Goodluck India Ltd (NSE: GOODLUCK) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
M. C. Garg — Chairman
Ram Agarwal — Chief Executive Officer.
Sanjay Bansal — Chief Financial Officer
Analysts:
Unidentified Participant
Vinay Pandit — Analyst
Harsh Vasa — Analyst
Yog Rajani — Analyst
Neal — Analyst
Darshil Jhaveri — Analyst
Sukhwinder Singh — Analyst
Ruchit Malu — Analyst
Keshav Kumar — Analyst
Sanyam Shah — Analyst
Presentation:
operator
Foreign. Ladies and gentlemen, please stay connected. The conference call will begin in next few minutes. Thank you. Sam. Sa. Foreign.
operator
Ladies and Gentlemen, Good day and welcome to Goodluck India Limited Q3 and 9 months FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this call is being recorded. I now hand the conference over to Mr. Vinay Pandit from Captify. Thank you Ann over to you.
Vinay Pandit — Analyst
Thank you. On behalf of Captify Consulting Investor Relations team, I welcome you all to the earnings conference call of Good Llhguck India. Today on the call from the management team we have with us Mr. Mc Gar Chairman, Mr. Ram Agarwal CEO and Mr. Sanjay Bansal, CFO. I would now request the management to brief us about the business performance highlights for the period ended December 2025. Their growth and vision for the coming year post which we will get into the Q and A I now hand over to the management team. Over to you Sir.
M. C. Garg — Chairman
Good afternoon everybody. It’s a pleasure to welcome all our investors analysts stakeholder to Goodluck Q3 F26 earning call the steel and engineering sector showed signs of strengthening in the later. Part of the quarter. And improved sentiments rising stability and business activity during December. Of course the whole of the year had been very volatile due to geopolitical tension which all of us must have been test due to the Trump Trump image which they played with the played havoc with the business we were part of it. However, in the month of December steel market witness a notable recovery setting a strong foundation for momentum into the new calendar year. Prices across most products have strengthened led by restocking in anticipation of further price hikes and improved buying sentiment across dealer ecosystem. Imposition of 12% safeguard duty on certain fleet products has effectively corrected the price imbalance catered by cheaper inflows and provided robust support to domestic producer.
In January 2006 alone price of hot rolled coil and crude oil coil improved by almost 4% reflecting positive impact of these major revival of post Marshall demand in construction in budget of 2026 and 27 Bajat reaffirmed government strong commitment for infrastructure land growth. Government has kept aside 12.2 lakh crore in the diversified growth rail speed corridor, industrial clusters, urban development and water infrastructure, reducing dependence on any single ministries capacity cycle and ensure steady demand utilization over expanded precision and hydraulic tube capabilities in the coming years. We also welcome nearly 15% increase. In. Defense allocation to defense location Capital outlay for defense forces rising sharply by over 21% looking to the situation on our borders and with our neighbors, it is a very positive step and we must be prepared for any eventuality coming haunting us. Haunting us. I’m sorry sir, you are not audible. Domestic procurement readiness backed by 1.3 lakh crore Yanmar for individual industries Extend the demand Runway for supplier of components forging precision tube fabricated structure used in artillery, armor system and aerospace platform these align perfectly with our advanced capabilities of good luck defense and airspace in steadily building including our ongoing production ramp up for 150mm artillery shells and secured export orders From a global perspective, operating environment remains fixed with geopolitical uncertainties fluctuating governmental prices continuing to influence trade flows. And create volatility in global benchmark however, there are structural positive emerging in India A concluding framework of an interim trade agreement with USA announced in February 2023 reset tariff improved market access and improve certain duties on key Indian export like Airgarh Park Placing Indian industrial and engineering products on a more competitive footing like by the successful curve of India EU trade free trade agreement opens a more predictable tariff revolution pathway for value added manufacturing at home Important depreciation of Ruby has played a role financing of export competitive in global market we are an export such company that already UN export of almost more than 1000 crore in last three years across our key markets demand drivers remain intact led by infrastructure engineering fast growing energy transition segment including solar, Wipro broader urban infrastructure these together will with healthy fiscal support recovering market sentiment Our focus execution in value added and defense segments Please good luck on consumer footing to capture emerging opportunities in both domestic and export we are trying to ramp up our capabilities in large habitat heavy wall interspers having trying to planning sales of 48,000 metric ton annually we are delighted with the response from our customer on quality Our product has finished Hydraulic tube alliance conduit pipe and front four tube wheeler will be added to we are planning to add these products to our front these all the products what I mentioned are the high value added item and with a very substantial EBITDA margins We are bullish on airplane defense and production which we start in the third quarter.
