Q1 2027 Isgec Heavy Engineering Ltd Earnings Call

August 12, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to Isgec Heavy Engineering Limited Q1 FY27 earnings conference call. As a reminder, all participants' 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 Isgec Heavy Engineering Limited Q1 FY27 earnings conference call. 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. Mahesh Patil from ICICI Securities. 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. Mahesh Patil from ICICI Securities. Thank you, and over to you, sir.

Speaker #2: Sir, thank you. Good afternoon to all. On behalf of ICICI Securities, I welcome you all to the Q1 FY27 earnings call of Isgec Heavy Engineering Limited.

Mahesh Patil: Thank you. Good afternoon to all. On behalf of ICICI Securities, I welcome you all to the Q1 FY27 earnings call of Isgec Heavy Engineering Limited. Today, we have with us from the management, Mr. Aditya Puri, Managing Director, and Mr. Kishore Chatnani, Joint Managing Director and CFO. We will begin with the opening remarks from management, which will be followed by Q&A. Thank you, and over to you, sir.

Speaker #2: Today, we have with us from the management Mr. Aditya Puri, Managing Director, and Mr. Kishore Cheknami, Joint Managing Director and CFO. We will begin with our opening remarks from management, which will be followed by a Q&A session.

Speaker #2: Thank you. And over to you, sir.

Speaker #3: Thank you. Thank you, Mahesh. Good afternoon, everyone, and thank you for joining us today. We appreciate your time, your continued interest in our company, and the trust you place in us as we continue to build for the long term.

Aditya Puri: Thank you, Mahesh. Good afternoon, everyone, and thank you for joining us today. We appreciate your time, your continued interest in our company, and the trust you place in us as we continue to build for the long term. We value these conversations because they allow us not only to discuss our performance but also to explain how we are executing our strategy, responding to the market environment, and positioning the business for sustainable growth. Q1 FY2027 performance, standalone financial results. We delivered strong growth this quarter with the total income up 51% and PBT up 10% year-on-year. The total income for the quarter is INR 1,585 crores. Income in the industrial project segment is higher due to improved order execution in line with project execution schedules.

Speaker #3: We value these conversations because they allow us not only to discuss our performance, but also to explain how we are executing our strategy, responding to the market environment, and positioning the business for sustainable growth.

Speaker #3: Q1, FY2027 performance. Standalone financial results. We delivered strong growth this quarter, with total income up 51% and EBITDA up 10% year-on-year.

Speaker #3: The total income for the quarter is Rs. 1,585 crore. Income in the industrial project segment is higher due to improved order execution in line with project execution schedules.

Speaker #3: In the manufacturing segment, income is higher due to the dispatch of a large order from a U.S. customer, which the customer had put on hold for some time.

Aditya Puri: In the manufacturing segment, income is higher due to the dispatch of a large order from a US customer, which the customer had put on hold for some time. Export revenue during the quarter is INR 385 crores, about 25% of the total revenue, up from 15% in Q1 FY26. We expect this increased level of exports to continue. The EBIT has also grown by 15% to INR 157 crores. The profit before tax of INR 123 crores is 10% higher than INR 112 crores for the quarter ended June 2025, which reflects higher operational profit. You may recall that Q1 FY2026 included high other income due to forex fluctuation.

Speaker #3: Export revenue during the quarter is Rs 385 crore, about 25% of the total revenue, up from 15% in Q1 FY26. We expect this increased level of exports to continue.

Speaker #3: The EBITDA has also grown by 15% to Rs 157 crore. The profit before tax of Rs 123 crore is 10% higher than Rs—.

Speaker #3: 112 crores for the quarter ended June 2025, which reflects higher operational profit. You may recall that Q1 FY2026 included high other income due to forex fluctuation.

Speaker #3: On the margin front, the manufacturing EBIT margins continue to be 12%, and within the 12% to 13% range guided by us. The EBIT margin for the projects business is 5.25%, better than it has been for the last few years.

Aditya Puri: On the margin front, the manufacturing EBIT margins continue to be 12% and within the 12% to 13% range guided by us, and the EBIT margin for the project business is 5.25%, better than it has been for the last few years. Total order booking for the first quarter is INR 2,323 crores, and the total standalone orders in hand as on 30 June 2026 are very good at INR 7,727 crores. Order execution is proceeding smoothly in both manufacturing and the industrial projects business. The domestic market is strong across almost all our product lines, and we have a healthy level of export inquiries from customers across various industries. Our persistent efforts and focus on increasing export business have shown good results. A number of export orders have been booked from customers recently in Africa and in Latin America. The export inquiry base is very healthy.

Speaker #3: Total order booking for the first quarter is Rs. 2,323 crore, and the total standalone orders on hand as on June 30, 2026, are very good at Rs.

Speaker #3: ₹7,727 crores. Order execution is proceeding smoothly in both manufacturing and the industrial projects business. The domestic market is strong across almost all our product lines, and we have a healthy level of export inquiries from customers across various industries.

Speaker #3: Our persistent efforts and focus on increasing export business have shown good results. A number of export orders have been booked from customers recently in Africa and in Latin America. The export inquiry base is very healthy.

Speaker #3: The company's net fund position has improved by Rs. 140 crores during the quarter, and net borrowings are substantially down to Rs. 240 crores compared to Rs.

Aditya Puri: The company's net fund position has improved by INR 140 crores during the quarter, and net borrowings are substantially down to INR 240 crores compared to INR 381 crores as on 31 March 2026 and INR 408 crores as on 30 June 2025. Impact of geopolitical tensions on our business. Current geopolitical developments have not affected existing order bookings. Export and import logistics costs have increased and transit times have also lengthened. The cost of some materials which has risen due to war are having a small adverse effect on profitability. Commodity prices, particularly steel, copper, aluminum, and nickel, have more or less stabilized, though they remain slightly above pre-war levels. Shipping and logistics for exports and imports are experiencing delays, reduced availability of ships and containers, sharply elevated freight rates, and opportunistic pricing by shipping companies.

Speaker #3: Rs. 381 crore as on 31st March 2026, and Rs. 408 crore as on 30th June 2025. Impact of geopolitical tensions on our business: current geopolitical developments have not affected existing order bookings.

Speaker #3: Export and import logistics costs have increased, and transit times have also lengthened. The cost of some materials, which have risen due to the war, is having a small adverse effect on profitability.

Speaker #3: Commodity prices, particularly steel, copper, aluminum, and nickel, have more or less stabilized, though they remain slightly above pre-war levels. Shipping and logistics for exports and imports are experiencing delays, reduced availability of ships and containers, sharply elevated freight rates, and opportunistic pricing by shipping companies.

Speaker #3: There were no significant supply disruptions due to geopolitical situations during April to July 2026. Most of the increased costs are expected to be absorbed through normal contingency provisions.

Aditya Puri: There were no significant supply disruptions to the geopolitical situation during April to July 2026. Most of the increased costs are expected to be absorbed through normal contingency provisions. Consolidated financial highlights. The consolidated orders in hand as on 30 June 2026 amounts to INR 8,958 crores. The total income for the quarter ended June 2026 is INR 1,993 crores, which is about 45% higher than the INR 1,374 crores for the quarter ending June 2025. Revenue has been higher during the quarter in Isgec standalone and Isgec Hitachi Zosen but lower in Saraswati Sugar Mills. Isgec Hitachi Zosen is doing well with higher revenues and good orders in hand of INR 889 crores. Saraswati Sugar Mills had lower cane availability last year, resulting in lower production. We are working on various steps to improve cane availability next season.

Speaker #3: Consolidated financial highlights. The consolidated orders in hand as on 30th June 2026 amount to Rs. 8,958 crores. The total income for the quarter ended June 2026 is Rs.

Speaker #3: ₹1,993 crores, which is about 45% higher than the ₹1,374 crores for the quarter ended June 2025. Revenue has been higher during the quarter in Isgec Standalone and Isgec Hitachi Zosen, but lower in Saraswati Sugar Mills.

Speaker #3: Isgec Hitachi Zosen is doing well, with higher revenues and good orders in hand of Rs 889 crore. Saraswati Sugar Mills had lower cane availability last year, resulting in lower production.

Speaker #3: We are working on various steps to improve cane availability next season. The consolidated EBITDA for the quarter is Rs 137 crore, almost the same as the quarter ended June 2025.

Aditya Puri: The consolidated EBITDA for the quarter is INR 137 crores, almost same as the quarter ended June 2025. The consolidated profit before tax of INR 53 crores is 18% higher than the INR 45 crores restated for the quarter ended June 2025. You would recall that in March 2026, we had shifted the accounting of the Philippines business to continuing operations from the earlier classification as held for sale and discontinued operations. This has also required us to restate the financial results for the quarter ending June 2025. Let me briefly outline the key reason for the reduction in the consolidated profit before tax. The key reason for the reduction in the consolidated profit before tax compared to the standalone profit before tax is the loss from the ethanol plant in the Philippines.

Speaker #3: The consolidated profit before tax of Rs. 53 crores is 18% higher than the Rs. 45 crores restated for the quarter ended June 2025. You would recall that in March 2026, we had shifted the accounting of the Philippines business to continuing operations, from the earlier classification as health of sale.

Speaker #3: And discontinued operations. This has also required us to restate the financial results for the quarter ended June 2025. Now, let me briefly outline the key reason for the reduction in the consolidated profit before tax.

Speaker #3: The key reason for the reduction in the consolidated profit before tax compared to the standalone profit before tax is the loss from the ethanol plant in the Philippines.

Speaker #3: As you know, the ethanol plant started commercial production for the current sugar season on December 17, 2025, using sugarcane as feedstock, and concluded sugarcane crushing on April 20, 2026.

Aditya Puri: As you know, the ethanol plant started commercial production for the current sugar season on 17 December 2025, using sugarcane as feedstock, and concluded sugarcane crushing on 20 April 2026. Thereafter, the plant has been operating on molasses as feedstock. The plant has been running at about 65%-70% capacity utilization, and ethanol sales are going smoothly. During the quarter, the segment incurred a loss of INR 83 crores, mainly INR 37 crores attributable to depreciation, INR 20 crores attributable to interest, and about INR 10 crores attributable to forex fluctuations. The balance is fixed costs, which could not be fully recovered. The plant is presently running at about 65% capacity, and the current quarter is expected to be better. The consolidated net borrowings have reduced by INR 170 crores during the quarter.

Speaker #3: Thereafter, the plant has been operating on molasses as feedstock. The plant has been running at about 65 to 70 percent capacity utilization, and ethanol sales are going smoothly.

