Ladies and gentlemen, good day. Welcome to the Venus Pipes and Tubes Limited Q4 and FY 2026 earnings call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen-only mode. 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 touch-tone phone. Please note that this conference is being recorded. Sorry. I now hand the conference over to Mr. Aasim Bharde from DAM Capital. Thank you. Over to you, sir.
Thank you. On behalf of DAM Capital, I welcome everyone today for Venus Pipes and Tubes Q4 FY 2026 earnings call. From the company side, we have Mr. Arun Kothari, Managing Director, Mr. Dhruv Patel, Whole Time Director, and Mr. Kunal Bubna, the CFO. I hand it over to Mr. Kothari for his opening remarks. Thank you. Over to you, sir.
Good evening. A warm welcome to everyone on the Q4 and FY 2026 earning call for Venus Pipes and Tubes Limited. I have been joined by Mr. Dhruv Patel, Director, Mr. Kunal Bubna, CFO, and SDM, our investor relation advisor. We have uploaded our Q4 FY 2026 investor presentation on stock exchanges and company websites. I hope you had an opportunity to go through the same. FY 2026 was a year of continued momentum and steady progress for the company. Throughout the year, we remained focused on two key priorities. First, successfully navigating the challenging global environment. The year saw multiple disruptions globally, starting with uncertainty around hard tariffs, followed by geopolitical tensions and Middle East conflicts. In today's interconnected world, no economy or business remains untouched when such events occur. The biggest impact is usually seen in supply chains, whether it is sourcing raw materials or executing exports smoothly.
Despite these challenges, we navigated the environment well and continued to deliver sustainable growth. Our backward integration helped mitigate the business from raw material volatility, while our diversified presence across sectors and geographies also largely supported resilience through the year. While raw material prices and gas shortages increased, our strong procurement system and operation efficiencies helped us manage the impact effectively. However, a prolonged period of elevated raw material prices may have some impact going forward. We remain focused on driving further efficiencies across the businesses to further strong resilience and custom performance. On the export front, we delivered an 18% growth in FY 2026, which is a strong performance considering the global situation. Q4 did witness some temporary softness due to the Middle East conflict, but our diversified export presence helped us to maintain momentum.
Europe continues to remain a strong market for us, and our broad customer base across regions has supported in export. At the same time, domestic demand remained robust, particularly during Q4. We continued to witness healthy momentum from sectors such as power, oil and gas, engineering, and industrial applications. In addition, we are now seeing opportunity emerge from several new age industries, such as data centers are creating demand for cooling and chiller applications. Semiconductor manufacturing requires high-quality piping solutions for cooling systems, and solar manufacturing is also opening new avenues for us. We are receiving increasing inquiries from these sectors and have already secured an LOI from the data center segment, which reflects growing confidence in our capabilities. Additionally, the company is also exploring the CNG, PNG sector where there can be a good demand for our products.
Overall, despite a difficult global backdrop, the company remains resilient, continues to grow across domestic and export markets, and further improve its position in the stainless steel piping solution space. The second major focus area for us during FY 2026 was expediting our CapEx plan and expanding our product range. One clear vision for Venus has always been to become a complete one-stop piping solution provider for customers. In line with this vision, we had announced our forward integration into fitting, along with the addition of higher grades in welded pipes, tubes, and seamless tubes. I am proud to say that entire CapEx program has now been fully commissioned. This is an important milestone for the company and takes us one step closer to becoming a comprehensive solution provider for our customers.
Currently, the company's total installed capacity stands at 27,600 metric tons per annum for welded pipes and 20,400 metric tons per annum for seamless pipes. Apart from the fitting capacity, earlier we had planned expansion of 4,800 metric tons per annum in seamless pipe and tube capacity. However, considering the demand outlook and growing customer requirements, we decided to further enhance the project to 6,000 metric tons per annum by adding additional lines, including 1,800 metric tons per annum getting into operation in November 2025 and 4,200 metric tons capacity getting into operation today. Alongside this, we also added equivalent backward integration capacity for seamless pipe and we are 100% backward integrated for the 20,400 metric tons per annum capacity to manufacture mother hollow pipes which will further strengthen our operational efficiency, improve supply reliability, and support long-term exclusivity of the business.
The expansion significantly increases our product offering and our ability to serve our customers across a wider range of applications and industries. Our entry into fitting along with our broader stainless steel product portfolio places us among a limited number of players with such integrated capabilities. This not only improves our customer relationships but also opens opportunities in sectors that we have high technical requirements and strong entry barriers. Going ahead, we believe that this investment will help us deepen our market presence, improve our value proposition for customers and support long-term growth for the company. In regard to our order book, our order book is today estimated to be INR 450 crores without LOI of INR 185 crores that we have recently awarded by one of the leading data centers and remains well-diversified.
