types of flanges, whether for subsea or overground, whether stainless steel, alloy, or critical material—we are there not only domestically but globally as well, with clients like ADNOC, Saudi Aramco, or any name you call. The future is waiting for this product, and we see almost 60% growth in the next 3-4 years in this particular sector.

Speaker #2: Automobile is the area which defines current urban and rural India. Two-wheelers, four-wheelers, light motor vehicles, EVs—every item needs special structures which are light in weight but have the same toughness and durability as the alternative. Like, see, our seamless tube sector needs no introduction.

Ram Agarwal: Two-wheelers, four-wheelers, light motor vehicles, EVs, every item needs a special structure, which are light in weight, but having same toughness and durability as with the alternate, like see of seamless tube. Sector needs no introduction. July has seen the peak production of four-wheelers. Your company is present in a very specialized tube sector, CDW. In America, it is DOM tubes, construction tubes, hydraulic tubes. Recently developed 245 mm OD into 17 mm size for hydraulic tube, which is an alternate to seamless tube being imported till today. We all will agree that world is passing through destruction by way of different wars. Every destruction features construction. That is the reason US is still procuring these special tubes, even after 50% duty. We see a big opportunity in this segment.

Speaker #2: July has seen the peak production of four-wheelers. Your company is present in a very specialized tube sector—CDW in America. It is dorm tubes, construction tubes, hydraulic tubes. Recently, we developed 245 OD into 17 size for hydraulic tube, which is an alternate to seamless tube being imported till today.

Speaker #2: We all will agree that the world is passing through destruction by way of different wars, and every destruction's future is construction. That is the reason the US is still procuring these special tubes even after 50% duty.

Speaker #2: We see a big opportunity in this segment. Right now, we are doing almost ₹1,000 crore-plus turnover in this product, and we would like to double it in the coming 4-5 years.

Ram Agarwal: Right now, we are doing almost INR 1,000 crore plus turnover in this product. We would like to double it in coming four, five years. Now we talk of an interesting sector, defense, which has originated from our forging vertical. As wars are going on and many new wars are on the verge of eruption, mistrust and expansion of territories by world powers is leading the world in an unknown territory. Friends and allies are turning foes. Not to talk of Russia-Ukraine or Israel-Hamas or US-Iran, many new fronts are likely to open. US withdrawal from world scene has given anxiety to 27 European countries. Continuing Iran attacks on Middle East has given birth to new NATO, Saudi, Turkey, Pakistan. Depleting US stock also sends shivering to spine of its allies. What is the solution? Rearmament is the only solution.

Speaker #2: And now we talk of an interesting sector—defense—which has originated from our exposing vertical. As walls are going up and many new wars are on the verge of eruption.

Speaker #2: Mistrust and expansion of territories by world powers is leading the world into unknown territory. Friends and allies are turning to force, not to mention Russia-Ukraine or Israel-Hamas or US-Iran; many new fronts are likely to open.

Speaker #2: US withdrawal from world scene has given anxiety to 27 European countries continuing Iran attack Iran attacks on Middle East has given birth to new new NATO Saudi Turkey Pakistan depleting US stock also sent shivering to spine of its allies what is the solution rearmament is the only solution rearm your for 815 billion euro in next 5 years rearm Gulf and a new one is replenish US India is racing against time to acquire new technologies scaling up of marketing product military production boosting up exports to earn foreign exchange we have touched 38,000 crore defense export your company is available in this field we have established a production of 1,50,000 shells of M107 and EIFV its latest version not technology is moving at the speed of light so our R&D team is continuously working on future technologies of munition we want to become a reliable and precision supplier of fully RTU shells in future aerospace is another part where supplier where we will be putting capacity to become the part of ecosystem India is lacking badly apart from MCAR C295 C2295 now part of Rafale is likely to be manufactured in India a supplier ecosystem is the need of time in all company aims to achieve 300 crore to 350 crore target this year within mark the beat of 30 to 35% future plans are ready and soon we will embark on execution of same looking ahead our focus for FY27 will be on 4 key areas ramp up of defense production execution of defense order book increasing contribution of valued products including ramp up of hydraulic tubes division and continued growth in domestic and international infrastructure and transmission business we remain confident of delivering healthy growth in revenue and profitability during FY27 supported by our strong order pipeline optimum capacity utilization and increasing contribution from the defense and specialized engineering business at the same time we will remain focused on cost discipline operational efficiency and prudent capital allocation we believe good luck India is well positioned to build on this movement through FY27 and beyond with this I would like to conclude my opening remarks and request Mr. Bansal to give the details of the financials Good morning I Sanjay Bansal CFO on behalf of Goodluck welcome you all for joining us for the conference on performance of the company in Q1 of financial year 27 regarding Q1 performance stand alone the income from operations was at rupees 1,205.94 crores as against 983.29 crores during Q1 of previous year however EBITDA for the quarter increased by 15% is too that 110.53 crores as against 95.78 crores profit after tax including other comprehensive income was 49.66 crores in Q1 of FY27 as compared to 40.14 crores in Q1 of 2026 the earning per share has been at rupees 14 rupees 94 paisa per share in Q1 27 as against 12 rupees 62 paisa during Q1 of previous year performance consolidated during Q1 of FY27 was again very good total income increased by 31% at rupees 1,287.44 crores as compared to rupees 983.29 crores during Q1 of previous year EBITDA was 139.66 crores as against 95.80 crores registered a increase of 46% PAT during Q1 of current year was 67.22 crores registering a growth of 67% on ERO year basis earning per share is too that 19 rupees 13 paisa per share during Q1 of current year as against 12 rupees 62 paisa per share during FY26 registering a growth of 52% over previous year on financial front our interest cost and other expenses has marginally gone up due to increase in level of activity during Q1 of 27 as compared to previous year thank you very much now we are open for Q&A session thank you.

Ram Agarwal: Rearm Europe for EUR 815 billion in next 5 years, rearm Gulf. The new one is replenish US. India is racing against time to acquire new technologies, scaling up of military production, boosting of exports to earn foreign exchange. We have touched INR 38,000 crore defense export. Your company is available in this field. We have established a production of 150,000 shells of M107 ERFB, its latest version. Now technology is moving at the speed of light, so our R&D team is continuously working on future technologies of munition. We want to become a reliable and precision supplier of fully RT shells in future. Aerospace is another part where we will be putting capacity to become the part of ecosystem. India is lacking badly. Apart from AMCA C-295, now part of Rafale is likely to be manufactured in India. A supplier ecosystem is the need of time.

Ram Agarwal: In all, company aims to achieve INR 300 crore to 350 crore target this year within margin EBITDA of 30% to 35%. Future plans are ready. Soon we will embark on execution of same. Looking ahead, our focus for FY27 will be on four key areas, ramp up of defense production, execution of defense order book, increasing contribution of value-added products, including ramp up of hydraulic tubes division, and continued growth in domestic and international infrastructure and transmission business. We remain confident of delivering healthy growth in revenue and profitability during FY27, supported by our strong order pipeline, optimum capacity utilization, and increasing contribution from the defense and specialized engineering business. At the same time, we will remain focused on cost discipline, operational efficiency, and prudent capital allocation. We believe Goodluck India is well-positioned to build on this moment through FY27 and beyond.

Ram Agarwal: With this, I would like to conclude my opening remarks and request Mr. Bansal to give the details of the financials.

Sanjay Bansal: Good morning. I, Sanjay Bansal, CFO, on behalf of Goodluck, welcome you all for joining us for the conference on performance of the company in Q1 of FY27. Regarding Q1 performance standalone, the income from operations was at INR 1,205.94 crores as against INR 983.29 crores during Q1 of previous year. EBITDA for the quarter increased by 15% stood at INR 110.53 crores as against INR 95.78 crores. Profit after tax, including other comprehensive income, was INR 49.66 crores in Q1 of FY27 as compared to INR 40.14 crores in Q1 of FY26. Earning per share has been at INR 14.94 per share in Q1 FY27 as against INR 12.62 during Q1 of previous year. Performance consolidated during Q1 of FY27 was again very good. Total income increased by 31% at INR 1,287.44 crores as compared to INR 983.29 crores during Q1 of previous year.

Sanjay Bansal: EBITDA was INR 139.66 crores as against INR 95.80 crores.

Sanjay Bansal: EBITDA was INR 139.66 crores as against INR 95.80 crores. Registered an increase of 46%. PAT during Q1 of current year was INR 67.22 crores, registering a growth of 67% on year-over-year basis. Earning per share stood at INR 19.13 per share during Q1 of current year as against INR 12.62 per share during FY26, registering a growth of 52% over previous year. On financial front, our interest cost and other expenses had marginally gone up due to increase in level of activity during Q1 of FY27 as compared to previous year. Thank you very much. Now we are open for Q&A session.

Ram Agarwal: Registered an increase of 46%. PAT during Q1 of current year was INR 67.22 crores, registering a growth of 67% on year-over-year basis. Earning per share stood at INR 19.13 per share during Q1 of current year as against INR 12.62 per share during FY26, registering a growth of 52% over previous year. On financial front, our interest cost and other expenses had marginally gone up due to increase in level of activity during Q1 of FY27 as compared to previous year. Thank you very much. Now we are open for Q&A session.

Operator: Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Nishita with Sapphire Capital. Please go ahead.

[Analyst] (Sapphire Capital): Yes. Hello, am I audible?

Nishita Shanklesha: Yes. Hello, am I audible?

Operator: Yes, Nishita.

[Analyst] (Sapphire Capital): Yeah. I had a question on the listing of our Goodluck Defence subsidiary. I just wanted to understand why are we not demerging the entity instead of listing it separately? Because if we are going to list it separately, how are we going to create value for our current shareholders? Just wanted to understand that.

Nishita Shanklesha: Yeah. I had a question on the listing of our Goodluck Defence subsidiary. I just wanted to understand why are we not demerging the entity instead of listing it separately? Because if we are going to list it separately, how are we going to create value for our current shareholders? Just wanted to understand that.

Ram Agarwal: Basically, what we think today, that company will be, and we will be going for the listing on the basis of the future numbers. As far as for the demerger, our financial consultants have advised us for getting it listed separately in the favor of the shareholders.

[Analyst] (Sapphire Capital): Right. The current shareholders won't get the one-to-one benefit of the company. How is it going to create value for the current shareholders of the company?

