HLE Glascoat Limited (HLEGLAS) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to HLE Glass Court Limited Q4 and FY26 earnings conference call. As a reminder, all participants will be in the lesson-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on a touch-row phone. Please note that this conference is being recorded. I now have the conference over Thomas Vidivasa from MUFG in time. Thank you and over to you, ma'am.

Thank you, Yusuf. Good evening, everyone. Welcome to the Q4 and FY26 Earnings Confidence Call of HLE Glassport Ltd. Today on this call, we are Mr. Himanshu Patel, Managing Director, Mr. Harsh Patel, Executive Director, Mr. Nareem Kandpal, Chief Financial Officer, and Mr. Nilesh Ganjwala, Senior Advisor. This conference call may contain some forward-looking statements about the company which are based on beliefs, opinions, and expectations as of today. Actual results may differ materially. These statements are not a guarantee of future performance and involve risk and uncertainties that are difficult to predict. A daily safe harbor statement is given on the company's investor presentation, which has been uploaded on the stock exchange as well as company's website. With this, I hand over the call to Mr. Himanshu Patel, sir, for the opening remarks.

Over to you, sir.

Good evening, ladies and gentlemen. FY26 has been a landmark year for HAD Glass Coat. This year is defined by strategic expansion, operational resilience, technology leadership, and the successful integration of transformative acquisitions that have further strengthened our position as a diversified global engineering solutions company. At the same time, We continue to benefit from broader industry tailwinds, global supply chain diversification, increasing investments in pharmaceuticals and specialty chemicals, and the growing preference for reliable engineering partners continue to create significant long-term opportunities for the company. During the year, we delivered consolidated revenue from operations of Rs. 1,353 crore, reflecting a strong year-on-year growth of 31.7%. Big charge stood at Rs. 148.5 crore, while fat came in at Rs. 56.6 crore, despite transition-related costs and losses associated with newly acquired business. These numbers reflect the strength of our core operations, disciplined execution capabilities, and sustained demand across our product portfolio. Our consolidated order book stood at approximately Rs. 681.6 crore as of March 31, 2026, providing healthy visibility for... FY27, and reinforcing confidence in our future growth trajectory. A key strategic highlight during FY26 was the acquisition and subsequent integration of Omeras GmbH and Omeras Store through our wholly owned subsidiary HLE Surface Technologies GmbH in Germany. Also, the current order book at Omeraj is around Rs.78 crore, which provides an encouraging visibility for FY27 and creates a stable base for profitable plant operations in the coming month. Our experience with international acquisitions over the years has been extremely encouraging and continues to validate our long-term strategic approach. The successful integration and growth of Thorotech is a strong example of this. Since the acquisition, we have been able to strengthen the business meaningfully, delivering healthy double-digit growth along with strong double-digit margins. This reflects both the strength of the underlying business model and our ability to create value through operational integration, technology focus, and customer engagement. A key aspect of our acquisition philosophy is selectivity and strategic fit. We remain highly disciplined in identifying businesses with differentiated technologies, strong market positioning, niche capabilities, and high entry barriers. As we know, Thalatec continues to remain a highly specialized and differentiated platform with strong technological strengths and a well-established market reputation. Similarly? We believe Omeraz represents another unique and strategically valuable business operating in a specialized niche and established customer relationships. We remain confident about the long-term potential of the business and the meaningful contribution it will create from FY27 onwards. Another important milestone during the year was the successful completion of the amalgamation of KELAM Engineering, KELAM Enterprise Private Limited with HLE Class Code, following the approval received from the honorable NCLT, Ahmedabad branch. This development further strengthens our capabilities in the heat transfer equipment segment and enable better alignment and integration across the group structure, positioning us for more efficient and scalable growth going forward. Moving to filtration and drying, this business continues to deliver strong performance during F526. And remain one of the key pillars and growth delivers for the company. The business benefited from healthy customer demand, differentiated technology offerings, and strong execution capabilities. We continue to maintain the leadership position in this segment and remain optimistic about the long-term opportunity landscape, supported by increasing... Process automation and rising demand for advanced process solutions. With regard to the glass line equipment business, we witnessed encouraging recovery momentum during the later part of the year. The India GLE business saw improvement in execution levels, order inflows, and capacity utilization, supported by healthy demand from pharmaceutical and specialty chemical customers. We also continue to receive encouraging customer response for our Thalatec range of advanced glass-line products, particularly in application requiring higher performance standards and process reliability. The Thalatec business continues to strengthen its positioning in international markets, especially across the U.S. and Europe. While large pharmaceutical CAPEX announcements globally are gradually translating into project execution, we believe we are well positioned to benefit from these opportunities over the medium term. Within the Meraz business, we have adopted a calibrated and disciplined approach focused on execution, quality, selective order acceptance, and long-term sustainability rather than pursuing aggressive near-term scale. During the integration process, we also rationalized certain non-viable business segments in line with our diligence assessment. We believe these measures will help establish a stronger and more sustainable platform for future growth and profitability. The heat transfer equipment business also delivered a stable performance during the year. Successful execution of oil and gas related orders has strengthened our track record in this segment and expanded our opportunity pipeline across both domestic and international markets. From an industry perspective, Demand conditions remained relatively healthy across pharmaceutical and API-related segments during the year, while specialty chemicals witnessed gradual improvement. Agrochemical demand continued to remain relatively subdued, although inquiry activity has improved selectively during recent quarters. Overall customer engagement levels and project discussions across most business verticals remain encouraging. We remain confident that the strategic initiatives undertaken over the past few years have created a strong foundation for the next phase of growth for HLE Glass Court. With a healthy order pipeline, diversified end-user exposure, Strengthened international operations and improving international visibility and benefits. We believe the company is well-positioned to deliver sustainable growth and enhanced stockholder value over the medium to long term. From a balanced sheet perspective, we continue to maintain a disciplined financial approach during the year with a strong focus on working capital optimization. Our long-term approach toward balance sheet strengthening, efficient cash flow management, and sustainable growth remains unchanged. Further, the Board has recommended a dividend of 55% for FY26, reflecting our confidence in the long-term fundamentals and cash flow generation capabilities of the business. As we enter FY27, our focus remains firmly centered on improving profitability, enhancing operational efficiency, driving better asset utilization, and strengthening cash generation across businesses. We remain committed to disciplined execution, prudent capital allocation, and building a scalable technology-led global process equipment. Platform capable of delivering sustainable long-term value creation. I will now hand over the call to our CFO, Mr. Naveen Kandpal, who will take you through the financial performance for Q4 and FY26. Thank you, and over to you, Mr. Naveen. Thank you, sir.

