Earnings Call Transcript - XNSE:SETL 2026-11-05

Operator

Yeah, she's good.

Avish, Head of Investor Relations

Yeah, so good evening, everyone, and welcome to the Q2FI27 Earnings Call of Standard Engineering Technology Limited. We have on the call Mr. Nageshwara Kandula, Managing Director, Mr. Ramakrishna Kandula, the Executive Director, Mr. Venkata Mohan Rao, Executive Director, Mr. Yasu Kyuki Ikeda, Executive Director, Mr. Athuri, the CFO, and Mr. Kasu Brahma Reddy, Founder and Director of G-Scale Energy. We must remind you that the discussion on today's call may include certain forward-looking statements and may be therefore viewed in conjunction with the risks that the company faces. I will now request Mr. Nageshwara, sir, to please take us through the financials and the business update, subsequent to which we will open the floor for the question and answer. Thank you, and over to you, sir.

Nageshwara Kandula, Other

Good evening, everyone. Thank you, Avish. A warm welcome to all our shareholders, investors, and analysts, banking partners, customers, and entire Standard Engineering family. I am very happy to share that Standard Engineering is entering one of the most exciting growth phase in its journey. Our core business is growing strongly, our capabilities are expanding, and we are seeing excellent opportunities in India and international markets. Let me begin with our financial performance. During Q2FI27, we reported total revenue 296.6 crore, representing strong year-on-year growth 62.3%. Our EBITDA increased by 79.7% to 51.4 crore, supported by strong execution and expanded product portfolio healthy customer demand. And operating leverage, these benefits were partially offset of higher employee and other operating costs. Profit before tax grow by 41.4%, 39.2 crore, while profit after tax increased by 37.9% to 28.2 crore. The lower growth in profit before tax compared with EBITDA reflects on the reduction of interest income. Surplus funds that were previously held on fixed deposits were deployed to during the quarter towards the acquisition of stake in G-Scale Energy Private Limited and GLHECO Company Limited. Consequently, these funds cease to earn deposit interest following their deployment. G-Scale is currently in the pre-operational stage and expected to commence operations in December 2026. There is, therefore, an interim period in which interest income has reduced while the investment is at the generate on an operating contribution. This investment supports our strategy of building an additional avenue for long-term growth. For the first half, FI27 total revenue increased by 53% to 544.3 crore, EBITDA grow 56.5% to 91.91 crore, while Profit Before Tax and Profit After Tax increased by 33.9% and 32.2% to 75 crore and 54.9 crore. Respectively, the reduction on interest income during Q2 also explained the difference between EBITDA growth and profit growth for the first half. We generated operating cash flow 61 crore during the first half, exceeding the 45 crore generated in the entire previous financial year. These results reflect strong operating performance, improved cash generation, and our continued focus on execution and financial discipline. Coming to our core engineering business, I am pleased to say that our core business is booming. We are transferring standard engineering from an equipment manufacturing company to a complete integrated engineering solution provider for the pharmaceutical, chemical, biotechnology, and food industries. Today, customers traditionally depend on many specialized companies for different equipment and engineering requirements. At Standard Engineering, we are bringing together a wide range of products and capabilities traditionally offered by nearly 150 specialized engineering companies under one roof, i.e. SCTL. Our vision is very simple. One company complete engineering solutions from concept development, basic and detailed engineering, equipment manufacturing, installation and commissioning to complete turnkey projects. We want to become the customer's single engineering partner. This business model gives you a strong competitive advantage and create a significant opportunity for future growth. I am particularly excited about the pharmaceutical and CDMO sectors. India is becoming an important global manufacturing destination for the pharmaceutical and specialty chemicals. CDMO companies investing new manufacturing facilities and expanding their existing facilities and capacities. We have received significant orders from CDMO customers, and our visibility for the future orders is very strong. Our discussions with customers are encouraging and our project's pipeline continue to grow. We believe this industry will create substantial opportunities for our core engineering business over the coming years. Our international business is another area where we are seeing very positive developments. Export enquiries from the United States and Europe have increased significantly. We are currently in an advanced, encouraging discussion with several potential international customers. We see strong opportunities for specialized process equipment, glass line equipment, and complete engineering solutions. We believe export can become an important growth driver for standard engineering. Our ambition is clear. We want standard engineering to become a respected global engineering brand. Our partnership with ZLACO Japan is another important step on our growth journey. We have completed the first phase of our investment by acquiring 19.9% stake. This partnership will be helped to strengthen our glass learning technology, research and development, and advanced engineering capabilities. By combining Japanese technology with Indian manufacturing strengths, we believe we create significant opportunity in domestic and international markets. Now, let me come to our second growth engine, G-Scale. The rapid growth of artificial intelligence and cloud computing is creating strong demand for advanced data center cooling and power infrastructure. We are developing G-Scale into an integrated manufacturing platform, these critical products. I am happy to share two important updates. First, our secondary fluid network business, machinery orders have been completed, equipment has started arriving, and installation activities have begun. We are targeting 15th December 2026 to start revenue generation from this business. Second, our power products business. Machinery orders are completed and delivery are expected to begin from November 15, 2026. We are targeting 15, January 2027 to start production power lines. These are important milestones to building our data center infrastructure business. As I communicated earlier, we are targeting more than 250 crore revenue from the G-Scale in Q4-FI27, subjective to timely production, readiness, and project execution. Our team is fully focused on achieving these milestones. We believe G-Scale has potential to become a major growth engine for the standard engineering. Dear shareholders, today's standard engineering has two exciting growth engines. Engine 1 is our core engineering business, which is growing strongly through CDMO opportunities, integrated engineering solutions, turnkey projects, and exports. Engine 2's G-Scale, which is preparing to enter commercial productions in the fast-growing AI data center infrastructure market. Our Japanese technology partnerships are further strengthening our capabilities. Our focus remaining is in execution, world-class quality, financial discipline, and long-term profitable growth. We are not building standard engineering for just one quarter or one year. We are building a noble engineering company for the next several decades. I strongly believe our biggest opportunities are still ahead of us. I sincerely thank you our shareholders, customers, employees, banking partners, and technology partners for their continued trust and support. Thank you very much. We can now open the floor for questions and answers.

