Tarsons Products Limited (NSE: TARSONS) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Aryan Sehgal — Promoter and Whole-Time Director
Santosh Agarwal — Chief Financial Officer, Company Secretary & Compliance Officer
Analysts:
Unidentified Participant
Raman KV — Analyst
Jasdeep Walia — Analyst
Aditya Khandelwal — Analyst
Chirag Maroo — Analyst
Harsh Shah — Analyst
Sakshi Pratap — Analyst
Presentation:
operator
Good day and welcome to Tarson’s Product Limited Q1 FY26 earnings conference call. This conference call may contain forward looking statements about the company which are based on beliefs, opinions and expectations of the company as on date of this call. The statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder all participants line will be in listen only vote. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note that this conference has been recorded. I now hand over the conference to Mr. Arin Sehgal, promoter and whole time Director. Thank you and over to you sir.
Aryan Sehgal — Promoter and Whole-Time Director
Thank you. Good evening everyone and a very warm welcome to the Q1 FY26 earnings conference call of Tarson’s Products Limited. I’m joined by Mr. Santosh, our CFO and SGA, our Investor Relations Partner. Our results and earning presentation have been uploaded on the Stock Exchange and the Company’s website and I hope everybody had the opportunity to go through the same Let me begin with the current industry scenario followed by our strategies and performance in Q1FY26 post which we will open the floor for questions and answers. Over the past 18 to 24 months, the plastic labware industry has experienced a moderation and growth momentum resulting in an area of relative stagnation across the sector.
While the overseas market was relatively soft for this quarter, but the order book in the export market is relatively robust, the overseas business can see some lag in revenues on account of dispatches and delivery schedules. We have all Sophia RFQs in the recent months. Primarily, we have seen green shoots of. Recovery in the domestic market begin to emerge in the previous quarter. On the domestic front, we have delivered a growth in Q1FY26. These are positive indicators that reinforce our optimism for a broader industry resurgence as we progress further in FY26. Throughout the phase of external challenges, TARC has continued to demonstrate resilience and we have maintained the leadership position in the domestic market as well as a reliable plastic supplier to the life science industry. Despite the period of subdued demand, we have remained focused on investing to expand our capacities and capabilities with our two new facilities.
With demand trends beginning to turn a corner and offering signs of picking up, we are strategically well positioned to capitalize on these opportunities and drive growth both in revenue and profitability. While we continue to navigate the near. Term headwinds, our confidence in the long term growth potential of the plastic labware industry remains firmly intact. Our capital expenditure program is nearing completion and will significantly enhance our production capabilities. This expansion also lays the foundation for the rollout of new product lines like cell culture and bioprocess which will nearly double our addressable market share by opening access to segments comparable in size to our current portfolio. Speaking of our ongoing CapEx, Phase 1 of commercial production at our new facility has already started and with Phase two on schedule to commence operations in the second half of this year.
We anticipate. Initial revenue contribution from our cell culture to begin in Q4 of this year with full scale ramp up expected in the next two financial years. This expansion enhances our ability to meet growing industry demand while improving cost efficiencies. We remain committed to advancing automation and optimizing our processes to scale production efficiently, all while upholding the exceptional quality standards that define our brand. Turning to our financial performance reflecting the improvement in the demand environment, our standalone revenue has grown by 10% over the last year. Consolidated revenue in Q1 FY26 grew by 8% year on year. Amidst the relatively subdued demand environment still persisting in the overseas market.
Our standalone Export revenue grew by 5% year on year in Q1 FY26. We continue to double down on the two pronged strategy of expanding both the Arsen’s branded product as well as the ODM partnerships. We have been consistently showcasing our wide product portfolio and reinforcing our commitment to consistent quality and reliable supply chain on various domestic as well as overseas platforms. Response of the customers have been encouraging and we remain optimistic about translating the increasing number of inquiries. Revenue in the domestic business has grown by 12% in Q1 FY26. With improving industrial demand and the introduction of new categories leading to an expansion of our total addressable market, we are optimistic of getting back and maintaining a higher sustainable growth in the domestic business in the coming years.
