Q1 26/27

Jul 22, 2026

Summary

Q1 revenue reached a record INR 300 crore, up 10% YoY, with EBITDA up over 20%. Domestic equipment orders were strong, while Middle East uncertainty delayed package bookings; FY27 revenue guidance remains unchanged.

Ladies and gentlemen, good day, and welcome to Kirloskar Pneumatic Company Limited Q1 FY 2027 Earnings Conference Call, hosted by Antique Stock Broking Limited. 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 the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Sanjeev Zarbade from Antique Stock Broking. Thank you, and over to you, Mr. Sanjeev. Thank you, operator. Good evening. On behalf of Antique Stock Broking, I welcome you all to Q1 FY 2027 Earnings Conference Call of Kirloskar Pneumatic. I am pleased to have with us today Mr. Aman Kirloskar, Managing Director, and Mr. Ramesh Birajdar, the Chief Financial Officer, along with the management team. Congratulations to Mr. Aman and team Kirloskar Pneumatic for delivering steady profit growth in Q1. And all the best for the future. May I now invite Mr. Aman Kirloskar to discuss the results, post which we can take the Q&A. Over to you, Aman. Thank you. Yeah. Thank you. Good evening. Thank you all for joining the call today. I have with me Mr. Ramesh Birajdar, Chief Financial Officer, and Mr. Jitendra Shah, Company Secretary. Before proceeding with the business updates, I kindly ask Mr. Jitendra Shah, our Company Secretary, to read out the disclaimer statement. Thank you, sir, and good evening to all. The presentation uploaded on the website of the company and discussion on the financial results during the earnings call may contain statements relating to future business development and economic performance that could constitute forward-looking statements. While these forward-looking statements represent the company's judgments and future expectations, a number of factors could cause actual developments and results to differ materially from expectations. The company undertakes no obligation to publicly revise any forward-looking statements to reflect future events or circumstances. Further, investors are requested to exercise their own judgment in addressing various risks associated with the company, and also the effectiveness of the measures which taken by the company in tackling them, as indicated during the discussion. Thank you. Thanks, Mr. Jitendra Shah. I will proceed with the business updates. The first quarter of this financial year came with some headwinds, particularly from the ongoing conflict in the Middle East. The geopolitical uncertainty weighed on broader risk appetite and caused a temporary slowdown in CapEx decisions and order finalization, resulting in a softer quarter for order bookings in our package business. Our equipment business, which is largely domestic, saw an opposite trend with record order inflows driven by strong demand across end-user segments and continued market share gains across newer products like the Tezcatlipoca centrifugal compressor. Despite the geopolitical events, our operational execution remained robust. With our supply chain concentrated around Pune and our integrated unique manufacturing capabilities, we were able to work through the challenges posed by the external environment. I am pleased to report our highest-ever Q1 revenue, crossing the INR 300 crore mark, along with EBITDA growth of over 20%, underscoring the strong value addition from our product mix and in-house manufacturing strength. We also continue to push the envelope on innovation, filing 35 IPs this quarter, a new record. We expanded our portfolio with the launch of two advanced solutions, the Tonalli containerized biogas plant and the highly anticipated A800 centrifugal compressor in the Tezcatlipoca range. These additions strengthen our presence across high-potential industrial applications, broaden our addressable market, and enhance our competitive positioning. We believe these new offerings will support sustainable growth and position the company to capitalize on improving market conditions as demand normalizes. Coming to individual business units, I will start with the air compressor division. This division had the highest order booking in its history this quarter, driven by strong orders coming in from sectors like power plants, carbon dioxide, and metals. This was also particularly due to large orders booked for our Tezcatlipoca centrifugal machines, which continue to gain market share and acceptance. We have also had a moderate growth in our screw compressor business. Coming to refrigeration compressors, this was a quarter as usual for the division, with no large package dispatches. This quarter also did not have any package orders booked. It is important to note, however, that the division did book several large package orders in the last month of the previous year. We have, however, seen the highest order booking for Khione in a quarter, which is still at a low base but growing rapidly. Our standard ammonia reciprocating compressors saw growth in order booking, mainly driven by growth in some of the end-user segments. We also successfully commissioned the Taichi semi-hermetic compressor last year, and it has gained market acceptance, reflecting the product's reliability, performance, and the customer's confidence. On the process gas side, order booking was muted largely due to the impact of the geopolitical crisis in the Middle