Elin Electronics Limited (NSE: ELIN) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Kamal Sethia — Managing Director
Sanjeev Sethia — Director
Akash Sethia — Head of Strategy
Analysts:
Gulshan Singh — Analyst
Rahil Dasani — Analyst
Ananya Nichani — Analyst
Kunal Mehta — Analyst
Samarth Ashok — Analyst
Presentation:
operator
Good evening, ladies and gentlemen. I’m Aakash, moderator for the conference call. Welcome to Alien Electronics committed. Q3FY26 investors call. As a reminder, all participants will be in lesson only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone telephone. Please note this conference is recorded. I would now like to hand over the floor to Mr. Gulchin Singh. Thank you. And over to you, sir.
Gulshan Singh — Analyst
Yeah. Thank you, sir. Good afternoon and very warm welcome to everyone. On behalf of Sunegi Securities, I welcome you all to LN Electronics Limited Q3FY26 earning conference call. Today we have with us our management represented by Mr. Kamal Satya, Managing Director. Mr. Sanju Satya, Director. Mr. Akash Setia, Head of Strategy and Mr. Praveen Dundan, our CEO. We thanked Ellen Electronics Limited for giving us the opportunity to host the call. I will now like to hand over the floor to the manager for their opening remarks post which we will open the floor for a Q and A.
Thank you. And over to you, Sanjeev sir.
Sanjeev Sethia — Director
Thank you very much, Mr. Bhushan. Good evening ladies and gentlemen. This is Sanjeev Setia, Director at Ellen Electronics. And we also have on call today our managing director Mr. Kamal Sathya, our strategy head Mr. Akash Setia and our CEO Mr. Praveen Tandon. Thank you for joining our call for the third quarter and nine months of fiscal year March 2026. Coming to our overall performance for the quarter, operating revenues for the quarter was rupees 294 crores against rupees 266 crore in the same period last year up 10% on a year on year basis. Our revenue growth was driven primarily because of strong growth in our appliances and sand business.
This can be attributed to new product launches and customer acquisitions. Consolidated EBITDA for The quarter was rupees 11.9 crores against rupees 7.6 crores in the same period last year representing a strong growth of 57%. While margins improved, we saw sharp surge in raw material cost due to increase in key raw material prices like copper, steel, aluminum. This impacted gross margins for the quarter. Consolidated path for the quarter was rupees 3.8 crores against rupees 1.4 crores in the same period last year. Our liquidity position remains strong with net cash of 59 crores as at December 25.
Our working capital position is at net 68 days due to higher than normal inventory levels. We expect this to normalize within this quarter. Our capex spend in nine months since fiscal year 26 was at rupees 24.5 crores. As stated in our earlier calls, the aspiration is to be one stop shop for all high volume home appliance and durable needs of OEMs and our customers. This includes our existing business lighting, fan, small appliances and our planned new business medium appliances such as air coolers, chimneys, ovens et cetera. We will continue to look for such products to add in our portfolio over the next several quarters.
Now I would like to share with you the performance and the strategy in each of our business verticals. In lighting, fan and switch segment, the revenue for the quarter was rupees 62.3 crores against rupees 67.6 crores in the same quarter last year. This was primarily driven by strong increase in revenues from fan which was partially offset by a marginal decrease in revenue from lighting. LED lighting excluding flashlights declined from rupees 51.2 crores in last quarter to rupees 38.6 crores in the current quarter. As mentioned earlier on our call, this was largely led by volume decline from Signify which was largely offset by gains from new customers added the revenue run rate on a quarter on quarter basis is on an improving trajectory.
As on date, we are serving five new customers in lighting in addition to Signify as on date on an incremental basis, our new customers are contributing to 50% of our revenues on a monthly basis. We have hired a new business head with strong exposure in the lighting business. With his experience and customer connections, we reiterate that we expect double digit growth in our lighting business in FY26 27. Moving on to our fan business, we have seen strong growth of 100% in our fans business on a year on year basis. This has primarily been driven by our BLDC ceiling fan business.
We are also working on diversifying our customer base and adding new customers. We expect this strong growth momentum to continue in Q4 as well. Our TPW business is showing robust demand overall. We expect fans to grow by another 50% in fiscal year 2627. Moving on to the home appliance segment, revenue growth was robust and increased from Rupees 52.3 crores last quarter to Rupees 102.8 crores this quarter. Kitchen and home care revenues increased by 330% year on year basis. This was largely on the back of OFRs. Our existing businesses of irons, mixer, grinder et cetera has seen good volume growth as well.