To conclude, the FY 2026 was an important year for the company, where we continued to deliver steady growth despite a challenging growth environment. I will now hand over this call to Mr. Dhruv Patel, who will share key developments.
Thank you, Arunji. At Venus, we have always maintained an ambition to be a one-stop piping solution provider for our clients. In line with this vision, we are now further forward integrating into spooling solutions with a CapEx of around INR 70 crore. The investment will be utilized towards setting up a dedicated spooling and fabrication facility, fittings machinery and related infrastructure. This CapEx is backed by INR 185 crore LOI for order in the fast-growing data center segment. This also marks our entry into data center space, which we believe is a high potential segment with strong locked-up opportunities. What makes this achievement even more encouraging is that we secured this despite currently not having an existing spooling setup.
The win was driven by the group's strong reputation, established welded pipes capability across major SKUs, combined with our newly added fittings capacities which reflected customer confidence in our technical strength, execution capabilities and ability to scale. This development is strategically important for the company for multiple reasons. First, it enables us to move further up the value chain and evolve from being only a product supplier to becoming a more integrated solution provider. Second, spooling solution carry higher value addition, better realization and stronger margin potential compared to standalone piping products. Third, this business will create strong backward linkage benefits by improving utilization of our existing welded pipes and fittings capacities, thereby enhancing overall operational efficiency and strengthening our integrated business model going forward. Moving on to other key updates for the quarter and the year.
First, we have acquired an additional 15 acres of land adjacent to our existing facility. This gives us a strong platform for future expansion and provides the company with long-term flexibility as we continue to scale capacities, expand product offerings, and enter into new segments. Second, we are further strengthening our leadership and business development capabilities. We have recently appointed a senior marketing professional with deep industry experience to enhance our presence in emerging and high-growth sectors. This will help us build stronger relationships with clients in new-age industries like data centers, semiconductors, clean energy, and other specialized applications. Third, we have also installed a tandem JCO press for manufacturing longer welded pipes. This is an important capacity enhancement as only a limited number of players currently manufacture such products.
The addition of this machine expands our product range, strengthens our positioning in specialized applications and enhances our ability to cater to large and more complex client requirements. With expanded capacities, a wider product portfolio and strong clients trust, we believe Venus is well-positioned for the next phase of growth. We remain focused on building a scalable and value-added business, and thank all our clients, employees, and shareholders for their continued support. With this, I hand over the call to Mr. Kunal Bubna, our CFO, for financial updates.
Good afternoon, everyone. We are pleased to share that our company has delivered a record performance in the fourth quarter and full year ended March 2026. On revenue front, revenue from operations for Q4 FY 2026 stood at INR 302.2 crore as compared to INR 258.1 crore during Q4 FY 2025, achieving a growth of 17% year-on-year basis. Revenue for FY 2026 stood at INR 116.8 crore, witnessing a strong growth of 22%. Revenue diversification for the quarter was 59% from seamless pipes, 34% from welded and seven from others. Growth in the seamless segment was 18% year-on-year basis, and welded segment registered a growth of 15% for Q4 FY 2026 year-on-year basis in terms of revenue. Export sales stood at INR 87.8 crore for the quarter compared to INR 112.5 crore in the same period last year, impacted by temporary disruptions arising from the Middle East conflict.
However, we continue to maintain our export revenue share of more than 30%. On the EBITDA side, our EBITDA for the quarter stood at INR 49.4 crore as compared to INR 41.64 in Q4 FY 2025 with a growth of 19%. EBITDA margin for the quarter stood at 16.3% compared to 16.1% in the same period last year. On a FY 2026 basis, EBITDA showed a growth of 14%, standing at INR 190.6 crore with a margin of 15.3%. PAT for Q for FY 2026 is INR 25.4 crore compared to INR 23.7 crore in Q for FY 2025, a growth of 7% year-on-year basis. Net margin stood at 8.4% for the quarter. Our EBITDA to CFO conversion stand at 59% for FY 2026. We look forward to a disciplined FY 2027 with a strong focus on scaling operations efficiently, improve capacity utilization, driving sustainable growth across business.
Alongside growth, we remain equally focused on maintaining healthy cash flow conversion, operational efficiency and disciplined capital allocation, as we continue to strengthen the company for the long term. With this, I would like to open the floor for 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 phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Parth Bhavsar from Investec. Please go ahead. Hello, Parth sir.
