Ladies and gentlemen, we welcome you all to Q2 and H1 fiscal year 2025 earnings conference call of Venus Pipes and Tubes Limited, hosted by Ambit Capital. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company and may involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Dhruv Jain from Ambit Capital. Thank you and over to you, sir.
Thank you. Hello, everyone. Welcome to Venus Pipes and Tubes Limited Q2 fiscal year 2025 earnings call. From the management side today we have with us Mr. Arun Kothari, Managing Director, Mr. Kunal Bubna, Chief Financial Officer. Thank you, over to you, sir, for your opening remarks.
Good evening and warm welcome to everyone on the Q2 and H1 fiscal year 2025 earnings call for Venus Pipes and Tubes Limited. I have been joined by Mr. Kunal Bubna, Chief Financial Officer, and SGA, our Investor Relations advisor. We have uploaded our Q2 fiscal year 2025 investor presentation on stock exchange and company website. First of all, sorry for the delay call. Delay starting this call for 15 minutes. Due to some technical reason, it was delayed. I hope you had an opportunity to go through the same. We are happy to share a strong performance for the second quarter and the first half of fiscal year 2025 in Q2. Our revenues reached INR 228.9 crores, showing solid growth of 19.6% for the first half of the year. Our revenues stand at INR 469.1 crores, marking an impressive growth of 26.4%.
This success reflects the high demand for our products across various sectors and reinforces the trust that customers have in the quality of what we offer. The above growth is backed by robust volume growth of 30% for H1 fiscal year 2025 on year-over-year basis. We also achieved all-time high order book of INR 340 crores. Our key performance monitoring the parameter remains market share gain, we are gaining market share from day one of operation and continue to gain, as reflected in our presentation. Before we discuss our operation, I am excited to share some important updates about our team. In our journey to become a global leader, we have appointed Mr. Neelanjan as our Chief Strategy Officer and Mr. Mark Light as our Business Development Officer, Energy.
Mr. Neelanjan brings over 20 years of experience, having worked with companies like Tubacex, Kvaerner, BGR Energy Systems, Terex Corporation, and Oromera Energy. He has a deep understanding of different industry, market trends, and the challenges of running complex operations. As Chief Strategy Officer, Neelanjan will guide our plan for growth using his experience in business development, operation, and market expansion. His industry knowledge and a strong focus on customer needs make him the ideal person to help Venus Pipes and Tubes grow in a sustainable way. We are also excited to have Mr. Mark Light, who joins us with over 30 years of experience in international sales and business development, especially in the oil and gas and energy sectors. He has worked with well-known companies such as TW Metals, Reimers, Unique Industrial Product Co., and J&K.
With his knowledge of global markets and business growth, Mark will play a key role in helping Venus become a leader in the stainless steel piping market and expand into new products and markets. We have been consistently investing in manpower, which has resulted in jump in our manpower force in last five years. We believe that the substantial investment which we have done in last few months will give us substantial capability to gain market share and profitable growth for long term. With this strong team and a clear vision for the future, we are well-positioned to achieve our goals of becoming a global leader. We are excited about the road ahead and confident that our investment and these new leaders will drive Venus Pipes and Tubes to even greater success in the coming years.
We have added new slides in our investor presentation elaborating on how we have increased our market share over the years. The domestic market size has expanded from 2.2 lakh metric ton per annum- 3.2 lakh metric ton per annum from fiscal year 2020- fiscal year 2024. We have increased our market share from 3.7% in fiscal year 2020- 6.2% in fiscal year 2024. Our success is largely driven by our capacity expansion and backward integration, which position Venus as one of the few players in the country with end-to-end production capabilities. We are confident of increasing our market share to low double digits in coming years given our foray into fittings and value-added pipe and tubes. Now turning to our operations. Venus has delivered impressive export performance this quarter, with export revenue growing by 2.7x despite high freight rates.