Good afternoon to all the participants. I am pleased to share our financial goal for the quarter and FY26. During the quarter 4, the company reported consolidated revenue from operations of approximately Rs. 391.7 crores with a growth of 17.4% compared to Q4 FY25 with EBITDA of Rs. 43.9 crores and EBITDA margin of 11.2%. The company earned profit after tax of around Rs. 20.1 crores with a past margin of 5.1%. For FY26, our revenue grew by approximately 31.7%, rising from Rs. 1,027.5 crores to Rs. 1,353 crores. Our EBITDA for FY26 stood at Rs. 148.5 crores against Rs. 140.9 crores, thus registering a growth of 5.4% year-on-year and EBITDA margin stood at 11%. In Q4 FY26, our filtration, drying, and other equipment segment grew by 11.9% compared to Q4 FY25. We reported a revenue of Rs.122 crores in comparison to Rs.109 crores in the corresponding quarter. Likewise, for FY26, our revenue increased by 50.9% in this segment. Meanwhile, our glass line equipment business generated about Rs.219.5 crores of revenue in Q4 FY26. Compared to around Rs.169.9 crores last year, same quarter, reflecting a growth of 29.2%. Likewise, for F526, our revenue increased by 15.2% in this segment. The heat transfer equipment segment showed a revenue growth by 10.9% in this quarter, but for F526, our revenue increased by 64.6% in this segment. During the financial year, margins were impacted because of the EBITDA loss of Rs. 15.3 crore and PAT loss of Rs. 15.6 crore at the recently acquired business of Omeraz in Germany, as well as the exceptional items related to the statutory impact of the new labour costs amounting to Rs. 2.1 crores and business acquisition cost of Rs. 4.6 crores. We continue to prioritize efficient working capital management, disciplined capital allocation, and internal accrual funding to further strengthen our balance sheet. Also, the board has recommended a dividend of 55% for FY26, reflecting our confidence in the long-term fundamentals and cash flow generation capabilities of the business. Thank you. We now look forward to taking your questions.

Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw 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. First question is from the line of Vivek Rakholia from FICOM Family Office. Please go ahead.

Very good evening. Thanks a lot for the opportunity. Am I audible? Yes, please go ahead. Thanks again. The first question was, in the Q2 call, the management had expected an EBITDA margin of 16% for the full year of FI26. The actual stood at 11%. Other than the labor law changes and Omeras acquisitions, what were the three key reasons for not achieving this guidance, and how would you expect the revenue and the margins going ahead if you could quantify wherever possible?

So, I think in the Q2 call, I think the discussion was more related to the overall margins for the second half of the year and also for the next financial year because the first six months had already passed by. If you adjust for the Omeras revenues and the losses incurred there, which was, of course, also expected from a loss perspective. The adjusted EBITDA margin for the business, the ongoing business is close to over 30.5%. So that is considerably higher than the 11% that is currently reflected after adjusting for this thing. So I think from a margin perspective, we are on an upward trend, and we are expecting this trend to continue in the coming financial year.

Could you expect to achieve 16% for your EBITDA margins in the next two years?

Yes, that would be correct. Again, 16% EBITDA margins I would expect from the entire business with the exception of Omeras because Omeras is right now in the turnaround mode. So while we expect Omeras to be profitable, Omeras may not by itself deliver 16% at a... You know, at a standalone basis. So on an average, it could drag the average down a little bit, but excluding over us, we will be at 16%. Yes, we will be.

Great. Thank you. The second question is, again, in the previous call, the glass and equipment's utilization was expected to move from 60-65% to 80% in the exit quota. What has been the update on the utilizations? And also, in the presentation, it was mentioned that the yearly margins, you know, have fallen, EBIT margins have fallen from 18% in FI21 or so to 10%. And considering, you know, the exceptional year due to Amerasa's acquisition this year, but the broader trend is clear. What steps are we taking to reverse this decline? And is there any indication that these steps are working?

So again, the same thing, if we adjust for the Omeras numbers, as you rightly said, our adjusted margins would be in the range of about 10% for the year. And for the last quarter, it would probably be closer to about 11.5% to 12%. So that's really where we are. As is obvious, things are looking better. At the glass line equipment business, specifically from an India perspective, we are now closer to over 75% capacity utilization, and even the order booking and the order pipeline looks far more encouraging than it was earlier. Yeah. Interesting to note here that the Thalitec range of products that we have introduced in India and have been, you know, talking about that for the last couple of years is seeing very good traction. If you remember, we had presented this as a medium-term opportunity, and we had always estimated that this will take about three to four years' time for a substantial, what should I say, mindset change in the hands of the users. We are seeing that happening. And this year, Palatech products have contributed close to about 20% of the overall Glass Line India products. So I think that's already a substantial improvement from that perspective. Going forward, we only expect this trend to further strengthen.

Understood. And does Thalitic fetch the same margins as the NB operations?

Thalitec margins are relatively stable relative to Nastia. We are currently in the low double-digit margins at Thalitec at the EBITDA level, and those margins are in line with expectations. The only thing with Thalitec is that over the last, I think we had a slightly softer third quarter due to which the annual sales of Thalitec has remained more or less stagnant. We haven't seen growth at the top-line level at Thalitech Germany, but we are expecting that again to turn around because the current order book at Thalitech Germany looks very encouraging.

Understood. And the next question was about the recent developments on the impact of gas prices that, you know, glass furnace operations. Has there been any disruptions in that, and is there any likely impact in the Q1?

