Ladies and gentlemen, good day and welcome to the INOX India Q4 and FY 2025 audience conference call hosted by ICICI Securities 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 and zero on your touch-tone phone. I now hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you, and over to you, sir.
Yeah, thank you, Shruti. Good morning. On behalf of ICICI Securities, I welcome you all to the Q4 FY 2025 earnings call of INOX India. Today, we have with us from the management, Mr. Deepak Acharya, CEO, Mr. Pavan Logar, CFO, and Mr. Sunny Luvati, Investor Relations. We'll begin with the opening remarks from the management, which will be followed by Q&A. Thank you, and over to you, sir.
Thank you, Mohit. Good morning, everybody. Dear shareholders and investors, a very warm welcome to our earnings call for the fourth quarter and financial year ended March 31st, 2025. Our results, investor presentation, and press release are available on the stock exchange as well as on our website. With the belief you had the chance to go through it, I will go through operational performance for the quarter in detail for all the segments that we are present in. My colleague and our CFO, Pavan Logar, is with me on this call, and he will take you through financial performance post, which we will open the forum for questions and answers. India's economy continues to stand out among emerging markets, maintaining strong momentum even as the global growth moderates.
For the second consecutive year, it's poised to be the fastest-growing major economy in the world, supported by resilient domestic consumption and sustained infrastructure development. Relatively low exposure to U.S. trade tariffs has also helped us cushion the economy from global disruptions. According to S&P Global, India's GDP is poised to grow at 6.5% in FY 2026, driven by robust service-led exports, particularly to the U.S., which are expected to remain firm despite potential trade headwinds. On the monetary front, S&P anticipates that RBI eases rate by 50 basis points in the financial year, with softening food inflation and lower crude prices expected to bring inflation closer to RBI's 4% targe t by March 2026. This would create further room for policy support. A recent report by Morgan Stanley also reinforces India's relative strength in Asia.
With a lower dependence on goods exports as a share of GDP, India remains less exposed to global trade shocks. The report highlights the government's proactive fiscal and policy measures as key drivers in reviving domestic consumption and investment, critical to the sustaining growth momentum in the medium term. In parallel, technological self-reliance is becoming a cornerstone for India's long-term strategy. India has developed its first indigenous MRI machine, which is expected to be installed at AIIMS Delhi for trials by October. INOX India has played a pivotal role in this initiative by manufacturing the country's first indigenously designed 4K helium cryostat for MRI magnet system, making a significant step in reducing medical device import dependency by 80%-85%. This was achieved under MOU signed with CSIR, with support from the Ministry of Electronics and Information Technology.
Additionally, in the nuclear segment, India recently signed a deal enabling the transfer of the unclassified small modular reactors technology. This opens up new opportunities for domestic firms. INOX India is expected to benefit from this development, particularly through the setup of multi-process vacuum jacketed transfer lines and other specialized cryogenic equipment, key components in building and installing advanced nuclear infrastructure. At INOX India, we are proud to contribute to this transformative journey through our expertise in cryogenic storage, hydrogen handling, advanced cooling technologies, and robust solutions supporting SMRs and fusion energy. The union budget announced this year also emphasized a strong commitment to energy security by inviting private players to invest in this segment, and we look forward to playing a pivotal role in shaping India's clean energy future.
Amidst the mixed global economic signals, the fourth quarter and the full financial year concluded on a very strong note for INOX India, marked by robust top-line and bottom-line growth, even from a sequential perspective. Solid execution and consistent order inflow across all business segments drove this performance, enabling us to successfully meet the full-year guidance. The orders secured during the quarter further strengthened our leadership position as a provider of next-generation energy and cryogenic solutions. For the fourth quarter, we reported revenue of INR 318 crores, EBITDA at INR 95 crores, and profit after tax at INR 66 crores. Coming to the segment-wise performance, I'll begin with our largest business segment, industrial gas solutions. The inflow of orders in the industrial gas vertical during Q4 FY 2025 grew to 25.5% to INR 251 crores, followed by a few prominent export orders as well.
We achieved a significant milestone by securing an order from Australia for oxygen, nitrogen, and CO2 IMO containers. Our first-of-its-kind well-positioned us in direct competition with Chinese manufacturers. This breakthrough not only marks our entry into a new competitive space but also validates our long-term strategy of targeting major IMO containers contracts. The order comes with a challenging delivery timeline of under six months, and we are fully committed to meeting it, showcasing the enhanced capability of our Saudi plant. Our disposable cylinder business also recorded a strong performance during this quarter. Notably, we received substantial orders from the U.S. client. These wins are particularly encouraging as they were secured despite the introduction of tariffs in February, underscoring the resilience of our positioning and continued demand for our products.
The U.S. market continued to face structural shortage of disposable cylinders, demand exceeding the local production by 1.5 million-2 million units. While tariffs presented a potential headwind, discussions with our major clients in the U.S. indicated that rising steel prices and inflation have also increased costs for U.S. manufacturers, helping us to maintain our competitiveness. We have also made notable strides in our industrial gas segment, particularly with the development of specialized liquid helium containers known as Helium Dewar. While initial volumes were modest, we expect demand for this product to scale meaningfully in FY 2026 as the market matures. In the steel and oxide transport space, we successfully converted six trucks for logistics supplies and have already secured another 25 additional truck conversions this quarter, signaling sustained demand in this niche application.