Export now makes up 1/3 of our total revenue, which is a strong milestone for us. Let's look the export outlook in our key regions. Europe. Europe is showing encouraging signs of recovery. Though the economies are still facing high inflation and reduced consumer spending. However, with the European Central Bank lowering interest rates, we expect a renewed focus on capital spending, which will open more doors for companies like ours to grow and capture a larger market share. In Europe, demand for our product is strong and our quality is on par with the European manufacturers. We are steadily expanding in this market thanks to solid relationships with dealers, active participation in the industry events, and our reputation for high-quality products. Regarding United States, with the election uncertainty behind us, we anticipated China Plus One play to pick up, which could benefit us in the long term.
Additionally, the Federal Reserve's rate cuts are expected to boost spending and restart capital investments. We see a huge opportunity for our welded products in the U.S. market. To strengthen our presence, we have appointed representatives on the ground who are actively building connections with the local dealers and distributors. Regarding Middle East, while parts of the region face ongoing conflicts, we are largely supplying to countries not affected by the unrest. The demand in the oil and gas sector is substantial, and we are proud to have secured approvals from several major oil and gas players in the Middle East, and we expect more approvals in the coming quarters. Overall, we are positive about our operation in this region, and we expect a strong flow of orders in the coming quarters.
With the Red Sea crisis improving and freight rates returning to normal levels, we are optimistic that the growth momentum in our export business will continue. On the domestic front in India, the growth story remains strong after the recent election, and we have seen a renewed focus on public spending. Some orders were delayed due to heavy rainfall across part of the country, but demand remains solid. We expect continued growth in our domestic business. We see a major opportunity in sectors such as oil and gas, engineering, chemical, and power with the healthy inflow of the orders. Coming to our segment by performance, sales from seamless pipes showed a strong growth, increasing by 21% year-on-year for both the quarters and the first half of fiscal year 2025. Welded pipes, however, saw a slight dip of 2% in Q2, though for H1 fiscal year 2025, sales grew by 13%.
In terms of volume, growth remained robust and with both seamless and welded pipes achieving over 30% growth in the first half. Revenues for the quarter were expected to impacted by fluctuations in raw material prices. Looking ahead, we remain focused on expanding our value-added product portfolio. This includes offering specialized tubes such as titanium grade tubes and fittings. We aim to cater more to critical industries where quality is paramount. We also seen a promising opportunity in the emerging sector like green hydrogen and nuclear, which align with our commitment to high-quality specialized products. Our capital investment in the expansion business is progressing, with the first phase set to launch in March 2025. We are confident that this expansion will support our growth in high-demand segments and reinforce our position in the market.
We anticipate a strong second half of the year driven by sustained export growth and our expansion into new geographies. Our focus remains on delivering top quality stainless steel pipes and tubes tailored to meet the diverse needs of various industries and customers. We are committed to upholding the highest standards, ensuring that our products meet global benchmarks for reliability and performance. This commitment to excellence positions us well for continued growth and success in the global market. With this, I hand over to Mr. Kunal Bubna, our Chief Financial Officer.
Good afternoon, everyone. A very warm welcome to our earning conference call. We take absolute pride in announcing that your company has reported strong quarterly and half-yearly revenue, EBITDA, and PAT for Q2 and H1 fiscal year 2025. Just to brief you on the revenue front. Revenue from operations for Q2 fiscal year 2025 stood at INR 228.9 crore as compared to INR 191.4 crore during Q2 fiscal year 2024, achieving a growth of 19.6% on a year-on-year basis. Revenue for H1 fiscal year 2025 stood at INR 469.1 crore, witnessing a strong growth of 26.4%.
We have witnessed a strong volume growth of 30% across welded and seamless. Revenue diversification for the quarter was 33% from welded pipe, 57% from seamless, and balance from others. Growth in seamless segment was 21% on a year-on-year basis. Welded segment registered a growth of 2% on Q2 fiscal year 2025 on a year-on-year basis in terms of revenue.
