Q4 25/26

May 15, 2026

Summary

FY26 revenue and profit grew strongly, while facility ramp-up, data-center demand and exports support the outlook. Working-capital needs, BIS-related supply constraints and shipment delays remain key watchpoints.

Ladies and gentlemen, good day and welcome to the KRN Heat Exchanger and Refrigeration Limited Q4 and 12-month FY 2026 earnings conference call hosted by Dolat Capital Markets Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then Zero on your touchtone phone. I now hand the conference over to Ms. Hiral Parekh from Dolat Capital. Thank you, and over to you, ma'am. Thank you, Shailendra. Good afternoon, ladies and gentlemen. On behalf of Dolat Capital, I am pleased to invite all of you to the Q4 FY 2026 earnings conference call with the management of KRN Heat Exchanger and Refrigeration Limited. The management is represented by Mr. Santosh Kumar Yadav, the Chairman and MD, Mr. Pawan Nawal, the CFO, Mr. Jitendra Sharma, the company secretary, and Ms. Komal, whole-time director, KRN HVAC Private Limited. With that, I will hand over the call to Komal ma'am for the opening remarks. Over to you, Komal. Good afternoon, everyone, and thank you for joining us. FY 2026 has been an important year for us. In many ways, this is the year where the groundwork we have been putting in over the last few years has started reflecting in our numbers and overall business momentum. If I look at the year, what stands out is not just growth, but how the business is shaping up. We are seeing better traction across segments, stronger engagement with customers, and more consistency in execution. The new HVAC facility and the commission during the year has started contributing, and while it is still in the ramp-up phase, the response from customers has been encouraging. We are also seeing our business becoming more balanced. Earlier, a large part of our focus was on core heat exchanger products, but now we are carefully moving towards a more integrated offering. Our presence today stands across HVAC, data centers, industrial cooling, transport applications, and refrigeration. This diversification is helping us build stability in the business. Exports is another area where we are seeing steady progress. Markets like U.A.E. and U.S. continue to do well for us, and we are also seeing initial traction coming from Europe. It is still early, but the direction is positive and gives us confidence for the coming years. During the year, we also entered the Bus AC segment. This is a strategic move for us. It allows us to go beyond being just a component supplier and participate in system-level opportunities. We believe this will open up a meaningful growth avenue over the next few years. On the operations side, we have stayed focused on execution. Whether it is managing raw material volatility, improving efficiency, or working on backward integration, the efforts have been to keep the business steady while scaling up. As the new plant ramps up further, we expect operating leverage to start playing clearly. Coming to our financial performance, for FY 2026, our standalone total income grew by 57.36% year-on-year to INR 689.95 crores, while EBITDA increased by 19.41% to INR 84.79 crores, and net profit rose by 42.11% to INR 71.31 crores. On a consolidated basis, total income stood at INR 609.81 crores, up 38.06% year-on-year, with EBITDA growing by 59.52% to INR 112.48 crores and net profit increasing by 44.62% to INR 76.47 crores. For Q4 FY 2026, standalone total income grew by 55.06% year-on-year to INR 204.93 crores, with net profit rising by 22.69% to INR 16.87 crores. On the consolidated side, total income came in at INR 181.40 crores, up 33.5% year-on-year, while EBITDA increased by 77.56% to INR 33.55 crores and net profit rose by 57.14% to INR 23.36 crores. Overall, the environment remains supportive with demand across sectors such as data centers, infrastructure, and mobility. With the capabilities and scale we have built, we believe we are well-positioned to capture these opportunities. With that, we would be happy to take your questions. 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 touchtone telephone. If you wish to remove yourself from the question queue, you may press Star and Two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from Manoj Arya from Intergrowth Services. Please go ahead. Hi. My question is more around the data center front, where a lot of the new AI data centers require a lot of liquid cooling and not a lot of air cooling. So in the new facility that we are setting up, are there any new products that we are developing that can assist with the liquid cooling data centers, AI data centers? Yeah. Good afternoon to all. Basically, data center, there is two segment. One is the ODU side and another is the IDU side. So IDU side is changing like in liquid cooling, but still I think it's early phase in India. Outside like as a chiller or maybe dry air cooler, our product still will remain same, fin and tube type. And other one may be possible to change in future like micro channel MCHX. We are already working on micro channel and by end of this year or early next year, we will have this product in our portfolio. Other than this IDU side, fin and tube will replace maybe to CDU. So there will be the plate and plate heat exchanger. We also started working on this heat exchanger. Once our study will complete, maybe we can add in coming next year in our portfolio, this heat exchanger as well. As of now we are receiving order fin and tube from all our HVAC data center component in India. So CDU is very less for this year. Yeah. Got it. My next question is on the new capacity that's coming up. In