Ice Make Refrigeration Limited (ICEMAKE) Q4 2026 Earnings Call Transcript

Good day, and welcome to IceMaker Refrigeration Ltd. Q4 and FY26 earnings conference call, hosted by Arianna Matasko. 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-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aryan Rana from Aryana Matasko. Thank you, and over to you, sir.

Thank you, Yusuf. Good afternoon, ladies and gentlemen. A very warm welcome to IceMake Refrigeration Limited quarterly vision dialogue for the fourth quarter and financially are ended 31st March, 2026. IceMake Refrigeration Limited is one of India's leading providers of industrial and commercial refrigeration solutions. Serving a diverse range of industries through its comprehensive portfolio, spanning cold rooms, commercial refrigeration, industrial refrigeration, transport refrigeration, ammonia refrigeration systems, and PUF panels, and cold storage infrastructure and light cooling solutions. With the presence across India and export to multiple international markets, ICEMAK supports critical sectors, including food processing, agriculture, pharmaceuticals, healthcare, hospitality, retail, dairy, seafood, logistics, and cold chain infrastructure. We appreciate the presence of investors, analysts, shareholders, lenders, business associates, media analysts, representatives, and other stakeholders who have joined us today. The objective of today's session is to provide transparent communication around the company's financial performance, strategic initiatives, business outlook, and long-term value creation roadmap. Before we begin, I would like to remind everyone that certain statements made during this discussion may be forward-looking in nature and are subject to uncertainties and assumptions that could cause actual users to differ materially from those expressed or implied. Please refer to the company's regulatory filings for a detailed discussion of these factors. Joining us today from the management team is, and I welcome Mr. Chandgambi Patel, Chairman and Managing Director, Mr. M. Srinivas Reddy, Chief Executive Officer, Mr. Nikhil Bhatt, Vice President of Strategy, Mr. Ankit Patel, Chief Financial Officer, last but not least, Mr. Munda Desai, Company Secretary and Compliance Officer. I now invite our Chief Executive Officer, Mr. M. Srinivas Reddy, to share his opening remarks. Over to you, sir.

Thank you, Aryan. Good afternoon, ladies and gentlemen, and a warm welcome to all those participating in the call today. It's a pleasure to address you for my first earnings call as the CEO of the company. FI26 has been a year of strong growth momentum. Strategic execution, and capability building for ICEMAK, resulting in a record revenue performance during both the fourth quarter and the full financial year. The growth was broad-based across key consumption sectors. One of the key highlights of the PI26 performance was the strong traction witnessed in our newer product categories. Especially the chest freezers, VZ coolers, and continuous panel businesses. These businesses have gained very encouraging market traction and acceptance and are emerging as the important growth engines for the future growth of the company. During the year, we made deliberate investments in manufacturing infrastructure, channel expansion, leadership capabilities. Product development, warehouse, network, technology, and systems, and organizational core strengthening. These investments are intended to build future-ready capabilities and create a scalable platform for sustainable growth over the coming years. While some of these strategic investments, along with a few one-time regulatory and growth-related expenses, I've had an impact on near-term profitability, but they're very important. Building blocks for strengthening our competitive position and unlocking future value creation. As we look ahead, our strategic priorities remain very clear. We'll continue expanding our integrated cold chain product and solution portfolio, scaling high-growth product categories, strengthening our distribution and service network. Improving operational efficiency and deepening our presence across domestic and international markets. Our objective is very simple and clear. We want to build a future-ready refrigeration products and solution enterprise that delivers sustainable growth, operational excellence, customer delight, and long-term value creation for all stakeholders. With that, I will now request a Chief Financial Officer. Mr. Rankin Patel, to take you through the financial performance for the quarter and the full year 2026.

Thank you. Thank you, CEO, and good afternoon, everyone. I will briefly walk you through the company's financial performance for Q4 FY26 and the full financial year FY26. For the fourth quarter ended March 26, I. Smith reported consolidated demonetism operations. At Rs. 255 crore plus, representing a robust 41.8% year-on-year growth compared to 180 crore reported in previous Q4 F5.25. On a sequential basis, revenue increased by approximately 66.8% over Q3 F5.26, reflecting strong order execution and project delivery during the quarter. For the full financial year FY26, Consul revenue stood at 668 crore plus, compared to 479 crore in FY25, registering a growth of approximately 39.3%. Moving to profitability, our EBITDA for Q4 FY26 stood at 21.77 crore, while EBITDA margin was 8.5%. Portfolio. Fy26 EBITDA stored at 46.04 crore and EBITDA margin at nearly 6.9% compared to 9.1% in previous years. Profit after tax for Q4 Fy26 was 10.12 crore and full-year tax stood at 5.13 crore. The moderation in profitability during Fy26 was preliminary due to investment as even Explained by a few of our investment in building multi-year capabilities, strengthening future-ready leadership, some of the costs related to growth initiatives, there were some warehousing expansion and distribution networks, some brand building and market development activities were carried on, some of the energy labeling transitions, BIS compliance, that was one time. And some other related expenditure related to labor law, compliance was also there, too high depreciation was also there because of our past capex. This investment was strategizing in nature, aiming to build a long-term growth set-ability. Few of the one-time expenditures were somewhere around 4 crores. We are aiming for 1,000 crores top-line in near future. So, capacity building and market penetration is very essential at this stage, although the board has recommended a final dividend of 2.25 per equity share, subject to shareholders approval. And overall, we remain confident about company's financial strength, balance sheet position, and liability to capitalize on emerging opportunities. With that, now I invite Mr. Nikribag, Vice President's Strategy, to provide an update on business development and growth initiatives. Thank you.