Personal Segment was down 10% year on year demand due to weak demand in hair straighteners and trimmers. Future growth is going to be driven by this segment and our strong focus on also growing ODM share of the business. While still nascent, we expect ODM to grow strongly over the next several quarters. A quick update about the medium appliance category. While these will be built out of Diwadi unit which will start from next fiscal, we have already initiated discussions with customers for this. We have a strong outlook for our OFR business for next fiscal as well as happy to share that we have tied up with two customers for the to be launched chimney business.
We had shared our optimism in our last call about our relatively decent export business. We remain in exploratory talks with a few OEMs to supply from India and export to the USA. Discussions will now commence. Given the easing of the tariff situation, we are very hopeful of restarting our FAN export to usa. Further, the government push for make in India and incentivizing imports via BIS and QCO makes us further optimistic on our business going forward. Moving on to the FHP motor segments, revenue declined from Rs. 55.8 crores in last quarter this year to Rupees 45.6 crore this year.
Please note this segment reflects only third party sales. Therefore, while segment sales appear declining, underlying growth is strong given that there is captive consumption of motor for the appliance business. In terms of pipeline of new products to be launched, we’ll be launching the cooler motor and the BLDC chimney motor by the next year for both third party sales and captive consumption towards manufacturing the finished product. I would like to share our guidance of 9 to 10% for revenues from 25 to 26 FY25 to 26. Our guidance included revenues from export to USA which has been nil since August 2025 due to the tariff situation.
We are optimistic that the situation is expected to be resolved soon. We are hopeful of adding a few more export projects over the course of next four to six quarters. EBITDA forecast for the year is forecast at 5.3% to 5.8% margin. Please note that the margin on export is higher than domestic sales. Therefore EBITDA margin has been impacted. CAPEX for the year will be 100 to 110 crores split as 60 to 65 crores for phase one of the new plant at Biwadi and rupees 35 to 40 crores for growth of the existing businesses and factories once the new facility is stabilized in two years from starting.
This will also help us drive up our rows since cash sitting idle on our balance sheet has been a drag on the return on capital employed. A quick update on the Biwadi factory Total project cost is estimated at rupees 100 crores. Construction has commenced in July 2025 and is progressing well. Given the current progress, we expect the plant to be ready and operational by May 2026. There is a slight delay due to the pollution control restrictions imposed by the government. We expect revenue of 140 crores in FY27 and rupees 250 crores in FY28, reiterating that as per current estimates, revenue potential of the plant is rupees 550 to 600 crores.
Further, we expect a steady state EBITDA of 7 to 7.5% for this plant. At these levels, return on capital employed for the plant will be at 20%. With this, we conclude our opening remarks. We can now open the floor for question and answers. Thank you very much.
Questions and Answers:
operator
Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. Ladies and gentlemen, if you have any questions, please press star and one. Let us wait a while until the question queue assembles. The first question comes from Mr. Rahil Dasani from MAPL. Please go ahead with the question. Sir.
Rahil Dasani
Yeah, hi, I’m audible.
Kamal Sethia
Yes, sir.
Rahil Dasani
Yeah. Good afternoon and thank you for the opportunity. First of all, congrats on the set of numbers. I am rather new to the company, so some more simpler questions for these new products that we are getting into or even the new customers that we are entering. You yourself has said in the previous concourse that competition is high. So on what basis or USP or value addition are we able to enter these new customers whose supply chains are already fixed and established?
Sanjeev Sethia
Yeah, sure, happy to answer this. So if you see in terms of the new products which we are renting to a. Of course the oil filled radiators which we already started last year in this then we are getting into chimneys and ecoolers. These are the three products which are targeted, you know, which are absolutely new for us basically in terms of competence and you know, the kind of backward integration which we have in all these three product categories is, you know, advantage to us as over competition. So for example, in oil filled radiator heaters, we are the only company in India who is doing the complete fin assembly locally.
The rest is being either imported in kit form and just assembly is being done. So there is a distinct advantage. And now after two years under our belt, we are further scaling up our local manufacturing facility so we become naturally competitive with shorter lead times. So I think in this we want to capitalize on our first two capacities to a level that generally, you know, it’s a limited market so other customers will or other competitors will not easily look at localizing the fin assembly. So that’s one advantage, the kind of backward integration which we have.
The same holds true for chimneys. Also if you look at chimneys, basically the major categories in chimneys in terms of first is motors. We are currently the largest manufacturers of chimney motors in the country. So we already have a very strong base and a customer Base for motors, then the sheet metal fabrication and electronics that is completely in house. So again here the backward integration which we can offer to our customers is far greater than, let’s say the existing chimney manufacturers because I believe none of them are making motors in house and it accounts for.