We have eight. Months order in hand and two years loi with us. We are confident that this plan what I have envisioned now will have a bright future for us and we are bullish on defense and airplanes and all our planning on behalf of the board and the management I thank all our shareholders and Customers, employees and partners for their continued trust and confidence in our company. I will hand over now to my CEO Sri Ramagarwal to briefly floor.
Ram Agarwal — Chief Executive Officer.
Thank you sir and good afternoon to everybody on this call. As Mr. Garg has told our growth led by volume and margin expansion was driven primarily by better product mix, operational efficiencies and higher share of value added products. Increased depreciation during the period due to the expansion in autotube business which we call LDP business and investments in our defense subsidiary reflects our growth oriented capital expenditure strategy. The commencement of production at Goodluck Defence and Aerospace Limited is a major inflection point. The facility currently has an annual capacity of 1:50,000 shares and it is being augmented to 4 lakh shares per annum.
We see strong structural demand driven by the increasing indigenization and defence modernization initiatives in India. Order visibility for the next financial year remains strong and we expect this segment to meaningfully contribute to the margins going forward. And as we all will agree that energy and defense are the two main areas where global attention is today. Infrastructure is the need of today to achieve this energy and defense goal. GUI budget allocation shows our intention to align with the goal of world. Your company has perfect alignment with this goal in moving ahead and our defense perspective. It is one of our endeavor to get into this space and we see a very strong defence market for our products.
As in the second line of expansion we have also put in for aerospace. Aerospace critical forging parts. So we hope with the current expansion of 1:50,000 to 4 lakh along with the defense and aerospace along with the aerospace parts manufacturing it will be a game changer for the company and order visibility. As Mr. Gag has already told, we are booked for next one year and lois for next two years is available to us. The second sector which we are bullish that is the automobile tube segments continue to perform steadily with easing US tariffs and improving export sentiment.
We anticipate strong order flows. Our focus remains on expanding OEM relationship, improving realization through value added products and enhancing operational leeways. Our main aim is to be ahead of the curve. Value addition is our main motive. So whatever product we have started or whatever we want to start, we will be moving ahead with the value addition point of view only strong government led infrastructure investment continues to drive engineering structures and infrastructure segment. Government has given seven bullet trains as you all know that we have participated in the first bullet train from Ahmedabad to Mumbai and we have almost completed the 90% order.
The rest will be completed by March. And this new opioid of the seven New bullet trains it is we expect that we will be in the front line to be benefited by this and the railway infrastructure. What government has put in today, even the today newspaper also says so we are in the front row. If there is any opportunity, we will catch it. Your company will catch it. Our experience in executing complex time bound projects including high speed rail infrastructure positions us well for the participating in other corridors. Our annual capacity utilization remains strong at 92% reflecting demand resilience and efficiency.
Production planning with 5 lakh ton installed capacity across six facilities and increasing share of high margin product, we are steadily strengthening profitability. Going forward our priorities remain clear. Scaling defense operation, increasing share of high margin value added products, maintaining strict cost discipline, working towards improving the margins. With a diversified business model, expanding presence in sunrise sectors, strong balance sheet and healthy cash profits, we are confident of delivering sustainable growth in the coming quarter. As you all know that we have already caused this solar mission 267 gigawatt. We have added till today 52.7 gigawatt only in this year.