Hello. Hello. Yeah, you can hear me?
Yes, I can hear you now, sir. You can go ahead with your question.
Yeah. Hi, sir. Thank you for the opportunity. Sir, I have a couple of questions on the new foray. I wanted to first understand the spooling business. When will it come on stream, and what is the revenue potential, and what sort of EBITDA margins are we looking at here?
We are targeting to get on with this business by end of this calendar year. By turn of, we see a turnover around three years of investment is expected from this business. It will be a higher margin-driven business, higher than what we currently earn in our business.
Okay. This INR 185 crore order book, this would be executable in what sort of time period?
Maybe around 15 months.
Okay. Sir, similarly, just wanted to get a sense on this JCO CapEx that we are doing, INR 12 crore. By when will it come on stream, what is the revenue potential like? Also if you can give some color on the sizes that it would help us make.
JCO generally, currently we do manufacture from JCO pipes. This is a higher gauge of JCO which can make a longer length of LSAW pipes. Primarily, it is a competitive edge. There are very few in the country who manufacture those lengths. It will help us to qualify for many of the tenders where we are currently not able to, and it will give more visibility on the side of order. The capacity primarily remains the same because it is one of the extension of our SKUs primarily.
Okay. This will come on stream by?
It's more or less we are done with it to get completed.
Okay. Sir, this CapEx where we've increased our capacity instead of 4,200 to 6,000. What sort of CapEx did we incur on this incremental number for.
Total for seamless welded and putting into this has been more than INR 200 crore.
INR 200 crore. Got it. Fair. Sir, now, since we are adding this spooling capacity, what sort of revenue and margin guidance that we are giving for FY 2027?
See, for FY 2027, we see it should be at least more than 20% growth. From the margin perspective, we see it will be higher from what we have achieved in the last financial year. We have been saying that it should be more moving towards 17% and then to 18% by FY 2028. I think better level.
Okay. It will be higher than 16.3%, which was reported.
Yes.
In 2026?
Yes.
Okay. Sir, those are my questions. I'll join back. Thank you.
Thank you.
Thank you. The next question is from the line of Sneha from Nuvama. Please go ahead.
Hi, team. Thanks a lot for the opportunity. Just a couple of questions from my end. What would have been the volume growth in this particular quarter as well as the full year of FY 2026?
For FY 2026, it had been around 15%. For the quarter.
15%?
It has been about 15%.
Okay.
For the full year.
Okay.
For the quarter, it has been around 2% roughly, around multiple percent.
Sure. Could I maybe break it up into seamless and welded?
Primarily, see, the growth on the side of seamless had been more than 15%, seamless and the welded was around 10%.
Understood. What is the guidance now for next year's standard?
It's more than 20% from here.
Got that. Secondly, I just wanted to check on your working capital now. How do we see that changing going ahead, and what is the new business that you're getting into data centers and all? What kind of working capital is needed in those segments?
On the sales basis, it's around, then you see it appear around one to two days near to that. We believe it should continue even in the new business also. Similar type of working capital we are seeing in the new business.
Okay. There will be no change in working capital is what you're suggesting.
Not major we are seeing any changes.
Got that. Sir, when are we going to start, and what is the total order book standing at at this point of time?
INR 450 crores. Plus the LOI what we have received.
Execution of this new order starts from for data center?
See, it's an LOI being received, so we are expecting the order soon. As and when that order being received, and we are building up the facility also. These all things get completed, we'll definitely start earning it, but we believe the period of completion should be at least 15 months from here.
Understood. Thanks a lot, team, and all the best.
Thank you.
The next question is from the line of Bhargav Buddhadev from Ambit Asset Management. Please go ahead.
Yeah. Good afternoon, team, congratulations on a good set of numbers. Sir, my first question is that just on the basis of this INR 185 crore LOI, we are incurring a INR 70 crore CapEx. Obviously the visibility on this business seems to be much, much higher. If you can spend some time on that, sir.
See, just to brief you about the business, basically, there's a cooling which circulates through a closed loop network to the server and critical equipment. Primarily these fluid networks are increasingly being used in modern data centers, especially in AI and high-performance computing environments for advanced thermal management. Primarily, the fluid network offers several advantages like improved high cooling efficiency, lower energy consumption, improved temperature stability, and it enhances reliability. These systems are particularly relevant for AI-driven data centers where computing density and heat loads are significantly higher. I see the CapEx is definitely towards cooling, but the cooling is something which is required by It's like each industry which are using SS pipe can use cooling. It is like PEB for piping you can say. Spools are used to avoid on-site fabrication.