Our exports stood robust at INR 75.6 crore for the quarter compared to INR 28.5 crore during the same period last year, a growth of 165% on a year-on-year basis. Gross profit for Q2 fiscal year 2025 grew by 42.6% on a year-on-year basis. It stood at INR 77.6 crore. On the front of EBITDA, our EBITDA for the quarter stood at INR 40.9 crore as compared to INR 34.8 crore in Q2 fiscal year 2024, a growth of 17.5%. EBITDA margin for the quarter stood at 3.9%.
Our H1 fiscal year 2025 business EBITDA showed a growth of 42.5%, standing at INR 58.9 crore, with a margin at 19%. On the PAT front, PAT for Q2 fiscal year 2025 is INR 23.7 crore compared to INR 20.3 crore in Q2 fiscal year 2024, a growth of 16.7% on a year-on-year basis. Margin stood at 10.4% compared to 10.6% in Q2 fiscal year 2024. Our order book remains robust at around INR 340 crore.
In closing, we are optimistic about the journey ahead. We are fully committed to driving sustained growth. We are excited to push forward and elevate the Venus brand, setting new benchmarks in the industry. With this, I would like to open the floor for the question-and-answer round.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. We have our first question from the line of Dhananjai Bagrodia from ASK Investments. Please go ahead.
Sir, congratulations on a good set of numbers again. Wanted to ask you, now are we taking significant market share from other countries or are we taking it from other players in our industry? How are we gaining these numbers now?
Sir, see, in our business wherein we operate, there are a lot of smaller and unstructured players operating in that. Over a period, we have built those small players also form a good percentage of the total industry supply. We have been taking their percentage. Apart from that, see, our export has also been increasing over a period. It used to be significantly low, 2%, 4% over the past many years. In the last year it was 12%, it has now gone up to 23%. That is also a contribution from before.
Okay. Sure. Sir, secondly, any thought on inventory days? What would that end of the year at?
I didn't get your question. Can you repeat?
In inventory days, what would be end of year at for working capital inventory days?
Yeah, inventory days are around 120 days sort of.
Okay. Will be ending the year around similar?
Yeah. We intend to maintain that only.
Okay. Sir lastly, I thought one of our suppliers had bought a company, a skeletal company in NCLT, for 50,000 tons for INR 200 crore. Is that something we had also looked at? Because that would have been way cheaper to acquire that.
See, not specific that, but as we said, always, we as a company, there is a team who keep on working on any acquisition and any sort of area which are available, which plan to our strategies, which are at a cheaper cost, but not this one.
Okay, fine. Sure. Thank you, sir. Congratulations again.
Thank you.
Thank you. Before we move on to the next question, a reminder to all participants, you may press star and one to ask questions. You may press star and one to ask questions. The next question is from the line of Kunal Kothari from Centrum Broking. Please go ahead.
Yeah, thank you for the opportunity, and congratulations for great set of numbers in the January quarter. My first question is, what would be our current capacity utilization that we are operating on 38,400 tons and overall capacity? Can you also provide how much will be the utilization rate in seamless and as well as in welded?
Yeah, it's more than 85% on the front of seamless and around 60% on the side of welded.
Okay, sir. By year-end, at what level are we expecting to reach?
Yeah, in case of seamless, similar level like 85%, 90%, and more than that sort of numbers for seamless. For welded, it should be targeting sort of 70%.
Okay. Secondly, we were expecting the approval from companies like Aramco in the oil and gas sector. Can you status what is the current status over there?
Yes, Kunal, the approval process is already on for the number of companies. For the big companies, we had already received some of the approval from the oil and gas company of the Middle East. For some of the oil and gas companies, just like Aramco or others, approval is under process.
Okay. What timeline that you can suggest that approval can come from Aramco as well?
Hopefully, we are getting every month or every quarter, we are getting some of the approval from some of the new company. I believe that we, most of the oil and gas company or particular what segment we are operating, what sizes we are manufacturing right now, we'll be able to get in the period of six to nine months with most of the oil and gas company. Not only Middle East, number of oil and gas company globally, we are in process of the approval.
