Time Technoplast Limited (NSE: TIMETECHNO) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Bharat Kumar Vageria — Managing Director
Analysts:
Abhijeet Mukesh Purohit — Analyst
Jatin Damania — Analyst
Dhananjai Bagrodia — Analyst
Vishvender Singh — Analyst
Prakash Kapadia — Analyst
Deepak Poddar — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q3 and 9 months FY26 earnings conference call of time Technoplast Limited hosted by Kaviraj Securities Private Limited. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. 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 is being recorded. I now hand the conference over to Mr. Abhijit Mukesh Purohit from Kaviraj securities Private Limited. Thank you.
And over to you sir.
Abhijeet Mukesh Purohit — Analyst
Thank you, Palak. Good evening ladies and gentlemen. Kaviraj securities welcomes you all for Q3 and 9 month FY26 earnings conference call of time Technoplast Limited. Today we have with us the management team which is represented by Mr. Bharat Kumar Wageria Managing Director. Mr. Raghupati Thyagarajan, Whole Time Director, Mr. Vishal Anil Jain Non Executive Director. Mr. Heman Soni, Senior VP, Accounts and Corporate Planning. And Mr. Himanshu Upadhyay, Senior Manager Finance and IR. Now without any further delay I hand over the call to Mr. Bharat Kumar Vagaria for his opening remarks post which we can open the floor for Q and A session.
Thank you. And over to you Bharat sir.
Bharat Kumar Vageria — Managing Director
Yeah. Thank you Abhijit. And good afternoon to all my valued and SMB investor and respected colleague for your kind introduction to the management. And it is both an honor and pleasure to address you today. As present, our financial and operational performance of Q3 and 9 month ended FY26 along with our outlook for the remainder of the fiscal year. Our momentum remains strong in the nine month with the 15% volume growth. 11% rise in the revenue. The gap is primarily due to lower of the raw material cost in spite of considering the exchange rate increased which is also 3 to 4%.
But the polymer prices are down more than that. Despite this we delivered solid operational performance. Balancing volume strength with the effective revenue management. The CNG composite casket segment stood over with a robust 23% growth. Materially boosting our overall performance with a strong contribution from other composite products. Composite volume increased 21% profit after tax rose to 21% year on year underscoring our focus on the capacity increasing the capacity realization and discipline financial management particularly around the finance cost. We are encouraged by the sustained Demand for type 4 composite cylinder reflected in a healthy order book of around 165 crores.
This momentum is further supported by rising interest in our value added composition offering. Though composite products which include lpg, cng, oxygen and other composite product for automotive sector, our industrial packaging division also continues to perform steady with the confirmed order pipeline of the Approximately more than 400 crores for the current calendar year across the board domestic and international markets. Our results reaffirm the resilience of our diversified business model and and strong platform we have built for the future. Moving forward, we will continue to pursue new opportunities and accelerate our transition toward the sustainable environmentally responsible growth that deliver long term value for every stakeholder.
Now let’s look over the key highlights for the quarter and the nine months. In the quarter the revenue stood to 1567 crores as against 1389 crores of the same period previous year EBITDA 236 crore as against 202 crores profit after tax 126 crores as against 101 crores. In terms of the percentage sales increased by 13% which includes India 10% overseas 13% volume increased 15% India 13% overseas 17% EBITDA increased by 17% and paid increased by 25% in the nine months. Similar you will see that the revenue increased to 4433 crores as against 3092 crores. EBITDA 655 crores in the nine month as against 575 of the previous year same period profit after tax 337 crores as against 278 crore last year.
In terms of the percentage nine months as I mentioned in my remarks also 11% sell increase, volume increase 15% EBITDA increase 14% paid increase 21%. Now share of the business is also increased in terms of the value added product grew by 17% as compared to nine month previous year. Another thing you will see that the share of the value added product also is 30% from the total solves in the nine month which previous year was 27%. Indian Overseas Business is also increasing because growth is higher in the overseas market and overseas we do only the packaging product and so therefore the business level wise I can say India business 64% and overseas business is 36% which represent the 10 countries EBITDA margin India overseas almost same I can say there is hardly difference of 0.5% IT India EBITDA margin 15% Overseas EBITDA margin is 14.5% Net cash from the operating activity is quarter on quarter is increasing now in the nine month it is stood at 332 crores and I am pleased to tell you the total debt in nine months reduced by 380 crores including the payments made for the Crew IB funds and now the total debt as of in the nine month ended is to only 266 crore as against 647 crore crores so I think it can be very clear visibility is there to have a company debt free in the next 6 months time capex in the 9 month 177 crores which included 80 crores regular maintenance capex and the balance is regular maintenance automation re engineering and the expansion 97 crores and this mostly of the capital expenses are on account of the value date product where the company has a higher margin.
Now what you draw your attention to couple of things which is the process were taken in the last quarter and further planning and the projects which were undertaken time to time so I will just tell something brief now for example sale of the non core assets which 18 years 18 months back decided 124 crores now only 37 crores value is remaining that also company is in discussion and would like to utilize or it will be liquidated in the next six months time and that fund will be utilized for value added products and expansion and groundfilled expansion.