East. We were expecting to close some large orders abroad, which have been delayed. CNG compressors, however, have had a decent demand this quarter, slightly higher than the previous year. Biogas in particular has been doing very well this quarter with order booking levels that are a record high for us. The outlook for this business is quite good, with many large tenders expected this year. We expect this year will be a good year as far as order booking is concerned, but many of these packages would be slated for dispatch starting next year. On the precision engineering division, we had a slow quarter for this division as we are yet to have our dispatches pick up. We do expect that Q2 will show a notable improvement. Coming to the outlook, looking ahead, we anticipate the geopolitical situation in the Middle East may continue for some time, which will continue to impact the pace of order finalization and execution timelines. It may also affect dispatches to the Middle East region. However, the broader structural shifts underway in the market remain highly favorable for our business. With the conflict in the Middle East affecting gas supplies, we are seeing an increase in adoption of alternatives like biogas. Additionally, domestic upstream activity as well as transmission pipeline opportunities seem to be very active in picking up this year. This all bodes well for the future of our processed gas business. In markets abroad, a similar trend seems to be playing out, and once the war concludes, we would expect that the inquiry flow would improve further. As the fuel mix gets increasingly gasified, we would have increased demand for our products. The demand for India's cold storage, food processing, fisheries, and ice plants continues to grow, and our compressors used here are seeing this growth. For new products like Khione, we expect this year to be a good one. As far as precision engineering is concerned, while the business is still nascent with dispatches yet to pick up, we have quoted on some orders which will leverage our vertically integrated manufacturing base and our wide range of unique capabilities. We expect that the products offered by this division will continue to grow, but it may grow slowly as these products tend to be highly critical and development cycles may be long. We believe that each of our businesses is well-positioned for growth in the long term, whether it is more gasified fuel mix, demand for cold storage, food processing, dairies, et cetera, growth of Indian industries, or the need for highly critical components to displace imports. All of these growth drivers are expected to have a good future. Now I will request Mr. Ramesh Birajdar, CFO, to take you through the financial aspects. Thank you. Good evening, everyone. The results of Q1 FY 2027 have been posted on the BSE and NSE website for your view. The presentation and detailed income statement detailing these results has been also uploaded to our company's website. Let me summarize the Q1 performance of FY 2027. Revenue from operations reached a record INR 300 crores in Q1, up 10% from the INR 272 crores in Q1 FY 2026. This represents the highest ever first quarter revenue in the company's history, making a significant milestone in its growth journey. Other income for Q1 FY 2027 stood at INR 7.9 crores compared with INR 8.2 crores in Q1 FY 2026 and remained broadly in the line with the corresponding quarter of the previous year. The total income for the quarter increased to INR 308 crores from INR 282.2 crores in Q1 FY 2026. Other income primarily comprise earnings from the investments, dividend income, and miscellaneous recoveries. Material cost to sales in the current period stands at 43.9%, reflecting a 3.3% improvement from Q1 of previous year, which was at 47.2%. This enhancement is attributed to more of the favorable product mix and enhanced manufacturing of select components. Employee related expenses stood at INR 53.7 crore in the current quarter, up from INR 49 crore in Q1 of previous year. This increase reflects a moderate salary revision implemented at the start of the year and additional few manpower in Q1. Nothing paid to bank as financial charges in the form of interest. Company has no loans, neither term loans nor working capital loans, and it is a debt-free company. Depreciation for the current quarter stood at INR 8.8 crore, up from INR 7.2 in the Q1 of previous year, reflecting a depreciation rate aligned with the pattern of asset additions in our Nashik plant and Hadapsar plant. Manufacturing and processing charges. This is a new item in the profit and loss account, being expenses to be disclosed if it is more than 10% of the total expenses. This is mainly the job work charges and outside processing expenses. There is no major change in these expenses, 10.5% were there in the Q1 FY 2026, while 10.2% in Q1 FY 2027. Other expenses comprising of both fixed and variable costs, which are mainly selling and general administration expenses, stood at 12% of sales in Q1 of current year versus 10.4% Q1 of previous year. Expenditure levels remain largely stable with no significant variation during the quarter. EBITDA for Q1 increased to INR 54 crore, with the EBITDA margin improving to 17.6% of total income, compared with 15.7% at INR 44.1 crore of EBITDA in the Q1 of previous year, reflecting continued improvement in our operating profitability. Profit before tax for Q1 stood