Vidya Wires Limited (VIDYAWIRES) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Vidya Wires Limited Q4 and FY26 Earnings Conference Call. As a reminder, all participant line will be in listen-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 your touchstone phone. I now hand the conference over to Ms. Neervi Asher from Asit C. Mehta Investment Intermediates. Thank you, and over to you, ma'am.

Thank you, Rhea, and good afternoon, everyone. So, on behalf of Asit C. Mehta, I welcome you all. To the Q4 FY26 and Full Year FY26 Earnings Confidence Call of Vidya Vire. From the management side, we have Mr. Silesh Rathi, Managing Director, Mr. Naveen Pachishya, Chief Financial Officer, and Mr. Suman Bhattacharya Ji, Plant Head. So, now I hand over the call to the management for their opening remarks, which will be followed by Q&A. Over to you, sir.

Good afternoon, ladies and gentlemen. Thank you for joining us for Vidya Vaya's second investor conference call and our first since concluding a full financial year as a public listed company. This call marks a landmark moment in our journey. Since our half yearly one, first half, financial year 26 update, we have remained focused on disciplined execution and capacity growth. I am pleased to report that we have closed the year with significant operational progress and continued strength across our core business segments. As we reflect on the financial year 25-2026, the Indian economy has demonstrated remarkable structural resilience despite global geopolitical headwinds. With the union budget for 2026-27 providing a strong impetus to capital expenditure, we are witnessing an unprecedented thrust towards infrastructure, renewable energy, and the Make in India initiative. As the construction and power sector continue their rapid expansion, the demand for high-quality electrical and industrial winding and conductivity solutions have shifted from a cyclic requirement. to a structural necessity. We believe in growth through efficiency. Over the past years, Vidya Vyas has moved from being a participant to an active driver in the winding and conductivity sector. We have achieved this by maintaining a capital-efficient balance sheet, optimizing our working capital, and maintaining low leverage to ensure that every rupee is deployed towards strategic manufacturing expansion. The successful completion of our IPO in December 2025 was a vote of confidence in this philosophy. I am pleased to report that we have stayed true to our promises, ensuring our core operations remain insulated from base metal price volatility through disciplined procurement and inventory management. The LQ milestone was a significant strategic milestone in this year. We launched LQ Industries with new wings. While we have commenced manufacturing on February 7, 2026, I want to emphasize that we are currently in a phased ramp-up period. By design, we are not yet at full capacity. This measured approach allows us for meticulous process stabilization and quality benchmarking, ensuring our new product lines to meet stringent standards before hitting maximum volume. This expansion is moving in lockstep with your customer onboarding, ensuring that our growth remains both sustainable and operationally sound. LQ is the physical manifestation of our intent to move up the value chain. With this facility now operational, we have successfully introduced several new specialized product categories, which includes aluminum paper-covered conductors, aluminum enameled wires and strips, PV round ribbon, multi-paper-covered copper conductors, and copper busbars. This allows us directly address high growth segments such as in EV infrastructure, transformer manufacturing, and renewable grid connectivity, etc. As we look ahead to the financial year 2026-27, the outlook for our sector is increasingly positive. Industry research indicates a rebound in India's power demand growth to 5 to 5.5% range, driven by data centers, industrial consumption, and the ongoing energy transition. For Vidya Wires, financial year 27 will be the first full year where we hopefully realize the consolidated benefits of our expanded capacity. Our focus for the coming year is clear. Capacity utilization is scaling up and production at the LQ facilities align with our output and with a strong market demand for our new product categories. Leveraging our new specialized categories to expand our presence within our existing base of large-scale institutional and global clients. Maintaining our lean cost structure to ensure that volume grows and translates effectively into margin expansion. We have the capital, the expanded capacity, the manufacturing momentum, and demands for our products. We remain committed to our goal of delivering sustainable long-term value to our shareholders. Now, I will hand over to Mr. Naveen, our CFO, to discuss the audited financial results in detail.

Thank you.

