Q1 25/26

Aug 1, 2025

Summary

Consolidated Q1 FY26 income was INR 118.86 crore, with EBITDA of INR 17.59 crore and net profit of INR 12.42 crore. Neemrana ramp-up is expected from Q3, while exports and incentives are key drivers of next-year margin improvement.

Ladies and gentlemen, good day and welcome to the KRN Heat Exchanger and Refrigeration Q1 FY26 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. Please note that this conference is being recorded. I now hand the conference over to Mr. Yogesh Patil. Thank you, and over to you, sir. Thanks, Anushka. Good afternoon, ladies and gentlemen. On behalf of Dolat Capital, I have pleasure in inviting you all for Q1 FY26 earnings conference call with the management of KRN Heat Exchanger and Refrigeration Limited. The management is represented by Mr. Santosh Kumar Yadav, Chairman and Managing Director, Mr. Sonu Gupta, Chief Financial Officer, and Mr. Jitendra Sharma, Company Secretary. Now, without taking much time, I hand over this call to Mr. Santosh Kumar Yadav for the opening remarks, and then we will have a question and answer. Over to you, Santosh sir. Thank you, Yogesh. Good evening, everyone. I, Jitendra Kumar Sharma, Company Secretary of the company. It's my pleasure to welcome you all to KRN Heat Exchangers Q1 FY26 earning call. I would like to thank each one of you for joining us today and for your continued trust in our journey. Joining me on the call today, we have Mr. Santosh Kumar Yadav, our Managing Director, and Mr. Sonu Gupta, CFO of the company. We are pleased to report that Q1 FY26 result, our consolidated total income for the quarter stood at INR 118.86 crore. Driven by healthy domestic and export demand, we achieved an EBITDA of INR 17.59 crore, representing a margin of 15.26%, and delivered a net profit of INR 12.42 crore with a solid net profit margin of 10.45%. Our EPS for quarter stood at INR 2, reflecting continued earnings visibility and operational resilience. From a standalone perspective, our performance was equally encouraging. Total income stood at INR 117.14 crore, up 18.65% year-on-year. EBITDA came in at INR 19.79 crore, marking at 16.02% growth with a healthy EBITDA margin of 17.30%. Net profit grew sharply by 34.85% to INR 15.69 crore, with a net profit margin improving by 161 basis point to 13.39%. The EPS for the quarter stood at INR 2.52. Our growth was supported by robust year-on-year segment revenue growth of 20.36%, led by both domestic and international market. Domestic revenue contributed INR 96.39 crore, growing 17.27% YOY, while our overseas revenue surged 39.04% YOY to INR 18.89 crore with strong traction from the UAE and Italy. Our expanding global footprint, including presence in Germany, Canada, and France, continues to serve as a key driver of growth. One of the major highlights of our quarter was successful commencement of commercial operation at our Neemrana manufacturing facility under our wholly owned subsidiary, KRN HVAC Products Private Limited. This state-of-the-art facility, launched on May 31, 2025, enhances our capacity to serve both domestic and global markets with high-quality heat exchangers and HVAC products. In another significant development, our subsidiary secured approval under the PLI scheme for white goods with sanctioned incentive of INR 141.72 crore by IFCI Limited. This incentive will aid us in accelerating expansion, deepening backward integration, and enhancing localization, all of which are integral to our strategy of building a cost-efficient and self-reliant manufacturing ecosystem. At KRN, we remain deeply aligned with the structural tailwinds supporting the HVAC&R industry from rising infrastructure development and sustainability focus to increasing adoption of energy efficient system. Our commitment to product innovation, operational excellence, and strong client partnerships continues to fuel our momentum. Looking ahead, we are focused on expanding our market share, strengthening our global presence, and executing our strategic roadmap with discipline and agility. With a growing portfolio, a strong order book, and a highly capable team, we are confident of sustaining this positivity trajectory in the upcoming quarters. Thank you once again for your time and continued support. We now look forward to addressing your questions. 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. We take the first question from the line of Jay Chauhan from Trinetra Asset Managers. Please proceed. Good afternoon, and thank you for the opportunity. Am I audible? Yes. My question was, with the new Thermotech Research Laboratory, what is your approach towards building intellectual property? Do you have any patents filed or planned, or how do you see IP contributing to your competitive moat? Actually, this new lab we make separately other than as a manufacturer lab. It will be as a separate entity, like Thermotech Research Laboratory. However, it is only on subsidiary. We have already MOU with the AHRI. It will be first lab in India who will be approved by AHRI. We already did the MOU with AHRI, and even lab equipment already dispatched from China. Hopefully next week we are going to receive. Another two months, we have to install our equipment, and be able to start from September or early October. Then two or three months, we will have to meet for all certification, nationally