So, the gas prices have definitely increased, as with so many other things that have changed because of the recent conflict in Iran. Now, so far, we have been able to pass on the price increases to the large extent, but so there has been the impact. So, what was your exact question? Actually, you got cut off a little bit in between.

No, no, sir. That answers my question, sir. And just taking a step back over the last year of operations, which were the two areas wherein management

had big positive and big negative surprises over the last year?

I think The big positive, I mean, there was not one single big positive, but the fact that the pharmaceutical API sector is doing well is positive for us. Also, we were beginning to see some recovery in other sectors. That was positive. But then, as everybody knows, the last month or last. Since February, things have changed again. So that was probably the big negative. So the big negative is mostly the external geopolitical issues that are going on right now.

And so the last question was that Omeras was expected to achieve double-digit margins and break-even by the Q4. Was the set target achieved? And if not, what were the reasons for the same? And also from your strategy standpoint, what is the game plan for Omeras look over the next two years, considering there is a longer execution timeline of 12 to 18 months for that segment?

So the Overas is now very close to break-even, which is exactly what we had expected and what we had communicated at that point of time. I think we expect over a period of time, maybe over the next two years, to get into double-digit margin kind of business. The growth at Omeras, both in terms of capability, as well as in terms of the order book is very, very encouraging. In fact, the order book from December 25 to March 26, over one quarter, the order book has almost doubled. And we expect this strength to continue going forward as the pipeline of orders over there is very, very strong. So, we expect Omeras to turn around very, very soon. In fact, we are very close to Rikivan, as we already mentioned earlier. So in terms of getting to double-digit margins, I would expect that to happen in the next financial year for Omeras on a standalone basis. So I think as far as Omeras is concerned, we are very much on track. We have built capabilities, as I mentioned earlier. We now have a very strong team. We have concentrated over the last... Six months to build a strong management team, which is critical to deliver the results and performance that we all expect. And I think we have now a team in place already. And I think things are looking very, very encouraging on an overall basis, both from the perspective of team capability, as well as the order book in hand and the order book pipeline.

Great. Thanks a lot for patiently answering my questions, sir. All the very best, and thank you. Thank you.

Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the question queue, please limit yourself to two questions only. Should you have a follow-up question, please rejoin the queue. Next question is from the line of Kiran from Table3 Capital. Please go ahead.

Thank you so much for this opportunity. Sir, I have a few questions. First question, sir, are you giving the breakup these days for Thalitec, Glassline, Filters, and Dryers, and CleanArm for Fi26?

I think as per the segment reporting requirements, we do provide results for filtration and drying, which is, of course, filtration and drying, which is straightforward. Then the glass line products, which includes glass line India, Halitech, which is glass line Germany, and the glass line panels that are being manufactured at Omer. And heat transfer basically captures the heat exchanger business of Kinna. So that's how we are presenting the numbers. I think that's absolutely clear.

Got it, got it. So the glass line piece is what is the combination, and out of that 24% was, to answer your previous question, previous responder, 24% of that was from Thalitex.

That's correct. That's correct.

Okay. Got it. Sir, second question on, actually, sub-question on Khenam, a heat transfer equipment rather. We've done 200 crores of revenue. I think in one of the concours, I can't remember which quarter, but we said we had one large ONG order on heat transfer equipment, and this year we did 200 crores. Do you expect a similar kind of ground rate on the heat transfer equipment going ahead as well for FI27, and are margins also to kind of be in good range for heat transfers?

So, I think we expect the heat transfer business overall to grow at a 15 to 20% range for the next couple of years. That is what we expect. And yes, we have made some inroads in the petrochemical industry and we are looking to expand or rather our market. We are also looking at some export opportunities. In the long run, we feel, especially with the current geopolitical situation happening, whenever that happens around, we expect the demand for the heat exchanger business to really jump. So whenever that happens, we may then talk of a different kind of note. But the timeline is uncertain, of course, for obvious reasons.

Got it. So, till that time happens, 15 to 20% growth is what you're projecting for the next two years. Yes, yes, correct.

That's correct.