The pipes are fabricated with fittings in the factory and connected by nuts and bolt at the site only. That sort of spool demand can be there for many of the sector going forward that we are in. Again, it also includes few expansion on the side of fitting and all, which we have currently started also. It's a mix bag and definitely this order is a new one for us. Further, we are working on it and see more things to come.
Sir, this INR 185 crore LOI is from a single client?
Yes.
Okay. Lastly, sir, on this BHEL new ordering, is there any visibility? We were expecting some tenders to open. What is the timeline on that? Any sense?
Yes, Bhargav. We had already L1 in some of the tender which we will able to get order in the next one or one and a half months. Almost more than INR 50 crore order we are L1. That order we will be receiving next 30 days to 45 day time. Further new tender, we have already participated in number of tenders which will going to open in the months of August or September. By the second quarter of this financial year, we will able to get more orders from the BHEL side. Apart from which, Bhargav, we are focusing from this spooling operation because nowadays the AI data center is booming market in India. A lot of investment is coming. That is why we started this facility which will accelerate our pipe and fittings as well. This is a very good opportunity in the market.
We are first who will do like this, created this facility, in particular in stainless steel pipe industry, who is providing this solution to clients.
Great, sir. Thank you very much and all the very best.
Thank you. The next question is from the line of Mihir Damania from Fident AMC. Please go ahead.
Yeah. Hi, team. My first question is on the INR 200 crore CapEx, which you won, let's say from the start of financial year to like May 2026, around INR 200 crore. What are your revenue? What's the revenue potential from this incremental CapEx at like let's say peak utilization?
See the CapEx is more than INR 200 crore and we believe if it is fully utilized, the 100% CapEx utilization, it can give us a turnover at least maybe around three times.
Okay. Wanted to get your sense a bit more on your export side of the business. This quarter, of course, we saw a sharp decline on the export front. What's your outlook over there? It doesn't seem that the Middle East crisis is going anytime any soon. What's your outlook on the full year going ahead, especially on the export side, it's now almost a third of the business.
See, of the current order book also, we are doing our exports percentage roughly in the range of around 14%. For the FY 2026 and carrier, we have maintained a run rate of generally around 30% for each quarter, more than that. We believe going forward also, more than 30%, 35% range should continue on the side of export.
Okay. Got it. My third question is, if you look at your company, let's say, in the longer term basis, for the last almost 9 quarters, we are at an INR 25 crore-INR 28 crore kind of PAT range. While we've invested a lot, let's say, like value-added pipes, fittings, increasing capacities in seamless as well as welded, it's not actually showing impact. Would we expect FY 2027 to see a material improvement in PAT as the quarters go by, or do you see it because of the raw material challenges, some inflation, it might take a bit more time to accelerate the PAT growth for the company?
No, the PAT growth should come. Primarily if you see generally the major portion of the CapEx has been completed. All the available resources will be deployed in coming quarter to come. We believe each quarter we should keep on improving, and I think it should come also to the PAT number also. We believe we should keep on improving from here. Generally, many of the projects which have been started are value-added, it seems it should show as a result at the PAT level also.
Okay, got it. Thank you and congratulations.
Thank you. The next question is from the line of Sahil Karia from White Pine Investment Management Private Limited. Please go ahead.
Yeah, thank you for the opportunity. Sir, could you give us the capacity utilization number for the quarter and for the whole year for welded and seamless?
More or less, for the year, seamless was actually utilized more than 90%-95%, and welded something around 60%-65%.
For the quarter?
More or less same.
Okay. Thank you so much. Thank you.
Thank you. The next question is from the line of Parikshit Gujrati from Niveshaay. Please go ahead.
Yeah. Thank you for this opportunity. Most of the questions on the spooling side have been answered by the management. I had just one question on the unit economics. What is the amount per megawatt of spooling solutions required? Per megawatt extra data center, what is the amount of spooling solutions required in tons?
No.
Yeah, please say.
Yeah. Becoming part of megawatts, the spooling solution required, this become on the which type of data center is going to install the data center operator. About this figure, we are not much aware. Only the engineer of data center design the data center on the basis. We normally, the information required by the data center, the key, what type of spooling they will require. It depends on the type of data center they used to going to install. It cannot be certain, but there will be. We are seeing very good demand of the extension pipe spooling as well as fitting in the data center because they believe in the quality or they require the reputed player to supply the pipe fitting because it used in the critical operation. Because single penny on the dock also going to destroy their GPU system.