Thank you, Ankitji. F526 was an important year for Icemec as we strengthened our market position, expanded our product portfolios, and built a stronger foundation for future growth.

Our growth was broad-based across geographies. The western region remained our largest market, while the northern region

emerged as the fastest growing region. The southern and eastern regions also

deliver healthy growth, reflecting increasing acceptance of the high-spec brand across India. Beginning the year, we continue to strengthen our customer reach and market presence. We expanded our retail footprints through new brand outlooks in India. Thank you. Looking ahead, our focus remains on expanding our integrated refrigeration and cold-chain solutions portfolio, scaling new product categories, strengthening distribution and service infrastructure, improving operational efficiencies, and increasing our presence across domestic and export markets. With a diversified product mix, growing market opportunity, strength and leadership as a healthy order book of around 237 crore in line, we believe IHB is well positioned to deliver sustainable growth and create long-term value for all stakeholders. Thank you.

Should we start a Q&A session? Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch on 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'll wait for a moment while the question queue assembles. Participants are requested to please ask question in Hindi. First question is from the line of Kanish Gupta from SS Family Office. Please go ahead.

Hello, sir. Good afternoon, sir. I'm going to ask you a little late to join us. I'm going to ask you a little bit about the call from Chandrakant, sir.

Hi, sir. Yes, I am.

Sir, sir, you had a comment on your question that 1% will come in Q3 and then in Q3, Q3 has been told in the range of 7.5 to 8. But ultimately, it has been a 6.5. So, sir, did you change your check before guidance and the end outcome is so different?

I will explain to you in

Q3, our guidance was 7-8% of our guidance. I was thinking that if we have to do an aggressive expansion, then we engage in the channel and network distribution, and invest a little bit more in the cost. Because this new vertical has been hardly just in the first year of operations. So once the network is established, this is very essential to take a lot of momentum. Thank you. I mean, we had a lot of costs for the capability building, distribution and network expansion, plus further incentivize. We also had a lot of schemes. So, we thought that if we look at the profitability of our 1,000 crore or going forward object, there will be a little issue. Because this network expansion in the new verticals is quite essential. So, we invested in that capability. This is an expenditure for future growth. If you have to develop a business, then you will be able to develop a business. And quarter on quarter or year on year's profitability will be a bit difficult to see it. Plus, we have done a single time cost of 4 crore. That is one time in nature. In that regard, the new wage score... We had an expenditure. We had 1.5 crore provisioned in the past year, which was 30 lakhs. So, there is also some one-time cost, which we had exact provisioning. Because this provision was in between the years, in November or December. So, there is also a little impact on that.

Sir, if you had a EBITDA margin of 7.5 to 8 percent, do you want to update that?

Sorry, how many are you? I'm going to go to the call.

I'm going to go to the call.

In FY27, we think that our network has expanded, we have increased in a couple of times, the price has increased in a couple of times. Overall, the selling price of every model has been 10 to 11 percent. So, we are focusing on the margin, and we think that we expect the margin from 8.30 to 8.30 to 8.30. Just to explain you more, 4 crore car expenditure, that is one of its nature. If we neutralize this EBITDA margin, nearly about 7.5% EBITDA is generated in the current financial year. If I talk about the next financial error, then with this price height and scale of increase in our top line, 1% of EBITDA is not much more than challenging. That is well in the range, and we have defined it in phase-wise manner, because in year 1, year 2 and year 3, we will slightly improve EBITDA margin. So that's the performance of that strategy.

Okay, sir. And, sir, the other question is, this price hike also has been happening. So, sir, 40% of your revenue growth has been happening in FY26, and in FY27 and FY28, you are giving 22 to 23% of the top line guidance. So, sir, can you tell us, for a while, what is the trajectory going down in the revenue growth?

As you can see, in the last year, we have nearly about 39% growth. Year-on-year. And going forward, you are saying that in coming two years, our growth trajectory is down. Am I correct?

Yes, sir.

As you can see, our growth rate was near about 25-20% of our growth rate. And in 2017, we announced our 1,000 crore target publicly. Next year, we have 8,000 crore top line project. That comes to near about 27% growth. And with growth, we will also better the margin. Thank you. So, we will target the bottom line going forward. So, I think we will be comfortable in the 25-30% range, which we will be able to achieve easily.

Sir, this is your 25% conservative guidance.

I'm not going to say conservative. After 20-25 or 30-30 years, it was already a big waste. Already, our traditional vertical manufacturing capacity is 85-90%. So, there is no scope. There are two new verticals, which we have done 40% in the current year. There is a good scope. Today, we will change the product balance in the traditional market. We will earn 600 CRs in the top line revenue. In short, you would like to say that 850 or 1000 plus is conservative, but after that, there is also a challenge. It's not easy, it's 22% or 22%. But we have confidence that we will target the growth of the water line, so when we have two targets together, we will not be able to work with the top line pressure, but we can improve and improve and better.