Got it, sir. So second question, sir, from an OMRAS perspective, obviously, we bought it for 27 crore. It had about 200 crore of revenue. Now, if I remove 100 crore, because it was only six, eight months where we had OMRAS for this year, 89 crore is what the presentation says. So roughly we did about $1,250 crore this year. In terms of the demand that you are seeing, you know, especially Palatech, very good demand. Umira is very audible doubled. I think pharma and CDMO stuff within India is exploding. So do you think the $1,250 crore has a potential to go to about $2,000 crore in two years?

I think if we do less than 2,000 crores, we will be disappointed. But the only difference would be I would include Omeras in the 2,000 number.

Got it. Got it. Got it. Got it.

Got it.

Got it. So, we are saying, including Omeras, 2,000 crore in a couple of years, give or take. I mean, I'm not holding it to it. I'm just trying to understand the vision, sir. And 15% plus margin overall, not this year, but overall next year is what we are trying to target.

Yeah, I would say, again, 15% margin. Let's understand the Germany business delivered a lower margin. The Indian business, yes, 15% plus, for sure.

So, I was asking about the console, sir. So, console will not be 15. It will be around 15.

Console could be in the range of 14, between 14 and 15 on a console basis.

Got it. Understood, sir. Understood. Understood. And one last question, sir. In terms of customer segments, when it's a customer segment, obviously we cater to primarily pharma and agrochemical and chemical. Within the sub-segment, where are you seeing the steepest growth for demand for our filters and dryers, glass line, including Thalatec and Omera? I mean, in terms of sub-segment, we'll be really interested to see where the CAPEX is happening.

So most of the CAPEX currently in India is happening in the pharma sector, API, I should say. There is also demand in the custom manufacturing sector. I think as I explained, the speciality and the agro are in some form not keeping up with the pace of the others. So that is how it is moving for both filtration and drying as well as for glass line India. It is growing both. For GlassLine Germany business, it's a mix, but we have had also more share from the Pharmaceutical API business.

Got it.

Got it.

Perfect.

Thank you so much. I'll read your inviting me.

Thank you. Next question is from the line of Behel Sharma from DD Investments. Please go ahead.

Hello. Hi. Hello. Hello. Yeah, thanks for the opportunity. Yeah. So, I wanted to ask that, like, how does your long-term global strategy evolve, and what role will Europe and other international markets play in driving HLE's future growth?

Yeah, thank you. I think if you see actually as a company, in the last few years, we have positioned ourselves well in Europe. So we are, of course, already present in India, and we were exporting to different countries from India. But since 2021, we have positioned ourselves well in Europe. So, in Europe, we have, for Halotech products, we have already started expanding out of their markets of strength, which we used to call as a dark country, which is basically Germany, Austria, and Switzerland. So, we have already expanded out of those countries, and now we have created reach in different areas of Europe. But, we have also, in the last few years, expanded into the US market. So, we have appointed more people there, and we have gotten orders of, consistently orders from the US for the last two years. And, as part of our global vision, USA will be a major growth driver for us at Halitech. This will also be the case for our Omeras business. Omeras is a position in Europe, especially in Italy and Germany. So as a first step, we would like to expand our presence in other countries in Europe. And as a step two, we will also take Omeras to the US. So we want to become a technology-led global company. The new opportunity that will come by also with the Middle East, because as I explained in the previous question, Middle East will become a great opportunity for us in the heat exchanger business. So we already have a lot of things going on, and we have already invested in people in the Middle East. We have our own team being built up, and this was being done well before all this conflict started. So that was also a big area of focus. So Europe, Middle East, US, we are well positioned to expand ourselves into different markets.

Great, great, great. Understood. And one more question, what is the current utilization level in the heat exchanger segment, and how is it expected to trend over the next two years, like next two to three years?

So the utilization in heat exchanger business is about 70-75%, and I think we will, as I explained, we will grow at a normal phase, we will grow at a 15-20%.

On the next two years.

So, because we are doing that, we are also looking for creating, we will start looking for creating capacity next year onwards, based on how it goes, how the current year goes.