at INR 45.6 crore, compared with INR 36.8 crore in the corresponding quarter of the previous year. The PBT margin improved to 14.8% from 13.1%, reflecting a stronger operation performance and effective cost control. Profit after tax grew at INR 34.1 crore at 11.1%, while it was INR 28.1 crore in previous year at 10%. Company issued 5,000 equity shares. Previous year, 16,100 shares. During the Q1 under its employee stock option program, consequently, paid up share capital increased to INR 12.19 crore from 12.98 at the start of the year. Basic earning per share improved to INR 5.25 per share in Q1 of the current year compared to 4.33 in Q1 of previous year. With over 94% of revenue coming from our core business, that is compression segment, it remains the only reportable segment. The company has improved segment profitability at 22.1% in Q1 in the current year against 18.30% in the previous year. Capital employed in our compression segment decreased by INR 44.1 crore to INR 372.8 crore, compared to INR 416.9 crore at the beginning of the year. New order booking during the Q1 close to INR 300 crore. As a result, the company has order book over INR 1,853 crore as on July 1, 2026, against INR 1,863 crore at the beginning of the year. Wherever necessary, the figures from the previous year have been regrouped, adjusted to align with the current reporting. Apart from the financials, other points also to be noted. Company's credit rating was upgraded to double A from double A minus with a stable outlook, reaffirming its strong financial fundamentals and robust liquidity position and consistent operational performance. This milestone underscores the confidence of CRISIL rating agency in the company's long-term growth prospectus and financial discipline. Number 2, demonstrating its continued commitment to high standards of corporate governance. Company has expedited the payment of final dividend, which was approved by the shareholders in the annual general meeting held on 21st July, that is yesterday. The final dividend now credited to bank account of eligible shareholders effectively within 24 hours from the conclusion of the annual general meeting. This forum is open for the discussion with our esteemed investors. 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. 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 Balasubramanian from Arihant Capital. Please go ahead. Good evening, sir. Thank you so much for the opportunity. Sir, for A800 frame, how we are positioned and what is the market response? Secondly, on the Tonalli side, this is especially for decentralized waste to energy market side. What is the commercial strategy for this product and how we are going to scale up in that category? Yeah. So on the A800, this is a product which has been under development for quite some time. There's nothing really like it in the market today. It is the smallest capacity class centrifugal compressor, and it would compete against other compressors giving Class 0 oil-free air. There are several advantages when we compare a centrifugal to a typical dry screw compressor, mainly around the total cost of ownership. The efficiency is better, and the maintenance charges are significantly less. So at the moment, we have gotten some inquiries, and we are quoting for them, but we want to make sure that the first installation is a good one and will be something which is marketable for us so we can get more. So we are being little selective and making sure that the first installation that we get will help us get more orders. Coming to the Tonalli, this is something which we innovated as a result of our own requirements. It came out of an internal process, and essentially, it helps to dispose of or convert waste food from our canteens. This then converts the food into a mix of fertilizer and biogas, and the biogas can be reused within our own canteens, having a payback period of around 2 and a half years. At the moment, we are looking at some segments which we believe would have a requirement for this kind of product, namely hotels and hospitals. We would again market this little cautiously just to ensure that the first few installations are ones which generate a good amount of word of mouth and help us market the product. I hope I have answered your questions. Yes, sir. Sir, secondly, that opening remark mentioned about Khione compressors expected to be good one. Is it good to mention which are the categories are really doing well and which are the categories are lagging? Yeah. This year, mainly fisheries, ice plants, food processing, these kind of sectors do seem to be doing quite well. And which are the categories that are lagging, sir? At the moment, we are not seeing any lag. There are some segments which are flat, but I think it may be a little too early to make a prediction for the year. But in the past quarter, we did have a good order booking across all segments. Got it, sir. My last question, I am trying to understand over medium to long-term perspective. I think whichever the commercial launches we have done is really doing good. But in the futuristic purpose, which are that C25 breakthrough technologies or products we are focusing on, whether it is hydrogen compression and liquefaction technologies, or it is like cryogenic cooling or CO2 capture and compression side, whether high speed industrial machinery or emerging applications like data center cooling or aerospace