this FY 2027, can we expect linear 70% utilization for the new capacity that's coming up? New capacity, if you see, including all products, we call our whole facility the six pack. If you see all products, maybe some of products you are not aware, so maybe I can repeat. There is new product what we added already. One is in the refrigeration side, WOT, wire on tube condenser. Then second one is roll bond evaporator, also refrigerator. Then frost free evaporator, also belongs to refrigerator. Then skin condenser, also belongs to refrigerator. Then other one is the different type of heat exchanger, bar and plate. And then complete product, dry air cooler. Then a complete product is ammonia evaporator, and then complete product bus air conditioning, and also in heat exchanger, we increase our bandwidth in term of new geometry. These are our portfolio. We are expecting this year inclusive all products and new geometry, we will achieve 50% of capacity utilization from new facility. Got it. My final question is around the raw materials. Basically, in the last six to nine months, there has been a huge hike in all the raw material prices. What percentage of the cost are we able to pass on through the customers? In all core, of course, we always remain. Our price pattern is like that, quarter on quarter basis, we are able to change to our customer or we have such contract we can pass almost 100% copper LME and aluminum LME and USD to INR conversion. With all three factors, we can able to change with our customer and our price pattern, our agreement term is like that only. You can say quarter on quarter basis, we can able to pass 100%. Got it. Thank you so much. That is all I have for now. Thank you. The next question is from Aditya Sharma from Holani Venture Capital Fund. Please go ahead. Sir, first of all, congratulations for your excellent set of numbers. Sir, what is the expected revenue contribution from the Bus AC business and data center business in the upcoming quarters, and what margin improvement does the management expect in Bus AC segment due to backward integration? In bus air conditioning, if you see like all Indian manufacturers, we are rising on the top in term of backward integration, including fin and tube type heat exchanger and micro channel we are going to add. Then tubing side and then FRP side, we have all in-house. You can say backward integration we have compared to other manufacturers on the top. Last year we achieve around INR 10 crore from Bus AC only. This year, whatever is the market size, we are expecting at least 15% market share we will achieve this financial year. And sir, for the data center business? So data center now is really growing. We have some good order booking, especially from data center and long lead time. One of customer is already booked like 6 to 7 months also. Q4, we achieve around 18.7% from data center only. If you see quarter-on-quarter basis increase around 2.7%, especially on quarter-on-quarter basis, and year-on-year basis also I think will increase. Now we have a good order booking from data center. Even if I like little on the export side. Last year we achieve around INR 100 crore export, and now we have two good customers from export side also from data center. As of now, we have order booking almost INR 120 crore plus for export, including data center order. Okay, sir. Sir, my second question is that could you please provide the further details regarding the export order of approximately INR 55 crore received by the KRN HVAC Products Private Limited, including the geography and end use industry of the customer? Total order, what I said, last year we achieve around INR 100 crore from export side only. This year we are planning to achieve almost double compared to last year. Including all geography, especially North America, Europe and UAE. That particular being a confidential item, we can't share particular industry sites or geography, but total we have open order is $120 million, including all geography, Europe, UAE, and North America. Sir, I am asking about the latest $55 million order received by the KRN's HVAC products. Yeah. Actually, specifically, particular that order, I think what detail we can able to share, we already share on our stock exchange. Behind that, we unable to share. Okay, sir. My last question is that, could you please provide the details of the recent QIP, including the amount raised, key investors, and the proposed utilization of the proceeds? Can you repeat again? These are confidential right now, the investor side, about the QIP. Hello. Can you repeat the question? Yes, sir. Sir, could you please provide the details of the recent QIP, including the amount raised and the proposed utilization of the proceeds and the key investor, if available? Actually, we just took the board approvals up to INR 500 crore of the QIP size, and rest information is still not concluded. Once concluded, we can share after that only. Yeah. Okay. Thank you very much, sir. Sir, best of luck for your upcoming quarters. Thank you. Thank you. The next question is from Vishet Kabra, from Holani Venture Capital Fund. Please go ahead, Mr. Vishet. Hello. Yeah. Yes. Good afternoon, sir. First of all, I would like to congratulate for your financial year results. The question is, management previously mentioned that the company has benefited from anti-dumping duties imposed on Chinese products. If a favorable U.S.