Operator

Thank you, Mr. Nagesh. We will now open the floor for question and answers. We ask the participants to use the raise hand function to ask a question. We'll wait for a moment as the question queue assembles. Our first question is from the line of Mr. Rajat Agarwal. Please go ahead.

Rajat Agarwal, Analyst — Millkani Investment Managers

Hello.

Operator

Am I audible? Yes, Rajat. Please go ahead.

Rajat Agarwal, Analyst — Millkani Investment Managers

So, we announced a 500 crore investment for building our data center manufacturing capability. I believe we have invested 125 crore cash in G-Scale for the 34% stake acquisition. So, do we plan on increasing our stake further in the coming year?

Nageshwara Kandula, Other

Yes, this is under stock exchanges approval. We applied, approved for the waiting for the stock exchanges. Once 64 pros amount is a share shopping is going to happen, then we will receive another 19%, 17.4%, then we will become a 51% shareholder.

Rajat Agarwal, Analyst — Millkani Investment Managers

Sir, I was asking that we have announced the 500 KTX. That is separate.

Nageshwara Kandula, Other

That is separate.

Rajat Agarwal, Analyst — Millkani Investment Managers

This is separate. Okay, sir. And how are our discussions going on with our potential customers, sir? Like, have we received any orders?

Nageshwara Kandula, Other

We are recently, one of MNC, we qualified the participating tender. We participated, waiting for results. But encouragements are very good. But first, our aim to install our Secondary Fluid Network Manufacturing Missionary and Second Power Lines Manufacturing Missionary. This is under, I explained to you, secondary fluid network manufacturing will start December 15th onwards, and power lines, power verticals going to manufacturing January 15th onwards, we are going to start. So once a missionary installed and customer will visit, then they will approve. But everybody waiting for factory visit, coming months, we are waiting for the approvals, and we are really, suppliers are not available. However, many times I mentioned this forum also. So, we are on track.

Rajat Agarwal, Analyst — Millkani Investment Managers

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

Operator

Thank you, Rajat. Our next question is from the line of Rohit Taparia. Please go ahead. Rohit, please unmute yourself.