So your company is in that sector also. We are supplying the transmission tubes as well as the solar structures for them. And this year we have done almost a very good business. And next year we hope we should cost 600 to 700 crore basis in this sunrise sector of the solar structures. And as far as order booking is concerned for our infrastructure division we are booked for next one one and a half year. And in our automobile division we are having a visibility as we already told we are having visibility quarter wise. So we are having visibility of next two quarters and the final two quarters they are always good.
So from automobile infrastructure and defense these are the three areas where your company will be putting more. All of the efforts, all of the capital and we hope you all will appreciate this. Thank you.
Sanjay Bansal — Chief Financial Officer
Good morning everybody. I Sanjay Bansal, CFO on behalf of good luck, welcome you all for joining us for the conference on performance of the company in Q3 and 9 months of financial year 2026. Regarding Q3 performance standalone the sales was increased to Rupees 1031.58 crores as against 941.98 crores during Q3 of previous year registering a growth of about 10%. However, sales volume have increased by 8% during Q3 of current fiscal as compared to Q3 of previous year. EBITDA for the quarter stood at 9.7% of sales at Rupees 99.72 crores as against 82.48 crores during Q3 of previous Year that before exceptional item net of tax stood at 43.47 crores registering a growth of 8.4% on year.
However patent Q2 of current fiscal was 41.30 crore. There was a growth of 5.25% QoQ basis the performance of the company in nine months of current financial year sales has been increased by 6% above EBITDA. Margins have improved to rupees 291.61 crore with 9.7% of sales as against 8.74% during nine months of previous year. However pat margins have increased to rupees 124.91 crore as against 119.61 crore during nine months of previous year. Consolidated of names of current financial year has been at rupees 3011.82 crores and Pat was at rupees 126.47 crores. The earning per share has been at for standalone at rupees 12.83 per share in Q3 as against 11.85 rupees per share during Q3 of previous year.
However the EPS of The company in nine months of current fiscal year stood nine years for standalone was at rupees 37.40 per share. On financial front, our interest cost have marginally gone up due to increase in current assets as compared to 9 months of 9 months period of previous year expenses, Salary expenses and other expenses have marginally increased due to increase in turnover of the company. Thank you very much.
Questions and Answers:
operator
Now we are open to qa. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the 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. We’ll take our first question from the line of Harsh Vasa from SBICAP Securities. Please go ahead.
Harsh Vasa
Thank you sir for the opportunity and congratulations on a decent set of results. So my first question was that could you provide us the segment wise breakup for the segments for third quarter and nine months and the second question is that so regarding the CapEx like the new Capex which you’ll be doing for the defense by increasing the capacity of of our daily shares from 1 lakh 50,000 to 4 lakh. So what would be the intervals is to debt mix? Second question was that and so the revenues will be start flowing from like FY27 or FY28.
And so the last question is that what is the capacity utilization of hydraulic teams in the third quarter?
M. C. Garg
I request you pay. You put the question one by one. Then it will be more easy for us to answer for you.
Harsh Vasa
Sure. Sure sir. So my first question is sir, could you provide us the segment wise breakup of volumes for the third quarter and nine months of all the. Of all the divisions. That is the first question.
M. C. Garg
We will. We will provide you. Not an issue. We will say we will send you a mail because it’s a lengthy part. We will send you.
Harsh Vasa
Okay sir. So the next question is that. So you are doing a capex of 500 crores for increasing the capacity of defense artillery shares from 1 lakh 50 to 4 lakh. So could you just provide what will be the mix of internal accruals is to debt financing.
M. C. Garg
So for this, for this augmentation of capacity from 1.5 lakh to 4 lakh we will be incurring expense of almost a capital expenditure of almost 400 crores out of that. That part will be financed through some equity and some. Some bank loans. So for the. And as far as the internal equals are concerned that will be the part of the equity at that time.
Harsh Vasa
Okay so but any percentage how much will be loan like out of 400 crores how much would be the loan percentage? Like 50%, 30%.
M. C. Garg
Example it will be 60% it will be equity and 40% it will be loans.
Harsh Vasa
Okay sir. And sir, this. The revenues from the incremental defense artillery shells will start flowing from FY28 or FY27.