Sir, base effect is necessary, but we are relatively small participants in a very big market.

No, see, growth possibilities and momentum will remain. Our existing pending order book is around 230-237 crores. So, our order book is ample. Growth possibilities are also more. But what we think is that the target we will do, like the project business, we will do a minimum margin, we will do a little aggressive. There's a network expansion, a geographic expansion. It also takes some time to do it. So, relatively, we feel comfortable that we can achieve the short-shot. We don't want to achieve any over-ambitious, but the growth rate is not so difficult. Year-on-year, we can see that we can achieve the range of 25-30.

Okay, sir. Sir, our question is going to be, I'll get back in the queue. Thank you.

Thank you.

Thank you. Next question is from the line of Tej Patel from Niveshaib. Please go ahead.

Hello. Am I audible, sir?

Yes, please go ahead.

Hi, sir. Congratulations on a good set of numbers. Sir, is it possible to provide split for business segments for this quarter? Or what's the split for the full year? Then you can provide with these numbers? Yes, sir. Thank you.

The coal room has around 42% of the contribution. I'm talking about the full year. Industrial refrigeration is 3%. Traditional commercial vertical is 14% of the contribution. Transport refrigeration has 6% of the contribution. Good morning, everyone, and welcome to the call. Continuous panel is 14% and new commercial freezers PF line is 12%.

Okay, sir, I have told you 12% of the commercial and the continuation of it is really sorry.

Sorry?

What number do you call the continuation of it, sir?

The continuation of the panel is 14%.

Okay, and the new commercial ones is 12%. Yes.

And sir, if it's possible in Q4 or full year, how much EBITDA margin would be in the new business, or GP level, plus EBITDA margin, if you get a split, that would be quite helpful. Just for the new business.

EBITDA margin is a little difficult to get out of the split. But the new capability we developed has been developed in the new verticals. So traditional business is the margin of momentum that we had in the past. Just in the new verticals, we have done a lot of networking and expenditures in the new verticals. The benefits of this new financial year and going forward are going to be able to get us. Thank you very much. Thank you. Understood.

And sir, I would like to say that we don't have a break-on at EBITDA level. We are at loss for the new business.

Specifically, one vertical will remain neutral and the other vertical is also positive. In EBITDA level, there is no loss at EBITDA level.

Okay. Okay, so almost, you know, break-even, what's going on in the continuous panel, what's going on in the continuous panel?

The margin of the continuous panel is near about 14-16%. And in the commercial freezer, we had a little incentive in this time. Thank you.

Great, great. Perfect. Sir, my space was following that of course you said the reason that margin increases that is given, but let's say if this is 21-22 kaka, which is 25-20 kaka, then this is a margin improvement. Can this margin improvement also come at gross margin level because next is the sourcing, but it's good at scale. Let's say, you have taken the price increment and almost our full-year operation will be cut in the dealer margin. So, there is a margin improvement on the GP level, or next year, the whole margin improvement I expect because of higher utilization. In this new business, sir, how does revenue numbers float up to EBITDA and what are the reasons? If you can take time on this and explain, how will this conversion happen?

So, when we talk about price height, we've already increased the price in the new vertical. In general, we've increased the price in the vertical. We've increased the price in 10 to 11 percent. So, there is a sphere of operation. Naturally, we need to position the market. How does the product come from this product? How does the acceptability of the market? There are many services, complaints, improvements, requirements, because there are a lot of costs. We have had this pay and no complaints. So, the quality of the customer and the quality of the customer is good from our expectations. So, at this stage, the dealer also has confidence that he can trust these products. And now, our penetration has increased, we have done a price increase, and we have kept some incentives in terms of expenditure. We will go in a little controlled way, because in the first year of operations, we have felt a little aggressive stand. So, price height will also come. I had 4 crore expenditure in one of the types of 4 crore, there will also be control. Second, we have bought the premises in our own financial year. So, there will be more than 55-60 lakhs in the rent. So, there are multiple things that if we talk about profits, then we can increase in different ways.

Perfect. Sir, I am really sorry, if you think I am going to repeat it, my question is that, of course, the measures that you said are all major impact on the operational level. I'm going to say that the GP margin that we are doing is 13-14, the continuous panel, can we go next year to 15-16%? Because, again, high realization is one factor, and maybe, let's say, procurement is going to be better. I'm going to say that the GP margin that we are doing is 21-21 and 13-14. Is there an increment possible, or if you think this is the maximum in GP, the improvement will come, let's say the utilization will come, but the one of the next year will come. If you give an explanation on GP side, that would be helpful.

Hello. Hello. We have a room of 1.5% of the margin improvement in the gross level.

Okay, okay. And this is for Contra Divisants or Continuous or Commercial? We can't do

both of them because in the promotion of the first year, if we increase the price, then we will contribute to the gross margin. May he direct his contribution contribute karega. The operation cost and there is a lot of cost, but when we talk about the gross margin, we talked about the first process, and we studied the computer and studied it, and we will do it. We will do it, and we will commit it, and we will do it.

