Ladies and gentlemen, good day and welcome to Venus Pipes and Tubes Limited Q1 FY 2026 earnings conference call hosted by DAM Capital Advisors Limited. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode and there will be an option for you to ask questions after the presentation concludes. Should you need assistance during this 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. Aasim Bharde from DAM Capital Advisors. Thank you and over to you, sir.
Thank you, Nirav. Good evening. On behalf of DAM Capital, I welcome you all to the Q1 FY 2026 earnings conference call of Venus Pipes and Tubes Limited. We are happy to host the management team which is represented by Mr. Arun Kothari, Managing Director, Mr. Dhruv Patel, Whole-time Director and Mr. Kunal Bubna, CFO. We will have the opening remarks from the management followed by a Q&A session. Thank you and over to you, Mr. Arun.
Good evening and a warm welcome to everyone on the Q1 FY 2026 earning call for Venus Pipes and Tubes Limited. I have been joined by Mr. Dhruv Patel, our Director, Mr. Kunal Bubna, our CFO, S.J. our Relationship Advisor. We have uploaded our Q1 FY 2026 investor presentation on stock exchanges and company's website and I hope you had an opportunity to go through the same. I will begin with a brief update on the company, then move to our company's performance during the quarter. The global economy is facing several headwinds with uncertainties around tariffs and conflicts like situation in many parts of the world. The era of globalization is slowing down and many companies, especially in the Western world, are focusing on becoming more self-reliant rather than depending on other nations for their supply chain and manufacturing. However, this shift has its own challenges.
While indigenous can bring benefit in certain industries, the reality is that high labor costs, rising energy prices and the lack of skilled manpower make it difficult for the West to be fully reliant. The West will continue to lead in technology, but countries like India, China and others have the advantage of skilled labor at competitive cost. India continues to hold a relatively stronger position compared to many other economies. While we do feel some effects of the global uncertainty, India's growth story remains strong. In fact, it is expected to be fastest-growing major economy in the world. Coming to the performance of the company, we delivered a steady performance this quarter, achieving our all-time high revenue of INR 276.4 crores, a growth of 15% year-on-year for the quarter ended June 2025.
Achieving this milestone despite a challenging global backdrop is a strong reflection of our enduring customer relationships, the trust in our product quality and the commitment of our entire team. Let me now share a few key updates from our operations during this quarter. Export continued to be a major growth driver, reaching INR 103.1 crore, a remarkable growth of 69% compared to the same period last year. The performance comes despite geopolitical and economic challenges and it is a testament to the sustained demand for our products in the global market. While we continue to keep a close watch on the evolving global environment, we remain confident about our prospects, thanks to our diversified presence across geographies and our strong, long-standing relationships with customers and dealers worldwide. On the domestic front, sales remained largely stable.
We recently secured a large order from one of India's leading integrated power plant equipment manufacturers. Looking ahead, we see a strong growth potential in the domestic SS pipe and tubes market, supported by the ongoing shift from the unorganized to organized sector and revival in CapEx by end-user industries. The domestic demand outlook overall remains positive. On the order book side, our pipeline remains healthy at INR 560 crore with a particularly strong inquiry coming from the power sector, an area where we expect to see sustained momentum in the months ahead. On the CapEx front, our project for ring-rolled fittings and seamless pipes and tubes are progressing as planned and we expect the new capacities to be commissioned in the second half of FY 2026 along with seamless as announced previously. We will also be installing piercing line to ensure we remain fully backward integrated.
In closing, this quarter has further strengthened our foundation. We have proved our ability to grow even in uncertain times, leveraging both our domestic and export strength. With a good order book, demand outlook, and strategic investment in place, we are entering the next phase of growth with optimism and confidence. Our focus will remain on delivering high-quality products, customer trust, and creating long-term values for all our stakeholders. I am confident that the best is yet to come, and together we will continue to raise the bar for performance in the industry. Now, I hand over the call to Mr. Kunal Bubna, our CFO.