-Chinese trade agreement reduces these duties or changes the competitive landscape, what precautionary strategies is the company implementing to protect margins and market share? Additionally, how is the current geopolitical environment impacting your export business in terms of demand pricing, supply chain, and customer diversification? I got your second question, but first I unable to understand you. Can you repeat on first question? Yeah. Sir, basically, the question is, management previously mentioned that the company has benefit from anti-dumping duties imposed on Chinese products. If a favorable U.S.-Chinese trade deal agreement reduces these duties or changes the competitive landscape, what precautionary strategy is the company implementing to protect margins and market share? I think I unable to understand full question, but maybe what I understand, I can able to reply. Basically, we are not competing with Chinese till now because our all products is customization and special industry because we are not in bulk and mass production. I think Chinese can able to compete only if you have numbers is huge and one product like catalog item. We are not that industry. Still we are competing in Europe with European supplier and North America with North American supplier and of course we are directly supplying. I think this question, I think wrong placed because we are not competing with Chinese, there is no need to make strategy on that. Second one, geographical tension, of course, there is a continual issue on being, especially UAE. In March month, we are not able to dispatch our dispatches on UAE customer. But now our dispatch is already started. Our freight cost is increasing, we able to take increase from our customer as well. North America and Europe, as of now, we do not have any issue, we able to dispatch easily whatever we are promising to our customer. Other than this, of course, some slightly freight cost is increased, especially due to the container some issue or maybe vessel issue. That also we able to pass on our customer quarter on quarter basis. That is why little we increase our inventory also. That is the one reason also we able little increase, because we have import material like copper and aluminum is long lead item, due to that tension, we little increase our inventory as well. Yes. Got it, sir. Sir, my second question is, could you please share the utilized capacity and installed capacity of the new Neemrana plant, and what capacity utilization levels does the management expect over the upcoming quarters and in the coming years? I think this last year, KRN Heat Exchanger will be able to utilize our full capacity. For HVAC, we able to, I think, utilize around 15% only. But this year, we are planning to achieve 50% from new facility as well and KRN will remain same. Okay, sir. Thank you and wish you all the best for the upcoming quarter. Yeah. Thank you. Thank you. The next question is from Sagar Tanna from Alteme. Please go ahead, Mr. Sagar. Hi, Santhosh. Yeah. We have raised a resolution to raise funds. Why are we raising these funds? What is the end use? If you can just explain this. Actually, objective is still not concluded. I think very soon we will conclude the objective and then we will let you know. Broadly, the main reason will be one of the working capital. Okay. This is just an enabling resolution up to INR 500 crore. We may not actually do the full INR 500 crore fundraise. Is my understanding correct? Yes. Got it. Thank you. Thank you. The next question is from Shashikant from Brighter Mind Equity Advisors. Please go ahead. Hello. Thank you for giving me the opportunity. I have three questions. The first one is: How is the demand scenario panning out after IMD and climate new guidance on the monsoon getting erratic this year? So demand scenarios and inventory level in the market from our end customers. This question I think belongs to room AC industry, but actually we are not a seasonable company. On us, there is of course no impact on weather or season. But we have as a commercial running business, you can see our each quarter will be on the year-on-year or quarter-on-quarter basis will be on the top. We have, of course, demand and we are able to replace what we are saying, 50% in this year. Of course, you can see quarter-on-quarter basis, growth will be there. We have good enough order booking and of course we are working on same and you will be able to see. Room AC side, we are not aware, of course, inventory side, and I think this year what I heard from industry, season is not good. But still we are waiting to improve this. Okay. My next question is, a lot of data centers have been happening in North America, approximately around size of 100 gigawatts. What is the plan for us considering liquid cooling is being preferred alternative in the local market here? In India, of course, everybody's talking about liquid cooling and what I have some input like AI data center, they will use liquid cooling as indoor side and of course outdoor side, chiller or dry air cooler will be there. But still in commercialization, maybe it's not started yet. Whatever, like some piece they are using, maybe Indian manufacturers, they are importing complete CDU unit and I think they are supplying. Manufacturing not started yet. As of now, honestly, our customer also not so much clear, but what order they are booking is without liquid cooling till now or some maybe with liquid cooling. As per my personal opinion, it will be, I think after one year some clarity will be there and then maybe we can able to update you. How we are looking at the export market in data center? I mean, U.S. is one of our dominant export markets. How is the demand panning out for us? Especially data center, we already started export to 2 big customers, particular to data center. 