Speaker #3: During the quarter, this segment incurred a loss of Rs. 83 crores—mainly, Rs. 37 crores attributable to depreciation, Rs. 20 crores attributable to interest, and about Rs.

Speaker #3: 10 crores are attributable to forex fluctuations. The balance is fixed costs, which could not be fully recovered. The plant is presently running at about 65% capacity, and the current quarter is expected to be better.

Speaker #3: The consolidated net borrowings have reduced by Rs. 170 crore during the quarter. Net borrowings have decreased to Rs. 304 crore as on 30th June 2026, compared with Rs.

Aditya Puri: Net borrowing has decreased to INR 304 crores as on 30 June 2026, compared with INR 476 crores as on 31 March 2026, and INR 832 crores on 30 June 2025. I will now talk about the ongoing expansion of capacity at our manufacturing plants. As already informed, we are investing to add manufacturing capacity across most of our manufacturing product lines. This includes presses in machine building at the new plant coming up in Bhadrauli in Haryana, the new facility to manufacture skids and modules coming up in our SEZ plot at Dahej in Gujarat, and the investment in capacity expansion and machining facilities at both our casting factories. The tubing and piping shops at Ratangarh, and the standard mechanical press factory at Bawal. All these are running largely on schedule, and some of the new production facilities will be progressively completed this year.

Speaker #3: Rs. 476 crores as on 31 March 2026, and Rs. 832 crores on 30 June 2025. I will now talk about the ongoing expansion of capacity at our manufacturing plants.

Speaker #3: As already informed, we are investing to add manufacturing capacity across most of our manufacturing product lines. This includes presses and machine building at the new plant coming up in Bharatoli, Haryana; the new facility to manufacture skids and modules coming up in our SCZ plot at Dahej in Gujarat; and the investment in capacity expansion and machining facilities at both our casting factories.

Speaker #3: The tubing and piping shops at Rathangar, and the standard mechanical press factory at Babal—all these are running largely on schedule, and some of the new production facilities will be progressively completed this year.

Speaker #3: We are expecting the additional production to contribute to this year's manufacturing segment revenue. FY 2027 Outlook Standalone: Looking ahead, on a standalone basis, we expect FY 2027 revenue to increase by 10 to 12 percent.

Aditya Puri: We are expecting the additional production to contribute to this year's manufacturing segment revenue. FY 2027 outlook standalone. Looking ahead on a standalone basis, we expect FY 2027 revenue to increase by 10% to 12%. Margins on the manufacturing business should continue in the range of 12% to 13%, and in the projects business should improve slightly within the 5% to 6% range. To give more thrust to high potential services business, a new division has been created within the industrial projects business, named the Global Industrial Services and Solutions Division. This division will undertake work relating to operations and maintenance, retrofit and modernization, services, spare, and digitization. Looking ahead, the inquiry pipeline and the order booking outlook remains strong in both domestic and export markets. The weaker Indian rupee should support improved realizations on future export orders.

Speaker #3: Margins on the manufacturing business should continue in the range of 12 to 13 percent, and the project's business should improve slightly within the 5 to 6 percent range.

Speaker #3: To give more thrust to high-potential services businesses, a new division has been created within the Industrial Projects business, named the Global Industrial Services and Solutions Division.

Speaker #3: This division will undertake work relating to operations and maintenance, retrofit and modernization, services, spares, and digitization. Looking ahead, the inquiry pipeline and the order booking outlook remain strong in both domestic and export markets.

Speaker #3: The weaker Indian Rupee should support improved realizations on future export orders. We recognize that the broader environment may continue to present both uncertainties and opportunities.

Aditya Puri: We recognize that the broader environment may continue to present both uncertainties and opportunities. We are taking steps to mitigate the risks and convert the opportunities into tangible benefits. Thank you again for joining us. Let us now begin with the question and answer session.

Speaker #3: We are taking steps to mitigate the risks and convert the opportunities into tangible benefits. Thank you again for joining us. Let us now begin with the question and answer session.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and 1 on the touchtone telephone.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 is from the line of Rehan from Coherent Wealth. Please proceed.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rehan from Coherent Wealth.

Speaker #1: Please proceed.

[Analyst] (Coherent Wealth): Hi, am I audible?

Rehan Laljee: Hi, am I audible?

Speaker #2: Hi. Am I audible?

Speaker #3: Yes.

Aditya Puri: Yes.

Speaker #1: Yes, sir.

Operator: Yes, sir.

Speaker #3: Yes.

Speaker #2: Thank you. Thank you for taking my question. Pardon me, I have some basic questions because I'm new to the business. I just wanted to understand the reason for the conservative growth guidance that the management has provided, despite such good execution consistently in recent times.

[Analyst] (Coherent Wealth): Thank you. Thank you for taking my question. Pardon me, I have some basic questions because I am new to the business. I just wanted to understand the reason for the conservative growth guidance that the management has provided despite such good execution consistently in the recent times. With the legacy order book ending, with new orders coming on stream at higher realization, any reason to be at a 10% to 12% kind of top-line guidance that you have been giving, sir?

Rehan Laljee: Thank you. Thank you for taking my question. Pardon me, I have some basic questions because I am new to the business. I just wanted to understand the reason for the conservative growth guidance that the management has provided despite such good execution consistently in the recent times. With the legacy order book ending, with new orders coming on stream at higher realization, any reason to be at a 10% to 12% kind of top-line guidance that you have been giving, sir?

Speaker #2: And with the new orders, the legacy order book ending, and new orders coming on stream at higher realizations, is there any reason to be at a 10–12% kind of top-line guidance that you've been giving, sir?

Speaker #3: So, the order book, I agree, has improved substantially, but a good part of these orders—the execution is going to carry forward to the next financial year.

Aditya Puri: The order book, I agree, has improved substantially. But a good part of these orders, the execution is going to carry forward to the next financial year. That is the reason why we are talking about a 10% to 12% growth in the top line.

Speaker #3: So that is the reason why we are talking about a 10 to 12 percent growth in the top line.

Speaker #2: So, kind of like-to-like basis, after restating, you've still done about 46 percent growth on a top-line basis at a control level.

[Analyst] (Coherent Wealth): On a like-to-like basis, after restating, you have still done about 46% kind of growth at a top-line basis on a console level. What would be your broad run rate over the next two, three quarters? How would the commodities help you in a way, because you would also have some inventory and the realization would also add to the top line. How are you looking at it from a console level basis?

Rehan Laljee: On a like-to-like basis, after restating, you have still done about 46% kind of growth at a top-line basis on a console level. What would be your broad run rate over the next two, three quarters? How would the commodities help you in a way, because you would also have some inventory and the realization would also add to the top line. How are you looking at it from a console level basis?

Speaker #2: So what would be your broad run rate over the next two, three quarters, and how did the commodities help you in a way? Because you'd also have some inventory and the realizations would also add to the top line.

Speaker #2: So, how are you looking at it from a console-level basis?

Speaker #3: So, if you're talking about the quarterly run rate—so, annual 10%, 10%, 10% to 12% that we have mentioned—it is going to be similar.

Kishore Chatnani: If you are talking about the quarterly run rates,

[Analyst] (Coherent Wealth): Yes, sir.

Rehan Laljee: Yes, sir.

Kishore Chatnani: Annual 10% to 12% that we have mentioned. It is going to be similar. In the next quarter, this quarter, ongoing quarter, July to September, I am expecting the projects business to continue at around the same level, about INR 1,000 crores or so. The manufacturing segment in the standalone, that is also expected to be at the same level. This particular quarter was helped by one order which got dispatched, but the next quarter should be at the same level. Mr. Aditya Puri mentioned about manufacturing capacities coming online progressively.

Speaker #3: I mean, for the next quarter—that is, the ongoing quarter from July to September—I am expecting the Projects business to continue at around the same level, about ₹1,000 crore or so.

Speaker #3: The manufacturing segment in the standalone is also expected to be at the same level. This particular quarter was helped by one order, which got dispatched, but the next quarter should be at the same level.

Speaker #3: You know, Mr. Puri mentioned about manufacturing capacities coming online progressively, so that will certainly be helping. Is Hitachi also doing better than last year?

[Analyst] (Coherent Wealth): Yeah.

Rehan Laljee: Yeah.

Kishore Chatnani: That will certainly be helping. Isgec Hitachi Zosen is doing better than last year. It will do about 10% better than last year.

Speaker #3: It will do about 10 percent better than last year. Last year, it did about 670 crores. This year, it will be doing 10 percent better.

[Analyst] (Coherent Wealth): Right.

Rehan Laljee: Right.

Kishore Chatnani: Last year it did about INR 670 crore. This year it will be doing 10% better, and its profits will also be about 10% better.

Speaker #3: And its profits will also be about 10% better. The Saraswati Sugar Mills, so we had a season last year. Because of untimely rainfall, and because of certain agro-climatic reasons, there was less cane available to us.

[Analyst] (Coherent Wealth): Right.

Rehan Laljee: Right.

Kishore Chatnani: The Saraswati Sugar Mills. We had a season last year because of untimely rainfall, because of certain agro climatic reasons, there was less cane available to us.

Speaker #3: So Saraswati Sugar Mills actually produced much less sugar. So Saraswati Sugar Mills' revenue is going to be down. These are the two major subsidiaries, you know, under our under these consolidated companies.

Kishore Chatnani: Saraswati Sugar Mills actually produced much less sugar.

Kishore Chatnani: Saraswati Sugar Mills revenue is going to be down.

Kishore Chatnani: These are the two major subsidiaries under these consolidated companies. The others are certainly there. Eagle Press is doing fine, but as you know, it is only about INR 150 crores a year. Isgec Titan Metal Fabricators is doing fine. It is also going to be doing about INR 150 crores or so. Amongst the subsidiaries, Isgec Hitachi Zosen is going to do better, and Saraswati Sugar Mills is going to do lesser. You talked about inventories. We do not normally carry inventories. As you know, whatever we make is engineered to order, designed to order, manufactured to order, or as a project to deliver to order. What we buy is largely for the specific orders. We do not carry stock of different items, except in the case of sugar. Sugar prices have gone up substantially.

Speaker #3: So the others are certainly there. Wheel Press is doing fine, but as you know, it's only about ₹150 crore in a year. Is the Tile Metals doing fine?

Speaker #3: It's about, it's also going to be doing about 150 crores or so. So, is Hitachi, amongst the subsidiaries, is Hitachi going to do better?