We are pleased to share that our company is delivering a resilient performance in the first quarter of FY 2026. On revenue front, revenue from operation from Q1 FY 2026 reached an all-time high at INR 276.4 crore compared to INR 240.1 crore in Q1 FY 2025, reflecting a healthy 15% year-on-year growth. The revenue mix for the quarter stood at 55% from stainless and 38% from welded pipe. Stainless pipe registered a revenue growth of 13% as welded grew by 10%. On the EBITDA front, EBITDA for Q1 FY 2026 stood at INR 44.9 crore compared to INR 47.9 crore in Q1 FY 2025. EBITDA margin for the quarter was 16.2%. Profit after tax for Q1 FY 2026 was INR 24.8 crore compared to INR 27.5 crore in Q1 FY 2025 with a margin of 9%. In closing, we remain optimistic about the journey ahead.
With a clear strategy, ongoing investment in product expansion, and a sharp focus on operational excellence, we are confident in our ability to deliver sustainable and profitable growth. Our goal is to further strengthen the Venus brand and set new benchmarks in the stainless steel pipes industry. With this, I would like to open the floor for Q&A now.
Thank you very much. We will now begin with 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. Participants, you may press star and one to ask a question. The first question is from Parth Bhavsar from Investec India. Please go ahead.
Yeah. Hi, sir. Sir, thank you for the opportunity. Sir, I have two questions. The first one, in terms of this project that we won from the supercritical thermal power manufacturer of INR 190 crores, have we started execution? If yes, how much have we executed yet till now?
No, it has not been started, very soon we'll be starting the same.
The execution period is 15 months, I guess, right?
Yes.
Okay. Sir, any update on orders from the likes of Aramco or ADNOC or any product approval that is placed yet?
See, as a company, on each quarter there are approvals being received from a few of the other companies other than what you mentioned. ADNOC we are already approved for right now. We keep on getting those approvals. We don't categorically give the name of those approvals what are being received by the company. Again, as we said, out of the total order book of INR 560, around 35% is from export side. There is a healthy export order book also currently which is maturing. Which includes supply to Europe, U.S.A., and Middle East.
Sir, just pardon my ignorance that the order book was 560 crores, right?
INR 560 crores, yeah.
Okay, perfect. Those are my questions, sir. Thank you.
Thank you. Next question is from line of Sneha from Nuvama Wealth. Well, please go ahead.
Hi, sir. Good evening, and thank you all for the opportunity. Just a couple of questions from my end. Firstly, to start with, what is the share of exports to the U.S. market? Any impact from the tariffs that we are seeing? Secondly, if you could speak about, you have mentioned strong order book starting, so would you be revising your guidance upwards or some flavor there? When can we see stronger growth coming in from Q2? If you could just give some color on that, would be helpful.
See, from the tariff perspective, there had been changes in the Section 232 tariff which has been on our product, which had made from 25%-50% in the month of June only. Apart from that, we have not seen much effect from that yet. As a company, we are too cautious. We are also keeping a close watch on what will be going to happen. Out of the current order book of the export, we have around 15%-20% from U.S.A. side of the total export portion of order what we are currently carrying. Currently, we are also reading those situations and keeping a very close eye on standout and going forward. Keeping the healthy order book, we definitely believe we have given a guidance of around 20% overall growth at the top line.
We believe definitely we'll be able to touch at least 25% growth in this financial year.
You are revising your guidance up from 20%-25% for the volume.
Around it
Anything on the margin front?
Yeah.
You've given 16%-18% range at this point of time we are closing in.
We maintain that.
Or just.
We maintain the same
Understood. Thank you. Lastly, on the Saudi Arabia market, there was news in between that they put dumping duty on China and other markets. Any significant traction that you're seeing or would you like to highlight some new customer additions which are taking place from that particular market point of view?
Yes. Definitely. It will give a good demand in the welded segment. We had already started to receive some of the orders from Saudi market. We are pursuing with number of clients and discussion ongoing with number of clients. We are expecting good demand from the Saudi market in the coming months.
That's really helpful. Sir, lastly, on the CapEx front, we are commissioning all the value-added portions fittings. Could you give some timelines? Are they on track? When is the capacity expansions expected in these ones?
Yes. Basically, the backward integration expansion of seamless and fittings, these are the three projects which are currently underway. They are all running on track, and we believe to be completed by second half of this year.
Understood. Thanks a lot. Wishing you all the very best.
Thank you. Next question is from Dhruv Jain from Ambit Capital. Please go ahead.
Thanks for the opportunity, sir. Sir, two questions. First, on the new capacity addition that you've done and these are incremental capacities that are going to come through in this year. How should we think about the capacity utilization for FY 2026 and FY 2027 broadly? I'm just trying to link it to your upgraded guidance. Is the mix going to be with the ramp-up in the value-added is going to be a lot more sharp like incremental demand that's coming through?