3 customers we have pipelined under development as a sample. We are hopeful. I think what I said, this year we are planning to achieve almost double export compared to last year. There will be the one reason this we have able to see good demand from data center as well from export side. Okay, sir. Thank you. That's all from my side. Thank you. The next question is from Mihir Manohar from Trust Mutual Fund. Please go ahead. Yeah. Thanks for giving the opportunity. Sir, the numbers in the P&L are very good and very strong growth, even amid the margins have also held up well on quarterly basis. Just on a working capital side, sir, I know we have accumulated a lot of inventory, almost 3x versus last year. Receivables are also 2x versus last year. Some color around that, and I understand that we are expecting large revenue with the ramp-up next year. But how to see normalized inventory levels? Should one worry on the receivable side because there's some accumulation of receivables also? Actually, inventory side, of course, we are also seeing this increase, and there is some of reason I can maybe able to try to explain. First one is actually we booked, like order book from UAE, I think one order was worth INR 20 crore and additional order also. Once March, we are almost able to dispatch around INR 15 crore-INR 20 crore, but we unable to dispatch due to that war condition. That material added in inventory in FG raw material because raw material we already arranged for that. Other one is in inventories, I think around INR 8 crore order value we already dispatched in March, but not able to convert it in bill. That is also covered in inventory. That INR 8 crore will be added export in this quarter because from our side we already dispatched in March only, but auditor not consider in sales because bill was not generated. Other one, because new business what we added, especially WOT, roll bond, frost free, and skin condenser, bar and plate, dry air cooler, ammonia evaporator, bus air conditioning, and new geometry. We have to build a minimum level stock for these all new businesses. That is the one of the reason also inventory is covered. Other one is still BIS issue in India. Now in this month also, like 20th of May is the last date of the inner grooved tube. That will maybe government again take the reopen the BIS government maybe approval, it will take 2, 3 months. That also we have to build the inventory for at least one and half month because due to the BIS issue. Another one is the customer side pending because now a new customer is continue going to add in new businesses, especially bus air conditioning. That's why also this amount is improving. Hopefully you can see improvement in this financial year. Of course, we will now put in some new cash flow tools in our system. Within this running financial year, you'll be able to see improvement in this, for sure. Sure. Actually, we see normalization of inventory to happen, I mean, in dispatches and normalization of inventory to happen in the next 6 months, inventory days. Next 6 months, like each quarter-on-quarter basis, you will see the improvement. I think things in maybe as per norms or normalization, still I can't comment because inner grooved tube is still not started in India. Either before like 6 months also, we have news from manufacturing we can able to start, including Hindalco, they have not started yet. They're supposed to start before 1 year. Still we depend on imports, and then government also want to stop the import due to this BIS tools. Still, I think minimum it will take 6 months to normalize that thing. Quarter-on-quarter basis, we will update. Sure. Understood. That's it from my side. Thank you. Thank you. Thank you. The next question is from Vigrish Iyer from Secuent Investments. Please go ahead. Hello. Am I audible, sir? Yes, you are audible. Yeah. Yeah. Can you speak little loudly? Yeah. Yeah. Is it okay now? Yes. Am I audible? Yeah. Thank you. Thank you for the opportunity, sir. My first question is, I heard you earlier when you said that we can pass on the cost escalation on the raw material side or be it on other freight side to our customer. I wanted to understand, if I understood it right, there would be a quarter-on-quarter lag right before the price is passed on. Right? For the first quarter, we have to take the hit on our books, right? Yes. Okay. Because quarter-on-quarter basis also you can see it's not increased. Of course, in last six months there is some issue because it sometimes increase sharply and then also sometimes decrease. However, our pattern is like that. The last three months, not last three months, last quarter. Last quarter average of our cost pattern have one RMC also, we call raw material sheet. Raw material sheet factor like we have one separate table that belongs to LME for copper for three months, and then LME for aluminum, and then USD to INR. Same sheet we have some other add also including logistic cost, including freight cost. That is the full transparency with customer. Once it's changed, we always able to pass on to our customer. Okay. What is the usual number of days of inventory that we maintain? Now- In months or days, anything would do. In months or days. Yeah. Now it is around 2 and a half months, I think. Oh, okay. And sir, when it comes to execution, I heard you that you are trying to achieve 50% of utilization for the new plant in FY 2027 in addition to our old plant. Right. What would the number look like for 2028 and 2029? So of course, number I can not describe. I mean, not- It's actually- Yeah. In terms of utilization. Sorry. This year we are able to achieve. Our old facility is fully utilized. And new facility this year we are able to achieve 50%, and next year 80%. Okay. What would the margins look like for 2027 and 2028? So margin, what is currently you