and then European and American and UAE side. By end of this year, it will be completely ready for international, locally, and as well as for us. Yes. Got it, sir. Got it, sir. Basically, my question was around how do you see what kind of IP you can generate using this research lab? Can this help you to develop competitive moat going forward? Can you file patent for the same or something like that? Because I am just trying to gauge the industry at the moment. Actually, IP, we cannot get from lab, but we can get on our product. It will be work like that, if I want some specific particular tube with different geometry, like internal geometry, maybe groove height or some fin type. We can say better efficiency tube. First we have to contact with manufacturer of the tube, then we can maybe have some sample. We can try in our sample, and we can get approval from lab, and then we can file the IP address through this manufacturer on the tube side. In product side also, if we have some design specific which is not in market available, then we can first test, and if we can get more efficiency compared to existing product, then also we can file. Slowly we can work on IP side, but first we will start lab. We can get the certification all, then we can have our product qualification, our product customer qualification, then we will work on IP as well, but it will be the parallel activity. Right, sir. Understood. Sir, currently, if I am not wrong, you operate 100% B2B with OEM, is that right? Yes. Sir, have you evaluated the aftermarket opportunity, replacement parts opportunity? I think that typically offers higher margin, right, sir? No, I think you are incorrect of that. Because in our product, aftermarket is very thin margin. That is why we are not doing as of now. When we started the business, we started with aftermarket only. Once you have a new product, you want to sell the machines or your QMS system, your manpower trainings, then of course, we did aftermarket earlier when we started. But when we moved in OEM side, then we feel aftermarket price is compared to OEM, very thin. That is why we are not doing as of now. However, in new products, like for this roll bond and our iron tube condenser, we have some new products. For these new products, as of now, we started with aftermarket only. Now we are settled down the things, our machine learning and manpower training, QMS system. Of course, we are doing aftermarket with new product, but not on our existing product. Right, sir. That answers my question, sir. Thank you. Thank you. The next question is from the line of Manish Ostwal from Nirmal Bang Securities Private Limited. Please proceed. Yes, sir. Thank you for the opportunity and decent set of numbers given the macro conditions. My question first on the new facility which we have commenced, in May 2025. Can you talk about in terms of how we are ramping up the facility, how we are adding the customers and especially export market side and domestic side, how many clients we added for the new facility so far? How many clients visited the facility? Can you talk about qualitatively? That will be grateful for understanding the ramp-up part of the new facility. Yes. As I said before also in earlier calls, we already started in May. However, we delayed almost more than two months. But finally, we started in May end or May you can say, so we did only last one month. Sure. From now, you can say two months. Machine already installed all, utility is ready, and we started partial batch production or sample testing already in all components. But now we are working on QMS system, customer visit, quality approvals, and of course, training of manpower. As of now, average, each week we are having sometime one or sometime two customer who are visiting to our new facility as well as our existing or some new customer as well. Hopefully, we assuming this quarter we will have all customer approvals, quality system, manpower training, and all things all set. From third quarter, we will, of course, ramp up in production. Then third and fourth quarter we will have good numbers from new facility. But this running quarter, of course, we will have less number. But of course, we have to do other work as well, like the QMS, and then the training manpower, machine settle down, all things. Sure. The second thing, sir, if I look at our quarterly numbers, our growth in revenue is 20%, our gross profit increased very similar rate, but EBITDA is down. I understand that expenditure with respect to new plant, we are incurring, and because of that, EBITDA performance is weak. Can you call out specific cost with respect to new plant in the current quarter number so that we can understand the comparison from a YOY basis? Yes. Actually, standalone, I think numbers is good, but however, consol have some issues. There is some depreciation we booked for one month, so it is around INR 1.25 crore. Then, sir, we have some loan from KRN Heat Exchanger. So we charge some interest as well because we have agreement like that, once production will start, then interest will charge by KRN Heat Exchanger. Then of course, employee cost also around INR 1.5 crore. Then we did some sample testing or machine trials, so there is RM also consumed. But of course, we not sell the product, so that is why. RM consumption, then consumables like gas