Okay, sir. Sir, also we had started selling our products largely in the oil and gas sector from last couple of quarters. Compared to the quarter one, we are starting maybe from quarter four onwards, how much growth that we have seen selling in this particular area in the overall mix? How we can see in next six months to 12 months?
See, we don't give any specific sector-wise data. Again, it's not currently double-digit for all indices. We believe going forward with many of the approvals coming in, and again, supplying to the larger player in the country also, we should be touching double-digit in coming year to come.
Okay, sir. Sir, one more question. There are some demand pockets where I believe the extrusion process is required. Are we also targeting in future to set up an extrusion process to cater that part of the demand as well?
Kunal, right now we can't put any comment on this matter. Definitely, we look for an opportunity. Whenever right time will come for Venus, definitely we wish to go. Right now we are not able to give any comments in this matter, Kunal.
Okay, no worries, sir. Thank you so much, sir. All the best.
Thank you. A reminder to all participants, you may press star and one to ask questions. The next question is from the line of Sneha Talreja from Nuvama Wealth Management. Please go ahead.
Sir, congratulations on great set of numbers. Just couple of questions from my end. Firstly, if I look at your export share, I think you were aiming at about 25% . It's actually grown much significantly, I think, beyond everyone's expectation. How do you see the run rate going forward? Can it become a 40%, 50% share for our business? Is any revised growth rate that you're looking at from the exports angle?
Definitely yes. It has been significantly at 33% and the order book is quite heavy on the side of export, but it will be always more than 25%, what we believe for the coming quarter.
Understood. Secondly, on your domestic market, of course, you've written that certain orders got pushed. Is there any quantum to it that what the order book which would have got pushed from, let's say, Q1 or from Q2 to basically Q3 that would have led to some domestic dip here?
Definitely, not specific on the quantum on a specific quantum basis. Many of the end customer had delayed taking their material, keeping the effect of rainfall in the entire country. Again, few of the push the export might have been slightly higher as compared to what we have achieved because of the elevated trade. These were the two reason which has slightly made the top line on a bit lower side.
Understood. Lastly, you have actually given your market shares this time in your presentation, which is pretty helpful. If I look at the market size from fiscal year 2023- fiscal year 2024, especially on the seamless side, it's actually not increased at all. You have definitely increased volumes there in gained market share. Any reason for market itself not growing on the seamless side on this particular year, fiscal year 2024?
Not as such very any specific reason, we believe going forward there should be 6%-8% growth in the market on an overall basis.
Both welded and seamless included.
Both on a total basis, yes.
Understood. Thanks a lot and all the very best.
Thank you. A reminder to all participants, you may press star and one to ask questions. The next question is from the line of Muskanda Stovi from B&K Securities. Please go ahead.
Hello, sir. Congratulations on this set of numbers. Sir, recently we got a notification where India has implemented anti-dumping duty on welded stainless steel pipes imported from Vietnam and Thailand. With regards to that, I have a couple of questions. In India, what is the current total stainless steel industry 3 lakh metric tons , and 70% is welded out of that. Can you please tell how much is imported, catered by imports for welded and second part since ADD will be implemented for five years, how much of volume are we targeting?
Sir, unable to get you actually. The voice is getting distorted.
Ma'am, can you please use your handset?
Yeah. Am I clear now?
Yes.
Okay. Sir, recently we've got a notification where India has implemented anti-dumping duty on welded stainless steel pipes imported from Vietnam and Thailand. With regards to that, I have questions. In India, the total stainless steel industry is 3 lakh metric tons , and 70% is welded out of that. How much of it is catered by imports currently? Second part is that since ADD will be implemented for five years, then how much of volumes are we targeting?
See, for import for welded, we believe it should be in the range of more than 15%-20%. Again, there are few of the company which are exempted who are overseas companies and who are exempted from these circulars. Those companies keep on exporting welded pipe to India.
Okay. In future, how much volumes are we targeting after this anti-dumping duty comes in?