And probably even the electronics is not in house. So it accounts for a fairly large percentage of the BoM which we are going to be doing in house. In terms of air coolers, you know, it’s a combination of the cooler motor, the submersible pump and the swing motor, which is totally being done in house, including the plastic moulding. So that’s an inherent advantage which we have in terms of our backward integration as compared to competition. And we are of course already leveraging our existing business, you know, with most of these customers because we have fairly long term business relations with most of the customers who are in the either chimney.
For example, Sabre is there, we’ve been supplying motors for a very long time or oil filled radiator heaters and air coolers. So I believe this gives us a distinct advantage of even getting into a competitive market and creating a space for ourselves. I hope it.
Rahil Dasani
Yeah. So just to understand this better, having the pins and motors in house, that of course gives us a lead time advantage. But I believe that would also help us in terms of the cost competitiveness. So if you can share more on that, how much more competitive are we becoming cost wise by having these things in house compared to other players who do not have it in house?
Sanjeev Sethia
Sure. So of course it will depend a little bit from product category to category. So for example, in terms of, since there is no revc that we are easily about 7, 6 to 8% more competitive than imports for a totally locally made OFR heater chimney. Again, based on the current bomb and the current price valuation and the way which we have got in, I think we are again at least minimum 5% cheaper than the competition. Air cooler is a category we are currently working on. I mean we have not started in the sense that the samples are not out.
So I don’t have a number right now, but maybe in a couple of months, maybe by the next call we can give you an update on that also. But chimney, currently we are in the sample, you know, giving up the final samples for evaluation and then start of production when Diwali factory goes online.
Rahil Dasani
And this you answered me for the new products. But if I take the existing set of products for lighting, for example, where I believe in a very short span of time we have been able to add six new customers. So if you can explain how were we able to enter those players, what did we give them better compared to their existing suppliers?
Sanjeev Sethia
Okay, so see in lighting, you know, we have been in the lighting space for close to about 22 or 23 years now. So we have a very long track record as a lighting company. Of course we were bound by the exclusivity agreement with Signify. So you know, over these last so many years there have been a lot of these companies who’ve been approaching us for lighting. But because of our agreement we were not able to service them. Now that that agreement no longer there, I mean it’s been, I’m not fairly simple, but yes, we worked on it.
We were always integrated in terms of lighting so we were competitive, but we didn’t have the scale to match the other lighting players. So we worked on that. We enjoy a very good reputation in the market as a very premium quality supplier. So at similar prices we have been able to attract some of the customers from our competition. And like I said, with the addition of a new resource who has a very proven track record of dealing with multiple customers in the lighting business, it has helped further attract these customers. So some of them have been existing customers, some are new additions.
But with our track record of supplying to Philips for two decades plus, I think that’s made it a little easier to attract these customers as a quality supplier of lighting.
Rahil Dasani
Fair enough. And just one last question before I get back to the queue for these six new lighting customers that we have added, I believe we have added maybe four of them and two are to be added by year end. So in FY27, what sort of turnover can we expect from these six customers?
Sanjeev Sethia
In lighting. Currently we have already onboarded five customers. That means that the billing has already started and we expect maybe to add another one or two customers. We don’t want to spread ourselves too thin also with a very large number of customers, but we want to focus on quality customers whom we can service and gain a fairly large business share in terms of volume. That’s our overall strategy going forward. In terms of revenues, like we said, we are currently almost on a 5050 basis in terms of the revenues. While we expect that the Signify Lighting revenue will be at the current stage, I don’t see it going up significantly.
I think the existing new customers. So we are looking at about a revenue of in terms of lighting from the new customers to the tune of around maybe 150 to 170 crores in the coming.
Rahil Dasani
Okay. So why I was asking this is because in the previous phone call we shared that these six new customers can do at least 20 to 30% premium revenue of what Signify used to do monthly for us, which was 17 to 20 cr. So that number.
Sanjeev Sethia
What we said that our monthly run rate by probably the year end will be on par with what we were doing with Signify, let’s say prior to the Lightanium deal and the revenues declining. So we are almost there at those levels. So we are almost revenues which we used to do with Signify and now with the addition and growing of these new customers, next year the revenue from them will continue to grow.
Rahil Dasani
Got it. Fair enough. That could be all. I’ll get back in the week. Thank you.
operator
Thank you, sir. The next question comes from the line of Ananya Nichani from Thinkwise Wealth Managers llp. Please go ahead.
Ananya Nichani
Am I audible?
operator
Yes ma’. Am.
Sanjeev Sethia
Yes you are.
Ananya Nichani
Yeah. Thanks for the opportunity. So I wanted to inquire about your gross margins. They are about 40 basis points lower this quarter as well you’ve mentioned because of raw material pricing and some repricing with customers. So can you elaborate on that and how do we look at gross margins going forward? What would be like the steady state basis? Like if there’s a new normal or something like that? Yeah, that’s my question.