and electricity, then employee cost, then interest portion, then depreciation, which include all items around almost INR 4 crore. And sir, last question on the export side. Currently we have export share of 16.4% of our consolidated sales, INR 18.89 crores for the quarter. It has been steadily improving for last three, four years. Now with the new facility, if you just see when you talk about six to seven times from revenue, what will be the share of the export? In export business, what is the margin differential at a gross profit level compared to the domestic margin? Of course, I said before also, new facility we plan such a way, we want to improve our export only because as of now we have a congested facility or you can say optimized facility with very less space. That is why we built almost 600,000 sq ft covered area. It is the need for big numbers, especially for export, because the need facility must be good. We are targeting in next three year, we are able to achieve at least 50% of export from our own existing product, of course, from not new. Margins are slightly, I think 3%-4% we can get better compared to domestic, it is like in average, but it is not fixed actually. It depend on product, company profile, business volume, and of course, applications. Yes. Okay, sir. Thank you. Thank you very much. Thank you. The next question is from the line of Hiral Parekh from Dolat Capital. Please proceed. Hello, sir. Thank you for taking my question. I just wanted to understand, can you help us understand what is the current status of approvals under the RIPS scheme? When do you expect the margin or P&L benefit to start reflecting? Secondly, sir, I just want to understand, what would you call out to be the key triggers for the next 3-6 months? Okay. For RIPS actually, we need some certification, especially for pollution by the CTO. We are expecting in next week we are going to get the CTO, and then we can apply for RIPS. Other documents are ready. After apply, I think it will take around 6-7 weeks from government side. Hopefully, we will get within this quarter from RIPS approval, and then we can get incentive. We can start from third quarter of this year. What was your second question? Triggers, can you repeat actually for- Yes, sure. I wanted to understand what would be the key triggers for revenue in the next 3-6 months in terms of order inflows, utilization and profits. Okay. As I said before, now we are working on customer visit, QMS approval from customer existing as well as from new, and settle down the machines, and then giving the training of our new manpower with existing manpower. These things will be settled down, I think, in the next two months from now. Then production ramp-up will start from third quarter, and then third and fourth we will have good numbers compared to existing. What we said before, I think we can achieve by end of this year. Perfect. Thank you, sir. Thank you. Thank you. The next question is from the line of Manik Narayan from SSPL Securities. Please proceed. Thanks for taking up my question. I have three questions actually. The first one is, as you have mentioned earlier, that the plant will operate at 25% capacity in the first year. Can you guide us in which quarter we can expect it to reach at 25%? Yes, sir, I think same question. However, I can maybe reply again. It will start from third of this quarter, like third and fourth of this year. Q3 you can get. Okay. From Q3 and Q4, we can expect it will operate at 25%, right? Yes. Okay. Fine, sir. One more question is that, in this quarter, how much of the revenue came from the new plant? That is from April to June. As I can see, there's not much of difference in consolidated and standalone figures in terms of revenue. Plant has started to operate from May 31, 2025. How much of the revenue came from the new plant during that period, April to June? Revenue is not much. However, we did some production, but actually we do not have approvals of new plant from customers, so we cannot dispatch from new facilities. Some part we made in HVAC, but however, we transferred in heat and then we can bill to customer. Less number, but because once we start, then we have to first set the machine, all things. We have to train the manpower, we have to complete our QMS system like OEMs. Not much billing, but however, sampling and trial run that is going on still. Some small lot also we started. Small dispatch you can say we started. As you said earlier, during this meeting itself, that customers are visiting regularly. Did you secure any order so we can be confident that sales might be coming from the third quarter or fourth quarter? No. Customer regularly, they will not check the products actually. But once we want to start from new facilities, they have to approve new facility in their system. They have to visit, they have to send their QMS audit or their maybe quality person. They will visit and they do the audit and then we can start. But we can make as of now, but we cannot bill from new facility to them till their approval. Because we started two months back from now, one month you can take, we have to run first sample or then pilot load and then mass production. Now some more part we already started in mass production, but product will not approve by customer for sure, but facility will be approved by customer. Okay. That