Additionally, we completed the delivery of nine tanks to the U.S. for semiconductor applications, further reinforcing our growing presence in this strategically important sector. Overall, the quarter reflected not only solid performance across our established business but also encouraging momentum in new and high-potential areas. Moving to the LNG segment, during the quarter, INOX India achieved a significant milestone by securing an order of 36 IMO 40 feet IMO containers from a U.S. based customer, making our entry into a new promising market segment. In parallel, we are actively supporting the adoption of LNG as a cleaner fuel for Indian railways, having received orders for LNG fuel systems for locomotives. This initiative is aligned with broader efforts to reduce reliance on diesel and coal. Two of these systems are already operational in Gujarat, and construction of four more is currently underway. Our LNG fuel business is also gaining strong traction.
The newly developed Gen 2 fuel tank has been successfully installed and commissioned, and we have received requests from major OEM manufacturers for supply of more than 1,500 units to be delivered in FY 2026. Additionally, we are in discussion with Maharashtra State Road Transport Corporation through their conversion partner for changing their bus fleet to LNG. While there have been some delays, we remain optimistic about the order's finalization, especially since our conversion technology has already been successfully demonstrated on MSRTC buses. To facilitate the transition to LNG fuel vehicles, the development and refueling infrastructure is a key. MSRTC is planning to establish LNG fueling stations, and private players like Green Line are also making substantial investment, with plans to set up around 100 new stations over the next two to five years.
This growing ecosystem is encouraging, especially as OEMs increasingly recognize LNG as a viable and environmentally responsible alternative fuel in line with evolving ESG norms. In a notable milestone, INOX India has become the first Indian company to receive the IATF 16949 certification for cryogenic fuel tanks. This globally recognized quality certification is a mandatory requirement for automotive OEM suppliers and underscores our commitment to the highest manufacturing standards. It also firmly positions us as a pioneer in integrating cryogenic technology and automotive applications, especially in the growing LNG fuel tank space in India. Importantly, it opens doors to participate in the global heavy-duty vehicle fuel tank market, a significant opportunity for future growth. Now, moving to the Cryo Scientific Division, the quarter is a historic milestone with the successful installation of India's first indigenously developed MRI machine at AIIMS Delhi.
This pioneering effort, supported by Samir and the Ministry of Electronics and Information Technology, marks a major leap in India's medical technology capabilities. The initiative has been widely praised for its potential to drastically reduce the cost of MRI scans and significantly cut down the country's reliance on imported machines. This accomplishment not only reflects our technological strength but also our commitment to advancing self-reliant healthcare infrastructure. In parallel, GSC continues to expand its presence in high-impact scientific and aerospace applications. We have secured a prestigious order from National Institute of Technology Rourkela in collaboration with FAIR Project in Germany for construction of feed boxes, transfer lines, and for advanced physics research. Additionally, we are deepening our engagement with emerging space startups, including a research order for prototype testing equipment designed for high-pressure kerosene as a rocket fuel.
These collaborations are part of our broader vision to support cutting-edge research and innovation, positioning INOX India as a key partner in the evolving science and technology ecosystem. The stainless steel keg division has gained significant global recognition, marked by our recent achievement of AB InBev Global certification with an outstanding score of 98%. This accomplishment highlights the superior quality and safety standards of our products and places us in a strong position to secure orders from AB InBev breweries in Africa, Brazil, and many other countries. In addition, we have received approval from Paulaner Brewery in Germany and are in the final stage of obtaining approval from Heineken, further strengthening our presence in key international markets. Back home, the Indian beverage sector is witnessing rapid expansion, with major players like AB InBev, Carlsberg, and Heineken announcing substantial investments.
This has led to a surge in the demand for beer kegs as breweries scale up their capacities to cater to the growing market. Our own production has reflected this growth, with a keg volume surpassing 50,000 units over the past year, catering to customers across the U.S., Europe, and India. These developments not only validate our capabilities but also reinforce our position as a trusted key supplier in the global market. I am also pleased to share that the Saudi plant is now fully commissioned and has surpassed INR 200 crore turnover in its very first year of operation. This performance includes revenue generated from CryoShop, stainless steel kegs, and vacuum-based thermal shield panels refurbishment. As we move forward, we are focused on maximizing the plant's capacity with current projects, including the fabrication of storage, transport, and IMO tanks, and the manufacture of equipment for air separation units.
Regarding the recently imposed U.S. tariffs, we have carefully assessed the impact and expect it to be very minimal. Demand for disposable cylinders remains robust, and the tariffs are not expected to significantly affect our price competitiveness. Our keg business will largely remain unaffected given the absence of major U.S. based keg manufacturers. There may be a slight effect on our standard tanks, but this is largely offset by a non-compete clause that remains valid through the end of 2028. Overall, we expect only a small portion of our U.S. exports to be impacted. Looking ahead, we are optimistic about FY 2026. We are targeting revenue growth of around 18%-20% while maintaining strong EBITDA margins in the range of 22%-24% and PAT margin of 15%-18%. Segment-wise, we anticipate 16%-18% growth in the IG sector and over 20% growth in LNG and GSC.
Our stainless steel keg division, though relatively new, is also expected to become a meaningful contributor to our top lines. Our growth in FY 2026 will be driven by multiple factors. In the IG segment, we are focusing on emerging opportunities across helium, hydrogen, semiconductor, and ammonia applications, along with equipment for air separation plants. The expansion of the steel industry and rising investment in semiconductor manufacturing are creating a strong demand for industrial gases, which we will be positioned to meet. Additionally, the global push towards clean energy has intensified interest in hydrogen storage and transportation, where we are actively engaged through ongoing projects and customer inquiries. Coming to the few important quarter business numbers, order book as of 31st March 2025 was INR 1,356 crore, with 47% from industrial gas, 36% from LNG, and 17% from Cryo Scientific Divisions. Exports comprise 64% of our total order backlog.