see, we can able to increase because now we will, in earlier calls also I told you, we will have two incentives. One is the central government's PLI. We will able to receive this year 5% from PLI, particular on heat exchanger production. Very soon we will have RIPS approval as well. Maybe within this month can be possible. So that we have approval from state government for RIPS approval, then we can have for next 10 year, we can have at least 1.56% of the top line for new facility. Other than this, our export, this year we are able to, I think, achieve around double compared to last year. So we will have some good margin compared to domestic and export. Other than this, we will able to save some money from solar electricity as well, because we have now plant is fully operational and we have 8 megawatt solar facility. If I club all these things, of course, we can able to slightly increase. Other side, we will have depreciation is quite high and overhead is now increasing. Okay, sir. Got it, sir. Thank you for your detailed answer. I'll get back in the queue. Thank you. Thank you. Ladies and gentlemen, please limit your questions to one per participant so that management can address more questions. Should you have a follow-up question, we would request you to rejoin the queue. The next question is from Hita Vorup from Monarch AIF. Please go ahead. Hi. Good afternoon, sir. Congratulations on the amazing set of numbers. Sir, I wanted to understand from our Q4 revenue, what percentage is from products other than fin and tube? Honestly, that number we not prepared, but it's roughly. Honestly, I don't have this data. You can maybe another entering queue. Meanwhile, our CFO should bring that answer, so we will answer the next question. Sure. Sir, we were considering entering railways and marine segment as well. We were trying to get tenders in those segments. Is there any progress in that side? For railway, now we are eligible for this bar and plate heat exchanger. There is procedure fee including six-month field trial. Now we are approved by railway. Correct Including six-month field trial. Whatever tender is coming, we are participating on the same. Even last week also, we participated three tender and all three we are on L1. I think this week we will able to receive orders from railway. Bar and plate we already entered. Other than this, marine, we are supplying fin and tube only for a marine application. But complete air track system for Indian Railway, we will enter. That procedure is, I think, from now is almost eight months. We already hired the team, and I think team will join soon. Once they will join particular that business, they will start the things for documentation and plant approval. It will take at least from now six to eight months. Then once we will approve by railway, then we can start the business. This financial year, I think we will not much expectation from this business, but next year, for sure, we will have some numbers. Okay. Now we have 95% from fin and tube and 5% from other business only. Okay. Understood. All right. Thank you. Thank you. Thank you. The next question is from Ajay Surya from Niveshaay. Please go ahead. Thanks for the opportunity. Am I audible? Yes. So sir, I wanted to understand first thing on the customer concentration on the data center business, because on the commercial AC, I guess one of the large OEM contribute significant portion of the revenue. If you can maybe help us understand the customer concentration on the data center segment. Who are the top customers and how are they contributing in percentage? Second thing on this, regarding the recent onboarding of new data center customers, leaders like maybe Vertiv. How are we on the approval process with these major thermal management players like Vertiv or any other player? With such players already onboarded like Schneider and Climaveneta and Shell. Are we also plugging into their localized Indian operations or is it just like we have to supply the cooling components to their global supply chain? For data center, we are only supplying fin and tube type heat exchanger. Also, if need customer sub-assembly as well, maybe with sheet metal, that also we are able to supply. With some of customer we are supplying. Your first question, I can see in top 10 customer, we have the last financial year, we have three from data center only. Whoever making that maybe component for the data center, almost all customer is our customer. We are able to supply to all. Still like Vertiv, we are now vendor code open. Our quality audit already happened and now we are approved by their QA system. But it's still business, maybe billing will need to start. In coming weeks or coming months, we can able to supply to Vertiv as well. Other than this Vertiv customer, main top five customer for data center, we are supplying to all in India. Export side also, one customer we have from Europe and two or three customer from North America. One customer is already we started supply to North America as well. This year, I think number for sure will be multifold, specifically for data center business. We have good RFQs and order booking also very good from data center customer. Understood. Sir, next question is on basically we are targeting a significant ramp-up of the new facility. If you can maybe help us understand, obviously commercial AC, we have a good share of revenue, but the incremental revenue which is going to drive. Maybe if you can help us understand that, how much will AI data centers contribute? How much will Bus AC contribute and also the railway one? Also similarly, in between those segments, how much will be export and domestic? In new facility, you see we