is it from my side, sir. Thank you. Thank you. Next question is from the line of Shiv Kumar Prajapati from Ambit Investment Advisors. Please proceed. Yeah. Hi, sir. Thanks for having my question. My first question is, will you be able to throw some light on the customer expansion or their CapEx plan for the next 2 to 3 years to whom we supply? Also, if you could mention the names which is possible or which are possible for you. No customer name, of course I cannot disclose. However, just average I can give you. As of now, our average is like that. On existing product, around 5 products per day, we are adding in our shop floor, including all customer and average for new customers is still 2 new customers per month we are going to add. Especially now, you can say some big booms coming in data center cooling. If you maybe heard today news from Google, they are going to invest around INR 50,000 crore in India for data center. Similarly, we have good numbers we can expect from data center and then as well as commercial other side like heat pump and then cassette side, refrigeration side, all. Okay, sir. And sir, we are also expecting demand from hydrogen, steel and renewable wind verticals. What portion of FY 2026 and 2027 order pipeline you are expecting from these segments? No. Hydrogen as of now we are not working, but if particular some OEMs, they are maybe working on hydrogen and they are using our heat exchanger that we are not aware yet. This segment we are not very aware and we are not supplying. Okay, sir. Sir, this new subsidiary that we have formed, is having some concessional tax rate of 15%. At what utilization levels we expect our overall consolidated tax rate to go down to, say, 20% or 18%? What would be the timeline for this? Can you repeat? I didn't get it actually. Sir, this new subsidiary that we have set up, it is having a tax rate of around 15%. I mean the concessional tax rate, right? Right now on consolidated basis, we have 30%, 28%-30% of tax rate. I'm just trying to understand at what level, I mean at what capacity utilization levels or say in period terms, when can we see our consolidated tax rate going down towards 20% or below it? I think, tenure I cannot confirm. But if it work like that, now heat will not move further because it's already full. Now whatever growth will come from HVAC only. So HVAC have new tax rate and heat have old tax rate. Now whatever growth will come is from new facility only. Once we have numbers, of course HVAC will be going up always and then heat up one more steady or slightly down. Understood. And sir, is there any criteria that we look before accepting any order? Is it the value or profitability? Of course, a small customer or one or two numbers, we cannot provide. First, once we have new RFQ, we see the customer profile. If it's long-term or short-term, or if they will buy continue or one-time order. Then based on that, we offer our price to them. Once they will agree on price, then we can move forward for development. Understood. And sir, are there any opportunities for cross-selling and upselling in case the SKUs that we provide to our end users? No, I didn't get it. Can you repeat again? Sir, suppose we are supplying an SKU. Suppose it's INR 500 worth. If suppose we develop any advanced SKU. Did we pitch the customers, "Okay, we have developed something really efficient, would you be interested in buying?" Or something like that? I mean- No, that's a- Do we try to cross-sell and upsell? Yes. This way, actually, for doing this way, actually, this work, we put in our laboratory, the Thermotech Research Laboratory. Actually, what happens if some customer have their own laboratory or some they don't have. So what happens- If somebody or OEMs, they have laboratory, so they are busy in new development only. They are not working on existing product or all product. So what we will do, we will go to the customer, or we will offer to them, "Okay, we can develop a new series or new energy efficient or new high efficient product for you." So we can take a complete product from them, and we can have our laboratory. We can test on their existing product, and then we can have data for their existing heat exchanger. Then we can have software. So we can do the simulation. Then we can design new heat exchanger, energy efficient, cost efficient, and then we will test in our laboratory, and then we will go to, again, customer, and then we can have our test certificate, and then we can offer to them some saving, and some saving we can also retain. This way, we already started work with OEMs. We have already some team for them work. Once we have lab, so we will start this work also. Got it. And sir, would you be able to provide us the breakdown of margin profiles across end sectors, say, oil and gas or chemicals or others? I'm just trying to understand which sector offers the highest margins. This, as of now, we are not doing, and I unable to answer if we can give or not. Let me check with my team, and if we can give, we can provide you separately. Okay? Sure. And sir, last question. Any guidance for the top line and margins for the full year FY 2026? It is like this. You can say last quarter and this quarter, still we will be in some pressure because of HVAC. You can say income is less, but of course we have expense. But from third quarter, we