Venus Pipes & Tubes Limited (VENUSPIPES) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Venus Pipes and Tubes Ltd. Q4 and FY26 earnings call hosted by Dan Capital Advisors Ltd. 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. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. Sorry. I now hand the conference over to Mr. Asimhade from Dam Capital. Thank you. And over to you, sir.

Thank you. On behalf of Dam Capital, I welcome everyone today for Venus, Pipes and Tubes Q4 F526 earnings call. From the company side, we have Mr. Arun Kothari, Managing Director, Mr. Dhru Patate-Bolta and Director, and Mr. Kunal Bhuta, the CFO.

I hand it over to Mr. Kotari for his opening remarks.

Thank you, and over to you, sir.

Good evening, and a warm welcome to everyone on the Q4 and FY26 Earning Call for Winners Pipes and Clips Limited. I have been joined by Mr. Dhruv Patel, Director, Mr. Kunal Bhumna, CFO, and SGA, our Investor Relations Advisor. We have uploaded our Q4, A526 Investor Presentation on Stock Exchanges and Company's Website, and I hope you had an opportunity to go through the same. A526 was a year of continued momentum and effective progress for the company. Throughout the year, we remain focused on two key priorities. First, successfully navigating the challenging global environment, the years show multiple disruptions globally, starting with uncertainty around tariff, followed by geopolitical tensions and Middle East conflicts. In today's interconnected world, no economy or business demands untouch when such events occur. The biggest impact is usually seen in supply chains, whether it is sourcing raw materials or exhibiting exports smoothly. Despite these challenges, we navigated the environment well and continued to deliver stable growth. Our backward integration helped insulate the business from growth material volatility, while our diversified presence across sectors and geographies. Also largely supported resalience through the year. While RM prices and gas shortages increase, our strong procurement system and operational efficiency help us manage the impact effectively. However, a prolonged period of elevated RM prices may have some impact going forward. We even focus on driving further efficiency across the businesses to further strong resalience and sustain performance. On the export front, we delivered an 18% growth in FI26, which is a strong performance considering the global situation. Q4 did witness some temporary stockmets due to the Middle East conflict, but our diversified export presence helped us to momentum momentum. Europe continues to remain a strong market for us and our broad customer base across regions has supported in export. At the same time, domestic demand, demand robust, particularly during Q4, we continue to witness healthy momentum from sectors such as power, oil and gas, engineering, and industrial applications. In addition, we are now seeing opportunities from several new-age industries such like data centers are creating demand for cooling and sealer applications, semiconductor manufacturing requires high-quality piping solutions for cooling systems, and solar manufacturing is also opening new avenues for us. We are receiving increasing inquiries from these sectors and already secured an LOI from the data center segment. This reflects growing confidence in our capabilities. Additionally, we as a company also exploring the PNG sector where there can be a good demand for our products. Overall, despite a difficult global backdrop, the company's demand recent and continued to grow across domestic and export markets and further improve its position in the external existing piping solution space. The second major focus area for us during FA25 was expediting our capex brand and expanding our product range. One clear vision for winners has always been to become a complete one-stop piping solution provider for customers. In line with this reason, we had announced our forward integration into fitting along with the addition of higher-grade in welded pipes, tubes, and stainless tubes. I am proud to say that the entire CAPEX program has now been fully commissioned. This is an important milestone for the company and takes us one step closer to becoming a comprehensive solution provided for our customers. Currently, the company's total installed capacity extended at 27,600 mt per annum for welded pipe and 20,400 mt per annum for stainless pipe. Apart from the fitting capacity, earlier we had planned expansion of 4,800 mt per annum in seamless pipe and tube capacity. However, considering the demand outlook and growing customer requirements, we decided to further enhance the project to 6,000 mt per annum by adding additional lines, including 1,800 mt per annum getting operation in November 2025 and 4,200 mt per annum. Capacity-getting operation today. Alongside this, we also added equivalent backward integration capacity for seamless pipe and we are 100% backward integrators for the 20,400 mt per annum capacity to manufacture mother hollow pipe, which will further strong operation efficiency, improve supply reliability, and support long-term security of the business. The expansion significantly increases our product offering and our ability to serve a customer towards a wider range of applications and industries. Our entry into fitting along with our broader stainless steel product portfolio places us among a limited number of players with such an integrated capability. Live not only. Improve our customer relationship but also opens opportunities in fact that we have high technical requirements and strong entry barrier. Going ahead, we believe that these investments will help us deepen our market presence, improve our value proposition for customers and support long-term growth for the company. In regard to our order book, our order book today stands at Rs.450 crore without ROI of Rs.185 crore. That will be recently awarded by one of the leading data centers, and remains well diversified. To conclude, the FY26 was an important year for the company, where we continue to deliver a steady growth despite a challenging growth environment. I will now hand out this call to Mr. Dhruo Patel, who will share key development.