In terms of segregation, 16% of the income has come from IG, 19% from LNG, and 16% from Cryo Scientific Divisions. Total order inflow during Q4 is INR 364 crore, comprising 69% from IG, 20% from LNG, and 11% from Cryo Scientific Divisions. Concluding my speech, I would like to reiterate that we are optimistic about the growth opportunities in all the segments that we cater to, and we expect to continue our growth trajectory in FY 2026. With the successful commissioning of the Saudi plant, landmarking in the global market, and strategic strides in LNG, helium, hydrogen, we are entering FY 2026 with solid momentum and confidence in our ability to sustain growth and deliver long-term value. I would like to thank you all for your patient hearing. I now hand over to Mr. Pavan Logar, our CFO, who will share the financial numbers in detail with you. Thank you so much.
Thank you, Deepak, and good morning, everyone. I shall share the summarized financials for the quarter as well as the financial year ended on 31st March 2025. Let me share the numbers for Q4 and FY 2025. The total income for Q4 was INR 383 crore, which grew by 33% year-over-year. The EBITDA was up by 52% to INR 95 crore. Our quarterly PAT grew by 55% to INR 66 crore. The total debt at the end of FY 2025 is zero, which provides us adequate room to raise debt in the future. Coming on financial year 2025 numbers, the FY 2025 income is INR 1,354 crore, grown by 16.2% year-over-year. The EBITDA grew by 18.3% to INR 330 crore. PAT grew by 15.4% to INR 224 crore. The company has a comfortable debt case surplus of INR 261 crore as of 31st March 2025. That concludes my update on the financial highlights of the company. I shall now request the moderator to open the door for question and answer session. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Prakash Kapadia from Spark PMS. You may proceed.
Thanks for the opportunity. A couple of questions from my end. On the revenue side on industrial gases, you alluded to growth coming from semiconductor, and momentum is strong. Can you share any new potential orders or contract wins which we would have received which can drive growth higher on the domestic side for revenues? What would be the split between exports and domestic for the IG division in terms of FY 2025 for the year as a whole, if you have that ready? Secondly, on the LNG side, what is the status update on Adani Total terminals? I think 16 terminal orders were given. There was a target of 50 terminals. When is it likely to happen? On the government side also, what is happening? I think 50 stations that tendering was over. Government obviously has longer-term plans of 1,000 stations. Where are we in terms of execution tendering? On the LNG side, how does the OEM supply or any visibility or further development come on the LNG tank? Those were my questions on the revenue side.
Yeah, there are two or three questions in one question, but okay, I will answer those. On semiconductor industry, yes, we are very hopeful that this segment is going to grow very rapidly. As you know, there are four or five more plants coming up in India now. After our successful completion of tanks for U.S. customers we have supplied in the last quarter, we have recently received an order from Tata Projects in Assam for semiconductor supply of tanks. As you know, these tanks are very critical from the supply because the cleanliness is very important. We have been supplying similar tanks to other countries way ahead of present requirement.
Semiconductor is really going to be very strong in India, and we are very much hopeful that more and more industrial gases will be required for the semiconductors, and we will get a good number of orders for storage and transportation of these equipments. On the LNG front, yes, what you rightly said, 1,000 stations were declared by the government of India way back. Last quarter, we said around 45-50 are now installed or commissioned or in the process of commissioning. In the last quarter, we have seen around 8-10 fueling stations getting added. Mainly, the new additions have come through the private players and a few of the PSUs. The growth is happening. The installations are there on the golden quadrilateral.
If you see the LNG fuel tank requirements by the OEMs, that is substantially increasing in the last few months. Knowing that, now there are fueling stations available on the main highways. We are seeing a great requirement coming from OEM manufacturers, and we are ready for supplying equipment to them. All our tanks, what we have supplied, have very successfully performed at most of the places. We are very hopeful that this will give additional growth for the LNG market.
Yeah. On Adani Total, any updates?
On Adani, we have commissioned so far seven such fueling stations, and balance are likely to come in the coming quarter. They have a plan of 25 stations. Out of that, seven are now completed.
Okay. Okay. I'll join back the queue if I have more questions. Thank you.
Thank you.
Thank you. The next question is from the line of Jaiveer Shekhawat from Ambit Capital. You may proceed.
Sure. Thanks for taking my question and team, congratulations for a great quarter. First, I wanted to understand on what's been happening on the order intake side. I see that, I understand last quarter you had received the Bahamas, which was a large order. Even prior to that, the order intake this quarter is equal to the second quarter order intake. In light of that, I mean, what sort of one gives you the confidence to achieve the growth guidance that you have guided for? Possibly, I'll take my question after that.
Yeah, our order book in the fourth quarter was good. Because Bahamas was a big order, slightly in the quarter three, there was a jump in order book. Going forward, definitely all these new segments in the IG sector, we lastly also told that steel industry, healthcare industry, ammonia, hydrogen, helium, these are the growth drivers for us. We expect very good business in these areas. The steel industry is growing very fast in India. A lot of many projects are coming in. Rather, we do not only supply to the manufacturer tanks out of our factory, but we also started fabricating flat bottom tanks that side. Several such sites are under progress. We have very good orders in hand for steel plants. Besides that, in the LNG market, yes, we are seeing very good potential for the small-scale LNG units as well as fuel tanks for the buses and trucks and many fueling stations, the satellite stations for the variety of application. As you see, the ESG is getting more and more forward.