Norway, our Germany based Europe focused entity acquired in FY24 reported a flat revenue growth for the period. This was primarily due to budget constraints in the region as well as several European countries including Germany experiencing delays in spending amidst government elections which in turn impacted performance. Leveraging Novale’s established distribution network and strong market presence, we will be introducing Parsons manufactured products through its channels, unlocking cross selling opportunities and optimizing capacity utilization. While the transition from third party to in house products will take time, we are progressing steadily laying a strong foundation for long term value creation in the overseas market.
As the product range expands and operations at Norbe scale up gradually, we are confident of delivering steady growth and profitability there. Looking ahead, we remain firmly committed to our strategic priorities. One of them would be strengthening our presence in the domestic market through expanding our product portfolio and increasing the wallet share among our existing customer base. Number two would be to expand our overseas footprint by accelerating growth in overseas markets through both branded and ODM channels. Number three would be leveraging Norway’s distribution strength to not only deepen our reach in the EU markets but also using.
It as as cross selling opportunity to. Sell existing Tarsens manufactured products in the European markets, maintaining consistent profitability through increased automation and continuous focus on operational efficiency. Over the years, Tarsons has effectively competed against global multinational corporations establishing and maintaining a leadership position within our core product segment in India. As we expand into new product categories, we are confident in our ability to replicate this success. Backed by Tarson’s strong brand equity, diverse product portfolio, robust distribution network and unwavering focus on quality, we are well positioned to deliver steady growth in the years to come. With this, I request Santosh for his comments on the financial highlights.
Santosh Agarwal — Chief Financial Officer, Company Secretary & Compliance Officer
Good evening everyone and a very warm welcome to our Q1FY26 earning conference call. Let me take you through the financial performance for the quarter. Standard revenue from operations for Q1FY 26 stood at 71 crore reflecting a year on year growth of 10%. Consolidated revenue from operation for the quarter was 91 crore making a growth of around 8% compared to Q1FY 25. Revenue contribution from Narvik during the quarter was 20 crore. On a consolidated basis, export revenue stood at 43 crore while domestic revenue was 48 crore. The domestic business has grown by 12% YoY while the sport business has grown by 3% YoY.
Standalone EBITDA for Q1FY 26 came in at 22 crore compared to 17 crore in Q1FY 25 reflecting a growth of around 31%. Y O Y they were the one time expenses relating to provision for damage to the machinery during transit during Q1FY25. Adjusted for that impact, EBITDA growth should be around 11% YoY. Standalone EBITDA margin for Q1FY26 stood at 31.2% versus 26.3% in Q1FY25 reflecting an improvement of 490 basis points. After adjusting for the one time expenses, margin in Q1FY25 was 30.9%. Accordingly, the improvement in margin from Q1FY25 to Q1FY23 would come to around share 30 basis point.
Consolidated EBIT for Q1FY26 was around 25cr with EBITDA margin at 27% adjusted for one time expenses last year Consolidated EBITDA has grown by 13.5% y with margin expansion of 140 basis points. Standalone PAT fall Q1FY26 stood as 3.6 crore compared to 6.5 crore in Q1FY25. The decline in PAT is driven by higher depreciation expenses of 17.8 crore compared to 9 crore in Q1FY25 due to the capitalization of Machila facility. Once the facility will be fully commissioned and MD contribution commences, FAT margin is expected to return to normalized levels. We expect the coming capacity of license rampoc at the upcoming facilities to happen over FY27 and FY28.
Cash spread for standalone entity for Q1FY25 is stood at around 21 crore compared to around 15 crore in Q1FY25. Registering a year on year growth of 38% on consolidated levels. PAD stood at 1.8 crore compared to 4 crore in Q1FY25. PAT margin stood at 2%. Cash PAT on consolidated level stood at 21.7 crore as compared to 15 crore in Q1FY25 suggesting a growth of 44% on a YoY basis. With this I would like to open the floor for Q and A.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchdown telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Raman Kevi from Sequent Investments. Please go ahead.
Raman KV
Hello sir. Thank you for allowing me to ask a question. I just want to understand that the depreciation has doubled on bioi basis. And how much depreciation are we expecting going forward once the phase two plan also commences?
Santosh Agarwal
Yes, we are expecting a depreciation of, you know in around 80 to 85 in FY26.
