Krishna Defence And Allied Industries Limited (KRISHNADEF) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team, I welcome you all to the Q4 and Fi26 post earnings conference call of Krishna Defense and Allied Industries Limited. Today on the call from the management team we have with us, Mr. Ankur Shah, Managing Director, and Mr. Manish Shah, Chief Financial Officer. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risk and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to brief us about the business and performance highlights for the period ended March 2026, the growth perspective and vision for the coming year, post which we will open the floor for Q&A. Over to you, Ankur.

Yes, thank you, Vinay ji. Very good afternoon to all of you, and thank you very much for removing time to come for our con call. Let me begin by introducing myself. I'm Ankur Shah, Managing Director of the company, and I'm joined by my CFO, Mr. Manisha. Without wasting much time, I will quickly run through the presentation, what we are doing as a company and the financial highlights, and we open the house, as I said. So, the company started almost in 1997. That's my father who started the company was a double engineer. We are based out of Mumbai, head office, and our factory is based in Gujarat in Baroda. We started off as an engineering company, manufacturing equipment for the milk and the dairy industry. And somewhere around 2006-07, we transcribed into the defense space that is there. And that factory is at Halal. We have about 150,000 square feet based in Halal. It's about 40 kilometers from Mumbai. We have an associate office in Bangalore, and we're starting a venture in Chennai. We'll talk about it as we move forward. One of the key products that we manufacture is the Bulbar, the one that you see on the shipbuilding section. The one that you see in yellow is used for the hull construction of warships. This has a very unique peculiarity, the strength to weight ratio is three times as compared to normal angle channels that is there. And worldwide, most navies, most naval platforms and even commercial shipbuilding platforms use these Bulbars to save weight without compromising on the strength. We are a naval-approved source for this particular product, and most of the shipyards are our customers on that front. Next is the special steel alloy welding wires and the welding electrodes. These have very special chemistry, having the precision control of titanium, nitrogen, nickel, so on and so forth. These are used for welding of critical platforms or, you know, surface ships, the underwater platforms that are there. We have got certified by this by specialists from Russia to get these approved that is an extremely difficult chemistry to achieve and further process is because of the inherent property of the steel that is there. But we are approved suppliers for the same and have been supplying that the past few years. On the left is the ballast bricks. This is typically used mostly in underwater platforms, underwater boats, as I mean to say. These are used as artificial weights to create the right buoyancy and the balance in an underwater platform. The specularity of this particular product is there that this has a very low magnetic permeability, making it very, very difficult to predict on the radar, to see on the radar set. And all these products, the bulbars, the well-consumables, all of them were imported from Russia prior to our development. We have been focusing on working on indigenized products which were otherwise imported by the armed forces. The next product that you see is the armored steel profiles. These are Russian steel profiles which are used to manufacture the T-90 tanks of the Indian Army. We are supplying this to HVF at Chennai. Again, these are used for the chassis construction of the tanks. That's what we are supplying. The next product is the improved space heating device, as we all call. Or this is simply a room heater, which is used at high altitude to keep the room warm. Because, you know, we have the highest battlefield in the world at temperatures of minus 40 or something. This uses solar and kerosene or battery, whatever electricity is available, and ensures there is no emission of carbon monoxide, Which we all know is a poisonous gas. This was under a DOT with DRDO lab. That's our customer range, the Army, the Navy, all the different shipyards, and now even HPF, which is Armored Vehicle Limited Factory, too. These are the product range that we manufacture in the dairy side, the milk cans, the milk cooling tanks, the milking machine, and the robotic milk collection units. Let's see a few hands up there. Let me finish my presentation, then we can take up the questions. Thank you. I pass it over to Manish Bhai to just run through quickly the financials of the company.

Manish Bhai, over to you. Thank you. Thank you, Ankur Bhai, and good afternoon, everyone, and thanks for having me. So, I think we delivered a strong operational and financial performance in FY26 reflecting successful execution in the defense manufacturing segment and improving the operating leverage. So, the key message on this particular slide is that, you know, our revenue for Q426 for the quarter ended 31st March 22 since 2026 was 648 million rupees, showing an increase of 42.2% year over year. EBITDA was 161 million rupees, showing an increase of 55.1% year over year. EBITDA percentage to sales for the Q4 was 24.8%. Reflecting 206 basis point increase year over year. Net profit for Q4-2026 was 128 million rupees, showing a year-over-year increase of 72.9% and net profit as a percentage of sales for Q4-2026 was 19.7%, sorry, 350 basis point, 351 basis point year-over-year. Moving on to the annual performance, for that matter, for F526, we recorded a, you know, staggering revenue of. 2448 million rupees, showing an increase of 29.1% over last year. Similarly, the EBITDA for the year was 520 million, showing an increase of 69.9% year over year. EBITDA has a percentage of revenue for the year 2024. It was stood at 21.3%, showing an increase of 511 basis points year over a year. Net profit for the year was at 413 million rupees, showing an increase of 85.6% year over year. And net profit as a percentage of revenue was 16.9%, showing an increase of 514 basis points year over a year. As on 31st March 2026, needless to reiterate, you know, we had a very strong order book and a strong tender pipeline as well, amounting to 1034 million rupees and 2210 million rupees, respectively. At the same time, during the year, we were able to create liquid reserve of 650 million rupees, reflecting a liquidity enhancement for that matter. Next slide, please, Ankur sir. Thank you. So, on slide number 10, the key message on this particular slide is, from a compounded annual growth rate perspective, between financial year 22 and 26, Krishna Defense's revenue was increased by 52.8%, EBITDA 67.4%, and net profit 102.4%. Moving on to the next slide, please. Thank you. So, whatever story I just narrated, this is the graphical and the pictorial presentation thereof in terms of operating revenue, EBITDA, and net profit. Moving on to the next one, please. And similarly, the very strong balance sheet. And, you know, whatever you see from a profit perspective, you will see profit is strengthening the balance sheet at the end. And I'll take a pause over here, handing over back to Ankur sir.