Rohit Taparia, Analyst — Individual Investor

First of all, congratulations on your revenue growth. I want to first of all ask, what would be the consolidated revenue growth from G-Scale and Japan subsidiary and whole of the company as a whole for FY27? Any guidance and for further two to three years?

Nageshwara Kandula, Other

FI 27 we already guided. This is almost 50% growth from core business and another 250 crore business coming from G scale. Total 1450 crore is the revenue we guided in the openly and we will see appropriate time we will guide 28-29.

Rohit Taparia, Analyst — Individual Investor

Okay, and sir, mainly, I, one thing I saw that mainly our profit declined this quarter. This was due to the inventory buildup or some.

Nageshwara Kandula, Other

No, inventory, not, interest income reduced. Because of earlier we have fixed deposits, that money now we deployed to acquire by the G scale and GL ACO and interest income is reduced, but our profitability percentage wise increased EBITDA level and net profit also. Operational profit.

Rohit Taparia, Analyst — Individual Investor

Okay, sir. That means from next quarter on quarter, if we see, then there would be an increase on pet in absolute terms.

Nageshwara Kandula, Other

Yes. Yes.

Rohit Taparia, Analyst — Individual Investor

Okay. Okay, sir. And one more question was that. Okay, I will join again. I will again join the case.

Nageshwara Kandula, Other

Okay.

Operator

Thank you, Rohit. We'll take the next question from the line of Viraj Mahadevia. Please go ahead.

Viraj Mahadevia, Analyst — MoneyGrow

Hi, sir. Regarding your core business, you know, exports are single digit in sales, and there's obviously a big global opportunity. How are you capitalizing on this opportunity? Are these inbound tenders? Have you applied for distributorships? Or are you partnering with someone to sell your process equipments in the Western markets?

Nageshwara Kandula, Other

Now, we have already agreements. We tie up with IPP, Europe and US market, and API Pharma in Middle East, and Bayakan is the Southeast Asia. We have tie-ups. They are resellers. So, because of local service, local handling clients, we tie up with three companies globally. And Japan and India, we are doing directly. Japan, we have JLACO support.

Viraj Mahadevia, Analyst — MoneyGrow

Sir, are these recent tie-ups or when were they done?

Nageshwara Kandula, Other

IPP, we done two years back. Now, we started businesses picking up huge from IPP. And the last one, two quarters, sir, we have increased. I mentioned in my speech also, we are getting huge inquiries from US and Europe markets.

Viraj Mahadevia, Analyst — MoneyGrow

Understood. And what would be the value of these inquiries cumulatively? Obviously, I understand that you need to convert them and you need to bid for them. But of the order of, what would it be in value terms?

Nageshwara Kandula, Other

This year, we are going to touch export 7-8%. Because of domestic growth is very high. We are almost, domestic revenue growth almost 90% this year growth is happening already. We guided. So, still growing international business. This year, maybe we will touch 7-8% international business. And finally, we are targeting coming two, three years at least to 20 to 30%. Even the G scale parts also, we are going to majority, we are going to focus on export. So same engine one also focusing on export. And same time G scale parts also going to export though, at least to consolidation point of view, maybe 20 to 30% coming two, three years, we are targeting to export.

Viraj Mahadevia, Analyst — MoneyGrow

Understood, sir. And on the G-scale product side, assuming your products would be of comparable quality to those being imported or supplied in other markets, what would be the price differential of what you would price your products at roughly vis-a-vis what you typically import them for?

Nageshwara Kandula, Other

Price always, export margins, export prices are very high. That is always better margins.

Viraj Mahadevia, Analyst — MoneyGrow

No, sir. What I'm saying is currently India is importing these products, right, for data centers. Now you are looking to indigenize them. So the products that you make would be how much cheaper than those being imported into India?

Nageshwara Kandula, Other

Brahma can answer that. Brahma, sir, can you answer?