Raman KV
Answer with respect to the first phase. You said the first phase has already operation started operationalized. Started operation operating. I just want to understand in the Q1 how much revenue came from the new Panchla facility?
Aryan Sehgal
Very limited revenues from the Q1 because we started commercial operations just recently. There was a lot of trials which went on and a lot of customers sampling domestically as well as in overseas markets. But the revenue contribution is very, very. Negligible at this point of time. We would start seeing more revenue in Q2 and a lot of revenue in Q3 and Q4.
Raman KV
And sorry, the first is how much revenue are we expecting
Aryan Sehgal
in the first year?
Raman KV
Yeah, like this year, what will be. The incremental
Aryan Sehgal
At this point of time, we won’t be able to give our exact number for the partial incremental revenue. It depends a lot on how the products pick up. A lot of factors globally on overseas markets, as well as the cell culture coming in, you know, the. The trial production starting at the end of Q3.
Raman KV
And so my one last question is with respect to the opening. In the opening comment, there was a comment made by the management that there was a lag effect with respect to the international market. So can we see any spin over revenue from the international, international customers in Q2?
Aryan Sehgal
Absolutely. By lag effect, what we mean is Sometimes for the first quarter, we cannot register revenues beyond the 21st or the 20th or the 21st of the last month. You know, so if it’s April, May, June, we can only register revenues up to 20 June or 21 June, which is international revenues, because it can only be recognized as a revenue according to the auditors, if the bill of lading is generated. And if we cannot generate the bill of lading it leads to, it needs to be considered as not a revenue. So that will always be spilled over to July revenue.
Raman KV
And how much revenue spillover are we expecting?
Aryan Sehgal
I do not have that at the back of my head, but there were lots of orders which are ready and did not be accounted for in June. It should be accounted for in July.
Raman KV
Any percentage figures?
Aryan Sehgal
No, we. I don’t have the data at this point.
Raman KV
Okay, thank you so much.
operator
Thank you. Before we take the next question, we would like to remind participants. You may press Star and one to ask a question. The next question is from the line of JASDEEP from Clockwind Capital. Please go ahead.
Jasdeep Walia
Hello, sir. Am I audible?
Aryan Sehgal
Yes,
Jasdeep Walia
Sir. My question is. First question is, first of all, have you started exporting your products to Nurbig?
Aryan Sehgal
Yes, we have started exporting.
Jasdeep Walia
Okay, got it. Does 1Q revenues reflect exports from Norway or it still. It will get reflected from second quarter onwards.
Aryan Sehgal
There are negligible revenues at this point of time. So we have, you know, we are building certain strategies of how we are introducing our products. So Merbe is more of a strategic acquisition where we, you know, trying to build A very concise strategy on how we can grow very robustly into the European market. More so today with the global conditions. So we would not look so much into just the transfer revenue between Tarson and Nurvi on a quarter to quarter basis. But look at more as to how we can build a very, very sustainable European European sales channel network through Nurbe for Tarssons.
Jasdeep Walia
And so what’s the outlook for Nurbe for this year? Nurbay’s revenues have remained flattish ever since you have acquired the company. So. Will the company start growing this year?
Aryan Sehgal
We expect and hope that there will be certain amount of growth coming in this year. Having said that, economic conditions in Europe and you know, the global uncertainty all over the world is not improving and helping things for Norway. The more we inject new products and the more we solidify our strategies with Norway to be able to grow beyond what they currently are, will lead to larger growth levels for Norway otherwise being present in the European economy. We cannot expect Norway on a standalone basis without injecting new products, without injecting new geographies to grow at mid double digit levels.
Because the German economy does not have that kind of growth for a company to be able to do that.
Jasdeep Walia
Got it. And when do you start injecting new products into navigation?
Aryan Sehgal
As we stabilize our capacities and new products. So at this point of time we would first want to ensure that all the new products, what we are building, are well tried, well tested in the domestic market and capacity that utilized, initial capacity that utilized for external customers. And once we have the capacity reliability, the product quality reliability, we will move ahead with the MERVE integration. But having said that, the strategies are very fluid because at this point of time we do not know how we would have to approach the international market. Or the overseas market over the next three to four months.
