INOX India Limited (INOXINDIA) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to INOX India Q4F526 Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Assuring your 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. Mohit Kumar from ICICI Securities Ltd. Thank you. And over to you, sir.

Good morning. On behalf of ICICI Securities, I welcome you all to the Q4FY26 Handling School of INOX India Ltd. Today, We have with us, from the management, Mr. Deepak Acharya, CEO, and Mr. Pawan Logar, CFO. We will begin with the opening remarks from the management, which will be followed by Q&A.

Thank you, and over to you, sir. Thank you, Mohit. Good morning, everyone. I welcome all our stakeholders, investors, analysts, and friends to the Q4 and FY26 earning call of ENOX India Limited. I trust you had the opportunity to review our results, earning release, and investor presentation, which are available on the stock exchange and on our website. Joining me today is our CFO Pawan Logar, who will later take you through the detailed financial performance, following which we will open the floor for the Q&A session. Let me begin with overview of the global economic scenario. Towards the close of FY2026 and in the beginning of FY2027, the global economic environment has been brimming with ambiguities, geopolitical issues, evolving trade dynamics, and energy transition, continue to reshape the calculus for capital allocation, infrastructure investment, and industrial policies across economies. Tariff pressure and supply chain reconsideration have added layer of uncertainty. That businesses in our space must navigate and caution and precision. Despite trade tensions and policy uncertainty, global growth was 2.8% in 2025, driven by front-loaded trade, supply chain adaptions, and AI-related investments. While the growth in 2026 is estimated to be 2.7%, the ongoing West-Asian conflict is creating headwinds. Through elevated energy prices, shipping disruptions, and weakened investor confidence. Talking about the Indian economic scenario, in the current challenging global economic environment, India stands strong. Growth increase to 7.1% in FY2026, making it the fastest growing major economy supported by robust domestic demand. Relatively lower inflation, income tax and GST rate reduction and accommodative monetary policy. Manufacturing and service draw supply-side performance, although net exports weighed on GDP as imports increased. Private consumption rose to 7.0% each on year, bolstered by rising household incomes. Investments strengthened across both private and public capital expenditure. However, a prolonged West-Asian conflict poses a significant risk to India. As a major energy importer, India remains exposed to sustained oil price increase, fiscal pressure from fuel subsidies, and rupee depreciation. With nearly 38% of remittance of inflows originating from Gulf economies, any labor market disruption, there will be further strain in the forex reserves. India's macroeconomic buffers provide some insulation, but energy diversification, fiscal produce, renewable energy acceleration, and trade liberalization through FTAs remain critical to sustain resilience in an increasingly fragmented global environment. The fundamental opportunity these creates for capable, well-positioned companies remains firmly intact. Despite the global hiccups, at Inox India, we find ourselves at the juncture of reinvigorated growth, driven by India's industrial growth, ambitions, and the global transition towards cleaner, more efficient energy systems. The rising adoption of LNG as the transition field, the gradual yet accelerating development of green hydrogen infrastructure, and increasing investment in defense and aerospace. Cryogenic systems are not short-term trends, but a long-term structural opportunity. We believe that ENOX India is well-positioned to capitalize on these opportunities through its engineering expertise, diversified capabilities, and expanding global presence and footprint. The global industrial growth and LNG landscape continue to evolve rapidly. Chipping companies are increasingly transitioning towards LNG-powered vessels. Aerospace infrastructure requirements are scaling globally, and emerging applications such as data centers, cooling, are introducing new business avenues. With our strong capabilities across Karajanic Engineering, LNG infrastructure, industrial gas pollution, and advanced scientific applications, Inox India remains well positioned to participate meaningfully in these evolving high-growth sectors. Business Performance Overview Q4 and the full-year FY2026 reflected a strong operational momentum for Inox India with healthy revenue of 1632 crores growth across key business segments. Our EBITDA margins, 23.8% for FY26, remained in line with or better than the guidance provided earlier, demonstrating disciplined execution despite headwind arising from the U.S. tariffs, global logistics disruption, and view of political uncertainties. Our diversified business model expanding, geographic presence, and focus on high-value, tailor-made, technologically complex products continue to strengthen our competitive position and enhancing long-term growth feasibility. I will now take you through the segmental highlights. Let me begin with our largest revenue contributor to industrial gas. The segment delivered another strong quarter and a record year marked by high-value order wins, important volume milestones, and growing global resolution. During Q4, we received a significant aerospace order from a leading aerospace private space company with a total order value of approximately 200 crores. We are expecting more high-value orders in Q1 FI27. This order is a direct outcome of our proven execution capabilities and reinforces the growing confidence that global aerospace players have in Inox India's engineering expertise. Transport tanks also achieved a significant milestone in FI-2026, with annual sales exceeding 300 transport tanks and semi-trailers for the first time in the company's history, surpassing the earlier benchmarks. We continue to witness strong order inflows across the transport tanks, IMO tanks, and standard industrial gas products, reinforcing our confidence in sustaining this growth momentum in the years ahead. On the disposable center front, I am pleased to share that despite the challenging U.S. tariff environment, we crossed the milestone of dispatching over 2 million units during FY2026. This is a remarkable achievement for our team and reflects the sustained demand for our products across the international markets. Liquid cylinders and cryosyl brands continue to gain strong market acceptance with a record order intake during this year. Demand remained robust across both domestic and export market. I will now share the details of business in the LNG solution segment. This segment had a breakthrough quarter and a defining year. One of the most significant highlights was the order received from the Cochin Shipyard, one of India's premier shipbuilding companies for LNG fuel tanks, to be installed in the LNG-powered ships, being built for one of the world's largest shipping companies. This is a landmark order for Inox India and marks our entry into the marine LNG ecosystem, a market currently undergoing a major structural transition towards the cleaner fuels. The order involves six LNG tanks of 800 cubic meters, this engine execution timeline. In addition, we received LNG stations' order from Gujarat Gas and continued dispatches of LNG fuel tanks to the OEM. While the adoption in the LNG truck segment has witnessed some near-term challenges, we believe that the long-term opportunities remain robust, supported by favorable economic conditions and regulatory targets. Our LNG semi-trial business in India continues to maintain market leadership, with more than 250 LNG semi-trials currently operating on Indian roads and commanding a dominant market share. We have also dispatched the first batch of 5 into 1,500 cubic meter tanks for the Bahamas mini-LNG terminal, reforming our capability to institute large, complex LNG storage infrastructure projects in timely manner with highest quality. I will now take you through the updates from the cryoscientific division. The cryoscientific division continued to strengthen its position as a trusted partner for highly complex global scientific infrastructure projects. During the quarter, we received a repeat order from the ITERFAN for modifications related to cryoscientific panels, further validating our deep exhibition expertise in the world's most ambitious fusion energy projects. We also completed the production of highly complex lock sign for submarine-related applications, highlighting our capabilities in mission-critical cryogenic engineering and advanced defense applications. I will now take you to the beverage cake business. The beverage cake segment delivered exceptional year and a strong close FI-2026. During the FI202526, we recorded a 31% increase in CAKE dispatch over the previous year, reflecting continued market expansion and strong demand momentum. We announced secured approvals and active orders from three of the world's leading global breweries, namely Hennigan, ABNB, and Molson Cruz, collectively representing more than 40% of the global bear market volumes. This position is strongly for the next phase of growth in this business. In FY2526, we have supplied cakes to Henneken, breweries in Bulgaria, Croatia, and Union Island. We also secured first order from Molson Cruise, USA, and also repeat orders from the non-standard cakes from Messrs. Orban, Germany. Our distribution partnership in Germany, Poland, and United Kingdom are now operational, providing us with direct commercial access to the European market. We are also increasingly focusing on specialized non-standard cake variants designed for niche applications. These products shield higher margins and help differentiate us from commodity-oriented players in this industry. True to our vision of remaining historically futuristic, we keep evolving newer opportunities in advanced business areas. One of such opportunities is data center cooling. I'm happy to share that we have signed an MOU with a European company to jointly develop liquid nitrogen-based cooling solution for the data center. This is currently an early-stage R&D-led initiative, and we expect meaningful development for the next 6 to 12 months. With the growing energy efficiency requirements in modern data centers, we believe that cryogenic cooling technology could emerge as a compelling and scalable opportunity for Inox India in the years ahead. At Inox, we strongly believe in building our own capabilities consistently. In line with this, I am happy to share that we are developing a new facility at Kandla. We have acquired approximately 7 acres of land near the Kandla port. On a 30-year lease basis, the facility is expected to be commissioned within approximately 9 to 10 months. Its strategic proximity to the port around 2.5 km away offers a significant logistic advantage. The Kanda facility will substantially enhance our capability to manufacture ultra-large tanks with diameter 8 to 9 meters, length up to 60 meters, and weight up to 500 tons. This expansion opens opportunity for LNG mega storage tanks, large-scale aerospace tanks, and several other high-value, large-format products that are currently difficult to execute at our existing facility. This year saw a strengthening of revenue mix from the geographical viewpoint as well. Revenue contribution from North and Central America increased from 14% in the previous year to approximately 26% in the FY2026, driven by LNG terminal-related orders, aerospace orders, disposable cylinder exports, and LNG-related shipments, despite tariff-related advance. Our revenue contributions from the European market continue to improve because of the opportunities in LNG and cryoscientific areas. In the Middle East, Southeast, and Far East, our revenue has improved from 8% in FY25 to 10% in FY26 in spite of global disturbances in this region. The key takeaway is that demand fundamentally remains robust across the geographies. The primary constraint continues to be logistics and supply chain related challenges rather than the slowdown in the market demand. Outlook, as we look ahead, FY27, our strong order backlog, expanding global customer base, growing share of high value engineering products, and capacity augmentation at Kandla collectively places us in a comfortable position to sustain and accelerate our growth trajectory. We remain focused on operational excellence, innovation-led growth, and delivering long-term value for our stakeholders. Thank you for your continued trust and support. I will now hand over the call to Mr. Pawan Logar, our CEO, to take you through the financial highlights. Thank you very much.