We will have definitely, because of this ESG initiative, everybody wants to grow, use the clean fuel, and LNG can be the only substitute as of today. We feel that with all these initiatives which are coming up, at the same time, the Cryo Scientific Division, we are getting very good orders from all over the world, especially from ITER, CERN, WUST, and so many other organizations. We are quite confident that whatever we have achieved last year, we will grow at least 17%-20% on the revenue for the next year.
Sure. That's very helpful. I think second, I wanted to pick your brain on the entire LNG conversation that we are having. Now, we have been speaking with some of the auto OEMs trying to understand their unwillingness to sort of invest into making changes. I understand there has been some pickup that you have seen over the last few months. There has also been some pickup from the oil PSUs and the government side as well. I think it has been slower than what one would have earlier anticipated. Now there is also the discussion around EV adoption as well that might happen eventually on the MSCV side as well. Do you think the oil PSUs structurally are incentivized to put in such amount of large CapEx to invest into these LNG fueling systems? At the same point of time, even the automakers, because it seems as if the Indian opportunity does not seem that exciting. We might even rely on imports of LNG as well. Possibly the international could be something that sort of plays out very well for you. I just want to understand your thoughts there.
Yeah. If you really compare the EV and the LNG, okay, so whatever is our experience, not only in India but the rest of the world also, for heavy-duty buses, EV is not so powerful, so demanding, in my opinion, basically because it has got a limited kilometers what it can travel. Maximum it travels at 300-400 km in one space, and then it has to go for charging for at least three to four hours. Whereas this truck, they have to travel minimum 500-600 km in a day. Deliveries are so short, deliveries are there. They now keep these drivers, so they continuously run the trucks. Presently, our 450 L one-tank installation can go to almost 450 km, and if they install two such tanks, then 900 km.
Recently, in Auto Expo in Delhi, one of the OEM manufacturers has put 990 L two tanks. That means almost like 1,000 km in one stroke once you fill that. That is what is this LNG. Secondly, the power you get with LNG is substantially higher. The availability also now, more than 58 stations are there now across the golden quadrilateral. Every 300-400 km, there is a station now. We do not have to really see. With these two tanks on one truck, people are so comfortable that once the tank gets emptied, another 450 L is available for him to drive on the road. Once he sees the petrol station or fueling station, he can fill up that tank. That fear of, "I will go out of my fuel," is not there, which is always with the EV batteries and trucks. This is what is helping us. The signals we are getting from OEMs are that they are really gearing up to start their production of LNG vehicles in a big way now.
Got it. This is very helpful. Wish you all the best. Thank you so much.
Thank you.
Thank you. The next question is from the line of Nidisha from ICICI Securities. You may proceed. Hello, Nidisha?
Hello. Am I audible now?
Yes, ma'am.
Yeah. Yes. Thank you. Thank you for taking my questions. I have two questions in particular. Firstly, on the beer kegs, I know you mentioned that you are in advanced stages of approval for two players internationally. Other than that, I sort of wanted to understand how we expect this beer keg opportunity for us to grow in the upcoming three to four years, given what we have seen so far in the approval stage for exports. Domestically, also, you mentioned that there are a couple of expansions happening. With this, how do we expect this entire space to play out? That is my first question. The second would be on exports. We have seen over the last, say, one year, every quarter we have had some type of container shortage or, say, U.S. tariffs, things like that. How do we expect the upcoming year to pan out in terms of exports? The situation for containers, has it gotten any better since, say, Q2, Q3? Do we expect any disruptions in container availability anytime soon, given the geopolitical situation?
Yeah. Nidhi, very good questions you are asking. The one first is like beer kegs. As you know, I briefed you all of you last time as well. There are almost 120 million kegs available in the market. There is 4%-5% of replacement demand in the market every year. Almost there is a 4 million-5 million kegs required in the market every year. The present manufacturers in Europe and maybe China have a capacity to produce around 3 million-4 million kegs. There is always a shortage of 1 million- 1.5 million kegs in the market. The basic purpose of that was putting our plant was to cater to this demand. Because from the logistics supply point of view, European countries cannot supply to, or it is difficult for them to supply to Middle East, Southeast, India, and other countries. Okay.
Presently, we have installed our capacity of 300,000 kegs a year. Last year, we produced almost 50,000. As you see, the market is growing very fast. In India, there are three main breweries: AB InBev, Carlsberg, and Heineken. We have received global approval from AB InBev. Recently, last week only, we have received approval from Heineken. The only Carlsberg approval is pending, which they have planned to come to our factory for audit in the month of August. Once these three certifications are there, global approvals are there, we think that we will be very well placed in the global market. India, as you know, recently, these three majors have declared investment of almost INR 3,500-4,000 crore new CapEx investment in the coming year.
There will be substantially of that portion will go into the plant manufacturing as well as the facility for dispensing that is through kegs. We have potentially very good market. We have supplied to almost everybody in India. Whatever the products we have supplied, people are very happy. We hope that once their facilities are expanded and they are ready for taking beer kegs, they will call us and give the orders to us. On the export front, the container shortage is no more now. It was there in the first and second quarter, but third quarter, it started streamlining. Now the fares have also come almost similar to last year's pricing now. There is no such issue. Our exports traditionally are more than almost 50%-55% every year.