Jasdeep Walia
Got it, sir. And sir, what is US as a percentage of your overall exports? And given that you know, US has now import 50% GDP on India, do you think that exports to US will be viable going forward?
Aryan Sehgal
See, at this point of time we are not, you know, we cannot comment on this because the matter is still, still not complete. I think 25% is what is effective as of now. 25% is what comes into effect in a few days or maybe 10 to 15 days. The US is a very important market for Tarson’s. It’s not a large portion of revenue, but it’s a very important portion of revenue at about 10 to 12% of our consolidated revenues. So we would need to find the. Best strategy Moving forward, considering once everything. Is finalized based on the national agreements. Between India and us.
Jasdeep Walia
Got it sir. So can I ask more questions?
Aryan Sehgal
I don’t know. The moderator can inform that because of the other people in the line, I’m not aware.
Jasdeep Walia
Sure, I’ll jump back in the queue so maybe if nobody comes, I’ll come back again.
operator
Thank you. A reminder to participants, if you wish to ask a question, you may press star and one on your touchstone four. The next question is from the line of Adam from Securities Investor Management. Please go ahead.
Aditya Khandelwal
Hi Sri Lanka Opportunity. So my question was on tariffs. Now if the tariffs remain at current levels, would it be viable for our supply, our customers to continue taking products from us?
Aryan Sehgal
We sell a wide range of products. The advantage of Parsons is that we have a wide product portfolio and we are not a very focused company in the life science sector making only one category of products. So our entire business model over the years has been built on the Indian customer and then we have taking those products to the overseas markets because of our reliable and consistent quality. So I think we make various products which are supplied primarily in US countries by US manufacturers where the price gap is very large and we supply certain products which we compete with the Chinese where it’s neck to neck pricing.
So at this point of time it’s very difficult for me to give you an exact answer. I think we have to see where we are relative to other economies when the dust finally settles on what the final tariff is going to be for India, for other countries and so on. So at this point of time at 50%, you know, it’s not the best trading environment but you know, we will see how things move on over the next two to three months before, you know, trade deals are signed or things are finalized. It will be very difficult for us to know what our impact would be as a company.
Aditya Khandelwal
But sir, in terms of new orders, finalization, are we seeing a delay from a customer end?
Aryan Sehgal
Absolutely. I think what, you know, what momentum we were seeing over the last six to eight months, that momentum is not the same over the last two weeks or maybe probably over the last 10. Days since these tariffs news have come. In because everybody likes to take a cautious step and nobody wants to have. A knee jerk reaction and see what. Actually comes out of this at the end of it before they take further steps ahead. So at 50% tariffs we cannot expect, you know, new inquiries coming our way and growth coming from the American markets for sure. I mean for the incremental growth.
Aditya Khandelwal
Are there any other geographies where we can start supplying products which could sustain our exports growth.
Aryan Sehgal
I think America and India both are. Very large markets for Parsons and I. Think we made a strategic acquisition in. Germany and we are very prevalent and growing our strength in Asia. So we will try and use these markets to further fuel our growth. And we are very positive and confident of being able to find a solution for the trade to the United States as well. Because that continues to be a growing important market for.
Aditya Khandelwal
And so this new capex which we have commissioned now in Pansala, I believe these are for existing products. So how do you see the ramp up happening for this year? And if you just talk a little bit about how many RFQs you have run.
Aryan Sehgal
Sure. We don’t generally discuss on our internal business on what RFQs we participated in, what we want, what we won because generally these are not, these are OEM businesses and you know, because we make for other brands in the international market. But the Parshla facility is actually 25 to 30% of capacity expansion and 70. Odd percent of new product introduction, products we’ve not made before.
Aditya Khandelwal
Yeah, but the phase one which we have commissioned now, that is for the existing products, right?
Aryan Sehgal
That is for existing products for certain liquid handling products and certain new products as well which is related to suspension bottles used for cell culture as well as media bottles. So it’s a mix where there is very few new products but mainly capacity. Expansion of older products.
Aditya Khandelwal
Yeah. So my question was with the existing orders in hand and we have been supplying some samples as well. So should one expect the ramp up of this phase one to be pretty fast where the year one only we can have a capacity utilization of around 50, 60% or you see the utilization to be gradual and back ended.