Thank you, RNG. At Venus, we have always maintained an anywhere

to be a one-stop piping solution provider for our clients. In line with this vision, we are now further forward integrating into spooling solutions with a capex of around 70 crores. The investment will be utilized towards setting up a dedicated spooling and fabrication facility, fitting machinery, and related infrastructure. This capex is backed by a 185 crore LOI for order in the fast-growing data center segment. This also marks our entry into data center space, which we believe is a high-potential segment with strong lock-up opportunities. What makes this achievement even more encouraging is that we secured this despite currently not having an existing spooling setup. The beam cost, driven by the company's strong reputation, established welded pipes capability across major SKUs, combined with our newly added fitting capabilities. Which reflects customer confidence in our technical strength, execution capabilities, and ability to scale. This development is strategically important for the company for multiple reasons. First, it enables us to move further out of the value chain and evolve from being only a product supplier to becoming a more integrated solutions provider. Second, spooling solutions carry higher value addition, better realization, and stronger margin potential compared to standalone piping products. Third, this business will create strong backward linkage benefits by improving utilization of our existing welded pipes and fitting capacities, thereby enhancing overall operational efficiency and strengthening our integrated business model going forward. Moving on to other key updates for the quarter and the year. First, we have acquired an additional 15 acres of land adjacent to our existing facility. This gives us a strong platform for future expansion and provides the company with long-term flexibility as we continue to scale capacities, expand product offerings, and enter into new segments. Second, we are further strengthening our leadership and business development capabilities. We have recently appointed a senior marketing professional with deep industry experience to enhance our presence in emerging and high growth sectors. This will help us build stronger relationships with clients in new age industries like data centers, semiconductors, thin energy, and other specialized applications. Third, we have also installed a tandem JCO press for manufacturing longer welded pipes. This is an important capacity enhancement as only a limited number of players currently manufacture such products. The addition of this machine expands our product range, strengthens our positioning in specialized applications, and announces our ability to cater to large and more complex client requirements. With expanded capacities, a wider product portfolio, and strong client's trust, We believe Venus is well positioned for the next phase of growth. We remain focused on building a scalable and value-added business and thank all our clients, employees, and shareholders for their continued support. With this, I hand over the call to Mr. Kunal Gubana, our CFO for financial updates.

Good afternoon, everyone. We are pleased to share that our company has delivered a record performance in the fourth quarter and fully earned it March 2026. On revenue front, revenues from operations for Q4 FI 26 stood at Rs.302.2 crore as compared to Rs.258.1 crore during Q4 FI 25, achieving a growth of 17% year-on-year basis. Revenue for FI 26 stood at Rs.116.8 crore, witnessing a strong growth of 22%. Revenue bifurcation for the quarter was 59% from single size, 34% from wild-dead, and 7% from others. Growth in the seamless segment was 18% on year-rending basis and voltage segment registered a growth of 15% per cube for FY26 on year-rending basis in terms of revenue. Export sales stood at Rs.87.8 for the quarter compared to Rs.1.12.54 in the same period last year. Impact by company disruption rises from the middle list concept. However, we continue to maintain our export revenue share of more than 30%. On the EBITDA side, our EBITDA for the quarter student Rs. 49.4 crore as compared to Rs. 41.6 crore in cube for FI25 with a growth of 19%. EBITDA margin for the quarter student 16.3% compared to 16.1% in the same period last year. On FI26 basis, EBITDA saw a growth of 14%, standing at Rs. 190.6 crore with a margin at 16.3%. Pat for Q4FI26 is Rs.25.4 crore compared to Rs.23.7 crore in Q4FI25, a growth of 7% on a year-on-year basis. Pat margin stood at 8.4% for the quarter. Our EBITDA to CO4 conversion stand at 59% for FI26. We look forward to a disciplined FI27 with a strong focus on scaling operations, efficiently improve capacity utilization, driving sustainable growth across business. Alongside growth, we remain equally focused on maintaining healthy cash flow conversion, operational efficiency, and disciplined capital allocation as we continue to strengthen the company for the long term.

With this, I would like to open the floor for questions.

Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use hands-in while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

The first question is from the line of Parth Housa from Investec. Please go ahead. Hello, Pazzo.