will start to ramp up, and then till fourth quarter, we are able to achieve on existing margin. Then good numbers you can expect from next financial year, because this RIPS policy we will be able to get, I think, from third quarter. This PLI also from next year. So these two will maybe give you the more benefit on these margins. However, our export also will start from third quarter. So these numbers if we land, then of course margin will start for sure from next year. This running quarter, we will have pressure, but third quarter, maybe you can expect similar way. Great. Sir, thank you so much. Best of luck. Thank you. Before we proceed with the next question, I would like to remind participants that you may press star and one to ask a question. The next question is from the line of Sanjay Nandi from VT Capital. Please proceed. Hello. Good evening, sir. Thank you for the opportunity. Sir, just to guide it, 18% has been our total exports, roughly 45.25 exit. We are planning to ramp it up to 50%, right? Is my understanding right, sir? Yes. So sir, if we plan to ramp it up to 50% of our total sales, then what could be our incremental overall margins? If you can give some ballpark numbers in next two to three years down the line. Can we expect something like 18%-20% kind of what you used to do earlier? No, actually, there is some, maybe, I can maybe again, on some product life. As of now, we are doing fin and tube heat exchanger. Okay? Okay. Fin and tube, we are expecting same margin till this year. Next year, of course, it will be able to increase because of export, because of PLI, because of RIPS, and of course because of solar, these things. But other side, we are going to add some new product as well. Some new product, like from refrigerator side, we will have thin margin compared to our existing product. However, we have Bar & Plate, have good margin compared to our existing product. If we average out all things. This year we are going to achieve on similar way and maybe slightly down because of this HVAC pressure. But from next year, we will able to increase one or 2% on existing product due to these PLI and RIPS and the new income tax scheme and these things. However, other side, we will have overhead is more compared to existing. When we have depreciation also is more compared to existing. If I club these, we can maybe slightly 1% or 2%, we can able to achieve more, if I club all things. Got it. Sir, if we presume everything will be in production from the next year, beginning onwards, FY 2027 onwards. So what kind of total sales can we just expect in next 2 to 3 years down the line? From INR 450 crores currently, what kind of thing we can expect in next 3 years onward, if you can give some visibility for us? Numbers exactly I cannot share. However, this year we are expecting 20% to 25% of capacity utilization from new facility. Then next year is around 50%. Then 3 year from now, you can see almost, say, 30% we can utilize from new facility. Our existing facility is almost full. Good. Sir, what is the current debt profile you have as we talk? Sorry, can you please repeat again? Yeah. What is the current debt profile? Like the net debt, if you can help us with the numbers. No, I think voice is breaking. What is your question? Yeah. I just wanted to get the figure for the net debt. As on date. Net debt. Actually, sorry, your voice is blurred actually. So maybe if somebody I will try to stand by cam. Hello sir. Now you can hear me? Yes, I can hear you, but once you This word is blurred actually. Can you repeat again? I will try. Yeah, I would like to get a figure for the net debt. Net debt. Okay. Yeah. So as of now, this term loan, we have very less, around 2 CR, and we have working capital only. Because we have some FDR. As of now, you can say we are in a position almost zero as of now. Okay. Yeah. Got it. Sir, just to mention that, like today's news, some data center cooling CapEx is coming up, 1,000 odd crores. What would be the quantum of our pie in that entire CapEx? I don't have exact number, but today I only in some news, Google announced they are going to invest INR 50,000 crore in data center cooling in India. I'm expecting, I think 10% of HVAC system. I don't have any data, I'm just assuming my own experience. I think the data centers can be 10% of HVAC system. So maybe it's roughly INR 1,000 crore, I think, only this project. INR 1,000 crore for the heat exchanger, HVAC segment. Yes. Like I imagining it. Sorry? No, it is fine, sir. Just a ballpark number I wanted. And sir, what is your industry size as of now, as we talk? That question actually, I recall, I remind because heat exchanger have, like room AC also have heat exchanger and other industry also heat exchanger. So it is the same product, Fin and Tube Heat Exchanger type. So industry size is, I think, more than INR 4,000 crore if I club all. But if commercial sides, I do not have exact numbers because it is a mix actually. No issues, sir. Great. I will come back in a queue, sir. Thank you so much for your time, sir. Thank you. Thank you. The next question is from the line of Mohit from Shubhlaxmi Research. Please proceed. Hi, sir. Just a follow-up on a previous participant question. Since we are planning a utilization of 25% this year from the new capacity, and the peak revenue from our capacity is INR 2,400 