Kasu Brahma Reddy, Other

Yeah, it's a nice question. So... So, we see that the predominantly we are focusing on Middle East and the EMEA market, export as such, that part of the world. If you take us to typical statistics of buying a switchgear panel from anywhere in the West part of it or otherwise Southeast Asia and that part of it as X price and the India is at least minus 25-30%. We see the market. So the same way the product is landing in India market is whatever the product comes from the Southeast Asia or other part of the world, we see there is a higher jump there if we compare with India. So we could see that 25-30% is minimum. Understood.

Viraj Mahadevia, Analyst — MoneyGrow

Thank you very much. All the best. Thank you.

Operator

Thank you. We'll take the next question from the line of Ishan Vaveh. Ishan, please unmute yourself and go ahead.

Ishan Vaveh, Analyst

Hey, so with the G-scale plant commissioning that was supposed to happen in November now getting pushed to December, do you believe that the 250 crore revenue this year is... Still plausible. And could you please help me understand if there are any clients that have actually been signed? You told me about the ones that you have bid for, but are there any clients in the pipeline who have actually signed and we can deliver to this year?

Nageshwara Kandula, Other

Brahma, sir, can you answer that question? Oh, yeah, yeah.

Kasu Brahma Reddy, Other

Absolutely. Yeah, of course, we initially by end of November, we go live, but it is taking another 15 days more. It is in SFN factory going live. Most of the machinery is in place and a few components to come for the commissioning of it. So as far as the project is factory going live, that is the status. And the inquiries, we have got multiple inquiries, not one, two, more than 10 inquiries we already have in. And the pre-operational visits are also done with a couple of customers. We cannot disclose at this point in time. And they are closely tracking our factory going live soon by 15th of December. Then appropriate time will definitely disclose, but we have many inquiries.

Ishan Vaveh, Analyst

Mr. Reddy, could you also help me with understanding what percentage of our revenue will be driven by power solutions and what percentage through cooling? And I believe in an interview, you had said you were targeting 100 kids for cooling a day, I believe. Could you help me understand what might be the capacity or realizations of our 250 crore goal this year?

Kasu Brahma Reddy, Other

In the 250 crore's revenue, we have three solutions. One is the only SFN pipe. Other one is SFN solution, including installation and the commissioning and all that part of it, and power products. We see major portion is from the SFN and the solution that we will be delivering, along with the Tanki solution. So the capacity, whatever that we have declared earlier, the same capacity that will come out, start coming, start producing from 15th of December onwards. So we see a significant major portion come from the SFN side of it.

Ishan Vaveh, Analyst

Understood. Perfect. Thank you so much.

Operator

Thank you. Thank you. Next question is from the line of Jameet Jain. Jameet, please unmute yourself and go ahead.

Jameeth Jain, Analyst — Wealth Mine Advisory Services, LLP

Hello. Am I audible?

Operator

Yes. Yes, Jimmy.

Jameeth Jain, Analyst — Wealth Mine Advisory Services, LLP

Yes, sir. So thank you for providing me this opportunity. So I just wanted an update regarding what is the peak revenue potential from our current facility, which is currently operational? And what is the target timeline for reaching that optimal capacity utilization that we are targeting?

Nageshwara Kandula, Other

Currently, we have existing business have almost eight lakh square feet. And another, we are, recently we are discussing under another 3 to 4 lakhs square feet we are going to add in existing facility. That's the reason next, maybe next month, after, next month we are going to update again my manufacturing capacity, capabilities, capacities were increasing tremendously. And G-scale already for 4 lakhs square feet up to 2.9 lakhs square feet going to operational January 15th onwards. Next, another 1 lakh 10,000 square feet going to add another 3-4 months. And also, greenfield project we are building for the G-scale. That is almost 1.5 to 1.6 million square feet. We are building the facility. SETL going to build the own site, 36 acre land, 1.5. The total G-scale going to 27 and it became a 1.9 million square feet facilities. And also same time, SETL core business currently 8 lakhs, another 4 lakhs we are going to add. That became a 1.2 million square feet facilities. So, G-scale means we are creating capacity, giga-scale capacity, products, manufacturing facilities, we are creating one part. And first-engine, SETL, today, I think this capacity after 3-4 lakhs adding, almost 3,500 goes to closely 4,000 production capacities we are creating.