Nishita Shanklesha: Right. The current shareholders won't get the one-to-one benefit of the company. How is it going to create value for the current shareholders of the company?

Ram Agarwal: For this current listing will also create a value for the current shareholders as well. As the company will move forward, it is for the benefit of the shareholders only.

Sanjay Bansal: It is subsidiary of Goodluck India.

Ram Agarwal: It is subsidiary of the Goodluck India.

Sanjay Bansal: Shareholders of.

Ram Agarwal: Shareholders of all the Goodluck group will get benefited by this.

[Analyst] (Sapphire Capital): Right. Understood. My next question is that we had a growth of around 50% this quarter. Do we foresee this growth continuing throughout the year? What kind of growth do we see for the defense segment?

Nishita Shanklesha: Right. Understood. My next question is that we had a growth of around 50% this quarter. Do we foresee this growth continuing throughout the year? What kind of growth do we see for the defense segment?

Ram Agarwal: We hope that the growth whatever we have registered this quarter, it should sustain in the near future also.

[Analyst] (Sapphire Capital): The margins also?

Nishita Shanklesha: The margins also?

Ram Agarwal: Margins, it is range bound. What is the 30% to 35% range bound margin should be there, as we expect.

[Analyst] (Sapphire Capital): Okay, understood. My last question is on the Defence order book. Currently we have an order book of around INR 300 crore, which is going to be executed in the next 10 months. Do we have any order book pipeline where we are L1 in the orders? If you can quantify the order pipeline for the Defence.

Nishita Shanklesha: Okay, understood. My last question is on the Defence order book. Currently we have an order book of around INR 300 crore, which is going to be executed in the next 10 months. Do we have any order book pipeline where we are L1 in the orders? If you can quantify the order pipeline for the Defence.

Ram Agarwal: Order pipeline is quite good. We have a good visibility. It all depends on whatever advances we get, on that basis only we declare the orders. Be rest assured, there is a good pipeline. There is no dearth of orders for this product right now to the company.

[Analyst] (Sapphire Capital): Okay. Understood. That is it from my side. Thank you.

Nishita Shanklesha: Okay. Understood. That is it from my side. Thank you.

Operator: The next question comes from the line of Shubham with 3A Financial Services. Please go ahead.

[Analyst] (3A Financial Services): Hello, management. Am I audible?

Shubham Kadhi: Hello, management. Am I audible?

Operator: Yes, Shubham.

[Analyst] (3A Financial Services): First of all, congratulations on a great set of numbers. I just had a couple of questions regarding the order wins on the defense segment. The company secured an order of INR 255 crore. However, the volume wasn't mentioned on how many shells would be supplying. Can the management first of all clarify that?

Shubham Kadhi: First of all, congratulations on a great set of numbers. I just had a couple of questions regarding the order wins on the defense segment. The company secured an order of INR 255 crore. However, the volume wasn't mentioned on how many shells would be supplying. Can the management first of all clarify that?

Ram Agarwal: Basically, we declare this INR 255 crore. It is approximately 50,000 shells.

[Analyst] (3A Financial Services): Okay. If I compare the realizations with the order win of INR 52 crore versus the order win of INR 255 crore, the realization is almost double. What is the reason between-

Shubham Kadhi: Okay. If I compare the realizations with the order win of INR 52 crore versus the order win of INR 255 crore, the realization is almost double. What is the reason between-

Ram Agarwal: Different types. These are different versions of shell. One is M107 and second is.

[Analyst] (3A Financial Services): Okay

Shubham Kadhi: Okay

Ram Agarwal: M107 and second is ERFB.

[Analyst] (3A Financial Services): M107 will be the 50,000 shells.

Shubham Kadhi: M107 will be the 50,000 shells.

Ram Agarwal: Depends on the range of the shell.

[Analyst] (3A Financial Services): Okay

Shubham Kadhi: Okay

Ram Agarwal: is 18 km range, second one is 38 km range.

[Analyst] (3A Financial Services): Okay. The 18 km would be the 20,000 shells order.

Shubham Kadhi: Okay. The 18 km would be the 20,000 shells order.

Ram Agarwal: Yes.

[Analyst] (3A Financial Services): Okay. The company recently clarified to the extent that the expected ramp-up would take place in H1 of FY28, if I'm not wrong, September or October of FY28. However, initially, the management had said that the expansion would be completed by end of FY27. What is the reason for the six-month delay of the ramp-up?

Shubham Kadhi: Okay. The company recently clarified to the extent that the expected ramp-up would take place in H1 of FY28, if I'm not wrong, September or October of FY28. However, initially, the management had said that the expansion would be completed by end of FY27. What is the reason for the six-month delay of the ramp-up?

Ram Agarwal: Basically, it is a financial closure. Now the financial closure is being done nowadays. As soon as the financial closure is over, we will start the ramping of the production as we had said. That is why there is a delay due to the financial closure of the project.

[Analyst] (3A Financial Services): Okay. We are confident that we'll achieve the expansion by H1 FY28?

Shubham Kadhi: Okay. We are confident that we'll achieve the expansion by H1 FY28?

Ram Agarwal: We will definitely get it. It all depends on the approvals and regulatory systems, because that is a major point in this all. Whatever we plan, approvals and regulations are always important. They may take time, which is beyond our control.

[Analyst] (3A Financial Services): Okay. One last question would be that, what can be the expected timeline on when we can IPO the different segment? If you can clarify.

Shubham Kadhi: Okay. One last question would be that, what can be the expected timeline on when we can IPO the different segment? If you can clarify.

Ram Agarwal: We hope that 18 months from today, it should be the time. However, again, it will depend on the approvals and the systems.

[Analyst] (3A Financial Services): Okay, sir. I wish you the very best. Thank you.

Shubham Kadhi: Okay, sir. I wish you the very best.

Ram Agarwal: Thank you.

Operator: The next question comes from the line of Pratik Bhandari with Art Ventures. Please go ahead.

Pratik Bhandari: Yeah. Hi, sir. Thanks for the opportunity. Just a clarification. You quoted that defense revenue for FY27 would range between INR 350 and INR 400 crores, whereas when you alluded last time, you mentioned the range would be INR 250 to INR 300 crores because the entire additional capacity of 2 lakh 50,000 shells would not get too much of time because it would start in the next year. Can you just clarify on that?

Ram Agarwal: First of all, I just clarified that the new project is delayed as we had declared in the SEBI filing also. Number 2, the turnover what we expected this year, it is from INR 300 to INR 350 crores, and the future turnover was expected on the basis of only plant going on stream. It has got delayed, it will be delayed by the months of the expansion.

Pratik Bhandari: Okay. The margin trajectory would range between 30% and 35%?

Ram Agarwal: Yes. We hope so, that this margin should sustain.

Pratik Bhandari: All right. If you can clarify as to what was the quantum of defense revenue for Q1? Revenue and EBITDA for defense.

Ram Agarwal: It was INR 80 crores and with EBITDA of 38%.

Pratik Bhandari: INR 80 crores revenue with 38% EBITDA, right?

Ram Agarwal: Yes.

Pratik Bhandari: Okay. Just one last question. On your debt repayment schedule, you mentioned that you would be repaying around INR 50 crores, INR 55 crores of debt. Have we repaid any in the Q1?

Ram Agarwal: Yes, we have repaid INR 25 crores so far.

Pratik Bhandari: The total quantum of debt repayment is INR 54 crores for FY27, right?

Ram Agarwal: It would be INR 62 crores.

Pratik Bhandari: Okay. We would be paying a higher debt.

Ram Agarwal: Yes.

Pratik Bhandari: Okay. Thank you, sir.

Operator: The next question comes from the line of Shikhar Mundra with Vivek Commercial. Please go ahead.

Shikhar Mundra: Yeah, hi. My question is for the subsidiary, Aerospace and Defense. Why did we raise funds from external investors? Why not get a right issue in Goodluck India itself, so that the whole benefit would have been with the shareholders of Goodluck India? When you list the subsidiary, the shareholders of Goodluck India won't be getting shares of Goodluck Aerospace and Defense directly in their accounts. How will it be beneficial for the shareholders of Goodluck India?

Ram Agarwal: Sir, Goodluck Defence and Aerospace remains a subsidiary of Goodluck India. Anyhow, whatever Goodluck India will get, Goodluck India shareholders will also get. For the interest of the company, we feel that this company should be listed because this company has to go far. Funds will be needed, and for that perspective only we are taking it to the public.

Shikhar Mundra: Wouldn't have been more you would have got a right issue. Hello?

Ram Agarwal: Hello.

Shikhar Mundra: Earlier, if you would have brought a right issue to Goodluck India, and that invested that money for Goodluck Defence and Aerospace, and now we would have listed it, then the shareholders of Goodluck India would also have got shares of Goodluck Defence directly. That structure would have made more sense, right?

Ram Agarwal: Actually, there are two views. Your view is also appreciable. Our financial advisor, they have preferred this route. That is why we have taken this route.

Shikhar Mundra: No, I just wanted to understand, sir. I don't want Goodluck shareholders will be at a discount. When you get a subsidiary value, the real value of shares does not get reflected in Goodluck market capitalization. That is the problem with all these holding companies. Get lot of discounts.

[Analyst] (Vivog Commercial): We should not have been lost because, see, if you had a problem in raising money in Goodluck, then for all practical purpose, you should allot shares of your Defence company to the Goodluck shareholders. That Goodluck Defence company's benefit is also passed on to Goodluck shareholders. Otherwise, you may be holding it 80%, 70% in Goodluck, but that discounting will be huge. You see, eventually Goodluck Defence will quote at INR 100, and Goodluck value will get value of only INR 70 or INR 60 proportionate to their market capitalization. This is a problem.

Shikhar Mundra: We should not have been lost because, see, if you had a problem in raising money in Goodluck, then for all practical purpose, you should allot shares of your Defence company to the Goodluck shareholders. That Goodluck Defence company's benefit is also passed on to Goodluck shareholders. Otherwise, you may be holding it 80%, 70% in Goodluck, but that discounting will be huge. You see, eventually Goodluck Defence will quote at INR 100, and Goodluck value will get value of only INR 70 or INR 60 proportionate to their market capitalization. This is a problem.