Now in the QIP matter it is already reported in the month of February. Once again I will give highlights the QIP was 800 crores which is supplied. I mentioned last time also around 940 crore was supply but company accepted 800 crores and the issue price was 201 rupees 12 paisa fund utilized as per the object which is controlled by the CARE rating agency which is appointed for the monitoring agency and that report separately monitoring agency submitting and yesterday for the quarter 31st December already submitted 800 which is original allotment original money received fund utilized 340 crores balance 460 crores company is lying in the FD account which is also reconciliation is available on the NSCNBC site one another the management is focusing on the ROC which three years back it is decided company ROC when 14% was there it was decided the 14, 16, 18 and 20.
So company in the last four years working on the deduction only 14 to 16 achieved. 16 to 18 achieved. Now is this year targeting to 20%. Already in the nine months it is 18.6%. And we always know in the last quarter company do business of 30% of the overall estimated business. When we quite short it will be 20% targeted. It will be around that company we managed to achieve. Now another thing company has taken in the last 12 months. I can say consolidation of the products and the manufacturing unit. That to reduce the operational cost and to consolidate the products to use of the people at the one place specialized people.
So that process is on already Consolidation, manufacturing unit and brownfield expansion that will continue. As far as green energy is concerned. Yes, the electricity consumed by solar power Especially states wherever the government is allowing. Wherever the power companies are available. As I have mentioned in the last call. Also as per the India requirement of the 15 crores units all of the in India which is growing by 15% if at all, at all the states wherever we have a presence. If I get the solar power 75% then company can save substantial amount. Maybe 40, 45 crores annualized.
But it is not available Currently the purchase power facility is available in Karnataka. It is available in Tamil Nadu. It is available in Maharashtra. It is available in Gujarat. It is available in. So company has signed the agreement Wherever the this facility is available. And I am pleased to tell you now from this month Gujarat where we have a major facilities. The benefit have been started time short in the next six months time as we are in discussion Maharashtra government is also policy is already there. So we have already signed the agreement. And we are to going going to get benefits in the Maharashtra units also.
But certainly I can. If the visibility is there at least. Or I can say the 26, 27 company will have a power benefit. On account of the power benefit will be approximately 10 crores rupees. Where the investment is almost equivalent to one year saving only. So that benefit net 14 years cost free benefit will be available. Because the power benefit will be available for more than 15 years. Then another thing. Certain products which company had under development has taken which is progressing very well. For example I can tell you the fire extinguisher. Yes, I’m talking since last.
I can say the six to eight months. Now I’m pleased to tell you Both the products of 6 kg and 9 kg is ready. And that will be the commercialization will take place from April 2026. CNG cylinders. Yes, presently we are manufacturing 156 liters. But we are ready with 250 liters. You will very shortly heard that 250 liters CNG cylinders ready. So that number of the cylinder in one casket will be reduced from 60 to 36. That will be the more cost competitive and perfect liter cost will be reduced and the substantial saving will be there.
So you will heard very slowly in the next 45 to 60 days time about this approval. The company is ready with their products another oxygen cylinder. Already we have mentioned we got all the approvals for 2 kg, 4 kg 9 kgs and commercialization has already started hydrogen cylinder. We have submitted approvals for hydrogen cylinder using the drone. And if anybody would like to visit the drone operation by the hydrogen cylinder company owned one drone which is lying in Silvasa which is 140 km from Mumbai. They are free to see that drone working on this working by hydrogen cylinder.
So they can see how this 8,000 meters drone can fly. How the weight of the drone is reduced by using the hydrogen cylinder in state of the battery use. Another thing our one of the subsidiary company power build batteries have developed the battery e rickshaw batteries. And another recently signed the contract for which battery we have signed that advanced VRLA batteries for the this data center which has a very high potential and the international company listed company their contract have been signed. That is also we have updated on BSE NSC site. So there are lot of opportunity composite products and these all products are available now because in the gradually way many times we told how the company will grow now the greenfield composite product.
I am pleased to tell you and giving you certain background. Currently composite cylinder which were manufacturing in Daman where the capacity is only 36,000 cylinder where I can manufacture 400 casket. Now expansion took place two years back and I am pleased to tell you that expansion is now on completion stage. Erection installation plant and mastery already begin March it is going to be complete. Commercialization will take place from MAPREL because erection installation is going. So at one place you will find a company can generate the revenue of 800 crores in the two years time from the new plant.
After the consolidation of the existing plus the new expansion facilities and on this plant the hydrogen cylinder will also be. We can make from this plant itself. Another we have made one separate subsidiary and six months back we have announced is a part of the QIP Also because compliance with the statutory government is also would like to have a pollution free. So recycling for the packaging product made compulsory. So company has formed a Separate company time Ecotech and in that company it was a part of the QIP to have a three locations recycling plant beginning with the western region.
So I’m pleased to tell you first plant commissioning is ongoing and it will be ready in March and will be operational from April 2026. So company will have all recycling plant to maintain their quality standard as per the need of the Indian Institute of Packaging for the packaging product. Another facility company has taken automation which is also automation is very clear. Day by day cost of the main power power operation cost is including. Nowadays we have to think out of the box and automation is must for the cost reduction and make our product more competitive.