crores. So can we do a INR 600 crore revenue this year? No, I think numbers, I never said the INR 2,400 crores. So it maybe, we went, we have INR 300 crore. That time we said it's the six times, so we expect similar way. So we are expecting from that way, 20%-25% this year. So, sir, from it calculates around INR 1,800 crores. So INR 1,800 crore, 25% will be around INR 450 crores this year. So numbers, I need to calculate. So maybe I can reply you personally or maybe, or you can share the contact detail with Mr. Yogesh Patil, then we can let you know. Okay, sure, sir. We will take this offline. Yeah. And sir, my question is, like you mentioned in earlier comments that we have installed all the machinery in new plants. So what amount of capitalization are we seeing this year? For balance sheet, right? Yes, for balance sheet. Are you asking numbers or value? A ballpark number. Yes, a ballpark amount. I don't have that as of now. This also I can maybe reply to you later because I need to check with account. Okay. Still balance sheet not ready for this because after that also we received some machine after quarterly result. We also let you know separately. Sure, sir, we can take this next time. Sir, since the U.S. tariff has been implemented, after its implementation, do you not expect any downside in demand from U.S. or will we see the same demand as earlier? Honestly, we have as of now one or two customers only who regularly, so their side, we don't have any negative feedback and some customer is already a poor state. From their side also, we don't have any negative remarks. Because this product, if they want to develop from other source, then also they have to take some time and if they buy from locally, of course, their price is much higher compared to us. If they add duty as well, or if they will buy to other country like China, I think China also have more duty compared to us. As of now, we are expecting there will be no much impact on us. However, from my personal opinion, I think this can be, I think everybody knows when we can change this, we also don't know. We are working only our way. We are not considering what will be the tariff in next or what will be they come. Let's see what will happen. As of now, there is no impact on us. Okay, sir. Hi, Mr. Yadav. This is Prateek Desai from CMT. Mr. Yadav, we have been reading about these district cooling centers, which probably is a probable alternative to HVAC, where a small part of the entire city is cooled or chilled or refrigerated with the help of district cooling center. I just wanted to get your opinion on, does it also require the evaporators and the condensers, or is the infra similar to what the current systems are? Our product will still go if district cooling centers are built. Probably there is one big tender in Amaravati which has been won by some Dubai-based conglomerate, if I am not wrong. Okay. This is good question for me. What happened, as of now, maybe in the middle of big city, like Delhi or maybe Bombay, everybody have their own heat exchange, like air conditioning, maybe split or maybe window. Of course, heat is also going outside and maybe if nearby some other buildings, there is maybe suffocation also in between both building, and of course, energy-wise also it is wasting. This I heard maybe I think few year back, 4 to 5 years, government is planning like that. They are making one HVAC system, maybe combined for all society or maybe they can club maybe 1,000- Yes 2,000 homes, and then they will supply as a gas supply what we are getting from outside as of now. Yes. They will put the meter as well. For us it's good. This cooling need heat exchanger, and that we are making only commercially. We call commercial heat exchanger. Room AC, actually as of now we are not supplying, so our market share in room AC almost zero. But this cooling, our share will be almost more than 60% or 70% because we are the expert of the bigger heat exchanger or maybe commercial heat exchanger. Our heat exchanger, for sure, they will use on that metal boss your new technology. Room AC, our market is not there. For us it's, I think, good. Understood. You mean even if district cooling center comes, the evaporator and the condensers are going to go nowhere. They will require it, in fact, even in bigger sizes, probably. Yes. Because heat exchanger for sure they need, and they will put water-cooled or maybe air-cooled chiller. As of now, air-cooled chiller is our big market still, because it's similar with data center. Our product for sure will use even room AC, our product, because we are now supplying to room AC. Room AC, fin and tube is there, but not is our market. This is our market. Yes. Understood. This was very helpful, Mr. Yadav. This reminds me of one follow-up, if I may. Mr. Yadav, we are seeing in the high-end residential projects, these days builders are now giving a central AC sort of arrangement in the entire apartment. There also, in case the split ACs or the window ACs are not there and the entire building is air-controlled with a central AC system, there also, market share, TAM for us will increase, right? Is that fair understanding? Yes. It is the same what we discussed because the central cooling also is same process they use. There is two or three way. They put the chiller, maybe. This chiller can be air-cooled, chiller