have almost 8 to 9 new products other than fin and tube type. This business already started now in billing to many OEMs around, including domestic some other OEM. That is the main reason we will have revenue from new products as well as from fin and tube on existing customer growth and also new customer growth. Of course, in fin and tube especially, we will have expecting, I think, more than 80% or 90% on growth, especially from AI data centers only. I can able to maybe new products, including complete virtual conditioning and then existing customer growth and plus new customer growth and of course export, what I said, we are going to achieve almost double within this year. I understand, sir. That's it. Thank you. Thank you. The next question is from Kamlesh Bhagat from Lotus Asset Managers. Please go ahead, Mr. Kamlesh. Yeah. Thanks for the opportunity. This net revenue target of, let's say, INR 2,250 crore to INR 2,850 crore. Are we targeting this by, let's say, FY 2028, or it may prolong to FY 2029 as well? Secondly, on the working capital side, let's say, I believe that at INR 2,250 crore of revenue and the lower range of the revenue, we could be requiring roughly around INR 600 crore of working capital. I believe that given the fact that we are targeting such a huge growth, and based on your numbers, let's say at INR 2,250 crore revenue, we may be generating roughly around INR 350 crore of cash profit by the time we achieve that particular revenue target. Is there really a requirement for, let's say, to raise the money through equity raise? Because given our capacity which is already commissioned, up and running, and we are targeting such a huge growth, and we can literally manage it through our own internal resources. Why capital raise is on the card? Actually, of course, you see the growth is quite fast and of course we already invested the money. If you see, I think our balance sheet, what we received from IPO. But we invested more than receipt of the IPO in current facility. Now we are seeing we will have some maybe shortage on particularly on working capital side. That's why we decided in our board we can maybe have some money through QIP for, specifically for working capital, but other objective also under consideration. That is still not concluded yet. Of course, we will have in coming weeks, we will be able to answer on that question also. You are also right, we can have through bank also, but that is completely decision by board only. We can maybe consider your suggestion also. We can see what will happen. Lastly, our entire CapEx is now over. The capacity, let's say 6x existing capacity. All that is done now, nothing left on the CapEx side at all. No. Like capacity, we already done by building land or building an office and everything is ready, like utility size, we are ready. But to make the line balancing, we have to invest on existing facility also. Because we plan such way utility side is completed, building side completed, but because especially now industry growth, especially to industry, we can't imagine what will happen. Because once we design our facility before two year, that time we don't know data center will grow such way. So data center geometry and our existing geometry, some slightly difference. So once our existing capacity will full, particularly geometry belongs to data center, then we have to add another one also. So a small investment will be there, but not huge on existing capacity. Next two years, how much CapEx we are planning, sir? It's still, papers not in front of me, but roughly, you can see, I think, maybe $30 million to $40 million will be there roughly. In both years, in next or year later. And that- Yes, particularly on existing capacity. Okay. That will help us to achieve our revenue target of INR 2,250 to INR 2,850. Those numbers, of course, I cannot answer, but capacity, what I said, 50% and 80% we able to achieve for sure. Okay, sure. Great, sir. Thank you a lot, sir. Thank you. The next question is from Prateek Giri from Shubhra Research. Please go ahead. Hi, Yadavji. Greetings. I hope I am audible. Yes. Yadavji, my first question is on the execution this quarter. I just try to explain where I am coming from, because we probably commissioned this new facility May of last year. We already had around a good two quarters for this to ramp up. So I was expecting a substantially better numbers this quarter from December 2025 quarter, Q3 of 2026. Whereas incrementally, we have hardly done around INR 15 crore, INR 16 crore. So I just wanted to understand, is this understanding correct that the ramp up is happening, but it is happening at a very slow pace for the new facility? That is the first question, Yadavji. Yes. So actually what happened, we started commercial production in May 2025. You are right. But it was like facility not fully commissioned in term of our office was not ready and some construction is going on parallelly. We started- Okay. Was some technology installed. We now did our this facility on 11th of March only. This like last month, before 2 month only. So now we shifted- Okay. Last week only to a new facility. Now you can check now it's fully commissioned and ready. Other than this- Right. Because in new facility we added new products, almost eight new products. For eight new products Right. there is a procedure to customer approval side. First we have to approach to customer for our plant visit, then their QMS audit, then sample approval. That process almost now completed. Even in bar and plate extraction, there is a process of the eight month by Indian Railway for approval. That also Yes. we completed in February only. Now Okay. you can see in coming quarters, what