It will be mixed. If you take the capacity utilization, the way the capacity will be panning out, keeping those under consideration, the blended utilization should be near to 80%, what we believe. For the coming year, FY 2027, it should be probably higher than that. All the capacity would come by end of FY 2026. Again, the blended utilization, if you see the capacity of seamless and welded, it will pan out, and some way or other, 60/40 ratio would be there, probably sort of that.
This 80% capacity utilization blended you're talking about on 42,000 or-
Blended on 42,000 keeping the condenser tube plant which have come at a later date.
The new plant volume ramp-up, how should we think about it? The second half fittings and the value-added pipes that you mentioned.
It should not be much for this year. Again, we are trying that in the last quarter we are able to start that, but not much would be able to accrue in this year.
Get it. Sir, in terms of the cost ramp-up, we've obviously seen a sharp jump up in employee cost and other expenses. Now, it could be presumably going to expose any CapEx ramp-up. Incrementally on these numbers, what kind of growth should we see or these numbers should now start to stabilize on a QOQ basis?
Generally, yes, it should stabilize. Again, when the contribution of welded increased, generally, iron consumption cost slightly increased and other costs decreased to a certain extent. We believe it should definitely start stabilizing in the going forward quarters.
Sir, no, I'm just talking about it from an absolute number perspective basically. Employee.
Absolute numbers, again, it's very tough to give an exact number, but it should be near to this number. Again, see, what happens is sometimes we have different type of behavior. If your export increase further, then this cost also changes. There are too many permutations and combinations also arise when these factors are taken into consideration.
Get the point. Sir, on the domestic market, the revenue has dropped. Just want to understand if the input have also considerably dropped, right? A, how should we think about the improvement in the domestic market and the volume growth improvement in the domestic market? I know you have said a new order win that should come through. In general, apart from that demand environment, if you could just talk a little bit about that.
See, primarily the demand, as you said, it has been from power sector. Other sector, not much is there. Again, oil and gas, chemical engineering are the other sector where we are looking into. We believe going forward, there should be also demand from this sector. Not immediate demands are there from this sector in quantum. Again, power is a very huge amount of demand which is coming into the number of tenders being floated for power and all. Which is a new demand seems to be, which was not there in the system in too much quantity. I think that should also help.
Get the point. Sir, I know it's slightly premature, in FY 2027, once all your capacity addition comes through, what kind of growth should we assume from a top-line perspective or from a bottom-line perspective?
FY 2026 to 2027, again, all the capacity would be there. We believe at least on the top-line level, 20% growth should be there.
Get the point. Thank you very much. I'm okay.
Thank you. Next question is from one of Shivkumar Prajapati from Ambit Investments. Please go ahead.
Hi, sir. Good evening. Thanks for taking my question.
My first question is on export trend. If we exclude the U.S. tariff impact, then where do we stand on the pricing and quality front in comparison to some South Korean or Chinese suppliers?
The Section 232 tariff that has been increased in the month of June, it is on all the entire country exporting to U.S. It is not standalone on India. Generally, it doesn't have much effect on India or other countries.
Okay. Sir, since we are growing strongly in the export market, say Europe, Middle East. What % of export revenue is recurring versus one-off order?
Generally, recurring is there from U.S., recurring is there from Europe. A few recurrings are also there from Middle East. We are also adding up customer in all these geographies. New customers are being added. New centers are distributed and centers are being added. That will keep on continuing and also we are working on approvals. Approvals are being received and few more approvals are waiting, for which we are working towards that.
Okay, sir. My last question is a bookkeeping question, maybe. Can you please give the volume growth for seamless and welded for this quarter? Did we book any inventory loss or gain?
No, nothing as such. Quantities we are not giving.
Okay. Thank you.
Thank you. Next question is from [Manu Pritesh], from Lucky Investment Managers. Please go ahead.
Yes, sir. What explains the decline in domestic business still? Last year also you had a challenge. First quarter you also have a challenge. The profitability, or let's say the lower profitability which got set in from quarter two of last year because of lower realization. That still continues in the industry and for you, or there is any reversal in the incremental profitability on the orders that you are taking in seamless and welded.
