Ladies and gentlemen, good day, and welcome to INOX India Q4 FY 2026 earnings conference call hosted by ICICI Securities Ltd. 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 a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar from ICICI Securities Ltd. Thank you, and over to you, sir.
Good morning. On behalf of ICICI Securities, I welcome you all to the Q4 FY 2026 earnings call of INOX India Limited. Today, we have with us from the management, Mr. Deepak Acharya, CEO, and Mr. Pavan Logar, CFO. 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, everyone. I welcome all our stakeholders, investors, analysts, and friends to the Q4 and FY 2026 earning call of INOX India Limited. I trust you had the opportunity to review our results, earning release, and investor presentation, which are available on the stock exchange and on our website. Joining me today is our CFO, Pavan Logar, who will later take you through the detailed financial performance, following which we will open the floor for the Q&A session. Let me begin with overview of the global economic scenario. Towards the close of FY 2026 and in the beginning of FY 2027, the global economic environment has been brimming with ambiguities. Geopolitical issues, evolving trade dynamics, and energy transition continue to reshape the calculus for capital allocation, infrastructure investment, and industrial policies across economies.
Tariff pressure and supply chain reconsiderations have added layer of uncertainty that businesses in our space must navigate in caution and precision. Despite trade tensions and policy uncertainty, global growth was 2.8% in 2025, driven by front-loaded trade, supply chain adaptations, and AI-related investments. While the growth in 2026 is estimated to be 2.7%, the ongoing West Asian conflict is creating headwinds through elevated energy prices, shipping disruptions, and weakened investor confidence. Talking about the Indian economic scenario, in the current challenging global economic environment, India stands strong. Growth increased to 7.1% in FY 2026, making it the fastest-growing major economy supported by robust domestic demand, relatively lower inflation, income tax, and GST rate reductions, and accommodative monetary policy.
Manufacturing and service drove supply side confidence, co-performance, although net exports weighed on GDP as imports increased. Private consumption rose to 7.0% year-on-year, bolstered by rising household incomes. Investment strengthened across both private and public capital expenditure. However, a prolonged West Asian conflict poses a significant risk to India. As a major energy importer, India remains exposed to sustained oil price increase, fiscal pressure from fuel subsidies, and rupee depreciation. With nearly 38% of remittance of inflows originating from Gulf economies, any labor market disruption, there will be further strain in the forex reserves. India's macroeconomic buffers provide some insulation, but energy diversification, fiscal prudence, renewable energy acceleration, and trade liberalization through FTAs remain critical to sustain resilience in an increasingly fragmented global environment. The fundamental opportunity this creates for capable, well-positioned companies remains firmly intact.
Despite the global hiccups, at INOX India, we find ourselves at the juncture of reinvigorated growth, driven by India's industrial growth ambitions and the global transition towards cleaner, more efficient energy systems. The rising adoption of LNG as a transition fuel, the gradual yet accelerating development of green hydrogen infrastructure, and increasing investment in defense and aerospace cryogenic systems are not short-term trends, but a long-term structural opportunity. We believe that INOX India is well-positioned to capitalize on these opportunities through its engineering expertise, diversified capabilities, and expanding global presence and footprint. The global industrial growth and LNG landscape continue to evolve rapidly. Shipping companies are increasingly transitioning towards LNG-powered vessels. Aerospace infrastructure requirements are scaling up globally, and emerging applications such as data centers cooling are introducing new business avenues.
With our strong capabilities across cryogenic engineering, LNG infrastructure, industrial gas solutions, and advanced scientific applications, INOX India remains well-positioned to participate meaningfully in these evolving high-growth sectors. Business performance overview. Q4 and the full year FY 2026 reflected a strong operational momentum for INOX India with healthy revenue of INR 1,632 crore. Growth across key business segments. Our EBITDA margins 23.8% for FY 2026 remained in line with or better than the guidance provided earlier, demonstrating disciplined execution despite headwind arising from the U.S. tariffs, global logistics disruption, and geopolitical uncertainties. Our diversified business model, expanding geographic presence, and focus on high-value, tailor-made, technologically complex products continue to strengthen our competitive position and enhancing long-term growth visibility. I will now take you through the segmental highlights.
Let me begin with our largest revenue contributor to industrial gas solutions. The segment delivered another strong quarter and a record year marked by high value order wins, important volume milestones, and growing global reservations. During Q4, we received a significant aerospace order from a leading U.S.-based private space company with a total order value of approximately INR 200 crore. We are expecting more high-value orders in Q1 FY 2027. This order is a direct outcome of our proven execution capabilities and reinforces the growing confidence that global aerospace players have in INOX India's engineering expertise. transport tanks also achieved a significant milestone in FY 2026, with annual sales exceeding 300 transport tanks and semi-trailers for the first time in the company's history, surpassing the earlier benchmarks.
We continue to witness strong order inflow across the transport tanks, ISO tanks, and standard industrial gas products, reinforcing our confidence in sustaining this growth momentum in the years ahead. On the disposable cylinder front, I am pleased to share that despite the challenging U.S. tariff environment, we crossed the milestone of dispatching over 2 million units during FY 2026. This is a remarkable achievement for our team and reflects the sustained demand for our products across the international markets. In liquid cylinders and Cryoseal brand continue to gain strong market acceptance with a record order intake during this year. Demand remained robust across both domestic and export market. I'll now share the details of business in the LNG solution segment. This segment had a breakthrough quarter and a defining year.