Thank you, Seleshe. Good afternoon, everyone. I will now walk you through our audited financial results for the year ended, March 31, 2026. This has been a transformative year for Vidya Vies, characterized by a significant strengthening of our financial position, following our successful listing in December. For the full financial year FY26, our revenue firm operations stood at $18,396.4 million, representing a 24.2% growth over the previous fiscal year. EBITDA reached $57.8 million with a margin of 4.66, an increase of 35 basis points, year-over-year improvement. Pat has reached 576.1 million. These figures reflect the underlying resilience of our core business and our ability to maintain healthy margins despite the raw material price volatility observed in the global markets during the later half of the year. A key priority this year has been the discipline and phase deployment of our IPO proceeds. As on 31st March, we have remained focused on ensuring these funds are utilized to drive high-impact growth. We have deployed a significant portion of IPO proceeds to fund the capital expenditure required for expansion of Alco Industries. By phasing this expenditure, we ensure our capacity scales in tandem with our operational readiness. In line with our commitment to a lien balance sheet, we have utilized 100 crores to repay our working capital borrowings, successfully reducing our interest burden and strengthening our credit profile. As Salishji noted, the commencement of manufacturing at Alku's new plant on February 7 is a vital milestone. We have successfully moved from the investment phase to the operational phase for this subsidiary. With production now underway, we have introduced specialized higher margin product categories, including enameled aluminum wires and strips, aluminum paper conductors, PV round ribbon, and multi-paper-covered copper conductors. These offerings allow us to target high-growth segments in the EV and renewable energy sector. The infrastructure is now operational and is already contributing to our consolidated manufacturing output. To protect our margins, we have continued our strict back-to-back hedging policy for copper and aluminum procurement. This risk management framework ensures that our financial performance remains insulated from certain commodity price rates, allowing our results to reflect our manufacturing efficiency rather than market volatility. In summary, Vidya Vyas enters FY27 with a strengthened financial position, a reduced interest burden, and a newly operationalized manufacturing base. We believe this foundation set a solid stage for the year ahead. We are now happy to open the floor for question and answers session. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question is from the line of Mahesh Bendray from LIC Mutual Fund. Please go ahead.

Hi, sir. Thank you so much for the opportunity and very impressive performance in FI 26. Sir, what was the volume number in terms of metric ton for the FI 26?

Good afternoon, sir.

So, by volume-wise, our company has grown by 6.5% or so, and the revenue growth is around 17% to 18%.

So, volumes will be roughly around 16,000 metric ton.

No, volume will be around 18,024 metric ton.

18,000. Okay.

Yeah.

And, sir, the new plant that has come up, what has the contribution has been from that plant?

So basically, in February, mid only, I mean, the first week only we have started, and we have done some 800 metric tons approximately, volume from LQ Industries.

So how much time will we take up to scale up this plant, or is it fully...

No, so currently, I mean, we are already, we have added some 6,000 metric tons of capacity, and the remaining 8,000 to 9,000, 9,000 tons or so will be added over a period of around September or October or before Diwali, we are expecting to operate at 100% capacity planned in LQ.

So, by Fy26, the total capacity available with us will be what, 30,000 more than?

So, we will be close to, by Diwali, we will be close to 35,000, 36,000 metric tons of capacity, which was planned.

Okay, okay. So, that means the volume growth should be very strong for next two years.

Yes, definitely. We anticipate a good strong volume growth in the coming time.

Sure. And, sir, you mentioned that we have entered into this expansion with the valued parts, valued products. So the EBITDA per turn will change for us meaningfully?

Yes, it will definitely go up. Already in the last year also, our EBITDA per metric ton has improved, and we are expecting that this will be better considering a new product addition. And of course, our selection of the new product has also been on the same motive that the EBITDA per metric ton needs to be improved.

Sir, last question from my end. Sir, what are the CapEx plans for next two years?

So, sir, currently, we have already been doing the major expansion. You can understand that from around 19,000 metric ton capacity, we are planning to make it 36,000 metric ton capacity. So a good volume growth, we are already planning. So I think we are sticking to this and make it more operational and efficient performance with the added capacity. And whenever the board decides further to expand the capacity or put the new investment, we'll definitely let you know.

Thank you. Thank you so much, sir.

Thank you. Next question is from the line of Mihir Manohar from Trust Mutual Fund. Please go ahead.

Yeah, hi. Thanks for giving the opportunity and congratulations on a great set of numbers. I mean, you know, 50-50% growth, quite stronger growth. Just wanted to get a stand on the raw material side. I mean, some of the companies are reporting contraction margins. We also had contracts and margins. Do we see, I mean, the copper prices going up, aluminum prices going up, acting as a headwind for us on the margin side? How to understand that?

Sir, basically, the copper prices or the aluminum prices going up or down really does not affect much on the margin terms because our model of business is completely back to back. So I don't think any increase in the price of copper or aluminum. It will be just a marginal shift here and there, but it has nothing to do in a big fashion.