is your, like, question, you will have by default answer from our side, quarter on quarter basis. Now capacity utilization will be much faster compared to last three quarter or two quarters. Got it. Yadavji, last 45 days, we are already on 15th of May now. Last 45 days, the way ramp-up has happened, that also gives you confidence that probably Q1, Q2, Q3 of 2027 will be substantially better. Directionally, I am asking. Yeah. This quarter you will see. Even I can say next eight quarters, all quarters will be our highest ever. This quarter also Okay. will be the highest, but number I cannot disclose. No, certainly. Yadavji, one thing in the presentation I could notice that you are quite confident of achieving INR 150 crore revenue from bus segment, Bus AC segment. I was just wondering, is this confidence backed by order book or we are still convincing OEMs to place orders with us? Do you already have INR 150 crore order book? We already cracked the two, three OEM and our regular supply is already starting and we are in line on 15% of the market utilization. We are on line. Yes. Great. That is very encouraging. That is the confidence of INR 150 crore which we have written in the presentation. My last question, Yadavji, I am sure a lot of people have asked you about the fundraise, but fundraise in India have increased manifold in last few quarters. What it leads to is different return ratios for some time. This will sometimes trouble the shareholders' return and I am sure your team must have given you the calculation. This was just a suggestion that if it happens a little late after the ramp-up is running all blaze, that will help us a lot in absorbing the incremental capital on the balance sheet as an equity shareholder. But I am sure whatever decision you will take will be certainly for the stock or minority shareholders. That is, I am certain. That was a small suggestion. Just one more thing, Yadavji. Yeah, please. Sorry. No, you please go completely. Yes. Yeah. Our inventory has gone up substantially this quarter. I understand we are in ramping up phase. Was there an unbilled revenue also? I mean, because of this geopolitical uncertainties, any shipment issues, et cetera? That is why inventory has gone up or we have stocked up the raw material for after execution? Your first question answer, of course, whatever decision we will take, of course, must be interest of the whole shareholder for sure. Okay. We will Sorry. consider that. Second question, there is a multiple reason but one of the reason this war is also like whatever crash is going on. Especially, actually if you see we declare one UAE order, I think 20 crore order for last quarter only. That is actually we arrange the material but somehow in March dispatch is not happened. We will have raw material and including finished good in our stock around worth of INR 15 crore-INR 20 crore. Okay. Second one, in March last week we export around INR 8 crore of the value of the export but it's not considered in balance sheet due to the bill is not generated so that is also considered in inventory. Third one is of course, we have to increase a minimum level stock of the four new products so new businesses. Right. Now we have eight new businesses so that is also we have to build the inventory. Okay. Last quarter we have to slightly need to up the inventory because RAC season is going on particular that quarter and our vendors' delivery time is go up compared to last two quarter. That is why slightly we safer side we slightly increase and of course one is the reason BIS notification also from government the last date is 20 of May so we have to build inventory before that only. This some reason of course we feel inventory is quite high but in coming quarters or maybe maximum Okay. From now two three quarter you will be able to see the under control. Understood. So you are saying around 28 crore of finished goods is lying in this inventory number? 25-30 crore. 8 crore we already dispatched, but of course they consider in inventory. Okay. Now for this UAE order we not converted completely in FG, so you can say half is raw material and half is as a finished goods. Got it. Thank you very much. This month UAE dispatch is already started so now you can see good things in this quarter, running quarter. Got it. Very helpful, Yajvadi. Thanks a lot for the opportunity. I am sure any capital allocation decision will always happen in our interest. Thanks a lot. Good luck. Yes. Thank you. The next question is from Tej Patel from Niveshaay. Please go ahead. Hello. Am I audible? Yes. Yes. Thank you so much for the opportunity, sir. I think just to give parties an answer question, you provide the data center share in this financial year revenue? Complete financial year, we have around 16% of revenue from data center. Okay. Got it. I get it, you have a rolling order book, probably you don't generally provide the audible number, but since the lead times for data center are high, you were saying, there will be some order book in the data center which we would be having right now. Is it possible to provide that number? What is our outstanding order book for data center right now? As we not divided in total order booking in the data center specially, because data center Indian customers are running customers, so they just give the one month firm order, and then it's the rolling. But the export side, we have total order booking is around INR 120 crore including data center. Perfect. This 16% revenue which you were speaking of, it is majorly from exports, right? The data center. It is both. Domestic and export both. Okay. Got it. It is the same customer, both domestic and exports. The same two