Speaker #3: And Saraswati Sugar Mills is going to do less. If you talk about inventories, we don't normally carry inventories. As you know, whatever we make is engineered to order, designed to order, manufactured to order.

Speaker #3: Or as a project delivered to order. So what we buy is largely for the specific orders. We don't carry stock of different items, except in the case of sugar. Sugar prices have gone up substantially.

Speaker #3: So in sugar, there is some amount of profit, which is actually coming out of the inventory, because there's no manufacturing happening in this next two next there will be manufacturing will start in November, but until then, there is no manufacturing happening.

Kishore Chatnani: In sugar, there is some amount of profit which is actually coming out of the inventory because there is no manufacturing happening in this next two. Manufacturing will start in November, but until then, there is no manufacturing happening. Otherwise, because of inventories, there is no special gain.

Speaker #3: But otherwise, because of inventories, there's no special gain. And I think I need to answer your questions.

[Analyst] (Coherent Wealth): Thank you for the.

Rehan Laljee: Thank you for the.

Kishore Chatnani: I think I answered your question.

Speaker #2: Yes, sir. Thank you for the detailed explanation. Just on the same lines, if I can ask, if I may ask, in Q1, I think you did about 800 approx crores of top line from manufacturing.

[Analyst] (Coherent Wealth): Yes, sir. Thank you for the detailed explanation. Just on the same lines, if I may ask, in Q1, I think you did about INR 800 approx crore of top line from manufacturing, the manufacturing segment. What would you attribute as a steady state for us as? I will not hold you to it, but what would Mr. Puri or you give as a steady state run rate for FY 2027?

Rehan Laljee: Yes, sir. Thank you for the detailed explanation. Just on the same lines, if I may ask, in Q1, I think you did about INR 800 approx crore of top line from manufacturing, the manufacturing segment. What would you attribute as a steady state for us as? I will not hold you to it, but what would Mr. Puri or you give as a steady state run rate for FY 2027?

Speaker #2: The manufacturing segment. What would you attribute as a steady state for us? I know you—I will not hold you to it, but what would Mr. Puri or you give as a steady state run rate for FY20?

Kishore Chatnani: You are looking at the consolidated numbers, I can see.

Speaker #3: So you're looking at the consolidated numbers, I can see. So that includes Isgec Heavy Engineering, the manufacturing portion of Isgec Heavy Engineering.

[Analyst] (Coherent Wealth): Yes.

Rehan Laljee: Yes.

Kishore Chatnani: That includes Isgec Heavy Engineering, the manufacturing portion of Isgec Heavy Engineering.

Speaker #2: Correct.

[Analyst] (Coherent Wealth): Correct.

Rehan Laljee: Correct.

Speaker #3: It also includes Isgec Hitachi and Eagle Press.

Kishore Chatnani: It also includes Isgec Hitachi Zosen and Eagle Press.

Speaker #2: Correct. Correct.

[Analyst] (Coherent Wealth): Correct.

Rehan Laljee: Correct.

Speaker #3: And Isgec title. So, I would expect it to be—so this is looking like 800 crores. It should certainly be 750 crores plus.

Kishore Chatnani: And Isgec Titan. I would expect it to be, this is looking like INR 800 crore.

[Analyst] (Coherent Wealth): Right.

Rehan Laljee: Right.

Kishore Chatnani: It should be certainly INR 750 crore plus.

Speaker #2: Okay. So the large. Order which you the large order you mentioned, what was that size? You mentioned there was a large order in Q1.

[Analyst] (Coherent Wealth): Okay. The large order you mentioned, what was that size? You mentioned there was a large order in Q1.

Rehan Laljee: Okay. The large order you mentioned, what was that size? You mentioned there was a large order in Q1.

Speaker #3: Yeah, that was about ₹130 crore.

Kishore Chatnani: That was about INR 130 crore.

Speaker #2: Okay, thank you so much. Thank you.

[Analyst] (Coherent Wealth): Okay. Thank you so much.

Rehan Laljee: Okay. Thank you so much.

Speaker #3: So that was on hold for the customers' reasons. We had paid the customer had paid us 95 percent of the money to two or three quarters ago.

Kishore Chatnani: That was on hold for the customer's reasons.

[Analyst] (Coherent Wealth): Okay.

Rehan Laljee: Okay.

Kishore Chatnani: The customer had paid us 95% of the money two or three quarters ago.

Speaker #3: But we're not ready to lift it because his project site was not ready. From time to time, we explain this. Finally, it's been dispatched.

[Analyst] (Coherent Wealth): Okay.

Rehan Laljee: Okay.

Kishore Chatnani: We are not ready to lift it because his project site was not ready.

[Analyst] (Coherent Wealth): Oh, okay.

Rehan Laljee: Oh, okay.

Kishore Chatnani: Finally, it has been dispatched.

Speaker #2: Okay, so just to sum up, the manufacturing bit could see a 750 steady-state run rate, consolidated.

[Analyst] (Coherent Wealth): Okay. Just to sum up, the manufacturing bit could see a 750 steady state run rate consolidated.

Rehan Laljee: Okay. Just to sum up, the manufacturing bit could see a 750 steady state run rate consolidated.

Speaker #3: For the next quarter. For the next quarter. Later on, I would expect it to increase a bit.

Kishore Chatnani: For the next quarter.

[Analyst] (Coherent Wealth): Yeah.

Rehan Laljee: Yeah.

Kishore Chatnani: For the next quarter. Later on, I would expect it to increase a bit.

Speaker #2: Okay. Thank you so much.

[Analyst] (Coherent Wealth): Okay. Thank you so much.

Rehan Laljee: Okay. Thank you so much.

Speaker #1: Thank you. A reminder to all participants: anyone who wishes to ask a question may press star M1 on their touch-tone telephone. I repeat, anyone who wishes to ask a question may press star M1 on their touch-tone telephone.

Operator: Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touch-tone telephone. I repeat, anyone who wishes to ask a question may press star and one on your touch-tone telephone. The next question is from the line of Manish Goyal from Thinqwise Wealth Managers LLP. Please proceed.

Speaker #1: The next question is from the line of Manish Goyal from Thinkwise Wealth Managers LLP. Please proceed.

Manish Goyal: Yeah. Thank you so much, sir. Sorry, I would like to continue on the guidance, because ideally, if we were to look at 10% to 12% growth, sir, incremental revenue, in the last call also, you said large part of INR 500 crores incremental will come from manufacturing. In Q1 itself, sir, we have done INR 570 crores of incremental revenue, which probably takes care of our entire growth. And you did allude that we will at least maintain INR 750 crores of manufacturing revenue, and Hitachi Zosen will also do well. And new facilities are coming up, additional capacities available for dispatches maybe in H2. Maybe you can correct that. So, sir, why are we a bit more conservative?

Speaker #4: Yeah, thank you so much, sir. Sorry, I would like to continue on the guidance, because ideally, if we were to look at 10 to 12 percent growth, sir, incremental revenue—in the last call also, you said a large part of the ₹500 crore incremental will come from manufacturing.

Speaker #4: In the first quarter itself, sir, we have achieved ₹570 crores of incremental revenue, which probably takes care of our entire year's growth. We did allude that we'll at least maintain ₹750 crores of manufacturing revenue, and Hitachi Wilson will also do well.

Speaker #4: So, I'm not—and new facilities are coming up, additional capacity is available for dispatches, maybe in half to—maybe you can correct that. So, sir, why are we a bit more conservative?

Kishore Chatnani: Well, Manishji, the way you are describing, we would also expect it to be slightly higher. It is better to give a conservative guidance and meet it rather than give an aggressive guidance and be iffy about it. Yes, we can hope for better, but this is a number that we would like to state actually, 10% to 12%.

Speaker #3: Well, Manish ji, the way you are describing it, we would also expect it to be slightly higher, but it's better to give a conservative guidance and meet it rather than, you know, give an optimistic guidance and then be iffy about it.

Speaker #3: So yes, we can hope hope for better, but this is what we would this is the number that we would like to state actually, 10 to 12 percent.

Speaker #4: Okay. And Hitachi—you said 10 percent revenue growth, and you said profits would also be higher by 10 percent. So you are looking at absolute profit, because last year Hitachi Wilson had done very well on the margin front.

Manish Goyal: Okay. Hitachi, you said 10% revenue growth, and you said profits will be also higher by 10%.

Kishore Chatnani: Yes.

Manish Goyal: You are looking at absolute profit, because last year Isgec Hitachi Zosen had done very well on the margin front. We believe that the margins will be holding on in Isgec Hitachi Zosen.

Speaker #4: So, we believe that the margins will be holding on in Hitachi's system.

Kishore Chatnani: That is right. You are right.

Speaker #3: That's right. You're right.

Speaker #4: Yeah. Okay. Wonderful. And sir, on the various expansions, what Misha Adil said, Puri was referring to in the opening remarks, everything is on track to what I probably recollect is that we were probably looking to invest around total investment of 700 to 800 crores over a two to three years time frame.

Manish Goyal: Yeah. Okay. Wonderful. And sir, on the various expansions, what Mr. Aditya Puri was referring to in the opening remarks, everything is on track. So what I probably recollect is that we were probably looking to invest around total investment of INR 700 to 800 crores over a two to three years time frame. Just to let you expect all the expansions program to complete in the current year, and what kind of incremental revenue potential it can create for us?

Speaker #4: So, just to clarify, do you expect all the expansion programs to be completed in the current year, and what kind of incremental revenue potential can it create for us?

Speaker #3: So let me answer that. So, the total investments approved by the board for manufacturing capacity—and that's what we have been announcing.

Kishore Chatnani: So let me answer that. The total investments approved by the board for manufacturing capacity, and that is what we have been announcing in various announcements to

Speaker #3: In various announcements, too, to the exchanges. So you also know that we have, for the project visit, a building under construction that will also be our corporate office.

Manish Goyal: Yeah

Kishore Chatnani: the exchanges. So you also know that we have, for the project business, there is a building under construction that will also be our corporate office. So when you said INR 700 crores, that included that expense as well. For the manufacturing capacity additions, the total investment approved by the board is INR 502 crores. So that is presently under implementation. The bigger ones, the machine building, which is the presses which is happening at Bharkhi. Mr. Puri mentioned about it in his remarks. So the first phase of that is already reaching completion. We should expect some small production to start by the first week of next month. The major phase for that, where the major investment is happening, that is expected to complete progressively between end of 2027, actually. Close to end of 2027. I meant end of calendar 2027 or Q1 of calendar 2028.