Great, great. Sir, thank you so much for this again. Sir, if I reverse calculation, then almost our new facility is operating at about 55%, 60% utilization, right?

The current year, right?

Yes, yes.

Yes, 60% is correct.

Perfect, perfect. Anki ji, the next question is that if, let's say, the commercial division and continuous final, although, let's say, the major cost of your material is in both, but if I talk about employee expenses and other expenses, how much will the fixed-nature expenses be? Let's say, the width of utilization is almost same.

So, we have our labor expenditure, which we have kept and kept, there will not be a lot of change. Even some things we have seen in sales, but we have kept and kept the capabilities of the individual level. So next, if you look at the majority of expenses, let's talk about transport or a few direct expenditures, so it's very variable. The rest of the employee-related expenditures will be fixed.

Okay. Got it. So you will be almost fixed on the employee level. Maybe others are just a variable portion.

Right.

Understood. Great. Great. Sir, one more question. I just wanted to understand that. That is also, of course, a very good thing. We have grown really well in the new commercial division. But, sir, this growth, I was just looking at industry numbers. Overall, industry is bigger, but that is very good for us that we have grown. I just wanted to get and understand how it is. Is it because our number of distributors in last year has increased by the same distributors?

So, we are a new entrant in the market, I think that's one reason that I think we could probably get that initial interest and traction, and plus we have an excellent brand equity in the Western region, you know, our... Feeding has started from Western region, so the customer's confidence that IceMake brand is pretty good. So I think that enabled us to place the freezers and busy coolers in the market at very effective numbers. Okay. So, you're right, while the industry has de-grown, not de-grown at least at the same level, but we managed to, you know, get good numbers out of this business because we are the first player. Obviously, there's an interest in the new player coming up and that's from a reputed brand.

Right. Yeah. Do you see this demand continuing? Let's say we have been almost two months into the next financial year. How has it been the demand? Because let's say the initial traction has come. How is the demand right now? Are we getting more incremental business from the same dealers? How is the scenario right now?

No. So April and May, we have seen a good traction, and we'll have to watch and wait the June. And we hope to continue the momentum. And if anyway, you know that our base is low. So, obviously, we will definitely post excellent growth in this business.

Got it. Got it. Perfect, sir. Thank you so much. I will join back again in the queue. Thank you so much.

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 Raj Agarwal from CJ Shah Family Office. Please go ahead.

Hello.

Hello.

Thank you for your opportunity. We have done a case of capex. Then we were planning another big capex. So, sir, what's the timeline? This will be like a green field, you will acquire something. How do we fund it?

Actually, there are various things and considerations. We haven't finalised it yet. How do we go about it? So, once again, there will be an update or crystallized, then we will be able to answer it perfectly. Now, we will not give you an update on that.

Got it sir, got it. And sir, now we have basically brought two new products in the market, PF panels and commercial freezers. Sir, any other product categories in your mind that you are planning to add? Thank you.

No, it's not yet because we need to have a basket in our reposition. And I think that the existing product has become a little more strengthened. Because there is a lot of scope of geographical growth in India with logistic costs. We will not end the territory. We will focus on the other territory.

Good morning, sir. Superb, sir. And sir, one question was on this quick commerce, sir. Can you tell us about what we have in this quarter and this year revenue from quick commerce?

In this financial year, we have come to our quick commerce with 13% of the top line contribution.

Correct, sir. Near about 78.

Near about 79 crore.

Last question. Sir, this is a subsidiary in Chennai and then IceBest in East. So, we can say that basically, you know, what revenue target are you trying to do from FI-19. Directionally will also go, if you answer it.

In full financial year, the top line of 43 crore in bharat has generated. Our main 100% subsidiary. In the next financial year, we expect the top line in the next financial year, near about 50-55.

Okay. EyesBest?

EyesBest, we are now reviewing its top line about 3 crore. So, we are keeping it under the review, how to grow it in the next year, but the top line of 4 crore next year will be renewed.

Got it. Got it. Those were my questions. Thank you so much.

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

Hi, good afternoon. Mr. Patel, my question is, what is the cost per unit? of your cold room, your commercial refrigeration, and your refrigeration products.

Ticket size, unit cost.

How much cost is it? One unit or any cost?

This information is on the table. Okay.

I have to tell you.

I mean, you talk about ticket size.

Per unit, per unit, per unit.

Okay, I think you're talking about the average selling tickets, right?

Yes, per unit, per unit, per unit.

Our maximum 38% revenue from R&I is a modular poolroom. It's 3,500,000,000 average. Our traditional commercial is 50,000 to 75,000. Refreated one, 3-5 lakhs, industrial, 3-5 lakhs, continuous panel, average order size per site per order 30 to 50 lakhs, commercial, individual ticket size, pocket product, 16, 17, 100,000.

Okay. Mario, with your question, I'm checked. What is your order book? Tomorrow, order book soon, sir. Wrong. You have to launch a new product. So at that time, you had put up some trade discounts and all that. So have you grown over that trade discount and now have you increased the pricing out there? So, my increase is pricing, so, and the Bawla plants, the products, so much.