That's why all the data center operators want the materials to be supplied by the reputed player where they require the clean room environment and other things. In India, we are first, the very reputed data center has given us this order after seeing our facility, after seeing our growth, after seeing our quality of the product.
Sir, what kind of.
Sorry.
Investment per ton can we expect?
See, again, these are again sold order number. Primarily, this needs to be seen.
Okay, got it.
Thank you. The next question is from the line of Sahil Sanghvi from Monarch Networth Capital . Please go ahead.
Hi. Thank you for your opportunity and many congratulations for a good set of numbers. I just wanted to confirm the volume growth numbers that you have answered to the previous participant. You said 15% growth on the seamless side for the full year.
More than 15%, yeah.
More than 15%. On the welded would be around.
Around 18% and 10% towards welded.
Okay. How was the pricing behavior for the full year versus FY 2027?
Slightly increased. It was slightly increased 5%-7%. Again, because of grade mix and all, that has also happened.
Okay. Seamless tube prices have risen by a good 6%, 7%, if we had to compare from the December lows. Will we see that effect entirely coming in FY 2027? Your guidance on 20% volume growth, we can expect some bit of more pricing growth on that to translate into revenue.
Definitely, there had been some increase in the prices of RM and all. We believe the 20% guidance, I believe we should achieve on the volume front, at least.
Okay. Got it. A general comment on the demand scenario, if you can answer with respect to how things are working in the export market with respect to the disruptions on the Middle East war, the cost inflation, if you're seeing anything, how the gas cost is working for you, and the demand in domestic market, if you can answer this.
In the U.S. market, we are seeing demand. Definitely, yes, from the Middle East because of this crisis. We are also not able to do much out there, the order from Middle East is also gone. We are not seeing much flow from that side, we hope it should improve and those things also started. We start receiving order from that side. Europe is going as per. We generally have the highest volume in Europe only, this is continuing last quarter. From the domestic side, we are seeing demand in CNG, power, oil and gas, engineering, chemical. These are the four-five sectors where we are seeing demand.
Apart from [Tirlin], right now we have the order book of the INR 450 crore. Apart from this, we have already received the LOI for supply to data center spooling solution. That's near about INR 112 crore. Apart from that, we are already L1 in some of the BHEL tender, that is INR 50 crore. Altogether, we can say our volume will be near about INR 355 crore visibility we are already having. Out of INR 355 crore, the export we can say is 30% is the export book, remaining is from domestic market. At least for the next two, three quarters, we are seeing good visibility. Further, new tender and new order, we have already bid for the number of projects in the domestic also. Once this Middle East market will open, lot of inquiries coming from Middle East market.
We have already received some of the new approvals from oil and gas sector of the U.S.A. and the others from the Middle East also. We will see once the Middle East market, the conflict will be over. We will see good demand from there. At least for next two to three quarters, we have the good visibility from Europe market, U.S. market, as well as from domestic market.
Perfect. That is good to hear. Just confirming, you said the spooling business, you expect the facility to be set up by December 26, right? Is that correct?
Yeah. Perfect. We'll do operation before that, December 26 is the last date.
Perfect. Well done, sir. Congratulations. All the best.
Thank you.
Thank you. The next question is from the line of Deepak from Sundaram Mutual Fund. Please go ahead.
Yeah. Thank you for the opportunity. Am I audible?
Yes.
Yeah. Hi, sir. My first question is with respect to this spooling business. If I heard you correctly, you said the asset turn in this business is around three times, right? The working capital is similar to, let's say that 120-130 days, which we are currently doing in the base business. Correct?
Yes.
Sir, if I do a back calculation, assuming a 20% EBITDA margin, the ROC for this business is more than 25%. Is that understanding also correct?
It should be, this INR 180 crore will also include a part of our internal facility of pipe and fittings. Each order has their own component of this fitting pipes and other motor components. This will vary from each order to order.
When we say that we have received this LOI from a single customer, the customer in this case would be the EPC contractor to whom we'll be supplying this, let's say, assembled pipes. Because ultimately, the MEP work has to be done by the EPC contractor for the data center, correct?
We have received from one of the data center only. Data center will take this. We have only received this LOI from the data center. Data center will take this material with us or some of the fabricators will install on their site.
Okay. Sir, what were the criteria for us to win this LOI since it's a new business for us, and since, as you also highlighted, it's a critical application. Any small damage can also result in shutdown of the whole data center capacity itself. What criteria were decided before giving us this LOI? Because it's a new business for us.