Thank you, Deepa, and good morning, everyone. I will now take you through the financial highlights for Q4 and the full year in December 21st of 2020. For Q4F426, total income is due to 475 crores, representing growth of approximately 24.2% on year-to-year basis, driven by strong execution across key segments, including the LNG terminal project-related sales, large aerospace order, and record transport tank dispatches. Q4F426 is very special to us as we have achieved higher quarterly revenue, export revenue, and order booking. Adjusted EBITDA stood at 108 crores, up by 13.4% YOY basis, reflecting improved operating efficiency and better product mix. Adjusted profit after tax was 72 crores, growing by 9% YOY, supported by margin expansion and robust volume growth. For the full year FY26, total income is totaled at 1,632 crores with growth of approximately 21.2% over FY25, reflecting healthy performance across industrial gas, LNG, cryo-scientific, and care division. Adjusted EBITDA for the full year is totaled at 380 crores with adjusted EBITDA margin of 23.8%. This year recorded highest sale for LNG segment and thereby total sales of the company. Adjusted paid for the full year stood at 261 crores, registering a growth of 19.3% over financial year 25. As of 31st March 2026, our order book stood at 1514 crores. Providing strong revenue visibility for the coming year, coming quarters, of the approximately 60% is from exports and 37% from the domestic market. We are affirming our strong global presence. Our total fund availability is on 31st March 26th to date Rs. 257 crores, providing ample headroom to support the Kandla facility investment, ongoing project executions, and other strategic initiatives. This concludes my remarks on the financial performance for Q4 and the full year 2026. I would now request the moderator to open the floor for question and answers. Thank you.