side. I am trying to understand what are the next generation products over the medium to long-term perspective we can look at? Yeah. I think if you look at the history of our past product launches, one trend does tend to come out. We are in a capital goods space, and the machines which we sell are all highly critical and relatively low value compared to the overall investment. What this means is that our end customers would really want to buy a product which they know will work. Therefore, selling the first product often takes a very long time. Selling the second one takes a long time, maybe not as long. Then slowly the snowball starts rolling. So actually the products which you are seeing today, whether that is centrifugals, new machines coming out in refrigeration, these are products which will be relevant in the medium and long term. That is not to say that our existing products would go anywhere. We are very fortunate to be in a space which doesn't seem to have any disruptions in terms of the technology. The requirement for practically our entire range seems to be growing. So it would be a complementary offering to what we already offer. Okay, sir. Got it. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the queue. The next question is on the line of Kashyap Zaveri from Emkay Investment Managers. Please go ahead. Yeah. Thank you so much, sir, for the opportunity and congratulations for a great profitable quarter. My first question is on the precision engineering part. I understand that this quarter was weak, but we have a full-fledged division out there with a manufacturing facility. If you can throw some light on what kind of expenditure have we done there, the kind of machines or how many machines have we deployed. And whether we are going to cater to industrial consumer, what part of the precision engineering. Also, going forward, what kind of investments can we expect out there? Second question is on your gross margin, which also with the reflection of the backward integration. If you can throw some light on very strong gross margins which happened this quarter, and are they sort of maintainable in the future? Yeah. Firstly, on the precision engineering, this is a business which really came out of our unique manufacturing capabilities. Over the past few years, you would have noticed that we have been setting up various capabilities to backward integrate our manufacturing processes, whether that is a new forging plant, castings, fabrication, et cetera. A lot of the way in which we've thought through it and how we've set it up is fairly unique. PED, actually, we've not really invested more than that. What that means is, a lot of the demand for PED is actually internal. What we have done is, we want to use the excess capacity to cater to external requirements. From an investment perspective, these investments have been done in the past, and they are being utilized internally. As far as the end segment goes, like I had said previously, we would refrain from really talking too much about it until we have some clarity on the sustainability of the business. On the gross margins, this gross margin is largely a result of the product mix and the in-house manufacturing. In the long term, our commitment has always been that we will keep an EBITDA between 18% and 20%. But just on the precision engineering side, in terms of management bandwidth, are we now at a point where these equipments- Sorry to interrupt you, sir. Kashyap sir, your voice is breaking. Can you please repeat your question? Sorry. Is this better? Yes, that is better. Yeah. Yeah. Just on the precision engineering side, as a management, are we in a place to invest more time, bandwidth also, and going forward, let's say if I look at next 5 years, put a number, anything out there. But over let's say next 5 years, given the fact India has essentially been emerging quite a meaningful player out there, could be a meaningful business segment for us? Is that over let's say next 5 to 7 years? Yeah. You were breaking up, but let me try and answer as I understood it. We do see that this business would be sustainable in the long term as long as we are able to develop and our customers are able to accept the products which we will manufacture. We are continually developing our own products. That being said, this will still be a relatively smaller part of our business. It might be 10%-15% of our overall business 5 to 7 years from now. Sure. That's it, perfect. Thank you so much. Thank you. Thank you. The next question is from the line of Prathamesh Mhalunge from Nippon Life. Please go ahead. Hi. Thank you for the opportunity. So two questions. Quickly one on the. Given the revenue of about INR 300 crores this quarter, despite a weaker base year-over-year in Q1 FY 2026 is slightly disappointing. As you mentioned in your opening remarks that there has been some delays in dispatches. Is it possible that some of the revenue has been deferred to next quarter? If so, would it be possible for you to quantify? I would refrain from quantifying, but certainly some revenue which we were expecting to happen in this quarter has been deferred to the next quarter. I know, but was this a package revenue or was it a product revenue, if you could? It would be a mix of both. All right. During the quarter, sir, just wanted to understand which were the segments which are actually contributing positively versus which is