We are not as such importing any welded pipes. We're importing coil on which no anti-dumping duty is there. We are not as such affected by this circular. Definitely it helps in a way from the way the welded pipe which we used to come in the country. Will be coming soon in 20 days. Again, few of the company are exempted. We generally supply to India, so they will keep on supplying it.
All right. Okay. We are also seeing a huge demand in Middle East for the stainless steel welded and stainless steel seamless. What would be the opportunity size there and how much percentage we are exporting?
Regarding the Middle East, that almost entirely cannot define, there is a huge investment is ongoing in the Middle East or in oil and gas sector. Mostly, only main supplier of Middle East is getting from India or China only. In India also, depends on the approved the mill, which mill is approved they procure from. Because in the Middle East sector, in oil and gas sector, very limited mills are approved from India. In Middle East there is a right now in demand in the water sector, in other sector also there is a good demand, which is open for even for the unapproved load also. It depends on the quality play important part in the Middle East.
We see good opportunity in the Middle East and we have started to penetrate our Venus Pipe in the last two to three quarters only. For the coming quarters, at least for next four to five years, we are looking very good demand from the Middle East. Whatever inquiry and orders we are in hand, we are in processing all the orders or almost number of inquiries ongoing for the Middle East. In the coming quarter, we are expecting good volume from Middle East, quantum we cannot define right now.
Oh, okay. Sir, on volumes front, can you please tell how much is the year-over-year growth for welded and seamless?
See on a blended basis, you see the growth level was around 30% year-over-year on H1 basis.
30% for both of them?
In fact, yeah, both of them it was around 30%.
Oh, all right. Thank you so much.
Thank you. A reminder to all participants, you may press star one to ask questions. The next question is from the line of Sahil Rohit Sangi from Monarch Networth Capital. Please go ahead.
Yeah, thank you for the opportunity. First of all, congratulations on delivering such results in difficult times, especially on exports. You've done a wonderful job. My first question is somewhat on the financials. The other income has risen substantially this quarter, is it purely interest income or something else?
That include a few parts were interest income towards export incentive and towards exchange fluctuation.
Okay. Roughly half would be.
Majorly, it was towards exchange fluctuation because we have export, that was the income from there.
Okay. On the other expenses also the number looks very high. Any one-off over here or what's the reason for the increase?
It's not a one-off. Now the entire operation like PHC and entire mill is backward, the entire backward integration. The entire mill is running. There is increase in raw material store and power and labor cost. Apart from that, see, as the export proportionate increased, ocean freights are high currently, and it is also increased in this quarter as compared to earlier quarters. That is also the reason for increase in other expenses.
Okay. For me now, just to understand, on the welded side, on the revenue basis, we are not seeing growth. Is this largely because the pricing has corrected or is it because volumes also? Like because you said there is a year-on-year growth in volumes.
Yeah, there had been year-on-year growth on volume. The prices had deflated on the side of welded on H1 on year-on-year basis. Again, the quantity was once more on the low side for this quarter. See, as we said, few of the order had been forwarded to the coming quarters to come. We believe there is a heavy order book which will help us to take the revenue on the side of welded also up going forward.
The pricing correction on the whole seems to be roughly 10%. Is this just because of the whole steel price correction or is there any other element too?
That is the reason. Basically, if you see on a blended basis, it is more than 5%. I mean, blended basis the correction. If you see our internal estimate, the correction is around 8%-10%, what we have forecasted in March 2024.
Okay. Thank you. That's all. Thank you.
Thank you. A reminder to all participants, you may press star and one to ask questions. The next question is from the line of Dhruv Jain from Ambit Capital. Please go ahead.
Thank you for the opportunity. If you could just spell out what's your order book currently and what is the execution cycle that you expect that it will take for you to fulfill this order book?
It's around something around INR 340 crore. We believe typically it should take roughly more than one to two days to execute the same.
Okay. We've seen a fairly strong execution from your end from an exports perspective, almost contributing more than 30% of your revenue. Despite that, typically what we've seen in the past is that as your export mix goes up, your margins also pick up. In this quarter, we've seen some softness. Just wanted some thoughts from your end on that perspective. We've seen a very strong export growth.