Hello, hello. Yeah, you can hear me?

Yes, I can hear you. Hello, sir. You can go ahead with your question.

Yeah, hi, sir. Thank you for the opportunity. Sir, I have a couple of questions on the new foray. So, I wanted to first understand the spooling business. When will it come on stream and what is the revenue potential and what sort of EBITDA margins are we looking at here?

So, see, we are targeting to get on with this business by hand of this calendar year. And turnoff, we see a turnoff around 3% of investment is expected from this business. And see, it would be higher margin-driven business, higher than what we currently earn in our business. Okay.

Okay. Okay, and then this one, 185 crore order book, this would be executable in what sort of time, time period?

Maybe around 15 months.

And so, similarly, just wanted to get a sense on this JCO, you know, KPEX that we are doing, 12 crores. So, when will it come on stream? What is the revenue potential like? Or also, if you can, you know, give some color on the sizes that, you know, it would help us make.

See, JCO is generally, it's currently we do manufacture from JCO press, but this is a higher size of JCO which can make a longer length of. Also, pipes. So, primarily, it gives a competitive wage where very few in the countries manufacture those land. So, it will help us to qualify for many of the tenders where we are currently not able to, and it will give more visibility on the side of the border. But the capacity primarily remains the same because it is one of the extension of our SQs primarily.

Okay, and this will come on stream by?

It's a more or less we are done with it to be completed.

Okay, and this capex where we increased the capacity instead of 4200 to 6000. So what sort of capex did we incur on this incremental number?

Total for seamless well-written and fitting taken to this it has been more than 200 crores. 100 crores. Got it.

Got it. And, sir, now, like, since we are, you know, adding, you know, this pooling capacity, what sort of, you know, revenue and margin, you know, guidance that we are, we are, we are planning, we are, we are giving for FY27.

See, for FY27, we see actually at least more than 20% growth.

And from the margin perspective, we see it will be higher from what we have achieved.

In the last financial year, and see, we have been saying that it will be more moving towards 17 and then to 18 by 528. I think better level. Okay.

Okay. Okay. So, it will be higher than 16.3, which was reported in 26. Yes. Okay. So, those are my questions. I'll join back in queue.

Thank you. Thank you. The next question is from the line of Sunea from Nuwama. Please go ahead.

Hi, Dean. Thank you all for the opportunity. There's a couple of questions from my end. What would have been the volume growth in this particular quarter as well as full year FI26?

For FI26, it had been around 15%. And for the quarter, it has been around 15%.

Okay.

For the full year.

Okay.

For the quarter rate, it has been around 2% around roughly, around 1-2%.

Sure. And Kunal, can you break it up into seamless and weld it?

Primarily, see, the growth on the side of seamless had been both at 15% seamless and the weld rate was around 10.

Understood. Understood. And what is the guidance now for next year's standard?

Yeah, it's more than 20% for me.

Got that. Secondly, we just wanted to check on your working capital now. How do we see that change in going ahead, and what is the new business that you're getting into data centers and all? What kind of working capital is needed in those, you know, segments?

See, on the sales basis, it's around NWC, roughly around 120 days, near to that. So, we believe it should continue even in the new business also. Similar type of working capital, we are seeing in that type of, in the new business.

Okay, sir, there will be no change in working capital, is what you're suggesting.

Not major, we are seeing any changes.

Got that. And since when are we going to start and what is the total order book standing at at this point of time?

450 plus the LOI what we have received.

Got that. And execution of this new order starts from for data center?

See, it's a LOI being received, so we are expecting the order soon as in when that order being received, then we are building up the facility also. So, as these all things get completed, we'll definitely start aiming it, but we believe the period of completion should be at least 15 months from here.

Understood. Understood. Understood. Thanks a lot, team, and all the best.

Thank you. The next question is from the line of Bhargav Budhadev from Ambit Asset Management. Please go ahead.

Good afternoon, team, and congratulations on a good set of numbers. Sir, my first question is that just on the

basis of this 185 crore LOI, we are incurring a 70 crore capex.

So, obviously, the visibility on this business seems to be much, much higher. So, if you can spend some time on that, sir.