So in automotive IBC manufacturing facility Silvaka is already operational phase one. But the larger facility also phase two also will be there. That is target taken for the 26, 27. But phase one is ready with the fully automatic plant for manufacturing IBC with a very high capacity which can have annual capacity of 150,000 pieces. Another thing P Pipe Company has consolidated. One plant is having in Gombudi Pundi that is 40 km from Chennai in one location manufacturing packaging, pipes, everything. So for better utilization of the assets, better utilization of the space increase the productivity. Company has expanded.
New building have been constructed for 40,000 square feet that’s completed and that plant is operational now. So which will give the benefit of the main power skill specific plus space utilization, better way and consolidation of the product in the specified area. And this is the expansion which I have told to India which have been completed and near to completion in this 25, 269 overseas also I am pleased to tell you the place called Georgia USA company completed that plant and already in operational and it is in usa. I mentioned in my last call also the tariff nothing to do with our company.
Because we have a manufacturing location in USA and supplying for the local in usa. So tariff has not affected any of our revenue in the USA they have grown growing 10 to 12% growing because they are the locally supplying another plant which also we have identified to be completed in 2627. You know very well I have already explained Company has ready projections to grow 15% for the next three years. Which includes the various segment of the company where the higher growth will be from the composite. But something I will highlight you now given in my earning presentation also the segment wise where the growth company is projecting.
So to achieve the projection Now I’m pleased to tell you in Gujarat company got the allotment in this month brought area of around 3 acre land already allotted. Agreement Is under process that plant expansion for the next 26, 27 for the packaging project. Products and other products wherever time to time requirement. Because 3 acre area is good enough to take care of the company’s other product. Another looking to the infrastructure development in Odisha especially company got the allotment of the government leasehold land. It is ready. Companies in process of completing building plan order of the plant and equipment etc so they can take the benefit of infra requirement.
Especially P pipe business in the Odisha region. Another in Maharashtra. You know the Maharasht now government is fixed. Everything is fixed. Government changing the policies easy the policy business. One of the subsidiary company TPL Plastech 75% owned by Time Technoplast Limited has already allotted land in Chevroloon place called Maharasht for the packaging business is almost 5 acre land is more than cycle length is there so already submitting the building plan. And there has a plan to manufacture packaging business. Especially valued product that is called IBC And Kiploon is a fully chemical drone. Where most of the big chemical companies in the Maharasht are situated there.
So in packaging business we already explained you cost of the logistic is the main important cost. You should be near to the customer to reduce the packaging cost and timely delivery to the customer. Now growth drivers because in many my conference call. In many of the meetings people ask what are the growth drivers of the company. So I have just divided my growth drivers into four regions like packaging company which is a 75% business. Packaging product which include Drem Jericho paste and IBC. Which company is estimating growth of the 11 to 13% range. Because overseas is more than 13%.
India is 10 to 11%. So range is 11 to 13% growth. We are projecting for next two to three years especially composite product. Because expansion has taken place. Product development has taken place. Composite which include LPG, CNG, hydrogen, fire extinguisher etc. And auto related products which is 25 to 30% growth projection is there. And for that company’s capacity already expanded which is completion in the this Q4 of the FY26P pipe business I mentioned to you Odisha is there Chennai is there already existing capacity company manufacturing pipe in Siruvasa Hyderabad. So there is a growth potential.
Looking to the development policy. Looking to the government infra related activity Government I can say the water management system improving road construction activity. Because this P pipe which is used for the water management, seaweed management, drainage management, power decline, smart cities, various applications. Then I can say this gas pipeline which is Government is also planning to increase the gas pipeline supply of the gas. This also we got the approval which is which already we have updated. Company now got the approval for the gas pipe manufacturing facilities. Also another products which is very small percentage terms 10 to 12%.
So all put together I can say the consolidated growth will be above 15%. That is the projection is there. Then again okay, revenue growth I’ve explained to you. But at the same time what are the growth drivers of the EBITDA? Because EBITDA which is currently ranging from 14.5 to 14.8%. Now to increase the EBITDA margin which will finally will increase the ROCE which company is targeting 2% year on year increase and pat increase is there finally because everybody is concerned what is the net pat company has earned and what is the dividend payout ratio what the investors are getting.
Therefore, companies decided increase the efficiency like automation. Consolidation of the molds machineries, centralized systems of the material conveying systems, High productivity machines. Another thing power cost reductions. Another main power cost reduction by doing the automation using the latest technology of the robotic technologies. Power cost by way of using the solar power. Another big thing which will also give some benefit. Finance cost because company has repaid the debt. And further in the next six months time it will be paid entirely. I am just telling would like to clarify. You will see in the last three to four years the finance cost is the range of 90 crores to 100 crores which is slowly, slowly reducing now.