We continue to get that orders in export in the coming year as well. On tariff, yes, we have three products which we explained to you that one is our major exports to the U.S. is to disposable cylinders. In disposable cylinders, our competitors and other manufacturers there in the U.S., they have limited production capacity. Hence, the major users in the U.S. have to depend on other sources. There we are very well placed because of the zero anti-dumping on INOX India. At the same time, because of local inflation, which is going to be very high this year in the U.S., at the same time, the steel price is going up. The delta between our cylinders and the locally available cylinders will remain the same even in spite of the tariff additions.
Secondly, on the kegs, there is no such manufacturer available in the U.S. So we do not have to worry that local manufacturers will gain that order. We can supply on a regular basis. Slightly, there will be slight impact perhaps on our cryogenic tank business. That is very marginal because we have non-compete clause since 2028. Anyhow, we cannot supply the tanks or stock the tanks in the U.S. because of this. By that time, something more effective and more good solution we will find in due course of time.
Thank you. Lastly, I just wanted a follow-up question on the beer kegs. What is our, say, price competitiveness with the Chinese players? My question comes mainly from the line of if they ramp up their capacity tomorrow to cover up the shortage, would that mean that our market, would they would eat into our share of exports? That's the angle that I am sort of looking at.
Yeah, you are true. I mean, our prices are competitive and not lower than Chinese, but competitive pricing. And as you know, still in Europe and U.S. countries, Chinese products are not favored rather. We have better chance. Earlier, it was China plus one. Now, people are only looking at India. With that advantage, definitely, and our product quality, there are many companies in China who don't have these certifications even. A lot of anti-dumping duty onto the Chinese kegs are there. With all this, we definitely hope that India will have a better chance to sell the beer kegs into the Europe and U.S. market.
Thank you so much.
Thank you, Nidhi.
Thank you. The next question is from the line of Eshwar Arumugam from ithought PMS. You may proceed.
Hi sir. Thank you for taking my question. So sir, Chart Industries, they have reported that they have started delivering LNG fuel tanks to Volvo Eicher. Are we losing market share to other players in the LNG fuel tank division from either China or the U.S.?
This market is a big market. I told you that India produces almost 400,000-500,000 trucks and buses every year. Even if all the three OEM manufacturers, say 10% of their production goes to LNG, which will be around 40,000-50,000 fuel tanks will be required. Definitely, everybody has this thing that they can try different this one. As you rightly said, Volvo has tried Chart tanks, but their prices are much, much higher than our tanks. We are in discussion with them. Sooner or later, we are 100% confident they will come back to INOX India.
Understood. Understood, sir. Also, I wanted to congratulate you on the indoor trade in the U.S. order. I wanted to ask, what is the wallet share that we can gain with this client as the project is said to be worth around $15 billion? Also, the same company is investing in India as well for a semiconductor project. Are we expecting to win that order in India? What could be the potential of?
Yeah. The semiconductor business looks to be very promising to us. We are not letting any chance that we are losing any business on semiconductor if it comes on our way. Besides this U.S. company, what we have supplied, the nine tanks ranging from 50 KL to around 200 KL. Recently, we have received order from Tata Semiconductor Complex in Assam. That will be supplying in this financial year FY 2026. Whatever the opportunities that are coming for a variety of gases, our parent company, INOX Air Products, is putting their efforts to see that they grab the order. Definitely, we will supply most of the storage and transportation equipment to this industry. Even we are thinking that we'll go for manufacturing of different piping sheets and other things for the semiconductor industry. As the market grows up, as the requirement comes, we are really geared up to take that market head-on.
We are confident that we will do substantial product development for this industry in the coming few years or few months. Understood. Understood, sir. My last question is, while our results are very strong, you were confident of Q4 being above INR 400 crore in the last calls and FY 2025 growth being around 18%-20%. I just wanted to know if there has been any slowdown in the uptake this year compared to expectations. Very, very well said. I was expecting this question from some of you. I really said last time, upkeep are 400 par. Somehow, I mean, we have backup with, say, around INR 385 crore or something. Basically, we had, again, this you said February and March, this tariff has really disturbed everybody. We were almost having ready tanks available at our shop, almost 2 million-2.5 million.
People were just waiting because they were confused what to do. We had some issues with the customer that we said, "Okay. We never said we will be paying the additional duties and all that." We started negotiating with them. Few of them accepted, "Okay. Whatever duty it will come, we will pay." Few said, "Our plants are not ready or our sites are not ready. We will wait and watch what is going to happen." This has really had an effect on our final numbers. We are almost close to 400, which we should appreciate. If that few numbers were increased, almost like though we have said around 17-20, we would have reached around 17, 17.5. Small plus minus here and there, it happens. I think 16.2% is not a really low number for the revenue from growth, in my opinion. Yes, rightly what you said, there is a deviation to that.
Yes. Understood. That's all my questions, sir. Thank you so much for your time.
Thank you. The next question is from the line of Deepesh Agarwal from UTI AMC. You may proceed.
Good morning, gentlemen. I hope I'm audible. Yeah. Sir, if I look at your balance sheet, there is a substantial increase in receivables and contract assets versus March 2024. What is this? Actually, this contract assets is this percentage completion method. Our order book is increasing, and a lot of project orders are coming now. In project orders, we are getting the payment according to the payment terms.