Sure. Sure. So our average execution period is what? Two months, three months. How to understand that?

Execution period of.

In the sense, let's say if you receive a certain contract of certain size, then that gets executed over one month. These are not longer period contracts, right?

Yeah. So normally in our business operations, 30 days is normal standard period. Like customer first book the copper on an LME. And we also book intern with our supplier on the same LME. So it is completely hedged. And normally the period given by the customer is 30 to 45 days mostly. Only very few orders are that they give a forecast that, okay, you have to deliver every month 50 tons for four more months, four or five months, whatever. So, basically, it is a 30 to 45-day cycle where the order needs to be executed from our side. That is also on the maximum side I am mentioning. Normally, it is 25-20 days. We are probably delivering our goods to our customers.

Understood. Just one thing on working capital side, when I see OCF, so the OCF to EBITDA for last two years, I mean, last three years has been relatively on the lower side. I mean, how should we as investors see OCF for us? I mean, what are the specific measures that we are taking to improve our working capital? Because the EBITDA appears to be quite high, but the OCF conversion was on the weaker side. So just to get a sense of that.

Yes, so basically, you rightly said that our working capital cycle has been increasing a year-on-year basis, and we are taking measures to bring this down to the levels of 50 to 52. Currently, it is at 60 days of working cycle. So, we are planning to increase our credit period days and reduce our debtor days, basically. Inventory is roughly between 20 to 23 days, so this is in line with the business requirement. So there is a scope of improvement of debtor-date collection and to increase the credit pay-per-date, basically.

But is that, I mean, is the communications with the vendors and the customers, does the communication also indicate that we will be able to improve our working capital?

Yeah, we will be able to reduce this, and we are working on this, basically.

Oh, sure. Yeah, that's it for myself. Thank you very much.

Thank you.

Thank you. Next question is from the line of Praveen Motwani from Bank of India Mutual Fund. Please go ahead.

Yeah, hi team. Thanks for this opportunity, sir. And firstly, congrats on the great side of numbers.

Sorry to interrupt, sir. Your voice is really very low.

Yeah, I'm audible now.

Yes, please go ahead.

Yeah, hi. Congrats, sir, on the great side of numbers. A couple of questions from my end. Firstly, sir, Q4 revenue growth was very strong at 58%. So what were the key drivers in terms of volume growth and a better realization? So if you can just give us a breakup of these two.

Thank you very much. Sir, as I just now told, one is the increase in the copper prices in last five, six months. So this has definitely boosted our revenue. Secondly, a good capacity utilization in the last quarter. And this happens more because normally the last quarter is always better in whole country. So these two reasons are there that our revenue has gone up. And further, the capacity addition of LQ industry is also taking place. And so we have started some bit of that also in the fourth quarter. So, mainly, I would say the revenue increase is because of the copper price increased, and second is a better capacity utilization, the order flow is very good, and this made the revenue on a better side.

So, sir, what was the volume growth in Q4?

So, overall, it was like 6.5%, and I believe our fourth quarter, I will just, we will get back to you for that exact increase in the percentage.

Okay, and sir, how much of the growth came from, you know, transformers, motor, renewables, and industry specific that you can mention?

So the segment-wise,

if we see, currently we are around 51% in the basically power and transmission segment. Renewable and EV is around 7% or so. And general engineering is around 13%. The electrical is around 27%. And consumer durable is around 3%. So this is the breakup of what we are doing. So of course, the power and transmission segment, which includes transformers, so that has really performed well.

Okay, and sir, how do you see the competitive intensity right now in the industry? A couple of players are also expanding capacity. So, how do we see that over the next two years in terms of your pricing power or in terms of your capacities?

So, sir, basically competition is always there in the market. Whenever there will be a better demand in the industry, so everybody would try to increase their capacities. So, it's a very general phenomenon, and I think that the demand for the products is too good, and everybody will be having their own space. So, I don't think it is going to affect us. On the margins part also, because we have multiple product categories, and due to this, we are sure that we will be able to maintain our better margins. We don't have a single product or two product capacity where we are very hard pressed to sell something. So this will definitely give us more leverage considering our competitors.

Got it. And the last question, sir, can you just provide us a broad guidance for 27? What would be the revenue growth or the margin outlook? That would be very helpful, sir.

So, sir, Vidya Vars has been always doing, I mean, incremental growth in last few years, or rather in the history of our company. So, directly, I cannot give you any, you know, information that how much we will be able to do, but we are sure that we will maintain a good growth. Secondly, we, our new capacity addition has also come up. So, of course, you can always figure out that that this year will be also with full of growth.