From the domestic demand perspective, there has been a subdued domestic demand. Our strategies were also more there to move more towards export to capture many of the country of the world. That we did last year and also in the last quarter. Again, as we said, we are seeing good amount of demand in the power sector. We got an order from that, and going forward also we will be bidding in few of the other contracts related to power, and we believe even those orders few of them could also be won by us. On the margin perspective, definitely yes, last year it was very high. It has been deflecting because there are few reasons behind that. First, there has been increase in capacity.
Further, in case of welded, we were not supplying in export market like U.S. and other country where we penetrated very newly in the last year. Those were the reasons that has taken down margin, and also subdued domestic demand was also one of the reason for hitting margin. Going forward, we are trying to maintain the margin between 16-18. There will be few more reason than that the more value-added products are coming into play. Those should help us to improve the margin in the coming forward quarters to come.
Which means the industry profitability is not reversed still on the incremental orders. Is that correct?
Yes.
That drop still persists in the industry and for your orders, correct?
Yeah.
Yeah. [Pritesh] we as a Venus Pipe, we have the different advantage. We have the combination of the various SS pipes in all the category of SS pipes. With all this combination or we have newly developed the condenser tube pipe facility also, which is the high-end value-added point in the welded pipe. Same way we are planning to go on the fitting plant also, which will serve along with the pipe. We will be able to supply the fitting also to our various clients. That will also operation in this last quarter of financial year. Now all the products which we have previously expanded, that was all the basic products we are supplying to every industry. Now in the last one year, what we are doing, in more value-added product we are going forward or more value-added service we are going.
That will give the advantage in the coming years or coming quarters after the complete capacity will be established. In the new phase, new capacity expansion, we have already commenced the condenser tube plant. One phase is already completed. Another phase will complete in this quarter, Q2 of this year, another in Q3 and Q4. By the Q4, all the whole capacity will be done. That will give the value-added product and value-added service advantage in the next FY 2027.
When do you start executing the condenser tube orders that you have got from BHEL?
Still we have not grabbed the order from BHEL for condenser tube. We are already participating in this tender, we are expecting this tender will open in the coming next one or two weeks.
The INR 190 crore order.
Yeah, that was for boiler tube. That was for seamless pipe, not condenser tube plant. That was for boiler tube, for seamless out. Already within this quarter, we'll execute almost 50% of the total quantity of the order this quarter. Next quarter, we are expecting almost 25%-30%. By the March, 30%. Remaining will be the first quarter of the FY 2027.
Which means that the domestic growth decline which started last year will start reversing from q uarter two.
Yeah.
We will start seeing domestic growth coming.
Yeah.
Right? The margin improvement will be a function of the product mix change, not to do with.
Yes, definitely, sir.
Right? It is a product mix change. Okay.
Yes.
Now, on the volume growth side, what Bubna mentioned about, Kunal mentioned about 20, 25% volume growth.
Yeah.
Can you tell us what was the volume growth in quarter one, and how much volumes in combined you did in quarter one?
We are not giving such quantity figure for quarter this year.
Quarter volume growth you can share. If 15% was the revenue growth, was the volume growth similar number?
No, it was lesser than that.
Okay. Okay. Thank you, and all the best to you, sir. Thank you.
Thank you.
Thank you. [audio distortion] star and one to ask a question. Next question is from Surya Nayak from Sunidhi Securities & Finance. Please go ahead.
Thank you for giving me opportunities. Just to understand the fittings volume volume, by way, supposing we can consider, what would it constitute for FY 2027 and 2028? I expect that the value-wise, it will be more than the seamless. If you can throw some light on that.
Again, you're right. The quantity is very tough for fitting because those are coded numbers and all. Basically, in FY 2027, we believe the CapEx will be in the range of 60-70 crores fitting and the top line which will come out of it can be around 3x or more than 3x. The certain percentage of that will come in FY 2027 and beyond that in FY 2028.
In terms of realization, if you can give some color to that.
It's very tough to give the number of products and the sold-out number, as I said, there are no such specific realizations which can act currently as in connected with you.
Sir, regarding the raw material scenario, are we seeing the raw material scenario easing off or maybe it will be benign for us for the current position or it is hardening?
Currently, we are unable to gauge it.
What is the raw material scenario or pricing scenario?
More or less, not too much. It's more or less stable.
Okay. Sir, in terms of industry applications, our applications majorly is from the thermal power stations or any other sectors we are actually getting major. What is the second and third contribution in terms of sectoral exposure?