Jameeth Jain, Analyst — Wealth Mine Advisory Services, LLP

Okay, sir. That's good to know. And when do we achieve this target?

Nageshwara Kandula, Other

We have strong visibility. That's the reason we are building the facilities. And we will guide you time on time this growth prospect.

Jameeth Jain, Analyst — Wealth Mine Advisory Services, LLP

Okay, sir. And do we have any long term regarding acquiring more than 51% of the G-scale company? No. Present, no. Thank you.

Operator

Thank you. The next question is from the line of Irthias. Please go ahead. Can they request you to speak a little louder?

Nageshwara Kandula, Other

Let's keep the order in a minute.

Operator

Participants will request you to use the raise hand function to ask a question. We'll wait for a moment as the question queue assembles. The next question is from the line of Pariksit. Please go ahead.

Pariksit, Analyst

Sir, hi. Congratulations on a decent quarter. So my question is to Kasu, sir. So Kasu, sir, have you already tied up with all the vendors, your international vendors who are approved by the data centers and hyperscalers in terms of securing supply for the power systems and CDUs and others? And also internally, whether are you going to manufacture CDUs yourself?

Kasu Brahma Reddy, Other

Yeah, we already have the SFN as such is completely the solution built by us as per hyperscaler's requirement. It's a pre-qualified solution. And the products that are required components, like getting the walls, there are pre-approved vendors from the hyperscalers or technical specifications and reference of picture. So that all of them, we have done the evaluation, we have completed, we placed orders with the vendors who supplies the machinery that is required to produce. Most of them arrived and a few of them underway. So, in terms of the CDUs, yes, currently, initially, we supply SFN solution, leaving CDUs, part of initial takeoff, and over the period, we are establishing partnership from an European company to a couple of them, we are still evaluating, and we'll start manufacturing CDU out of our factories soon.

Pariksit, Analyst

So now the other thing you touched upon was that you are in advanced stages of discussion with the MNC client. So just wanted to understand, it's just that the plant is not operationally stopping us from getting orders once the plant is operational. So when can we expect the first breakthrough in terms of what are happening for us?

Kasu Brahma Reddy, Other

No, that's not the situation. It's not a factory. It's almost all going on time. It's only 15 days. All global MNCs have a lot of very lengthy process in tender evaluation and closing of it, expected to get through in the next couple of weeks. So, not only one, and we are working with a couple of MNCs now, and all of them going very active. I think all the deals are very large size in nature, so they generally take a bit more than the typical contract closures.

Pariksit, Analyst

So by this month-end, can we expect the first breakthrough order to come to us?

Kasu Brahma Reddy, Other

We will let you know. We will definitely let you know. So our team is absolutely standby. The moment we get, we will come to know.

Pariksit, Analyst

Okay. And just on the domestic ordering side, beyond the hyperscalers and MNC customers, so how are the Indian customers looking at us, our facility, and are there anything positive happening on that side?

Kasu Brahma Reddy, Other

Multiple customers. Even we just finished a visit. The customer visits are happening every week almost, so they're eagerly looking for a plan to come up.

Pariksit, Analyst

Okay. And any plans for like, as you said, Middle East, you have, you're planning to product, supply some products. Do you think that with some of your supply chain partners, you can get some, I mean, will you manufacture for them also and then white label and maybe sell it directly? So any thought there, how are you looking to tie up with some of these LLC companies?

Kasu Brahma Reddy, Other

Yeah, Middle East is very actively looking for the many of Indian data center experts well positioned in Middle East data center market. And those guys are tracking every day of Indian market and the people who are coming up in this part of the manufacturing or the services availability. Part of that, there is a very good visibility for that market. A recent part of our business development activity, we have been there in Dubai and Middle East part of it. So people are really looking for it. They are highly dependent on the Western market, and the deliveries lead times are huge, and the cost also as a natural phenomenon is huge, and they are eagerly looking for Indian companies to come up and supply.

Pariksit, Analyst

But my question was more on, will you do contract manufacturing for some of them and see companies and maybe supply to their supply chain in other markets and export markets? Is there a chance like you can manufacture for them? Yeah, yeah, yeah.