Ram Agarwal: I appreciate your view.

You say, good luck eventually. Good luck defense will quote a so and good luck value. Will get value of only 70 rupees or 60 rupees proposed state to their market capitalization.

And this is the problem.

[Analyst] (Vivog Commercial): Sir, see, I understand. Reliance also went for Reliance Jio. Eventually, Reliance Industries shareholders will get Reliance Jio shares. The promoter of Reliance Industries will directly hold shares in Reliance Jio. You should have that practice because your company is also professionally managed. These are all typical style of the old traditional promoters who try to control the company through their holding company.

Shikhar Mundra: Sir, see, I understand. Reliance also went for Reliance Jio. Eventually, Reliance Industries shareholders will get Reliance Jio shares. The promoter of Reliance Industries will directly hold shares in Reliance Jio. You should have that practice because your company is also professionally managed. These are all typical style of the old traditional promoters who try to control the company through their holding company.

Yeah, I understand. Now Reliance also went for a real go. Eventually, Reliance Industries shareholders will get Reliance shares.

And the promoter of Reliance Industries will directly hold shares in Reliance Jio.

So you should have that practice because your company is also professionally managed. These are all typical styles of the old, old, old traditional promoters, who try to control the company through the holding company.

Ram Agarwal: I appreciate. We will keep it in mind.

[Analyst] (Vivog Commercial): You keep it in mind, and that is why I am on the record, so that you realize after two years when your Defense company will get a huge premium, and the shareholders of Goodluck will be at a discount. Kindly consider my request. You should immediately demerge this company and allot the shares of the Defense company directly to the allottees of Goodluck shareholders. List that company also eventually, when you go for listing.

Shikhar Mundra: You keep it in mind, and that is why I am on the record, so that you realize after two years when your Defense company will get a huge premium, and the shareholders of Goodluck will be at a discount. Kindly consider my request. You should immediately demerge this company and allot the shares of the Defense company directly to the allottees of Goodluck shareholders. List that company also eventually, when you go for listing.

Ram Agarwal: Sure, we will keep in view.

A lot, the shares are good. Uh, the different company too, the directly to the— a lot is of good luck shareholders and list. That company also eventually, when you go for listing,

[Analyst] (Vivog Commercial): Yeah. Kindly.

Shikhar Mundra: Yeah. Kindly.

Ram Agarwal: We will keep in view.

[Analyst] (Vivog Commercial): I understand Goodluck is run by thorough professionals.

Shikhar Mundra: I understand Goodluck is run by thorough professionals.

Yeah, I understand. Goodluck is run by thorough professionals.

Ram Agarwal: Yes.

[Analyst] (Vivog Commercial): Yeah.

Shikhar Mundra: Yeah.

Ram Agarwal: Yeah.

Yes, yes, yes. Yeah.

Operator: The next question comes from the line of Ritika Seth with Anantya Wealth Advisors. Please go ahead.

The next question comes from the line of Ritika Seth with Anima Wealth Advisors. Please go ahead.

Ritika Seth: Thank you for a good set of numbers in Q1. One important question which we would like to highlight is, where are we today in terms of overall realization, which we expected it to reach in the next three years at INR 9,000 per ton? Where are we today? That's the first question.

[Analyst 1]: Thank you for a good set of numbers in Q1. One important question which we would like to highlight is, where are we today in terms of overall realization, which we expected it to reach in the next three years at INR 9,000 per ton? Where are we today? That's the first question.

Oh uh thank you for a good set of numbers in the q1. Uh, 1 important question, which we would like to highlight is, what is the overall where where I need today in terms of overall realization, which we expected uh it to reach in the next 3 years? At 9,000 rupees per ton? Where are we today?

So, that's the first question.

Ram Agarwal: You want to know when we will hit INR 9,000 overall per ton?

Ritika Seth: Correct. Overall realization in Q4. We had mentioned that we were somewhere around INR 7,000 per ton, and our anticipation forecast was about in the next three years should be around INR 9,000 per ton. Where are we today? Where are we standing today is the general question.

[Analyst 1]: Correct. Overall realization in Q4. We had mentioned that we were somewhere around INR 7,000 per ton, and our anticipation forecast was about in the next three years should be around INR 9,000 per ton. Where are we today? Where are we standing today is the general question.

If you want to know, when your will is 9,000 overall important.

Correct, correct? Correct. Overall realization in Q4—uh, you know, we had mentioned that we were somewhere around ₹7,000 per ton and our anticipated forecast was that in the next three years it should be around ₹9,000 per ton. So where are we today? Where are we starting today, is the general question.

Ram Agarwal: In this quarter, it has not increased much, but in the coming quarters, because this quarter was impacted by the West Asia crisis. We hope in the coming quarters, what guidelines chairman side had given, we will achieve it. Not an issue, because we are on the right path.

Ritika Seth: Okay. Noted, sir. Second question is, in the precision pipes and autotube segment, as well as the pipes and CR sheets segment. In these two segments in particular, what are our respective margin? We haven't given a margin breakdown in terms of these two segments.

[Analyst 1]: Okay. Noted, sir. Second question is, in the precision pipes and autotube segment, as well as the pipes and CR sheets segment. In these two segments in particular, what are our respective margin? We haven't given a margin breakdown in terms of these two segments.

In this quarter, it has not increased much, but in the coming quarters—because this quarter was impacted by the West Asia crisis—we hope things will improve. In the coming quarters, what guidelines... uh, the Chairman said, he had given, we will achieve it, not an issue, because we are on the right path.

Okay not uh second question is uh in the uh Precision pipe and auto due sex segment, as well as the uh uh pipes and ZR sheets segment in this 2 segments. In particular. Uh, what are the respective margins?

because we haven't given a margin breakdown in terms of these two segments,

Ram Agarwal: In terms of EBITDA, this pipe and CR, it is normally 3% to 5% margins. In the precision tube, it is 12% to 13% EBITDA margins.

Ritika Seth: Okay. What about the engineering structures and solar?

[Analyst 1]: Okay. What about the engineering structures and solar?

In terms of EBITDA, this pipe, and here it is—normally, 3% to 5% margins, and in the procedure too, it's 12-13% margins.

Ram Agarwal: Solar is normally 7% to 8%. This infrastructure is normally at 10% to 11%.

Okay. And what about the solar engineering structures and solar?

Ritika Seth: Okay. Perfect. What are the key risks at this point of time which you see? Do you see any input cost risks as of now with the positive developments in the geopolitical tension?

[Analyst 1]: Okay. Perfect. What are the key risks at this point of time which you see? Do you see any input cost risks as of now with the positive developments in the geopolitical tension?

Solar is normally 7 to 8%, and this infrastructure is normally at 10 to 11%.

Ram Agarwal: Yes. Input cost risk is very high because war is going up and down. We never know when the war will start, when the war will stop. All the petroleum products get volatile, and the petroleum products are in every product. Whether we use packing material, whether we use gas, everywhere this is a petroleum. Yes, definitely, it is a cause of concern. Moreover, the logistic cost, it goes up and down by this West Asia crisis. That is a concern, and we are seized of the problem, and we are taking steps to mitigate this effect to our working.

Okay, perfect. Uh, and, uh, what are the keys at this point of time, which you see? Do you see any input cost, uh, risks as of now with the positive developments in the geopolitical tension?

Ritika Seth: Okay. Lastly, what are our EBITDA margins for forging sector?

[Analyst 1]: Okay. Lastly, what are our EBITDA margins for forging sector?

Yes, yes, input cost risk is very high because V is going up and down. We never know when the ball will start when the ball will stop. So, all the petroleum products, get volatile and the petroleum products are in every product, whether we use packing material, whether we use gas everywhere, this is a petroleum. So yes, definitely. It is a cause of concern and moreover, the logistic cost, it goes up and down by this waste is a crisis. So that is a, that is a concern and we are seeing of the problem and we are taking steps to mitigate this effect to our working.

Okay. And lastly, what are the EBITDA margins for the forging sector?

Ram Agarwal: In our case, it is normally 12% to 13%.

Ritika Seth: Okay. Perfect. Thank you so much. All the very best.

[Analyst 1]: Okay. Perfect. Thank you so much. All the very best.

In our case, it is almost normal, normally 12 to 13%.

Okay, okay, okay, perfect, perfect, perfect, perfect. Thank you so much, all the way, guys.

Operator: The next question comes from the line of Ronak Sanghvi with Nafa Asset Managers. Please go ahead. Ronak, please go ahead with your question.

The next question comes from the line of...

Rock Singh with NAFA Asset Managers. Please go ahead.

Ronak Sanghvi: Okay. why is the defense segment not disclosed separately in the financial results, given its increasing contribution to the company's overall business?

Ronak Singhvi: Okay. why is the defense segment not disclosed separately in the financial results, given its increasing contribution to the company's overall business?

Product, please go ahead with your question.

Okay. So, uh, why are the different segments not disclosed separately in the financial results, given their complete contribution to the company? So, all business...

Ram Agarwal: Your question is not audible.

the question is not Audible.

Ronak Sanghvi: Hello, is it audible now?

Ronak Singhvi: Hello, is it audible now?

Operator: Yes.

Hello. Is it audible now?

Ronak Sanghvi: Why is the Defense segment not disclosed separately in the financial results, given its increasing contribution to the company's overall business?

Ronak Singhvi: Why is the Defense segment not disclosed separately in the financial results, given its increasing contribution to the company's overall business?

Yes, sir.

Sanjay Bansal: We have already given.

So why are the different segments not disclosed separately in the financial results, given their increasing contribution to the company overall?

Ram Agarwal: In consolidated, we have given.

Ronak Sanghvi: Consolidated, it will come. I'm asking the segment results separately.

Ronak Singhvi: Consolidated, it will come. I'm asking the segment results separately.

Ram Agarwal: Yeah. It is given. Standalone, we have given. defense, we have given. Consolidated also given.

You've already given in consolidated; we have given, not consolidated May, it will come. I'm asking these segment results separately. Yeah, it is given.

Ronak Sanghvi: No, the results sheet doesn't have segment classification.

Ronak Singhvi: No, the results sheet doesn't have segment classification.

Standalone we have given. Depends we have given. And a consolidated also given.

Ram Agarwal: You see, this is only one segment, iron and steel. Even defense sector, it falls under iron and steel segment only.