Okay. And one more last question, that where do you expect incremental demand, like for heat exchangers to originate geographically, like between domestic markets like India and export regions such as Europe or the Middle East?

So our current focus, of course, is in India. For India, the strategy is penetration because there are players present. We are new entrants for India in intellectual business, especially for petrochemical and oil and gas. For the traditional chemical and pharmaceutical industry, we are the largest player in the country and we will continue to grow there and keep our market share. The next growth of, next phase of growth for us is expected to be the Middle East, to begin with, and later on, as a step two, we will expand in the United States.

Okay, thank you so much.

Thank you. Next question is from the line of Ajay from Niveshai. Please go ahead.

Thanks for the opportunity. Sir, I wanted to know more on the homeowner. If I heard it correctly, you mentioned that the order book currently stands at 78,000.

Yes, the current order book is about 78 to 79,000.

And sir, if we can maybe elaborate more on the Omerus, sir, what was the contribution maybe in this portal, because it was reported in the Thalatec, I mean, in that subsidiary, so how much contribution has been recorded for Omerus in this portal, and also we can maybe, because the Thalatec At an individual level, we used to do a bit margins of around maybe 13-15%. So, if you can maybe give us some hints on the absolute loss which we are entering at Omeras currently. And maybe this year, at what scale do we see Omeras to end up with?

So, Omeras' revenue contribution in the fourth quarter is between 43 and 44 crores to the overall phase of the consolidated basis. I think the margin at the EBITDA level is we touch breakeven when we do roughly about between 45 to 50 crores in a quarter. That's roughly about 15, between 15 and 18 crores, 15 to 17 crores per month. So that's our rough break-even calculation. Of course, it depends on margins and some dynamics of the business, but probably that's the kind of number that we are looking at, which effectively means that at roughly about 200, 225 crore kind of an annual revenue, Omeras will be at EBITDA break-even. So that's as far as Omeras is concerned. As far as Caltech is concerned, I think we have had a year, as I mentioned, where the numbers were slightly subdued in terms of growth relative to the previous year. But the margins have been in the low double digits. I think it's in the range of roughly about 11%, 11, 11.5% at the EBIT level.

Also, sir, like, because on Omeras, like, we are targeting, uh, maybe this year to achieve friction and even get some margin, so we'll close this, uh, year maybe with a 200% of top line. Is that what, uh, we're aiming at for the Omeras business?

I think the aim is to get way over the world at cross. That's what our aim is. Oh, yeah, that's obviously, yeah, yeah, most certainly. Because the order book and the pipeline currently indicates that we will be able to achieve that for this year. So while the margins may not be very healthy in terms of double digit or so on, but at least the fact that it makes a sustainable turnaround would itself be a very big thing for us. Going forward, of course, we can wait on top of that.

And this majority of the demand will be from like tanks, facades, or biogas, if we can maybe give some color on this. And cloud with this, the India Capex, the India Capex, which we had, which we are planning to look for over us, like which particular product is that for, and will that be beyond the order book for the business which we are looking at. Like that is particularly for Indian business and not export.

Sorry, for the European market, we expect demand from both tanks as well as from architectural business. So Omeras has a great strength in architectural business and that we will continue to do. And also we expect robust handy demand from tanks. Good morning, everyone. As far as the India investment is concerned, we are investing in India mainly to cater to the Indian market, and in the long run, for the building. So, the demand for the India operations will be, in the beginning, we are expecting to do only tanks. The architectural market in India at the moment is not at the maturity level where they will accept this product. So, yes, in the beginning three years or so, we will be focusing on tanks for different applications. So, tanks also are used for various applications. Tanks are used for storing wastewater. Tanks are used for storing extremely pure water for semiconductors or food. Tanks are also used as biogas digesters. So, when we say tanks, it's not so simple. Tanks also are multiple segments.

Got it. And the timeline of this Capex, like, we expect this to get commercial in Q1, FI27?

We expect to be commercially operational by the end of this financial year. So this will, the Capex in India will probably reflect in next year's financial from a revenue perspective.