And after the debt repayment, the finance cost will be in the range of 25 to 30 crore annualized only. And that is on account of the use of the known fund based facilities. Export documentation, import documentation bank guarantees LC’s cost that only will continue. So that will give the substantial benefit another complex to improve the roc. The working capital cycle time. If I go back to four years back, the working capital cycle time was 120 days is now reduced to almost 98 to 99 days. And the next two to three years time it is targeting to reduce to 90 days.
And that is also very clear how it is possible. Because the 65 days inventory 70 to 75 days is the receivable and the 40 to 45 days in the creditors. So network infrastructure time companies targeting 90 days non core assets are already I have explained to you the balance assets that also will be liquidated. So most of the things which I have covered if anything left. I’m now leaving for the answers and questions. I tried to giving most of the information in my earning presentation okay, but again I’m leaving for you if any specific questions I’m willing to answer and if he.
If there any questions which has some calculations which have some. They are free to send their mail. We will send the reply by the mail. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and one on their touchstone 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 a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Jatin from Swan Investments. Please go ahead.
Jatin Damania
Good evening sir. Am I audible?
Bharat Kumar Vageria
Yeah, yeah.
Jatin Damania
Good evening sir. Thank you for the opportunity. First of all, congratulations on the good set of numbers in a current scenario. So on the composite product. Now when our capacity is going to expand by Q4 of FY26 and there will be consolidation of the product at one place. So with 30% of the value added product which we are doing in nine months. When you do 800 crores of incremental revenue of composite product what sorts of value added product contribution one should expect over a two year period?
Bharat Kumar Vageria
I think currently by remember the 27% is the value added product is there composite how much? 27% we are targeting overall growth is 15%. But value date product will reach to 35% in the two years time.
Jatin Damania
Okay, 35%.
Bharat Kumar Vageria
And again you know very well the margin in the other products and composite product is different. In the standard product in the range of 12 to 13.5%. But the composite products and the value replace margin in the range of 17 to 18%.
Jatin Damania
But sir, the margin in the hydrogen and the firefighting cylinder and 14.2 liter cylinder will be also better margins compared to the average composite products. Right?
Bharat Kumar Vageria
Or I can say the same range because I have to. I don’t. I. I’m telling you. I believe in the two things. One, you want volume or you want small volume. I believe in the volume. But if anything is a high volume then you will able to whenever if your volume is increased you can negotiate better way your inputs and you offer your protocol. Now you know the fire extinction are very clear. I have to offer my product as against the metal. Yes, it is a lightweight long sales fly busy landing that all benefits there.
But the same time people would like to see. Not everybody will like to pay the additional cost of 10%, 20%, 30%. But if I will say the fire Extinguisher of the Mata Center. 2000 rupees composite will be 4000 people will little thing but 500 to 100 rupees. Everybody willing to pay more because of the advantage of the product. Product. So I’m very happy. We are very happy to earn. We don’t want to. If I tell you if anything margin over and above the 18 or 20% EBITDA margin you are keeping then you are inviting your competitors.
Jatin Damania
On the costing front. Just wanted to understand. You indicated that next year will get the benefits of the power in the range of 10 to 12 crores. But with the consolidation of the product at one place the automation in the re engineering that we will be doing in FY27. What sorts of overall cost benefit one can see on the company level.
Bharat Kumar Vageria
I. I tell you this way you know very well. If normal way everything is running then Then do you know in case of the main power cost we’ll have to give the incremental cost of 8 to 10%. At the same time I don’t. I would like to reduce that. At the same time I don’t want to leave away that people also. So whatever my new plant is coming I will exhaust that people in my plant itself. I will not give the recruitment of the new people. But that for example I have explained last time also for example I am doing the investment.
I have explained you that one machine called 2200 tons. I have invested 25.5lakhs rupees in my robot technology. And I able to save a 60,000 rupees a month which gave me the saving of 40 months equivalent to I am saving now. That is the one example I have given for 2002 new ton machine. Similarly, for example 1000 ton machines. There also I am incurring 60,000 rupees per month on account of the three labor in each shift. But I have to incur 15 lakhs rupees only for my robot technology and software technology. So there the payback period may be the 25 months.
So we have bugged out the average in my blue molding, induction molding everywhere. Therefore you see in my QIP portion we have put the automation cost of the automation everything is around 75 crores. So that benefit will come in the three years time now. Yes. Three years time means it will take one year in completion and three years payback period. So entire four years. For example 75 crores I am investing and payback period is four years including the investment period. Then you can see 20 crores EBITDA margin will be on account of the automations and we will be saved by the of a manpower cost sure so.
Jatin Damania
I mean that’s a good amount similarly.