No, it's a diversified industry base. It's engineering, power, chemical, food processing, pharmaceutical. It's a mixed bag of industry which come into play. It is not a single industry we supply to.
In the current order book, it is majorly power, thermal power stations?
One of the bigger order, as we say, INR 92 crore-INR 200 crore is from power industry. You are right. Apart from that, it also consists of export book. Apart from that, others are from chemical, engineering, oil and gas, power, and other sectors.
Okay. Do we see any risk from the tariffs? Are we going to export to the U.S. market or away from the U.S. market to other areas?
No. As a company, our intent is to diversify across many geographies. We are supplying in Europe, U.S., Middle East, Southeast Asia, and African countries. Again, sir, in case of U.S., again, the tariff is Of course, nobody knows what tariffs will come tomorrow, today or someday after today. Those risks we see definitely from the U.S. side. I think as it is there for every company, it should not be much effective. We are keeping a close eye on the scenario which is happening in U.S.
We will be given any demand coming from the U.S., we will be executing orders despite lower realization due to the discounts, those things related to the tariffs that can be demanded from the clients.
No, definitely. Nobody would like to supply on a lower price. I can say everything has to be seen how the demand scenario is evolving with the entire country and the entire world. Those decisions have to be taken on economical basis only.
Okay. Thank you, sir.
Thank you. Next question is from Tanmay Jhaveri from Finterest Capital. Please go ahead.
Thank you for the opportunity. Sir, I need a clarification. In the presentation for the revenue mix, we have said 55% is from seamless, 35% is from welding, 7% is from others. I guess there's 3% which is unaccounted. Could you help me with this?
Hello.
Hello.
Can you repeat?
For the revenue mix, in the presentation we have shared 55% from seamless, 35% from welding.
No, it will be 55%, 38%, and 7%.
55%.
The welding will be 38.
Yeah. Okay, thank you. The second question is industry specific. Across the seamless steel pipes, are we seeing any structural demand shift or how do you expect industry pricing and margins in near terms?
See, the shift is definitely there towards stainless steel because of the quality which it carries. If you see many of the industry in the country, all are moving towards higher grades of pipe, higher quality of pipe, which can resist corrosion, et cetera. Now, that is a very good change happening in the entire geography. That is the thing I think it will help as a company who are dealing in SS going forward here. Because of this quality and the corrosion nature which one stainless steel can withstand, it will help us in going forward also.
Okay. My last question is regarding the CapEx. When we say that we have new projects coming up, could you just give the input, what will be the capacity of the new projects?
See, again, it's slightly tough from the perspective because many of the tenders are floated. Those sometimes take time to finalize and all. Giving a specific number is very tough for us from the side of company. Again, from the power generation side, we are seeing a good amount of demand in going forward quarter also.
Okay. Thank you so much, sir. All the best.
Thank you. Next question is from line of Radha from BNK Securities. Please go ahead.
Hello, sir. Thank you for the opportunity. Sir, like you mentioned, the domestic demand has been subdued and in exports also, there is certain uncertainty. From oil and gas perspective also, the CapEx is not so strong and, anyway oil and gas remains one of the key user industries for stainless steel. While you are booking new orders or while bidding, are you witnessing any pressure in terms of realizations in both seamless and welded pipes?
See, not much on the side of seamless. We are able to get the order as per the rates we are generally trying to get. On the side of welded, there is a bit pressure. Again, see, we're trying to add value-added and trying to expand few geography and sector, which would take care of that in going forward quarters to come.
Okay. Sir, in terms of power bidding, like you mentioned that you are expecting some orders to come from the power segment in the coming months. What is the market share for Venus in terms of the bidding or the order win in terms of those biddings?
They can't be very specific to that. Again, there are very few companies which bid for many of these orders. Generally, the probability of you getting an order becomes good. Again, see, we already have a good amount of power order book. Definitely, actually not in the similar quantum each time we bid. Again, they generally have a criteria where they give orders to one, two, and three basically. The highest one, second, and third also some portion of it. Generally, they try to give the kitty to many of them. That's how everybody gets his part share on those tenders.
Yes, sir. I just wanted to understand, suppose if you are bidding for, let's say, 100 worth of projects, then in terms of those power bidding, is it fair to assume that at least 20% of the bids would be won by Venus?
No, again, I can't give you any such specific, it depends. It can be, it can't be. It can be more than that also. It's already got on many of the pricing and other factors.