Thank you very much, Manish Bhai. You know, since the financials are over, I'll talk about the key highlights that we did in quarter four. It was a major, we got a design wing for an aircraft arresting gear. These are basically, it's a system that prevents the onward journey of an aircraft if it were to cross at the lines of a runway that is there so that it does not overshoot. So think of it like a goalpost that is done. We added to our armored steel profile range from 17 that we are supplying to 26 because of the confidence level that the customer had in us. So more and more profiles are being given to us. Very key certification that we got is the AS9100D certification, which is a mandatory quality certification for you to get into the aerospace particular components. We also got our IRS certification, which qualifies us for the commercial shipbuilding. Remember, we already had the DNB and the EBS. Now we also have the IRS certification. In addition to Bulbars that we were supplying, we also managed to supply a few other profiles which are used for commercial shipbuilding. We purchased an adjoining chain. It's about 50,000 square feet block for the capacity expansion that we are looking to do. And as Minishma explained, we were able to create an FDR of about close to 65 crores through the balance sheet so far. Taking on just giving a generic glimpse of what we did over the year, there is a capacity, you know, we doubled our capacity from 2,500 tons of Bulbar to about 4,500 tons of Bulbar in April 2025. We also successfully developed a few large castings, which is in addition to the product range that we could offer to the Navy or for the critical platforms. We also got the BV certification, a big milestone for our company when in December we migrated from the SME board to the main board. We are under construction of India's largest AUB in partnership with Navy and BRGO. We have a transfer of technology from NIO Goa, NIO stands for National Institute of Oceanography based on Goa for the seaboard. So we've taken the DOT and we are building the product. We were also, we signed an MOU with the Ministry of Steel for developing strategic steel, which is used for the defense sector, and it comes from a PLI scheme. And, you know, since we did our expansion for Shade, we were doing to cater to the growing team that we have at Factory. We now have a new office building at our HALOL premises. We also have a 20% stake in a design company called Conceptia, which in the last 15 to 18 years has been into ship and submarine design and block design, so on and so forth. We also have a lot of 40% stake. That's an associate company in Wave Optics Defense Solution. This company specializes in making modules which are used for conversion of radio frequency to optical fiber and optical fiber back to radio frequency, having several applications across the military. To manufacture and supply composite fire resistant doors and hatches, which are used at the Navy site. This is a replacement to the current steel door hatches that are used, which are heavy, difficult to maintain, and difficult to replace that is there. These are much lightweight, and most of the European Navy's are moved towards that. New prospects that we are adding to, we are adding different additional grades of well consumables that we are doing. We are supplying only to a few platforms. Now we are increasing the range that we can do. The customer or related customers have confidence in our ability to assign us with new development product, which India is still importing. So that is a way forward that we look forward. Additional components for Hull Structural, as I mentioned, we are trying to increase our product range that is there. We've also had a joint venture, you know, we've taken stake in a company that is building smart ammunition, ammunition systems around, particularly for the Navy. They have been focusing on indigenizing imported steel weapon systems that are there. So this is something that we likely to take up and AUV is under the prototype scale and the C-BOT with NIO-GOA is something that we are looking forward to. So this is where the new change for us is likely to come through. We aspire to grow at a rate of about 30% plus for the next few years and this is how we are going to get there. We've delivered so far and we are very sure that we will continue to deliver as we move forward. So that's it from my side and we could stop the presentation and get to the question answers. I see a lot of hands up.

Thank you, sir. So, all those who wish to ask a question may use the option of raise hand. If you're not able to use the option of raise hand, you can post your question in the Q&A section as well. So, we'll take the first question from the line of Mr. Bharat Gulati. Mr. Bharat, you can unmute and go ahead, please.

Yeah. Hi, team. Thank you. Strong set of results. Congratulations on that. My first question was just for Manish, sir. It was a bookkeeping question. The 65 crores of liquid cash reserve that we've spoken about, I just wanted to see, is that reflecting in the balance sheet in other financial assets? And is it coming in the long-term section?

65 crores that you're referring to? It is reflected in the just one second. I'm just pulling out the balance sheet. It is reflected in the long term. So if you go to non-current asset and where you see financial asset, there is a section for others. Having a balance of 77 crore rupees, 76.87, there that is part because it's a long-term fixed deposit. So as per the Indian accounting standard, whatever fixed deposits that you have, you know, these days the way India has worked is, so before I move on to that. This is the first year for us to adopt the IND-AS because this is the first balance sheet that we are publishing after we were onboarded on the main board, and 31st March 2026 is the first time adoption of IND-AS, and now as per IND-AS, you know, the fixed deposits that you are having, earlier we used to show, you know, You take the cut-off date, 31st March 2026, down 180 days, and show short term, long term, but now that is gone. Whatever fixed deposits that you have, you consider from the date of deposit, and hence everything was shown in the non-current asset. Does that help? Bharat?

Yeah. Hello. Yeah. I couldn't unmute. Sorry. Yeah. Yeah. That helps us. So just trying to understand. So our cash balance is sitting at north of a hundred crores right now. Would that be fair to say?

You're right involved, but you're right. Yeah.