Speaker #3: So, when you said 700 crores, that included that expense as well. For the manufacturing capacity additions, the total investment approved by the board is 502 crores.

Speaker #3: So that is presently under implementation. The bigger ones, the machine building, which is the presses, are happening at Bharatholi. Mr. Puri mentioned this in his remarks.

Speaker #3: So the first phase of that is already reaching completion. We should expect some small production to start by the first week of next month. The major phase, where the major investment is happening, is expected to complete progressively between the end of 2027, actually, close to the end of 2027.

Speaker #3: So, also, at the end of— I meant calendar end of 2027 or first quarter of calendar 2028. Also, the process module thing at the H, so that's also expected to complete around 31st May 2027.

Kishore Chatnani: Also the process module thing at Dahej. So that is also expected to complete around 31 May 2027. So all of these together, when fully complete, they have the potential to add a total revenue of about INR 1,200 crores per year when fully complete. So it will largely start reflecting in from early 2028, 2029, we will get the full benefit of these investments. But progressively, there will be some increase in the outputs.

Speaker #3: So, all of these together, when fully complete, have the potential to add a total revenue of about ₹1,200 crore per year. When fully complete. So, all of it will largely start reflecting from early 2028–29, and we will get the full benefit of these investments then.

Speaker #3: But, progressively, there will be some increase in the outputs.

Speaker #4: Okay. So at least next year also, we should probably get some benefit from this expansion.

Manish Goyal: Okay, so at least next year also we should probably get some benefit from these expansions.

Speaker #3: Right.

Kishore Chatnani: Right.

Speaker #4: Right. Okay, sir. And sir, I'd like to come back to the caveat biofuel. Probably, sir, we were expecting improved performance from this quarter with 6 million liters sanctioned by DOE for this quarter as well as for the next quarter.

Manish Goyal: Okay. Sir, I would like to come back on the Cavite Biofuel Producers Inc. Sir, we were expecting improved performance from this quarter with 6 million liters sanctioned by DOE for this quarter as well as for the next quarter, and we thought that it probably would do at least will breakeven at the cash level. So the only loss would be optically on the depreciation side. Just would like to know that why is it that having a first quarter, full quarter of operations, we had such a large loss.

Speaker #4: And we thought that probably it would at least bring us to break even at the cash level, so the only loss would be optically on the depreciation side.

Speaker #4: So, I just would like to know, why is it that having a full first quarter of operations, we had such a large loss?

Speaker #3: So yes, as we have said, let me recap the whole thing. We started in December 2025—on 17th December 2025—as production on sugarcane.

Kishore Chatnani: Well, yes. Let me recap the whole thing. We started in December 2025, 17 December 2025, as production on sugarcane, and thereafter, plant stopped on 20 April. Even when we were doing that, even then some amount of molasses was also being fed. Now, after the sugarcane season is ended there, the sugarcane season has been shorter there as compared to what is normal. Now we are expecting the loss is largely because of depreciation. There is an interest cost that you can see. That interest cost is actually we do not have any outside loans. This company, CVPI, it does not have any outside loans now. So the interest cost is between the companies in the consolidated, obviously gets adjusted. The plant has run. Let me end up describing some statistics for you. It has crushed about 84,000 tonnes of cane during the season.

Speaker #3: And thereafter, the plant stopped on the 20th of April. Even when we were doing that, some amount of molasses was also being fed.

Speaker #3: Now, after the sugarcane season has ended there, the sugarcane season has been shorter there as compared to what is normal. Now, we are expecting the loss is largely because of depreciation.

Speaker #3: There is an interest cost. But, as you can see, that interest cost is actually minimal because we don't have any outside loans. This company—CBPI—doesn't have any outside loans now.

Speaker #3: So the interest cost is between the companies; in the consolidated, obviously, it gets adjusted. The plant has run, it has—let me just describe some statistics for you.

Speaker #3: It has crushed about 84,000 tons of cane during the season. Up to now, it's used up about 20,000 tons of molasses. It has produced about 10.5 million liters of ethanol and sold over 8 million liters.

Aditya Puri: Up to now, it has used up about 20,000 tonnes of molasses. It has produced about 10.5 million liters of ethanol and sold 8 million plus. We have allocations from the Department of Energy of the Philippines for the balance that we are expecting to continue to produce. It is still the first year, so capacity utilization has not really reached up to 90% or so, where it will start making good money. During the current quarter also, Mr. Puri mentioned it is running at 65% to 70%. Also, when we spoke the last time on the conference call, the feedstock was cane, and there were some problems that had come with cane, and what happens when a plant is running after a long time, and at reasonably high capacities. So those bottlenecks will be taken care of.

Kishore Chatnani: Up to now, it has used up about 20,000 tonnes of molasses. It has produced about 10.5 million liters of ethanol and sold 8 million plus. We have allocations from the Department of Energy of the Philippines for the balance that we are expecting to continue to produce. It is still the first year, so capacity utilization has not really reached up to 90% or so, where it will start making good money. During the current quarter also, Mr. Puri mentioned it is running at 65% to 70%.

Speaker #3: And we have allocations from the Department of Energy of the Philippines for the balance that we are expecting to continue to produce. It is still the first year.

Speaker #3: So, capacity utilization has not really reached up to 90% or so, where it started generating good money. During the current quarter also, Mr. Puri mentioned it's running at 65% to 70%.

Speaker #3: So now we have—so, also, when we spoke the last time,

Aditya Puri: Also, when we spoke the last time on the conference call, the feedstock was cane, and there were some problems that had come with cane, and what happens when a plant is running after a long time, and at reasonably high capacities. So those bottlenecks will be taken care of.

Speaker #4: On the conference call, the feedstock was cane and there were some problems that had come with cane, and what happened when a plant is being run after a long time.

Speaker #4: And it's reasonably high capacities, so those bottlenecks we'll be taking care of. And now it will run on molasses, and we came across some other problems which are unique to molasses.

Aditya Puri: It will run on molasses, and we came across some other problems which are unique to molasses, which also we will be taking care of in the next few months. So in a sense that we did encounter problems with the two different feedstocks, and to a certain extent or to a large extent, we have solutions for that. But we did encounter those problems operationally. During the current quarter, we do not expect that level of loss. There will still be a loss, but it should be substantially lesser.

Speaker #4: Which also we'll be taking care of in the next few months. So, in a sense, we did encounter problems with the two different feedstocks.

Speaker #4: And to a certain extent, or to a large extent, we have solutions for that. But we did encounter those problems operationally.

Speaker #3: During the current quarter, we don't expect that level of loss. There will still be a loss, but it should be substantially less.

Manish Goyal: Okay. So Q2 will be much lower losses.

Speaker #4: So, okay. So, in Q2, will we have much lower losses?

Speaker #3: Much lower loss, and it will be largely from the depreciation plus interest. Yes, please go ahead, sir.

Aditya Puri: Much lower loss. It will be large from the depreciation plus interest. Yes, please. Manishji, go ahead, sir.

Speaker #4: Sir, so and then for next so for second half for our financial year, then how should we look at it? Because then would you continue to probably buy molasses and make ethanol?

Manish Goyal: Sir, then for H2 for our financial year, then how should we look at it? Because then would you continue to probably buy molasses and make ethanol, or how should we look at it?

Speaker #4: Or how should we look at it?

Speaker #3: Yes, the plant will continue to run. The next sugarcane season will start sometime in November, but until then, the plant is currently running on molasses.

Aditya Puri: Yes, the plant will continue to run. The next sugarcane season will start sometime in November. Sometime in November. But till then, presently the plant is running on molasses.

Manish Goyal: Yeah.

Speaker #3: Later on, we'll have to keep on buying molasses as and when it is available in the Philippines.

Aditya Puri: Later on, we will have to keep on buying molasses as and when it is available in Philippines.

Speaker #4: Okay. So, at 90% capacity, are you saying? You probably...

Manish Goyal: Okay. At 90% capacity utilization, you probably-

Speaker #3: We expect to reach about 90% capacity in December.

Aditya Puri: We expect to reach at 90% capacity in December.

Speaker #4: Okay. And would we still contemplate, to probably look for buyers?

Manish Goyal: Okay. Would we still contemplate to probably look for buyers?

Speaker #3: Yes, that is the plan.

Aditya Puri: Yes, that is the plan.

Speaker #4: Okay. Okay. And sir, just on the order inflow side, probably what we based on the order booking breakup what we have, it seems that or maybe if you can give me the order inflow breakup, like is it the share of exports looks to be higher?

Manish Goyal: Okay. Sir, just on the order inflow side, based on the order booking breakup that we have, it seems that, or maybe if you can give me the order inflow breakup. The share of exports looks to be higher. The order book in exports has also grown. What I probably see is that sugar and machinery has grown and power has grown. So, have we received large orders in sugar machinery business from the exports in this quarter? Is that the right conclusion, sir? We have. We have received large orders. I can't say much more than that, but we have received large export orders.

Speaker #4: So maybe, and order book in exports has also grown. And what I probably see is that sugar and machinery have grown, and power has grown.

Speaker #4: So have we received large orders in the sugar machinery business from exports in this quarter? Is that the right conclusion, sir?

Speaker #3: We have. We have received large orders, and we have it. I can't say much more than that, but we have received large export orders.

Aditya Puri: Manishji, let me add to what sir said just now. So, exports is something we are really concentrating on. As you know, in our projects business, we do exports largely to developing countries. So, our efforts are bearing good fruit. We have orders from Latin American countries, from African countries, and from Southeast Asian countries. That is where our effort continues to be. We have booked good orders. This quarter, for example, we booked more than INR 750 crores of orders from these countries, from export markets.

Kishore Chatnani: Manishji, let me add to what sir said just now. So, exports is something we are really concentrating on. As you know, in our projects business, we do exports largely to developing countries. So, our efforts are bearing good fruit. We have orders from Latin American countries, from African countries, and from Southeast Asian countries. That is where our effort continues to be. We have booked good orders. This quarter, for example, we booked more than INR 750 crores of orders from these countries, from export markets.

Speaker #3: Let me add to what Sir said just now. So, exports are something we are really concentrating on. And as you know, in our projects business, we do exports largely to developing countries.

Speaker #3: So our efforts are bearing good fruit. We have orders from Latin American countries, from African countries, and from Southeast Asian countries. That is where our effort continues to be.

Speaker #3: We have booked good orders. This quarter, for example, we booked more than 750 crores of orders from these countries, from export markets.