Yeah, so being in the first year of operation, we definitely had the aggressive pricing to penetrate the market. Now the entire network is stabilized, and we will be able to get the benefit out of our stabilized network in the coming years, for sure.

So have you increased the pricing?

Yes, of course. We have done two rounds in set with the commodity inflation, and that's a continuous process we follow anyway.

Now, the thing is that you have always been talking about the top line, top line being 1,000 crores, you are trying, that's your target. So if you are talking of the top line being 1,000 crores, what do you think the bottom line would be?

So, EBITDA guidance has been in the range of 8 to 8.5%, but we even, you know, would work internally to stretch up to beyond 8.5% also. That's been the work that we will get on this year and next year.

And for the talk line, we are planning maybe we can be near or in a double digit.

Okay, that's nice. And tell me one thing, if, I mean, with the numbers that, the numbers were not really so conducive to your dividend. So what was the thought process of giving a dividend?

Basically, if you look at the dividend, investors have the expectation that what we have given, we will continue. And from the credit point of view, there was one of the planned things that we have hit on the margin. Why will we generate any profitability, or why will we not be able to generate any future profit? I mean, there is nothing like that. We feel that profit generation from the existing business or vertical, that was pre-decided. It was our strategic call. Going forward, we will get more of a margin. Thank you. One of fear is that we will disturb our past and dividend track record by the investor's confidence, or our profit-generationality, or any doubt, which we do not. That's why we have kept the past and track record.

Okay. So, let me tell you, the management guidance is coming to you. So, would it be in the range of this year, next year or so in 2027? Or would it be stretching to 2028? I got the point what you're saying. Thank you so much, and all the very best to you all.

Thank you. Thank you. Next question is from the line of Mehul Panjwani from 40cent. Please go ahead.

Sir, thank you so much for the opportunity. Sir, can you break it up, how it will be spread across the 2Rs, H1 and H1?

The next FY20 term, we have a guidance for the next FY20 term, and the next FY20 term, we have a guidance for the next financial year, and the next FY20 term, we have a traction for the next FY20 term. Across the vertical. So, I think that call room business should, you know, contribute somewhere around 38 to 40 percent with that increase top line. Industrial refrigeration as usual 2 to 3 percent of the top line contribution will be done. Commercial, traditional commercial vertical is around 10 to 15 percent range. These are our traditionally top margin-contributing verticals. We are looking at 5-7% of the transport refrigeration range. Ammonia, along with the project, can contribute somewhere around 10-15%. And the new vertical, continuous panel and commercial freezers, we are looking at the range of 15-20% in both of them.

Thank you. How would you, would H2 be better than H1?

Traditionally, we see that H1 is near about 40-45% of the contribution, and the rest of the contribution is near about 55-60% H2. That momentum will be made. If we see that in Q1, our order book is quite strong. Our two months of performance is also quite good, very good, I guess. So, I think that our pending order book is the same, and guidance is the same. So, in self-execution, we are quite confident.

Right, sir. And we have already said that we have already 300 crore.

Yes, 237 crore. Right.

Sir, how are you positioned for the rest of the order? Because, you know, if you want to hit two 850 crores, how are we placed?

Our generally running order book is a cycle. So, like some orders that come in one month, we take a delivery in three months or next month. So, on and average, every month, there are 60-60 crores or odd figures of orders. We also have delivery orders. And the orders of projects are like 6 months, for example, the wasting period of 6 months. The rest of the things are, you know, orders. Every month, there are orders of orders. So, our monthly order book is good. And our funnels are, we have many inquiries and protections, there is a perception of the industry that we convert in order. So overall, the industry is quite positive.

Right, sir. Sir, Maafit, I will ask you, I will tell you that we have a repeat customer, and we have a fresh set of customers every month.

A lot of customers will repeat, repeat, same customer repeat not yet, but they have references to their customers. Site goal ratio is 40 concerns, 60 concerns. Thank you. We also have a recommendation to our local company that is a good company after self-service. So, our focus is the same, that our customers and customers have a good relationship to maintain.

Right, sir. Thank you.

Sorry, do you want to talk about the other thing?

Yes, yes, the other thing. I mean, we have some raw materials, gas supplies, or such an impact which can impact very heavily.

Yeah. So, you know, the VOD impact is obvious in any supply chain issues. So, one could be an availability, second could be an enterprise. But I think we are being able to mitigate the impact of the VOD, especially the availability side. So, we did some rebuying and front-loading of the raw materials. So, that helps us save the situation. So, we're not really worried about the availability impact. But you rightly said that the impact on the price, especially the inflation side, may be there. Okay, so...

Sir, is the raw material already exporting, sir?

No, so this is the raw material. Yeah, raw material which we are taking is essentially the chemicals, puff chemicals, and the steel anyway is Indian material only. We don't import steel, but compressors is important. Some of them are Indian. So, the impact of supply chain comes on this broadly at these three, four categories.

And, sir, would we be able to pass on the price price to the customers?

Yeah, we've done it already. In fact, in the month of April, first week, we have done the price as to the market.

Right. Sir, one of the gentlemen asked the question earlier that how much of order book is from e-commerce. So, what does it mean? Are we supplying to people who are in the e-commerce? Can you just throw some light on this?