See, just to brief

you about the business, it basically is a cooling which circulates through a closed loop network to the server and critical equipment. So primarily these fluid networks and it is easily being used in modern data centers based in AI and high performance computing environment for advanced thermal management. So primarily, the fluid network offers several advantages like improve higher cooling efficiency, lower energy consumption, improve temperature stability, and it enhances reliability. These systems are particularly relevant for air-driven tanta centers where computing density and heat loads are significantly higher. And see, the capex is definitely towards cooling, but the cooling... It's something which is required by, it's like a feature industry which is using excess pipe can use spools. It is like PEB for piping, you can say. Spools are used to avoid on-site fabrication. So the pipes are fabricated with fittings in the factory and connected by nothing more at the site only. So that sort of spool demands can be there for many of the sector going forward that we are in. Again, it also includes few expansion on the side of fitting and all, which we have currently started also. So, it's a mixed bag, and definitely this order is a new one for us, but further we are working on it, and see more things to come.

And so, this 185 crore LOIS from a single client? Yes. Lastly, sir, on this BHEL new ordering, is there any visibility? We were expecting some tenders to open. So, what is the timeline on that? Any sense?

Yes, Bhargavali. We had already L1 in some of the tender, which we were able to get order in the next one or one and a half month, almost more than 50 CR order if we are L1. So that order we will be receiving next 30 days to 45 days time. So further new tender, we have already participated in number of tender, which will going to open in the month of August to September. By the second quarter of this financial year, we will able to get more order from the BHDR side. Apart from which we are focusing for this spooling operation, because nowadays the AI-based data center is booming market in India, a lot of investment is coming. So that's why we started this facility, which will utilize our pipe and fitting as well. This is a very good opportunity in the entire market. We are first who will do like this facility, We have created this facility in particular in Stanley C5 industry, who is providing this solution to All right, sir.

Thank you very much and all the very best.

Thank you. The next question is from the line of Mihir Damania from Finland AMC. Please go ahead.

Yeah, I think so. My first question is on the 200 crore APEX, which will then lecture from the start of the financial year. to, like, May 2026, around 200 crores. What is, what are your revenue, what is the revenue potential from this incremental CAPEX Act, like, like, safety utilization?

See, if the, see the CAPEX is more than 200 crores, and if it is fully utilized, it's a 100% CAPEX utilization, it can be as a turnover, at least, maybe around three times.

Okay. I wanted to get your sense a bit more on your export side of the business. So this quarter, of course, we saw a sharp decline on the export front. What's your outlook on that? It doesn't seem that the Middle East crisis is going any time any soon. So what's your outlook for the full year going ahead, especially on the export side? It's now almost a third of the business.

See, of the current order book also, we had an export percentage of roughly in the range of around 40%. And for the F-26 entire year, we have maintained a run rate of generally around 30% for each quarter, more than that. So we believe that going forward also more than 30-35% range should continue on the side of export.

Uh, got it.

Uh, and, uh, My third question is, if you look at your company, let's say, on a longer-term basis, for the last almost nine quarters or we are at like a 25-20 floor kind of part range. So, while we've invested a lot, let's say, in like value-added pipes, fittings, increasing capacities in the seamless as well as rendered, that doesn't seem to be not actually showing impact. So, what do you expect FI-27 to be? Do you see like a material improvement in PAD as the quarters go by, or do you see because of the raw material challenges, some inflation, it might take a bit more time to accelerate the PAD growth for the company?

No, the PAD growth should come, and you see the major portion of the cafe has been completed. So, all the available resources will be deployed in the coming quarter to come. So, we believe each quarter should keep on improving and I think it should come and also to the tag number also. We believe it should keep on improving from here. And generally, many of the projects which have been started are value added. So, it seems that it should show the result at the pet level also.

Okay.

Got it. Thank you, Anandibesh. Thank you. The next question is from the line of Sahil Kariya from White Pine Investment Management, Private Limited. Please go ahead. Thank you for the opportunity.

Sir, could you use the capacity utilization number for the quarter and for the whole year for welded and simulates?

See, more or less, for the year, simulates was more than 90-95% and welded something around 60-65%.

And for the quarter, more or less. Okay. Thank you so much. Thank you.

Thank you. The next question is from the line of Parikshit Gujarati from Nivhashay. Please go ahead.

Yeah, thank you for this opportunity. So, most of the questions on the schooling side have been answered by the management. I had just one question on the unit economics. So, what is the...

Amount per megawatt of pooling solutions required. Sir, per megawatt takes on data center, what is the amount of pooling solutions required in terms?

No, really? Yeah, please say.

Yeah, we can make per megawatt the pooling solution required. It depends on the which table data center is going to install the data center operator. So, about this figure, we are not much aware, only the engineer of the data center, design the data center on that basis. We normally, the information is required by the data center, the key, what type of schooling they will require. So, it depends on the type of data center they used to going to install. So, it cannot be a certain, but there will be, we are seeing very good demand of the external pipe is pulling as well as fitting in the data center, because they believe in the quality or they require the reputed player to supply the pipe fitting, because it is in the critical operation, because single penny of dust also can destroy their GPU or system. So that's why all the data center operators want to be supplied by the reputed player where they require the clean room environment and other things. So, in India, we are first, who is the first very temporary center has given us this order on the, after seeing our facility, after seeing our growth, after seeing our quality of the project.