Manish Goyal: Yeah.

Speaker #3: In the current ongoing quarter also, we are expecting to book good orders. Exports are always there, so there are two factors playing out. One is the currency at 95 rupees, which is helping us to be a little more competitive than other competing countries.

Aditya Puri: The current ongoing quarter also, we are expecting to book good orders. So there are two factors playing out. One is the currency at INR 95 is helping us to be a little more competitive than other competing countries. Of course, for all Indian competitors, it is the same situation. But compared to other countries which also bid for these orders, it is helping a bit. But the other side is that the export logistics, there are difficulties. I am sure you would have heard from many other people as well. There are less number of ships available, container freight rates are up, number of sailings are less. Of course, these orders that we are booking, they need to be executed over a period of 2 years or so. While the next 3, 4 months continue to look challenging, one really does not know

Kishore Chatnani: The current ongoing quarter also, we are expecting to book good orders. So there are two factors playing out. One is the currency at INR 95 is helping us to be a little more competitive than other competing countries. Of course, for all Indian competitors, it is the same situation. But compared to other countries which also bid for these orders, it is helping a bit. But the other side is that the export logistics, there are difficulties. I am sure you would have heard from many other people as well. There are less number of ships available, container freight rates are up, number of sailings are less. Of course, these orders that we are booking, they need to be executed over a period of 2 years or so. While the next 3, 4 months continue to look challenging, one really does not know

Speaker #3: Of course, for all Indian competitors, it's the same situation. But compared to other countries, which have also bid for these orders, it's helping a bit.

Speaker #3: But the other side is that, in export logistics, there are difficulties. I'm sure you would have heard from many other people as well. There are fewer ships available, container freight rates are up, and the number of sailings is less.

Speaker #3: So, we are expecting that, and of course, these orders that we are booking need to be executed over a period of two years or so.

Speaker #3: So while the next three to four months continue to look challenging, one really doesn't know what will happen with the war or when things will normalize.

Kishore Chatnani: what will happen to the war when things will normalize. But we are keeping enough margins for that, enough contingencies for that. So exports is certainly helping. If you are looking at the breakup, yes, there are export orders for sugar machinery have gone up, particularly sugar refineries.

Speaker #3: But we are keeping enough margins for that, enough contingencies for that. So exports are certainly helping. If you're looking at the breakup, yes, export orders for sugar machinery have gone up, particularly for sugar refineries.

Manish Goyal: Okay. And, sir, my last question, I will come back in the queue. At standalone, sir, in terms of the strong jump, what we probably see is that revenues are up 58%, EBITDA is up 64%. But somehow the increase in interest cost and decline in other income probably has led to just 10% growth in PBT. Because we have some borrowing at our end, which probably has gone ahead for Cavite Biofuel Producers Inc. So just want to probably understand how should we look at it, the decline in other income and increase in interest expense going forward. Thank you.

Speaker #4: Okay. Okay. And sir, my last question—and I'll come back in the Q&A. At standalone, sir, in terms of the strong jump, what we probably see is that revenues are up 58%, EBITDA is up 64%.

Speaker #4: But somehow, the increase in interest cost and decline in other income probably has led to just 10% growth in CBT. So, because we have some borrowing at our end, which probably has gone ahead for the Cavit Biofuel.

Speaker #4: So, I just want to understand how we should look at the decline in other income and the increase in interest expense going forward?

Speaker #4: Thank you.

Speaker #3: So, the other income we are talking about is for the first quarter last year, where the other income was higher. So, other income was there because of three factors, largely.

Kishore Chatnani: Other income, we are talking about the first quarter last year, where the other income was higher. So other income was there because of three factors, largely. One was the dividend received from subsidiaries. So our dividend receipts for the year will be the same, almost the same, INR 20, 22 crores. It is just that it is spilled into different quarters. The second is the interest income. Interest income is largely income from subsidiary companies, but also interest on whatever surplus money that we are presently carrying. The third part is Forex fluctuation. So we are accounting for Forex fluctuation on loans given to, particularly the Philippines companies. Until the money is realized, this fluctuation is going to continue. Sometimes it will come as other income, sometimes it will come as other expenditure. So up and down will happen.

Speaker #3: One was the dividend received from subsidiaries. So our dividend receipt for the year will be the same, almost the same, at ₹22.22 crores. It's just that it's split into different quarters.

Speaker #3: The second is the interest income. Interest income is largely income from subsidiary companies, but also includes interest on whatever surplus money that we are presently carrying.

Speaker #3: The third part is forex fluctuation. So, we are accounting for forex fluctuation on loans given to, particularly, the Philippines companies. Now, until the money is realized, this fluctuation is going to continue.

Speaker #3: Sometimes it will come as other income, sometimes it will come as other expenditure. So, up and down will happen, depending on the closing rate of the dollar to rupee, and so on.

Kishore Chatnani: Depending on the closing rate of the dollar to rupee and so on.

Manish Goyal: Okay.

Speaker #3: But the better thing to note is that if you were to think less in terms of other income and more in terms of operating income, this quarter's results are better in terms of operating income.

Kishore Chatnani: But the better thing to note is if you were to think less in terms of other income and more in terms of operating income, this quarter's results are better in terms of operating income.

Speaker #4: No, but in what sense, sir? It seems that the strong growth at the EBITDA level is not somehow reflected at the bottom line. So, that was my observation.

Manish Goyal: No, that is what, sir. It is like that strong growth in EBITDA level is not reflected somehow at the bottom line. This is what my observation was.

Speaker #4: And anyway, that's it. And last question: How much capitalization will we do this year in terms of the assets which we are creating, sir?

Kishore Chatnani: Right.

Manish Goyal: Anyways, fair. Last question, how much capitalization we will do this year in terms of the assets which we are creating, sir? How much depreciation can increase?

Speaker #4: And how much can depreciation increase?

Speaker #3: I beg your pardon, I don't have the number ready. I could have got it ready, but I don't have it. I did not think of that.

Kishore Chatnani: Pardon me, I don't have the number ready.

Manish Goyal: Okay.

Kishore Chatnani: I could have got it ready, but I don't have it. I was not thinking those lines.

Manish Goyal: I'll come back to you on that later on, sir. Thank you so much for all the answers. Thank you so much.

Speaker #4: I'll come back to you on that later on, sir. Thank you so much for all the answers. Thank you so much.

Speaker #1: Thank you. The next question is from the line of Devam from Ardeco. Please proceed.

Operator: Thank you. The next question is from the line of Devam from Ardeco. Please proceed.

Speaker #2: Yeah. Hello, sir. Actually, congratulations on the standalone, I mean, execution basically. Sir, I want to clarify a few things. To begin with, I mean, you mentioned during one of the earlier answers that small production would start by the first week of next month on the building premises—phase one completion.

[Analyst] (Ardeco): Yeah. Hello, sir. Actually, congratulations on the standalone, I mean, execution, basically. Sir, want to clarify a few things. To begin with, you mentioned during one of your earlier answers that a small production would start by first week of next month on the building presses phase 1 completion. Could you quantify that? We also mentioned that major phase would be later on. What is the amount out of the INR 502 crores which would be completing, and what would be the revenue potential of that? There is a major portion which gets completed. Does it all happen together, or would it be a stepwise completion during the period from next month to March 2028 or December 2027?

Devam Modi: Yeah. Hello, sir. Actually, congratulations on the standalone, I mean, execution, basically. Sir, want to clarify a few things. To begin with, you mentioned during one of your earlier answers that a small production would start by first week of next month on the building presses phase 1 completion. Could you quantify that? We also mentioned that major phase would be later on. What is the amount out of the INR 502 crores which would be completing, and what would be the revenue potential of that? There is a major portion which gets completed. Does it all happen together, or would it be a stepwise completion during the period from next month to March 2028 or December 2027?

Speaker #2: So could you quantify that? And we also mentioned that the major phase would be later on. So, out of the Rs. 502 crores, what is the amount that would be completed?

Speaker #2: And what would be the revenue potential of that? And then, the major portion which gets completed—does it all happen together, or would it be a stepwise completion during the period from next month to March '28 or December '27?

Speaker #3: So, what will get completed so that machine building presses—we call the presses division as machine building division because that's where we build those heavy presses.

Kishore Chatnani: What will get complete, so that machine building presses, we call the presses division as machine building division because that is where we build those heavy presses. There, it is in two phases. One phase has an investment of INR 70 crores, another phase has an investment of INR 218 crores. The INR 73 crores investment is going to get completed in first week of September.

Speaker #3: So there, it's in two phases. One phase has an investment of ₹70 crore. Another phase has an investment of ₹218 crore. The ₹73 crore investment is going to get completed in the first week of September.

[Analyst] (Ardeco): Okay.

Devam Modi: Okay.

Speaker #3: That has the potential, on an annual basis, to give additional revenue of ₹225 crores. On an annual basis. But if you look at the first quarter, it will actually be work in progress, which will be increasing before the machines get built and are ready to be sent out to customers.

Kishore Chatnani: That has a potential on an annual basis to give additional revenue of INR 225 crores. On an annual basis. If you look at the first quarter, it will actually be work in progress, which will be increasing before the machines get built and start. They are ready to be billed out to customers.

Speaker #2: Okay.

[Analyst] (Ardeco): Okay.

Devam Modi: Okay.

Speaker #3: So the first 73 crores of Machine Building Division, which is happening at Bharati, that will get completed in the first week of September.

Kishore Chatnani: The first INR 73 crores of machine building division, which is happening at Bhadravati, that will get completed in first week of September.

Speaker #2: And so that comes in within an annual revenue potential of ₹225 crore. So, you can expect roughly around ₹120 crore additional revenue potential from the same in the current financial year.

[Analyst] (Ardeco): And so that comes in with an annual revenue potential of INR 225. So you can expect roughly around INR 120 odd crore additional revenue potential from the same in the current financial year.

Devam Modi: And so that comes in with an annual revenue potential of INR 225. So you can expect roughly around INR 120 odd crore additional revenue potential from the same in the current financial year.

Kishore Chatnani: No. The production will be there. The work in progress will increase, but not the billing.

Speaker #3: Then, no. No, the production will be there. The work in progress will increase, but not the building.

Speaker #2: Okay.

[Analyst] (Ardeco): Okay.

Devam Modi: Okay.

Speaker #3: It's not—the cycle time is about 8 to 10 months for what's going to be manufactured in these shops. So, you can expect a jump in Q1 of the next financial year.