Akash Sethia
So like, you know, we pointed out in our opening remarks that you know, our key raw materials, especially on the metal side. So steel, copper and aluminum have seen a fairly sharp increase if you follow the metal pricing market. Most of these are almost trading at all time high levels. So you know, the impact of this increase, which will be repriced subsequently in the next quarter has been, you know, borne by us in the current quarter. So depending on our contracts, some of them are on a monthly basis, some of them are on a quarterly basis.
So wherever it was monthly, it has been repriced already. Wherever it was quarterly will be done in Q4 or in the current quarter of the year where we are. So I mean as a temporary time period there has been an impact on account of these increase in RM prices. So therefore our gross margins have been slightly impacted like you pointed out to I think to the extent of 40, 40 basis points.
Ananya Nichani
So in Q4 as well, we’ll see a compressed margin sort of situation.
Akash Sethia
It’s very difficult to kind of, you know, predict how RM prices behave. I’m sure you will appreciate that probably no one in the world can tell you where the metal prices will settle. But assuming they stay steady, then There should not be an impact because then the repricing will nullify any of that. But assuming they continue to keep on surging, there could be a further impact because last, what happens is last quarter or last month average is used in this quarter or this month. And I mean just to also give you all three sides of the coin, if there is a decline from these levels then there could be an added advantage.
So very difficult to predict where you know, the metal prices will go. But I’ve explained to you broadly in terms of, you know, direction, whichever way they go, what the, what the impact will be.
Ananya Nichani
Got it, Got it. Thank you so much.
operator
Thank you ma’. Am.
operator
Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. I repeat, if you have any questions please press star and one on a telephone keypad. The next question is from the line of Mr. Kunal Mehta from Sunidi Securities. Please go ahead sir.
Kunal Mehta
Yeah, hi, very good evening sir. My first question will be I think last year we saw that there was heavy price erosion in the lighting segment. So what is the current scenario there now that we have about five, six customers onboarded. So are we able to get a competitive price or a better price or. It’s still the scenario has been same.
Sanjeev Sethia
So in terms of lighting, I mean just like now Aakash was explaining, commodity prices has been at all time high dollar, you know, is pretty strong. And in terms of electronics, again, you know, the chip availability is becoming a little bit of a problem basically driven by a lot of the chip volumes are being now diverted to AI related chips, EV related chips. So lighting is coming the little bottom of the line in terms of the, you know, how the capacity is allotted, allocated by the chip manufacturer. So lighting is lighting in general across all consumer electronic products are seeing a price increase.
I think price erosion in lighting business is going to stop. The prices are going to head north for sure. It’s already started happening from this month, if not this month, maximum, I think next month I expect at least a 4 to 5% kind of price increase in across the board in lighting products. Some might be a little more, but bottom line, I think we will be seeing now prices going north in lighting and other consumer electronic businesses.
Kunal Mehta
Okay. And sir, I mean every quarter since almost Q1, so we have been, you know, constantly downgrading our gross margin guidance for the year about 6 to 6.5 to 5 and a half to 6 now about 5.3 to 5.8. So is it only because of the raw material or there Are anything other than that also that is coming, Is it capacity, utilization? Is it something else that is affecting the gross margins?
Akash Sethia
Look, it’s. So just one quick clarification. It’s not gross margin. I think you’re referring to EBITDA margins.
Kunal Mehta
I’m sorry. Sorry. I’m sorry. EBITDA margin. Sorry.
Akash Sethia
Yeah, quick clarification. Look, it’s probably like you pointed out, you pointed out a whole host of factors. It’s probably a combination of that. It’s never really one single factor that plays out. So on the lighting side, like we pointed out, you know, the prices of electronics and weak rupee is impacting us because there are certain imported content in our lighting business. On the appliances side and the motor side, it is the price of metals that is very, very difficult to predict. So like I said, our job, we feel, is to give you a realistic picture of the business as we see it.
And in that very spirit, we are sharing the situation as is. We agree that there is a slight compression that we have seen and that we do expect in our EBITDA from what we had forecast. Our job is to lay it out to you as we see it clearly.
Kunal Mehta
Okay. And so the impact of bis, when do we see it to take effect? You know, I mean, this September of this year or is it actual effect will come in the March of next year?
Sanjeev Sethia
Yes, in a lot of product categories is already implemented. So you are seeing the impact, you know, if you, if you. Let’s say, for example, if I take the chimney business, there’s a lot of local manufacturing going on. Chimney manufacturing, motor manufacturing business has done extremely well last year. So these are already happening in terms of OFR also, I mean, most of the appliances are now covered by bis. For us, the next big growth boom which could happen for because of BIS would be our FHP fractional horsepower motor business. That is still not, you know, 100% under BIS.