Exactly. After seeing our facility, we have the pipe facility as well as the fitting facility also. Again, they require the fast execution of their project. We have given commitment to them. We will be able to do fast execution for this. They've seen our execution. On that basis, they have awarded this LOI to us.
See, there had been a technical capability team that our tech data, which has showed how can it be executed. See, we manufacture the right number of SKUs, both on the side of welded seamless and many of the fittings. Numerous number of fittings products are also coming underway. We think that was also a criteria which helped us to qualify for it.
Okay. This spooling business, as of now, who would be our competitor, let's say, both from a domestic and a global standpoint?
Domestically, for this, there remains some little competitor is there. They are having only fabrication facility or spooling facility. They don't have the ability to the pipe or fitting. We are at the better way who is providing this solution to data center with the pipe and fitting capacity. We will be in better position to them because everybody's data center operators will get timely delivery, timely execution into everything. We are the first one in the pipe segment who has awarded this contract. Other players are only simply, you can say, substitutes who are engaged in this business.
Okay. Sir, for us to convert this, let's say, first of all, you will have some trial runs, right? Only then you will start the commercial supply.
Yeah.
Generally, as per your understanding, as things stand, how long do you think this phase will convert from trial runs to actual commercial production?
Almost trial will be over in the Q2 of this financial year, commercial production we are expecting to start in Q3, mid of the Q3.
Okay, good to hear that. Sir, one question I had on CapEx. Given that you are spending INR 70 crore here, you will obviously have some other maintenance CapEx for the base business as well. For FY 2027, what kind of CapEx number are we looking at at a console corporate level?
INR 90-INR 100 crore.
INR 90-INR 100 crore. Okay. One last question on our growth guidance. You are guiding for 20% kind of growth. If I look at your order book, in March 2026, we ended with INR 450 crore order book, right? Which was almost a 20% decline versus previous March where we had a large order win from BHEL which propelled the order book to almost INR 575 crore. Right. Starting this year on a lower order book plus you are seeing some weakness in the export market. I understand that Middle East is not a big market for us, but even the U.S. and Europe, because of this energy inflation, they are talking about slowdown in the macro economy itself, right? The CapEx plan of other industrial equipment where our stainless steel pipe goes.
Just wanted to understand with a slightly weaker order book and export being a little softer, what gives you the confidence that you will be able to do that 20% growth since this data center business is also commercializing mostly in FY 2028 or maybe let's say December of this calendar year?
Definitely. Almost if you see, right now, we have the order book of the INR 450 crore of this pipe business. Apart from this, we are already L1 in some of the tender, which is value of INR 50 crore, which is going to be complete in the next two quarters. Apart from this, we are already LOI for this data center. Every month we are getting lot of inquiries from the local project over here, as well as from the U.S. market and Europe market. This growth, apart from this, we are already starting a new business fitting segment, which is a part and parcel of the pipe business. Where pipe is required, the fitting is required. Seeing all this thing, we are confidently we are able to do growth more than 20%. Even if you see, this FY 2026 was also very challenging year.
Compared to FY 2027, we are focusing this FY 2026 was more challenging, where lot of the Middle East conflict, Russia-Ukraine conflict, then U.S. tariff war, lot of things were there. Even then also, we are able to achieve more than 22% growth on the top line. This year already we have started with the CapEx. We are very hopeful we will able to do growth more than 20% in the FY 2027.
No, sir, I understand that despite all these challenges, we really showcase a good set of numbers, at least on the top line. Congratulations on that. Delivering a 20% growth in FY 2027 also, just want to know your thought. How are you kind of thinking about it? Let's say, if I have to simplify further, what kind of absolute revenue are we anticipating from fittings and our new venture, which is your hygienic and titanium tubes, and then the base business in this INR 1,400 crore kind of rough range which you are guiding for in 2027?
All these things we can elaborate in the one-to-one call to you at any time. We'll elaborate on that, what's our plan. But we are expecting on order basis, we are able to achieve more than 20% growth on the altogether pipe business, fitting business, then this new business which we are starting. Apart from this, we are already expanding our seamless pipe capacity, which was previously around 4,000 tons a day. This has increased to 6,000. We are seeing good demand in the seamless pipe segment. Apart from that, in power sector also domestically, we are seeing good demand. Lot of projects in last one-half year in India, apart from this power data center, this oil and gas project, then chemical sector, lot of project is, you can say, under installation or they are under the preliminary stage.
There is a very good expansion in the steel sector also. If you see all the big player in the steel sector, they are doing a good capacity expansion. In steel sector also, the usage of the stainless steel pipe day to day is increasing compared to the previously, the industry was using more MS pipes. Nowadays we are seeing key most of the operation, they prefer to use the SS pipe for the longer life of their plant. This year we are confident. Of further the breakup, we can share you in one-on-one call.