Okay, sir. Thank you. Sir, the SS pipe market demand of 3 lakh tonnes for India. You mentioned that you are expecting the shift from unorganized to organized. What % of the market is unorganized as of now, and how do you see the mix going forward?
See, we believe, again, because the absolute data of stainless steel is not easy to get from Indian market, because those are generally hypothetical examples. We, again, believe at least more than 20% should be unorganized market, at least. We believe out of that, definitely shifts are being started, and it will keep on shifting towards the organized market.
Thank you, sir. Welcome.
Thank you. Next question is from line of Richa Chowdhary from Electrum PMS. Please go ahead.
Hi, sir. Thank you for the opportunity. I just want one clarification. Out of the INR 175 crore CapEx, how much did you mention for the fittings part, and exactly when do we see it commissioning? Is it second half or is it quarter four of this year?
Quarter four of this year.
How much would be the CapEx amount out of INR 175 crore?
Sort of more than INR 60 crore.
More than 60. Okay. Thank you.
Thank you. Next question is from line of [Margo] from Amber Asset Management. Please go ahead.
Yeah. Good afternoon. Thank you for the opportunity. Sir, my first question is that this new plant, the new CapEx that we are supposed to commission in the fourth quarter, was this primarily planned for exports or for the domestic market?
No, it would be a mix of both domestic and export.
Okay. Assuming that U.S. also would have been part of the exports, is it fair to say that we can still continue to utilize it despite this tariff which has been announced?
The current setting, current tariff which has been increased on our product has not much affected. Again, there is a lot of confusion about what will happen in the coming forward days or quarters to come. That is creating a lot of anxiety among all the distributors and traders. That is definitely a factor which needs to be considered. Again, we are exporting to many other parts of the world. We are trying to increase those shares, that was the only intent, had been always to export to many parts so that if few of the countries are affected, we as a company are not. We are working on that, and I think we'll be able to. We will try to see we are least affected by all these factors coming into play.
Secondly, sir, you mentioned about this new tender for condenser tubes, which is likely to be opened up soon. Is it possible to share what could be the quantum of this tender?
Specific out would not be, because they're scattered in many of the parts. Giving a specific value will not be correct currently.
Okay. Lastly, sir, with this new facility getting commissioned, is it right to say that our scope in the domestic market, especially for the power sector, will sort of increase, that would increase our probability of winning more orders from the power sector?
Definitely. See, when you win a big order like that, as we said, we will be supplying the same. Confidence are built up in the system.
Sir, sorry to interrupt you. Mute your line from your side when you are not talking. Lot of heavy breathing sound coming from your line.
Okay.
Yeah. When you supply to this, definitely lot of confidence are built in the system. There are many other power manufacturers in the country. I think definitely it should help us to win more order on that side.
Lastly, sir, what's the payment schedule for this BHEL order? I hope it's not that working capital heavy.
No, it's not working capital heavy.
Okay, thank you very much all the very best.
Thank you.
Thank you. Next question is from line of Devarsh Shah from Sunidhi Securities & Finance. Go ahead.
Hello, sir. Thank you for the opportunity. My first question was with respect to the revenue growth. Is the growth mainly because of the volume growth or is it because of the price growth?
No, it's a volume growth only.
Okay, volume growth.
For the annual what we are considering, the targets and all is based on the volume only.
Okay. Just wanted to ask, what would be the price growth? Will it revise from Q2 onwards?
Again, see, this keep on changing and again, the mix of many other things also play. Currently what we are seeing is more to an extent stable, currently.
Okay. Second question was, I wanted to get some clarification upon this seamless plant. The new plant which is coming, will it be commissioned in Q4 of this year or will it be commissioned in next year?
Q4 of FY 2026.
Okay.
Will come.
Okay. Okay, sir. Thank you for the opportunity.
Thank you. Next question is from line of Parth Bhavsar from Investec India. Please go ahead.
Yeah, hi sir. I just have one question. Sir, I wanted to understand that gradually, as we move towards more value-added products, which means that you should be handling better grades of SS. Are there any limitations on the piercing side of things and eventually you would have to move towards hot extrusion? Initially, just wanted to understand the capability of piercing versus hot extrusion in terms of handling higher grades as we move more towards value-added products.
Arun, are you listening?