Aryan Sehgal
See if you see the entire story of Parsons moving forward with it’s the domestic business is where Parsons is one. Of the market leaders and we will. Continue to maintain our leadership position while trying to grow our market share. But the real big growth of Parsons. Will come from the overseas market which is not only the US market but. Every market outside India. And we see a lot of uncertainty all over the world. It’s just not related to the US tariffs. So the global markets at this point are so fluid, that situation is not the most ideal. So while we are ready with our product line and while we are ready with our parameters, product quality, everything in place, having the trust of large global companies, we would have to see how the volumes would start moving over this. Year and the coming years. Understood sir.
Aditya Khandelwal
And just a last One question for my end. You said that the transition for nurbay from third party products to transient products would take time. So just wanted to understand why would that be so? Because.
Aryan Sehgal
Hello? I’m sorry, you’re not audible. I’m unable to hear.
operator
There might be an audio loss. The participant line. Can we move to the next question, sir? Can we move to the next question, sir? Participants, to ask a question please press star and 1. The next question is from the line of Chirag Maru from Keynote Capital. Please go ahead.
Chirag Maroo
Yes, thank you for the opportunity. I’m fairly new to this company so my question can be kind of. First of all I would like to understand that we have a target set of 800 crores by FY28 which means we would require at least 20% CAGR top line growth. Just wanted to understand the ramp up of the new facility which we have recently built up and gradually increase the capacity relation with current capacity of 80% to 90% utilization. Could you just give us some signs or initial thought process how we are expected to have that kind of top line growth?
Aryan Sehgal
So I’m not sure about the target. This is not a target which the company has set or publicly definitely said. We have our internal targets as a company but we don’t give any kind. Of guidance to the public markets and. What our Target is for FY27, 28. Or any other financial year. But yes, coming to your other part of the question, what you had asked us, we run about I won’t have an exact number at my back of my head between 110 and 120 machines. And we have more than 4,000 molds. So we don’t exactly know what our capacity utilization is because different molds, different. Machines can yield different outputs for us. But we believe in the region of 75, 80% and we have capacities of 15 to 20% which our revenues can grow by 15 to 20% of the existing capacity and we do have the installed capacity in our new facilities which can help us generate additional revenues of about 350 to 400 crores. So probably the installed capacity base with. Our new facilities and our old facilities. Put together would be close to 800 crores. But that by no means is our target for FY28.
operator
Thank you. A reminder to participants, if you wish to ask a question, you may press star and 1. The next question is from the line of JASDEEP from Clockwind Capital. Please go ahead. Ladies and gentlemen, we will reconnect the management line. Please stay hold while we reconnect that Ladies and gentlemen, the line for the management has been reconnected. Thank you. And over to you sir.
Jasdeep Walia
So can you hear me?
Aryan Sehgal
Yes, very well, sir.
Jasdeep Walia
In the last quarter you’d mentioned that you might do some special capex if you get, you know, some order from over. Has any such order materialized so far?
Aryan Sehgal
So as I said, we don’t really offer in depth details because these are OEM customers. We have a few projects which we have done, but that’s, you know, which we are executing right now. And that’s the most I can tell you. I cannot tell you the region what kind of projects are what kind of customers because we sign confidentially, confidentiality contracts because most of our contract customer projects are oem. They’re not Tarson’s branded.
Jasdeep Walia
Okay, I got it. And last time you’d mentioned that you expect international business to grow faster in FY26 versus the domestic business.
Aryan Sehgal
Right.
Jasdeep Walia
So your opinion remains the same now also or because of this volatile global environment, you know there’s some change in that opinion?
Aryan Sehgal
Absolutely, there’s a change in my opinion because I do not know when we were speaking three months back, we were in a favorable position in the world trade scenario compared to our neighbors in China. But at this point of time we’re in an unfavorable position. So maybe the next time we connect we might be again in a favorable position. But having said that, it’s very difficult to have an opinion because things are not very stable. So unless we see stability, we are not sure which direction to look at.
Jasdeep Walia
That’s all from my side.
Aryan Sehgal
Thank you.
operator
Thank you. Before we take the next question, we would like to remind participants, you may press star and one to ask a question. The next question is from the line of Raman Kevi from Sequent Investments. Please go ahead. We request participant to please ask a question. Can we move to the next question as there is no response? Okay. The next question is from the line of Harsh from Markless. Please go ahead.