Due to that, we have to be according to INDAS rules. That is why this amount is in contract assets. The order book, because of project order book, is increasing by more than around INR 1,000 crore. That is why this is there. Would it be fair to say there has been a substantial advantage against them because other liabilities are also substantial?
Yes. Yes. If you zoom, if you see the advance from customers, that has also increased from INR 252 crore to INR 387 crore. The basic reason is that, yes, contract asset amount is also lying in this. Until the billing is there, we cannot reduce the advances. That is why it has come in the, it is shown in the contract.
Okay. Sure. If you can share what were the revenue for the year for beverage kegs and disposable cylinders, and what is the expectation for FY 2026?
What's your question?
What was the revenue for the beer kegs and disposable cylinder in FY 2025, and what is your expectation in 2026? Are they also part of your order book?
Yeah. We did almost like how much did we do? Disposable is INR 139 crores. Disposable is around INR 129 crores. Stainless steel keg was INR 20 crore-INR 26 crores last year. More than 50,000 kegs were sold. We have to try to crores this in FY 2026. As we have got the.
Sorry. Your voice was not clear. Beer keg was INR 23 crores for the year.
Beer keg, we did INR 27 crores in FY 2025. Yeah. This is expecting almost INR 70 crore-INR 100 crores sales. As we have got the approval from AB InBev and NPN now. With this, we expect that more and more orders will start coming in because these are global approvals. Once this global approval is there, any country can start placing orders depending on.
Okay. Sure. Thank you. That's it from my side. Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. The next question is from the line of Drusha from Dalal Broacha. You may proceed.
Yeah. Thank you for the opportunity, sir. Congratulations on good set of numbers. My first question is, in the last quarter, you had mentioned that for our liquid air energy storage system, Hydro Power is looking at three to four new additional plants. Do we have any updates on that? Have you received any order wins over there?
No, we have not received any order. We have bidded for three or four projects which are in the pipeline. We are awaiting their confirmation. Definitely, with our progress on the first order they have placed, they are extremely happy with the services we have provided, the engineering inputs we are providing. We are hopeful that once they decide, they will come back to us.
Sure, sir. For your full year FY 2025, what has been the revenue contribution from the U.S.? If you can share the percentage of your order backlog coming from the U.S.?
U.S., mainly, we have a requirement from disposable cylinders, a small amount from kegs, and a few tanks which we directly sell to the customers in the U.S. It is almost like around 8-10% of our revenue overall. The overall revenue from U.S. customers is almost 8%-10% of our total revenue. We expect similar or higher because the disposable cylinder requirement is coming up very fast now. There are many such projects which are requiring LNG equipment as well because of this present situation in the U.S. market. We are hopeful that we will be getting more orders from the U.S. this year.
Right. Thank you. Sir, one last question regarding your Australia orders that you received for oxygen and IMO containers. The delivery you mentioned is under six months, right?
Yes. Yes.
What is the order value?
Order value, just a minute. Australia order. Order value is around INR 21 crore.
INR 21 crore. Sure, sir. Thank you so much.
Thank you. The next question is from the line of Rohan Vora from Envision Capital. You may proceed.
Hello, sir. Congratulations on the great set of numbers. Thank you. My first question was on the LNG part of it. Any LNG terminal project that is in sight where we've bid or the discussions are on for the next year where we can potentially receive order that you are looking at? That was one. Second was, I was also trying to understand because I read that INOX Air Products is supplying its air products to the semiconductor plant in Dholera. Have we made inroads there? What would it take for us? I mean, how is the competitive intensity there? I mean, are we going to be present there as well? That was the two questions that I had. Thank you.
Yeah. Dholera project, the land is acquired by INOX Air Products. They are just setting up their requirements, what equipment they will be requiring. As this is our parent company, definitely whatever the equipment, storage equipment, transportation equipment, or IMO containers will be required, definitely we will work on those projects. We are sure that we'll go get those orders. That way, we don't find any difficulty. Semiconductor market is growing.
We recently also received an order from Tata Projects in Assam as well. We are hopeful that whatever efforts we are putting into the semiconductor industry is going to be very beneficial to us for our top line as well as bottom line. Because frankly, there are no manufacturers to the specification of semiconductors as of today in India. Going forward, we have been in this industry way back when we supplied equipment to the semiconductor industry in Japan and Singapore. We very well know the requirement of this industry. We are very confident that we'll get majority shares as the semiconductor industry grows in India.
Sure. The first question was on the LNG terminal. Are there any orders in sight or will bid for?
We already had the order of Bahamas, which is under progress. Almost 50%-60% engineering work is over. Almost 30% material has received, 30% of the total project material has also been received. We are very much on track for the Bahamas project. The production has started. We have already bidded for various upcoming projects in the Philippines and Indonesia and Andaman as well. There are three, four more opportunities which are coming in this LNG terminal. We are 100% sure that we will support and we'll have a benefit into these new projects once they are designed.
Thank you, sir. All the best.
Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. The next question is from the line of kunal patia from [Dalal] stockbroking limited. You may proceed.
Hi sir. Thank you so much for the opportunity. And congratulations on a great set of numbers. Sir, I had a question in terms of, so you have given your order book. But currently, what would be the status of your order pipeline? What is the total order pipeline you are looking for FY 2026 and FY 2027?
The order backlog, we are having almost INR 1,356 crore as the backlog we are having. Normally, on an average, around INR 350 crore-400 crore will be received in every quarter. That momentum, we are going to maintain in coming years. We do not think whatever targets we have set for the revenue for FY2027 and FY2028, we will be 100% on our toes. We see that we accomplish these targets coming years.