One of the most significant highlights was the order received from the Cochin Shipyard, one of India's premier shipbuilding companies for LNG fuel tanks to be installed in the LNG-powered ships being built for one of the world's largest shipping companies. This is a landmark order for INOX India and marks our entry into the marine LNG ecosystem, a market currently undergoing a major structural transition towards the cleaner fuels. The order involves six LNG tanks of 800 cu m with stringent execution timeline. In addition, we received LNG stations order from Gujarat Gas and continued dispatches of LNG fuel tanks to the OEMs. While the adoption in the LNG truck segment has witnessed some near-term challenges, we believe that the long-term opportunities remain robust, supported by favorable economic conditions and regulatory tailwinds.
Our LNG semi-trailer business in India continue to maintain market leadership with more than 250 LNG semi-trailers currently operating on Indian roads and commanding a dominant market share. We have also dispatched the first batch of five, 1,500 cu m tanks for the Bahamas Mini LNG Terminal, reaffirming our capability to execute large complex LNG storage infrastructure project in timely manner with highest quality. I'll now take you through the updates from the Cryo-Scientific division. The Cryo-Scientific division continued to strengthen its position as a trusted partner for highly complex global scientific infrastructure projects. During the quarter, we received a repeat order from the ITER, France for modification works related to cryostat panels, further validating our deep execution expertise in the world's most ambitious fusion energy projects.
We also completed the production of highly complex LOX tank for submarine-related applications, highlighting our capabilities in mission-critical cryogenic engineering and advanced defense applications. I will now take you to the beverage keg business. The beverage keg segment delivered exceptional year-end and a strong close FY 2026. During the FY 2025-2026, we recorded 13% increase in keg dispatch over the previous year, reflecting continued market expansion and strong demand momentum. We have now secured approvals and active orders from three of the world's leading global breweries, namely Heineken, AB InBev, and Molson Coors, collectively representing more than 40% of the global beer market volumes. This position is strongly for the next phase of growth in this business. In FY 2025, 2026, we have supplied kegs to Heineken breweries in Bulgaria, Croatia, and Reunion Island.
We also secured first order from Molson Coors USA and also repeat orders from the non-standard kegs from Messrs. Urban Germany. Our distribution partnership in Germany, Poland, and United Kingdom are now operational, providing us with direct commercial access to the European market. We are also increasingly focusing on specialized non-standard keg variants designed for niche applications. These products yield higher margins and help differentiate us from commodity-oriented players in this industry. True to our vision of remaining historically futuristic, we keep evolving newer opportunities in advanced business areas. One of such opportunity is data center cooling. I'm happy to share that we have signed an MOU with European company to jointly develop liquid nitrogen, liquid nitrogen-based cooling solution for the data centers. This is currently an early-stage R&D led initiative, and we expect meaningful development over the next six to 12 months.
With the growing energy efficiency requirements in modern data centers, we believe that cryogenic co-cooling technology could emerge as a compelling and scalable opportunity for INOX India in the years ahead. At INOX, we strongly believe in building our own capabilities consistently. In line with this, I'm happy to share that we are developing a new facility at Kandla. We have acquired approximately 7 acres of land near the Kandla port on a 30-year lease basis. The facility is expected to be commissioned within approximately nine to 10 months. Its strategic proximity to the port around 2.5 km away offers a significant logistic advantage. The Kandla facility will substantially enhance our capability to manufacture ultra-large tanks with diameter 8-9 m, length up to 60 m and weight up to 500 tonnes.
This expansion opens opportunity for LNG mega storage tanks, large-scale aerospace tanks and several other high-value large format products that are currently difficult to execute at our existing facility. This year saw a strengthening of revenue mix from the geographical viewpoint as well. Revenue contribution from North and Central America increased from 14% in the previous year to approximately 26% in the FY 2026, driven by LNG terminal related orders, aerospace orders, disposable cylinder exports and LNG related shipments despite tariff related headwinds. Our revenue contribution from European market continue to improve because of the opportunities in LNG and Cryo-Scientific area. In the Middle East, Southeast and Far East, our revenue has improved from 8% in FY 2025 to 10% in FY 2026 in spite of global disturbances in this region. The key takeaway is that demand fundamentals remain robust across the geographies.
The primary constraint continue to be logistics and supply chain related challenges rather than the slowdown in the market demand. Outlook. As we look ahead FY 2027, our strong order backlog, expanding global customer base, growing share of high-value engineering products and capacity augmentation at Kandla collectively places in a comfortable position to sustain and accelerate our growth trajectory. We remain focused on operational excellence, innovation-led growth and delivering long-term value for all our stakeholders. Thank you for your continued trust and support. I will now hand over the call to Mr. Pavan Logar, our CFO, to take you through the financial highlights. Thank you very much.
Thank you, Deepak, and good morning, everyone. I will now take you through the financial highlights for Q4 and the full year ended March 31, 2026. For Q4 FY 2026, total income stood to INR 475 crore, representing growth of approximately 24.2% on year-over-year basis, driven by strong execution across key segments, including the LNG terminal project related sales, large aerospace order and record transport tank dispatches. Q4 FY 2026 is very special to us as we have achieved higher ever quarterly revenue, export revenue and order booking. Adjusted EBITDA stood at INR 108 crore, up by 13.4% YoY basis, reflecting improved operating efficiency and better product mix. Adjusted profit after tax was INR 72 crore, growing by 9% YoY, supported by margin expansion and robust volume growth.