Kishore Chatnani: The cycle time is about 8 to 9 to 10 months of what is going to be manufactured in these shops. So you can expect a jump in Q1 of next financial year.

Speaker #2: Got it. So till then, it would basically get reflected, being netted off in the end, into Q3 and Q4.

[Analyst] (Ardeco): Fair enough. So till then it will basically get reflected, getting netted off in the P&L in Q3 and Q4.

Devam Modi: Fair enough. So till then it will basically get reflected, getting netted off in the P&L in Q3 and Q4.

Speaker #3: And so, you're a work in progress, sir.

Kishore Chatnani: It is really a work in progress, sir.

Speaker #2: Fair enough. And you mentioned that you are targeting like 10 to 15 10 to 12% growth to your size. And I mean, you did also say that you are being conservative.

[Analyst] (Ardeco): Fair enough. Sir, you mentioned that you are targeting 10% to 12% growth to your size. You did also say that you are being conservative. Would it mean that if I am just realistic post the first quarter maintenance of the growth rate? Of course, yes. I mean, is there any inflationary component in this or are we being sheerly conservative because if it is realistic, we are overshooting that now.

Devam Modi: Fair enough. Sir, you mentioned that you are targeting 10% to 12% growth to your size. You did also say that you are being conservative. Would it mean that if I am just realistic post the first quarter maintenance of the growth rate? Of course, yes. I mean, is there any inflationary component in this or are we being sheerly conservative because if it is realistic, we are overshooting that now.

Speaker #2: Would it mean that, I mean, if I'm just realistic post the first quarter, the maintenance of the growth rate process—I mean, is there any inflationary component in this, or are we being purely conservative?

Speaker #2: Because if it's realistic, we are overshooting that number.

Speaker #3: We are trying to be realistic here. We are trying to say out things which we are sure that we are going to be achieving.

Kishore Chatnani: We are trying to be realistic here. We are trying to say out things which we are sure that we are going to be achieving. That is what we are trying to say.

Speaker #3: That's what we are trying to say.

Speaker #2: Okay, sure. And we are being realistic with the conservative bias; that's why that would be okay. All right. And on the EBIT margin side, for the machinery and equipment front, is there any sort of cost pressure or raw material pressure which is impacting the margins?

[Analyst] (Ardeco): Okay, sure.

Devam Modi: Okay, sure.

Kishore Chatnani: We are being realistic with a conservative bias. That is what exactly being conservative about this.

[Analyst] (Ardeco): Okay. All right. On the EBIT margin side, for the machinery and equipment front, is there any sort of cost pressure or RM pressure which is impacting the margins and, would those sort of change going ahead? What are the sort of normative EBIT margin we can expect from manufacturing of machinery and equipment?

Devam Modi: Okay. All right. On the EBIT margin side, for the machinery and equipment front, is there any sort of cost pressure or RM pressure which is impacting the margins and, would those sort of change going ahead? What are the sort of normative EBIT margin we can expect from manufacturing of machinery and equipment?

Speaker #2: And would those sort of changes go ahead? Or what is the sort of normative EBIT margin we can expect from manufacturing of machinery and equipment?

Speaker #3: I think so, there are cost pressures. You know very well that because of the war, rates of certain items have all gone up. We always do carry some amount of contingencies.

Kishore Chatnani: I think, so there are cost pressures. You know very well, that because of the war, rates of certain things, rates of certain inputs, raw materials, they have all gone up. We always do carry some amount of contingencies. So as of now, we are doing okay. Mr. Puri mentioned in his opening remarks that for manufacturing, 12% to 13% EBIT margins. We continue to think that we are going to be there. This quarter is 12%. I am reasonably certain that we are going to be between the 12% to 13% range.

Speaker #3: So, as of now, we are doing okay. Mr. Puri mentioned in his opening remarks that for manufacturing, 12 to 13 percent EBIT margins.

Speaker #3: We continue to think that we are going to be there. This quarter is 12%. I'm reasonably certain that we are going to be between the 12% and 13% range.

Speaker #2: Correct. So, what you're saying is that, for the full year, 12 to 13 percent on manufacturing is something that will be possible.

[Analyst] (Ardeco): Correct. So you are saying sort of, for the full year, 12% to 13% on manufacturing is something what will be possible?

Devam Modi: Correct. So you are saying sort of, for the full year, 12% to 13% on manufacturing is something what will be possible?

Speaker #3: Yes, please.

Kishore Chatnani: Yes, please.

Speaker #2: And sir, we have sort of been stating over the last, you can say, practically a certain period of time, that we would be looking at shorter duration projects, increasing the share of shorter duration projects and private sector, as well as increasing the share of exports.

[Analyst] (Ardeco): And, sir, we have sort of been stating over the last, you can say practically a certain period of time, that we would be looking at shorter duration projects, increasing the share of shorter duration projects in private sector, as well as increasing the share of exports. So obviously, we are seeing that your private sector proportion is much higher. Would just like to get a color and flavor on that when shorter duration projects will go up, how is that playing out right now? What is the percentage of long duration in the total execution? And what would that imply for EBIT margins on the project side, when both strategies come into picture, shorter duration as well as higher amount of exports?

Devam Modi: And, sir, we have sort of been stating over the last, you can say practically a certain period of time, that we would be looking at shorter duration projects, increasing the share of shorter duration projects in private sector, as well as increasing the share of exports. So obviously, we are seeing that your private sector proportion is much higher. Would just like to get a color and flavor on that when shorter duration projects will go up, how is that playing out right now? What is the percentage of long duration in the total execution? And what would that imply for EBIT margins on the project side, when both strategies come into picture, shorter duration as well as higher amount of exports?

Speaker #2: So we are also obviously we are seeing that your private sector proportion is much higher. Would just like to get a color and flavor on that, that when shorter duration projects will go up, how is that playing out right now?

Speaker #2: What is the percentage of long duration in the total execution? And what would that imply for EBIT margins on the project side, when both strategies come into the picture—shorter duration as well as a higher amount of exports?

Speaker #3: So, for Mr. Puri—as he actually mentioned in his opening remarks—we try to anticipate questions and answer them, and that we are going to be within the five to six percent range.

Kishore Chatnani: Mr. Puri actually mentioned in his opening remarks, we try to anticipate questions and answer them, that we are going to be within the 5% to 6% range. The longer duration, we are no longer taking. Now what we are taking maximum is something like 2 and a half years at the most 33, 36 months. We are not taking anything which lasts longer than that. We are trying to be closer to 2 and a half years. Earlier, we took orders which were 4 years plus and eventually ended up being 6 years. So we are also focusing on orders where the customer values our technology, and we are able to ask for a premium for the technology, not really only for our ability to less technical impact. So let me say projects where. So we have 10 or 11 different technologies for our boilers.

Speaker #3: The longer durations, we are no longer taking. Now, what we are taking maximum is something like two and a half years, at most—33 months, at the most 33, 36 months.

Speaker #3: We're not taking anything which lasts longer than that. We are trying to be closer to two, two and a half years. Earlier, you know, we took orders which were four years plus and eventually ended up being six years.

Speaker #3: So we are also focusing on orders where the customer values our technology and we are able to ask for a premium for the technology, not really only for our ability to execute less technical—I mean, let me say, projects where... So, we have 10 or 11 different technologies for our boilers.

Speaker #2: Correct.

[Analyst] (Ardeco): Correct.

Devam Modi: Correct.

Speaker #3: We have very we have perhaps the best technology in the world for the sugar machinery, whether it's for sugar plants or sugar refineries or sugar-related power plants.

Kishore Chatnani: We have perhaps the best technology in the world for the sugar machinery, whether it is for sugar plants or sugar refineries or sugar related power plants. So we are trying to play on those rather than take orders where there are enough and more orders available in the market, which are largely contract execution, site execution. We are trying to not take those orders. We are trying to focus where there is more technological aspect rather than only 10%, 12% kind of civil, 10%, 12% kind of erection commissioning, we will take those orders. But if it is more than that, then we are shying away from those orders. And it is playing out well. I think margins are improving, working capital is coming down. And you will see it, Mr. Puri mentioned our net borrowings are down. Even in this quarter, they are down, thanks so much.

Speaker #3: So we are trying to play on those rather than take orders where there are enough and more orders available in the market, which are largely contract execution, site execution.

Speaker #3: And we are trying not to take those orders. We are trying to focus where there is more technological aspect, rather than only 10–12% kind of civil, 10–12% kind of erection and commissioning. We will take those orders.

Speaker #3: But if it's more than that, then we are shying away from those orders. And it is playing out well—I think margins are improving, and working capital is coming down.

Speaker #3: And you will see it. Mr. Puri mentioned our net borrowings are down—even in this quarter, they are down. Thanks so much. In spite of the capital expenditure being self-financed.

Kishore Chatnani: In spite of the capital expenditure being self-financed. Borrowings are down INR 140 crores this quarter. We also invested INR 47 crores in capital expenditures from our own internal generation. About INR 200 crores, around about that. INR 180 this quarter. Total INR 150. Even the earlier INR 100 crores plus that we put in capital expenditure, that is also been through self-financing. The only reason we have a borrowing is whatever we have on lent to the Philippines business. The different category of projects that we are now focusing on is shorter duration, more technology intensive, more exports. It is improving our margins. It is certainly going to be improving our cash flow and our fund position, reducing our working capital requirement. I think all of those things are playing out.

Speaker #3: So, our borrowings are down ₹140 crores this quarter. We also invested ₹47 crores in capital expenditure from our own internal generation. So, about ₹200 crores or thereabouts. Twenty pieces quoted, total ₹150 crores.

Speaker #3: Right. And even the earlier ₹100 crores plus that we put in capital expenditure, that’s also been through self-financing. The only reason we have any borrowing is whatever we have on-lent to the Philippines business.

Speaker #3: So, what are the different categories of projects that we are now focusing on? Shorter duration, more technology intensive, more exports. It is improving our margins.

Speaker #3: It is certainly going to improve our cash flow and our fund position, reducing our working capital requirement. I think all of those things are playing out.

Speaker #2: Okay, sure. Thanks. Thank you for the same. Thank you.

[Analyst] (Ardeco): Okay, sure. Thanks for the same, sir. Thank you.

Devam Modi: Okay, sure. Thanks for the same, sir. Thank you.

Speaker #1: Thank you. The next question is from the line of Shubham Murade from ICICI Securities. Please proceed.

Operator: Thank you. The next question is from the line of Shubham Murade from ICICI Securities. Please proceed.