Okay. Sir, any large project like the one we did for ITER in the Cryo Science Division? Any large project we are expecting going forward? If you could give some details on that. I'm expecting the quarter second quarter.
Declare it to me. Sorry, sir, your voice was not clear. I'm saying in the quarter one or quarter two of FY 2026, we are sure to get one big order from the scientific community worldwide. We are confident that we will win this order as we have done a very good job for them in the last few years. We are sure that this contract will come to us. We'll make sure.
Okay. By big, you mean to say will it be bigger than the ITER one?
Not because ITER was initial project was very big, but it will be substantially big.
Okay. Okay. Thanks. I'll get back in queue .
Yeah.
Thank you so much.
Thank you. Your voice is stable.
Hello, sir. Thank you. The next question is from the line of Kenneth Mendonca from TCG AMC. You may proceed.
Hi. Good afternoon, sir. And congratulations on a good quarter. Sir, my question was for the LNG segment. Could we get the breakup in terms of domestic and export revenue? Within domestic, I wanted to know how many terminals we have commissioned in FY 2025 and the revenue from that.
In domestic, there were some terminals we have commissioned. What we did was Scotland earlier, then Caribbean, and now we are Dubai. We are in Indo-Philippines now. We have bid for Andaman. We are not doing any project. There is a lot of noise there. Hello? Of the background. We have not done any project for a terminal in India as of today.
Sir, I just wanted to clarify. I meant the stations in India.
Fueling stations, you meant?
Yes. Fueling stations. How many stations we did and the revenue from them for FY 2025?
That number is not ready with me. In total, so far, 58 stations are there. Almost 60%-65% of these stations are installed by us. In the balance stations, where we have not won the full contract, we are supplying the storage equipment, dispensers, Cryo lines, and the VJ lines. In almost all 58 stations, we have some part of the equipment we have supplied. Almost 60% we have supplied fully.
Sure, sir. Sir, the breakup in domestic and exports for LNG revenue? Number? LNG export? 60, 40?
Around 60, 40.
Sure, sir. Thank you so much. All the best.
Thank you.
Thank you. The next question is from the line of Ashutosh Paraskar from Mirabilis. You may proceed.
Yeah. Hi, sir. Thank you for the opportunity. Dipin Gohan Desai from Mirabilis. Sir, I had a question on LNG. Although you just alluded to it in the last question, I just wanted to know your estimate and your guess on this that how many stations, given our order win rate and the pace of tendering, can we expect in this year? In terms of the number of stations, what do you think would be an ideal number to estimate for the current year?
Normally, whatever we have to pass, almost 8-10 stations are coming every quarter. Nevertheless, recently, MSRTC and Ultra, they have sent a very good number, almost more than 100 stations going to finish within the next five years. That is the progress. On average, per quarter, around 8-10 stations are getting installed.
Hello, sir. Sorry to interrupt you. But your voice is cracking.
Really?
Yes, sir. Now it is perfect.
Okay. Yes, sir. What I told you is each quarter, normally, 8-10 fueling stations are getting added. Recently, if you have seen, the MSRTC and Ultra again have a very ambitious plan of building stations for 100 numbers in two to five years. On an about 1,000 stations provided by Government of India. Mainly, PSUs like BPC and SPCLC are contributing to the stations. This is what the present situation is in the fueling station. But more or less, on an average of the golden quadrant station, this is 400-500 stations now the stations are available for fueling.
Got it. So what, 40-50 pumps per order wins per year can we estimate for a year? That is one. Also, another question which I had was on this similar question on this is how many stations are there as of now in the current order book which are under execution?
In current execution, almost around seven to eight are under current execution. One big order from Petronet is there, which is because of some land issues, they are just held up for some time. We are producing on the equipment and just waiting for the final clearance for dispatches.
Got it. Got it. Okay. Sir, second question which I had was on the tariff comment that you made, the impact on tariffs in the last quarter, in the last few days of the quarter. Can you give us an insight as to, let's say, what type of customers who are coming to you for renegotiation based on tariffs? Any kind of commentary on the customer profiling or is it on the disposable side or any other industry?
As per disposable, it is not a major concern to us. Only concern was on the industrial gas equipment. Normally, we are supplying industrial gas equipment directly to the customers. They have placed orders. Almost like 2 million or 2.5 million equipment were ready for dispatch in February and March.
However, some have given consent to, okay, whatever the tariff is there, as soon as we receive the vessels, we will pay for that and get the equipment cleared. Whereas few where the sites were not ready or the project were delayed, they were just taking a chance. If, suppose, something gets reduced or something gets more clarity, better later on. They are just kept it under hold for some time. Mostly now it will be getting cleared. Those were the few tanks which are around 2 million and 2.5 million, which we have to hold up because of this sudden impact of these tariff issues in the U.S.
Okay. So paper to assume, if I were to classify this industry, they would be more on the standard pumps side and more on the customers?
Sorry to interrupt sir, Ashutosh sir? May we request you to return to the question queue for a follow-up question as there are several participants waiting for their turn?
Yes, sir. I'll start with you.
Thank you. The next question is from the line of Bimal Sampath, an individual investor. You may proceed.
Yeah. Good afternoon. Two questions. One is, what is our CapEx for the current year, FY 2026? And second, I was told, I have heard in the market that whatever these tanks for automobiles we have supplied, there has been some issue. And we have recalled some tanks and replaced. Can you explain more on that?