Uh, the results—she doesn't have segments. Uh, classification.

This falls under iron and steel segment only.

Ronak Sanghvi: Okay. Thank you.

Ronak Singhvi: Okay. Thank you.

Okay, thank you.

Operator: The next question comes from the line of Amish Kanani with Knowise Investment Managers. Please go ahead.

Amish Kanani: Yeah. Hi, sir. Congrats on a very good set of numbers. Sir, there was this transaction where we have raised some INR 285 crore at a price of INR 375 for our defense subsidiary. Sir, given that the annual report for FY26 is not out, there is some implied valuation that we have done for the subsidiary, if you can update us on that, sir. Hello.

The next question comes from the line of Amish Kanani with No Wise Investment Managers. Please go ahead.

Yeah. Hi congrats on a very good set of numbers. Uh, sir. Uh, if you can, uh, there was this transaction where, you know, we have raised uh, some 285 crores.

A price of these 75 for our defensive salary. Uh, so, sir, given that the annual report for fee, uh, uh, you know, 26 is not out, uh, you know, there is some implied valuation that we have done for the subsidy. If you can update us on that, sir.

Ram Agarwal: Hello. Yes.

Amish Kanani: Yeah. Can you hear us?

Ram Agarwal: Come again.

Amish Kanani: Sir, we have raised INR 285 crores at a rate of INR 375 of our defense subsidiary. If you can give us some sense of how many shares or what is the valuation at which this defense aerospace subsidiary is valued. It's very clear that we have implied a valuation of our subsidiary and diluted. If you can give us some sense of the valuation.

Hello, hello. Yes, yeah, come again.

Sir, we have raised ₹285 crore at a rate of ₹375 per share for our defense subsidiary.

So if you can give us some sense of, you know, how many shares or what is the valuation at which, you know, this defense aerospace subsidiary is valued. Because, you know, it's very clear that we have implied a valuation of our subsidiary and diluted. So if you can give us some sense of the valuation,

Ram Agarwal: Sir, it is a simple math. We have given the amount which we are intent to raise, it is INR 285, and we have given the per share rate also, INR 375. You can easily calculate how much shares we are going to.

Amish Kanani: Sir, in that press release, there is no number of shares given. That's why.

Ram Agarwal: Sir, it is.

So it is a simple math. We have given the amount which we are intact to raise, it is 25 and we have given the first year rate also 375. So you can easily recalculate that how much there is no number of shares given. That's why

Amish Kanani: Do you know the number of outstanding shares of defense and aerospace at this point in time, sir? Because we don't have our latest annual report of our company as well, sir.

Ram Agarwal: Issue we will have at this time, we are issuing almost 75 lakh shares. You will get the details.

So, it is not a matter of the number of outstanding shares of Defence and Aerospace at this point in time, sir, because we don't have the latest annual report of our company as well.

Amish Kanani: INR 75 lakh shares. What is the total outstanding shares of our subsidiary as of now, sir?

Sure, we will hear about this this time. We are issuing almost 70% here. You will get...

Ram Agarwal: Before the issue, outstanding number of shares for us, INR 4.91 crores.

75 axis. And what is the total outstanding shares of?

Amish Kanani: INR 0.91 crore was outstanding. They've issued INR 0.75 crores.

Before the issue, the outstanding number, of course, was 4.91 crores.

Ram Agarwal: If we are coming out after this preferential issue, it will be 5.66 total.

9.1 G was outstanding, and they will shoot 75.75 crores. So,

Amish Kanani: INR 5.66 crores. Is it rupees crores or number of shares, sir?

If we are coming out after this preferential issue, it will be 5.66. Okay?

Fine, 5.66 crores is in rupees. Crores are a number of years, sir.

Ram Agarwal: Number of shares.

Amish Kanani: Number of shares. Okay. I got it, sir. Yeah, that helps at least in terms of some clarification. Sir, if you can also give us some sense of the update on overall guidance. You've given us some guidance on the revenue side for the Defense. Defense as a percentage of total, how would it be? Maybe overall, what will be the consolidated growth rate or a standalone growth rate excluding Defense for the year? What I've seen, sir, exports is doing well again for Q1, there is seemingly, EU as a region probably has started to kind of give us some sense of growth. One, where is the growth on the exports coming? Second, outlook on exports, if possible, sir.

No problems.

Number of shares. Okay, okay. I got it sir. Yeah, that helps at least in terms of some clarification. Uh, and Sir, uh, you know, if you can also, uh, give us some sense of the overall, uh, you know, update on overall guidance, you have given us while, uh, you know, some guidance on the revenue side for the defense but, uh, uh, you know, defense is a percentage of total, how would it be?

Or maybe overall, what will be the Consolidated growth rate or a standalone growth rate? Excluding defense for the year? Uh, because what I've seen, sir other, uh, exports is doing well again for the first quarter and there is, uh, seemingly uh, you know, EU as a as a region probably, you know, has started to kind of, you know, uh, give us some sense of, you know, growth. So 1. Where is the growth on the exports coming? And, uh, second outlook on exports is possible sir.

Sanjay Bansal: The growth for exports is coming both from the US and Europe.

We see growth for exports coming both from the US and Europe.

Amish Kanani: Okay.

Sanjay Bansal: The outlook looks positive at the moment.

Amish Kanani: Okay.

Sanjay Bansal: Again, depends on international geopolitical situation, which is very much evolving on a daily basis.

Okay, the outlook is positive at the moment.

Amish Kanani: I appreciate, sir. Any sense of what was the Q1 growth of exports? We can imply from the presentation, but just for the quick benefit, and whether we should assume, either if you can give us some sense of the order book or a pipeline from the exports, it'll help us kind of understand the growth prospects for the exports, sir.

Okay, but again, it depends on your political situation, which is very much evolving on a daily basis.

Sanjay Bansal: It was around 53%.

Amish Kanani: Okay

Sanjay Bansal: for this quarter. The pipeline of orders is pretty healthy for this quarter also.

I appreciate sir. And, uh, any sense of, you know, what was the first quarter growth of exports, we can imply from the presentation, but just, uh, for the benefit quick benefit, and whether we should assume, you know, uh, either, uh, if you can give us some sense of the order book or a pipeline from from the exports, it will help us, you know, kind of understand the growth as prospects for the experts sir, it was around 53%.

Amish Kanani: Okay.

Sanjay Bansal: Again, geopolitical is a factor which should not be kept aside, that we have to continuously monitor.

For this quarter, the pipeline of orders is pretty healthy for this quarter also, okay?

But again, geopolitics is a factor which should not be.

Amish Kanani: I understand. It's very uncertain. Sir, last question before I go back in the queue. Transmission lines are also, there was a mention in one or two presentation before, that transmission lines exports are also looking up. Any sense of how is that, and whether EU or US transmission orders are also picking up, sir?

Kept aside, we have to continuously monitor.

Ram Agarwal: Basically, transmission solar energy, this non-fossil fuel energy is getting more and more. 300 gigawatt is already coming. The issue is, power is not getting transmitted to the states or the place where it is required. India is lacking on that. That is why there is a push on the more and more transmission lines from the solar centers. It is Rajasthan and Gujarat. It is looking up, and I hope in next three, four years, this demand will remain up.

I understand it's very uncertain, and the last question before I go back in the queue—transmission lines are also, you know, there was a mention in one or two presentations before, that for transmission lines, exports are also looking up. So any sense of, you know, how is that? And whether U.S. transmission orders are also picking up, sir?

But the issue is, power is not getting transmitted to the states or the places where it is required. So India is lacking on that. That is why there is a push for more and more transmission lines from the solar centers, which are Rajasthan and Gujarat.

So it is looking up, and I hope in the next three to four years, this demand will remain up.

Amish Kanani: Okay. Thanks a lot. I have few more questions, but I'll go back in the queue. Thank you.

Operator: The next question comes from the line of Rahul Mishra with RTL Investments. Please go ahead.

Okay, thanks a lot. I have a few more questions, but I'll get back to you. Thank you.

Rahul Mishra: Yeah, thanks for taking my question. Given that this INR 255 crore order has only about 50,000 shares, you will still have some capacity left for FY27, correct?

The next question comes from the line of Rahul Mishra with RTL Investments. Please go ahead.

Ram Agarwal: Yes.

Yeah, thanks for taking my question. Uh, now, given that this 255 CR order has only about 50,000 shells, you will still have some capacity left for F27, correct?

Rahul Mishra: Okay. Sorry, I missed that.

Yes, yes. Yes.

Okay. And, uh,

Ram Agarwal: Sir, basically, orders are in the pipeline, and this order, which we have put over INR 255 crore, it is to be executed in 10 months. It will get forwarded to next year as well. For the capacity, what we have put up, we have the enough orders today. I suppose that is your concern.

Sorry, I missed that.

But basically, orders are in the pipeline, and this order, which we have put for our 2505 Pro, is to be executed in 10 months. So, it will get forwarded to next year as well.

Rahul Mishra: My question was that, given that you have 150,000 capacity and this is a higher value, 50,000 shell, this thing, in case there are more orders for this year, you are in a position to take more orders.

But regarding the capacity we have put up, we have the inner portals today. I suppose that is your concern.

Ram Agarwal: Yes.

You know, my question was that given that you have 150,000 capacity, and this is a higher value 50,000 shell, in case there are more orders for this year, you are in a position to take more orders.

Rahul Mishra: Okay. Secondly, given that the expansion has been delayed, would you like to restate, earlier we had spoken about INR 1,000 crore for the defense subsidiary for FY28, INR 800 crore from shells and INR 200 crore from aerospace. Do you think that number is achievable?

Yes.

Ram Agarwal: That number definitely it will go forward for six months to nine months. By that time, this project get delayed, so that time will be added to our forecast, what we had given earlier.

Okay. Okay. Okay. And secondly given that the uh expansion has been delayed. Uh would you like to restate, you know, earlier you had spoken about a thousand crores of the defense, subsidy for 28 800 from shells and 200 from Aerospace or do you think that number is achievable?

Is that number? Definitely, it will go forward for six months to nine months. By that time, these projects are delayed.

So that time will be added to our, uh, forecast—what we had given earlier.

Rahul Mishra: Okay. Would you like to put a new number for FY28?

Okay, so would you like to put a new number for the fee on the 20th?