Okay, sir. Lastly, any approvals in our seamless or welded or titanium tubes and hygienic tubes that we received, let's say in the last quarter? Do we expect any further approvals, any notable approvals which you would like to highlight, which we think can come through in the next six months?
We have received.
We received order from global oil and gas companies, few from sewage treatment plant, few approval from chemical company. It's a mixed bag again from few of the chemical and engineering company. Those things are being received in the last quarter, and we are hopeful out of them, some must be converted in the coming quarters to come.
Okay. Very helpful, and all the best to the team.
Thank you. The next question is from the line of Dhruv Jain from Ambit Capital. Please go ahead.
Thanks a lot for the opportunity, sir. My first question is on the [audio distortion ]. If you could just give us the data for that.
On a profitability basis, I can give is around INR 65 per kg.
On a blended basis.
Yes.
The second question is on margin, right? We've seen a decline in margins, obviously, by one. Incrementally, while you're talking about a 20%+ volume growth, these fittings coming through with these new solutions coming through, how should we look at margins in FY 2027 and thereafter? That's my second question.
Basically, we said it will be higher from what we have achieved in the last financial year. Definitely, the intent is to reach up to 18% on a blended basis by FY 2028. We see, hopefully, the intent is to get it increased each quarter to come.
Just a clarification on the fittings side. Now, with all the spooling solutions coming through and you also adding the fittings plant, you know, you commenced operations today. How much of that fitting side will actually be utilized for the spooling solution, for that different sector? Just a clarification there.
It's all, again, too much dependent on the fitting is also an independent. It's a two set of business for us now with the inclusion of this new enterprise will be pipe and fitting business. We will sell to many number of customers only. Secondly, it will be very new sector like data center, semiconductor, etc. It will be two set of business for us from currently with the venturing into this spooling business. That how the customer will be getting entangled. Again, it's all different. It can be sometime 20%-30% of the fitting requirements from internally can be pulled up into spooling. Again, it vary from order to order.
All right. That's all then.
Thank you. The next question is from the line of Shaurya Shah from Equirus Securities Private Limited. Please go ahead.
Yeah, thank you for taking up my question. Just on the spooling side. Am I correct in hearing that this order is on the domestic business front, the spooling order?
Yes.
Okay. Can we classify in terms of capacity for this new spools business as we're setting up? Are we putting just enough capacity to fulfill this order, or will that be enough if we get certain future orders as well?
See, again, we have said turn, which will be better to look at spooling will be sold on numbers. Definitely the capacity which we are going to pour in will definitely establish up this capacity. Again, it will definitely also try to cater to more orders to come.
Okay. Just lastly, since we also have some presence in the U.S. as well, will we be exploring the U.S. region from the spooling perspective and data centers because that has also coming up in a big way in that region?
Yeah, we are definitely open for that. See, we had currently entire world presence with our pipe, and we will be moving to fitting. Data center anywhere, we'll be open. As we said, we started with this domestic and see how it pan out in quarters to come.
All right. Got it. Yeah, that is it from my side. Thank you.
Thank you. The next question is from the line of Sonal from Prescient Capital. Please go ahead.
Hi, sir. This is Sonal Minhas from Prescient Capital. Thanks for taking my question. My question is with regard to the realization gain that we see in this quarter, given that you mentioned that the volume growth was just 2%, the balance was the realization. Could you just give some subjective commentary on what this realization growth was for? That is our first question.
See, Q1 two quarter, if you see the continuing growth was 1%-2%. If I see on year-over-year quarter, the volume growth has been there of more than 12%.
Q1 two, basically, there's not much realization growth is what you're saying, basically, yeah.
Yes.
Got it. The second question is with regard to the execution status of the BHEL order. What percentage of this order have we actually executed by Q4? If you could highlight and clarify that will be helpful.
Something like 60% had been executed.
Okay, got it. Just a clarification on the order book coming from the power sector and BHEL in particular. We've seen that there have been delays at the end of BHEL on the fabrication side. Anything which you see or get a sense on whether the bottleneck there has been eased off or there is something which you can share which can help us understand the timelines of newer orders coming from there.
Almost.
Yes. As I told you already, we are already L1 in some of the order, almost near about INR 50 crore. For further new order, we are expecting it will be we are participating already in some of the tender, which will going to open next two to three months. Mostly we hope in Q2 of this financial year, the number of new tender will be open from BHEL side.