Yeah. Yes. We had some operational issues at the fueling station as well as some equipment had some issues. We have recalled those few tanks. We have supplied and we have developed a new generation LNG fuel tank.
It is supplied to major OEMs now. The initial trials are very, very encouraging. Whatever the small issues were there on the operational side, because this is a new technology as such. The fueling stations are new. The people are new. The operators are new. All such infrastructure is getting developed for these fuel tanks. These were operational issues. A few were related to our equipment as well. We have plugged those issues and fixed all the problems. Whatever we have produced, the new, they are working fantastic. No issues now.
What is our CapEx?
It will be around INR 80 crore for this year, if I remember.
This Hyrel, these three, four projects, what is the quantum value of if we get the orders, what is the value of those? Because they had mentioned they are bigger than what has been ordered. Yeah.
Very, I mean, not right for me at this moment to tell you the numbers. But the projects are almost five to six times bigger than the present project we are executing.
Okay. Thank you very much.
Yeah. Thank you.
Thank you. The next question is from the line of Pritesh Chheda from Lucky Investments. You may proceed.
Yeah, sir. From a slightly futuristic point of view, the next three years, which are the bigger opportunities or which are the bigger sector areas which will generate growth or a larger business for us?
The major opportunities we are going to come is in the LNG and Cryo Scientific Division. Whereas the IG sector definitely will have a good growth because of hydrogen, helium, and ammonia, and other sectors. The major jump will come through the LNG prospects in India as well as in foreign countries. In the Cryo Scientific Division especially, we are expecting, rather the Government of India has declared, the third launch pad for the space department, which is a very big, I mean, project. We will be bidding very aggressively for this project as well. These are the few important projects which are coming up. Many other projects in the big science projects are there all over the world where we are bidding. As you know, there are very few manufacturers in the world for this type of projects, and INOX India is one of them. Our chances are much better as compared to our European and US competitors.
From a mixed perspective, we will see a slightly higher share coming from LNG and cryogenic versus industrial over the next three years. That is the one indication. Second is, when it comes to industrial, the linkage incrementally or historically or incrementally has to do with the industrial activities, right? Buying hydrogen, which is a newer area, which gets added. Otherwise, whatever is the industrial CapEx in chemicals or any other manufacturing link is where the industrial gas growth linkage should be developed.
Yes. Always. See, basically, the major additions are coming up in the steel sector now. Yesterday, I was in Industrial is putting a INR 40,000 crore investment for their new steel plant coming up in Maharashtra. There are many such private players who are interested to put the air separation plants.
That is going to be a big business because presently, India has a capacity to manufacture around 170 million-180 million metric tons of steel. By 2030, to cover almost 300 million metric tons. That will be a huge demand for cryogenic equipment because of the expansion in steel industry through ASU plants.
In industrial, which will be the biggest two sectors for us?
Biggest two will be steel and healthcare sector.
Okay. My last question is on the cryogenic side. Here, the linkage has larger share. Will be space, right, in cryogenic?
Yes. Space is there. Big science projects like CERN or nuclear physics research or maybe sort of the nuclear programs in Europe. These are the few big opportunities for us.
Okay. Sum total, what is the CAGR growth that you look at? Ma'am, I'm just completing the loop. Sum total, the CAGR growth, if you have to look at over the next three years, considering the discussion that we had, what it should be, sir?
Around 15%. Yeah. Around 15%-20%. 15% minimum .
Minimum. Okay. Thank you very much.
Thank you. The next question is from the line of Pravesh from Fourlion Capital. You may proceed.
Thank you for the opportunity and congratulations on getting a set of numbers. My first question is on what is your outlook for IMO tanks, given that's a relatively high-volume business globally? If you can give any indication on monthly numbers that you are targeting later this year, two years out, etc. Even now, we are competitive with the Chinese as mentioned on the Australian contract. The second question is on the adjacencies that you are looking at in terms of heat exchangers, walls, cool boxes, etc. Where are we on that journey? Thank you.
IMO is a very big market, frankly speaking. It is a very competitive market as well. As we grow in this business, the numbers will definitely run very high. So far, because of our space limitations, we were not in a position to take the bigger orders. Now we have a very good line in Taloja we have established for such products. We are very competitive now. We are producing the equipment much faster than what we could have produced earlier in our old plant. This business is a very big business. It is mainly dominated by China. What we have seen is if we manufacture in a serial production, we cannot directly compete, but we are just being league with Chinese.
We have a very good reputation with the customers. People prefer Indian products as compared to China products, even if it is 10%-15% higher in price. That advantage we are going to get. We do not say we will produce in thousands. In hundreds, definitely we will produce in coming years.
Thank you, sir. On the adjacencies?
On the heat exchangers and other things and maybe the projects which are already in line, we are talking to several parties. We are hopeful that in quarter one or quarter two, we will have some good orders in hand. Once it is coming, we will let you know.
Thank you, sir. All the best.
Thank you .
Thank you. Due to time constraints, that was the last question. I now hand the conference over to the management for closing comments.
Yeah. Extremely thankful to all of you for participating in this conference call. A very wide range of questions you asked. Hope we have answered to the best of our knowledge and the expertise we are having. Let us meet again after the quarter one is over. We are very hopeful that whatever the targets we have set for the revenue as well as the margins we'll try and achieve. The market is looking very strong to us. Let's see how we can capture this. Thank you very much for attending this conference call.
Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us. You may now disconnect your line.
Thank you so much.