Harsh Shah
Yeah. Hi Rohan. Hi there. Just one question. How are we looking at the comparative landscape in the domestic market? Like earlier, around 10 months back, we used to give bulk discounts, batch discounts for certain large sized orders. Is there a need to still give such discounts for getting those orders and in general competition from other domestic players?
Aryan Sehgal
The competition in the domestic market is highly increased and the reason for that is sluggish market conditions both domestically and internationally. So while we face the heat being one of the relatively larger companies in India, there are, there are various middle sized, large sized companies like US and even small sized companies which are facing highly underutilized capacities at that facility. And that is mainly I believe due to sluggish market conditions, more because of sluggish market conditions and less because of. Overcapacity in the industry in India. So while there is intense competition domestically, I think we are figuring our way out and coming out pretty well at the end in the domestic market primarily due to our strong distribution reach and being the preferred brand for. Customers all across India.
Harsh Shah
Okay, but let’s say compared to around three to six months ago, has the intensity increased? Like is there a need to give higher discounts?
Aryan Sehgal
See, I think. If you look at our average product realization of E product consumables, it’s been at similar levels over the last two two and a half years post the COVID boom.
Harsh Shah
Okay, any price hikes taken in the last three months or are we expecting to take any price hike going forward in the next three to six months?
Aryan Sehgal
No, absolutely not. I think the market does not have the appetite to digest any kind of price increases at this point of time. As I mentioned, your statement is quite accurate but not 100%. The market is brutally competitive at this point of time and everybody is fighting for price because of large underutilized capacities at various players.
Harsh Shah
Got it. And in the new product segments, particularly cell culture, have you seen any new player MNC player setup plant in India planning to set up plant in India or any other domestic player planning to do so?
Aryan Sehgal
I’ve not heard any rumors of anyone planning to do so. But apart from that, if anyone has other plans which are not known to the public, I will not be aware of it. But as of now, no. And I think with more and more new products we’re looking to differentiate ourselves and elevate ourselves from the competition in the market and at the same time finding out effective strategies to compete in the large volume but highly commoditized consumable sector as well.
Harsh Shah
Got it. That’s it.
Aryan Sehgal
Thank you.
operator
Thank you. A reminder to participants, if you wish to ask a question you may press done and one on your touchstone phone. The next question is from the line of Sakshi Pratap from Pratap Securities. Please go ahead.
Sakshi Pratap
Hi sir. Thanks for taking my questions. What will be the impact on margins once when the full operations of Panclav will begin and how do we see the margins panning out in
operator
The line for the management has been gone on hold. We will reconnect them back. Please stay connected. Ladies and gentlemen, the line for the management has been reconnected thank you. And over to you. Yes sir. Please.
Aryan Sehgal
I think the margins on a yearly basis look at somewhere around 33 to. 35% EBITDA at this point of time. And once we are able to stabilize. Our operations at both our new facilities, I think we could inch towards the 40% EBITDA margin. If all the industry factors come into place, I think that’s a very, very reasonable and achievable target.
operator
The line for the participant has gone disconnected. We are moving to the next question. Thank you. A reminder to participants, if you wish to ask a question, you may press star and 1. The next question is from the line of Chirag Maru from Keynote Capital. Please go ahead.
Chirag Maroo
Yeah, thank you for the opportunity again. So my next question is related to the inventory days that we have in our business. Do we do any kind of warehousing for the customer or. We have to always be ready to deliver the product. And that’s why our inventory days are like this, like a year.
Aryan Sehgal
It’s more about the large number of. SKUs and having to have almost ready inventory for all our SKUs. We generally directly do not inventory generally do not warehouse directly for any customer. However, our distributors do maintain, based on the size and the capability of the. Distributor, they do maintain certain inventory days for the final end customer because we don’t sell directly to the final user of the product.
Chirag Maroo
And what kind of inventory days is there on the distributor level at this moment?
Aryan Sehgal
It could vary between 15 to 40. Days depending on distributors scale, distributor size and the region.
Chirag Maroo
So my next question is related to the, related to the optimum utilization for the new facility. By which year do you feel that the new Panchala facility would come to an optimum utilization level?