And, sir, what kind of transition for term can we expect?

See, again, these are again soldered numbers primarily, this needs to be seen.

Okay, love it.

Thank you. The next question is from the line of Sahil Sangwi from Monarch Network Capital. Please go ahead.

Hi, thank you for the opportunity and many congratulations for a good set of numbers. I just wanted to confirm the volume growth numbers that you have answered to the previous participants. You said 15% growth on the seamless side. More than 15%, yeah. More than 15%. And on the belted? Around 18% and 10% towards belted. Okay, okay. And how was the pricing behavior for the full year versus F525?

Slightly increased, it was slightly increased, 5 to 7%. But again, because of great mix and all, that has also happened.

Okay, okay. Now, I mean, chain machine prices have risen by about 6-7% if we had to compare from the December lows. So, I mean, will we see that effect entirely coming in by 27? So, your guidance on 20% volume growth, we can expect some bit of more pricing growth on that?

Thank you. Definitely, there had been some increase in the prices of RM and all, but we believe we, 20% guidance, we believe we should achieve on the volume at least.

Okay.

Okay. Got it. Got it. And a general comment on the demand scenario, if you can answer with respect to how things are working in the export market with respect to the disruptions on the Middle East war, the cost inflations, if you're seeing anything, how the gas cost is working for you, and the demand in the domestic market, if you can answer this.

In the US market, we are seeing demand. Definitely, yes, because of this crisis, we are also not able to do much out there, and the order from the Middle East has also been, we are not seeing much flow from that side, but we hope it should improve, and those things also started, we started seeing order from that side. Europe is going as far, we are generally, we have the highest volume in Europe only, and this is continuing in last quarter, and from the domestic side, we are seeing demand in CNG, power, oil and gas, engineering, chemical, these are the four or five sectors where we are seeing demand.

Apart from sizing, right now we have the order book of the 450 crore. Apart from this, we have already issued the LOI for supply to data center exploring solution. That is near about 185 CR. Apart from that, we have already L1 in some of the BSL tender, that is 50 CR. So altogether, we can say our volume will be near about 655 crore visibility we are already having. Out of 65 crores, the export we can take 30% is the export group, remaining is the domestic market. So, at least for the next 2-3 quarters, we are seeing good visibility. Further, new tender and new lot of, we are already bitfalling number of projects in the domestic also. Once the Middle East market will open, a lot of inquiries pending from the Middle East market, a lot of our new appraisers, we have already received some of the new appraisers from oil and gas sector, of the U.S. there, and as well as from the Middle East also. So we will see once the Middle East market will be, the conflict will be over. So we will see good demand from there, but at least for next two to three quarters, we have the good visibility from Europe market, U.S. market, as well as from domestic market.

Perfect, perfect. That is good to hear. And just confirming, you said the spooling business, you expect the facility to be set up by December 26, right?

Yeah, definitely. Perfect. We will do operation before that, but we will do operation before that, but December 26 is the last day.

Perfect, perfect. Well done, well done, sir. Congratulations and all the best. Thank you.

Thank you. The next question is from the line of Deepak from Sundaram Mutual Funds. Please go ahead.

Thank you for the opportunity. Am I audible? Yeah. Hi, sir. So my first question is with respect to this pooling business. If I heard you correctly, you said the asset in this business is around three times, right? And the working capital is similar to, let's say that 120 to 130 days, which we are currently doing in the base business. Correct? Yes. And so if I do a back calculation, you know, assuming a 20% EBITDA margin, so the ROC for this business is more than 25%. Is that understanding also correct?

Yeah, it should be. But again, this 180 code will also include a part of our internal facility of pipe and... And see, each order has their own component of this fitting, pipes, and other bottled components, so this will vary from each order to order.

Okay, and when we say that we have received this LOI from a single customer, the customer in this case would be the EPC contractor to whom we'll be supplying this, let's say, assembled pipes, because ultimately the MEP work has to be done by the EPC contractor for the data center, correct?

No, we have received from one of the data center only. Data center will take this, we have only received this LOI from the data center. Data center will take these materials up or some of the fabricators will install at their site.