Got it. Got it. Got it. I'm just trying to understand that the major Capex that has undergone that we've seen in the cashflow is primarily for the Chennai and the rest of the land that we've acquired in Halal. That would be right.

That's right. So the capex break up if I have to give you. Yeah, so that's right. I think in ballpark what you're saying makes sense.

Got it. I'm just trying to understand that. How do we plan to fund the capex for our JV with Wabo? How do we plan to do that? Do we plan to infuse more stake in the JV, which we already have put 51,000 into? And how much will that amount fructify to any?

Yeah, the amount that is going to be required, there's no scope of increasing the stake further from here. It's 51%, the Dutch guy will not let us increase any more than that. And the initial investment, 50% investment is going to come from their side. And the funding required is about 4-5 crores only from our side. So which we can do from an internal. We don't have to plan or take a debt to be able to fund that.

Got it, got it, got it. So it'll be, I mean, how will the, how will the books look like? Will it come, will the Capex be on our standalone books? So it'll have to be in the JV books, right? So just trying to understand, will it be a loan to a JV? How will that work out?

It will be in the JV itself, right? It's a capital of the JV. It will be part of the JV.

So JV is an independent entity in itself for that matter. And it will be having its own Mootshaw accounts. And certainly, you know, part of the 51% of whatever profit that you see over there, that will be clubbed with us. When? From this year onwards, from 2026-27 onwards.

So just a clarification on that, we wouldn't be getting the entire consolidation of the JV books into our consolidated books. We would just be having it as a share.

That's right. Company that is being formed. It's a new company that is being formed that is here, right? What is the rule for everyone? The same rule applies to us, right? So we don't have a choice whether you can do this or you can do that. It's a 5149 new company being formed. So whatever the rule, whatever you can consolidate will come on our balance sheet that is there at the consolidated balance sheet level.

Got that. Got that. Got that.

Thank you, Bharat. We'll treat that as a joint venture, not as a subsidiary. That's a technical discussion. This is not the right time and right stage to discuss that, but I thought I'll just clarify that. Sorry. Over to you, Bharat. Thanks.

Thank you. We'll take the next question from the line of Mr. Rushvit Ranga. Mr. Rushvit, you can unmute and go ahead, please.

Hi, sir. Thanks for the opportunity. First of all, many congratulations for the good result. So my question is that what is the margin guideline for the FI 2027 for the upcoming year?

There will be an improvement from here on that is there. So as a company, you always aspire on how you can increase your margins, percentage margin that is there. So we aspire to keep an incremental curve on that. That's what we see. So it will be higher than what is now. That's what we aspire to be. But look at the conditions that are happening right now. Very difficult to predict what's going to happen in the next nine months, right? But we aspire that we will show an update in the margins in the coming years.

Thank you.

Thank you. We'll take the next question from the line of Mr. Karan Singh. Mr. Karan, you can unmute and go ahead, please.

Thank you for the opportunity and great threat of number. So actually, when I was looking at the order book, right? Currently, we have like 103 crores of unexecuted order book. And for the pipeline, it's around 220 crores. And if I'm not. If I'm right, like, generally, when we try for the order book, we get like half of the orders, right?

Like in the past.

So it would be safe to say that the total order book for next year could be 220 crores, right?

As on 31st March, if we stand on 31st March 22, 26. Yes, what you're saying is correct.

So then how will we be able to grow next year for like 30%.

So how does, you also have something coming in, right? It's not going to be a dry patch. This, that's why I said this is the position on the 31st of March, 2026. And these tender, these tender pipelines, these are not tender that we're expecting. These are for which bits have already been squitted.

Okay. And now we have a solution that we have recently acquired or invested in. So, we have already got some revenue traction. I know it's very early to say, but still.

Sir, you are only answering all your questions, sir. You know, this is a company that is building a smart weapon for the naval systems per se. So it's under development, it should take at least about two to three years for the product to get developed. And post that we will be talking about revenues coming forward. So it's a great team over there. And we've been having long conversations with them. And that's how we decided to invest with them. And collaborate with them. It's just not a financial involvement. It is going to be an involvement that will help them build jointly build the product that is there.

One last question. Now our operating cash flow is positive, right? This year. So will this trend continue in the coming quarters and years? Like anything that you can tell about for next year at least?

Sir, you just have your processes better. We have our processes better. So we will, of course, try to maintain a positive cash flow.

One last question, sorry. If we see H1 to H2, technically our revenues have been flat. And our margins have improved, but revenues have been flat, right? Any reason for that?

No, sir, I would not see it like that. You have to see it from a year-on-year perspective that is there. And H1, H2 flat also is not the correct way to put funds across is because if you compare to last year, there's been a 30% rise from what we did last year per se. So there has been consistent improvement. Now, you know, we love it when the corporate floor is very heavy and, you know, that takes about 40% of the total revenue for the full year. But actually, at the company level, you are trained for resources, be it financial, be it manpower, be it machine resources. So we've been trying to balance in such a way that we get equal, all quarters equally, where everyone is comfortable, all your resources are not overstretched, that is it. So I would look at it from that perspective rather than seeing it from a quarter to quarter comparison perspective.

When you were talking about the Chennai thing, right, that you were able to, you're not able to complete regarding Chennai, when you were talking about the presentation, you're talking about the Chennai plans, right, that you have. Can you tell in detail?

Not complete. No, I didn't, I didn't say anything not complete, sir.

No, you were telling, no, we are planning something in Chennai, which I will tell you in detail, but you are not doing it.

We are planning over there.

We are planning to do our Excel AUE work. The AUE work that we are doing will be done over there with our partner company over there in Chennai.