Got it, got it. Thank you and all the best, sir.

Thank you. Next question is from the line of Sudharshan Padmanabhan from Ask NDPMS. Please go ahead.

Thank you for taking my question.

Sir, my question is, you know, if I look at, you know, your incremental investment in the new segment that you talked about, and specifically the renewables, I mean, I understand that renewables currently might be less in terms of the overall scheme of things, but given that we are seeing a lot of investments happening here, do we see that proportion of the business day in 2-3 years being sizable? And second is, with respect to the EBITDA per 10 or margins, whichever, you know, the way we look at it, I mean, where do we see the trajectory? I mean, we're running at around 4 to 5% here. So, would it be, you know, right to assume that, you know, at least there will be a 200-bit improvement in your incremental business assumption?

So, sir, basically, renewable is, of course, growing. The only thing is certain things have come up that, you know, the solar needs some cell domestics procurement or something like that. But overall, we can see a scenario where renewable growth is going to take place. And our good number of products are aligned towards renewable energy also. So we think that there will be good growth. Besides this, the margin, the point you have told that, so as I already given my reply that, The margins will be better as the new product addition are aligned towards the new renewable energy, the EVs, etc. So, the percentage margin will definitely be better in the new product categories. And on the consolidated basis also, it will put overall margins should be better.

Sure, sir. And the new facility that you have put up also has some benefits from the Gujarat government. We can give some more color on that, sir.

Sir, please, can you come again?

So, is there any tax benefits or benefits given from the local government for the capacity, given that there is a lot of funding?

Yes. So, there are taluga-wise different subsidy levels. So, we are basically our new unit is in the category 3, so urban area basically. But still, we will be having a GST subsidy for the next 10 years. So, this will be able to, you know, 45 to 50% of our investment, what we have done, would come as a subsidy over a period of 10 years, in plenty of 10 years, basically.

And, sir, one bookkeeping question before I join at the Q. If I look at, you know, the OCS specifically for this year, I mean, we have seen a rise in the inventory, which I would, you know, understand could be because of the raw material prices as well. But specifically, given that the newer capacity came in at the fag end of the year, would it be fair to assume that the inventory was, you know, built towards the, you know, sales that you're looking forward? And probably as we, you know, thread moving forward, say in the next two to three quarters, the inventory levels were primarily subside and probably the cash, you know, probably relatively improved. And probably move towards the 50 days. I think that's what you suggested earlier.

No, inventory levels, basically, if you see historically, our inventory levels are between 21 to 24 days. So this is when the levels that we have been able to maintain for the last two to three years. And we expect this inventory levels to be in the range of maximum we can go below to 21 days. And there was no inventory buildup at the end of the year. And we will be able to maintain these levels only going forward also. Sure.

And, I mean, if there is a scale-up, because we see that even beyond 2-3 years, there is going to be an ongoing need for energy, given that there is a lot of infrastructure. Do we have enough land to put up capacity in the existing...

Yes, we do have enough land to increase our capacity.

Thank you.

Thank you. Next question is from the line of Aditya Pal from MSA Capital Partners. Please go ahead.

Yeah. Hello. Thank you. Am I audible?

Yes, sir.

Yeah. Thank you so much for the opportunity, sir. Great set of numbers. Last part of my question has been answered, but just a couple of them remaining. So our PV round ribbon is going to really scale up. Uh, with, uh, ALCU facility. Uh, so just want to understand the value addition or gross profit per ton, how are you looking at, uh, and if you can just give me a directional view between that, this round ribbon, how does it sit compared to say a, a, a pick, a existing pick product, copper pick product, and the CTC product that we'll, we'll also be, uh, releasing with, uh, ALCU. And along with this also, if you can, Spend some time on the market opportunity for this because this is what I've heard is this is primarily an import substitution place.

So, sir, exact numbers we can definitely separately give to you. But what I believe is that PV round ribbon is totally aligned with the renewable solar modules. So, if the solar module growth is there, so our capacity utilization will be better. And of course, as I told just now, the value addition in the new product categories is better than what traditionally we had been doing.

Understood.

And CTC, and the second question that CTC, so of course, CTC is also a better substitute of paper insulated copper conductor in the entire transformer segment. So we are also coming up with around 3000 metric ton capacity in the phase one. So we are hopeful that we will be also able to garner better business in that segment. And yes, again, the margins would be definitely better in comparison to our general enameled copper wire or paper insulated copper conductors what we have been manufacturing.