What has happened is, there has been good export growth. In the last quarter, there was a hefty increase on the side of ocean freight being paid on while you export the goods to various part of the world. That has risen by quite significant number. That has slightly softened the margins. I think we believe it should be maintainable in going forward. Those freight should also subside going forward, and it will help us to increase those margins.
Fair enough. Sir, one question on the market of welded and seamless. In your presentation, you've mentioned 110,000 tons for fiscal year 2023 and fiscal year 2024 for seamless, and for welded about 210,000 tons. While the last four, five years seamless has done well, we see that welded has not really picked up, even if we look at it from a four-year cycle. Just wanted your thoughts as to why is this happening, as to why is welded not growing as fast. Is there some issue with the market? We've obviously seen anti-dumping, et cetera, that's helped the industry. From an absolute market growth perspective, it's been kind of from the softer side.
Basically, as you said rightly, in case of seamless and all three of the government policies and also our export team in Europe and others has really helped us to penetrate faster than what we in fact internally has thought. On the side of welded, see the approvals for larger diameters and all take a significant time. That has taken us. See as a U.S. market now also we have started penetrating there and also along with that Middle East, many of the approvals had been received and few of the approvals are underway of receiving.
Those things happened in case of welded first and entirely new set of sizes what we were going to manufacture in case of seamless we were there with those many of the sizes. Only few inches we have welded in case of seamless. We penetrated faster out there and here because of this requisite approval and all we have taken a bit time.
I mean, if I look at welded pipes market, fiscal year 2020 it was 160,000 tons and fiscal year 2024 it is about 210,000 tons, which basically implies sort of a lower growth versus what seamless market has done. Just wanted your thoughts there as to why is this market not growing as fast.
Basically, main criteria the people are shifting the seamless are raising of it. It is used in the critical operation or it's a highly valuated product compared to the welded pipe. People might be migrating from the demand from welded pipe to seamless pipe. Previously the seamless pipe industry was not much present in India. Right now there's a player like Venus. There's other player also who is in market to supply the seamless pipe. Previously the demand of the seamless pipe, the availability of the seamless pipe was also limited. It was dependent on the import of very few players. People are not able to get the seamless pipe, that's why they were using the welded pipe.
People, if any industry requires anything or they are not getting in the seamless category, then if they're required to use the excess pipes, then they select for the welded pipe instead of seamless pipe. Sometime demand shift from seamless pipe to welded pipe or welded pipe to seamless pipe. Right now there is a good availability in the Indian market for the seamless pipe. That's why seamless pipe market is growing well. That's our thought.
Sir, on the capacity front, we've seen a couple of players add capacity. Have you seen any sort of pricing issue that you've had to face or in general with respect to industry? We've seen a couple of players add substantial capacity. Thank you so much.
Yes, Dhruv. Definitely. Slightly it's happened. Still there is a good demand in the seamless pipe. Very good demand is coming in seamless pipe segment from the power sector in India. In future, we don't foresee much pricing competition in seamless pipe segment. The demand is also growing up. Water industry is growing up in India. Still, for any new player, it requires an approved process to enter in the market. They can't simply enter into the market on the basis of the mill. They require the long process to get the approval. If any new industry starts the seamless pipe production, it requires minimum duration period of two years to three years to get the requisite approval to supply the pipes. There's a slightly price pressure. There's not much price pressure we foresee in future.
Great. Thank you so much, sir, and all the best.
Okay.
Thank you. A reminder to all participants, you may press star and one to ask questions. The next question is from the line of Mythili Balakrishnan from Alchemy Capital. Please go ahead.
Thank you for the opportunity. Just a question on the domestic demand. You mentioned that it was a takeoff was a little pushed out into the quarter. Has it come back to normal in October or do you see it there have been rains and other factors which have also happened? Just wanted to get a sense of that.