Okay. Thank you very much for the opportunity. Thank you. Thank you, Karanji.

Thank you.

Thank you, Karan. I would request all the participants to please limit yourself to two questions per participant only. We'll take the next question from Mr. Varun Arora. Mr. Varun, you can unmute and go ahead, please.

Hi, sir. Thank you for the opportunity. Just, okay, you suggested for 30% CAGR revenue you will target. Am I audible, sir, to you?

Yes. Loud and clear, Varunji.

Thank you, sir. So, similarly, similar growth you're targeting for FI27 and FI28, if I'm right?

Yes, sir.

Okay. So, the margin expansion happened very good in a way from March 25 to March 26, 16 to 21%. So, for FI27 and FI28, how are you predicting your margin or if you can give some guidance on that part?

Then the incremental per se, one of the reasons for the specific higher margin throughout Fi26 compared to Fi25 is due to the product mix. So earlier we were only doing pulp bars, right? But now we have other products in an angle which is your armor steel profiles, your weld consumables and a few other products that we are doing. There the margin percentage is higher. So that's how the balance tradeoff comes in. And we assume that we will keep growing in that state that is there, but to expect every year the margin will keep increasing by 5%, no, that's not a reality, right? That's not a reality that is there. It will increase, but it is not going to be every year 5%. That's not fair. Let's be realistic on that.

Right, perfect. But can we expect the similar margin trajectory for FI27?

Yes, yes.

This product mix will remain the same? Maintain.

Maintain, yes. Assuming the product mix remains the same, we'll see an update. Plus, operation leverage kicks in, right? Operation leverage also kicks in, so that does help too.

Okay, sir. So, on Conceptia and Wave Optics, if you can tell or you can enlighten us for contribution from these two things for FI27 and FI28, that would be very helpful. And, yeah, I'll take my last question in just next month, sir. Please.

So, uh, these two companies also, both Concepcia and Wave Optics, uh, as per their projection, they will also be growing Concepcia at about 20% and, uh, Wave Optics at about close to 30 odd percent. That is it. That's what their plan for the next financial year is.

Okay. Okay. And any other segment you are targeting organically or inorganically, you know, in FI27 or FI28? That's my last question.

We are targeting definitely to work on the smart ammunition because we see that's one area that we need to work on. And also with the AUV. So these two or three segments are something that we will be working on.

Okay, thank you.

Thank you so much.

Thank you, Karanj. Thank you. Appreciate it.

Thank you, Varun. We'll take the next question from the line of Mr. Shivam. Mr. Shivam, you can unmute and go ahead, please.

Yeah, I said thanks for the opportunity. Thank you. So my question was with regards to the previous two participants question in follow up to that. So we have acquired around 47% in Tharabadka solutions. So I'm very interested into the opportunity for the company from the smart animation space. And I had also gone through the comments from Professor Colonel Tharabadka that he had We had received a grant from IDEX and like we had got an... So I wanted to know, so like you were told that for the past two to so you were looking it from a next two to three year perspective. So my question is from a long term perspective, not two, three years from a five year perspective, how much opportunity can we see for the Krishna defense? The first question was this. And second, also to an addition to the previous participants' question. So what was the contribution to sales, profit, and the order book position for Wave Optics as well as Conceptia for H2 as well as financial year 26, full financial year 26? Great.

Yes, Mr. Shivan, firstly, appreciate the in-depth research that you had done on the acquisition that we had done. Honestly, when I first read about the company, when I had not done so much research in the short time that you managed to do it. So congratulations and kudos for the research and the reading that you've done. You're spot on with the thing. The company that we have invested in has a 25 crore grant from the Indian Navy to develop this particular product. which actually is coming from Leonardo, the Italian company, and the forces are looking to indigenize that, because we don't want to be import dependent. We want to start to manufacture and indigenize the same in India, because, you know, with the world scenario, we don't know which way it is going to go. And if you have an Indian vendor for that, what more than that? So the Navy is funding the development for the same. And in terms of what the long term plan is, it'll take about two to three years to successfully develop the product. That is there. Post that, very high numbers that are there, it may not be the right forum for me to talk about these kind of things at this forum, but pretty large numbers and which will benefit both our country and us. So that's on the first part. Yeah, that's on the first part.

In addition to the answer you gave, like currently what the Indian Navy is importing from Leonardo, the dart ammunition is costing around 20,000 euros to around 50,000 euros. So this was the expectation that I could find from my research. So are we trying to cost optimize on that front as well?

We don't have the product, right? So first thing that you want to do is first make the product, then think about how would you want to optimize the thing that is there. And as you know, if you're trying to make a product that they are doing, you're going to be pretty certain that you will be able to do in a better price than what they are doing in. So, once again, appreciate the price points that you've got. They're in that range, not exactly there, but in that range that is there.

Thank you, sir. And, sir, second question, the contribution numbers like sales, profit, and order book position for WaveOptics as well as Conceptia for H2 as well as H2,

H1 level, but I can give you at the full year level, which would serve your purpose, per se. When we look at Conceptia, they did a revenue of about close to 80 crores that is there with a pack in the range of about close to 5 crores is what they did. And their order book is in the range of about 20-25 crores per se. When it comes to wave optics, they've done a revenue about close to 22 or 23 crore rupees with a pack margin about close to 5 to 5.5 crores rupees for this financial year. And their open order book position is about close to six crores.

Okay, thank you. So these numbers were for the full year, right?

These numbers were for the full year.

Yes, yes, yes.

Thank you very much.

Thank you, Shiva. We'll take the next question from the line of Preet Shah. Please, you can unmute and go ahead, please.