Okay. And so, what were the criteria for us to win this LOI? Since it's a new business for us, and, you know, since, as you also highlighted, it's a critical application, any small damage can also result in shutdown of the whole data center capacity itself. So, you know, what criteria were decided before giving us this LOI? Because it's a new business for us.

After seeing our facility, just after seeing our facility, we had the high facility as well as the fitting facility also. Or again, they required the fast execution of their project. So we had given commitment to them to be able to do the fast execution for this, or they had seen our execution. On that basis, they had awarded this alloy to us.

And see, there has been a technical capability team that are with us, which has shown how it can be executed. And see, we manufactured a number of SQs, both on the side of budget simulation, many of the fittings, numerous number of fittings products are also coming underway. So we think that were also a criteria which helped us to qualify for it.

Okay, and in this pooling business, as of now, who would be our competitor, let's say both from a domestic and a global standpoint?

Domestically, for this, there may be some equipment that will be there, who is only, they are having only a fabrication facility or a spoon facility, they don't have the availability of the pipe or fitting. So, we are at the better age, who is providing this solution to data center with the pipe and fitting capacity. So, we will be in better position with them, because everybody, data center operators will get timely delivery, timely execution, each and every thing. So, we are the first one in the pipe segment, who has awarded this contract. Other players, you can simply say fabricators, who are engaged in this business.

Okay. And, sir, for us to convert this, let's say, first of all, you will have some trial runs, right? Only then you will start the commercial supply. So, generally, as per your understanding, as things stands, I mean, how long do you think this phase will convert from trial runs to actual commercial production?

Almost trial run will be over in the Q2 of the final pair, and commercial production we are expecting to start in Q3. Made up the Q3, huh?

Okay, good to hear that. And so one question I had on CAPEX, so given that you are spending 70 crores here, and you will obviously have some other maintenance CAPEX for the base business as well. So for F527, what kind of CAPEX number are we looking at at a console corporate level? 9,200 crores. 90 to 100 crores. Okay. And one last question on our growth guidance. So, you are guiding for 20% kind of growth. Now, but if I look at your order book, so in March 26, we ended with 450 crore order book, right? Which was almost a 20% decline versus previous March where we had a large order win from BHL, which propelled the order book to almost 575 crore. Right. So starting this year on a lower order book, plus you are seeing some weakness in the export market. I understand that Middle East is not a big market for us, but even the U.S. and Europe, because of this energy inflation, you know, they are talking about slowdown in the macro economy itself, right? So just wanted to understand with, you know, a slightly weaker order book and export being a little softer, what gives you the confidence that you'll be able to do that 20% growth? Since this data center business is also commercializing mostly in FY28 or maybe let's say somewhere of this calendar year.

Deepakri, almost if you see, right now we have the order book of the 450 CR of this PIE business. Apart from this, we are already L1 in some of the tender, which is value of the 50 CR, which is going to be complete in the next two quarters. Apart from this, we are already L1 for the data center. For every month, we are getting a lot of inquiries from the local project over here, as well as from the U.S. market and Europe market. So, this growth, apart from this, we are starting the new business fitting segment, which is the part and parcel of the pipe business. So, where pipe is required, the fitting is required. So, seeing all these things, we are confidently able to do growth more than 20%. Even if you will see, this FY26 was also very challenging here. Compared to FY26, we are focusing in this FY26 was more challenging. We have a lot of the Middle East conflict, Russia-Ukraine conflict, then U.S. tariff, a lot of things were there. Even then, also, we were able to achieve more than 22% growth. On the top line. So, this year already we had started with the Capex. So, we are very hopeful that we will be able to do growth more than 20% in the KFA 27.

No, sir, I understand that despite all these challenges, you know, we really showcase a good set of numbers, at least on the top line. So, congratulations on that. But, you know, delivering a 20% growth in FI27 also, just want to know your thought. How are you kind of thinking about it? Let's say, if I have to simplify further, what kind of absolute revenue are we anticipating from fittings and, you know, our new venture, which is your hygienic and titanium tubes, and then the base business in this 1,400 crore kind of rough range, which you are guiding for in 2027?

Because all these things, we can deliver on the one-to-one call to you at any time. So, we'll deliver on that. What's our plan? So, but we are expecting you on all basis. We're able to see more than 20% growth on the altogether pipe business, fitting business, then this spring business, which they are starting. Well, apart from, you know, we are already expanding our seamless type capacity, which was previously run 4,800. This has increased to 6,000. So, we are seeing good demand in the seamless type segment. Apart from that, in power sector also domestically, we are seeing good demand. A lot of projects since last one and a half years in India, apart from this power data center, this oil and gas project, then chemical sector, lot of projects under installation or they are under the filling stage. There is a very good expansion in the steel sector also. If you see all the big players in the steel sector, they are doing a good capacity expansion. The industry sector also, the usage of the SLS pipe day-to-day is increasing, compared to the previously,

the industry was using more MS pipe, but nowadays we are seeing,

in most of the operations, they prefer to use the SLS pipe for the longer life of their plant. This year, we are confident of further the break-up. We can share you in one-on-one call.