Bharat Kumar Vageria
Similar in power also for example in Gujarat my requirement is 4 crores if I am saving 2 and a half crore rupees 2 and half rupees rupees per unit the saving will be 10 crores I’m investing 10 crores equity that will come back after 15 years as a face value but as a management I’m presuming I will not get that by 15 years I don’t know but my payback period is one year only so Gujarat is common this year so if visibility is there next year sure 10 crores on account of the power benefit I can earn more so the normal EBITDA for example you know this year EBITDA overall EBITDA range will be around 900 crore now you know the percentage by 15 to 20 basis point every year increase because the composite product percentage business is increasing business where the EBITDA margin is so when this 20 to 30 basis point is increasing on account of the change in the company of the product similarly you will see 10 basis point on account of the increase in the manpower, power and other administrative cost on account of the consolidation of the business Another thing I have no need to borrow any money because for the automation for the expansion company has already accounted money and that money is lying at the destroyer account that is only to be incurred in the next six to eight months time because every automation will take based on the experience best of the cost saving time to time even project is identified machine is identified, location is identified so based on that only that QIP amount which is raised whatever repayment was required that have been done balance have been kept as core account Wherever the need that automation recycling plant the process is on so if you see the visibility yes after 2728 you will have a complete visibility on account of the main power cost on account of the power cost saving of additional 25 crores EBITDA annually.
Jatin Damania
Thank you for the detailed answer so second question on the recycling I mean now that’s a need of an hour and we are probably doing 5455 crores of the capex on the recycling at the 3 unit so how shall one look at the viability of this particular project as compared to the existing 14.5% business?
Bharat Kumar Vageria
Yeah yeah I tell you different I therefore you know that it’s not in time Techno player why I have kept a separate company time Ecotech Because Time Ecotech I considered as a separate company as a time techno I’m investing 75 crores in that project. Now the 75 crore I should have a ROC of 20% more than that because I. I don’t want to go below that. I’m telling you if for example today virgin raw material prices are 100 rupees a kilogram right now I will buy the recycled drums from the market. I will appoint the agent.
My cost of the buying may be 65 rupees a kg plus I will have a 12 to 13 rupees kg. My cost of the the power, manpower, machine cost everything. So I will definitely work down in such a way that company will earn a separate because they will give whether customer is concerned is the is the statutory compliance for both. If I am using a recycled material, okay, I don’t need to give my price reduction. I am obliging my customer because ultimately it’s the obligations of the chemical manufacturers companies also. So he’s not asking any price reduction.
They are asking you should use the PCR material. I’m using that. So he don’t want any reduction. So as main companies earning 15% EBITDA so that time ecotech is also on 15% margin and cost basis they will supply to the time techno that will be the cost and then the product will be supplied to them. So as a separate with the profit center separately.
Jatin Damania
And so last question before I come back in a queue I just wanted to understand your thought process on the flexible IBC which you are talking in last couple of quarters. So what is the scenario out there? What is a growth roadmap out there on flexible ibc you can throw some light on that.
Bharat Kumar Vageria
But I am just telling you that the revenue figure if it are figure not accounted anywhere Because I remember very well we have signed the invincible agreement. We will review, we will do the due diligence. Yesterday we discussed our board meeting due diligence for the six months because we we signed that agreement of the in the month of August or September somewhere. So white data is encouraging. And as for the company projected they are going to have a business of 250 crores annualized bidding business. We have seen nine month business. Yes, it is on par.
At the same time my boards are giving me the comments. We have a timeline to to confirm the deal by March 2026. Because first we have seen the six months data for them that is from July to December. Now I am just my board. Yesterday certain comments were there which we are going to discuss with the Management of that company name called Ebullient Packaging which is unlisted company having their manufacturing plant in Wapi and Siluvasa. And yes I remember that the flexible IP is good market. They have doing 60% they are doing product export and 40% locally good business clientele.
They have some of the common. I can say it’s a packaging business only but. And that business is also growing 25 to 30% that money still is lying under the FDA account because it’s taken under the general corporate purpose because on the day of the QIP it was not identified specifically for inorganic growth but it was part of the inorganic growth. Therefore that amount is taken. But finally we will announce after the getting the final diligence report and everything before March we will do that. So that process is on. We have a timeline up to the march and that also can be further extended subject to the duty business compliance and everything.
And we have at that timeline and as time comes we will announce that deal. But yes it is. It is on.
Jatin Damania
Sure sir. Thank you sir and all the best. I have a more question but I’ll come back in a queue. Thank you.
Bharat Kumar Vageria
No problem. No that in Bhai you are welcome always. You know very well if you don’t cannot come in the queue because of the long queue is there. You are always welcome to the office and get your clarification in time.
Jatin Damania
Sure. Thank you. Thank you for. Thank you for that response. Thank you.
operator
Yeah, thank you sir. The next question is from the line of Dananjay from Alchemy. Please go ahead.
Dhananjai Bagrodia
Hello sir. Congratulations. Just want to ask you a couple of questions. In this drone you mentioned have you. Got any approval from any customers for using our cylinders? And how is that conversation going?
Bharat Kumar Vageria
This is the pilot project. We did it. If you recall 60 days back I told we have imported entirely fuel cells cylinder. We made it. We have given. We have tied up with company drawn Shark. What is the name of the company? Drawn Star that he will make the drone for us. So we have signed the contact with team for the three years in the confidential agreement and I am again clarifying you. We have no any plan to manufacture drone? No, no, just I’m coming. As far as this drone is concerned we have made one pilot project so that whoever customer would like to use the hydrogen cylinder for the drone they are very welcome to my plant.