For the full year, FY 2026, total income stood at INR 1,632 crores with growth of approximately 21.2% over FY 2025, reflecting healthy performance across Industrial Gas, LNG, Cryo-Scientific and Keg division. Adjusted EBITDA for the full year stood at INR 380 crores with adjusted EBITDA margin of 23.8%. This year recorded highest sale for LNG segment and thereby total sales of the company. Adjusted PAT for the full year stood at INR 261 crores, registering a growth of 19.3% over financial year 2025. As of March 31, 2026, our order book stood at INR 1,514 crores, providing strong revenue visibility for the coming year, coming quarters.
Of the approximately 60% is from exports and 37% from the domestic market, reaffirming our strong global presence. Our total fund availability as on March 31st, 2026 stood at INR 257 crores, providing ample headroom to support the Kandla facility investment, ongoing project executions and other strategic initiatives. This concludes my remarks on the financial performance for Q4 and the full year 2026. I would now request the moderator to open the floor for question and answers. Thank you.
Thank you very much. We will now begin the question answer session. Anyone who wishes to ask a question may press star one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use handsets when asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have first question from the line of Mr. Abhinav Nalawade from ICICI Securities. Please go ahead.
Hello. Thanks for the opportunity. My first question on the order inflow front. We had one big order worth over INR 200 crore during the quarter, which kind of boosted the order inflow. What is the pipeline for these big orders in the coming quarters and, FY 2027, what will be your guidance for order inflow?
Yeah. Well, we have backlog of around INR 1,514 crore. Out of which, I told you about this, the order from the aerospace company is around INR 200 crore. Going forward in the Q1 or maybe Q2, we are expecting few more orders of similar nature and similar value very soon now, and that will improve our order booking for this FY 2027.
Around INR 400 crore-INR 500 crore could be a right assumption for quarter, right? In terms of order inflow.
Your voice is cracking. I'm not getting the clear voice.
Is it better now?
Yeah. Slightly better. Yeah.
As I was saying that around INR 400 crore-INR 500 crore of order inflow estimate for, per quarter that could be a right number, right?
Yeah. Yeah.
Given the big order that you're expecting in Q1 and Q2.
Yes. Yes.
Okay. My second question is on execution front, on the revenue front. How is Q1 going currently? I mean, you mentioned that there are logistic challenges. What is the revenue one can expect in Q1 and, you know, going forward if the things normalize for FY 2027?
We will be, our revenue will be in line with our target of the next year. That is almost like around INR 1,600 or INR 1,632. We have targeted around 18%-20% growth. In similar fashion, our quarter revenue will be increasing in that fashion. Our order booking will be also growing with similar speed of around INR 450 crore- INR 500 crore every quarter.
Understood. Does this 18%-20% growth bake in that, you know, things normalize in coming quarters in terms of war and all?
Yeah. War slightly impact is there. We are not depending only on the one region or one area. We have multiple products, multiple geographies we target. Slight plus minus happens into this Middle East area, but that will be compensated by other areas. We don't find any much of a impact of this.
Understood. My next question is on Bev Keg segment. What was the revenue contribution from this segment, and how much was the dispatch for FY 2026? What is the order book looking like?
Yeah. Just a minute. One second. On Bev Keg for FY 2026, our order book was around 65,000 keg, and sales around 61,000 units. Value-wise, slightly it is similar to last year. Basically because there are different models into this. We had sold more of a 20 L keg than the 30, 50 L. There is a component which is called as the spear, which is almost like [EUR 7- EUR 8 or EUR 10] component. People have thought that they will fix it at their place. We dispatch the kegs without the spear. That's why slightly we have increased the volume by 31%. Our sales is almost similar like last year.
Understood. My final question is, what is your outlook on the LNG tanks from order inflow perspective in FY 2027? There are a lot of things happening with regards to energy security. Overall, what's your take on it?
See, as you see, there are, like, various challenges, LNG coming from Qatar and all that places. Definitely it has improved our situation. Basically because as the delivery of LNG coming from Australia and U.S.A., it takes little more time. The storage capacity at all places where people have installed the LNG facility, they will improve upon. We will have more of a storage orders and transportation equipment requirement going forward, till this Qatar solution is resolved, which will take few years to complete that facility which is damaged during the war.
Understood, sir. Thank you. Thanks a lot. Very helpful. Thank you.
Thank you.
Thank you. We have next question from the line of Pritesh Chheda from Lucky Investment. Please go ahead, sir.
Yes, sir. I have two questions, one related to the LNG. You know, we have this whole string of equipments which we show in the slides, right from storage to transportation to smaller LNG tanks which are to be put up on the vehicles. Just storage and transportation, what is the size of the market, you know? At INR 459 crore that we have done last year, what will be the market share? Do we do these small transport tanks as well?
Yeah, we do the transportation tanks. Normally the LNG density is half that of the nitrogen. The smallest size what people prefer is around 46 scale tank. However, we have smaller capacity also LNG trailers where people require less of LNG for the transportation. That is not a standard model or a hot selling product. 46 scale trailer is the most optimized trailer, and more than 250 trailers are on the road now. On the LNG use and this from the storage point of view, the LNG storage vessels are used for satellite application, even for LNG filling station and LNG station. The demand of all these three is going to increase, automatically the storage requirement will increase.
Presently, because of abundance of LNG, people were just keeping one tank of 56 KL or 113 KL. Now going forward, people are asking for at least two tanks, one standby tank for their consumption so that they are not stock out is not there. These stations are directly connected with the people, and if there is a large queue of tanks for filling purpose and suddenly your tank is empty and you don't get liquid, that is very difficult situation for them. We hopefully think that more and more storage requirement. Definitely, if storage requirement is there, the liquid has to be transferred from the terminal to the customer station by the transport equipment, and the trailer requirement will go on in the coming year now.