Ram Agarwal: Let the expansion plan come into active execution, and we will update the new plan. We will update the new numbers.

Rahul Mishra: Understood, sir. Finally, one more question, sir. Any status update on Goodluck Astra so far?

The less the expansion plan comes into active execution, we will update the new plan. We will update the new numbers.

Understood, sir. And finally, one more question, sir: any status update on Goodluck Astra so far?

Ram Agarwal: Sir, land has been allotted, license has been applied. We are waiting for the same.

so,

It has been applied. We are waiting for the same.

Rahul Mishra: Understood. That's all from my side. Thank you.

Operator: The next question comes from the line of Dhananjay Bhagrodia with Alchemy. Please go ahead.

Understood, understood. That's all from my side. Thank you.

The next question comes from the line of Dhananjay Bagoda with Alchemy. Please go ahead.

Dhananjay Bhagrodia: Hello.

Dhananjai Bagrodia: Hello.

Operator: Dhananjay, please go ahead with your question.

Hello, hello.

Dhananjay Bhagrodia: Yeah. Can you hear me?

Dhananjai Bagrodia: Yeah. Can you hear me?

Operator: Yes.

Dhananjay Bhagrodia: sir, most of my questions are answered. Just a couple of booking questions. What is the CapEx we're looking in both entities for the next couple of years?

Please go ahead with your question. Yes, can you hear me?

Dhananjai Bagrodia: sir, most of my questions are answered. Just a couple of booking questions. What is the CapEx we're looking in both entities for the next couple of years?

Yes.

This is, most of my questions are answered; just a couple of booking questions. So, what is the capex we're looking at in both entities for the next couple of years?

Ram Agarwal: CapEx in the defense sector, we have already given it should be almost INR 400 crores. For the standalone unit, it should be almost INR 100 to 150 crores.

Dhananjay Bhagrodia: Okay. Standalone 100, 150. Sir, lastly, just one more question, sir. Margins for both. We've done a very good job of actually keeping margins stable, considering how input costs have increased. Is there more scope going ahead? Because if assuming input costs are subsiding with steel prices reducing and oil and gas prices reducing, would that be significant margin improvement then? Would we go above this 10% mark?

Dhananjai Bagrodia: Okay. Standalone 100, 150. Sir, lastly, just one more question, sir. Margins for both. We've done a very good job of actually keeping margins stable, considering how input costs have increased. Is there more scope going ahead? Because if assuming input costs are subsiding with steel prices reducing and oil and gas prices reducing, would that be significant margin improvement then? Would we go above this 10% mark?

We have already given, it should be almost 400 crores. And for the current, for the standalone review, standalone unit, it should be almost 100 to 150 crores.

Okay, I'm done. 100 and 150. And so, uh, lastly, just 1 more question, sir. Margins for both. We've done a very good job of actually keeping margins table considering how, uh, input costs have increased is there more scope going ahead. Uh cuz if assuming in print costs are subsiding with a steel prices reducing and uh oil and gas prices reducing would that be significant margin Improvement?

Ram Agarwal: We also hope so, that when this turmoil gets down, that margin should increase, but it all depends on the future, because nobody can tell today.

Would we go about this 10%, man?

Dhananjay Bhagrodia: No, I know

Dhananjai Bagrodia: No, I know

Ram Agarwal: what will happen. Definitely margins should increase. You are very correct, that if this turmoil settles down, it will put to give a positive pressure to the results.

We also hope that when this turmoil settles down, the margin should increase, but it all depends on the future because nobody can predict today. Today morning, what is the situation and what will happen?

But should increase.

You are very clear that, if this turmoil settles down,

So, it will serve to give a positive pressure to the—

Dhananjay Bhagrodia: Okay. Would customers be okay with the mark, or would they also then accordingly cut rates for what they're buying price? Just I'm trying to understand how it works, let's say, going ahead, if your input costs are reducing.

Dhananjai Bagrodia: Okay. Would customers be okay with the mark, or would they also then accordingly cut rates for what they're buying price? Just I'm trying to understand how it works, let's say, going ahead, if your input costs are reducing.

Uh, with that.

Ram Agarwal: It's unpredictable.

Okay, and good. Uh, customers want any? Uh, customers would be okay with the—uh, or would they also then accordingly cut rates on what they're buying? That's just—I'm trying to understand how it works. Let's say going ahead, if your input costs are reducing...

Dhananjay Bhagrodia: Okay, sir. Sure. Thank you so much.

Dhananjai Bagrodia: Okay, sir. Sure. Thank you so much.

Ram Agarwal: Sure. Thank you so much.

Sure, thank you so much.

Operator: The next question comes from the line of Vikas with Serene Alpha. Please go ahead. Vikas, please go ahead with your question.

On the line, we have Vikas with Serene Alpha. Please go ahead.

[Analyst] (Serene Alpha): Hello, am I audible?

Vikas Desai: Hello, am I audible?

Please go ahead with your question.

Operator: Yes, Vikas.

Hello. Am I Audible?

[Analyst] (Serene Alpha): Sir, most of my question are answered, no question left from my side.

Vikas Desai: Sir, most of my question are answered, no question left from my side.

yes, because

Most of my questions are answered, so, uh, no questions left for myself.

Operator: Thank you. The next question comes from the line of Nishita with Sapphire Capitals. Please go ahead.

[Analyst] (Sapphire Capital): Yes. Thank you for the follow-up question. I just wanted to understand. You mentioned that on a consolidated basis, our margins are going to be range bound at 30% to 35% on gross margin level, right?

Nishita Shanklesha: Yes. Thank you for the follow-up question. I just wanted to understand. You mentioned that on a consolidated basis, our margins are going to be range bound at 30% to 35% on gross margin level, right?

Thank you. The next question comes from the line of Nishita with Safaya Capital. Please go ahead.

Um, yes uh, thank you for the follow-up question. So uh, I just wanted to understand, uh, you mentioned that on a Consolidated basis and mahans are going to be range bound uh, at 30 to 35% on gross, margin level, right?

Ram Agarwal: No, we are talking of the defense sector, where the EBITDA margins, we have told that it should be range bound 30% to 35%.

Oh this uh we are talking about the defense sector. Where the iita margins? We have told that it should be inbound 30 to 35%.

[Analyst] (Sapphire Capital): Okay. For defense. I just wanted to understand, like, 30% to 35% margin. In the last quarter also in defense, we had around 42% margin, and this quarter also, we did around 38%. Are you being conservative when you say that our defense margins are range bound between 30% to 35%? Can we do around 35% to 40% of margins on a sustainable basis?

Nishita Shanklesha: Okay. For defense. I just wanted to understand, like, 30% to 35% margin. In the last quarter also in defense, we had around 42% margin, and this quarter also, we did around 38%. Are you being conservative when you say that our defense margins are range bound between 30% to 35%? Can we do around 35% to 40% of margins on a sustainable basis?

Ram Agarwal: Management is also always conservative, and we like to be conservative. We will keep this as 30% to 35%, but definitely every quarter, we will like to improve it.

Okay, for different. So uh I just wanted to understand like uh 32 35% margin but in the last quarter. Also, in defense, we have around 42% margin and this quarter. Also, we did around 38%. So, uh, are you being conservative? When you say that our defense margins are range bound between 32. 35% can we do around 35 to 40% of margins on the sustainable basis?

Management is also always conservative, and we like to be conservative.

[Analyst] (Sapphire Capital): Okay. Understood. My next question is on, what is the current capacity for our defense shells?

Nishita Shanklesha: Okay. Understood. My next question is on, what is the current capacity for our defense shells?

So we will remain. We will keep this as 30 to 35, but definitely, every quarter we would like to improve it.

Okay, okay, understood. And, my next question is: What is the current capacity for our defense shell?

Ram Agarwal: 1,50,000 shells per annum.

[Analyst] (Sapphire Capital): I'm sorry. Can you repeat it?

Nishita Shanklesha: I'm sorry. Can you repeat it?

Like 50,000 shells per hour.

Ram Agarwal: 1,50,000 shells per annum.

[Analyst] (Sapphire Capital): 1,50,000 shells per annum. Okay. After the expansion that you are saying that is delayed, the expansion is delayed by how many months?

Nishita Shanklesha: 1,50,000 shells per annum. Okay. After the expansion that you are saying that is delayed, the expansion is delayed by how many months?

I'm sorry. Can you repeat it? 50,000 shells are enough.

Ram Agarwal: It is almost six to nine months it has been delayed.

Well, not 50,000 shells. Okay, okay. And after the expansion that you are saying is delayed, the expansion is delayed by how many months?

It is almost six to nine months. It has been delayed.

[Analyst] (Sapphire Capital): Okay. When do we expect it to come now? Like in H1 FY28 you mentioned, right?

Nishita Shanklesha: Okay. When do we expect it to come now? Like in H1 FY28 you mentioned, right?

Okay, so when do we expect it to come? Uh, now, like in HMSI, 2018 mentioned, right?

Ram Agarwal: We hope by the Q4 of this financial year, expansion should start.

Do you hope by Q4 of this financial year?

Expansion. Should we start?

Come on.

[Analyst] (Sapphire Capital): Commercialization will start by?

Nishita Shanklesha: Commercialization will start by?

Ram Agarwal: Commercialization will again take a year.

And commercialization will start by— Next question will again take a year.

[Analyst] (Sapphire Capital): By Q4 FY28, commercialization should start.

Nishita Shanklesha: By Q4 FY28, commercialization should start.

Ram Agarwal: Definitely.

[Analyst] (Sapphire Capital): Okay. Once the commercialization starts, what will be our capacity? Is it going to be 400,000 shells?

Nishita Shanklesha: Okay. Once the commercialization starts, what will be our capacity? Is it going to be 400,000 shells?

So by Q4 FY28, commercialization should definitely start.

Ram Agarwal: The plant capacity will be 400,000, the achievable capacity is always 90%. It should be almost 350,000 shells per annum.

Okay. And, uh, once the commercialization starts, what will be our capacity? Is it going to be 4 lakh, uh, self?

Yep. The planned capacity will go forward, but the achievable capacity is always 90%. So it should be almost 3 lakh 50 thousand shells per hour.

[Analyst] (Sapphire Capital): Okay. Understood. Thank you so much.