Thank you very much.

We will now begin the question and answer session.

Anyone who wishes to ask the question may press star and 1 on the touchstone 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 will wait for a moment while the questions are assembled. We have first question from the line of Mr. Abhinav Nalavadev from ICIC Securities. Please go ahead.

Good morning, sir.

Thanks for the opportunity.

My first question on the order inflow referent, we had one big order, what about 200 rows in order and boosted the order inflow. What is the timeline for this big order in the coming quarters and F527? What will be the guidance for the order inflow?

Yeah, well, we have a backlog of around 1514 crores. Out of which, I told you about the order from the aerospace companies around 200 crores, and going forward in the Q1 or maybe Q2, we are expecting a few more orders of similar nature and similar value very soon now, and that will improve our order booking for this F527.

And I hope around 450 to 500 crores could be a right assumption for the quarter rate in terms of quarter inflow.

Your voice is cracking. I'm not getting the clear voice.

Is it better now?

Yeah, slightly better, yeah.

I was saying that around 450 to 500 crores of quarter inflow estimate for quarter that could be a right number, right? Given the big orders that you're expecting in Q1 and Q2. Yes, yes. Okay. My second question is on execution and on the revenue front. How is Q1 going currently? I mean, you mentioned that there are logistic challenges. What is the revenue one can expect in Q1 and, you know, going forward if the things normalize for FY27?

So, we will be, our revenue will be in line with our target of the next year. That is almost like around 1,600 or 1,632, we have targeted around 80 to 20% growth. So, in similar fashion, our quarter revenue will be increasing in that fashion. And our order booking will be also growing the similar speed of around 450 to 500 crores every quarter.

So does this 18 to 20% growth begin that, you know, things normalize in coming quarters in terms of war and all?

Yeah, slightly impact is there, but we are not depending only on the one region or one area. We have multiple products, multiple geographies we target. So, plus minus happens into this Middle East area, but that will be compensated by other areas. So, we don't find any much of an impact of this.

I understand. My next question is on BRK segment. What was the revenue contribution from this segment, and what was the dispatch for F526, and what is the order book looking like?

So, for 2016, our autobook was around 65,000 keg and sales around 61,000 units. And value-wise, basically, it is last year, basically because there are different models into this, we had sold more of a 20-liter keg than the 30-50-liter keg. And there is a component which is called the sphere, which is almost like 7 to 8 or 10 euro component. People have thought that they will fix it at their place. So we dispatched the case without the sphere. That's why slightly though we have increased the volume by 31 percent, our sales is almost similar like plastic.

100 percent.

So, my final question is, what is the outlook on the LNG tanks from order inflow perspective in FY27? There are a lot of things happening with regards to energy security. Overall, what's your take on it?

See, as you see, there are like various challenges, LNG coming from Qatar and all that places. But definitely it has improved our situation, basically because as the delivery of LNG coming from Australia and USA, it takes little more time. So the storage capacity at all places where people have installed the LNG facility, they will improve upon. So, we will have more of a storage orders and transportation equipment requirement going forward till this Qatar solution is resolved, which may take a few years to complete that facility which is damaged during the war.

I understood. Thank you. Thanks a lot. Very helpful. Thank you. Thank you.

Thank you. We have a next question from the line of Pritesh Cheda from Lucky Investment. Please go ahead, sir.

Yes, sir. I have two questions. One related to the LNG. So, you know, we have this whole string of equipments which we show in the slides. Right from storage to transportation to smaller LNG tanks, which are to be put up on the vehicles. So, just storage and transportation, what is the size of the market, you know, and at 459 crores that we have done last year, what will be the market share? And do we do these small transportation tanks as well?

Yes, we do the transportation tanks, but normally the LNG densities have that of the nitrogen. So the smallest size, what people prefer is around 40-scale tank. However, we have smaller capacity, also LNG trailers, where people require less of LNG for the transportation. But that is not a standard model or hot selling product. So 40-scale trailer is the most optimized trailer, and more than 250 trailers are on the road now. On the LNG use and this from the storage point of view, the LNG storage vessels are used for satellite application, even for LNG fueling station and LNG station. So, the demand of all these three is going to increase. So, automatically, the storage requirement will increase. Presently, because of abundance of LNG, people were just keeping one tank of 50 C scale or 113 KL. But now, going forward, people are asking for at least two tanks, one standby tank for their consumption, so that their stockout is not there, because these stations are directly connected with people. And if there is a large queue of tanks for filling purpose and suddenly your tank is empty and you don't get liquid, that is a very difficult situation for them. So we hopefully think that more and more storage requirement. And definitely if the storage requirement is there, the liquid has to be transferred from the terminal to the customer station by the transport equipment, and the trailer requirement will go on in the coming year now.