Hello. Am I audited? Yes, you are. Yes. Thank you, sir. First of all, congratulations for the amazing set of numbers. Sir, my question is, what would be the, like, from where will be the growth for FI27? Could you explain me in just, like, brief that from AUV or from Bulbars?

So the growth trajectory that we are showcasing for the next couple of years at least is going to come from our primary products itself, right? And the growth that we managed to do with the new addition, with the new modification in the products that we do. So we are not building in any projection from the AUV or the smart weapon to go with because these are all under development kind of products which may take time and which may get delayed. So the projections that have been given are coming from our existing and developed products per se.

Got it, sir. One last question. What would be the order book by the end of the year? Like, what do you see by the end of the year?

Sir, this is a very difficult question, but what I can tell you is we see ourselves growing at about 30% plus from year on year. At least for the next three years, I can have a clear visibility of the products that we are doing. So you may do the backward math and you will have an answer. It was very difficult to say on one particular day what your order book, opening order book will be like.

Thank you, Brita. We will take the next question from the line of Diyajain. Diyajain, you can unmute and go ahead, please.

Yes, sir, am I audible?

Yes, yes, yes, Diyajain, you are.

Thank you, sir, for the opportunity. So this aircraft resting air system, this order that we've got, can you quantify it and when we are expected to deliver it?

Yeah, so quantify as in what quantify? What do you want to know on the quantification? Diyah, can you explain what you mean by quantification? What are we looking at?

How much revenue are we expecting from this?

So, yeah, it's a developmental product. It's under development. It will get developed there. So, the focus is right now to be able to successfully build the product there. I may not be able to reveal the exact value for the same for want of the NDAs that we have. But this is not clubbed into the revenue that we are looking to do, FI27, FI28. Right now, it's for developing of the product. Once it is developed there, then we will talk about the future revenues.

Okay, so, and the pipeline of 220CR that we have, can you give us a timeline of when these can be realized?

This will be realized in FI27.

Okay. So thank you and all the best.

Thank you. Thank you very much. Thank you. Thanks. Thank you. The next question from the line of, uh, Mr. Rohit, uh, Mr. Rohit, you can unmute and go ahead, please.

Yeah, hi, Ashwin. Ankur is the name. Oh, sorry, Ankur. But that's my father's name, so... My bad, my apologies.

No, no, that's great.

Ankur, I just wanted to understand, what is the quantum of orders we got this year in FY26?

I don't know the math that is there, but we were at 190 crore order book as 190 crore order book to start at April of 25. We executed about 244 and we are outstanding with about 100. So, you know, you could do the math around on how much did we get in this year.

Okay, so So as per your presentation last year, the orders received in FI 25 was 266 crores, we executed 245 this year, and we are closing order book of 100 crores with a 200 crore pipeline. Is there some sort of slowdown that happened this year or there was less tendering or the industry dynamics are the same?

Industry dynamics, the requirements, everything is the same. So what changed is, you know, we had, we had operations in the four or five months, the focus of the government was on immediate deployment that is there. So what whatever had to come between April and September, October, all got pushed back for five months. So that's the reason that you're seeing. And the times that are there, you know, at that kind of times, you're looking at immediate deployment, procurement or emergency procurement, as you call it. The products that we manufacture in terms of pulver, welcomeables, and so on and so forth, these are all used for constructing of the platform that is there. So there was an interim thing that is there that happened. And hence, you see all the orders which would like to come in Q1, Q2, got pushed by to Q2, Q4. That's one point that is there. Secondly, is because the shipbuilding cycle now, they are expecting all the vendors to gear up and deliver products much faster than what it was before, what it was before. Like earlier, we would get 12 months to deliver the goods, but now they expect us to deliver in six months time, have production planning in such a way now. And we have also been able to deliver now because of our enhanced production capacity that we did in April 2025. So there's no change in the ground reality that is there and in the projection. But there was a pause for four or five months for the reasons that I told you first.

Thank you. We'll take the next question from the line of Mr. Rahul Shukla. Rahul, you can unmute and go ahead, please.

Yeah, sure. Thanks for the opportunity. First of all, I think congratulations to management for great execution and delivering to the previous promises. Yeah, so I think my question is already taken into bits and pieces. Just want to enhance on the order book. So we are saying that we are running currently with the 100 crores order book and that pipeline. So obviously, I understand you mentioned that those will be materialized in this financial year, but from a growth perspective, we are targeting 30% growth. So that is approximately 300 crores of revenue that would be clocking this year.

Right, right.

So approximately if I go by 4060 combinations, around 120 for 30 crores, 150 crores would be the first half. And we are having only an opening order book of 100 crores. So out of those pipeline 200 crores, are we anticipating the conclusions to be made within the first half itself? And also, I think in terms of the further order pipelines, so is there any workaround where you are, you know, willing to bid for another 200 300 crores of pipeline to complete that You know, window of 300 plus.

Yeah, so because we know what the projects are coming up at the naval side, right? And hence, we have the confidence that we will be able to get to the growth target that we have given. And that's the genesis that we are building things on. Now, you know, the position that we reflected is clearly on the 31st of March, 2026. After that, a lot of things have a progress that is there. And, you know, we expect that most of the tender pipeline that we have indicated should fructify in the first half. Some of them actually got fructified as we speak right now. But others are also likely to get fructified in a very short time. So all in all, if you see, we see ourselves getting to the target that we have achieved, looking at the pipeline that are there. And, you know, this is all publicly available data that is there with the new projects, with the next generation corbets, aid boards, you know, the LPDs, the multipurpose vessel, the MCM that's likely to come up. All these are projects that have been cleared, and some of them are in finalization stage, some of them are in the RFP stage, some of them are at the stage when the AON for all these projects have come in. So we don't see any letdown or slowness that is there. There was, as I mentioned previously, there was a letdown for four months that is there. It's because of a very critical situation. But I think we are over it now and we are looking forward.