Nishita Shanklesha: Okay. Understood. Thank you so much.

Operator: The next question comes from the line of Harsh Vasa with SBICAP Securities Limited. Please go ahead.

Okay, okay. Understood. Thank you so much.

The next question comes from the line of Harsh Vasa with SBI Capital Securities.

Harsh Vasa [Research Analyst: First of all, congratulations, sir, on a good set of numbers, and thank you for the opportunity. My question was pertaining to the hydraulic tubes capacity utilization. What was the exit run rate in Q1? What was the capacity utilization for Q1 FY27?

Harsh Vasa: First of all, congratulations, sir, on a good set of numbers, and thank you for the opportunity. My question was pertaining to the hydraulic tubes capacity utilization. What was the exit run rate in Q1? What was the capacity utilization for Q1 FY27?

Please go ahead.

Ram Agarwal: This hydraulic tube capacity, now it has started ramping up. In this quarter, it has come to almost 60%, which was earlier 50%. This quarter, it has come to 60% to 65%. I hope in the coming quarters, it will be a rapid expansion in the percentage utilization.

First of all, congratulations sir. Uh on a good set of numbers and thank you for the opportunity. Uh so my question was pertaining to the hydraulic tubes capacity utilization. So what was the exact? Uh so what was the exact rate in 1 Q? Like what was the capacity in the utilization for 1 qf7?

Harsh Vasa [Research Analyst: Okay, sir. Thank you.

Harsh Vasa: Okay, sir. Thank you.

It's the hydraulic tube capacity. Now, it has started ramping up in this quarter. It has come to almost 60%, which was earlier 50%. This quarter, it has come to 60 to 65%, and I hope in the coming quarters there will be a rapid expansion—a rapid expansion in the percentage utilization.

Okay sir. Thank you.

Operator: The next question comes from the line of Shashank Kanoria with ICICI Securities. Please go ahead.

The next question comes from the line of Shashank Kanodia with ICICI Securities.

Shashank Kanoria: Yeah, good afternoon, sir. Sir, some time back we announced a merger of a promoter entity called Goodluck Green Energy. Can you please explain what is the swap ratio or what are the valuations at which it's being merged? Any financial details of that transaction?

Shashank Kanodia: Yeah, good afternoon, sir. Sir, some time back we announced a merger of a promoter entity called Goodluck Green Energy. Can you please explain what is the swap ratio or what are the valuations at which it's being merged? Any financial details of that transaction?

Please go ahead.

Ram Agarwal: Basically, we have appointed consultants and valuers. Once the report comes, we will let you know. We will share with you.

Yes. Good afternoon, sir. Sir, some time back we announced a merger of both entities called Green Energy. So can you please explain to us what is the swap ratio, or what are the valuations at which we should be merged? Any financial details of that transaction?

Uh, basically, we have appointed consultants, and

Shashank Kanoria: Okay. Secondly, sir, usually defense business is valued pretty high in terms of valuation multiple in market, right? Even your peers which are already there in the stock exchanges. What's the reason, you were well-poised to deliver in excess of INR 200 crores EBITDA next year, and your pre-money valuation at which you raised the money is roughly INR 1,800 odd crores, INR 1,850. What's the reason that we have sold a stake to such inexpensive valuations, and how do you believe that it will accrue value toward the mighty shareholders of Goodluck India, the listed entity?

Shashank Kanodia: Okay. Secondly, sir, usually defense business is valued pretty high in terms of valuation multiple in market, right? Even your peers which are already there in the stock exchanges. What's the reason, you were well-poised to deliver in excess of INR 200 crores EBITDA next year, and your pre-money valuation at which you raised the money is roughly INR 1,800 odd crores, INR 1,850. What's the reason that we have sold a stake to such inexpensive valuations, and how do you believe that it will accrue value toward the mighty shareholders of Goodluck India, the listed entity?

And valuers. So once the report comes, we will let you know; we will share it with you.

Supposed to deliver in excess of 200 plus of beta next year and your premium IPO premium valuation 1,850. So what's the reason that we have sold our stake at such inexpensive valuations, and how do you believe that it will accrue value towards the mighty shoulders of Goodluck India, the listed entity?

Ram Agarwal: Can you come again? I could not understand what you wanted to say.

Shashank Kanoria: Sir, defense businesses are usually valued at very high valuation multiple, let's say 20 times, 30 times, EBITDA. You are well-poised to deliver more than INR 200 crores of EBITDA next year in defense. That values the entity at roughly INR 5,000 crores of equity valuation. What's the reason that we have sold off the stake toward the external investors at such an inexpensive valuation of roughly INR 1,850 odd crores?

Shashank Kanodia: Sir, defense businesses are usually valued at very high valuation multiple, let's say 20 times, 30 times, EBITDA. You are well-poised to deliver more than INR 200 crores of EBITDA next year in defense. That values the entity at roughly INR 5,000 crores of equity valuation. What's the reason that we have sold off the stake toward the external investors at such an inexpensive valuation of roughly INR 1,850 odd crores?

Ram Agarwal: Sir, basically, what the management thinks, because defense is the area where lot of opportunities are there, but we have the limited funds. At the same time, we don't want to leverage our balance sheet. We have opted for this because there are too many targets in the future where we will be needing these friends, these investors. We have opted for this for the future expansion also.

Are usually valued at very high valuation multiples, let's say 20 times, 30 times EBITDA, right? You have well poised to deliver more than ₹200 crore next year in EBITDA. So, that values the entity at ₹5,000 crore of equity valuation. So, what's the reason that we have sold off the stake to external investors at such an inexpensive valuation of ₹1,850 crore or close?

So basically, what the management thinks is that, because defense is the area, we have a lot of—uh—a lot of opportunities out there.

But we have the limited funds at the same time, we don't want to leave with our balance sheet. So we have opted for this because there are too many. There are too many Targets in the future where this is uh where we will be needing our this uh, these friends are these investors. So we have opted for this

Shashank Kanoria: Sir, to the mighty shareholders, it seems like all the initial struggle or the risk are taken on the balance sheet of Goodluck India, where all the upsides have been given to the external investors.

Shashank Kanodia: Sir, to the mighty shareholders, it seems like all the initial struggle or the risk are taken on the balance sheet of Goodluck India, where all the upsides have been given to the external investors.

For the future expansion. Also.

To the mighty shoulders. It seems like all the initial struggle or the risks are taken on the balance sheet of Goodluck India. All the upsides have been given to the external investors.

Ram Agarwal: You-

Shashank Kanoria: This instantly will-

Shashank Kanodia: This instantly will-

Ram Agarwal: I appreciate your view, there are always different thoughts of the schools. Whatever people have advised, whatever investors have advised during this con call, we will keep it in mind for the future. Don't worry.

I appreciate your view, but there are always different sorts of schools.

Shashank Kanoria: Right. Sir, there have been three, four disagreements at your end or some articles, there has been increasing CapEx spend on the base business. There's a delay of six to nine months of a product which was already sold out in the market with a very huge export potential. There's a merger of a promoter entity with no valuations being shared with the shareholders. Now, stake sale of defense business to external investors at very inexpensive valuations, right? You guys coming from a pedigree of IITs with four decades of experience in constructing what you have, I think as a representative of mighty shareholders, we will not want some incompetent financial advisors to destroy value in the listed entity.

Shashank Kanodia: Right. Sir, there have been three, four disagreements at your end or some articles, there has been increasing CapEx spend on the base business. There's a delay of six to nine months of a product which was already sold out in the market with a very huge export potential. There's a merger of a promoter entity with no valuations being shared with the shareholders. Now, stake sale of defense business to external investors at very inexpensive valuations, right? You guys coming from a pedigree of IITs with four decades of experience in constructing what you have, I think as a representative of mighty shareholders, we will not want some incompetent financial advisors to destroy value in the listed entity.

So basically, whatever people have advised, whatever investors have advised during this contract, we will keep it in mind for the future. Don't worry.

Ram Agarwal: We will keep in mind, sir. Don't worry. We will keep in mind.

Because they have been 3 4, You know, uh, decisions at your end or some outcomes which uh, kind of, you know. Uh, because you know, they actually increasing capex. Spend on the base business. Uh, then there's a delay of 6 to 9 months of product, which was already sold out in the market, to be a very huge, you know, export potential. Then there's a merger of promote entity with no valuations. Being shared with the shareholders. And now, uh, 6 difference business, uh, to extend investors are very inexpensive valuations, right? So, you guys coming from a pedigree of iits before Decades of experience, in constructing what you have, you know? Uh, uh, I think as a, as a, as a representative of M shareholders, you know, we will not want, uh, some incompetent financial advisors to destroy value in the listed entity.

Shashank Kanoria: Thank you so much. Wish you all the best.

Shashank Kanodia: Thank you so much. Wish you all the best.

Did you keep it in mind? Don't worry. Can you keep it?

Thank you so much. We’ll show the list.

Operator: The next question comes from the line of Sachin Chopda with IL Management. Please go ahead.

Sachin Chopda: Yeah. Hi, sir. Good morning. Am I audible?

[Analyst 2]: Yeah. Hi, sir. Good morning. Am I audible?

The next question comes from the line of Sachin Chops from IEL. Management, please go ahead.

Operator: Yes, Sachin.

Yeah, hi s. Good morning.

Sachin Chopda: Hi. First off, congratulations for the good set of numbers. Sir, what was the volume for the defense artillery shells for this quarter?

[Analyst 2]: Hi. First off, congratulations for the good set of numbers. Sir, what was the volume for the defense artillery shells for this quarter?

Yes, sin.

Congratulations on the positive numbers. What was the testing volume? There were different changes and different cities for this quarter.

Ram Agarwal: Your voice is sounding Can you come again, please?

Sachin Chopda: Okay. Sir, the sales volume for the defense artillery shells for this quarter?

[Analyst 2]: Okay. Sir, the sales volume for the defense artillery shells for this quarter?

The voices are sounding. Can you come again? Okay, uh, just change the volume for the different cartridge for this quarter.

Ram Agarwal: Sir, your voice is not clear.

Operator: Sachin, are you using a hands-free?

Sachin Chopda: Yeah.

[Analyst 2]: Yeah.

Operator: If that's the case, please. Yes. You need to be on the handset mode, please.

Sachin Chopda: Okay. Hello?