So, I mean, you know, all the e-commerce players, they build these dark stores, okay, and the dark stores required the cold chain equipment in terms of the cold rooms and some of the reposition equipments placed to be able to serve their customers. So, the business comes from that particular demand of QCommerce.

Right, right. And how much of our businesses from the cold chain required for the e-commerce?

So, we managed to get about close to roughly 30 to 14% of our last year top line from a QCommerce segment.

Oh, and I'm sure that this will increase in the coming years.

Yeah, so our effort will be to increase our share of value from these customers and also adding more customers. So, our efforts are there to grab higher shares from the QCommerce segment.

Right, sir. Thank you so much for answering all the questions and wish you the very best.

Thank you. Thank you. Next question is from the line of Mahesh Atal from Barrier Investment Advisor. Please go ahead.

Sir, what benefit or incentive does a dealer see when he buys a commercial freezer from your company rather than buying it from the likes of Volta's or Western's? Because I could see that there is a lot of traction that you are getting on the ground from the tier 3 cities also. So, if I may ask you what is the incentive that dealer sees in buying your freezer?

So, gentlemen, that depends on the market-to-market, but if I have to give you a particular, simple, typical case, the dealer incentives span from the discounts on the product pricing itself and some discounts in the form of a marketing promotion scheme. Some incentives in the form of the brand promotion itself. So we across the country, we've also developed the brand shops to be able to promote.

The question is a little different. What I want to understand is, when I decide to buy a freezer, why should I buy Icemake? Why not Voltas or why not Western? What does a dealer deal that buying?

You're asking about a USPFD product, right? Is that the question, right?

Kind of, kind of, yes, yes.

Right. So, you know, you understand that we have a long pedigree. We are about 35-year-old in the company, and we are pretty strong in the Indian market in terms of our brand salience and then reliability of the product range. You know, we are number two in the cold room space, so that gives us the right to win in the customer mind. So I think that's the reason probably our products are well-tractioned in the market.

At price point level, are we similarly placed with the brands, with other brands?

More or less, it depends on the market. For example, in Western markets, we are less more or less the same, but in the markets where we want to penetrate, probably our price points will be slightly lower in the competition.

And on the panel side, I think when we started this business, we said there's a lot of demand that you see on the panel side. So is that statement still hold good in this environment?

You are saying that continuous panel business, how we see the demand, right?

Yeah, I mean, when we started this, we were thinking that they are on the western side and maybe for the eastern side and all there will be huge demand. Are we still on that statement only that there you see the demand still to be very active?

Yeah, absolutely. Yes, our underlying assumptions when we set up this plant continue to remain whole good.

All right.

Thank you so much.

Thank you. Participants, please limit yourselves to two questions for participants. Should you have a follow-up question, please rejoin the queue. Next question is from the line of Shashi Ranjan from Anandan Capital. Please go ahead.

Good afternoon, sir. Thank you for the opportunity. Two quick questions. Both in ammonia vertical and the ROC that we are expecting going forward in next one year. Thank you.

Projects in ammonia business, we are targeting, our traditional target is also not exceeding 20% of our top line, but we see that maybe near about 15% or some here and there.

Our next year target would be somewhere around 15% or max to max 20%, not more than that.

And the second question on ROCP. So, recently in past year, we have done huge capex. Maybe the capex we have not done in past 10 years. We have concluded in last year. Hello, sorry. Okay. So, the capex which we have done last year is, you know, more than we have done in last 10 years. So, maybe due to that, you know. The cost, depreciation, and the new capabilities, CAPEX-related costs, our ROC is down, but we are aiming to achieve near about 20%, more than 20%. Let's say not immediately in the very next financial year it will cross, but internally we are aiming that it should be near about 25%. If we maintain, then it will create very good value in the eyes of investors. But, you know, it's a typically, you know, capex related thing. So once we do investment, maybe after two years, there will be a good traction of, say, for ROCE and ROE. And if we do huge capex, then it will take some couple of years. So maybe after two years, it will be in a good momentum. But for two years, I believe slightly it will be improving towards 20%.

Thank you, sir. I encourage your patience. If I may just squeeze one out because I think we're running out of time. I see that there is an increase in the plant and machinery and CWIP by double-digit crores, and there is also doubling of right-to-use of the assets that is there. So can you please enlighten us where these plant and machinery CWIP and right-to-use has been pushed in? Thank you.

The one thing is, we have, you know, shifted to a new plant in new financial year. In Bharat refrigeration, we have implemented, we have taken new machinery, new premises as well. So, you know, the capex over there is currently shown in CWIT. Further, we are also developing a corporate office. So, the expenditure is still, it is still under consideration, and maybe this financial year end, it will get completed. So expense related to that is shown in CWIT. And so far as ROU, we have taken one, you know, warehouses for CF vertical that we have also specified in our earlier that we are enhancing our distribution and space network. As a part of it, we have taken a big warehouse and from where we are dispatching our CF related products. So, ROU is pertaining to that browsing cost. It's a long-term lease agreement, maybe somewhere around seven years.

Thank you, sir. Thank you so much. Thank you. Next question is from the line of Kanish Kupta from SS Family Office. Please go ahead.