So, this 459 crore LNG, this is pure India business for you, or there is export in this?

This is export as well. So, you can consider almost 60% is export, and 40% is the local, roughly.

Okay, and can you give some, some color on the size of the India market, at least, you know, when we have, or the market shape?

For, for LNG?

Yeah, yeah, for LNG, sir.

We have different products and different market shares for different products. On an average, our market share for the LNG market, LNG products in India, is almost like 60 to 65 percent.

And any possibility to know the global market share?

For LNG?

Yeah, yeah, LNG, sir.

This is in single digit only as of today. Maybe 6 to 8 percent.

Okay. My second question is on, okay, will this division grow much faster than the company level growth?

Yeah, this division has a good potential to grow because of several things, especially the prices of LNG, even though the diesel prices and petrol prices we are expecting a rise. The LNG price will also rise, but the ratios will remain the same, and LNG being a clean fuel and almost advantage of 15 to 20 percent, this LNG division is going to grow faster than our standard products.

Okay. My second question is on the beverage keg side. So, when we sell 61,000 kegs, you know, this is the India number or this is the include export number also?

This is including export in India.

Okay. Can you tell the total global kegs market and gross rate there?

The total number of cakes available as on today is 120 million cakes are available in the global market. There is a 4 to 5 percent replacement demand. So, average demand in a year is around 4 to 5 million cakes. And there are two, three manufacturers already in Europe and one in China, and we are the second in Asia.

Okay. And capacity for us in this will be?

So, presently, we have installed a capacity of around 300,000 kegs a year, and presently, we are just one-third of the capacity.

Okay. When do you see full utilization?

Whatever we have, the kegs to the industry, to N.E.K., N.A.B. and B.O., now to Molson Cruise, and many other small buildings. I am happy that everywhere, the kegs that we supplied are approved by the customers. And they will definitely take some trials initially, and we'll go for a full swing in coming in.

Okay. And what is your aspiration for market share? What will be your aspiration in that 4 to 5 million kegs?

So, we are put a facility of 1 million kegs.

You just said 300,000 gig, right? Capacitifying office.

It is presently, but our building point of view, everything point of view, we can go up to 1 million gig without any problem. I think the machinery, definitely. Okay. Okay. Okay.

Thank you. I'll come back if you have more questions, sir. Thank you.

We have next question from the line of Mr. Jay Negandi from BitCapit. Please go ahead.

Hi, good morning. I hope I'm audible.

Yeah.

Yeah, great. So we said that we have made a problem. Sir, please continue.

Sir, we have lost the line of Mr. J. N. Gandhi. Okay. We have next question from the line of Mohit Kumar from ICHI Security. Sir, please go ahead.

Hi. Good morning, sir, and thanks for the opportunity. My question is around the working capital. The working capital has increased meaningfully in this fiscal. It used to be 731 crore. By FI 25, it has gone up to 990 crore, and primarily one of the driver is contract assets. Even if I remove the contact access, I think there's a meaningful accretion. How should we think about the working capital in F-27 and F-28?

Actually, you know, our project orders are now increasing a lot. And we have the order book of more than 1000 crores in projects. And in projects, what we are doing, we are taking the orders with some payment terms, which is on the basis of various terms, like 30%, 50%, 60%. Whereas on POCM, as per the ICICI guidelines, we have to book the revenue as per the percentage completion method, how much project is completed, and on that basis, we book the sales. Whereas the collection is always happens as per the payment terms of the order. So that is why little bit contract prices is increasing, and it will remain like this only because, you know, the project orders are increasing now. But still, you know, my advances, if you see, advance from Kashmir has increased a lot, and at present, we have advances of around 500 cores with us.

We expect you to stay at a similar level, right, as you go forward. Is that a fair expectation?

Although, you know, the projects are there and big projects are coming now. So, in big projects, definitely I have to book the contract assets accordingly and due to that little bit may be there. But overall, it is, you know, my inventory is totally in control. Everything is in control.

Understood. My second question is, can you just help us with the market for industrial represents lenders which are exporting to U.S.? Was the market stable in FY26, or was there any growth compared to FY25, and how do you see this number in FY27 and FY28? Is there a chance of some growth, or is it most likely flat?

Yeah, this product is used for storage of refrigerant gases. So, all these major refrigerant gas manufacturing companies, they have a quota system. So, they cannot produce more and they cannot sell more also. So, the growth is maybe very originally able to improve. Perhaps our market share can improve if we target a few more customers from the U.S. market and compete with the other competitors. So that way, we have increased our sales as compared to FI-25 to FI-26, and we are targeting customers which are not buying or which are buying less quantities from us. For the FY27, and hopefully we will gain over there. That is what is the present situation for disposable cylinders. And we have sold more than 1.5 million cylinders to U.S. in last year.

Understood. So my last question, can you just help us with the outlook on the cryo-scientific division ordering for F-27, and where is that ISRO launchpad tender is currently?