Speaker #3: Hi, thanks for taking my question. So, we have a robust order book of ₹89 billion. What is the approximate timeline for execution of this order book?

Shubham Murade: Hi. Thanks for taking my question. We have a robust order book of INR 89 billion. What is the approximate timeline for execution of this order book? My second question would be, order book growth was flat year-on-year. What is the outlook for order inflows for the next three quarters, and mainly from international orders? That is it.

Speaker #3: And the second question would be: order book growth was flat year on year. So, what is the outlook for the order inflows for the next three quarters?

Speaker #3: And mainly from international orders. So that's it. So, if I understood...

Kishore Chatnani: If I understood you correctly, the second part of your question was to do with the expected order book, particularly international. The pipeline is good, and we continue to believe that it will remain good and remain healthy. I did not get the first part of your question. Could you just repeat that?

Speaker #2: You are correct; you asked—the second part of your question was to do with the expected order book, particularly international. The pipeline is good, and we continue to believe that it will remain good and remain healthy.

Speaker #2: And I did not get the first part of your question. Okay, could you just repeat that?

Speaker #3: Yeah, okay. The current order book that we have—what is the approximate timeline of execution? So the order book is for the engineering companies. I'm sure you appreciate that, for sugar, we don't report any order book.

Shubham Murade: Yeah. Of the current order book that we have, what is the approximate timeline of execution?

Kishore Chatnani: The order book is for the engineering companies. I am sure you appreciate that for sugar, we do not report any order book. There is no order book to be reported. For orders that we take, we have mentioned it in earlier calls, have different execution timelines. In the manufactured items, it can be 4, 5, 6 months to about 10, 12 months. For the project business, we have just been speaking about orders which are longer, so 14 months to about 2 and a half years is the execution timelines that is normally there. In Isgec Hitachi Zosen, the orders are typically 15, 16, 17, 18 months. That is their execution timeline. For Eagle Press, of course, it is a small part of the business, but anyway, their order execution time is 6 to 9 months kind of thing. We have already answered this question in terms of the revenue growth.

Speaker #3: There's no order book to be reported. For orders that we take, as we've mentioned in earlier calls, they have different execution timelines. In the manufactured items, it can be four, five, or six months.

Speaker #3: To about 10–12 months. For the project business, we've just been speaking about orders which are longer—so 14 months to about two and a half years is the execution timeline.

Speaker #3: That's normally there. It's the Hitachi Rosen—the orders are typically 15, 16, 17, 18 months. That is their execution timeline. For Eagle Press, of course, it's a small part of the business, but anyway, their order execution time is six to nine months kind of thing.

Speaker #3: Now, we have already answered this question in terms of revenue growth. So, revenue growth for ISGEC is 10 to 12 percent, and for ISGEC Hitachi Zosen, 10 percent or so.

Kishore Chatnani: Revenue growth for Isgec 10% to 12%, for Isgec Hitachi Zosen 10% or so. We have already answered this question in terms of when will these orders be completed. In terms of the order booking, as Mr. Puri just mentioned, we have good visibility in terms of inquiries from customers from many, many different industries. We also have good inquiries from exports. During the current quarter, which is the July and until today, we already booked about INR 1,200 crores orders in Isgec Heavy Engineering on a standalone basis. I think order book is going to be doing fine. We should be adding to the order book, even though the execution rate has improved, but we should still be adding a little bit to the order book.

Speaker #3: We've already answered this question in terms of when these orders will be completed. In terms of order booking, as Mr. Puri just mentioned, we have good visibility in terms of inquiries from customers.

Speaker #3: From many, many different industries, we also have good inquiries from exports. During the current quarter, which is July and until today, we have already booked about ₹1,200 crore of orders in Isgec Heavy Engineering on a standalone basis.

Speaker #3: So I think the order book is going to be doing fine. We should be adding to the order book, even though the execution rate has improved.

Speaker #3: But we should still be adding a little bit to the order book.

Speaker #2: Okay. Thank you.

Shubham Murade: Okay, thank you. That was it from my side.

Speaker #3: That will be all from my side.

Speaker #1: A reminder to all participants: anyone who wishes to ask a question may press star and one on their touch-tone telephone. The next question is from the line of Sandeep Beg.

Operator: A reminder to all participants, anyone who wishes to ask a question, may press star and one on their touchtone telephone. The next question is from the line of Sandeep De, an individual investor. Please go ahead.

Speaker #1: An individual investor. Please proceed.

Speaker #4: Good afternoon, sir, and congratulations on the good performance of the core business. Sir, while the core business, as I said, is doing well, unfortunately, its performance is getting camouflaged by the ethanol business in the Philippines.

Sandeep De: Good afternoon, sir, and congratulations on good performance of the core business. Sir, while the core business as such is doing well, but unfortunately, its performance is getting camouflaged by the ethanol business in Philippines. I just wanted to understand that business better. Mr. Puri mentioned that the business had a loss of INR 83 crores, which included INR 37.5 crores of depreciation. Now, if I annualize INR 37.5 crores, it is up to INR 150 crores. While I understand that the total asset base in Philippines is about INR 900 crores. So are we saying that we are depreciating the entire asset in Philippines in six to seven years? That's my first question.

Speaker #4: I just wanted to understand that business better. Mr. Puri mentioned that the business had a loss of ₹83 crores, which included ₹37.5 crores of depreciation.

Speaker #4: Now, if I analyze 37.5 crores, it is except to 150 crores. While I understand that the total asset base in the Philippines is about 900,000 crores.

Speaker #4: So, are we saying that we are depreciating the entire asset in the Philippines in six to seven years? That's my first question.

Speaker #3: So obviously, the method to be used is the written-down value method. It is not a straight-line method, so depreciation is higher in the initial periods.

Kishore Chatnani: Well, obviously, the method to be used is the written down value method. It is not a straight-line method. So depreciation is higher in the initial periods, and then it keeps on reducing every quarter.

Speaker #3: And then it keeps on reducing every quarter.

Speaker #4: Okay. But for this year, it will be about Rs. 150-odd crores.

Sandeep De: Okay. For this year, it will be about 150 odd crores.

Kishore Chatnani: It should be closer to something like 120 crores, I guess. I can get you the number. I can get an estimate, but you will have to give me some time to look it up.

Speaker #3: It should be closer to something like 120 crores, I guess. I don't have it right now, but I can get you the number. I can get an estimate.

Speaker #3: But you'll have to give me some time to look it up.

Speaker #4: Okay. Secondly, from the figures that you gave on depreciation and interest and the total loss, it seems that there is an EBITDA loss as well of about ₹10 to ₹15 crore from this business in this quarter, in the June quarter.

Sandeep De: Okay. Secondly, from the figures that you gave on depreciation and interest and the total loss, it seems that there is an EBITDA loss as well of about 10 to 15 odd crores from this business in this quarter, in the June quarter.

Speaker #3: And go ahead, please.

Kishore Chatnani: Where it is.

Speaker #4: So, at a capacity utilization of, say, 65-odd percent, we are making an EBITDA loss. That would mean that even at 90 percent capacity utilization, we probably will be hardly breaking even at the EBITDA level.

Sandeep De: At a capacity utilization of, say, 65% odd, we are making an EBITDA loss. That would mean that even at 90% capacity utilization, we probably will be hardly breaking even at the EBITDA level, and we will still not be recovering any part of depreciation and maybe not much of interest as well. Given this kind of a scenario, are not we better off either just shutting this business or selling it at a loss? Because that would be much, much better from overall financial perspective of the company, also from a management time perspective. And obviously, from whatever little I understand, I think markets too would look at that much more favorably.

Speaker #4: And we'll still not be recovering any part of depreciation, and maybe not much of interest as well. Now, given this kind of scenario, aren't we better off either just shutting this business or selling it at a loss?

Speaker #4: Because that would be much, much better from an overall financial perspective for the company. Also, from a management time perspective. And obviously, from whatever little I understand, I think markets too would look at that much more favorably.

Speaker #3: So, all those thoughts that you've mentioned are always under our consideration as management, as to what is the best way forward. There are, and we have to look at, what options are available to us.

Kishore Chatnani: All those thoughts that you said, they are always in our consideration as management as to what is the best way forward. And we have to look at what options are available to us. So they are always there in our thoughts to run and if you say shut down and sell, nobody buys a shut asset. So we have enough investment there. We are hopeful that it will be starting to make profit and covering some of the interest and some of these costs. I now have that number of depreciation that you just asked me. For the FY 2026-2027, the total depreciation we expect to be about INR 95 crores or so.

Speaker #3: So, we are always there in our thoughts to run, and I mean, if you say shut down and sell, nobody buys a shut asset.

Speaker #3: So there, we have enough investment. We are hopeful that it will start to make a profit and cover some of the interest and some of these costs.

Speaker #3: I now have that number for depreciation that you just asked me. For the financial year 2026-27, the total depreciation we expect is about ₹95 crores or so.

Speaker #4: So, how come it was 37.5 crores in the first quarter?

Sandeep De: How come it was INR 37.5 crores in the first quarter?

Speaker #3: So that is how the method is working. The WDB method is working, and it works as per the Philippines accounting standards, and so on.

Kishore Chatnani: Because that is how the method is working. The WDV method is working. And it works as per the Philippines accounting standards and so on.

Speaker #4: So, 92 and a half would mean that for the rest of the...

Sandeep De: 92.5 would mean that for the rest of the

Kishore Chatnani: I said 95, sir.

Speaker #3: I said 95, sir. I said 95.

Speaker #4: 95. So for the rest of the three quarters, it will be a little under 60 crores, 67 and a half crores. So that is less than 20 crores on an average per quarter.

Sandeep De: 95. So for the rest of the three quarters, it will be a little under 60 crores. So it is 57.5 crores.

Kishore Chatnani: Yeah.

Sandeep De: That is less than 20 crores on an average per quarter.

Kishore Chatnani: That's right.

Speaker #3: That's right.

Speaker #4: And.

Sandeep De: And-

Speaker #3: Mathematically, that's right. Mathematically, that's right. It is so there are that is how it works there. And we follow the international IFRS systems.

Kishore Chatnani: Mathematically, that's right. Mathematically, that's right. That is how it works there. We follow the international IFRS systems.

Speaker #4: Correct. And the interest cost that you mentioned, that is paid to the parent company, is about ₹20 crore per quarter. But it's to be paid.

Sandeep De: Right. The interest cost that you mentioned that is paid to the parent company is about INR 20 crores per quarter. It's to be paid.

Speaker #3: Yeah, that's right. Nineteen, twenty crores.