M. C. Garg
Sir, it will take almost a year’s time. So you can expect from the first quarter of say April 27th it will be started.
Harsh Vasa
Okay. And so what will be the capacity utilization of hydraulic tubes in this third quarter?
M. C. Garg
What will be the capacity utilization of the hydraulic tubes? Capacity utilization of hydraulic tubes. It is running around 40 to 45% right now. But in the coming two quarters as this US tariffs has eased. So we hope that in the next two quarters it should go almost 60 to 65%. Because it’s what the easiness that Trump has given it will pervade in the system. It will take some time, 2/4 or 3/4. Then this cost, this will be ramped up to 65%.
Harsh Vasa
Okay sir. Okay, that’s it. Thank you.
operator
Thank you. Next question is from the line of Pratik Talwatkar from Smith Institutional Research. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity. So in the Last quarter you guided for the 15 to 20% revenue growth for the FY26. So now the steel price has started to move up. So are you revising it upwards for the FY26 and what will the guidance for the FY27 if possible? Pratik, can you please mute your line? There’s some background disturbance coming on your line. Thank you.
M. C. Garg
Hello? No, no, it is good. Yeah.
operator
Hello, Pratik, can you use your handset please?
Unidentified Participant
Hello? Now it’s the clear, ma’. Am.
operator
Yes, and please mute it once your question is done. Yeah, thank you.
Unidentified Participant
Yeah, sure. Yeah, sure. Thanks for the opportunity, sir. So last quarter you guided for the 15 to 20% revenue growth for the FY26. So now the steel prices have started to move up. And so are you revising it upwards for FY26 and if possible, can you provide the guidance for the FY27 as well? Yeah, thanks. That was my first question.
M. C. Garg
Our perception towards the market is that our prediction for the 15 to 20% growth it remains the same as in this year. It could not be because the prices were downside. But as you have rightly said that now the prices have started increasing and the markets from this December, December 2nd part markets have also improved. So we remain hopeful that we will be achieving 15 to 20% growth for this year and it will be better in the FY27.
Unidentified Participant
Yeah, and my second question was about. Can you tell me about the EBITDA. Pattern that which was clocked in the Q3, FY26 and nine month. FY26?
M. C. Garg
Yes, definitely. It is for this quarter it is 8200 approximately. And for the nine month it is 8200. It is. It remains the same 8120 and 8240. So it remains in the range of 8200.
Unidentified Participant
Yeah. Okay, thanks sir. And my last question was what is. The value added mixed in the Q3. And the nine month FY26 and what. Do we expect in the near future? The mix in the future?
M. C. Garg
Right now it stands from 56 to 60%. And in the coming year we hope it should go from 60 to 65%.
Unidentified Participant
Okay, thanks.
operator
Thank you. Next question is from the line of Yog Rajani from Omega Portfolio Advisors. Please go ahead.
Yog Rajani
And for taking my question, my question is regarding the good luck defense and aerospace business. So as I understand we are increasing our production by around 250,000 shells. By that estimate we should. I assume that we are trying to fully utilize a 150,000 shell per annum capacity in the first year. Is that a proper understanding?
M. C. Garg
Yes. By the next quarter we will be using our almost 90% capacity. Say 1 lakh 50,000 is the installed capacity. And we will be using almost 1 lakh 35,000. And when the augmented capacity is executed it will be almost 3,50,000 shares per annum.
Okay, that’s brilliant on that. Could you just tell us what our expected revenue and margin EBITDA margin will.
Yog Rajani
Be. Expected revenue right Now. What is one 50,000 capacity? Expected revenue is 300 crores. And with the augmented capacity the revenue will be almost 900 crores. And the EBITDA margins will be almost 30% right now. And we hope it will go in the range of 30 to 35% in the coming year as well. Okay, that’s brilliant. Thank you so much.
operator
Thank you. Next question is from the line of Neil from Rockwell. Please go ahead.
Neal
Thank you everyone. Also my question is. So like since we are investing around 500cr capex for the artillery shells project. So once it reaches full capacity of manufacturing 4 lakh shells per annum what can be the revenue potential? We can that.