Yeah, cryo-scientific division, we have ample of opportunities, not only in India, but all over the globe, and there are very few players who operate into this region. So, Inox India can be among one, you can count on fingers, perhaps, maybe two, three such suppliers are there, so we are one of them. Our advantage is our strong engineering execution and our competitive offers what we are giving. So we have a strong belief that cryo-scientific division will grow substantially in coming years. On this third launch pad, yes, the... Tender will be coming by end of this quarter, and we have to bid maybe the quarter two, and maybe by end of this year, some outcome will come for the order. Understood, sir. Thank you, sir. Best of luck. Thank you.

Thank you.

Thank you.

We have the next question from the line of Mohish Surana from Monarch Network Capital. Please go ahead.

Sir, first of all, congratulations on a good set of numbers. My first question is with respect to the margins. So, our profit margins have come in a bit. I mean, can you just give some understanding of why is that?

See, Mohit, if I told you whenever you visited our factory also, So, we have always a product of standard and non-standard time. And quarter to quarter, if you see, there will be slight variation in the margins because of the product mix variations. However, if you see year-on-year basis, we have always maintained our margins of 21% to 24% what we have given the guidelines. So, this year, for total year budget is 21.6. Last year, it was also the same thing. So, we are in the same bracket. I don't think there is much variation. But our products are very difficult to, I mean, you can't control like that. Depending on the market requirement, we have to push the products. So, productivity plays a vital importance in the margins.

Understood. And, sir, the Cochinch shipyard order, can you share the order value and what's the completion timeline for this order?

Yeah, we've got six tanks order for the six ships of around 800 cubic meter tanks. The order value is around 85 crores, and we have to complete between two to three years. The first, as the ship gets constructed, we have to supply. So you can say in a year, we may have to supply around two numbers tanks to shipyard.

Understood, sir. And, sir, for the Bahamas, I mean, how much have you already supplied for the Bahamas order, and how much is pending?

So, we had initial order of around 230-35 crores, and we got some addition order because of some changes. So, the total order only was around 240 crores. We have supplied around 160 crores in this year. Balance will be supplied in FY27.

Understood, sir. So, that's all from my end. Thank you so much.

Thank you, Mike. Thank you. We have next question from the line of Saheb Soharab Gujar from ICICI Potential AMC. Please go ahead.

Thank you for the opportunity, sir. On the data center cooling tie-ups that you mentioned with one of the OEMs, can you just pour some more light on what sort of work or role you're trying to play in this tie-up? Is this more like a joint system integrator or this is just for supplying some of the components, the capabilities you already have, say the piping and all?

So this is, this I can say it's basically R&D project what we are doing initially. And this company is one of the pioneer companies in the IT infrastructure, manufacturing the, you can say, the racks, the cooling system, and other things. So they are already into the existing business, and major businesses they are doing in this sector. So when we are discussing with them, they said the major power consumption is the main thing for cooling purpose. So we suggested them if we can cool the, because they have to, the chips and the microprocess has to be cooled at a particular temperature. So there, if you use liquid nitrogen for cooling, that can improve. So, we have recently attended an exhibition in Europe as well, and got a lot of feedback on how it has to be done, and we have started the project of understanding how we can develop a model or a product for them. So, this is under trial initial purpose, and it may take six to one year time to develop a product for this application.

So, you are trying to be a solution provider in this, not just a component supplier to this OEM?

No, no, no. The entire solution, they will be manufacturing the racks and other systems, and we will be providing them the cooling solution, and together we will offer it to the customers. Got it. That's it from my side.

All the questions. Thank you.

We have next question from the line of Preet Jain from Nivesh. Please go ahead.

Hello. Hello. Sir, am I audible?

Yeah, yeah, yeah.

Sir, please, congratulations on good set of numbers. My first question is on ITER side. Sir, ITER has 9 vacuum vessel thermal sheet and INOX has now received repair orders for what appears to be all of them by Q1FI26. So, can I get to know is there any new scope of work being discussed with ITER beyond this thermal sheet repair?

Yeah, ITER work will continue for next seven to eight years more, and presently we have that repair work which is going on, which will be continued for one and a half year at our shop, and then we have the work for installation that work at site. It says that there are many such equipments which they require on a short period notice, and they are directly contacting us because of our good quality and timely delivery of products. So there are many such pipeline work or maybe some improvement work which is required, and they are contacting us, and we are doing it for them. So, on an average, going forward, at least 50 to 60 crores, we should get on a regular basis for next at least five years. Okay.

Thank you, sir. And another question is on, you mentioned in your PPT about Highview Power liquid air energy storage system. So basically, the first Carrington order which we supply to them is worth 935 million. So now I want to know that as Highview Power management has indicated that Highview has planned for four more projects by 2030. So is there any order visibility in that area in coming two to three years? And what will be the first project end value if we get the first order from them?

Yeah, we have bidded for all the projects what they require, and perhaps the order value will be quite big, but they are just waiting for this first project getting commissioned and seeing the fruits from this first project. So, favorably, maybe another six to eight months, additional at least one project will come up now.

Okay, and what will be the quantum of that order?

Very difficult to say at this moment because what they order at this moment to us, but definitely they are asking for some additional work besides what we have supplied to the Manchester project.

Okay, and sir, about the LNG fuel tanks, we described our product. China has a lot of penetration of LNG energy tanks moving in their country. So, don't you see import as a risk if basically India as a market for LNG tanks will grow, won't Chinese player will dump their products as they have specialized multi-capacity in that area? So, are imports a risk for us?