So I think with those motors coming under BIS, there would be growth opening up of, you know, local manufacturing. Let’s say washing machine motors, I think would be a big category where the current local manufacturing I’d assume is maybe at between 5 to 8, maybe max, 10% a conditioning ODU motor like the BLDC motors. Right now, I think more than 80, 90% of the motors are imported. So I think that category will see a big impact if BIS comes in. I think it’s slated to come in for August or September of 2026. In terms of, you know, lighting, it’s already controlled by the R number.
Most of the appliances are under bis. And as far as the Chinese companies getting bis, it’s still a little difficult, you know, although a little bit getting visas and things up become a little easier. But still there are certain constraints there. So for us the next big mover is going to be, you know, the motor business once it comes completely under the is. Sir.
Kunal Mehta
Yeah, just on the FHP motors. I think this year we, in this quarter we saw about an 18 decline yoy and most of which was due to, you know, mix of grinder volumes declining and even the synchronous AC motors. So do you, do you see this, that because of bis, a lot of, you know, companies, you know, might have some kind of a captive FHP motor plant. How is our market share turning up because of this?
Sanjeev Sethia
Yeah, of course our third party sale of motors has gone down. Whereas there has been intercompany business mixer grinders. That that’s kind of those numbers have gone up. But of course we reported as a final mixer grinder sale. But in general, small appliances, I think this Diwali was a little tepid. And the couple of months post Diwali the demand of mixer grinder motors, chimney motors was fairly low. It’s now picking up I think a lot of bigger appliances in the automotive industry did exceedingly well during Diwali. So small appliances in general and chimneys had a fairly tepid Diwali.
Things are again now looking up and I think again the motor numbers should go up. Like I said, for example, we also got into the cooler motors. But last year coolers was coolers and air conditioners both, you know, in terms of the season was fairly bad because of unusually long rainy season season. So there was a lot of inventory carryover. So actual manufacturing of air conditioners and coolers has now, you know, now just taken off. Normally it starts in October, but this time I think it’s got delayed by a couple of months. So those categories of motors which we’re expecting to pick up during, you know, the October, November, December period really did not happen.
So that’s another reason why FHP motors was a little down. Captive has gone up in terms of mixer grinders for us and some a little bit in the TPW segment also. Now we’ve consolidated our motor TPW manufacturing the complete fan manufacturing in Ghaziabad plant and those numbers are doing well, but it’s being reflected in the overall fan business for us, you know, as a complete product.
Kunal Mehta
Okay, so now can we see the Biwadi plant start in the from April or will There be some kind of a lag, you know, where you’ll be shifting the chimney production from Ghaziabad to Bihari and you know, a new facility comes up. So will there be some kind of a, you know, shifting lag where you’ll be, you know, shifting some operations or will it be a smooth transition?
Sanjeev Sethia
We will be shifting a OFR business to Biwadi.
Kunal Mehta
Okay. Okay.
Sanjeev Sethia
Yeah. No issue. Chimney is also happening in Biwari. But it’ll probably be the commercial production will commence there. Our date of marshal billing is. We have given as May 26th. Prior to that, you know, there are a lot of regulations which have to be completed, you know, in terms of the BIS approval of the plant, you know, the manufacturing line has to be BIS approved. So we need to do the preliminary sample build over there then submit it for approval then get the line approved. So this takes about two, two months time, you know. So we expect our internal trials to start somewhere in March of 26 and commercial production will go online May 26.
Kunal Mehta
Okay, and so was one last question or how are we on the working capital and how is the progress there? Are we lagging from our. Because that working capital day has increased to almost 68 days, you know, from 59. So are we maybe. Is there going to be a delay in execution of, you know, improving on the inventory and the payable days or are we on track?
Akash Sethia
We are. Okay. In terms of payable days I think we are doing quite, quite well. Like we pointed out again in our opening remarks that you know, there were certain, you know, abnormal inventory buildup that we have seen, you know, during, during the quarter, towards the end of the quarter we expect that to normalize within this quarter itself. So hopefully as at the end of March, we should be around the 50 day target that, that we have set up on a net basis, of course.
Kunal Mehta
Okay, so I’ll fall back in the queue. Thank you so much.
operator
Thank you sir. Ladies and gentlemen, if you have any questions please press star and one on your telephone keypad. I repeat, if you have any questions please press star and one on a telephone keypad. We have a follow up question from Mr. Rahil Dasani from MAPL. Please go ahead, sir.