customers. No. As a domestic, we can say our biggest is the Schneider Electric, but other customer name I cannot disclose. Okay. And so you were saying, Vertiv, we are in talk with Vertiv as well. I am just trying to understand, when can we get the final approval from them and when can we start seeing a dispatch? We have approvals now from Vertiv because their QMS audit also completed, and we have results. So we passed in first go only. So now we receive the drawings. So we are preparing the drawings for customer approval. So once they will approve in maybe in coming week, then we will have supply to proto to them. They will proto approval, and then mass production will start. So it is coming month, I think it will start. Great. And so just wanted to understand, you said, and of course, you said almost incremental growth from the fin and tube would come from data center. I am just trying to understand what portion of revenue probably would data center be in the next financial year? This year, last quarter, I think we have around 19% from data center. So you can see, I think quarter on quarter basis, for sure it will increase. But total percentage, I unable to convert now. So maybe we can have to calculate, and then we will let you know by your time. Okay. And sir, are we the sole supplier? Are we replacing any customer for Vertiv or let's say for India business of Schneider, are we the sole supplier or probably we are a second supplier or one of the multiple suppliers? No, like our existing customer, we have a major share, but their growth is, I think each customer now is almost more than 80% or 90%. So that is we are receiving same pace our fin and tube heat exchanger. Other than Vertiv, earlier we are not supplying, so now we are added new one. And of course, export also we added three new customer from data center only. So export side, you can say we will be maybe as a replacement or maybe second vendor. And for India, Vertiv, we will enter as a second or third vendor. But other, our customer, like we have maybe other one, last year, maybe we'll have 20%. This year, maybe we'll have number of share percentage increase, and their growth is also there. So if you club all. Understood. And sir, for data center export business, is it U.S.A. majorly or which geography? We are exporting both Europe and North America. I mean, is it equally, I am just trying to understand, is it like more of Europe or, I mean, of course it is more North America is more, and Europe is less. Got it. Just one more question, sir. When you say 50% utilization, I mean, of course, if demand is so good, I am just trying to understand why not more than 50. Is like working capital a constraint or is it like a general nature of the business, like renting of site that takes time? I am just trying to understand why can't we not go above 50 if demand is so good. I mean, of course, I get it, working capital comes into play. I am just trying to get your view on this. No, 50% means including all products and all geometry. Like refrigerator component, we have five to six. So there is a different industry. Now we have already two, three OEM on board, and we are already able to start supply with them. But now we have to add another customer also, like big OEM. So that is why this capacity will increase maybe in one or two year. Other than this, bar and plate also now we recently approved by Indian Railway. So for this year, of course, we will participate in all tender, and we will have business. So also that will take to increase business or new customer also as well. This new business, dry air cooler and ammonia also we will have to add new customers or new business. But air conditioning also same way. This year we are able to, we have to open service center pan-India base. We have to onboard all OEMs, so it will take time, approvals, and of course, to stream the supply chain. For fin geometry, especially for our existing customer or data center, of course, we can maybe able to utilize 80% or 90% of the utilization, but we will have total 20 geometry. All geometry, we don't have such order that we can maybe convert immediately on the same year. We have to develop new customer based on our new geometry or geography. That is the whole reason if we look up, then we can say in total, we can able to achieve 50%. Okay, understood. Sir, just wanted to get your viewpoint on, in terms of gross margin, can we expect it to improve? Because, at this scale, are we getting advantage in terms of sourcing, in terms of, let's say, lower copper prices or something like that? Of course, slightly improvement will be there, but honestly, last two, three week of this copper and aluminum, silver price is behind the expectation because it sharply increase and sharply drop. Of course, once market is settled down, then for sure we will have some benefit. Our volume will increase, and of course, we can able to negotiate with our vendors in term of payment term or margins. Thank you. Ladies and gentlemen, we will take this as our last question. I now hand the conference over to management for closing comments. Thank you all for joining the call and I think we hopefully were able to answer all question on a nice way. But still if somebody have some question pending, maybe you can write to our CS and we can able to answer. Of course, what I said, slightly you can say what we utilize our capacity. There is some maybe still gap is there. But this year, for sure, quarter-on-quarter is what you will see in numbers, which will be really encouraging and we will achieve what we said. Really thanks for joining the call. Thank you. Thank you. On behalf of Dolat Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.