M. C. Garg
As I have told this augmented capacity with the present capacity of one like 50,000. There is one more. There is one more line. That is the aerospace and defense. That is the aerospace line in there. So a combined. Combined combined top line will be 900 to 1000 crores.
Neal
Okay. And what about the individual top line for the artillery project?
M. C. Garg
Art life project. It will be almost 800 crores for the artillery product and 204 for the aerospace products.
Neal
All right. Thank you sir.
operator
Thank you. We’ll take our next question from the line of Darshill Zaveri from Crown Capital. Please go ahead.
Darshil Jhaveri
Hello. Good afternoon sir. Thank you so much for taking my question. Firstly, congratulations on a good set of results. So just wanted to know sir. The defense is going to start contributing from Q1, right? But will there be any contribution in Q4, sir, from the artillery space, sir.
M. C. Garg
Yes, it is likely to be. And we hope almost 60, 70 crores will be contributed in. In Q4 as well. But from Q1 it will be. It will be contributing fully.
Darshil Jhaveri
Okay. Okay. Okay. 60, 40 crores you can expect. So that will also be interactive, right? Because the depreciation they’re already taking in. So our pad should, you know, you know get very positively impacted because of this, right sir? Like is that the right understanding? So this 60, 40 crores will get. We are saying.
M. C. Garg
Yes, you what your understanding is perfect. The only issue is we are just. Our production is Already on. We are just awaiting further final permission for dispatch which now which comes from the government of India. So if it comes, so what I have committed you, it will be done.
Darshil Jhaveri
Okay. Okay. Okay. So that’s a great news. And sir, the aerospace division that we are talking about that will come in the financial year FY28, right? It’s not something going to contribute currently, right sir.
M. C. Garg
Yes, you are very good. Because it will take only one financial year it will take to get everything on track for the aerospace and the augmented capacity of shells.
Darshil Jhaveri
Okay. Okay. Sir, as I just wanted to know, right. Right now we are at nearly 92% you know, capacity utilization and on that like we are doing around 10% EBITDA. Right? So this is the peak EBITDA we can do, right? Because whatever operating leverage we are supposed to have that’s you know, factor in, right? Or like in the arc below. Like if I separate good luck into two divisions, one are current and one are defense and aerospace. So in good luck standalone, what is the you know, EBITDA margin we can expect sir for next year?
M. C. Garg
EBITDA margin because of whatever you are seeing, it is from the standalone basically. So the EBITDA margins which we are operating, they, we expect they will also increase because we are doing continuously product as well as market market mixing. We are going for the new markets, we are going for the new product mix. So we hope this margin should also increase. But how much time will tell and when this defense will end then jump in ETA margins will come in the consolidated unit.
Darshil Jhaveri
Okay. Okay, fair enough. So, and so last question from my answer. So so Overall like for FY27 what we are saying is that 15 to 20% growth in our normal thing and then on that addition defense revenue comes right. Of 300 crores or that 15 to 20% growth is including the defense search.
M. C. Garg
It will be included. It will be included.
Darshil Jhaveri
Okay, so FY20, 15 to 20% growth is including. Okay so then sir, in the standalone are we planning any capex? Because it’s already at 92%. So sir, we bound to run out of the, you know, capacity and already kind of running out of capacity. So the growth from standalone will, you know, come only due to, you know, value mix. Right. So any plans for capex out there? Sir.
M. C. Garg
Basically I have told you we are interested not in the volumes, we are interested in the bottom line. So okay, it has gone to 92%. But our product and market which are our two tools which we will be using, which we have, we have been using and we will be using. So maybe it may be 15, but the profit side, your EBITDA side, it will increase significantly.
Darshil Jhaveri
Okay, okay, fair enough. And to this last sorry question from my answer. So we just declared it right now sir, but with such a heavy capex coming in, you know we are planning to raise debt and some equity. Then why are we you know giving dividend? Like just wanted to know the rationale behind that sort of. You mean to say that we should not give dividend?