Rahil Dasani
Yeah, so this 165, 170 crore target that we have from the new lighting customers for next year, is this dependent on prices improving last year like we said in the previous answer or based on the prices as they are today?
Sanjeev Sethia
No other. The value which I have given to you is based on existing prices. But in terms of the price Increase, which I believe, I mean, which I said that I expect around let’s say a 5% increase. I think this will be a vote. And I say this because I see some of it has already happened in this month. And Max, you know, China is going for the Chinese New Year. So we will be getting new prices from China also once they come back to work. To work. And that will also determine how the lighting business moves.
But in general, I expect a price increase across lighting categories. And my current number, which I told you about 150 to let’s say 170 kind of range, that is on the existing prices.
Rahil Dasani
Okay, got it. And sir. Yeah, yeah, sorry.
Sanjeev Sethia
That’s what I’m saying is that those, the numbers which I gave you are on the current existing prices. That means what was operated, what was prevailing in the month of January. And like I said, the, the price increase, which, which I expect minimum around 5%. That could further push those numbers.
Rahil Dasani
Perfect, Got it. And so just a broader question to understand the customer stickiness in this industry. Why did we lose Signify after such a long term relationship back to an exclusive relationship.
Sanjeev Sethia
Why did we lose? So I could give you my SO A. Let me answer that question. If we have not lost Signify as a customer. They. Yeah, so, so, so, you know, so we continue, they continue to buy lighting business, light light fittings from us and they, we are partnering with them for the, the fan business. And you know, that’s what that business is doing extremely well for both of us. So we are still a strategic supplier for them and they are approaching us for a lot of the categories which they are looking at to grow their business.
Now as far as you know, the Lightanium part of the business is concerned where Signify has formed a collaborative venture with Dixon, the lighting business. I mean, I wouldn’t attempt to answer the logic behind that. I mean that’s how they’ve seen the lighting business and probably some consolidation which they wanted to do of their plants in Baroda where you know, the conventional lighting business has gone down. But so, you know, that’s something best left to them. But what I can assure you is that we are still a strategic supplier for them, a priority supplier. And if I, if I add the fan business, our business with Signify is combined business and Signify is growing.
So whatever we’ve lost in lighting, we’ve gained in the fan category. So our business with Signify still remains strong and on a good growth trajectory.
Rahil Dasani
Got it. And just to get my numbers clear, I believe we said that Signify used to be at least 1920 crores in totality for us. And from that monthly they used to generate 1920 crores for us. And from that annually maybe 40, 50 crores is the business that we lost, right?
Sanjeev Sethia
Correct. So we used to be, let’s say the 240, 250 range. So that’s about 240 for the, for the lighting business. And currently we are at about maybe the 100, 120 kind of range in the lighting business. It could be a little plus up and down. It depends. So, so what signifiers move from us? Is the consumer part of the business part of it? Not entirely. We still work with them. The professional business remains in. So if the professional business does well, you know, then that number could further go up. But given the current scenario, that’s what the business was around 240, 250 crores in the last couple of years.
And now currently it’s about looking at a run rate of about 120 to 140 crores with them.
Rahil Dasani
Perfect. Got it. So now coming to the chimney and the OFR heaters, I believe the approval for that is going on at the Gazia plant plant and the product will be shifted to Bawadi once the plant is ready. So have the planned number or expected number of customers approved us to achieve our 140, 160 crores of target in FY27 from the plant.
Sanjeev Sethia
So two things. One of our is going to be a shifting of the business because it’s already operational in Gagabad for last two years and based on. So we’ve already planned the entire shifting in terms of the assets. And of course there’s an approval process. So that’s been planned based on what we did this year and the forecast for the current year where we are again increasing our capacities. Like I mentioned that we are further increasing our capacities so that, you know, we kind of be the dominant player and not let too many people in.
I believe we should be able to hit the numbers between OFRs and chimneys. The oven is not a very big business right now because in terms of oven, there are slight shifts in the consumption pattern. And by that I mean, you know, in terms of oven. Now you are seeing the air fryer is becoming very popular and there’s a new product in the market is a combination of the air fryer and the oven, which is again catching steam. So what we are looking in this category is to start with the oven and then maybe a couple of quarters down we could look at Adding the air fryer business in a.
Which will further increase those numbers. So we are in active discussions with couple of key customers for the air fryer business as well. So with these two put together. Yeah. The new products for Birvari. So with this too. But I think between OFR and Chimney we should be able to hit the guidance which you’ve given in terms of the turnover over for Biwadi in 2627.
Rahil Dasani
Got it. So just to summarize it a bit. Only two products, OFR and the chimney can do 70 to 75 crore each in FY27. And this is while we are launching chimneys.