Understood. Understood. And we have named multiple products in our perspective. It will be coming out with copper foils. We'll be coming out with multi-paper copper conductors. So when can we see the copper foils being launched? And what are these copper foils? So these are primarily targeting the electric vehicle industry, or this is more to do with the PCB industry?

Sir, this copper foil particularly will go into switchgear industry, transformer industry, and other applications, so not in the semiconductor or what you call this lithium-ion cell. So the product what we are going to manufacture as copper foil will mainly go to the transformer, switchgear, and other electrical applications.

Understood. No, that's that for my side. Wishing you all the very best to you, CLSG and Naveen sir. Thank you so much for giving me the opportunity.

Thank you.

Thank you. Next question is from the line of Nikhil Chaudhary from Toro Wealth. Please go ahead.

Yeah, hi. Congratulations on a great side. I joined the call a bit late, sir. So apologies if it is a repetition of the question. Sir, could you probably our capacity expansion in the Holyon subsidiary? Uh, is being built around 18,000 metric ton. Uh, so wanting to understand, uh, the new products, uh, uh, that we have the CPC, copper, coal, EV, stripes, aluminum, winding wires, what kind of asset turn and the EBITDA margins can we expect? And, uh, what is the timeline to commissioning and full ramp up?

So EBITDA per metric ton in the last year also we have improved. And as I told just now that our EBITDA percentage would be better in the new product categories. So our EBITDA per metric tons we expect to be better in this financial year. And the capacity ramp-up part, so already some 6,000 to 7,000 metric ton capacity has been already installed, and we are expecting by before Diwali, or maybe October or so, we will be in the position to entirely reach to our optimum capacity, targeted capacity.

Got it, got it, got it. So for specifically the SQs that we have mentioned in the PPT, how does the qualification work? Is it like we have already had discussions with our customers or do we have to qualify our products once we start the commissioning of the facility?

So, sir, the qualification progress is already going on. So, many customers have already visited, and they have small trial, lots, orders have also been started coming. So, this will definitely be a process, and for each product, whoever is a customer, they will definitely take rounds of our factory, they will audit us, and this process is ongoing. So, normally, any customer to start business, it takes at least two to three months to start. But Vidya Vyas being the parent company, and we already are in the market for so many years, and already connected with majority part of customers, so definitely this becomes much easier for us.

Got it. Got it. And just last one from my end. Your slide actually claims that we'll be gaining market share from 5.7% to 11.3% post-expansion. So just wanted to understand who are the top one or two players and who would we be displacing? Like if the market is growing at around 90% and we'll be growing market share. So just trying to understand who would be gaining the market share from.

Sir, it's like that we have added more capacity. So, definitely, we have to take more active participation in this competition, and this is why, because our capacity actually will be around 11%, that is what we have said, and execution also, we will be trying our best to have that market share.

Okay, okay. Thank you. And I'm new to this company. Could you just name the players that actually who you compete with? Like, probably the major players.

Yeah, so not in 100% of our products, we have direct competition with our peers. But a few of the peers namely are Precision wires, Ramratna wires, KSH International, and there are many more, but they don't compete in each and every product of Vidya wires. But yes, for 50 to 60% commonness of our product is there with them.

Got it, got it. Thank you so much, and wish you all the best, and congrats again for a very good set of numbers here.

Thank you. Next question is from the line of Ayush R. from Aditya Birla Mani. Please go ahead.

Congratulations on a strong set of numbers for this quarter and year. So my first question would be around the global landscape, and we all know that it is quite dynamic at the moment. So I just wanted to touch upon our export strategy. In one of our previous calls, we mentioned a target of around 25% for exports. I just wanted to check if you are still comfortable on track for that figure, and also, if you could just provide some color on how export margins differ from the domestic ones.

So, Ayush, currently we are at 12% of exports. of the total business volume. Yes, we are definitely targeting the international market. And our target is that we should have a balance of 75 domestic and 25% export. So we are already, you know, giving our samples and sending the details to our customers throughout in the international arena. We have expanded our marketing team also to look after the international marketing. So, definitely, over a period of time, we will see that our export percentage will also go up. And in addition to that, the margin part, so, of course, whenever somebody will try to export the material, he is expecting better margins in export because otherwise, we would always like to sell our product very close to our factory, why we should extend our arms throughout the world. So, yes, export margins will be always better than the domestic one.