M. C. Garg
Sir, if we company can earn more than us then why not? Sir, we are as it is getting taxed more on dividend. Company share price increases are more happy than the dividend. Sir, actually you are. You are very correct. We should think. But our management view is that our shareholders, yes they are getting the. They are getting the benefit of the improvement. They are getting the improvement in our capacity expansion. But at the same time they should get something, whatever is possible. We should give in the dividend that the management use.
Darshil Jhaveri
Okay. Okay, fair enough. Yeah, that’s it for my side. So thank you.
operator
Thank you. Next question is from the line of Sukhvinder Singh from Bob Capital Markets. Please go ahead.
Sukhwinder Singh
Yeah, thanks for the opportunity. Sir. Sir, my question is on the input cost. If we look at the last two months the steel prices have moved up. So I just want to understand how this is going to impact in terms of input cost for you in primarily for the three segments of this forgings and then auto tubes and shear coils. These three segments do you have the pass on ability with the lag? So just I wanted to understand that thing.
M. C. Garg
Your question is very, very intelligent question, sir. So basically whenever the prices go up it definitely impacts our input cost. But as you have said we are in the valuation sector. So if you go for the automobile tubes there is a pass through but it comes with a time lag. Suppose in the third post quarter it has increased. So we will have to wait for another two quarters to have it. But we will get it. As far as our infrastructure sector is connected there it is a complete pass through. Because we have a declared price policy.
And in terms of defense raw material, raw material contribution is less. So it will not affect much. So in all if you see is in our conventional business it may impact something. But in our value addition business it will not impact us significantly.
Sukhwinder Singh
Okay. And second question on the defense part, just to understand more like you said that the combined revenue from ammunition cells and the defense subsidiary would be about 900 to 1000 crore. Okay. So separating that 800 crore for artillery shells and 200 crore for defense. So I just want to understand this 200 crore. What is the timeline by when you will be achieving that? And what is the beta margin in that 200 part in which you supply parts to this missiles, rockets. That I wanted to understand.
M. C. Garg
Okay, your second question is for the aerospace. For aerospace it will be done with the. As I have told in April 27 it will be executed. Production will come. As far as EBITDA margins are Concerned they are 28 to 32%. They are what we expect right now. Because India is more and more pressing on the air and all the like. This MCA125 plane order is there. Our civil part there is 5,000 planes have to come. So India is spending more and more on the aero capability. So that sector right now I said that is 28 to 30%.
But in near future it can improve. It should improve. And the first question I forgot. Can you repeat.
Sukhwinder Singh
So I just. Yeah. I wanted to understand for this only EBITDA margin. So. But my question is that going forward with number of suppliers I think it’s more than. Must be more than two or three. Is it the risk that EBITDA margin can come down say over three to five years in aerospace part from 28 30%.
M. C. Garg
Sir is aerospace part. I will not agree with you because India is doing nothing. HAL is having a order line of almost 9 lakh 50,000 crores. ADA is coming with this MCA125 planes. Now Adani is coming. So India is doing nothing in the aerospace sector. Now this is the time when the demand will increase. A more knitted value chain system, a more needed vendor system is required. Where the vendor partners contribution will increase in this aerospace sector. Now India has put the condition a minimum 60% valuation should be there even in the coming tenders. I understand they can say even hundred percent you have to make in India.
So India is no supplier system right now. So a strong supplier network is required. And I hope this is a sector, this is a sunrise sector which will be. We are saying 200 crores. But I am sure we will have to put another machineries to take it to further height. India needs it. There is no high and value on this.
Sukhwinder Singh
Okay. So broadly as I tell your blended EBITDA margin from 9.9% should go up with these to primarily beta margin from Defense coming at a higher level. Right?
M. C. Garg
Yes, yes. Yes.
Sukhwinder Singh
Okay. And one last question. The investment in defense last year was about 39 crores. So till 9 month any incremental investment has Been put up in defense 39 crores.
M. C. Garg
No. Yeah, I suppose you. You have to collect the data because we are. Please correct it because we have put almost 300 course in this defense division. So just maybe in. In a month over here and there there may be some data correction.