not. Basically, I assume air compressor and refrigeration must have been good, but since your commentary suggests that there has been some pickup in upstream in India, right? What is your outlook on the gas segment now? Because gas compression was a laggard in entire last year. How do you see this business going forward? Yeah. Coming to Q1, we had actually growth across all of our segments. The company did grow, but the growth would have been very moderate. The business which actually grew the best was the process gas business. This is on the back of some dispatches, which were fairly large, which happened this quarter. My outlook as far as the PGS business goes, as I said in my opening remarks, the inquiry levels are quite high, especially in the domestic market. As the energy mix gets more and more gasified, this does bode well for this business. In addition to all this, we are also seeing a lot of demand for alternative fuels like biogas. And again, as I said in my opening remarks, we did have record order booking as far as biogas is concerned but again, the base is not as large as some of the other businesses. Okay. All right. Now that we see some uptick in the biogas business, how do you look at the margins for FY 2027? Because FY 2026 base of EBITDA margin of about 20% was quite high. That was partially due to lower contribution from the gas segment, right? Now if we expect gas segment to contribute positively towards the overall revenue mix, do you see margins tapering off in 2027? Yeah. I think as we always say, we will be between 18% and 20% as far as our margins are concerned. That is where we aspire to be. We may be higher, we may be lower, but that is going to be the average at what our expectation should be. All right. Thank you so much for answering my questions. All the best. Thank you. Thank you. The next question is from the line of Amit Anwani from PL Capital. Please go ahead. Hi, Aman. Thank you. Thanks for the opportunity. First question on the challenges you highlighted, the Middle East disruption and supply issues. Is it related to particular product? Is it for any business vertical? Amid you expecting that to continue, are we changing our guidance of INR 2,100 crore for this year because of any of these near-term challenges as they continue to persist? That's my first question. Yeah. The businesses, as far as the challenges which have arisen due to the geopolitical situation abroad, these are largely limited to the package business, and that is again, limited to order booking. There is also a challenge on dispatching previously booked orders to that region. That is something which may impact, but we don't have such a high exposure currently as far as the sale is concerned. As far as guidance goes, we would not be moderating anything at the moment. You will be maintaining the guidance. That is what I see. This precision engineering business be at INR 500. I recollect we saying that this is a short cycle business. Is it fair to assume that H2 will be lumpier in terms of revenue booking for this division? No. We did say this is a short cycle business. Development cycles are long, and we are expecting that we will start to have dispatches for this business in Q2, but they will continue throughout Q3 as well. Right. Second question, you highlighted about Tezcatlipoca broadening the market and market share. With A800, if you could highlight about now what is the addressable market and what is our market share in Tezcatlipoca and any color, what is the absolute number in terms of revenue and how that has grown for Tezcatlipoca? Yeah. We will not give an absolute number, but we would have probably a mid-teens market share as far as our Tezcatlipoca addressable market is concerned. Very difficult for me to break out a figure for A800 market because, as I have said, this is a fairly unique product which actually does not exist in the market currently. However, from what we can tell, it should be a fairly large market in terms of having a market for an individual product node. Sorry, I am not able to answer your question. Our market share would be mid-teens, and we are expecting more than INR 100 crores worth of orders in Tezcatlipoca this year. Okay. But I think we used to highlight 500, so has that meaningfully increased in terms of the addressable market with this product launches which you are adding? Yeah, this would increase. You are talking about Tezcatlipoca market size, right? Yeah. Yeah. It would be more than INR 500 crores. Right. Lastly, how much was the product versus project for this quarter? And segment-wise, do we continue to kind of stick to refrigeration growing faster than air and than gas? This is my question here. Yeah. Our package dispatches for this quarter were quite minimal. It would probably be about less than 25% for the whole quarter. As far as the growth goes, we are- Yeah. We do expect that the refrigeration business will continue to grow on the back of growth in the end segments, largely cold storage, dairies, fisheries, et cetera. It is quite tied to the India consumption story. However, as I have said, there is also a very good outlook for gas on the back of this various disruptions caused by the geopolitical conflicts. So I do expect that over the next few years, we should see good growth there as well. All right. Last question, if I can squeeze on the Zephyros. Are we expecting any revenue contribution this financial