Got it, sir. Got it, sir. Just continue on that. In FI25, our raw material import was around 44%. So could you just help us with that percentage of how much did we import this year?

So, import part will be always like this much percentage, maybe around 40 to 50 percent. So, we believe in, you know, managing, like we don't want to put all eggs in one basket. So, we have imports also and we have domestic supply also. So, it is quite balanced. And it will remain as it is, I believe.

Okay, perfect. So, given the current global scenario, have you encountered any logistical or social challenges?

Yes, definitely. Nobody will be left aside. So we are also part of this because the ocean freights have gone up. We are not getting many time vessels. So, this problem is there for export also, and this problem is also still continuous for import as well, but we having a wider, you know, customer and wider supplier base, so it has not directly impacted in a big way, but yes, of course, the Middle East crisis which is going on,

so everyone to some extent will get affected.

Got it. One last question on the accounting side. There was a sequential increase in other expenses this quarter from around 28 million to 83 million. So if you can just share some primary drivers behind this change and like what would be a normalized run rate going forward?

So, basically, there were some expenses which we had not considered. They have been expensed out in this quarter. So, going forward, the expenses will be in line with the revenue percentages only, and we will not see any major increase in each quarter, basically.

Okay, got it. That's all from my side, and congratulations on a great set of members, and all the best.

Thank you. Thank you.

Thank you. Next question is from the line of Ajit Sethi from Eco Quantum Solutions. Please go ahead.

Thank you for the opportunity. So sorry for repeating the question again. So my question is on EBITDA per turn as new products are getting added and the new facility utilization improves. So what kind of EBITDA per turn improvement can we expect? The reason for asking this again is that the peers operating in a similar product line are doing around 66,000 around EBITDA per turn. So can we expect our EBITDA per turn to move toward those levels over the next few years?

So EBITDA per metric ton from the previous year has improved. And we do expect that with the addition of the new product range, the EBITDA per metric ton will still improve. But as you are told that 66 our competitors or they are doing, so I cannot comment on that. Okay, we will be also in the same line to get 66 rupees per metric ton. But then we are sure that our EBITDA from whatever level we are currently operating, we will still fare better than that.

Thank you, Susan.

Thank you. A reminder to all participants, you may press star and 1 to ask questions. A reminder to all participants, you may press star and 1 to ask questions. Next question is from the line of Ashrei Seth from Ventura Securities. Please go ahead.

Hello. Yes, sir.

Yes, please.

Yes, sir. Thank you for the opportunity and congratulations for a wonderful result. So I wanted to know, can you give me an idea about the segment split between copper products and aluminum products that we are currently doing with the addition of ILQ Industries? And what realization are we looking for both?

Currently, in terms of revenue, by March 26, 2026, we have done somewhere 96% is copper and 4% is aluminium, because aluminium is actually three times cheaper than copper. So definitely the content in terms of percentage of revenue in aluminium will be less. But going further, our capacity addition is also towards aluminum. So we expect in coming time, it would be like 90% copper, crocs, and 10% of aluminum. And what happens is that whenever we discuss this percentage of 90 or 10, the copper prices are so much fluctuating and volatile. So sometimes it may come up and sometimes it may not come up. It's like that. Because aluminum and copper, in fact, both are going up, but the way copper is behaving is too high. That is one of the reasons that revenue percentage cannot be fixed.

Sir, and adding on to that, sir, what material cost split between copper and aluminium you saw, copper and other materials, if you may, sir?

Sir, value addition in aluminum would be always better than copper. May not be in the revenue, but of course, it will be better because we have to almost three and a half times more processing is to be done in comparison to copper. So the EBITDA per metric ton for specifically aluminum products would be higher than compared to copper. But normally we average it out and that is the way of looking into it.

Okay, sir. One last question on the payable days. Currently, we have payable days of two. So, are we planning to move on to letter of credit, sir, to improve working capital in the future?

You are talking about the payable side, right? Letter of credit, sir? Yeah, so actually, sir, we, our company is able to gather a better interest cost, even on the CC facilities, on the working capital. So I think we don't believe in, you know, just to improve the number of payable days and go for LC, because that adds to more of documentation and time taking process. So we believe when we are able to get a better interest rate, as our company is like a good credit rating through Crystal also. So, it doesn't make sense, sir.

Sir, and you mentioned about improving the data days. So, can you give some commentary? Sir, can we bring that down to 30s, or what range of data days are you looking at in the future?

Currently, we are at 41 days of data

as of now, and we can definitely bring it down to around 35 days.