No. See, there are some initially some tanks had come to India. I do agree with you. But going forward, there is a regulation in India called as the PESO, which governs the incoming flow of such tanks. And there is no shop in China which is approved by PESO as on today. So no further, more tanks can come to India because it has to go with PESO approvals. Number one. Number three, these tanks are to be utilized on the trucks or the buses which are moving. And it requires regular maintenance, periodic inspection. And support from the vendor as well. So, China finds it to really manage such show. Whereas, we have our service centers across North, South, East, West. And people are very happy with the service provided by Anox India. So, going forward, I'm quite confident that we can beat the Chinese on competition from these two aspects. What is? Every truck has a different dimension. So, we have to design the fuel tank according to their needs. So, in China, they will say, this is my standard. If you want to buy, take it. Otherwise, forget it. But in our case, we design them to their requirement. We service them. We support them because this is a new technology altogether. So, people need a lot. We have put our people at Tata and Ashok Leland on their conveyor line to see that they don't face any problem. So, such type of services cannot be offered by Chinese people. Thank you, sir.

Thank you. Reminder to all the participants, please restrict yourself to 2-2 per question. We have next question from the line of Sejal Kapoor from Antifragal Thinking. Please go ahead.

Yes, thank you for the opportunity. Two questions, please. First is, what aspects of cryogenic systems integration and engineering have the steepest learning curves? And realistically, how many years would a serious competitor need to kind of, you know, replicate INX India's capabilities at comparable reliability and scale?

A million dollar question you are asking me. It depends on the type of people you are investing into it. Okay. So, if the skills are already available with the person, then he can do it. But it takes a long time for the approval of the plant, the equipment, prototypes have to be produced. So, there is not only one product, n number of products. So, I can say there are more of 30, 40 type of approvals and certifications we are having. And this is on a regular basis, it has to be renewed and reviewed. So, it is a quite cumbersome task. So, in my opinion, if we start with highly skilled people and put a plant which is a modern-day plant, it will take at least 10 to 15 years to replicate this facility.

Understood. So, IonX has demonstrated, you know, capability across many domains, LNG, hydrogen, aerospace, scientific cryogenic systems. At the prototype and project level, what capabilities or processes give you confidence that, you know, these can reliably scale into kind of a repeatable industrial businesses? Because I've seen many companies are very good at the prototype or initial stage. The industrial scale at the commercial scale, manufacturing is a completely different ballgame. So in your experience, can you give us some sort of a data point that, you know, we got 100 prototypes across our last 10 years history and we converted X out of those into industrial scale? That kind of a number is what I'm looking at. Because it's not easy to convert a pilot or an experiment scale project into commercial scale.

So, our methodology of working for prototypes is different. What we do is, we listen to the customer, we listen to our marketing guys, what products are required in the market, and accordingly we develop. It is not we just develop the product and then find the application. No. We just have the application and we develop the product. For example, I will tell you one simple example of Cryos. which is a very good product for artificial insemination. So there was a need 25 years before that India needs to have a higher output of or yield for milk from a cow. And that was the project. And there are very few people in this country who can supply such a solution. So we developed that solution. And today, 95% of the insemination program is through a diwar, which are supplied by us for this project. Similarly, the healthcare sector, we have supplied so many products during Corona times, cryogenic tanks, liquid cylinders, so many things. So, in our case, I can say around 95% of our products that we develop is commercialized, and if there is a commercialization possible, and if there is a need, then only we develop the product.

Understood. That helpful. Thank you so much. Thank you.

Thank you. We have next question from the line of Hathal Shah from Dalal and Broach. Please go ahead.

Yeah, thank you for the opportunity. Just a couple of questions. Firstly, could you provide the revenue share for cakes and disposable cylinders for EPPER 25 and 26? And would it be fair to assume if their share in the revenue which increases, our margins would, console margins would decline? And secondly, sir, any update on the ISRO third launchpad? Yeah, that's it for myself.

Yeah, for the cake's business, FI 25 was around 27.15 crore, whereas FI 26 was around 26.13 crore. I told you though the volume has increased from 46,000 to 67,000, the container was like 20, we sold 30 and 50 more in FI 25, whereas we sold more of 20 liter cakes in FI 26. On the disposable cylinders, I don't have the correct number, but something around 135 crore or something on FY25, and this year we have just reached around 150 crore. So more than 2 million cylinders were sold in this one. And on the ISRO, yes, the RFQ is on the way, and hopefully in another one month's time we should have the RFQ, and ordering will be placed in the next year beginning. This is what is the present situation.

Got it, sir. And just one last question. Sir, what percentage of the current order book is executed in the coming one year? Would you quantify that? What percentage of the current order book would be executed in the coming one year? Is it possible to quantify that?

Yeah, order book or pending order of around 1514 crores. So, out of that, at least 1,200 crores will be executed this year.

Thank you. Thank you, sir. That's really helpful. Thank you.

We have next question from the line of Ishar from iThotPMS. Please go ahead. Hi, sir.

Am I audible?

Yeah, yeah.

So, thank you for taking my question. So, I had the, my question was regarding the Highview power order. So, there was an article that suggested that Highview, they raised 300 million pounds for this project from UK Investment Bank and the UK's utility.

Correct.

So, how much would our contribution be in this project, our equipment contribution?

We are supplying only the cryogenic tanks for storage of liquid air. So that way, our contribution for the entire project is not much in the value-wise, but definitely from the technology point of view, this has got an importance. And going forward, now we are discussing with them for three, four projects, where the capex will be much higher from the cryogenic point of view, because they are relied and they understood our capabilities now. So going forward, we will definitely have more scope in the whole project, because this is mainly a cryogenic project. And besides that, there are many equipments which they are manufacturing somewhere else, but we have also offered them the non-cryogenic equipment for their requirements. Let us see how does it come up in future.