Okay, okay. That's it. Thank you.

Thank you. Next question is from the line of Ishika Bajaj from Credent Family Office. Please go ahead.

Yeah, hi. Am I on the phone?

Yes, please go ahead.

Yeah, I thank for the opportunity. So I wanted to ask, did you have any export revenues in this financial year?

I think exports from India have been in the range of about 5% to 7%. So, yeah, of course, I'm not including the revenues from the Germany business, but exports from India operations have been in the range of 5% to 7% of the India business.

Okay. And just a broad question, which segment are we expecting to drive overall growth in the next two years, like every segment that we currently have?

See, our growth will be driven by multiple segments. We will not be driven by one segment, and that is actually what we are aiming for as well in the long run. So, pharmaceutical API businesses are doing well, and they will continue to be our top contributor to our growth, India as well as outside of India. But now, because Omeras is in our portfolio, we will also, other things like biogas, storages, storage systems, architectural business, they will also contribute to our growth. And at Kinam, as part of our strategy, we have been sensing into the oil and gas and petrochemical business. So, that will also contribute to our growth. So, this gives us a very diversified product and growth portfolio.

Okay, and is it possible to get the pilot examines for SID and B-Hex? Could you please repeat? Sorry, I couldn't get your question. If you could kindly repeat? No. Yeah, is it possible to get this? Hi, it's a revenue number for S526.

Yeah, so in the current financial year, the revenue of around €34 million. Okay, thank you.

Thank you. Next question is from the line of Vivek Gupta from Star Investment. Please go ahead.

Yeah, hi. Am I ready then?

Yes, please go ahead.

Yes. Sir, as the next-gen leaders at the HLE, how do you envision HLE to, you know, evolve over the next decade, and what positioning or capabilities would you like the company to be known for? Also, additionally, with multiple integrations underway, how are you managing increased organizational complexity while, you know, maintaining executional discipline and the margin performance?

These are many questions in one, but I will maybe try to answer as to my best understanding. I think actually we have always striving to be a technology-led global company. And even with the next generation, that vision or that way of doing business will not change. We will not go into… That's our new kind of products. Only and only if we have some technology differentiation, then we will enter a segment or a product. So that has been our strategy so far, and we will continue to operate in that way also going forward. As far as the integration question goes, we have now, this is, we have already acquired now three, actually four, if you start from Swiss Class Code, four acquisitions, out of which two are international and two acquisitions are in India. So, we have now, I would say, a good understanding of what we have to do when we acquire a company. And we are carrying that process forward also for Omeras now. And we have already done it for Thaladec and Swiss ClassCode and Kinyam. So we have a good team. The team understands what needs to be done. And the integration has been, so far, quite smooth. I hope I answered your question.

Yes, yes, sir. Sir, in the Q2 call, you had guided for heat exchanger utilizations to reach around 65 to 70%. So, could you provide the current utilization level and elaborate on the factors behind your relatively cautious growth outlook compared to the listed peers that are, you know, expecting stronger growth in this segment?

See, our current utilization is in the same range, 75% range, plus or minus a few percent. So, that is it. And peers, I think, as far as the chemical, pharma, API, specialty chemical industry goes, there are really no peers to connect. So, I assume that the peers that you are speaking about are mainly the peers or the companies that are operating in the petrochemical and oil and gas sectors. So, we are relatively a new entrance to petrochemical oil and gas, and that is the reason that we are not projecting ourselves to do the same kind of numbers or growth that those companies which are well established in those sectors are selling.

Okay. Okay, sir. Thank you. That really helps and all the rest.

Thank you. Thank you.

Thank you. Next question is from the line of Soumya Raghuanshi from Nirwa Capital. Please go ahead.

Good evening, sir. Thank you so much for taking my question. So, my question was, how do you view the synergy potential between Omeraz and HLE's existing portfolio?