We can announce in a short time, but there are no tips on how many considerations we can go. Maybe around 2-1 months, we think that we will finalize, or in which way we can do it.

Yes, sir. And sir, your guidance is about 1.5% EBITDA and 25% revenue growth and 25% ROC, so sir, according to your personal side, you should be able to achieve all of these estimates for all of your personal estimates.

Thank you. Manpower capabilities and our recruitment and dealer network expansion are already positive. So, it's just about time, what we have invested in the market is showing a good moment in the market, so it's just a matter of time, in a couple of years, because the balance sheet of expansion will not be as much as our sales increase. So, in ROCE, we will limit as much as we have included the capital fund infusion, as much as our debt or investment, as we call the capital employed, that will not be enough. We will start our loan repayments. Sales and margin books will come. So, ROCE will come to our desired level.

Sir, what do we achieve with two big bottlenecks? Thank you very much.

Sorry, 2-3?

Sir, 2-3 big disadvantages we achieve in order to achieve.

Sir, if you have said disadvantage, then there will be more challenges. But the war situation is that we don't know how much it will impact, how much it will go. There is a lot of volatility in raw material price. We have mitigated some actions. But how it will go, that is not certain. But our S2 is quite strong. It seems that it should not be long, but then we don't know how the situation will be. So that is an existing financial challenge.

And Mr. Eddy, would you like to add something on top of this?

No, so I would only give you a little more confidence on the Indian story because India is very strong on the consumption side, so we don't expect any demand-side challenges. I think the, like... There could be challenges related to supply chain, inflationary related impacts on the financials. That's the only thing that the challenges see at this point in time. Otherwise, demand side in terms of revenue side and all that, we don't see any challenge at this point in time. And all fundamentals are in place, all fundamentals are in place now. We are now good to have a, you know, a very widespread dealer network. So, I'm sure in this year, we'll be able to take the benefit out of the expanded network.

And so, lastly, sir, management's openness over to raising equity capital. So, how should the investor think forward about the preferred capital structure and what would be the upper limit for the debt-to-equity ratio beyond which management would be uncomfortable of increasing leverage?

The date level is at a peak level. As of now, we cannot comment it at this point of time, but the date level will not be a peak here, and the repayment is also started, so it will slowly reduce.

Sir, how do you expect the capex funding in your next call?

Probably, we will decide something internally.

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

Thank you. Next question is from the line of Naman Desai, an individual investor. Please go ahead. Hello. Yes.

Hello. Am I audible, sir?

Yes. Please go ahead.

Sir, a article published in 12 months in Money Control, titled, Cold War Between Coke, Pepsi and Campa, Fused Bridge Boom in India. So, Sir, there are very good things about Wikicoolers, that the market will be $3.9 million by 2034. So, I just wanted to understand, sir, what is our strategy?

So, currently, our product portfolio consists of vesiculars starting from 100 liters to 1600 liters approximately. There are two, three... SKUs, which get catered to both these Coke and Pepsis in the camper of the world. So there are two types of markets that we see in Visi-Cola. One is a sponsored market, so sponsored assets, which are essentially sponsored by the Coke, Pepsi, or camper cola, which are done from their bottler side. And second market that is address of the market for IceMake is this. We have a retail market, you know, that what we call is a non-sponsored market. So that's the market that we are addressing right now, which means a typical convenience store person invests his own unit asset and then buys from brands like us. So that's addressable market. In fact, last season that we have seen an excellent interaction for this Visi Cooler. So we are now, this year, we'll be investing in strengthening our portfolio in busy-cooler sites, so I'm sure we will be able to cap better share of these non-sponsored asset categories in the busy-coolers, in FI27 and FI27.

And another thing, sir, recently in 1st June, I guess Amul made an announcement regarding 600 crore investment in West Bank Wall. I guess they're putting up some dairy plants. So, are we looking forward to some orders from there? I guess we already have a subsidy in place for that region, correct?

See, Amul has been our strong customer, you know, being based out of Gujarat. We do a lot of business with Amul, of course. So this relationship with Amun will continue, and it's a good news for the country, good news for IceMaker as well, that they were expanding in the eastern region. So eastern region, we are pretty strong in terms of our market presence to our various products and solutions. So that's a good news, of course, indeed for us.

Got it, sir. Thank you. I'll get back into you, guys, Amun.

Sure. Thank you. Next question is from the line of Tej Patil from Nivesh High. Please go ahead.

Yeah, thank you. Thank you so much for the opportunity. I just wanted to understand right now a number of dealers and, you know, spread between regions. If you could provide this, that would be quite, quite helpful. In terms of sales as well, for the new business, for the CF business, what was the region-wise sales?

So I will give you in terms of percentages, roughly about close to 60% of our revenue, 55% to 60% of our revenue comes from the Western region, right? And 13% to 15% is shared between North and South. So the key point that we want to share with you is that our traction in the other markets, of course, we are pretty strong in Western region, But our penetration in north and south is also very aggressive in the last summer, I mean, the summer that we are going through around. And I'm sure our share of business from our north and south and west will be aggressively clean in the next financial year as well. I mean, the 527 as well.

Great. In terms of dealer spreads, I mean, number of dealers and, you know, in terms of region, how they are spread?