Okay. Okay, sir. Thank you. Fair enough, sir. Thank you.

Thank you. Next question is from the line of Rajesh Mudaler from Raghav Capital. Please go ahead.

Hello. Hello. Yes, sir.

Yes, good afternoon, sir. So, I have one question on the CTC segment. So, how much it is contributing to our revenue?

So, sir, still our CTC is in the, I mean, the project is ongoing. So, we are about to start maybe September or October, probably before Diwali. So, as of now, contribution of CTC is zero. So, this will start after October, probably.

Okay, okay, sir. Sir, can you put some light on the CTC segment, how it can go going forward?

So, yes, sir. The transformer industry is overall good because CTG as a product can only be used in the transformer industry. So, that is upbeat at the moment and good headwinds. So, we see that next four to five years, our customers, they normally say that the business is good with them. So, I am sure that CTC will also be contributing in our revenue in the coming time, and we will be able to expand further also based on the requirement in the coming time. So, in the phase one, we are planning to add 3000 tons per annum capacity, and looking to the future demand, we can definitely move for more expansion.

Okay, sir. So what will be the market size of CTC segment in India and as well as in the international market also?

So, sir, I believe that, I mean, this is day by day growing. So, even currently, should be around, I believe, 30,000 tons or 40,000 tons of capacity, 40,000 tons of demand in India, and it is growing at a faster pace.

Okay. And in international, sir?

So international is very big, because almost every country has a transformer manufacturing. If you go to Europe, you go to Middle East, you go to North America, you go to Southeast Asia. So everyone uses transformer for the electricity segment. And looking at the data centers, the AI, and EVs coming up, so need of electricity will be always there. And even there are number of countries traditionally like their infrastructure has also gone old. So they are also replacing it. And everybody has to now become energy security is the first thing which each country is looking up. So I believe that the demand of CTC will be definitely good. And that is why like our company who is manufacturing a list of products, and we can offer two different requirements. So, this should surely be a good opportunity in the coming time.

Okay, sir. Thank you, sir. Thank you very much. All the best for your future perspective. Thank you, sir.

Thank you. Next question is from the line of Khadija Mantri from Capri Global. Please go ahead.

Yeah. Good afternoon, sir. Sir, I just wanted to know the volume numbers for Q4FI26 and Q4FI25 in absolute terms.

Yeah, we can provide you later on, specifically.

Okay. And, sir, are we facing any supply-side constraint for our products, like, for example, that is a dearth of enamel wire or something because of the crisis, West Asia crisis, or it is smooth?

So, madam, enamel copper wire we manufacture actually. So, our raw material is basically copper rods and copper cathodes. So, this happens to be our raw material. So, Middle East problem is not, you know, affected us. Only one of the supplier is available in Middle East, but we have another 5-6 suppliers like in India as well as in other countries. So, we are definitely not affected on the supply side. Yes, but there is like concern that the shipping frets have gone up. So also the many packing material, etc. The pricing has definitely gone up. So to a minimum extent, it has also affected, but not in a major way.

Okay, sir. And is it getting better now or is it getting worse from what it was in Q4?

I think Q4, so it has really not affected, but yes, in the coming time, because actually the war started somewhere in end of February. So it has definitely not affected the last quarter because of war scenario. But yes, of course, in the first quarter, there is definitely the whole country, whatever we are having issues, so everyone is having. We are not amongst, we are not alone, I mean, that way.

Okay, I understand. So, the other manufacturers would also be having the same issues.

Yes, yes, for sure.

Okay, thanks and all the best.

Thank you.

Thank you. Next question is from line of Aditya, an individual investor. Please go ahead.

Hi, I'm Audible.

Yes, sir. Okay.

Thanks for the opportunity. So my question is regarding this new facility. So my understanding is that we are almost doubling our capacity, right, by October of current year. So how is the ramp-up we are expecting based on the demands and what is the expectation on the ramp-up? Like what kind of utilization you can expect? In the current financial, like FY27 and then FY28.

So this will be like by end of this year, means maybe before December, our total capacity will be installed. So we may get less percentage of optimum capacity utilization of LQ industry. But we do expect that total capacity is 50 to 60% we should be able to utilize in this year. And, of course, 27-28 would be a full year where we will be completely, you know, operating at 35,000 metric, 36,000 ton capacity.

Okay, so just to be clear, sir, so you are saying that this means capacity is 18,000 odd. We are expecting 50-60% utilization in FY27 and then full utilization in FY28. Is that correct?