Yes, sir. So the second phase which Hyaview is planning, which is in Scotland, it is almost eight times bigger. So can we assume that our order would also be eight times bigger from Hyaview for the next project?

The tank sizes are very, very big, and we have given them a solution, which we can, some site work as well. So, they are happy with our proposal. So, let us see if you are correct. The size of the value, or the order value will be around 8 to 10 tons of the present order booking. Okay, sir.

And let's say the capital cost for such a liquid storage plant would be 100 rupees. How much of that contribution, how much rupees would be cryogenic storage tanks?

It will be around 20 to 25 percent. Oh, okay.

And I also wanted to understand, so now that we have discussed the first lot for our mini LNG terminals in the Bahamas, what is, could you provide more color on the pipeline for such more mini LNG projects? So does the success of the Bahamas project open doors for similar island nation energy projects, or do you have any visibility there?

Yeah, we already received two small orders from the Bahamas, small islands. So, the two orders which we have received is under construction now, and we are targeting a few more in various countries now because of our success of our small-scale LNG terminals projects in Scotland, then Caribbean, now the Bahamas, and two more orders in Bahamas we have received recently. So people have understood the importance of this, and the majority problem in the islands is the electric power. And if that power is taken care with a green method of manufacturing, I think people are very much interested in this type of projects. Okay, okay, sir.

And also the recent.

Mr. Isha, sorry for the interruption. Please join the queue for the follow-up question. Please join the queue. Sure, sure, sure. Thank you. Thank you. We have next question from the line of DVM-GOC from 9243 Capital. Please go ahead.

Congratulations on the great set of numbers. I just wanted to ask you that we had discussed an order from MSR TC bus conversion, right? So is there any update on that? And also on the Starbucks keg for coffee, is there any update on that?

No noise. Sorry, sorry, sorry.

Yeah.

Yeah, on the MSRDC, whatever equipment we have supplied, they are running successfully. The trucks are running every day. Sorry, the buses are running every day. And unfortunately, that customer is not so aggressive, and he has some different mindset. So, we are not pushing that customer very hard because of the payment terms and other things are also very difficult with that party. So, beyond that, we don't have much information, but I understand they are working somewhere other than Knox now.

Okay, and on the Starbucks coffee cake?

Yes, Starbucks, we have supplied the samples and it is successful. So, hopefully, in this quarter, we should get some trial orders.

Okay, and one last question, that the LNG, can you give me an update on the LNG installed tank vehicles and fueling stations? Is there any big orders for fueling stations in the near term?

Fueling stations awarded as on today are almost 17 number. The fuel tanks are put together around 1500 plus trucks are running on the Indian roads.

Okay, and is there any big orders we have or are we in talks for?

We don't have much big order for both LNG fueling station as well as the fuel tank. But going forward, there are two, three companies which are venturing into a big way into this business and we are tracking them for our orders.

Okay, sir. Thank you so much.

I'll join back in the chat.

Thank you. We have next question from the line of Prakash Kapadia from Kapadia Financial Services. Please go ahead.

Thank you. Thanks for the opportunity. I had one specific question. You know, last three years, if I were to look at the revenues, they have grown at 18%. But, you know, cash flow from operations are not growing. So, you know, in 23, on the sales of 966 crores, operating cash flow is 177 crores. Today on, you know, sales of 1587 crores, cash flow from operations is 116 crores. Even last year, you know, with a 21% sales growth, cash flow from operations is actually lower than 25. So, you know, what is leading to this decline? And, you know, given the order book of, you know, 50% industrial gas, 28% from LNG, and 22% from CryoSandvik, how should we look at operating cash flow on a going forward basis?

Yeah, actually, you know, operating cash flow, we are... The thing is, especially, you know, the CapEx, every year we are doing CapEx more than, from last two, three years, and in the coming year.

CapEx doesn't come in operating cash flow, no? I'm talking of operating cash flow, not free cash flow.

Okay, so another thing is, you know, we are now, because increase in the order book, we are getting more and more project orders, big orders. In big orders, what happens, the investment is very high, and it is going on as per the POCM method of calculation for booking the sales. And the payment terms in these orders are on various stages. When the stages are completed, then only we get the payment. So, the investment is high and the payment receipt cycle is, as per the payment terms, agreed with the customer. Because of that, my contract receipts is a little bit high, and due to that, my operating cash flow is a little bit lower. Otherwise, my inventory control, my vendors, you know, because of this order book, we are paying to our vendors very timely, and our vendor payment is very strong now. So, so that we can not be doesn't face any problem from the material side.

So, to understand this better, you were saying if, you know, I have a project of, say, 100 crores and as per, you know, billing terms, till the time that 100 crores is not fully executed, you cannot. You know, have any, you know, cash flow related stuff in your accounts?

I just give one example. 100 crores is an order of 100 crores.

From a project business, right.