[Analyst 2]: Okay. Hello?

Can you uh using are you using a hands-free? Or if that's the case, please? Yes. So you need to be on the handset mode, please.

Okay.

Operator: Yes, please go ahead.

Hello.

Sachin Chopda: Yeah. Actually, I was asking, what was the sales volume for the artillery shells for this quarter?

[Analyst 2]: Yeah. Actually, I was asking, what was the sales volume for the artillery shells for this quarter?

Ram Agarwal: We have given a turnover of almost INR 80 crores, no?

Yes, please go ahead. Yeah, so actually, I was asking, what was the sales volume for the artillery shells for this quarter?

Sachin Chopda: Yeah. Roughly INR 80 crores it was.

[Analyst 2]: Yeah. Roughly INR 80 crores it was.

Ram Agarwal: Roughly INR 80 crores. Yes. You want to know the number of shells?

Sachin Chopda: Number of shells. Yeah.

[Analyst 2]: Number of shells. Yeah.

Ram Agarwal: Number of shells. Yeah. That I will have to see. I don't remember. I will have to see. We will let you know.

Sachin Chopda: Okay. What was the utilization, if you have that thing?

[Analyst 2]: Okay. What was the utilization, if you have that thing?

Ram Agarwal: Utilization is almost 60% to 70%, but the exact figure, I don't remember right now. We will see.

So you want to know the number of shares. Number of shares. Yeah, that I will have to check. I don't remember, I will have to see and let you know. Okay? So what was the utilization, if you have that information?

Utilization.

Is almost.

To 70%.

Sachin Chopda: Okay. Got it, sir. Sir, on control level, we are expecting EBITDA margins to be roughly off around closely between 10% to 12% in near term, not more than that. Or we are seeing upside?

[Analyst 2]: Okay. Got it, sir. Sir, on control level, we are expecting EBITDA margins to be roughly off around closely between 10% to 12% in near term, not more than that. Or we are seeing upside?

But the exact figure we do not have; I don't remember, okay.

Got it. Got it, sir. Sit on the console level. So we are expecting like a beta margins to be roughly of around closely between 10 to 12%.

In your term, not more than that.

Ram Agarwal: This quarter also, our EBITDA per metric ton is INR 9,000 per metric ton.

this quarter also,

Sachin Chopda: Yeah.

[Analyst 2]: Yeah.

Ram Agarwal: It improved from the last quarter.

Ram Agarwal: The targets we have given, we are saying the top line should go by 15% to 20%. We are maintaining our earlier guidance as such.

This quarter also, our beta period is ₹9,000 per meter. So, you move from the last,

Ram Agarwal: The targets we have given, we are saying the top line should go by 15% to 20%. We are maintaining our earlier guidance as such.

Sachin Chopda: Got it. Sir, by any chance, sir, we are scheduling for the plant visit of the defense unit?

Uh, targets we have given, we are stating it. So, everything on the top line should go up by 15 to 20%. We are maintaining our earlier guidance as well.

Mhm.

[Analyst 2]: Got it. Sir, by any chance, sir, we are scheduling for the plant visit of the defense unit?

Got it, got it. Excellent. Uh, so by any chance, are we scheduling for the plant reservoir of the different unit?

Ram Agarwal: Sir, for that, you will have to contact our IR, and they can fix it because it has certain regulations.

Sachin Chopda: Okay

[Analyst 2]: Okay

Ram Agarwal: How it can be done. You please connect to our IR.

Sachin Chopda: Definitely, sir. Thank you and best of luck for this.

[Analyst 2]: Definitely, sir. Thank you and best of luck for this.

So for that, you will have to contact to our uh, this area and we can fix it because it is certain regulations. So when we, when we how it can be done but you please connect to our area.

Definitely sir.

Thank you, and best of luck for the future.

Operator: The next question comes from the line of Pratik Tavelker with Smiths. Please go ahead. Pratik, please go ahead with your question and kindly unmute your line in case if you are on mute.

The next question comes from the line of Pratik Arwith Smiths. Please go ahead.

Pratik, please go ahead with your question, and kindly unmute your line in case you are on mute.

Pratik Tavelker: Am I audible now, sir?

[Analyst] (Smiths): Am I audible now, sir?

Operator: Yes, Pratik.

Pratik Tavelker: Yeah. Sir, thanks for the opportunity, and congrats on a good set of numbers. In our last call, you have mentioned that 14% to 15% revenue growth in FY27. Are you maintaining that guidance? If also possible, give the breakup of volume and value growth, apart from defense. Yeah. Thank you. That is the first question from my side.

[Analyst] (Smiths): Yeah. Sir, thanks for the opportunity, and congrats on a good set of numbers. In our last call, you have mentioned that 14% to 15% revenue growth in FY27. Are you maintaining that guidance? If also possible, give the breakup of volume and value growth, apart from defense. Yeah. Thank you. That is the first question from my side.

Yes, pratik.

Ram Agarwal: We maintain our guidance that it should be 15% to 20%. As far as the volume this quarter, it has gone up by 9%. In the coming quarters, if the geopolitical conditions are set right, it will improve further in terms of volume.

Yeah, yeah, uh, so thanks for the opportunity and congrats on a good set of number sir in last. In our last call you have mentioned that 14, to 15% Revenue growth in Phi 27. So I use, uh, maintaining that, uh, guidance. And if also possible, uh, give the break up of, uh, volume and value growth, uh, apart from defense. Yeah. Thank you. That's the first question from my side.

To maintain our guidance, that it should be 15% to 20%.

As far as the volume this quarter, it has gone up by 9%. In the coming quarters, if the geopolitical conditions are set, right, it will improve further.

and in terms of volume,

Pratik Tavelker: Okay. My next question is on the, you have announced that the GI pipes, compression pipes, and infrastructure capacity addition of 40,000 to 45,000 metric ton during FY27. Can you please throw some color on that and progress of that? Yeah, that's it.

[Analyst] (Smiths): Okay. My next question is on the, you have announced that the GI pipes, compression pipes, and infrastructure capacity addition of 40,000 to 45,000 metric ton during FY27. Can you please throw some color on that and progress of that? Yeah, that's it.

And uh uh sir. My next question is on the you have uh announced that the GI pipe separation pipes and installation capacity of 14242 45,000 uh metric then uh during affect 27. So can you please throw some color on that and uh, progress of that? Yeah, that's it.

Ram Agarwal: You want to know about the?

Pratik Tavelker: GI pipes tubes capacity and compression tubes capacity you have announced in last quarter of 40,000 to 45,000 metric ton.

[Analyst] (Smiths): GI pipes tubes capacity and compression tubes capacity you have announced in last quarter of 40,000 to 45,000 metric ton.

So, you want to know about the—

GI pipes, tube capacity, and pressure tube capacity—you announced in the last quarter.

Ram Agarwal: 40,000 to 45,000, that capacity is being ramped up.

Of 40,000 to 45,000 metrics. And

Pratik Tavelker: Okay.

[Analyst] (Smiths): Okay.

Ram Agarwal: For the large diameter pipe, the capacity is being ramped up. Due to this West Asia crisis, it took some time, now it is coming on the path, and we hope in the coming quarters it will ramp up as per our expectation.

40% to 40% of that capacity is being read up.

Pratik Tavelker: Okay. Thank you. That's it.

[Analyst] (Smiths): Okay. Thank you. That's it.

For the last time, the capacity is being ramped up due to this, uh, waste crisis. It took some time, but now it is coming on the, uh, coming on the park, and we hope in the coming quarters it will ramp up, where, uh, it will end up as per our expectation.

Operator: The next question comes from the line of Vrushank, an individual investor. Please go ahead.

Okay, thank you. That's

[Company Representative] (Individual Investor): Hello? Yeah. Am I audible?

[Shareholder] (Private Investor): Hello? Yeah. Am I audible?

The next question comes from the line of Rank and Individual Investor. Please go ahead.

Operator: Yes, Vrushank.

Hello. Yeah. Am I Audible?

[Company Representative] (Individual Investor): Yeah. Actually, the question was a follow-up on the earlier participant only, on the valuation of the subsidiary that we have considered. Right now, what is happening is we are basically diluting 15% as shareholders of Goodluck India, as minority shareholders of Goodluck India, when the stake in the subsidiary is getting diluted by 15%. While I understand and appreciate that the advisors of the company have advised in favor of diluting the stake in the subsidiary, but if I look at it from a Goodluck India shareholder perspective, minority shareholder perspective, I would just request the management to provide a rationale on why a rights issue was not selected. If it was just a financial fundraise which we wanted to do, then it could have easily be done by a rights issue at Goodluck India level, right?

[Shareholder] (Private Investor): Yeah. Actually, the question was a follow-up on the earlier participant only, on the valuation of the subsidiary that we have considered. Right now, what is happening is we are basically diluting 15% as shareholders of Goodluck India, as minority shareholders of Goodluck India, when the stake in the subsidiary is getting diluted by 15%. While I understand and appreciate that the advisors of the company have advised in favor of diluting the stake in the subsidiary, but if I look at it from a Goodluck India shareholder perspective, minority shareholder perspective, I would just request the management to provide a rationale on why a rights issue was not selected. If it was just a financial fundraise which we wanted to do, then it could have easily be done by a rights issue at Goodluck India level, right?

Yes, rank.

Uh, yeah. So I actually, the question was the follow up on the uh, earlier participant only on the valuation of the uh, subsidiary that we have considered. So right now, what is happening is we are we are basically diluting 15% as shareholders of good luck in India. Uh, as minority shareholders or good luck. Yeah. And take in the subsidiary is getting diluted by 15%. So while I understand and appreciate that, uh, the advisor of the company had have advised advising favor of diluting, the stake in the subsidiary.

But if I look at it from a Goodluck India shareholder perspective, a minority shareholder perspective, I would just request the management to provide a rationale on why a rights issue was not selected.

[Company Representative] (Individual Investor): While I appreciate that the management must have financial consultants who would have advised, what was the rationale in not doing the rights issue and doing a stake sale at the subsidiary?

[Shareholder] (Private Investor): While I appreciate that the management must have financial consultants who would have advised, what was the rationale in not doing the rights issue and doing a stake sale at the subsidiary?

If it was just a financial, uh, fundraiser which we wanted to do, then it could have easily been done by our, right, at the Goodluck India level, right?