year from Zephyros? Yeah. We will have revenue contribution this quarter itself. It may not be meaningful, but we will have revenue contribution. And things on track for that product, in terms of what you envisage in terms of the scale-up of the revenue for next year? Yeah. So for this year, we want to get a good install base and get a good reputation in the market. This will help us as we are trying to sell something, which again, doesn't really exist in the market and is a pretty unique solution, which has, we believe, many benefits, especially in the Indian context. The key thing for us this year is we do want to have a good install base across various applications. And we did start putting out quotes last month and, yeah, I think this month itself we'll start booking orders. All right. Thank you so much. All the best. Thank you. Thank you. The next question is on the line of Yash Churani from Code Advisors. Please go ahead. Hi, sir. I just had two small questions. One was, the gas is around 40%-45% of our revenue, so how is the demand in the industry and for yourself shifting between the CNG station CapEx and the oil and gas process compression? What carries gas growth in future as, say, CGD build-out matures? The second question is on the line of, so you are net cash positive with an upgraded rating to double A, and what is the capital allocation priority going in future, be it capacity or inorganic acquisitions or shareholder returns? So yeah, these were my two questions. Okay. On the gas side, we say it is between 35%-40% of our business. As far as the growth in the end segments coming to CGD, if you look at the projections from about 7,000 today, we are expected to go to about 15,000 in 2031. This means that the demand that is there should continue to grow year-on-year. As far as gas systems is concerned, as there is an increase in upstream or midstream activity, that would all go well for the business, but that is much more lumpy compared to, let us say, shorter cycle CNG compressor business. Understood. Sorry? Understood. Yep. Yeah. On the second question, I would request our CFO, Mr. Ramesh Birajdar to answer. Regarding the cash generation, we already planned the CapEx of INR 100 crore for the FY 2027, and plus additionally, we are doing for the Zephyros. If you see the Zephyros commitment from the company side, it is INR 320 crore. That will happen from FY 2027 as well as in FY 2028. So we are in line with that CapEx spend, and the cash generation will be utilized for that purpose. Thank you so much for the answers. Thank you. The next question is from the line of Manish Goyal from Thinqwise Wealth Managers LLP. Please go ahead. Yeah. Thank you so much, sir. A couple of questions. On gas packages, earlier you were alluding that the pipeline seems to be strong for the order inflows, and some orders which you have received last year will probably get executed in FY 2028. Maybe if you can clarify and give more perspective on this, sir. Yeah. No, I think what I meant is that as a result of the geopolitical conflict, there is a lot of, let's say, activity happening in the upstream and midstream segments in the domestic market. This means that the current inquiry levels are quite high, and all of these orders, well, most of these orders will be slated for execution in 2028 or beyond. These are currently all inquiries, but the demand for packages has certainly gone up. Okay. You also mentioned that certain packages ordering, booking, which was expected, got deferred. Do you see it's a longer period in terms of order finalization or maybe in probably this quarter or next quarter we can see some closures? Yeah. I would segment it. The orders from the Middle East particularly have been deferred, and that will possibly take quite some time. But the domestic market is seemingly quite robust. Okay. On CNG also, you said that things have improved. From quarter 4, we are seeing improvement on both inflows and execution. This quarter also, you said execution. Now do we see a fairly good revenue increase in the current year from the CGD parts? I think we would see a slight improvement. It may not be very large. We are looking at possibly launching some additional products towards the end of the year, which will help us expand our portfolio here. Okay. Also on coal gasification projects, which are coming up and a lot of interest from the government to provide incentives, how are we positioned over here and what could be our possibly TAM, say on certain size of the orders? Because I believe there are multiple compressors requirement in coal gasification. Yeah. So, I would segment it in multiple ways. One is on syngas compression, we have a couple of compressors which have been used in the past. We have also received some inquiries for these compressors in the last quarter. We also have another play in this, which is for process refrigeration when things need to be separated out of the gas. We have an active inquiry here as well, and we have executed a similar order in the past, maybe 15 years ago. So we have multiple plays of this. It will be very difficult for me to give you a TAM at the moment. I think as we get more familiar with this kind of business, we will be able to indicate that to you. Sure. And sir, one more question on the hydrogen compressors. We did get some order and we were probably on execution of it. Just maybe if you can give us more insight