Okay, fair enough. And I think just to build on to that as a follow-up question on the nature of orders that we are willing to bid for, I mean, is there any change in approach from management or market conditions? Because I think the single largest order that we have received in the past was last, I think, in October 24, where we got 90 crores out of order. So are we going for more of a number of orders with a smaller size rather than single biggest order?

Oh, it is more of a market delay. We honestly had no control over that. Now, the customers are also becoming smarter. They are wanting to place their orders in batches so that it's easy for them to do the inventory. They're not going to give us 12 months or 18 months to deliver. Now they expect us to deliver in six months time because they want to keep the minimum inventory levels at their side also. So they want to improve that side. So the order quantum has remained the same, but they've just been broken up into smaller. And honestly, for us, either is okay if you give us one big order or you split it up into parts that is there, either is okay. And we are willing to take anything that comes our way.

We'll take a few questions from the Q&A window. There are two questions from Yash Jain. What is the addressable market potential for the Jal Kapi program? And when can we expect the first order? And what's the likely size tentative indication of product variants?

Right. Now, this answer is very difficult to give how much is going to be the actual market size for that. But I would say the Navy has a year.

Ankur, we lost you for a minute over there. Yeah, please go ahead, please go ahead.

Yeah, I don't know who asked the question, but on the chat, so the Navy has earmarked a budget about close to $1 billion on the autonomous AUV space that is there. Now, how much of that falls in this particular category? Very difficult because the product is not even ready right now, right? The product is in a development. Once the product is developed, the concept of operations or how it is going to be used is looked at, and then the future of the same will go forward. But just to give you an idea, worldwide navies are buying this literally by the billions that is there, the navies who have successfully developed, the countries that have successfully developed it. So the potential for the same is very, very large, but to quantify it, not very easy.

His other question is, why are we now exploring different products in defense, especially casting trials and arresting gears, and do we already have soft commitments there, especially when our core business is already seeing strong demand?

We are trying to grow our product basket that is there. And, you know, we are using the same infrastructure. We already have a steam melting. So casting is a natural tilt that we are getting into. So there is no, we are adding to our product range using almost the same infrastructure.

The other question is from Mr. Sampatnaya. With the current capacity, can we do 400 crore revenue organically?

Yes, we can. Yes.

We'll go back to the Q&A.

Thank you. We'll take the next question from the line of Shikha Mehta. Shikha, you can unmute and go ahead, please.

Hello. Hi, Ankur, sir. Can you hear me?

Yes.

Congratulations on a great set of numbers and especially on the margins. I just had a few questions first regarding our new ventures, our new products. So is there any, you know, time we have in mind that below a certain amount we don't look at new products? So can you help me with your thought process behind the new products we're trying to get into and how we identify which ones are worth getting into and not?

So, Shikap, TAM is a criteria that is there, but that's not the only criteria. Sometimes you want to do an order because you want to get inside a particular lab, as you want to get inside a particular segment, where you may not have the choice to make a complex platform or a platform which has a large addressable market in excess of 100 crore to straight up. So, you may have to start small and then eventually grow with adding your products that is there. So, addressable market is a thing, but that's not the only thing. I hope you can understand what I'm trying to say.

Right. Got it. And so, on our existing product range, mainly bulb bars, welding wires, and electrodes, steel profiles, and the composite doors and hatches, can you give a ballpark time of what we can do in a best-case scenario peak?

The TAM, what we can do right now at the infrastructure that we have, as I mentioned earlier, we can get to a 400 to 500 crore in the same infrastructure with some modernization automation that we built inside. That is something that is achievable, provided we get the right product mix for the orders that are there.

Understood. And what would be our product mix for, you know, FI26?

Sorry, I missed your question. Can you please come in?

What would be our order book for, sorry, our product mix for FI26?

About bulk parts are close to 60%. The welding wires is about 15 odd percent. That is it. The HVF, the hard mercy profile about 15 odd percent. And, you know, roughly around that. Then others would be another 10%.

Got it. And this is broadly what we'd like to maintain for FY27. Yes, yes, yes. Maintain these kind of masks.

True, true, true, true.

All right, all right. Thank you, Shika. Thank you. Yeah, I'll come back in the queue. Thank you.

We'll take the next question from the line of Prem Sony. Prem, you can unmute and go ahead, please.

Hi, Madhuban.

Yes.

Yes. Hi. Congratulations, sir, for the good set of results. I have a question on our customer segment. Can we have a figure or percentage in terms of what kind of revenue is contribution from the highest customer?

I think it's difficult because it all depends on which shipyard is going to get the particular platform that is there. So last year we did two customer X per se, this year we did customer Y. But all in all, these are the six, seven shipyards that we transact with and there's a fluctuation in amongst them.

Can we have a ball per figure for top five players even in A, B, C, D in this way?

It is not, but I'll give you the figure for the last year, FI 26, but it will vary from FI 27. See, the moment the ship is going to be built, they're going to require our product per se. They're going to require our product, right? So whether the shipyard A is the tender, tender, tender, tender, tender, Hello.

There's some disturbance at your end.

Thank you.

Please go ahead. Yeah, apologies. I had some internet issue at the office. So tell me, please go forward.

No, no worries.

So we were discussing about the customer contribution from our current revenue. Like, can we give a ball ball figure from A, B, C, D in this way?