This INR 459 crore LNG, this is pure India business for you or there is export in this?
No. This is export as well. You can consider almost 60% is export and 40% is the local, roughly.
Okay. Can you give some color on the size of the India market at least, you know, when we have involved or the market share?
For LNG?
Yeah, yeah, for LNG, sir.
We have different products and different market shares for different products. On an average, our market share for the LNG products in India is almost like 60%-65%.
Okay. Any possibility to know the global market share?
For LNG?
Yeah, yeah, LNG, sir.
This is in single digit only as on today. Maybe 6%-8%.
Okay. My second question is on, will this division grow much faster than the company level growth?
Yeah, this division has a good potential to grow because of several things, especially the prices of LNG. Even though the diesel prices and petrol prices we are expecting a rise, the LNG price will also rise, but the ratios will remaining the same. LNG being a clean fuel and almost advantage of 15%- 20%, this LNG division is going to grow faster than our standard products.
Okay. My second question is on the beverage keg side. When we sell 61,000 kegs, you know, this is India number or this includes export number also?
This is including export and India.
Okay. Can you tell the total global kegs market and growth rate there?
The total number of kegs available as on today is 120 million kegs are available in the global market. There is a 4%-5% replacement demand. Average demand in a year is around 4- 5 million kegs. There are two, three manufacturers already in Europe and one in China, and we are the second in Asia.
Okay. Capacity for us in this will be?
Presently, we have installed a capacity of around 300,000 kegs a year, and presently we are just one-third of the capacity.
Okay. When do you see full utilization?
Whatever we have supplied the kegs to the industry, to Heineken, AB InBev, now to Molson Coors and many of the small breweries. I'm happy that everywhere the kegs what we supplied are approved by the customers and, they will definitely take some trials initially and will go for a full swing in coming year now.
Okay. What aspiration for a market share, what will be your aspiration in that 4- 5 million kegs?
We have put a facility of 1 million kegs.
You just said 300,000 keg, right? Capacity for INOX.
That is presently, but our building point of view, everything point of view, we can go up to 1 million keg without any problem.
Okay.
Adding some machinery, definitely.
Okay. Okay. Okay. Thank you. I'll come back if I have more questions, sir. Thank you.
We have next question from the line of Mr. Jay Neegandi from BIT Capital. Please go ahead.
Hi. good morning. I hope I'm audible.
Yeah.
Yeah, great. We said that we have made a.
Please continue.
Sir, we have lost the line of Mr Jay Neegandi.
Okay.
We have next question from the line of Mohit Kumar from ICICI Securities. Sir, please go ahead.
Yeah, hi. Good morning, sir, and thanks for the opportunity. My question is around the working capital. The working capital has increased meaningfully in this particular fiscal. It used to be INR 731 crore. By FY 2025 it has gone up to INR 990 crore, and primarily one of the driver is contract assets. Even if I remove the contract assets, I think there's a meaningful accretion. How should we think about the working capital in FY 2027 and FY 2028?
Mohit, actually, you know, our project orders are now increasing a lot, we have, the order book of more than INR 1,000 crores in projects. In projects what we are doing, we are taking the orders with, some, payment terms, which is on the basis of various terms. 30%, 50%, 60%. On POCM, as per the ICICI guidelines, we have to book the revenue as per the percentage completion method of how much project is completed. On that basis, we book the sales. The collection is always happens as per the payment terms of the order. That is why little bit contract asset is increasing, and it will remain like this only because, you know, the project orders are increasing now. Still, you know, my advances, if you see advance from customers has increased a lot, and at present we have advances of around INR 500 crores with us.
Expected to stay at similar level, right, as you go forward?
Yes.
Is that a fair expectation?
Although, you know, the projects are there and big projects are coming now. In big project, definitely I have to book the contract assets accordingly, and due to that, little bit may be there. Overall it is, you know, my inventory is in totally in control. Everything is in control.
Understood. My second question, sir: can you just help us with the market for industrial refrigerant cylinder which you're exporting to U.S.? Was the market stable in FY 2026 or was there any growth compared to FY 2025? How do you see this number in FY 2027, FY 2028? Is there a chance of some growth or it most likely flat?
Yeah. This product is, you know, it's used for storage of refrigerant gases. All these major refrigerant gas manufacturing companies, they have a quota system. They cannot produce more and they cannot sell more also. The growth is maybe very marginally, if it will improve. Perhaps our market share can improve if we target few more customers from U.S. market and compete with the other competitors. That way, we have increased our sales as compared to FY 2025 to in FY 2026. We are targeting customers which are not buying or which are buying less quantities from us for the FY 2027, and hopefully we will gain over there. That is what is the present situation for disposable cylinder. We have sold more than 1.5 million cylinders to U.S. in last year.
Understood. My last question, sir, can you just help us with the outlook on the Cryo-Scientific division ordering for FY 2027, and where is that ISRO launch pad tender is currently?
Cryo-Scientific division, we have ample of opportunities, not only in India, but all over the globe. There are very few players who operate into this region. INOX India can be among one, on a You can count on finger, perhaps maybe two, three such suppliers are there. We are one of them. Our advantage is our strong engineering execution and our competitive offers what we are giving. We have a strong belief that Cryo-Scientific division will grow substantially in coming years. On this third launch pad, yes, the tender will be coming by end of this quarter. We have to bid, maybe the quarter two, and maybe by end of this year, some outcome will come for the order.