as to how is the execution and how are the order inflows in the hydrogen compressors? Yeah. Execution for our current orders is going as we had scheduled. I think as far as order inflows is concerned, this is a fairly nascent industry, and I think the unit economics really have to work out for it to take on a very large scale. We are still quoting and a lot of, let's say, pilot plants and proof of concept kind of things is what the inquiries are. So I think at the moment it is a very small part of what we do. We expect it to grow over the long term, but at the moment it is still quite small. Mr. Manish, I would request you to rejoin the queue for a follow-up question. Ladies and gentlemen, you are requested to restrict your questions to two per participant. The next question is from the line of Raj Shah from NMAMC. Please go ahead. Thank you, sir, for the opportunity. My first question, sir. So I have your annual report in front of me, sir. So in FY 2026, our revenue growth was around 9%. But if I go into the granular detail, the product sales growth was just 3%. However, service income grew by almost 50%. So from INR 204 crores, it was up almost 50% to INR 300 crores. So can you please throw some light on what led to this 50% growth in service revenues? And obviously it helped you increase the margins as well. Hello. I request Mr. Ramesh Birajdar to answer that question. The service income mainly component of the O&M, what we are taking care of the gas stations. Last two years it is gradually increased from INR 778 to INR 1,000 plus now. The performance-wise, we are at 98.5% and more for all gas stations. This is one reason. The equipment business is also growing along with this large package business, which quarter on quarter is changing. If you see the service income from the O&M, it is increased almost by 25%-30% because we got the gas stations maintenance, that is O&M, and now it is 1,000 plus. Whatever we dispatched these packages, that CNG and booster, that 2 years ago, after the COVID period, that is already started functioning somewhere in last 2 years. That is why the quantum has increased substantially in the service income. Okay. This number shall continue to increase, sir, going forward as well? Based on what we dispatched, and we are also targeting the new customers, we are expecting to maintain similar growth in this revenue. That is 50%? Not 50%. You can say between 25%-30%. Got it. Thank you so much. Second question, sir. Is there any update on our erstwhile road rail business, which we were trying to sell a few years ago? The road rail business is already closed. We have taken this as one exceptional hit in the year FY 2026 as well as FY 2025, and no assets are in the company now. It is completely wiped off and all the assets are sold. Whatever the hit is required is already taken in earlier financial years. Okay. Got it. Thank you very much. Thank you. The next question is from the line of Resham Jain from VVD Asset Managers. Please go ahead. Yeah, hi. Good evening. I have just one question related to Zephyros. If you can just highlight what is the total CapEx being done on that front, and how the revenue ramp-up will happen in this case, because as per the P&A, I think it has to be done in 5 years. Some guidance around Zephyros would be helpful. We already informed, I think, in the last call, that we have installed the 2 packages, one in our Saswad factory and another is in our Hadapsar factory. The third one we are installing in this month in the Hadapsar factory. We have got the first order for the Zephyros in this month and will execute in due course. Overall CapEx, what we committed for INR 320 crore is still valid, and we will do that. What is the commitment for the sales, that is on the way. We are a dedicated team now working for the Zephyros, and they are going in the market, checking with the customers, finding out the new segment for the specific application of this air conditioning. We expect that this will grow somewhere from this Q2 and onwards. Okay. Because INR 320 crores, last time you mentioned that this can generate 4 to 5x kind of Right. Correct. turnover. So how will the ramp-up will happen? Will it be second, third year where we will see a substantial jump, or how do you see Substantial jump will happen in FY 2028 and because we have the dedicated team working for the Because this is more of a conceptual thing rather than the product. And people are liking our product. People are happy that what performance they are seeing with the current, what we installed in the factory. And this will give the another big segment for the company. Okay. Right. Got it, sir. Thank you. Thank you. The next question is on the line of Sahil Sanghvi from Monarch Networth Capital. Please go ahead. Yeah, hi. Good evening. Thank you for the opportunity. My first question is, what part of the total order book is currently coming from the PED division? If you can help me understand that. It would be around 15%. This would be executed within a year? Yeah. Okay. Secondly, I just wanted to understand. No, sorry, that's all been answered. Thank you. That's all from my side. Thanks, Sahil. Yeah. Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Kirloskar for closing comments. Yeah. Thank you all for joining the call today, and thank you to Antique for hosting us. Thank you all. Thank you. On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.