Sanjeev Sethia
Please read it. As combined between OFR and chimney we should be able to do 170 crores. And the air coolers and the oven business which we will start should. David, there’s always a lag by the time you launch and you know, you show the product and the approval first happens. So we. We are fairly confident that these two products alone should give us about 170 crores kind of business outlook.
Rahil Dasani
Got it? No. So why I was asking for the split is because I believe we are to launch chimneys only in H2FY 2016. So that’s only 2/4 of numbers to generate a target. That’s why I was asking for the split that we are planning for.
Sanjeev Sethia
Currently not in a position to give you an exact split.
Rahil Dasani
Maybe. No problem. And sir, at 25 to 30% utilization in FY27 from Biwadi, what sort of EBITDA margins can we achieve there?
Akash Sethia
Look, we’ve mentioned that steady state of course will be say 7% plus. But obviously initially it will be much lower than that because of, you know, only part utilization of the plant. What we would ask is, you know, once the plant is up and ready we’ll have a better idea to give you, you know, some sense of, you know what in totality for the year we can expect. So just. Just bear with us for another quarter or two. We are finally close.
Rahil Dasani
Yes, got it. And so how much additional capacity will this shift from Ghaziabad to Biwadi leave in Ghaziabad and will that excess Ghaziabad capacity will get utilized immediately or else we will also see a drop in margins in that unit because of a lower utilization like we have seen in the past.
Sanjeev Sethia
So we already have a plan in place. Of course this is going to be a fairly large revenue which will be moving out of Ghaziabad. So we are looking at two product categories to offset and then further grow One, I mentioned that the fan business overall is doing fairly well for us. So we are looking to grow that business this year. I think we will have 100% growth over last year and so we are looking at the minimum 50% kind of growth or maybe a little more for the fan business. And the second category is in terms of the small appliance business there are certain, there’s especially the mixer grinder category.
We are looking to start operations out of our Gazia bath plant also as well. The logic behind this is that, you know, in terms of mixer grinder has a fairly large market share and it’s a probably around the clock kind of business. All our motors are being made in Ghaziabad for the mixer grinders. We believe making the mixer grinder in Ghaziabad will give us certain logistics and overall increase the overall efficiency so we could offer at a better price point. Secondly, of course Baddi now does not have any excise benefit as such. And now the last couple of years customers are also not very keen to buy out of Badi because most of the sales happens in the bigger cities and in the metros.
So the market is here. So we want to move part of our mixer grinder business from Baddi and we believe in Ghaziabad we can give a better value proposition and we can further add and grow our mixer grinder business given the fact that motor is going to become in house. So of course it saves on certain logistics and packaging costs etc. Etc. So these are the two categories we are looking at of course, along with certain FHP motors like coolers and chimneys etc. To not only offset the shift in revenue but further grow the business.
Rahil Dasani
But sir, if we shift the mixer and grinder from Baddi to Ghazia Bhar, that will again lead to a lower utilization in Bati and hence we are again we will get what we call as a reverse operating leverage operating deleverage.
Sanjeev Sethia
So the complete mixer grinder operations will not be shifted out Badi. It’s selected customers where the market share is not very large that will affect the Baddi business. But we believe that once we start seeing mixer grinders in our Ghazia bath plant, we will be able to attract newer customers, more customers who are currently not buying the complete product from us. They might be buying motors from us and they might be, you know, getting some of them are making buying from us and offering to brands. So we believe that we will be able to corner a portion of that business also.
Rahil Dasani
Got it. So I guess My point is that will we be able to continue with our 6 to 6.5% EBITDA margin at our existing two plants if I forget about the Bhiwadi new unit, where of course you will see a dip in margins and profitability on the console level. That’s what I’m trying to understand.
Akash Sethia
The point is well taken, sir. Like I said, so on the existing business we are reasonably confident. But on the Biwadi business, like I said, just allow us quarter or two till the plant actually starts. To give you an idea of what the EBITDA for for Biwali will be and therefore what we consolidated the company.
Rahil Dasani
And so how much is the tremor?
operator
Request you to join the queue. Thank you. So the next we have a question from Mr. Samarth Asho from Janet Merchants Securities. Please go.
Samarth Ashok
So my question was on the motor division. Considering we have lot of captive needs. And there is a large opportunity to supply to the in house appliance manufacturing opportunity which is arising out. Hello. Hello.
operator
Please go ahead. Samaj. Yes.
Samarth Ashok
Are you audible?
Sanjeev Sethia
Yeah, I’m sorry, there was a disturbance in between. So may I ask you to repeat your question please?