One example of 100 crores. I got a project order of 100 crores, and as per payment terms, I got an advance of 50 crores, whereas I already completed the project of 60 crores. Okay. In the VIP, it is 60 crores, whereas I collected only 50 crores. So what happens to the 10 crores? 10 crores invested in from my pocket. My pocket till the next payment terms arrives. Like we are having the payment terms of 10%, 30%, 50%, 70%, 90%, and last 100%. So, it depends on the payment terms which we agreed. Whereas, products are closed on a regular basis. So, some products may be completed 65%, whereas the next payment terms is 70%. Unless I complete 70%, I will not get balanced 20%. Because of what happens, project orders, we have to collect as per the payment terms agreed only. And before that, operating cash flow is a little bit less.

But Pavanji, you know, given our varied businesses, varied projects, and, you know, multiple segments in which we operate, it should get offset over a period of time. See, I am not looking at one specific year. I am looking at one year, two years, three years. So, you know, sales. It is definitely growing, but sales at the cost of cash flow is happening. So are we okay with that, or is it a business mix which is driving it? I'm just trying to understand it better to forecast how would that remain, because it should get normalized with multi-product lines, multi-stage execution, because we are a contract-driven company. I understand that a project-driven company, but, you know, various stages, various orders come, various orders get executed, so that should improve, right?

Right, right, right. But, you know, my product mix is changing. My product mix is changing. My standard tank is reducing and my non-standard orders are increasing. If you see earlier, it was just 30% project orders. Now, we have more than 60% project orders in our order book. So the change in product mix is there. My project work is increasing and my standard products are not increasing so much than the non-products, non-project orders. My project orders, project orders mix is arising. More than 60% now at present is my project orders.

So, we would expect this kind of, you know, not too much of operating cash flow growth if project business continues to grow the way it is. It would remain more or less in that range.

Yes, Kapadia, sorry for the interruption. Please come back in queue for the follow-up question.

It's only one question. There is no follow-up question. I'm just talking about the operating cash flow only. There is no follow-up question from my end. We are just talking about that. But anyways, Gohanji, we'll take it offline. I think we need to discuss it better than we'll be offline.

Thank you, the nation, depending on the data.

Thank you. Thank you.

We have next question from the line of Kunal Bhatia from Dalal and Baruch. Please go ahead.

Yes, sir. Thank you for the opportunity and congratulations on a very good set of numbers. Sir, I just had one question in terms of the LNG business. So, sir, now this 122 odd crawls of a run rate. Going forward, can we sustain this kind of a run rate or in your overall guidance given of an 18 to 20% kind of a growth, what is the kind of growth we are expecting, especially on the LNG front?

The LNG business is more of a, you can say, project-based business. There are standard equipments, but the standard equipments also are limited. So, if these orders are a little bit lumpy, you can say, if you get an order, you get an order of 200 crores, or you don't get an order. So, the time from concept stage to realization stage, it takes a little longer time. So, the variation will be there in quarter to quarter, but yearly basis will maintain our targets and perhaps improve upon that.

Okay, okay. And so, just one clarification. So, you mentioned fleet on the road as of now of Inox India in India is about 250 vehicles or 1,500?

1,500 are the trucks with the fuel tank and others are 46 scale trailers which are running on the road for carrying the liquid from the terminal to that station. So, there is a difference. 1,500 is the trucks having the fuel tank. Whereas, these trailers are delivering liquid from the terminal, collecting the liquid from the terminal, and delivering to the fuel stations.

Okay. Okay. Got it, sir. Thank you so much.

Yeah. Nick? We are done with the time.

Mr. Kushal, your line as a meter, please ask your question.

Hello, everyone.

Yes, sir.

My question is on your data center side. Like you said that there is a technology, cryogenic cooling technology. So how is it different from air cooling or liquid cooling in the unit economics terms and what kind of opportunities are we expecting from this technology?

I told you this technology is getting developed. This is in the R&D stage I've done today. But if you stay air cooling, then you require air conditioners. If there is a water cooling, then you require chilling water. So the amount of energy and the time which takes for cooling from, say, maybe room temperature to, say, 2 degrees or less than that, it's a lot. Whereas in, if you put a chip into the nitrogen temperature, it will get the 77k or minus 196 in fraction of seconds or minutes. Okay. So that is what we are studying. How much energy saving will be possible if we can achieve that and how much time we will save to achieve that. This is what we are studying. And this is especially in R&D stage.

Is there any company in global level that they are doing this kind of tech or tech from the product?

There are no other companies who are thinking like this, but in our recent discussion during the exhibition in Europe, we found that there are a lot of companies, like mainly the Intel, Microsoft, and other companies, they are really interested in finding out a solution like this. So, we will try to work with them and develop some prototype and test it at our place. We have the R&D facility at IIT Mumbai. So, we will put in some tests over there, provide them the data, and we will work out how much energy saving and how much time saving is there. And if that is successful, then there is plenty of opportunities, I can say.

And what is our R&D spend as turnover, as percentage of turnover?

I mean, it is... For to comment on this, wait for some time for this.

Thank you very much for asking question.

Thank you. Thank you. This was the last question. I now hand a conference over to management for closing comments.

Thank you very much for your time and energy, and we had a very wonderful discussion, and if any questions are remaining pending, you can send that to our IR team, and we will be answering those questions. We always organize some visits to the plant, so you can be in touch with our AdFactor, which is the agency who is dealing in all this, so we can organize your visits, so you can see the products getting manufactured, and we can have one more discussion on face-to-face. Thank you once again for joining this call, and I hope you had a good time. Thank you so much.

Ladies and gentlemen, on behalf of ISA Securities, that concludes this conference. Thank you for joining us, and you may not display clients. Thank you.

Thank you. Thank you.