They can see how the cylinder are useful. What is the capacity? What? Because we have a particular as on today we have developed a particular size of the cylinder and the for the particular Drone application various type of the drones are application various sector using the drone. So still that commercialization will take place next year. But yes as I mentioned this year our commitment was to have our own drone ready. And that is visibility is there and that we have submitted our video also how it is benefit? What are the benefit of using the hydrogen cylinder instead of the batteries? That is the benefit and that available now very I can say you will come to know as the commercialization.
You know that if somebody want to the hydrogen cylinder I can’t give it because I have a limited capacity. I mentioned to you in the March 2026 My plant is commissioning. We will be ready for the hydrogen cylinder for the expansion. Any new requirement comes for the automotive supply in supply of the CNG cylinder for auto industry also will be ready afterward expansion. So from April 2026 we will be ready. Then we will approach now we have a capacity energy supply them Till now our objective for this year was to keep ourselves product ready. And as the expansion complete we will able to supply.
Because if today somebody will come to me I will not able to supply yet Because I don’t have a capacity at all. My capacity is full.
Dhananjai Bagrodia
Sure. And one more question is regarding your PPE plant. In what capacity will we be by the end of the expansion? And how is demand shaping up on ground?
Bharat Kumar Vageria
No PP
Dhananjai Bagrodia
for your plastic pipes.
Bharat Kumar Vageria
Plastic pipe. Okay, I just give you the business of the PE pipe. Currently we are manufacturing PE pipe in my Silvasa location In the western region southern region we are in Hyderabad. Then we are in Gumbripundi near Chennai. And another plant is in available in my Kolkata for the eastern region all current business for the existing investment we can do maximum of around 450 crores. Current utilization is almost around 70% is there but the expansion we know that India the last I can say the 45 months the financial government has started timely payments.
Intra business is growing so definitely looking to the government infrastructure development we have invested in the Odisha where the land or minor the plant will be ready this year. So it will be available for next year only. But yes this business current capacity itself is available for 20% growth for the 2627. For example this year suppose we are closing around 350 crores. So almost if I take 20% then I have a capacity available. But again for the 27:28 if I need I don’t have. So therefore we will be ready. So so looking to the India development Looking the entra development looking the Smart 100 smart city development Taken you Know very well in Andhra Pradesh Amrapati project which was shut now.
Which is now started and part growing as a city separately. So the demand has grown. Now you see the bear. Some of the people are approaching from BR that you come there. We need pipes so we can take supply from our Kolkata plant. We can make supply from our Rajasthan plant. So lot of requirement is coming. So I’m very sure as per P5 business growth will be more than 20 to 25%. But yes, capacity for 2627 available. We keeping ourselves ready for 2728 and enter later. Later period.
Dhananjai Bagrodia
Okay, sure sir. Thank you so much. Yeah, thank you.
operator
Thank you sir. The next question is from the line of Vishwender Singh from Prudent Equity. Please go ahead.
Vishvender Singh
Hi sir. Yeah, I have a couple of questions related to TPL Plastic. So can you share what is the expected capacity to be added from the Lotus plant?
Bharat Kumar Vageria
Yeah, yeah. You know that if you have gone through the TPL plastic working. I think TPL has also grown more than 25%. They have also the PET growth of 25%. There is my 75% subsidiary. They are a current plant in Silvasa Buj Ratlam Oiza. They have a four plants available in Dahed. Latest fully automatic plant for IBC is there now. But they are the mostly in the packaging products only. So this Lotte for silver amount tipin is coming with the packaging product where they are going to investment of 30 to 35 crores. So they can have a revenue of more than 100 crores in a three years time.
The plant will be completed in the financial year 2627. So that they can plant will be completed and 27 onwards that plant will be ready for that area. So currently I can say the TPL plastic on contribute to the time technoplast 8% or 9% of their total revenue. Their revenue in the range of estimated revenue for financial year 2526 is around 450 crores. And that company certainly looking to their growth plan, looking to their product, looking to location where they are. They will grow more than 20% annually. And I am glad to tell you that ROC is also more than us.
Our RoC 20%. We are doing this year in 2526. But there are more 20 more than 22% RoC.
Vishvender Singh
Okay sir, another question on the utilization. So on a consolidated basis and for TPL Plastic can you share the utilization?
Bharat Kumar Vageria
Because packaging product is a different.
Vishvender Singh
Okay.
Bharat Kumar Vageria
Consolidation wise I can say if. If the capacity IBC they are almost doing 80% capacity utilization with plant setup last year Silvasa almost 75%. They can say Vizag around 70% which may be 65%. Because company put up the plant at the new location when the break even is there. And company break even comes when your Capacity utilization is 50%. Above 50%. You have a contribution, positive contribution from that plant.
Vishvender Singh
Okay. Okay. Just last question on the solar power. So in the filing that was posted yesterday it was mentioned that the company plans to shift on 75% to solar energy.
Bharat Kumar Vageria
Yes. So you are right. So.
Vishvender Singh
And 4 crore of annual savings would be there. So by when can we expect such savings?