Yeah, partly. It's a very debated matter about the extrusion and the piercing. Right now, the lot of technology development has been happening in the piercing. For now we are able to do lot of grades as required by the clients. Definitely some of the grades right now we are not able to do extrusion facility. The extrusion facility requires a very high CapEx or very high payment beforehand. Once we have the capacity to establish for the high grade of product, which we'll be able to do the better utilization of the extrusion. Definitely they will plan. We are not denying we will not plan. We may plan. It depends on the circumstances and the future capability of the Venus.
If Venus will be able to develop the product which require the higher grade, or we will not able to serve with our existing piercing facility, we will plan definitely.
Fair enough, sir. That answers my question. Thank you.
Thank you. Next question is from the line of Radha from BNK Securities. Please go ahead.
Hi, sir. Thanks again. With regards to the power, as per the current product experience that you have, what is the pipe demand in terms of metric ton that you can supply per megawatt of power plant? Is there a headroom to increase the product, increase the content of pipe per megawatt of power plant?
See, again, there are a number of variables for that. Generally, what we see is primarily the thumb rule of 1,800 metric ton boiler tubing for 800 MW projects is generally what we heard. Again, it varies from project to project. Again, number of tons and number of other technical factors can also play.
Okay. Sir.
Apart from that boiler tubing requirement, apart from that, the demand for condenser and other side of the power plant also.
Yes, sir. Cumulatively. Yes, sir. Sir, I wanted to understand, you mentioned only 1,800 metric ton of boiler tubes. Including boiler tubes, condenser tubes, and all other product portfolio that you have in your current SKUs, what would be this 1,800 number look like?
No, again, this is not specific one, only what I'm trying to say is for each megawatt, the requirement what I have said, again, depending on my mix on the order and many other variable.
Yes, sir. That sentence was not complete. I just wanted to understand the contents of pipe per megawatt of power plant that you can supply with the current product portfolio, and with new product introduction, how much can you increase it with the existing capacity?
You see, again, it's a mix. Entire condenser tube can go in power plant. My tubing capacity maximum, if I want to give, I can give to power plant. Again, it all depends on what type. I won't be taking an entire order from power plant. I can't give any specific capacity or numbers that I intend to give to power plant. It all depends on the pricing and many other factors.
Sir, in fittings, the EBITDA per metric ton will be same as seamless, or can it be even higher?
See, in case of fitting, definitely in the year to start, you would be requiring the requisite qualifications from the customer end. We generally have seen when you grow this business, this can be a slightly higher margin business as compared to the other business what we are currently doing. Those rooms are there because there are less number of fitting manufacturer in the country. Again, when you supply a product in the entire mix along with pipe and other, again, you are supplying fittings together, then you get a better opportunity to get a higher edge on the side of fitting. Definitely it should be highest compared to the other products we are currently working, but after the approvals and all.
Bookkeeping question, sir. How much of the INR 175 crore CapEx has been completed till now? How much will you be spending in FY 2026?
In this entire year, we will be spending around INR 120 crores.
Thank you, sir. All the best.
Thank you.
Thank you very much. Next question is from line of Aasim Bharde , from DAM Capital Advisors. Please go ahead.
Just one question on the U.S. market. Now that everyone outside has a 50% duty to bring products into the U.S., does that make any local producer in the U.S. competitive? Just want to understand, how would the landscape change for domestic players? Would approvals still remain the mainstay? Players like you or even your peers who have been in the U.S. for long, their markets technically won't be affected. Any color on the U.S. market post tariffs?
Definitely yes. Those increased tariffs make the domestic one slightly more competitive. Again, there are many sizes which goes from India to U.S. are not being manufactured, or those entire availability is not there in U.S. Again, that's why those supplies we will keep on going towards U.S. in coming forward quarter also. Again, there are further more duties or more things happening that will create a choice, and that needs to be seen how it pan out.
Would it be viable for us to plan a future capacity in the U.S. just to make us competitive vis-a-vis imports in the U.S. market?
See, putting a facility in U.S. or any other part of the world, as a company, see, we not only strategic U.S., the company keep on internally working, but something comes up for any place in the entire world. That may be updating.
Okay. Sure. Thanks. That's it from my side.
Thank you very much. I now hand the conference over to the management for closing comments.
Yeah. Thanks everyone for attending this conference call. We hope that we are able to give all the person answer of all the participants. If any further questions, you may contact to our SGA, our investor relations director for any further query. Thank you once again.
Thank you very much. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.