Okay, sir. Lastly, any approvals in our seamless or welded or titanium tubes and hygienic tubes that we received in the last quarter, or do we expect any further approvals? Any notable approvals which you would like to highlight, which we think can come through in the next six months? Yeah, definitely a lot.

We received orders from global oil and gas companies, few from a civil treatment plant, few approval from chemical companies. It's a mixed bag, again, from few of the chemical and engineering companies. So, those things are being received in the last quarter, and we are hopeful that out of them, some must be converted in the coming quarters to come.

Okay. Okay. Very helpful, and all the best to the team.

Thank you. The next question is from the line of Dhru Jain from Ambit Capital. Please go ahead.

Thanks a lot for the opportunity, sir. So my first question is on EBITDA per ton across stimulus and value. Could you just give us a brief offer on a segment of it?

On a totality basis, I can give us around 65 rupees per kg.

Okay, all of the end is this. Yes. The second question is on margins, right? So, you know, we've seen a taken margins, obviously, by one. So, incrementally, you know, while you're talking about a 20% plus volume growth, with fittings coming through, with these new solutions coming through, how should we look at margins in FY27 and thereafter? So, that's perfect.

Yeah, basically we said it will be higher from what we have achieved in the last financial year, and definitely the intent is to reach up to 18% on a blended basis by FY28. So we see, hopefully, the intent is to get an increase each quarter to come.

Okay, and so just on, just a clarification on the fittings side, right, now with all the scoping solutions coming through, and you are also adding the fittings, planned, commenced operations today, so how much of that, you know, fittings side will actually be utilized for the scoping solutions, or that will be separate, just to talk.

It's all, again, it's too much dependent on the fitting is also an independence. It's a two set of business for us now with the inclusion of this new one. First will be pipe and fitting business which is here to many

number of asset customers currently.

And second, it will be very new sector like Brata Center, Semiconductor, and asset trust. So it will be two set of business for us from currently with the start. Again, it all depends, it can be sometime 20 to 30 percent of the fitting requirements from internally can be pulled up into spilling. But again, it is again, the.

The next question is from the line of Shorya Shah from Equirus Securities Private Limited. Please go ahead.

Yeah, thank you for taking up my question. So just on this pooling side, right, so am I correct in hearing that this order is on the domestic business front, this pooling order?

Yes. Okay, so can we like classify in terms of capacity for this new spools business that we're sitting out, like are we putting just enough capacity to fulfill this order or will that be enough if we get certain future orders as well? No, see, again, it's a turn of what we said, we have said turn, which would be better to look as spooling would be sold on numbers. But definitely the capex which we are going to foray into will definitely entirely sub this capacity, and again, it will definitely also try to cater to a few more orders to come.

Okay.

And just lastly, since we also have some presence in the U.S. as well, so will we be exploring the U.S. region from this pooling perspective and data centers because that is also coming up in a big way in that region? Yeah, we are definitely open for that. See, we had currently an entire world presence with our pipe and we will be moving to fitting. So, data center anywhere will be open. But as we said, we started with this domestic and see how it ran out and why it got us to come.

All right. All right, got it.

Yeah, that's it for my side. Thank you.

Thank you. The next question is from the line of Sonal from Preston Capital. Please go ahead.

Hi, sir. This is Sonal Minas from Bijan Capital. Thanks for taking my question. My question is with regard to the realization gain that we see in this quarter, given that you mentioned that the volume growth was just 2%, the balance was the realization. Could you just give some subjective commentary on what this realization growth was for? That's our first question.

No, no, see Q&Q quarter, if you see the quantity growth was 1 to 2%, but if I see on year and year quarter, the volume growth had been there of more than 12%.

So, Q&Q, basically, there's not much realisation growth is what you're saying. Got it. And the second question is with regard to the execution status of the BHEL order, what percentage of this order have we actually executed by Q4? If you could highlight and clarify that, that will help us.

Something less than 60% had been executed.