So while I appreciate that, the management must have financial consultants who would have advised what was the rationale, and not doing the right thing, and doing a state, uh, take sale at the subject area.

Ram Agarwal: The earlier participant also raised this question, I have already clarified. We will keep in mind while deciding. Our interest mainly for the shareholders is fine, and we will take care of that.

Participant, this is your question. As I have already clarified, we will keep that in mind while deciding.

[Company Representative] (Individual Investor): Yeah. Sir, that we understand, sir. This transaction has already happened, and now what is happening is, say, for example, the subsidiary becomes an INR 10,000 crore or an INR 20,000 crore company, then we end up diluting 15% right now, which effectively could mean that the shareholders of Goodluck India have diluted in favor of investors. If investors are bringing something on the table, then that is a separate issue and a separate valid point. Otherwise, if it's only a financial decision, then it does not go well with the minority shareholders of Goodluck India.

[Shareholder] (Private Investor): Yeah. Sir, that we understand, sir. This transaction has already happened, and now what is happening is, say, for example, the subsidiary becomes an INR 10,000 crore or an INR 20,000 crore company, then we end up diluting 15% right now, which effectively could mean that the shareholders of Goodluck India have diluted in favor of investors. If investors are bringing something on the table, then that is a separate issue and a separate valid point. Otherwise, if it's only a financial decision, then it does not go well with the minority shareholders of Goodluck India.

So, our interest, mainly for the shareholders, is fine, and we will take care of that.

Yeah, but sir, we understand that. But then this transaction has already happened. And now what is happening, if, say, for example, the subsidiary becomes a 10,000 or a 20,000 crore company, then we end up diluting 15% right now, which effectively could mean that the shareholders of Good Luck India have—

Ram Agarwal: I appreciate your view. We have diluted 10.5%.

Valid point. But otherwise, if it's only a financial decision, then, uh, I mean, uh, it does not go well with the minority shareholders. I would like...

[Company Representative] (Individual Investor): Right.

[Shareholder] (Private Investor): Right.

Ram Agarwal: Be rest assured there are many things on the plate. There are many miles to go, and our shareholder will be rewarded. You have just to wait. We will come out with many new things in the coming con calls or the coming communications. Be rest assured, we will take care of your concerns.

I appreciate your view. We have diluted 10.5%, but we showed them many things on the plate. There are many miles to go, and our shareholders will be rewarded.

Uh, it was just to wait. We—we have, we will come out with many new, many new things in the coming.

[Company Representative] (Individual Investor): Sure. Thank you, sir.

[Shareholder] (Private Investor): Sure. Thank you, sir.

On calls or the coming, Communications UVA scheduled, we will take care of your concern.

Sure. Thank you. Thank you, sir.

Operator: The next question comes from the line of Ronak Sanghvi with Nafa Asset Managers. Please go ahead.

Ronak Sanghvi: Hello. Can you give the split for EBITDA margin of ERFB and ERFP and M107? As the price is doubled, the cost also gets doubled, or what?

Ronak Singhvi: Hello. Can you give the split for EBITDA margin of ERFB and ERFP and M107? As the price is doubled, the cost also gets doubled, or what?

The next question comes from the line of Rono Svi with NAFA Asset Managers. Please go ahead.

Hello. So, uh, can you give me the split for a better margin of, uh, CFRB and ERP and M107?

Ram Agarwal: EBITDA margin is the same. EBITDA margin will remain the same.

As the price is doubled, the cost also gets doubled over.

Ronak Sanghvi: The production cost for both M107 and ERFB.

Ronak Singhvi: The production cost for both M107 and ERFB.

The same margin will remain the same.

So, the production cost for

Ram Agarwal: Are different.

Ronak Sanghvi: Hello?

Ronak Singhvi: Hello?

Both and 107 and trf.

Ram Agarwal: They are different.

Ronak Sanghvi: Different.

Ronak Singhvi: Different.

Ram Agarwal: For every product, the cost is different.

Ronak Sanghvi: What is the EBITDA margin?

Ronak Singhvi: What is the EBITDA margin?

Ram Agarwal: EBITDA margin, what guidance I have given 30% to 35%, I still hold my guidance for the EBITDA margin.

So what is the margin?

I have given 30 to 35%. I still hold my guidance for the...

Ronak Sanghvi: Okay. Thank you.

Ronak Singhvi: Okay. Thank you.

Okay, thank you.

Operator: The next question comes from the line of Mahima Gidwani with PhillipCapital PMS. Please go ahead.

Mahima Gidwani: Hello. Thanks for the opportunity. I have a question on the value-added product. Which products exactly are driving the growth in current quarter, specifically value-added products? With capacity utilization at around 98%, how much additional growth can come from increasing the share of these value-added products before the new GI conduit and front fork tube capacities come on stream? Because in our previous call, we had indicated that it would be coming live in next nine to 12 months.

The next question comes from the line of Mahima Gidwani with Philip Capital PMS. Please go ahead.

Ram Agarwal: Basically, capacity addition is going on only in our value-added sector, which encompasses your tubes, your precision tubes, your forgings, and infrastructure. What we had told last time for the GI tubes, these conduit tubes, this capacity and the front fork tube capacity, it is likely to come in next 6 months. Whatever capacity addition you will see or you are seeing, that will be in the value-added sector. Value-added, we are almost 60% we are already there. In the coming years, this will increase and the legacy business, it will get reduced due to the increase in the value-added business.

Hello. Uh, thanks for the opportunity. I have a question on the value added product. So, which products exactly are driving the uh, growth in current quarter, secondly, value added products and with capacity, utilization at around 98%, how much additional growth can come from, increasing the share of these cellular products before the new GI conduit and in front for few capacities, come on streets. Uh come on stream because you know previous call, we had indicated that it would be coming live in next or 9 to 12 months.

So basically capacity addition is going on only in our evaluated sector which encompasses your uh tubes uh your Precision tubes, your posing and infrastructure. So uh, what we had, we had told last time for the GI tubes, this, uh, collude tubes, this capacity and the confer to capacity, it is likely to come in next 6 months. So, whatever capacity addition, you will see or you are seeing that will be in the value added sector value added. We have almost

60%, we have already there.

And in the coming years.

This will increase, and the legendary business will get reduced due to the increase in the evaluated business.

Operator: Does that answer your question, Mahima?

Mahima Gidwani: Yes. Hello, am I audible?

Operator: Yes, now you are.

That's right. Answer your question? Uh, yes, yes, yes. Hello, Audible.

Mahima Gidwani: Okay. My second question is on defense side. I was going through the investor presentation. I see we have also received license for 120 mm, 130 mm, and 125 mm shells in addition to existing 155 mm. Will these new variations also be produced in our existing capacity or the new CapEx which will be coming live?

Yes. Now you are.

Okay. So my second question is on defense, right? So I was going through the investor presentation. I see we have also received licenses for 120 mm, 130 mm, and 125 mm, and then shells in addition to the existing 155 mm. So will these new variations also be produced in our existing capacity, or the new capacity which will be coming live?

Ram Agarwal: Basically, the world demand has converged to the tune of even 90% to 95% demand has converged to 155. Yes, the machine is capable from producing from 120 to 155, but normally the demand is for the 155.

Basically, the word demand has converged to the tune of even 90% to 95%. Demand has converged to 155.

So, here the machine is capable of producing from 120 to 155, but normally the demand is for 155.

Operator: Okay. Understood. Lastly, on aerospace capabilities, what exactly are we currently doing in aerospace capabilities and what would we be doing once the new capacity comes live?

Okay, okay. Understood. Lastly, on Aerospace capabilities, what exactly are we currently doing in Aerospace capabilities, and what would we be doing once the new capacity comes in?

Ram Agarwal: Basically, what we will be doing in the aerospace new capacity, it is because you will appreciate that India is going for C-295, India is going for AMCA, and for new Rafale Indian production. For that, an ecosystem is required. India is taking maximum parts from outside. Even HAL has to import, everybody. For that ecosystem to come, there are many new parts which we have not manufactured so far. We will be taking the parts which are commercially viable and which have a very good market share in this new requirement. In that aerospace, we will be putting a ring rolling mill. It will make the outer body for your space assets as well. There are thousands of parts for which this new machinery we will be capable of making.

Specifically, what?

Uh, because India, you, uh, you will appreciate that India is going for C295. India is going for M-Car and for new RL Indian production. So, for that, an ecosystem is required. India is taking maximum parts from outside. Even HAL has to import, everybody. So, for the project ecosystem to come, there are many new parts which we have not manufactured so far. So, we will be taking the parts which are commercially viable and which have a very good market share in this, uh, new requirement.

Thousands of parts for which this new machinery, we will be capable of doing.

Operator: Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to the management for the closing remarks.

Thank you, ladies and gentlemen. We will take that as the last question for today. I would now like to hand the conference over to the management for the closing remarks.

Ram Agarwal: We thank everybody, every shareholder, every investor who have shown interest in our con call. I will just like to clarify, as many people have asked. With regards to our plan on Goodluck Defence, we will do what is beneficial for all our shareholders. Give us some time to discuss with our board and key stakeholders, we will ensure what will work best for all our shareholders. As far as this Defence is concerned, we have lot of inquiries, enough for next 5 years. However, as a policy, we do not announce till we have technically and commercially clear order. This is the reason we have announced only 50,000 piece FIP order. Other. We will let you know as the order comes as per our specification. Thank you. Thanks for attending.

We thank you.

We thank you, everybody. Uh, where...

We thank everybody, every shareholder, every investor who has shown interest in our fund. With regards from, I would just like to clarify as many, many people have asked.

With regards to our plan on Goodluck defense, we will do what is beneficial for all our shareholders. Give us some time to discuss with our board and please stakeholders. We will ensure whatever works best for all our shareholders. As far as this defense is concerned, we have a lot of inquiries—enough for the next 5 years. However, as a policy, we do not announce until we have a technically and commercially cleared order. This is the reason we have announced only...

50,000 pieces, FIB order, others. We will let you know as the order comes in, as per our specification.

Thank you. Thanks for attending.

Operator: Thank you, sir. Ladies and gentlemen, on behalf of Goodluck India Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.

Thank you, sir. Ladies and gentlemen, on behalf of Goodluck India Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.

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