Sukhwinder Singh
Sure. Okay, that’s it. From my side.
operator
Thank you. Next question is from the line of Churchit Malu from hni. Please go ahead.
Ruchit Malu
Hi sir. Am I audible?
M. C. Garg
Yes, yes. Actually I’m using.
Ruchit Malu
So my question is regarding the defense business. So what was the revenue contribution from the shell business in this quarter like Q3 of 26?
Ruchit Malu
Please repeat your question.
Ruchit Malu
It is not clear. Can you use your handset and repeat the question please? Sir, I was asking what was the revenue that we have clogged from the. Shell business in Q3 of 26.
M. C. Garg
In Q3 it is not significant because only production has started. It has not started selling. So the contribution will come in this Q4 and the Q1 full contribution will come in the Q1 of next financial year. This year it is insignificant in this quarter. So like earlier I think we had. A target of 100 crores from the shell business. So are we in line with that for FY26? We are very much in the line. But the issue is because it needs some permission to dispatch. So we are waiting for the dispatch permission and as I have already told that even it comes delay. So we will be doing almost 60, 60 crores this financial year.
Ruchit Malu
Okay, I have just a booking bookkeeping question. Our other operating expense has increased by like from 14% to 16%. So what was that specifically. You see expenses, overall expenses there is no increase. But if you go in further detail some expenses increase, some expenses decreased.
M. C. Garg
So overall percentage of expenses same 94.4%. And earlier it was 94.5%.
Ruchit Malu
Okay, that’s a common proposal.
operator
Thank you. Next question is from the line of miraj Shah from Chem9 LLP. Please go ahead.
Unidentified Participant
Thank you so much for the opportunity. Sir. I had questions regarding the shell business only apologies if this question was asked before. I recently joined the call sir. I wanted to understand the industry size over here. Particularly for India and globally. So I just wanted to understand what is the requirement for 155 mm shares in India and the same for globe globally as well. That is my first question.
M. C. Garg
As you know this 155mm shell, this is the one version. All the world demand has converged to 155mm in last one one and a half year since the inception of this Israel, Gaza war or this Russia, Ukraine war. Because otherwise earlier more versions were there 92 mm, 125 mm, 132 mm. But now it was, it was a pressure on the country that you have to put more of the guns, more types of the shells. So it has converged to 155mm. Now as far as demand is concerned we don’t have any data. But as from the Internet you can also study.
It shows that the world is. Right now world is having a capacity of almost 3 to 3.5 million. And that capacity is not today, it will come in next three years. It is a combined capacity which will be 3.5 million. But if you see the world demand today it is almost 7.5 to 8 million. Reason being, there is a initiative Rearm Europe because Europe has given a budget allocation of 815 billion euro. Because narco US has virtually withdrawn. So all the 27 countries have to ramp up their production facilities. They don’t have, they have nothing.
Whatever they had in the stock that has been consumed in these two wars. And many other more wars are going in India, India, across Africa or many other small countries. So Sprog is not available. And moreover the most important thing is demand is outstripping the production. So the way, if you can say the gradient, the gradient by which production will increase that is much, much lesser than with the gradient is the demand will increase. So there is clearly a gap of this arms and ammunition particularly 155mm. So I see no doubt of demand in next four or five years.
Ruchit Malu
Understood. For the next four, five years you see a lot of demand. Okay, my next question. Sir, since you you have mentioned that the demand is increasing over here. If you can just explain how the pricing is currently moving at the moment. Because if I’m not wrong, the pricing is. The pricing is determined. With the international players globally the pricing is determined. So what is the current pricing for this? And also in India which other players have received the approval like you, the license approval like you?