Not as such. See, our intent is more towards for the first half or the intent was to focus to our export geography just to penetrate out there so that in domestic and export both sides are there. We are seeing demand in the domestic market from chemical industry which was for the last few months we are seeing those demands. Those shifts are there. Good demand is there on the side of power. We don't believe any much major challenges in the domestic industry on the demand side currently.
Has it picked up from what you saw in the first half or is it?
Similar to that
Got it. Also in terms of the CapEx, could you just give us an update on what is happening on the fittings as well as the better material welded tube capacities?
Yes, stage is underway. We are working on that. Few of the machines order, few of the civil works had all been started. The project is underway. We believe the output target of March 31st, 2025, we would be able to meet. We believe that.
Got it. Thank you. That's all from my side.
Thank you. We have our next question from the line of Kunal Kothari from Centrum Broking. Please go ahead.
Thank you for the opportunity. We did around CapEx, around INR 50 crore in first half. What will be the CapEx in second half and also what the capacity expansion we are doing? Can you also state the current status, like how much is being done, and are we expecting to be complete on time, or we can do before the timeline that we have provided?
It should be roughly for second half in the range bound of further INR 100 crore of CapEx investment. See, both the projects are working. The civil work had been started. Few of the machines have been ordered. Few of the machines had also been received. We believe the target of 31st March, before 31st March 2025, seeing the current scenario, we believe we should be able to make. Definitely, there was a few rainfall in the last quarter, which affected a bit of civil work. Again, we believe there are six months to go, and we should be able to make that.
Out of INR 170 crore, we are doing around INR 150 crore in fiscal year 2025?
No, it would be INR 115 crore sort of number.
We did around INR 48 crore in H1.
The total CapEx for the year should be in the range of INR 150 crore. Out of that, INR 115 crore would be towards this project, balance of over INR 35 include few of the routine CapEx and few of the pilgers of small dia and the land cost, which we've also acquired in the last quarter.
Secondly, looking at the overall demand scenario, what volume or that we can expect for fiscal year 2026, fiscal year 2027 with a two-year view, also like revenue, EBITDA and margin target that we are looking forward.
We believe on quantity and other parameter. We believe there should be always a growth of more than 20%-25% volume yearly growth.
Sir, on revenue, EBITDA, and margin profile, do we see improvement because of the investment?
Yeah, there should be a growth in EBITDA and PAT and all this stuff. Again, revenue will slightly dependent on the prices which come into it. Commenting on that is slightly tough, but what we believe the 20%-25% should be a yearly growth in coming three years.
In margin as well, we are doing in range of 18%-20% currently with new capacities coming in and we ramping up in next couple of years. Can we expect margin expansion with the ramp-up as well?
Kunal ji, definitely we look forward for the margin expansion, but right now we can expect the present margin level because since we are already penetrating the market, we are increasing our market share or we are creating a new market also, or we had invested on the manpower front also, we had invested good amount. For at least three to four quarter, we can expect the same level of margin which we have right now, or we look for a better margin. It will definitely come in the coming year.
For the fiscal year 2025, if you see from the revenue front, we are leading by 8%-10% than the internal budget, which is primarily due to realization before 5% versus March 2024, also 8%-10% versus our internal budgets.
Yes. Currently, we are at around 28,000 tons-30,000 tons run rate for fiscal year 2025. As we're expanding from current 38,400 tons- 45,000 tons by fiscal year 2026 end, at that peak level, what could be the maximum potential of our revenue, EBITDA, and margin?
I've already given you the indicative. We are keeping this expansion and all, you can get a fair idea on that.
Okay, fair enough, sir. Thank you so much, sir.
Yeah.
Thank you. Ladies and gentlemen, due to time constraint, that would be the last question for today. I now hand the conference over to the management for closing comments. Over to you, sir.
I take this opportunity to thank everyone for joining the call. We will keep updating the investor community on regular basis for incremental updates on your company. I hope we have been able to address all your queries. For any further information, kindly contact SGA, the investor relations advisor for your company. Good evening, and thank you once again.
Thank you. On behalf of Ambit Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.