Got it. And just a clarification on the order book. Coming from the power sector and BHEL in particular, we've seen that there have been delays at the end of BHEL on the fabrication side. Anything which you see or get a sense on whether the bottleneck there has been eased off or there is something which you can share, which can help us understand the timelines of newer orders coming from there.

Yeah, as I told you already, we are already L1 in some of the order, almost near about 50th year, and further new order we are expecting, it will be we are participating already in some of the tender, it will be going to open next 2 to 3 months. So mostly we hope in Q2 of this financial year, the number of new tender will be open from BHL side.

Okay, and the pace at which these orders will come will be higher than what we have seen in the last one or two years?

Yeah, definitely, because Bail is also just getting the fabrication capacity. So already all the orders which are awarded to Bail from all the big players is already there. So Bail is also planning to expedite those orders.

Got it, sir. Thank you. I'll fall back in the tune.

Thank you. The next question is from the line of Mahek Talatting from Agility Advisors. Please go ahead.

Yeah, hello.

Thank you so much for the opportunity.

I just want to understand the data center order which we have received for 185 costs. Is there any possibility for higher orders going forward? More orders going forward?

See, definitely the intent we will take from the same customer and also from new customer, that's how we see the business going forward, and that's the reason also that we are putting up a limited capex for this pooling business. So, the intent is very towards those new and the same customer also.

Okay, and so, is there a possibility of further capital investment in the pooling segment if we receive higher on this?

See, currently, it's a good number, the CapEx is for this financial year, but going forward in coming six to six months or something, we see more visibility, more order coming, definitely, as we can think on that line, but currently, this is the amount of CapEx that we are pouring into.

As I just wanted to play a position, we mentioned the 20% per volume root in April 27th, but with addition to everything is coming on screen, is this a conservative number?

The 20% growth is kicking the current scenario, the geo-political scenario, many things are being considered and see, it's always an intent of the company to achieve a higher number, what had been said, but see how it pan out going forward.

And so last question was on the margin, so with the schooling coming down, coming in, can we expect a higher margin?

Again, the answer will be similar. The intent will be to, you rightly, when you establish fair enough for schooling, you can definitely claim a higher market, but again it will be a certain percentage of your total business which schooling will be catering to. So keeping all the constraints, it will be taken into. So we believe the current is up to 18 percent, but definitely the intent will be to achieve as higher we can.

And sir, in terms of Middle East, are we seeing any demand of things from that call?

See, we are quite hopeful that, going forward, this should be a good geography for us for supplying our pipes and all, and we believe when we want the internal conversion and we want to promote, then we should damage control order also coming forward, but again, so, in the city, we need to see how this geopolitical issue ran out, and if this issue, this war issue could come, I think, then definitely we should see.

The next question is from the line of Park Bowser from Investec. Please go ahead. I'm sorry to interrupt, sir. Your voice is very low. Can you just... Hello, hello. Is this better? Yeah, that's better. Thank you.

Hi, sir. Sir, I just wanted to understand the spooling business a little better. Sir, how different is this spooling product versus what Rasnamani does? I believe even they ventured into this one and a half year back. So how different and what is the difference between the two?

Excuse me, what is this? The spooling business is a different type of spooling business. So, mostly the focus of the Rathamani in spooling business was a nuclear power business. Right now, we are going in spooling business for data center. So, every business, every size of the spool, every variety of the spooling is different, considering the nature of the industry, where this item will be poor. So, spooling is a sub, you can say it's joint of the... Five fittings and other products. For any company, any industry who is setting up their plan, they can do on the basis of nutball. So, number of variety business or in the same facility, you can do any variety, most of the variety of the splitting business in any facility. With just a minor case also you can do. So, every company, yeah.

So, sir, would it be possible that even we can, you know, maybe get into nuclear business if the opportunity is big?

Sir, subscribe to the business now. So, there is still a lot of limitations there. So, in the end of the business, definitely, sir.

Okay, okay. And for nuclear or whatever, you know, Ratnamai does, right, in spooling, they do a bit of margin of around 35%. So, are we looking at the same sort of number?

It will again depend on how things can be, as you said, with few more order to come and all.

Okay.

Fair enough, sir. Thank you so much for answering my question. Thank you. In the interest of time, that was the last question for the day. I now hand the conference over to the management for closing comments.

Thank you for all for joining us today. I hope we have addressed all your questions. We remain committed to keeping the investment community informed with regular address on any development in the company. For any further information or queries, please feel free to reach out to us or SGA, our Investment Relations Advisor. Thanks, everyone.

Thank you. On behalf of Venus Pipes and Clips Limited, that concludes the conference. Thank you for joining us and you may now disconnect your line.