Yeah, I mean the optimum capacity what one can utilize is around 80% of the available capacity. So the optimum we will be able to achieve in the next year, 26-27. I'm sorry, 2728. Sorry, 2728.

Yeah, yeah. Okay. So another question I have is, so as you are introducing newer products with better margins and all, do you have any kind of a metric to track like value-added mix or something like that? Like this is the percentage of value-added mix in our or higher margin products in our business. So how should we think about the contribution of this?

So, sir, actually, we always try to, you know, push our more valued products more. But besides this, we also see that market conditions, so our, you know, product mix is good, and we have a better fungibility. So, like, 35 to 40% of our plant, we have fungibility. So, based on the demand, we try to meet. And, of course, the new products are definitely going to have better EBITDA. So, our focus is on that only. So, how to ramp up more capacity in the new products?

Yeah, I understand. Can you give some kind of direction on how this mix is supposed to change over from the current over the next, let's say, couple of years? Like, so that we get some idea on how the margin trajectory can...

Basically, the transformer industry using these products is definitely in a good side. So our aluminum paper covered strip, aluminum enamel, CTC, PV ribbon. So this will be having more impetus and more focus on this product. And the capacity utilization, we will try to see maximum on this product. So this will give us better margins. Because we can see a good growth in the transformer, renewable, the basic traditional, what you call motor, pump industry, that is quite, you know, normal. Whatever capacity is coming up is in the new products like renewable energy, windmill, solar windmill, then these railways, electrification. So these are basically moving good headwinds.

Is there any color on the quantification possible on the kind of margins these new products can get?

Basically, we, you know, we don't have, I mean, this type of different margins for different products. On a cumulative basis only, we try to work out.

Okay. Okay. Okay. Thank you, sir. That's all from my side.

Thank you. Next question is from the line of Pranav Jain from Ageless Capital Finance. Please go ahead.

Hi, thanks for the opportunity and congratulations for a good result, Saresh. Just a couple of questions from my end, sir. Firstly, can you tell me percentage-wise contribution from LQ in this quarter, if there was any?

So, sir, LQ industries, we have just now only begin, so 7th of February. So, there is a very minimum contribution from LQ industries, but 26, 27, we will be having a better contribution from LQ.

Got it. So, going forward, Q1 onwards now, we'll see a contribution from LQ also begin. Got it. Got it. And, sir, on your working capital, sir, when I see inventory plus receivables, it's around 58 days. When I compare it to your peers, some are at 75, some are at 90. Sir, how do we manage it so efficiently? What are we doing differently?

Sir, can I get your question again, please?

Yes, yes. So I was saying when I look at our working capital, only inventory and receivables, I see that we are at around 58 to 60 days. Whereas when I see our peers, some of them are at 75, some of them are at 90. So I just want to understand how are we managing it so efficiently? What are we doing differently?

So we, you know, historically, if you see, we are always having a better way to manage our inventory and also our dators also. And this kind of policy or this kind of principle has always helped us, I would say, to manage this. So if you can just take four or five years old data also, so you will always find that our inventory as well as our dators are always in control.

Got it. Got it. So that's great. So just one last question, sir. On the demand side, domestic market seems strong. Exports, how are they looking?

So, largely, last four or five years, we have seen the domestic market is better performing than the export market. And this is why, like, our share of domestic has been more in comparison to export. Like, at one, in one of the years, we were around 18 to 19% of export, but last two years, we are in 12% of exports. The reason is definitely that the Indian government has pushed the infrastructure growth, the electricity growth, the transmission distribution. So this has definitely helped to sell more in domestic also. And going further, we will discuss our target. We say that we aim towards having a mix that is 75% local-domestic and 25% export. But that can be here and there a little bit.

Got it. So as of now, at least we are more domestic-focused, so we are more or less protected in that sense with respect to whatever is happening.

Yes, only the Middle East has been affected a lot. Besides these, other countries are doing well. Not a major issue.

Got it. Thank you. Thank you for answering my question and all the best.

Thank you. That was the last question of the day. I now hand the conference over to management for closing comments.

So, do we have any last question?

No, sir. That was the last question of the day.

Right. So, thank you very much, everyone, in participating in this call of VidyaWire. We expect that in the coming calls also, you all participate, and we will always be happy to answer your queries and questions, and we thank each one of you. Thank you for participating, and it was a really good conversation. Thank you very much from Vidya Wires.

Thank you. On behalf of the Vidya Wires Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.