Kishore Chatnani: Yeah, that's right. 19, 20 crores.

Speaker #4: So, you need to do about ₹40 crore of EBITDA to break even at the part level or PBT level.

Sandeep De: You need to do about 40 crores of EBITDA to break even at the PAT level or PBT level.

Speaker #3: Right. You're right.

Kishore Chatnani: Right. You are right.

Speaker #4: At that 90 percent utilization, what kind of EBITDA do you expect to generate?

Sandeep De: At 90% utilization, what kind of EBITDA do you expect to generate?

Speaker #3: I don't have the number, so it depends on the pricing of sugarcane molasses and the ethanols.

Kishore Chatnani: I do not have the numbers. It depends on the pricing of sugarcane, molasses, and the ethanol.

Speaker #4: If you take the current prices?

Sandeep De: If you take the current prices.

Speaker #3: No, I don't have that number.

Kishore Chatnani: No, I do not have that number.

Speaker #4: Okay. Secondly, on the growth—we have had enough questions on that. But let's forget about the first quarter. Let's look at the remaining three quarters.

Sandeep De: Okay. Secondly, on the growth, we have had enough questions on that. Let's forget about the first quarter. Let's look at the remaining three quarters. What kind of growth do you foresee for the remaining three quarters?

Speaker #4: What kind of growth do you foresee for the remaining three quarters?

Speaker #3: I think we have answered this question a few times already. For the full year, we have said 10 to 12 percent. We have answered this question a bit.

Kishore Chatnani: I think we have answered this question a few times already. For the full year, we said 10% to 12%.

Sandeep De: Sorry.

Kishore Chatnani: We answered this question a bit two or three times already.

Speaker #3: Two, three times already.

Speaker #4: Right. But if I look at your first quarter numbers, you...

Sandeep De: Right, sir. But if I look at your Q1 numbers, you-

Speaker #3: I don't think we are interested in talking about quarter-to-quarter in a capital goods industry. So, tell me, how do you predict quarter to quarter?

Kishore Chatnani: I don't think we are interested to talk about quarter to quarter. In a capital goods industry, you tell me how do you predict quarter to quarter?

Speaker #4: No, sir, I'm not looking at quarter to quarter. All I'm trying to say is that given the first quarter numbers, and given what you have suggested for Q2 and Q3— in terms of ₹750 crore plus and ₹1,000 crore for the industrial business— the 10 percent number is achieved even if you don't do any growth for Q2.

Sandeep De: No, sir, I'm not looking at quarter to quarter. All I'm trying to say is that, given the Q1 numbers and given what you had suggested for Q2 and Q3 and all, in terms of INR 750 crore plus and INR 1,000 crore for the industrial business, the 10% number is achieved if you don't do any growth for Q2, Q3.

Speaker #3: I have already answered this question also, sir—twice or thrice. It's better to give a number which we are really going to achieve.

Kishore Chatnani: I have honestly answered this question also, sir, twice or thrice. It is better to give a number which we are going to be really achieving. There are all kinds of things which happen. Somebody starts a war, somebody starts whatever. I am required to run this business and talk about it and achieve what I am saying. So that is why we are trying to give you a number. If you think we are going to do better, we would be really happy. We are working for that. We are happy that you are thinking that way. We are also thinking that way, but this is the number that we are saying today.

Speaker #3: There are all kinds of things which happen. Somebody starts a war, somebody starts whatever. I want to give—I am required to run this business and talk about it and achieve what I'm saying.

Speaker #3: So that's why we are trying to be—we're trying to give you, and if you think we're going to do better, we would be really happy. We are working for that.

Speaker #3: We are happy that you are thinking that way. We are also thinking that way. But this is the number that we are stating today.

Speaker #4: Okay, thanks, sir. Thank you so much.

Sandeep De: Okay. Fine, sir. Thank you so much.

Speaker #2: Thank you. The next question is from the line of Manish Goyal from Thinkwise Wealth Managers. Please proceed.

Operator: Thank you. The next question is from the line of Manish Goyal from Thinqwise Wealth Managers LLP. Please proceed.

Manish Goyal: Yeah. Thanks a lot for providing another opportunity, sir. I have a couple of questions. One on the Isgec Titan, sir, did you mention revenue of INR 150 crores or I missed because

Speaker #5: Yeah, thanks a lot for providing another opportunity, Sir. I have a couple of questions—one on the EGIC Titan. Sir, did you mention revenues of 150 crores, or did I mishear?

Speaker #5: Because?

Speaker #4: Yeah. That's right. That's right.

Kishore Chatnani: Yeah, that is right.

Manish Goyal: Oh, okay. FY 2026, it has done extremely well because the revenue base earlier I thought was much lower.

Speaker #5: Oh, okay. So, FY26 has done extremely well because the revenue base earlier, I thought, was much lower.

Speaker #3: I'll tell you the FY26 number. Give me a second. I'll tell you. For FY26, EGIC Titan did ₹102 crore.

Kishore Chatnani: I will tell you the FY 2026 number. Give me a second, I will tell you. For FY 2026, Isgec Titan did INR 102 crores.

Speaker #5: Okay.

Manish Goyal: Okay.

Speaker #3: But for FY27, we are expecting it to do we are expecting it to do 150 crores.

Kishore Chatnani: For FY 2027, we are expecting it to do INR 150 crores.

Speaker #5: Okay. So that again proves we are more conservative.

Manish Goyal: Okay. So that again proves you are more conservative.

Speaker #3: Okay, sir.

Kishore Chatnani: Okay, sir.

Manish Goyal: And, sir, two questions. One on the services division. We are probably creating a new division. Just would like to get understanding as to what is the current revenue base. I believe you were doing this earlier also, but as you have now segregated into a separate division, what is the revenue base now you have and what kind of potential we can look for it, and would it be a higher margin?

Speaker #5: And sir, two questions. One on the services division. We are probably creating a new division, so I would just like to get an understanding as to what is the current revenue base?

Speaker #5: I believe you were doing this earlier also, but as you have now segregated it into a separate division, what is the revenue base you have now, and what kind of potential can we look for in it?

Speaker #5: And would it be at a higher margin?

Speaker #4: So, Mr. Goyal, we have been doing operation and maintenance work before, including selling of spares and retrofits. But it's a question of if the same team is doing bigger boilers—and this is a small, although profitable, segment—but these are smaller value orders, so the attention goes on the big boilers.

Kishore Chatnani: Mr. Goyal, we have been doing operation and maintenance work before, including selling of spares and retrofits. But it is a question of if the same team is doing bigger boilers, and although it is more profitable, but these are smaller value orders. The attention goes on the big boilers. So now we are segregating it out. This is a relatively smaller orders, but slightly higher margin business. We hope that in two years' time, I cannot give you the absolute figures, but to double the existing O&M base that we have.

Aditya Puri: Mr. Goyal, we have been doing operation and maintenance work before, including selling of spares and retrofits. But it is a question of if the same team is doing bigger boilers, and although it is more profitable, but these are smaller value orders. The attention goes on the big boilers. So now we are segregating it out. This is a relatively smaller orders, but slightly higher margin business. We hope that in two years' time, I cannot give you the absolute figures, but to double the existing O&M base that we have.

Speaker #4: So now we are segregating it out. This is a relatively smaller order, but a slightly higher margin business. And we hope that in two years' time, I can't give you the absolute figures, but we hope to double the existing O&M base that we have.

Speaker #3: How many days, sir?

Manish Goyal: O&M, sir.

Speaker #4: So yeah.

Kishore Chatnani: Yeah.

Speaker #5: And, okay. And on, I probably had said in last year's annual report that we have also been doing contract manufacturing for certain defense-related and nuclear-related business.

Manish Goyal: Okay. I probably had read last year's annual report that we have also been doing contract manufacturing for certain defense related and nuclear related business, and there was a quite optimistic commentary over there. Maybe if you can give us more perception as to what are our plans over here and what is the way we see on this.

Speaker #5: And there was quite an optimistic commentary over there. So maybe, if you can give us more perspective as to what our plans are over here and what is the basis we see for it.

Speaker #4: So the contract business is growing, and we are also doing it across different industries besides defense. We are in nuclear, and we are also doing some work in hydro.

Aditya Puri: The contract business is growing, and we are also doing it across different industries besides defense and nuclear. We are also doing some work in hydro. We are also doing some work in steel. We are doing it across various industries. We are trying to diversify our base and also get into new products over there. This work is promising. It is also a hedge to the press business that we have in terms of the fact that there could be times when the automobile business is not that great, the growth is not on the lines that we are seeing today. The same facility can also be used to do this contract manufacturing business.

Speaker #4: We are also doing some work in steel. We are doing it across various industries. We are trying to diversify our base and also get into new products over there.

Speaker #4: And this work is promising. It's also a hedge to the Press business that we have, in terms of the fact that there could be times when the automobile business is not that great.

Speaker #4: The growth is not along the lines that we are seeing today. So, the same facility can also be used to do this contract manufacturing business.

Speaker #4: So whilst it's profitable on its own, but it also provides a hedge to the other to the press business because the press business is mainly dependent not 100 percent dependent, but say 70 percent dependent on the automobile sector.

Aditya Puri: Whilst it is profitable on its own, it also provides a hedge to the press business because the press business is mainly dependent, not 100% dependent, but say, 70% dependent on the automobile sector.

Speaker #5: Oh, okay. And last question, sir, on the legal press.

Manish Goyal: Okay. And last question, sir, on Eagle Press.

Speaker #2: Sorry to interrupt you, Mr. Goyal. That was the last question for today. I will now hand the conference over to the management for closing comments.

Operator: Sorry to interrupt you, Manishji. Sorry to interrupt you, but that was the last question for today. I now hand the conference over to the management for closing comments. Over to you, sir.

Speaker #2: Over to you, sir.

Speaker #5: Thank you. Thank you, everybody. Thank you for joining us. Sorry, Mr. Goyal, you had to be cut short. But thank you, and I thank all the participants for joining us.

Aditya Puri: Thank you, everybody. Thank you for joining us. Sorry, Manishji, you had to be cut short. I thank all the participants for joining us, and we look forward to meeting with you again next quarter.

Speaker #5: And we look forward to meeting with you again next quarter.

Speaker #2: Thank you. On behalf of ICICI Securities and ISGEC Heavy Engineering Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Operator: Thank you. On behalf of ICICI Securities and Isgec Heavy Engineering Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

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Q1 2027 Isgec Heavy Engineering Ltd Earnings Call

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