See, Omeras and actually, from the market point of view, we have a lot of customer overlap in the area and outside as far as the tank business goes. There is also a potential... ...for technology exchange, because Omeras is a glass-line company, and Hale-Tech and H&E Glass Company is also a glass-line manufacturing company, but the way things operate, there is opportunity to learn from each other. So there is good synergy potential from that point of view. And, of course, Omeraz helps us to expand our markets, I mean, reach, because Omeraz is present in certain markets where HLE was not strong. So, over a period, it's a long process, it doesn't happen overnight, but over a period, we will be leveraging each other's strength in all these three areas that I just mentioned.

Okay, so got it. Additionally, within the glass line equipment segment, what are the key factors driving the anticipated utilization wrap-up, and how system-able do you believe this trend is?

So, the key factors that are driving the glassine design, I assume you are talking about the Indian operations of glassine business, are the demand uptick that we have seen in the ETI pharmaceutical business, and a little bit of recovery also in the speciality and the CDMO kind of company. I mean, everything was going well until about February. What we are seeing is some companies are deferring some decisions because of the ongoing geopolitical situation. While the, I mean, pharma, the pharmaceutical and the API sectors are not yet doing that, but especially the CDMO or the pharmaceutical companies, which we are seeing are coming back, have kind of, again, deferred a few things. That is what we are seeing.

Okay, so I got it. That's it from my side.

Thank you. Next follow-up question is from the line of Kiran from Tabletree Capital. Please go ahead.

Sir, I have a quick clarification on, I mean, glass-line products. If I just take glass-line products, it's a combination of our glass-line business plus Keenarm plus Omeras, right? And help me understand if this is correct. So, I can... Sorry, go on. Sorry, sorry. I just would like to interject.

GlassLine products do not include Kinam. Kinam is in the heat transfer.

Sorry, sir. GlassLine includes GlassLine for India Business, Palatek, Inesco, Palatek plus Omeras, right? That's correct. That's absolutely correct. Perfect. So, 676 crore is what we did in FY26. Now, if I understand Palatex revenues from the previous responder's question, it's $34 million. It's about $377 crore. Right. 31 million euro, 377 crore. And then 89 crore is from Omeras. So if I subtract all of that, then I get about 210 crore of glass line business in India. Right. And this is pretty much flat lined. I mean, if I look at 21, 22 numbers, it is pretty much flat lined there at 200, 222. I don't know if I'm making any mathematical mistake here.

I think you're broadly, I think your methodology is correct. I can just correct you to the extent that the thaletic... India and our equivalent revenue is a little under 350 crores because the revenue is calculated at the average exchange rate during the whole year. You probably take an exchange rate right at the end of the year. Right, right, right. So, the number that reflects in the accounts is, I think, 345 crores, if I'm not mistaken. You are taking a crore here and there. And the India business is a little under 250 crores. So, it is a considerable improvement over the previous year.

No, improvement over the previous year, okay, sir, I mean, that's great, but I'm just saying it's pretty much flatline for, I mean, I'm not talking about the peak of chemical capex in 21 and 22, but from 22 onwards, it roughly seems to be around this 200 to 250 mark, not pushing through it. I mean, is there any, I mean, should I understand it as that glass line is pretty much flat line, one, because of competition, two, because our clients have not invested as much CapEx over the last four years? How should I read this is what I'm trying to answer, because we have not grown for four years, if I look at a four-year timeline.

So, there is a yes and no, because what has happened in the last four years is that because of various reasons, the margins have been subdued. And I mean, okay, let me put it other way. The cost for equipment that we used to get in 2021-2022. I was much different than what we're getting now. So if you see the activity at the shop floor, the activity in the shop floor has actually increased. The number of equipment that we dispatched has actually increased by 30 to 40%. But the value for equipment has gone down to such an extent that you don't see the growth in the business. So CapEx is happening. Our business has grown from an output point of view, but not from a revenue point of view.

Got it.

Sorry to interrupt Kiran, we will take that as the last question for the day. Thank you. Ladies and gentlemen, we will take this as the last question for the day. I now hand the conference over to the management for the closing comments.

Thank you very much. We look forward to seeing you in the next call. Thank you, sir.

On behalf of HLE Glass Court Limited, that concludes this conference. Thank you all for joining us and you may now disconnect your lines.