We would put to the customer A about 30%, the other one about 20% and...

Okay.

I'm convinced you've lost two of them.

Yeah. So about 40% of the revenue, 35% comes from one particular customer, but that keeps changing. So that's a shipyard for us, for a shipyard for us, and the rest follows accordingly. So we have five, six main customers that give us the entire business. Okay.

So, sir, like I was reading about some of the shipping companies on call. So I got to know that there was a some next gen Corvette order is going to be lined up in next some days. So there is a value value will be around 33,000 crores. So can we as we are the one of the like we are one of two companies one or two companies who are into the niche product delivering kind of thing. So can we expect some order from this segment as well?

Yeah, 100%, sir. Not some, we'll get whatever the requirement of the products that we are doing, we are certified for the product. That part order will surely come to us.

So, this will be the order for Bulba, right? Yes.

Yes. Yes.

So, assuming 33,000... Hello? Hello?

Yes, please go ahead.

Yes, yes, yes, thank you. Yeah, so assuming a value of order 33,000, can we expect as we have a 10% of composition, which is for Valbar in the O-ship? So can we assume 10% or 7-8% like a value of 33 or 3000 crores of O-dobo?

No, sir. The 10% is by weight of Valbar that is the O-ship. It is not the values of the... Okay.

Okay, okay. Okay, fine.

Thank you. Thank you, Prem. We'll take the next question from the line of Bhavya Gandhi. Bhavya, you can unmute and go ahead, please.

Yeah, hi. Thanks for the opportunity. Just wanted to understand, while you mentioned that 200 crores you've already bid for the orders, so what is the number that you are still going to bid for the full year, if you can just provide some number on that front as well?

We'll bid for whatever comes our way, right? There's no finite limit that we'll stop. Our target is to be able to get to the revenue that we are predicting. So there's no stopping to get that. But from the protections that Navy has said and the shipyards, as the gentleman mentioned, we know the number of platforms that are likely to come through in the first half, what's going to come in quarter three or quarter four. That will help us reach our targeted revenue.

Okay, got it. Fair enough. And this order book includes all your new products as well?

No, this is for the products that we have already developed as there, which is the Palpar, the Larmer's Clean Profiles, the Well-Consumables, and so on and so forth.

Got it. And you mentioned something, $1 billion opportunity on the AUV side, if you could just elaborate that, what exactly is that? Is it the domestic opportunity or the total global Thank you very much, everyone, and welcome to the call.

You know, that is what the Indian Navy has earmarked for autonomous underwater platforms. It's not for the product that we are doing. It's the entire space that is there.

Okay. So if you were just to segregate your Bulbar and the other products, for the other products, if you were to calculate the TAM, Total Addressable Market, what would it be like? I mean, in a broader context, a very high level question, I know it's difficult to quantify, but just to understand, you know, what market we are trying to cater to.

I didn't, I didn't understand the question that is that, you know, what we are looking for.

Yeah, yeah, I'll rephrase it. So one we have bulb bar and the existing products and there are new products that you're trying. So if you were to segregate the new products, what would be the total opportunity size in your understanding in your experience could be in terms of revenue potential or maybe the total addressable market?

Bhavya, honestly, first things is to be able to make the product. The other products that we are looking at, the smart ammo, the AUV, the resting gear, these are all in development as I say, right? So there is definitely a large addressable market on that. But to quantify a number, particularly on that, is very, very difficult per se. So very difficult to give a specific number around that.

Okay, got it. Okay, thank you so much. I'll get back in the case. Thank you.

Thank you, Bhavya. Thank you, Bhavya. We'll take the next question from Priyansh Miri. Priyansh, you can unmute, Angkor, please.

Hi, sir. Hope I'm over. Yes, yes, Priyansh, you are. Yeah, great set of numbers, sir. Angkor, sir, I have a question with regards to our... Sorry, with regards to our current order book, I'm new to this company tracking, sir. So are we currently bidding just for Indian one or export one? That is the first question. Second, is the part question of this only? The licenses that you have mentioned, sir, are those act as an entry barrier if we bid for global customer or domestic ones? If you can throw some light on that.

What we have bid is all domestic only. The steels that we are doing for the Balbar, for the Navy or the well-consumable, these are all classified. So we are not allowed to export the same as we speak.

Okay, sir. Next question is, yeah, next question is on the composite door, sir. So I assume we already in like last year before that also we are in business of doing it using a steel for or cast right. So will this composite one will eat up our existing margin, sir, like because I understand this is a better EBITDA or a better margin product because it's lightweight. But given the metal content is also reducing, will it cut down on the revenue also for our existing product? If it gets replaced by India Navy also.

Composite is a replacement for steel door hatches. We are not making steel doors and hatches at all. We are not making that. There is no question of eating up revenue.

Understood, sir. So my questions are answered. Thank you for this opportunity.

Thank you. Thank you. Thank you. Thank you. We'll take the next question from the line of Shiva Kumar. Shiva Kumar, you can unmute and go ahead, please.

Sir, am I audible?

Yes, Mr. Shergobar, you are.

Yes, thanks for the opportunity and congratulations for the great set of numbers. So my couple of questions is regarding the, if you can give any updates on the current, the gel copy project, which is currently ongoing, and if there are any subsequent orders that we are looking for. That was my first question. And second one is on the raw material inflation that we are currently looking on. Yeah. Thanks for the question.

Yeah.