Samarth Ashok
Yeah, sir, it was related to the motor business. Considering we have a higher captive requirement and we sell motors to other customers also and because of the BIS regulation we have, there are new opportunities opening up. So are you going to extend expand. Your motor capacity further and it is a better margin product also for us. So any plans to expand capacity further?
Sanjeev Sethia
Yeah, we are looking to expand our motor capacities. I mean like I mentioned, we’ve already set up a line for cooler motors. However, this particular season the cooler industry started a little bit late because of the extra excess inventory built up, you know, in the pipeline because of last year’s fairly dismal cooler. So we are getting into the cooler business and cooler pumps. We are getting into the BLDC chimney segment and we are looking at two more segments. One is the washing machine segment and the AC ODU IDU BLDC motors for further expansion.
Out of this these two segments, washing machine motors are undergoing trials at our end. So we are building up a line and getting our motors approved. We believe that once BIS comes into play in washing machine motor, a lot of local buying will start. So there are existing infrastructure is aligned to make these motors. But however, bldc AC ODU and ID motors, we are a little bit of a wait and watch because our existing infrastructure is not exactly suited to make this motor. Is a fairly high large investment required to make this motor at the Same cost level, let’s say at which China is operating.
So there we are at a wait and watch. But these other three categories we are fairly confident. Two, we are of course equipped to start the third one, we are getting our motors approved. And as and when the BIS kicks in, I mean we will be in a position to start that as well.
Samarth Ashok
So from the past in Gajara, from the DRSP we had almost like 10 lakh capacity of motors per month. How much will be expanding to?
Sanjeev Sethia
So are you, are you talking about expansion or utilization in terms of overall.
Samarth Ashok
No. Expansion?
Akash Sethia
I think so sir. The 10 lakh number that you’re probably referring to is number one, an overall kind of number. It comprises of multiple types of motors. Let me get back to you offline on that because we are not seeing expansion on all categories of motors. Like Sanjeev Ji mentioned, there were only three categories of motors where you know, expansion was being undertaken or considered. So the numbers are going to be very large. But we will just get back to you offline with that number.
Samarth Ashok
Thank you. That’s all from Michael.
operator
Thank you sir. The next question comes from Mr. Kunal Mehta from Sunny the Secret. It’s a follow up question. Please go ahead with the question sir.
Kunal Mehta
Yeah. Hi. I just have one question. It’s on this personal care segment. Think in Q1 also we saw diploma in the volumes and even in Q3 because Q2 was the festive season so there was quite a lot of volume. But is there some kind of lower volume scenario that we are seeing in, you know, personal care and trimmers and hair straighteners and hair dryers. So I mean is the focus more on you know, medium appliances and kitchen and home care and personal care is kind of, you know, we are not having much focus to expand our customer base there.
Akash Sethia
No, no it’s not, it’s not like we don’t have focus. But these are, look, the way we see it is these are you know, vagaries off the market. Consumption has been a little bit erratic. This is more an urban discretionary, you know, kind of category. I mean much more urban, less rural. So sometimes, you know, I mean the way urban customer allocates wallet share, you know, automotive prices have come down, certain wallet share gets allocated there. So you see temporary kind of mismatch. It’s very difficult for us to give you an exact precise reasoning as to why it’s gone down.
But rest assured it is not due to lack of focus. We are working strongly with our customers to kind of drive this growth. This growth as well.
Kunal Mehta
Have we added any customers in the personal care segment in the last year?
Akash Sethia
No, we have not been able to add any new customers, but we have been able to secure three new subcategories of projects within personal care. So we should see some growth being injected once those projects go live in about maybe anywhere between, you know, I mean, roughly six months time.
Kunal Mehta
Okay, and so now do we see this order from the US because of the tariff situation, you know, again, reversing, do we see that the order in the US is soon coming in in a 527?
Akash Sethia
Yeah, we are very hopeful of that. I mean, this is just a very, very recent development, just about, maybe less than a week ago. So teams are, you know, on the ground. You know, already we’re all in touch with our customers, but we don’t have an exact answer for you yet. I mean, I don’t want to jump the gun and tell you that it is done probably. I mean, we are very hopeful that it’s going to be done. But till it’s done, I don’t want to give you any, you know, premature indication.
Kunal Mehta
Okay. Okay. Thank you.
operator
Thank you so much, sir. There are no further questions, sir. Now I hand over the floor to the management for the closing comments.
Kamal Sethia
Hi, this is Kamal Satya. Thank you for sparing your time and. Giving us an opportunity to address your questions. I hope we have answered them well. And looking forward to next call to give you more updates on our company’s performance. Thank you so much again for your time.
Kamal Sethia
Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using doorsobha’s conference call service process. You may disconnect your lines now. Thank you and have a pleasant evening.