Understood, sir. Thank you, sir. Best of luck. Thank you.
Thank you.
Thank you.
We have the next question from the line of Mohit Surana from Monarch Networth Capital. Please go ahead.
Sir, first of all, congratulations on a good set of numbers. My first question is with respect to the margins. Our profit margins have come in a bit. I mean, can you just give some understanding, why is that?
See, Mohit, if I told you when you visited our factory also. We have always a product of standard and non-standard tank. Quarter- to- quarter, if you see, there'll be slight variation in the margins because of the product mix variations. However, if you see year-on-year basis, we have always maintained our margins of 21%-24% what we have given the guidelines. This year-
Yes.
We, for year, total year project is 21.6%. Last year it was also the same thing. We are in the same bracket. I don't think there is a much variation. Our products are very difficult to I mean, you can't control like that. Based on the market requirement, we have to push the products.
Understood, sir.
Plays a vital importance in the margins.
Understood. Sir, the Cochin Shipyard order, can you share the order value and what's the completion timeline for this order?
Yeah. We got six tanks order for the six ships of around 800 cu m tank. The order value is around INR 85 crore, and we have to complete between two to three years. The first, as the ship gets constructed, we have to supply. You can say, in a year we may have to supply around two numbers tanks to shipyard.
Understood, sir. Sir, for The Bahamas, I mean, how much have you already supplied for The Bahamas order and how much is pending?
We had initial order of around INR 230 crore-INR 235 crore, and we got some additional order because of some changes. The total order value was around INR 240 crore. We have supplied around INR 160 crore in this year. Balance will be supplied in FY 2027.
Understood, sir. That's all from my end, sir. Thank you so much.
Sure. Thank you, Mohit.
Thank you. We have next question from the line of Saif Sohrab Gujar from ICICI Prudential AMC. Please go ahead.
Thank you for the opportunity, sir. On the data center cooling tie-up, sir, you mentioned with one of the OEM, can you just throw some more light on what sort of work or role you're trying to play in this tie-up? Is it more like a joint system integrator or this is just for supplying some of the components, capabilities you already have, say the piping and all? Yeah.
This is I can say it's basically R&D project what we are doing initially. This company is one of the pioneer company in the IT infrastructure, manufacturing the, you can say, the racks, the subcooling system and other things. They are already into the existing business, and major businesses they are doing in this sector. When we are discussing with them, they said the major of power consumption is the main thing for cooling purpose. We suggested them if we can cool the because the chips and the microprocessor has to be cooled at a particular temperature. There, if you use liquid nitrogen for cooling, that can improve.
We have recently attended a exhibition in Europe as well, and got lot of feedback of how it has to be done. We have started the project of understanding how we can develop a model or product for them. This is under trial initial purpose, and it may take six to one year time to develop a product for this application.
Sir, you are trying to be a solution provider in this, not just a component supplier to this OEM that I understand, right?
No, no. The entire solution. They will be manufacturing the racks and other systems, and we'll be providing them the cooling solution. Together we will offer it to the customers.
Sure. Got it. That's it from my side. All the best.
Thank you. We have next question from the line of Preet Jain from Nivesh. Please go ahead.
Hello.
Hello.
Sir, am I audible?
Yeah, yeah.
Sir, congratulations on good set of numbers. My first question is on ITER side. Sir, ITER has nine vacuum vessels thermal shield, and INOX has now received repair orders for what appears to be all of them by Q1 FY 2026. Can I get to know if there are any new scope of work being discussed with ITER beyond this thermal shield repair?
Yeah. ITER work will continue for next seven to eight years more. Presently we have that repair work which is going on, which will be continued for one and a half year at our shop. We have the work for installation that work at site. Besides that, there are many such equipments which they require on a short period notice, and they are directly contacting us because of our good quality and timely delivery of products. There are many such pipeline work or maybe some improvement work which is required, and they are contacting us and we are doing for them.
Can you give us a ballpark figure of how much quantum of orders are we expecting from them?
On an average, going forward, at least INR 50-INR 60 crores we should get on a regular basis for next at least five years.
Okay. Thank you, sir. Another question is on, you mentioned in your PPT about Highview Power, liquid air energy storage system. Basically, the first Carrington order which we supplied to them was worth INR 935 million. Now I want to know that as Highview Power management has indicated that Highview has plans for four more projects by 2030. Is there any order visibility in that area in coming two to three years? What will be the per project tank value if we get the first order from them?
Yeah. We have bidded for all the projects, what they require. Perhaps the order value will be quite big. They are just waiting for this first project getting commissioned and seeing the fruits from this first project. Favorably, maybe another six to eight months, there's some one more Additional at least one project will come up now.
Okay. What will be the quantum of that order?
It'll be very difficult to say at this moment, because what they order at this moment to us. Definitely they are asking for some additional work, besides what we have supplied to the Carrington project.
Okay.
So-
Sir, about the LNG fuel tanks, we described our product. China has a lot of penetration of LNG tanks moving in their country. Don't you see import as a risk if basically India as a market for LNG tanks will grow, won't Chinese player will dump their products as they have as they have specialized multi capacity in that area? Are imports a risk for us?
No. See, there some initially some tanks had come to India, I do agree with you. Going forward, there is a regulation in India called as a PESO, which governs the incoming flow of such tanks. There is no shop in China which is approved by PESO as on today. No further more tanks can come to India because it has to go with PESO approvals, number one.
Okay. Got it.