M. C. Garg
Sir, I can explain you. The pricing will be divided, decided by demand. At present demand is outstripping the supply. And there is no reason for us to doubt. Even many players coming into the field will be able to fulfill the demand. As per my information, India needs 48 lakh per year. These 155 mm current nobody can supply in India. Nobody can supply in India. Even many players, even 10 players coming will not be able to fulfill the demand. So rate will be decided by the supply constraint. Right? But you would have you would have signed some contracts right now or you would have. You might have some visibility. Know what the pricing currently is going on. Basically what you are talking it is a price concept. The price concept. As Galsav has said it is always decided by demand and supply. But in this case because demand is outstripping the supply. So price will be. The price will be decided by only the pressing needs. Suppose how it should not be on the operation one. On the operation. Sindhur, we were out of the calibers on the second day. So suppose as India is now bounded by all the three and they all are not at good relations with India. So if it such happens. So there will be a exotic demand.
There will be unprecedented demand. So price will be decided at that time. Moreover, there are more versions coming on the shelf. We are already investing our R and D team is involved for the advanced version of this. Because this is the basic version, you know. I know. But market is moving ahead with the demand with the more versions. And those more versions will attract more price. So don’t worry about the prices. We are on the right track on the technology as well as the market.
Ruchit Malu
Understood. Okay. At least sir, if you can just help me with what are the margin going forward? What do we expect the margins to be going forward? For the shells part, is it 30% or more?
M. C. Garg
More than that or lower than that. So putting a figure of 30% is imaginary. It can be more.
Ruchit Malu
Than 30. Got it. Okay. Thanks a lot. That’s it. From my side. Thank you so much.
operator
Thank you. Next question is from the line of Keshav from Raksan Investors. Please go ahead.
Keshav Kumar
Hi sir. In the shells and aerospace business would. The customer only be government of India or would we be selling to other customers as well?
M. C. Garg
It is a total word. It is a global demand. It is not only government of India. The total world has to total word is looking for it.
Keshav Kumar
Answer. So when it. When the business goes to full scale of 900 to 1000 crore. How much working capital do we foresee. We’Ll require to fund that business?
M. C. Garg
We expect. We expect almost 200, 250 crores kept working capital will be required at that time. When we reach the peak.
Keshav Kumar
Okay. All right, sir. That’s all for myself. Thank you.
operator
Thank you. Next question is from the line of Harsh Vasa from SBI Cap Securities. Please go ahead.
Harsh Vasa
Yeah. Thank you for the follow up question. I just had one question. So what was the CAPEX which we incurred during nine months FY26 and what will be the capex for this remaining three months, that is four QFY26 and capex for FY27 and FY28. Total capex already done till 31st December. Was rupees one hundred and eighty six crores. And in fourth quarter we expect about 30 crores capex. Okay, answer. So FY27 and 28. Any ballpark figures?
M. C. Garg
The 2728 still is working because the natural maintenance capex is. It will go as per the schedule. However, as per our new plans to introduce our capacity augmentation in defense, it is still in the working stage. We will let you know.
Harsh Vasa
Okay, sir, thank you.
operator
Thank you. We’ll take our next question from the line of Sanyam Shah from Solidarity Investment Managers. Please go ahead.
Sanyam Shah
Hi sir. Thank you for the opportunity. Am I audible?
operator
Yes, please go ahead.
Sanyam Shah
Yeah.
M. C. Garg
Sorry, in the background there was some. But now it is audible. Please go ahead.
Sanyam Shah
Yeah, so within the CR sheets and pipe segment which is our, you know, conventional business, how much revenue is today contributed by Solar Tracker Tubes? And you know, how much was this two years back? Can you just give a ballpark range right now?
M. C. Garg
This year it should remain almost 400 crores. And as you are talking over the last two years it was almost 250 crores. And in the coming years we hope it should be 650 crores. 600 to 650 crores for the next financial year. Transmission tube and the solar structures.
operator
Thank you. Yes, sir. His line is disconnected. Ladies and gentlemen, to ask a question, please press star N1 on your phone. As there are no further questions, I now hand over the conference to the management for closing comments. Over to you, sir.
M. C. Garg
Thank you for all the people who participated in this concord. We express our gratitude for our shareholders, for our viewers, for our listeners. Thank you.
operator
Thank you. On behalf of Good Luck India Ltd. We conclude this conference. Thank you for joining us. And you may now disconnect your lines.