Aryan Sehgal
I think three years is what we look at from the date of, you. Know, complete commercialization where we should reach about 70, 75% utilization which we consider optimum.
Chirag Maroo
Broadly. Can I say that by FY29 we would be at 75 percentage utilization?
Aryan Sehgal
Hopefully so because see again what we need to consider is that if we look at the kind of products what we are building in Panchana and amta, I believe that the contribution of revenue from both these facilities would have to be 55, 60% in the overseas market. And about 40 odd percent in the domestic market. So the international business will have to play a very key role in this. Successful implementation of these capacities.
Chirag Maroo
Fair enough. So my next question is that we do some white labeling for a few international clients. What kind of revenue do we generate from white labeling?
Aryan Sehgal
We generate Approximately, you know 4 to. 5 million dollars of revenue on white label.
Chirag Maroo
Okay. And. And this, this typically comes from the European market.
Aryan Sehgal
It comes from the European market and. The North American market only.
Chirag Maroo
Answer. As you said that our focus with Norway is to start creating some SKUs or selling our tariffs product to Norway. Could you. Could you just give the product except and secondly, would it be a white label product or it would be like Tarsan products only and what kind of timeline we are expecting to reach like 50 to 100 crores top line. Coming from Nurbe itself,
Aryan Sehgal
I think the. Focus will be on white labeled only. And I think to achieve around 5. Million euros of Inter Transfer Company would take time as we integrate. Our business between Tarsons and Norway. However, the Norway business is somewhere around 7.5 million euros and for that to be able to grow closer to 10 million euros and beyond would be a much faster transition. But for us to be able to achieve 5 million out of that would probably take time. You need to integrate more marketing facilities, more customer reach as well as add. Newer products which Nurbure does not currently.
Chirag Maroo
Fair enough. So once this capacity gets added, I just wanted to understand. We are almost like on an approximate level we are doing an ebitda of approximate 100,100 now once the new capacity gets added, what are expectations to utilize the funds? Are we looking to reduce debt going forward or use it for some creating of new SKUs or R& D?
Aryan Sehgal
We will always use it for R and D and trying to plan for the future. But a significant portion of the retained earnings of the company would be used. To pay down the debt.
Chirag Maroo
Fair enough. If I’m not. You have commented that you are targeting like an overall margin of 38, 37 percentage going forward operating levels.
Aryan Sehgal
Yes. Yeah.
Chirag Maroo
Just wanted to understand on was it on standalone levels or it was on consolidated levels?
Aryan Sehgal
No, it will be on standalone levels because in Norway I think we will expect EBITDA margins to be in the early double digits.
Chirag Maroo
And currently we are like low single digit. Right.
Aryan Sehgal
Somewhere in that region.
Chirag Maroo
What is the reason? I remember that we used to do margins of around 7 to 9 percentage but since couple of quarter it is in lower single digits. Any particular reason for that?
Santosh Agarwal
You are talking about the gross margin. We used to have Gross margin of 75, 79 but currently it stands at 71% and our EBITDA margin currently is at 31% on this quarter.
Chirag Maroo
No, I’m just talking about Nurbair specifically. We used to do 19 percentage EBITDA margins on Nurbe. Right. Which is. Which has dropped down to almost less than 5 percentage. Just wanted to understand the reason behind that.
Santosh Agarwal
No, they had a, you know, higher ebitda margin during FY22 and FY23 only. Right. But. Cannot have this kind of quantity.
Chirag Maroo
I’m saying that for FY25 it was in the range of, if I’m not wrong, in the initial quarter it was in range of 9 and 10%. Fair enough. Okay, thank you. Thank you so much, sir.
operator
Thank you. Ladies and gentlemen. That was the last question for today. As there are no further question, I now hand over the conference to management for closing comments.
Aryan Sehgal
Thank you all for joining us today. I hope we have addressed all your questions. We remain committed to keeping the investment community informed with regular updates on our developments. For any further information or query regarding Tarson’s, please feel free to reach out to us or our investor relations partner. Sga. Once again, thank you for your time and support.
operator
Thank you. On behalf of Tarsens Product Limited concludes the this conference. Thank you for joining us. And you may now disconnect your lines.