Number two, these tanks are to be utilized on the trucks or the buses, which are moving all. It requires regular maintenance, periodic inspection, and support from the vendor as well so China-
Okay.
Finds it to really manage as so. Whereas we have our service centers across north, south, east, west, and people are very happy with the service provided by INOX India. Going forward, I'm quite confident that we can beat the Chinese on competition from these two aspects. One is because every truck has a different dimensions, so we have to design the fuel tank according to their needs. In China-
Okay.
They will say, this is my standard. If you want to buy. Take it, otherwise forget it. In our case.
Okay, got it.
We design them to their requirement, we service them, we support them, because this is a new technology altogether.
Okay.
We have put our people at Tata and Ashok Leyland on their conveyor line to see that they don't face any problem. Such type of services cannot be offered by Chinese people.
Got it, sir. Thank you, sir.
Okay.
Thank you. Reminder to all the participants, please restrict yourself to two per questions. We have next question from the line of Sajal Kapoor from Antifragile Thinking. Please go ahead.
Yes, thank you for the opportunity. I've got two questions, please.
Yes.
First is, what aspects of cryogenic systems integration and engineering have the steepest learning curves? Realistically, how many years would a serious competitor need to kind of, you know, replicate INOX India's capabilities at comparable reliability and scale?
A very million dollar question you are asking me. It depends on the type of people you are investing into it. Okay? If the skills are already available with the person, then they can do it. It takes a long time for the approval of the plant, the equipment, prototypes have to be produced. There is not only one product, N number of products. I can say there are more than 30, 40 type of approvals and certifications we are having. This is on a regular basis, it has to be renewed and reviewed. It is a quite cumbersome task. In my opinion, even if you start with highly skilled people and put a plant which is a modern day plant, it will take at least 10-15 years to replicate this facility.
Understood. Sir, INOX has demonstrated, you know, capability across many domains: LNG, hydrogen, aerospace, scientific cryogenic systems at the prototype and project level. What capabilities or processes give you confidence that, you know, these can reliably scale into kind of a repeatable industrial businesses? Because I've seen many companies are very good at the prototype or initial stage but the industrial scale and the commercial scale manufacturing is a completely different ballgame. In your experience, how many- Can you give us some sort of a data point that, you know, we got 100 prototypes across our last 10 years history, and we converted X out of those into industrial scale. That kind of a number is what I'm looking at. It's not easy to convert a pilot or a, or an experiment scale project into commercial scale.
Our, our methodology of working for prototypes is different. What we do is we listen to the customer, we listen to our marketing guys, what products are required in the market, and accordingly we develop. It is not we just develop the product and then find the application. No. We just have the application, and we develop the product. For example, I will tell you one simple example of CRYO-BIO, which is a very good product for artificial insemination programs. There was a need 25 years before that India needs to have a higher output of or yield from the, for milk from an cow. That was the project. There are very few people in this country who can supply such a solution. We developed that solution.
Today, 95% of the insemination program is through a dewar, which are supplied by us for this project. Similarly, the healthcare sector, we have supplied so many products during COVID times. Cryogenic tanks, liquid cylinders, so many things. In our case, I can say around 95% of our products what we develop is commercialized. If there is a commercialization possible, and if there is a need, then only we develop the product.
Understood. That's helpful. Thank you so much. Thank you.
Thank you. We have next question from the line of Hetal Shah from Dalal & Broacha. Please go ahead.
Yeah. Thank you for the opportunity. Just a couple of questions. Firstly, could you provide the revenue share for beverage kegs and disposable cylinders for FY 2025 and 2026? Would it be fair to assume if their share in the revenue which increases our margins would control margins would decline? Secondly, sir, any update on the ISRO third launch pad? Yeah, that's it from my side.
For the kegs business, FY 2025 was around INR 27.15 crore, whereas FY 2026 was around INR 26.13 crore. I told you though the volume has increased from 46,000 to 61,000, the container was like 20 We sold 30 and 50 more in FY 2025, whereas we sold more of 20 L kegs in FY 2026. On the disposable cylinders, I don't have the correct number, but something around INR 135 crore or something on FY 2025. This year we have just reached around INR 150 crore. More than 2 million cylinders we have sold in this one. On the ISRO, yes, the RFQ is on the way, and hopefully in another one month time we should have the RFQ, and ordering will be placed in the next year beginning. This is what is the present situation.
Got it, sir. Just one last question. Sir, what percentage of the current order book is in the coming one year, could you quantify that?
Pardon?
What percentage of the current order book would be executable in the coming one year? Is it possible to quantify that?
Yeah. Order book of our pending order of around INR 1,514 crore. Out of that, at least INR 1,200 crore will be executed this year.
Fine, sir. Thank you, sir. That's really helpful. All the best.
Sure.
Thank you. We have next question from the line of Eshwar from ithought PMS. Please go ahead.
Hi, sir. Am I audible?
Yeah, yeah.
Thank you for taking my question. I had my question was regarding the Highview Power order. There was an article which suggested that Highview, they raised GBP 300 million for this project for from U.K. Infrastructure Bank and the U.K.'s utility.
Correct.
How much would our contribution be in this project? Our equipment contribution.
We are supplying only the cryogenic tanks for storage of liquid air. That way our contribution for the entire project is not much in the value-wise. Definitely from the technology point of view, this has got a importance. Going forward now we are discussing with them for three, four projects, where the CapEx will be much higher from the cryogenic point of view because they are relied and they have understood our capabilities now. Going forward, we'll definitely have more scope in the whole project because this is mainly a cryogenic project. Besides that, there are many equipments which they are manufacturing somewhere else, but we have also offered them the non-cryogenic equipment for their requirement. Let us see how does it come up in future.