Kasu Brahma Reddy, Other

A couple of Western companies that we already had one stage of discussions for a few products. It's not necessarily contract manufacturing. We are establishing the partnerships and JVs on the particular product and the technology transfer options.

Pariksit, Analyst

Okay. And just for last question, sir, I mean, we have been hearing all these noises around data center globally, slowing down and concerns around that, which is also impacting Indian markets. So just since you're a veteran in this industry, so what is your own sense where India is heading towards? I mean, is it we're just starting off and maybe the best years are yet to come? And when do you expect this pickup in momentum and monitoring, at least from the data center capacity going from 1.6 to 10? So how do you see directionally? Is that going to happen or do you think there'll be impact because of whatever is happening locally?

Kasu Brahma Reddy, Other

The interesting fact of India is, if you look at the global statistics, I think the data points are pretty much available in the market. And across the globe, today's capacity is around 100 plus gigawatt. And the recent one of the report, six months back report talks about 250 gigawatt across the globe. Now, recent report talks about 550 gigawatt to come up in next five to six years. And that's what the whole market, but when it comes to the India. Across the globe, the AI is driving the market, but India has its own cloud sovereign data mandate. That itself will go anywhere between 18 gigawatt to 30 gigawatt in the next 10 years is the reports that are talking about and people that are talking about. As far as India is concerned, there is a great feature. Great means the greatest feature. India market is a highly focused market across the globe because India carries the highest population in the world versus any other country, but we are holding very lowest data. It's just 1.6 Thank you. Data is primarily driven by the people, machines, and processes, and stuff like that. So, we're supposed to hold the highest data in general, but the dynamics are very different. So, for that, sovereign data itself is calling out India capacity should grow anywhere. Already, India announced almost a 16 to 18 gigawatt, and it will keep going, and the experts are all expecting anywhere between 15 gigawatt to 25 gigawatt to go live in the next 10-15 years. It's a great market for India.

Pariksit, Analyst

So per megawatt, like typically on the infraside, excluding land and buildings, we're spending about 50 crores. So is it the TAM which we are looking at for your manufacturing? Is it like closer to that 50 number? Or so typically per background, what will be addressable TAM?

Kasu Brahma Reddy, Other

The product that we are manufacturing is a wide range, and the factory is a very large factory that what we are building is 1.9 million square feet. It's a mega size. If you look at all APAC regions or anywhere, the data center specialized product manufacturing, you cannot find anywhere facility beyond that. Three of the global MNC companies who are already in India, their factory capacities are anywhere between 7 to 8 lakhs square feet. We are already going big one because we already see that there are so much of modular services are coming up. So, we see good market share, at least the product range that we are building anywhere between 55 to 65% of the market access product range what we are building.

Pariksit, Analyst

So, you will cater to up to what crore per mega? What is it like per mega? 40 crores, 50 crores, 30 crores?

Kasu Brahma Reddy, Other

That is all based on the market and dynamics. I cannot comment on that.

Pariksit, Analyst

Okay, just one last question for you, sir. How is the talent building happening? I do see your LinkedIn page with some of the brightest talent. At least from the MNC companies, a lot of people are joining. So, how are you building your team? So typically, we can highlight what kind of talent you are able to attract in this segment because it's a very knowledge intensive industry. So how has been the talent coming acquisition done by you in G-Scale? So how big is the team now so you can help us understand what kind of people you are able to get in?

Kasu Brahma Reddy, Other

We already have a sizable team in the company, and we already captured great talent of India. Great brains came together. Our leadership team is almost around... 14-15 people already onboarded with all segments, product engineering, and all kind of verticals. And the downline team also sized more than 75 plus team already onboarded and a lot more to join. So the team is, we captured the team very fast and we handpicked the people, whoever is the best in India because it's a specialized environment. So we have to have specialized people. I think you all come to know the LinkedIn and that's all we are publishing. And of course, few of them we cannot post them, but most of them, yes.

Pariksit, Analyst

Okay. This is one last question to Nagesh, sir. So if you can help us understand what has been the total order inflow from the Paras and the CDMO and other segments financially and what is the pipeline looking for you where you are already bid and bits are yet to be opened? And what is the closing order book?