can be water-cooled. Then they have air handling unit and there they have fan coil unit. It is the complex, complete system. It means our coil- Understood we are supplying to fan coil as well, AHU as well, and air-cooled chiller as well. Yes. Understood, Mr. Yadav. Mr. Yadav, those were our questions. We just request a reply back on the 25% capacity utilization and commensurate revenue for FY 2026 from the new plant. If your team can reach back, that will be very helpful. Yes, sure. Thank you, Mr. Yadav. Good luck for the entire year ahead. Thank you, sir. Thank you. The next question is from the line of Yogesh Patil from Dolat Capital. Please proceed. Thanks a lot for the opportunity. Sir, quick math I have done. As you mentioned, Q2 will again take a little bit time to ramp up on the new facility. So our revenues will be largely in line with the current quarter. Correct me if I am wrong. Secondly, I have done small math. Suppose in the second half of FY 2026, if the facility ramps up with the 25% utilization, then can we expect INR 200 crore kind of a revenue from the overall consolidated side per quarter? Is that a correct understanding? So that FY 2026 overall calculations comes around INR 600 crore or INR 620 crore kind of a total revenue. If you could throw some light on these numbers, if possible. So honestly, exact number I cannot comment, but however, that is for sure the main ramp-up on production side will start from third quarter from this year, and then fourth, of course, it will increase much compared to now or maybe third quarter. So we are expecting it compared to full year is 20% to 25% of utilization from new facility. Yes, that is for sure. Okay, that is fair enough. Secondly, can you provide some details on the order book for the next few months, which are in our hand? How much time it will take to deliver? Any broader picture you can give us? I think that question is a repetition of the last call also, because we don't have business like that. Project work we are not doing. Customer we have, they developed us, and then they have open orders for only one month, because based on their requirements. Then it's rolling, actually. Each customer we have open order for maybe next one month only. Then once we will have new month, then they have some, even they can share the forecast on mail. Okay, this will be done once we are able to ready to material for dispatch, and they share the view, something like that. We don't have order books, something like that we can share because of we don't do project work or long lead time we don't have. We are just rolling, actually, each month. Thanks a lot, sir. I will come back in the queue for questions. Yes. Thank you. Thank you. The next question is from the line of Hiral Parekh from Dolat Capital. Please proceed. I would request Ms. Hiral to unmute herself and then speak. Yeah, most of my questions have been answered. Thank you. Thank you. The next question is from the line of Rakesh Gosla from Dhansey Technical Investments. Please proceed. I would like to request Mr. Rakesh. Yes is out of the queue. I will proceed to the next question. The next question is from the line of Shiv Kumar Prajapati from Ambit Investment Advisors. Please proceed. Yeah. Hi, sir. Sir, I just want to understand about the other expenses. Would you please be able to make us understand what the other expenses include and what part is fixed and what part is the variable? As of now, for further expansion, we are thinking to get, in our portfolio, complete product, actually. Backward integration we already did. As of now, we have complete heat exchanger range. Even we are the only one who have 21 geometry in India market for the heat exchange fin and tube type heat exchanger. Then we have completely sheet metal range, including laser and turret punch press. So we can make big part and small part as well. Then we have manifold side, like tubing, we have completely. Now we are thinking to make complete assembly, completely for commercial side. It is like railway air conditioning or even something like that. So we can assemble and there will be almost very negligible investment, and we can start the production immediately. That way we are thinking, but however, in next one or two months, something conclude, and then we will let you know the market. No, sir. Actually, I was looking for that other expenses part on the profit and loss statement. Okay. Okay. Okay. Yes. I thought you ask other expenses. So other expense, I think, I need other expense. Do you have? Because as of now, this data also, I don't have in front of me and the CFO. Maybe we can share separately, right? Sure, sir. Sure, sir. Yeah. I thought you asked for- Thank you. I go to the As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments. Thank you everyone. I received some good question, and I really appreciate for who joined us for today call. We are working, I think, on what we promised as of now to market, and surely we will achieve what we said earlier and what we said now. Market is good, and we have some good on track order as well in pipeline. Customer is also appreciating our new facility. Hopefully everything will be well in coming quarter or coming years, and we will achieve what we said. Thank you. On behalf of Dolat Capital Markets Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.