So I couldn't hear parts and pieces, but whatever I could hear, I could just question around. I would say you want to know what the gel copy thing is. The work for the same is progressing as planned. There could be a three months or something delay because this is under a developmental project. So these delays are likely to happen. Such product does not exist as we speak right now in the country. It's under development. So that can happen. And follow-on orders and all will happen post successful development, post trials, so on and so forth. So that's some time away for us. I did not get the third part of the question that you asked.

Sir, my next question is, are we seeing any raw material impact because of the price rise for the raw materials, what we are making the products?

Yes, we are. So it's a global issue that is there. So how could we be insulated? There is going to be uptake in terms of fuel costs, steel prices, all of that. So that definitely there is an uptake in that. There is going to be increased raw material pricing, increased conversion costs per se.

Yeah. So are you seeing any impact on the margins or anything like that or any substantial impact on that? Thank you.

Not there is any impact, but not substantial.

Yeah. Thank you, sir. And all the very best.

Thank you. Thank you.

Thank you. Thank you. We'll take the next question from the line of Karan Singh. Karan, you can admit and go ahead, please.

Thank you for the opportunity again.

So are we taking any kind of special measures to like improve our margins? Like what are we doing in terms of how we can get better margins from here on?

Mr. Karan, you know, improvement in productivity, improvement in efficiency is an ongoing process, right? It's an ongoing process. So by introducing better systems in place, how you can get a lesser rejection, yield increase is an ongoing process. So no one stops that process. There's nothing special. So better processes, implementation, better automation, better yield improvement is something that we are focusing on.

And next year, are we going to see like quarter on quarter results?

Yeah, we are on the main board now, right? So we will have to do it.

And last one question. So currently, we have like a joint venture with Vabo, right? So when are we expecting the manufacturing to start at that plant? And any order book traction that we can expect from Vabo joint venture?

Yeah, so the manufacturing for the same has started. That is it. It's a trial production for the same. And we will see some traction in this financial year.

Okay, thank you very much. Thank you.

Thank you, Karan. Thank you. Thank you. We'll take the next question from the line of Archit Agarwal. Archit, you can unmute and go ahead, please. Hello. Hello.

Yes, Archit. Yes, Mr. Archit, we can hear you.

Yes, sir. Thank you for giving the opportunity. So my question is about the inventory. Inventory has declined sharply from 724 crore to 163 crore this year. So could you clarify whether this reduction is driven by improved inventory turnover and execution efficiency or if there have been any changes in accounting treatment?

There have been no changes in account treatment that is there. It's just a cutoff on that particular date, you know, our raw materials that were away to come in February and March have come in first week of April that is there. But if you saw the average inventory holding that is there, that was in the range of about 40 odd crores that is there. So I would not read too much into it. The reality is not 72 crores, not 17 crores, it's somewhere in between. So the average inventory levels that we hold is about close to 40 odd crores.

Okay, and the other question is about your guidance that you have given the guidance of 30% growth over next three to five years. So could you elaborate on the key drivers of this growth, specifically the segment contribution, which segment will lead this growth?

We are into the defense segment only. So all the revenues are likely to come from that. And with the various projects that are there, the naval projects and the tender pipeline that we have, that is how we see ourselves getting there.

No, I mean product mix like bulbards.

Yeah, so there will be a proportionate increase in all of them, the way it is right now, about 60% revenue will come from the bulbar, 15-20% will come from the armorsi profile, 15-20% will come from the well-conservable and so on so forth.

Okay, so you mean to say that it will be the same, like?

It will be similar, yes, you're right, sir.

Okay, thank you, so that's all from us. Thank you. Thank you, Mr. Archer. Thank you, Archer. We'll take the next question from the line of Karthik. Karthik, you can unmute and go ahead, please.

Yeah, thank you for the opportunity and congratulations to the whole management for a good set of numbers. So my question is on the commercial shipbuilding opportunity. So we've secured the IRS certification recently for a commercial shipbuilding application. So A, what other certifications would be required before we look to make further inroads in the segment? Or is it that we are all set to pursue this segment maybe more aggressively this year? And B, how is the inquiry pipeline now shaping up in this? We're seeing a good uptick in inquiries as compared to last year.

No, inquiries have just started to flow IRS, so we are all geared up to answer your question in short. We are all geared up. If the shipbuilding orders start coming up, we have the certification, we have the approval, we have the bandwidth, we have the infra done that is there. And we did very little last year. The requirement was very little, but now things are improving and we are seeing an uptake. We will see an uptake in the requirements for commercial shipbuilding. Very difficult to put a timeline to the same and quantify that because we don't know which way the projects are going to be shaping up. But we are ready when the opportunity comes.

Okay, okay. And on this aircraft resting gear systems, was it largely being imported earlier? I mean, is it being indigenized currently? And how's the competitive intensity and segment if you can throw some color?

No, absolutely. Yes, it was being imported and the forces were looking to indigenize the same and not depend on any foreign vendor for the same. So hence the indigenization concept.

Okay. Sure. Thank you so much. Thank you.

Thank you. Thank you. Uh, Mr. Karthik. So, uh, due to the positive of time, uh, we'll take this, uh, as the last question for the day, uh, sir, would you like to give any closing comment before we end this conference call?

Yes, I would like to thank the shareholders and the investors that have come in over here. Really appreciate the time that you have spent and the faith that you have showed in the company. And we are confident of achieving the targets that we have given forward as we have done for the past few years. So thank you for all the support that you have consistently shown. We expect that you continue to have the support and the faith in us. Thank you very much.

Thank you, sir. Thank you to the management team for giving us their time. Thank you to all the participants for joining us on the call. This brings us to the end of today's conference call. You may all log off now. Thank you.

Thank you.

Thanks. Thanks, everyone.

Take a bye.