Nageshwara Kandula, Other

I think now almost a thousand close order book.

Pariksit, Analyst

And order inflows, financial year to date order inflows? Sorry? Sir, order inflows for this financial year, how much has been in the first six months, what has been the order inflow for you?

Nageshwara Kandula, Other

600, another 600. Next year, maybe we have already 400 close order book, 400-500. In the pipeline, you are seeing? No, not 500. Almost now, 600 we finished it. Another 600 we are targeting, coming H2. So, balance another 500 crores maybe for the going to roll on to next year, 28 FI, FI 28.

Pariksit, Analyst

So, total under backlog is about 1000 crores you are saying.

Nageshwara Kandula, Other

100 crores and also another 5 months easier. Every month we are booking average under crores.

Pariksit, Analyst

Okay, and exports are how big is the export order book now and export revenues you are expecting in FI27?

Nageshwara Kandula, Other

FI27, that is 7-8% we are going to reach the export revenue this year, we are expecting. And one order is in the pipeline, big order, maybe we are expecting any moment we receive the, that order size is almost 8 to 9 million worth of order. But we'll see, we'll get or not sometimes.

Pariksit, Analyst

Sure, sir. Thank you, and wish you the best, and wish you all a happy Diwali. Thank you. Thank you. Thank you.

Operator

Thank you. Our next question is from the line of Keerti. Please go ahead. Kirti, please unmute herself and go ahead. We'll take the next question from Jameet. Please go ahead.

Jameeth Jain, Analyst — Wealth Mine Advisory Services, LLP

Yes, sir. So what sustainable margins can be expected in long-term given G-scale scales in its operations to its potential?

Kasu Brahma Reddy, Other

Yeah, you want me to take that question? Yes, please. No, I think he's asking overall group or the G-Scale, Mr. Jamil.

Jameeth Jain, Analyst — Wealth Mine Advisory Services, LLP

Yes, the overall group, yeah, on the consolidation basis.

Nageshwara Kandula, Other

G-Scale, you can answer G-Scale, I will answer overall group.

Jameeth Jain, Analyst — Wealth Mine Advisory Services, LLP

Yes, if you are comfortable with that, then it will be.

Kasu Brahma Reddy, Other

G scale, we are expecting anywhere between 20 to 25%. 20 to 25% is what we are currently emphasizing at conservative side.

Nageshwara Kandula, Other

EBITDA levels.

Kasu Brahma Reddy, Other

Yeah, EBITDA levels, yes, of course.

Nageshwara Kandula, Other

Now, currently, core business is 17.3% and it will slightly increase. It will increase and it will reach 20% we are expecting. Coming years.

Jameeth Jain, Analyst — Wealth Mine Advisory Services, LLP

Okay, sir, that makes sense. And on the second question, we are targeting currently 250 crores from the Z scale for FF27 in its just three months of operations. So can we expect 1000 crores in full year of operation? Is that a correct understanding? And what would be the capacity utilization in that?

Nageshwara Kandula, Other

The total business growth, we will guide you in the fourth quarter. We'll get you an FI 28 watt is going to happen based on our order book.

Jameeth Jain, Analyst — Wealth Mine Advisory Services, LLP

Okay. Okay. So sure. So what peak revenue can we just expect from this current full lack of capacity, if you could add some color on that?

Kasu Brahma Reddy, Other

As Mr. Nagesh Rao mentioned, I think we'll definitely guide, but currently we see huge potential, and the requirements are big, and opportunities are very big, and we'll definitely guide you at the appropriate time.

Jameeth Jain, Analyst — Wealth Mine Advisory Services, LLP

Okay, thank you for taking my question, and congratulations on the great set of results. Thank you.

Operator

Thank you so much. Thank you. Participants are requested to use a race and function to ask a question. As we don't have any further questions, I would request Mr. Nagesh for his closing comments.

Nageshwara Kandula, Other

Okay. Thank you. Thank you for participating. Thank you very much.

Operator

Thank you, everyone. We conclude the conference call. Thank you.

Rajat Agarwal, Analyst — Millkani Investment Managers

Thank you.