Bharat Kumar Vageria
Oh I. I think you had not heard what I have explained clearly. I told you as a group company I have a TPL time my subsidiary put together. We have an annual requirement of 15 crore units in a year. And if company is growing 15%. So 15 crores 15% every year growth would be there. But again 15 crores unit wherever the company presents locations like in Daman, Siluvasa, Gujarat, Uttarakhand. Everywhere companies they plant. But yes, currently we have availability. We have seen the solar power available in Karnataka, Uttarakhand, Tamil Nadu, Gujarat and Maharashtra. Karnataka benefit last year started where company is already getting benefit of 2 crores annualized.
Gujarat. I have explained that this month. This month means February benefit have started in Gujarat area. The company consumption is 4 crore units. So 2 rupees 50 paisa per unit saving will give the saving of 10 crores rupees. From next year onwards. Company has made an investment equivalent to one year benefit. 10 crores equity investment put all companies put together. So 10 crore benefit will come first year that the 10 crores which investment is there is by way of investment equity investment not any expenses. But the income will come straight saving in the power cost.
And then management will get continues for the next 15 years.
Vishvender Singh
Okay.
Bharat Kumar Vageria
So Gujarat already started. Maharashtra policy is already there. But because of some government has delayed clearance of the policy. What? Latest I heard yesterday in my board meeting. Now Mahara state cleared. So we are quite hopeful. Mars benefit should also come in the operational. Because we have a operation in Maharashtra. Existing operation subsidiary and joint venture company in Mar. We have a unit in pain. But as the lotus TPL plastic is coming up in lotus that will company will also have a benefit of solar power. So that company unit will come by that time this benefit will also be made available.
Vishvender Singh
Okay sir. Thank you.
Bharat Kumar Vageria
Yeah.
operator
Thank you sir. The next question is from the line of Prakash Kapadia from Kapadia Financial services. Please go ahead.
Prakash Kapadia
Thank you for the opportunity. Thank you for the opportunity. I was saying congrats for the 20% ROC target. You are ahead of expectations. So that’s very good. Sign.
Bharat Kumar Vageria
Dividend payout TK earningi so payout ratio also will be parallel increasing.
Prakash Kapadia
Absolutely.
Bharat Kumar Vageria
And again as promoters are holding 48%. 52% is the other investors. And I’m glad to tell you today your company is having more than 1 lakh 53 thousand shareholders of the company. Like four years back company had a 25 thousand shareholders only. And another thing I’m glad to tell you today your company equity owned by 15% overseas investors. FII is all put together and 15% mutual fund.
Prakash Kapadia
That’s very good.
Bharat Kumar Vageria
Only 20% is more than 1 lakh 50 thousand high net worth. And other retail shareholders very widely holding it there.
Prakash Kapadia
Held by. Absolutely, absolutely.
Bharat Kumar Vageria
Yes.
Prakash Kapadia
By the consolidation you were talking about, you know, manufacturing units now.
Bharat Kumar Vageria
Yes, yes.
Prakash Kapadia
Whereas I I remember there are 50 units across, you know, the world and 33 are in India. So the consolidation will happen in India only is what I’m guessing.
Bharat Kumar Vageria
No overseas, no need to consolidate. Obviously I’m very clear. For example, I’m in Mina region. I have a plant in Sharia 1 I have a plant in Bahrain, I have a plant in Saudi. I have planted four plants are there that is going to be continue as far as Mena region Southeast Asia is concerned. We have a three plant in Thailand. Different continents is is there all over Thailand. Three plant is going to be continue in then Taiwan, Malaysia, Indonesia, Vietnam one one plant is going to be continue USA four plants were there. Fifth plant Jordi already started six months back.
Consolidation is there nothing to do as far as consolidation of the facilities in India is concerned. You know that some we have started in India operation 30 years back. Now I have a plant in Silvata 3 plant. I have a 2 plant in Daman. So I thought why to have a four or five plants here I do a bigger plant. I can consolidate, for example, three machines at one location. Large blue molding, another plant in the three machines. So we thought why we should not have eight machine in one place only. So I can accumulate.
I can have a material common. I have a monitoring supply units common. I have a convert system 7. I can utilize the main power effectively for the special product, special people. So that kind of the profit processes on that. I call it the consolidation of facilities and the consolidation of products.
Prakash Kapadia
Understood, understood that that’s helpful.
Bharat Kumar Vageria
And I had a plant in Jambu, sir. Okay. Now I had a plant in Ahmedabad also as I mentioned to you I have allotted land of 13,000 square meter in San and II area. You know Tharandu area is a very automotive industrial area. I got a lot of land on government. Now I no need to have my plant in Jambusar. Because I know the new highway is coming from Banora to Ahmedabad. It’s a two hour journey. Now the new highways which is connected. So why I should have a two plant. Why I should have a two administrative cost.
Why I should have a two commercial manager. Why I should have a two quality manager. I can have a bigger plant. So I can reduce my administrative cost. I know the labor cost variance will be different. Based on my requirement I will hire the labor. And that also when you are putting the new plant from day one you do the automation. You will reduce the manpower. That’s objective.
Prakash Kapadia
And sir based on you know ninth month numbers and you know the entire initiatives which you talked about right from you know the debt reduction composite scale, increasing share of value added products. The inorganic you know should get closed very soon. So based on this you know the profit growth should be at least 25% over the next two years. Is that the right direction? I’m thinking yes.