Okay. The pace at which these orders will come will be higher than what we've seen in the last one or two years directly?
Definitely, because Behror also is creating this fabrication capacity. Already all the old order which they've allotted to Behror from all the big players is always there. Behror is also trying to expedite those orders.
Got it. Thank you. I'll fall back in the queue.
Thank you. The next question is from the line of Mahek Talati from Agility Advisors. Please go ahead.
Yeah. Hello. Thank you so much for the opportunity. Sir, I wanted to understand, so there's the data center order which you have received of INR 185. Is there any possibility for higher orders going forward, more orders going forward from the same customer?
See, definitely the intent will be take from the same customer and also from new customer that how we see the business going forward. That's the reason also wherein we are putting up a limited capacity for this spooling business. The intent is very towards those new and the same customer also.
Okay. Is there a possibility of further capital expenditure in the spooling segment, if we receive higher orders?
Currently, the capacity is for this financial year. Going forward in coming six months or something, we see more visibility, more order coming definitely as we can think on that line. Currently, this is the amount of capacity what we are putting into.
Okay. Also wanted a clarity addition. We mentioned the 20%+ volume growth in FY 2027. With addition capacity which is coming on stream, is this a conservative number which we are giving, and we can expect a higher growth rate in this FY 2027 going forward as well?
See, the 20% growth is keeping the current scenario, the geopolitical scenario, many things are being considered. See, it's always an intent of the company to achieve a higher number. What had been said, we'll see how it pan out going forward.
Understood. Sir, last question was on the margin front. With the spooling coming in, can we expect a higher margin? The 18% margin which we are expecting, can we expect a further higher margin maybe? This is what we expect margin.
Again, the answer would be similar. Yes, the intent would be to. You are rightly, when you establish fair enough spooling, you can definitely claim higher margin. Again, it will be a certain percentage of your total business which spooling will be catering to. Keeping all the constraint, it will be taken into. We believe currently it's up to 18%, but definitely the intent will be to achieve as higher we can.
Okay. Sir, in terms of Middle East, are we seeing any demand uptick from there for the repairing of the oil and gas pipelines or FPSOs, tiebacks or something?
We are quite hopeful. Going forward, Middle East should be a good geography for us for supplying our pipes and all. We believe when the internal conversion can be got from there we should damage control order also coming forward. Again, sir, taking this slightly, let us see how this geopolitical issue pan out and this war issue that come, I think then definitely we should see good order coming from Middle East also.
Okay. Understood. Thank you, sir.
Thank you. The next question is from the line of Parth Bhavsar from Investec. Please go ahead.
To understand the spooling business a little more.
I'm sorry to interrupt, sir. Your voice is very low. Can you just.
Hello. Is this better?
Yeah, that's better. Thank you.
Hi, sir. Sir, I just wanted to understand the spooling business a little better. Sir, how different is this spooling product versus Ratnamani, what Ratnamani does? I believe even they ventured into this one and a half year back. How different and what is the difference between the two?
Especially what is in this spooling business is a different type of spooling business. Mostly the focus of the Ratnamani in spooling business for the nuclear power business. Right now we are going spooling business for data center. Every business, every size of the spool, every variety of spool is different. Considering the nature of the industry where this Ratnamani put. Spooling is the sum, you can say is joint of the pipe fittings and other products. For the, let's say any company, any industry who is setting their plant, they can do on the ratio not board. Actually the number of variety business are in the same facility. You can do any variety, most of the variety of the spooling business in any facility with just a minor category also you can do. Every model doesn't mean Yeah.
Sir, would it be possible that even we can maybe get into nuclear business if the opportunity is big?
Sir, subscribe for nuclear business is there. Still there is a limitation, lot of limitation there. Instead of the angle to grow the business, definitely, sir.
Okay. Sir, for nuclear or whatever Ratnamani does, right, in spooling, they do a bit of margin of around 35%. Are we looking at same sort of number?
That is possible.
It will again depend on how things pan out, as we said. If few more order to come in all.
Okay, fair enough, sir. Thank you so much for answering my question then.
Thank you. In the interest of time, that was the last question for the day. I now hand the conference over to the management for closing comments.
Thank you for all for joining us today. I hope we have addressed all your questions. We remain committed to keeping the investment community informed with regular updates on any developments in the company. For any further information or queries, please feel free to reach out to us or HDA, our investment relation advisor. Thanks everyone.
Thank you. On behalf of Venus Pipes and Tubes Limited, that concludes the conference. Thank you for joining us, and you may now disconnect your line.