Yes, sir. The second phase, which Highview is planning, which is in Scotland, it is almost eight times bigger.
Yeah.
Can we assume that our order would also be eight times bigger from Highview for the next project?
The tank sizes are very, very big. We have given them a solution, which we can, some site work as well. They are happy with our proposal. Let us see. You are correct, the size of the value or the order value will be around eight to 10 times of the present order booking we have.
Okay, sir. Let's say, the capital cost for such a liquid air storage plant, would be INR 100. How much of that contribution, how much rupees would be cryogenic storage tanks?
It will be around 20%-25%.
Oh, okay. Okay, sir. I also wanted to understand, now that we have dispatched the first lot for our, mini LNG terminals in The Bahamas.
Could you provide more color on the pipeline for such more mini-LNG projects? Does this success of The Bahamas project open doors for similar island nation energy projects? Do you have any visibility there?
Yeah, we already received two small orders from The Bahamas, small islands. The two orders which we have received is under construction now. We are targeting few more in various countries now because of our success of our the small scale LNG terminals projects in Scotland, then Caribbean, now The Bahamas, and two more orders in Bahamas we have received recently. People have understood the importance of this, and the majority problem in the islands is the electric power. If that power is taken care with a green method of manufacturing, I think people are very much interested in this type of projects.
Okay. Okay, sir.
Mr. Eshwar, sorry for the interruption. Please join the queue for the follow-up question. Please join the queue.
Sure, sir. Sure. Thank you.
Thank you.
Cool.
We have next question from the line of Divyam Doshi from Pragya Securities . Please go ahead.
Congratulations on the great set of numbers.
Thank you.
I just wanted to ask you that we had discussed an order from MSRTC bus conversion, right? Is there any update on that? Also on the Starbucks keg for coffee. Is there any update on that?
Yeah. MSRTC. There's no noise.
Sorry. Yeah.
Yeah. On the MSRTC, whatever equipment we have supplied, they are running successfully. The trucks are running every day. Sorry, the buses are running every day. Unfortunately, that customer is not. Aggressive, and he has some different mindset. We are not pushing that customer very hard because of the payment terms and other things are also very difficult with that party. Beyond that, we don't have much information, but I understand they are working somewhere other than INOX now.
Okay. On the Starbucks keg, coffee kegs?
Yes. Yes, Starbucks, we have supplied the samples and it is successful. Hopefully in this quarter we should get some trial orders.
Okay. One last question that, Can you give me an update on the LNG installed tank vehicles and fueling stations? Is there any big orders for fueling stations in the near term?
Fueling station awarded as on today are almost 70. The fuel tanks are, in put together around 1,500+ trucks are running on the Indian routes.
Okay. Is there any big orders we have or are we in talks for?
We don't have much big order for both LNG fueling station as well as the fuel tank. Going forward, there are two, three companies which are venturing into a big way into this business, and we are tracking them for our orders.
Okay, sir. Thank you so much. I'll join back in the queue.
Thank you.
Thank you. We have next question from the line of Prakash Kapadia from Kapadia Financial Services. Please go ahead.
Yeah. Thanks for the opportunity. I had one specific question. You know, last three years, if I were to look at the revenues, they have grown at 18%. You know, cash flow from operations are not growing. You know, in 2023, on a sales of INR 966 crores, operating cash flow is INR 177 crores. Today on, you know, sales of INR 1,587 crores, cash flow from operations is INR 116 crores. Even last year, you know, with the 21% sales growth, cash flow from operations is actually lower than INR 25. You know, what is leading to this decline? You know, given the order book of, you know, 50% industrial gas, 28% from LNG and 22% from Cryo-Scientific, how should we look at operating cash flow on a going forward basis?
Yeah. Actually, you know, operating cash flow, we are, thing is, especially, you know, the CapEx every year we are doing CapEx of more than crores from last two, three years. In the coming year.
CapEx doesn't come in operating cash flow, nah?
But, uh-
I'm talking of operating cash flow, not free cash flow.
Okay. Another thing is, you know, we are now, because increase in the order book, we are getting more and more project orders, big orders. In big orders what happens, the investment is very high and it is going on as per the POCM method of calculation for booking the sales. The payment terms in these orders are on various stages. When the stages are completed, then only we get the payment. The investment is high and the payment receipt cycle is as per the payment terms agreed with the customers.
My contract expense is little bit high. Due to that my operating cash flow is little bit lower. Otherwise, my inventory is controlled. My vendors, you know, because of this order book, we are paying to our vendors very timely and our vendor payment is very strong now. That we can we doesn't face any problem of from the material side.
Pavanji, to understand this better, you are saying if, you know, I have a project of, say, INR 100 crores, and as per, you know, billing terms, till the time that INR 100 crores is not fully executed, you cannot, you know, have any, you know, cash flow related stuff in your accounts?
I just give one example. INR 100 crores.
Yeah.
Order of INR 100 crore.
Order book.
Order book is-
From a project business, right.
Give an example of INR 100 crore. I got a project order of INR 100 crore, and as per payment terms, I got advance of INR 50 crore.
Right.
I already completed the project of INR 60 crores. Okay?
Right.
In the WIP INR 60 crores, whereas I collected only INR 50 crores. What happens to the INR 10 crores? INR 10 crores invested in from my pocket.
Okay.