Bharat Kumar Vageria
You see that when my my growth is 13 to 14% volume growth you will see the EBITDA growth at 18%. You will go to see the paid growth of 25%. Now paid growth will be furthermore because the after EBITDA interest cost is there which I mentioned to you one point of time. My 90 crore crores. What the interest cost which now going to be reduced to 25 to 30 crores. Because company is a definite company and the payout ratio will continue. So definitely the paid is going to be more than the volume growth.
Prakash Kapadia
Understood. Look. Look forward to that journey sir. Thank you.
Bharat Kumar Vageria
Of course three years I’m clear visibility is there. Because three years plan for international and India business consolidation consultation facilities is already paper layout plan already discussed board with the approval is there.
Prakash Kapadia
Right?
Bharat Kumar Vageria
You see in my presentation we mentioned what are the growth drivers for the revenue and both are the growth drivers for the margin.
Prakash Kapadia
Absolutely sir. Absolutely sir. That’s a very helpful insight. Look forward to seeing you after annual results. Thank you so much for the answers. Thank you.
Bharat Kumar Vageria
Yeah,
operator
thank you. Sir. The next question is from the line of Deepak Podas from Sapphire Capital. Please go ahead.
Deepak Poddar
I’m audible sir.
Bharat Kumar Vageria
Yeah, just wanted to said wanted to.
Deepak Poddar
Check on the debt side you mentioned. We have a clear visibility of being debt free. Current debt stands around. That’s a gross debt 266 crores that you mentioned. Mention.
Bharat Kumar Vageria
Yeah, yeah, yeah yeah yeah it mentioned because you see the last year it was around more than 680 crores. 5 of the QIP amount have been paid and another identified QIP amount have been kept separately for the expansion for the. For the general corporate purpose for the automation that have been kept separately.
Deepak Poddar
Correct. So. So what was the target? I mean by when we are looking to be debt free
Bharat Kumar Vageria
Next six months. Very clear
Deepak Poddar
next six months. So. So ideally I mean whatever interest cost you’re mentioning of 25 to 30 crores
Bharat Kumar Vageria
that I don’t count the interest cost.
I can say it’s a financial cost, it’s a document. You know I’m doing export, I’m doing imports so always some will be the minimum document charges. Another thing, another thing. When I’m doing the composite products and certain government company contract almost were due in my revenue of this packet business. 2000 crores, 800 crores composite product 3000 crore revenue almost. We do government business through government company maybe around thousand two hundred crores. Now we have to give the performance guarantee maybe two years or three years some performance guarantee. Okay so that guarantee cost. You know every bank has a bank guarantee charges.
They charge 1% percent or 1 1/2% annualized. And if I giving the two years guarantee so that documentation cost that would be there. That is not a. Not the draft cost. I can tell you. So 25 to 30 crores is the going to be continuation of the utilization of the non1 facilities. Hello.
Deepak Poddar
Yes. Yes. Yes.
Bharat Kumar Vageria
Yeah. Non1 facilities documentation charges, import charges because we do the import 60% document imports. So that that’s only will continue otherwise around 607 crores. Which company were utilizing earlier if average cost of 9%. So that 60 crores will go away. Correct.
Deepak Poddar
And this will be visible in FY28. I mean assuming next six to nine months you you become debt
Bharat Kumar Vageria
before March 27, not next year. Of course.
Deepak Poddar
Got it, got it, got it. All other my queries have been answered. Yeah. That’s it from my.
Bharat Kumar Vageria
Yeah. Thank you.
Deepak Poddar
Thank you so much and all the very best.
Bharat Kumar Vageria
Yeah. Thank you.
operator
Thank you sir. Ladies and gentlemen, due to interest of time we will take this as the last question for today. I would now like to hand the conference over to Mr. Bharat Bulgaria for closing comments.
Bharat Kumar Vageria
So once again I would like to thank you my valued investor. Having confidence in the management and management assure you whatever commitment and guidance is giving we will try our best to achieve that in the. You know everywhere in the last 18 months challenging period. Everybody but in spite of that company has saved and achieved the growth because the company has a risk distributed geographically as present in the 11 countries. Company has a various segment which have a users are different. So if one sector is down company can get the revenue from the other sector.
So that’s the. That’s the management policy. Always have a de risk by way by geographically and product wise. And company as already mentioned and everybody knows is the professionally managed company who do. And every company has more than 4,000 people working in India and overseas. And each of the department is headed by the experienced professional people who have more than 20, 25, 30 years with the company. If you will see in my average age of the people in the company is around 35 to 30 CE because most of the people have grown with the company and they are continuing with the company.
I again thanks to my all valued investor to having a patience and listening to our management commentary for quarter on quarter and company management will continue to give update and insight time to time whichever is available with the company. Thank you very much.
operator
Thank you sir. On behalf of Kaviraj Securities Private Limited. That concludes this conference call. Thank you for joining us and you may now disconnect your lines. Thank you.
Bharat Kumar Vageria
Yeah, thank you very much.