So this follows more or less the ratio that I've said in terms of the revenue. So usually the number of dealers, you know, is directly functional to the revenue that we generate. So more the dealers in a particular reason, obviously, your business is going to go up from that.

Got it. Got it. And just one assurance on point. You said the West Asia has led to two things. One is availability and one is cost. On availability, you are sorted. You are saying probably you have enough inventory of the raw material for let's say upcoming few quarters. Just wanted to understand cost. You said we have probably netted off by increasing the prices in the first month of April. Is it right to assume most of the incremental cost due to, let's say, whatever is happening right now is kind of negative due to this price increase or we will feel some impact on cost due to this incremental prices of, let's say, copper, ammonia, gas?

Yeah, so this is a serious problem for the industry in general, just not for IceMake alone. So there is a level playing ground as far IceMake is concerned. So obviously every player would have increased the prices. So that's the first answer my advice. Second thing is, like, in terms of the quantum of pass-through, I think we have tried our best to pass through the quantum of increase that we are impacted with, but we continuously review our competitive market positioning, and then we take calls on a weekly basis on the price part with respect to the realization that we gather from the market.

Hello?

Thank you. The next question is from the line of Rakesh Koshla from Ganesh Technical Investments. Please, go ahead.

Hi, Sir Gudeen. Your results are good this time. I have two questions. Maybe one of them could have already been answered by you. When will your debt repayment start? Maybe you have said, but if you can just repeat it for me.

Our debt repayment has already started. We have already, I mean, 408 crore, which is near about 30, 57 or 36 crore level, so that treatment has already been started, and gradually this level of date, you can consider it. I mean, this is not a lot of date increase in our planning.

Okay. So are you doing this fund raise? Why don't you do this in equity capital? I'm just asking. Since you have said that it's not good to do debt raise. Are you thinking about doing this fund raise?

I mean, as of now, we have some development on specific things, that's why we won't be able to comment on that. But the loan repayment is already planned and we have already planned that we will do the first phase of capital and that's what we have done. Okay. Capacity, company is down. So debt repayment is very challenging, and we don't think about further debt.

As you were talking about, I thought it would be a little less. I thought it would be a little less to fundraise since… Okay, sorry. And third, you have given a lot of division. So I am a shareholder, I am very happy about it. But as a shareholder, I was inquisitive about it.

The last year we had announced the dividend, we had maintained it. We did not increase it. Just to think that the investor's perspective is generally the way that the dividend will get it, because the retail investor has been there. We maintained it, we did not increase it.

Okay, that's okay. I think you answered my question. Thank you so much, and it was a wonderful performance. Thank you, sir.

Thank you. Thank you. Next question is from the line of Mehul Panjwani from 40 cents. Please go ahead.

Hello, sir. Thank you so much for the opportunity. Well, as you said that H2 is generally 60% and H1 is 40%, but I am looking at the numbers of the department, H2 is significantly more than 60%. Am I missing something, sir?

The percentage form may be slightly here in there, maybe a couple of percent, but you will see the past 4-5 years, so this ratio is maintained. Near about 20-22% Q1, Q2 and Q3. Our Q4 is maximum, near about 35% to 38%, somewhere around. 1-2% is open, CF is vertical, it performs well in Q1. Going forward, our mix slightly changes slightly, but more or less, the business will stay stable.

Sir Sir Sir, this time Q4 has more contribution than 35%? Is that correct? Thank you so much, sir. All the best.

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

No, I think the gentleman before me had answered the question right, so I had canceled this thing. My only question was the same thing. When do you think the company will become debt-free? And I guess he's answered that. And are we shifting towards internal accruals when we make more capex after that? That was my only question, but I guess he's answered this. Thank you.

Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now have the conference over to Mr. C.P. Patel, Chairman and Managing Director, AISMIC, for the final thoughts. Over to you, sir.

Thank you, everyone. FY26 has been a year of transformation and strategic investment for AISMIC. In line with the Make in India vision, we continued investing in manufacturing capability, product portfolio, expansion, distribution networks, strengthening, market development initiative, and leadership enhancement to position ISMAC as a comprehensive end-to-end operation product and solution company. The strategic investment. Undertaken during the year, along with higher depreciation, arising from newly commissioned assets, increased finance costs related to growth initiatives, and certain meantime costs associated with labour for implementation, energy level transmission, and other growth-oriented programs. Thank you. As utilization level improved and recent investment began to mature, we expect operating leverage to support profitability improvement over the medium term. The long term opportunity remains extremely conciliating. India's full-chain infrastructure requirements continue to expand rapidly driven by food processing, pharmaceutical, retail, agriculture, logistics, and industrial development. We remain confident the Fundament Foundation built during FY26 will support sustainable growth. strong profitability and long-term value creation for our shareholders. I thank you, investor, analyst, customer, employee, general partner, and stakeholder for their continued trust and support. Thank you.

Thank you very much, sir. I now hand the conference over to Mr. Mandar Desai, Compliance Officer, for his closing comments.

Thank you, everyone, for joining the conference call. We look forward for the next conference call after the first quarter result. Thank you.

Thank you, sir. On behalf of IceMake Refrigeration Ltd. and Ariana Matasko, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.

Thank you.