Till the next payment terms arise. We are having the payment terms of 10%, 30%, 50%, 70%, 90%, and last 100%. It depends on the payment terms which we agreed, whereas production goes on the regular basis. Some product may be completed 65%, whereas the next payment terms is 70%. Unless I complete with 70%, I will not get balance 20%. Because of that, what happens, project orders, we have to collect as per the payment terms agreed only. Due to that, our operating cash flow is little bit less.
Pavanji, you know, given our varied businesses, varied projects and, you know, multiple segments in which we operate, it should get offsetted over a period of time. Now, see, I'm not looking at one specific year. I am looking at one year, two year, three years.
I know.
Definitely growing. You know, sales at the cost of cash flow is happening. Are we okay with that or is it a business mix which is driving it? I'm just trying to understand it better to, you know, forecast how would that remain. It should get normalized with, you know, multi-product lines, multi-stage execution. You know, we are a, you know, contract-driven company. I understand that, a project-driven company. You know, various stages, various orders come, various orders get executed. That should improve, right?
Right. Right, right. From that way. You know, my product mix is changing. My product mix is changing. My standard tanks is reducing, and my non-standard orders are increasing. If you see earlier, it was just 30% project orders. Now we have more than 60% project orders in our order book. The change in product mix is there. My project work is increasing, and my standard products are not increasing so much than the non-products, non-project orders. My project orders mix is arising. More than 60% now at present is my project orders.
We would expect this kind of, you know, not too much of operating cash flow growth if project business continues to grow the way it is.
Um, if-
It would remain more or less in that range.
Yeah.
Mr. Kapadia, sorry for the interruption.
Yeah.
Please come back in queue for the follow-up question.
It's only one question. There is no follow-up question. I'm just talking about the operating cash flow only. There is no follow-up question from my end. We are just talking about that. Pavanji, we'll take it offline. I think we need to discuss it better than be offline.
Thank you. Explanation pending on the data.
Yeah. Yeah. Thank you. Thank you.
Thank you. We have next question from the line of Kunal Bhatia from Dalal & Broacha. Please go ahead.
Yes. Thank you for the opportunity and congratulations on a very good set of numbers. Sir, I just had one question in terms of the LNG business. Sir, now, this INR 122 odd crore of run rate going forward, can we sustain this kind of a run rate or in your overall guidance given of an 18%-20% kind of a growth, what is the kind of growth we are expecting, especially on the LNG front?
The LNG business is more of a, you can say, project-based business. There are standard equipments, but the standard equipments also are limited. If these orders are a little bit lumpy, you can say. If you get a order, you get a order of INR 200 crore or you don't get a order. The time for, from concept stage to realization stage, it takes a little longer time. The variation will be there in quarter to quarter, but yearly basis we'll maintain our targets and perhaps improve upon that.
Okay. Okay. Sir, just one clarification. You mentioned fleet on the road, as of now of INOX India in India is about 250 vehicles or 1,500?
1,500 are the trucks with the fuel tank and others are 46 scale trailers which are running on the road for carrying the liquid from the terminal to that station. There is a difference. 1,500 is the truck having the fuel tank, whereas these trailers are delivering liquid from the terminal, collecting the liquid from the terminal and delivering to the fuel stations.
Okay. Okay. Got it, sir. Thank you so much.
Yeah.
Next.
We are done with the time.
Mr. Kushal, your line is unmuted. Please ask your question.
Hello. Hello, everyone.
Yes, sir. Good afternoon.
My question is on your data center side. You said that there is a technology, cryogenic cooling technology. How is it different from air cooling or liquid cooling in the unit economic terms, and what kind of opportunities are we expecting from this technology going ahead?
Yeah. I told you, this technology is getting developed. This is in the R&D stage as on today. If you say air cooling, then you require air conditioners. If there is a water cooling, then you require chilling water. The amount of energy and the time which takes to, for cooling from, say, maybe room temperature to, say, 2 degrees or less than that, it's a lot. Whereas in, if you put a chip into the nitrogen temperature, it will get the 77 K or - 196 in fraction of seconds or minutes. Okay? That is what we are studying, how much energy saving will be possible if we can achieve that and how much time we will save to achieve that. This is what we are studying, and this is especially in R&D stage.
Is there any company in global level that they are doing, this kind of tech or type of the product as of now?
Yeah. There are no other companies who are thinking like this. In our recent discussion during the exhibition in Europe, we found that there are a lot of companies, like mainly the Intel, Microsoft and other companies, they are very interested in finding out a solution like this. We will try to work with them and develop some prototype and test it at our place. We have the R&D facility at IIT Mumbai. We're doing some test over there, provide them the data, and we'll work out how much energy saving and how much time saving is there. If that is successful, then there is a plenty of opportunities I can say.
What is our R&D spend as turnover, as percentage of turnover on an average?
I mean, it is.
In price.
For to comment on this, wait for some time for this.
Sure, sir. Sure. Thank you. Thank you very much for answering question.
Thank you.
Thank you. This was the last question. I now hand the conference over to management for closing comments.
Thank you very much for your time and energy, and we had a very wonderful discussion. If any questions are remaining pending, you can send that to our IR team, and we will be answering those questions. We always organize some visit to the plant, so you can be in touch with our Adfactors, which is a agency who is dealing in all this. We can organize your visit, so you can see the products getting manufactured, and we can have one more discussions on face-to-face. Thank you once again for joining this call, and I hope you had a good time. Thank you so much.
Ladies and gentlemen, on behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect lines. Thank you.
Thank you.
Okay.
Bye.
Thank you.