AGI Greenpac Ltd (NSE: AGI) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Navin Agarwal — Head, Institutional Equities
Om Prakash Pandey — Chief Financial Officer
Rajesh Khosla — President and Chief Executive Officer
Sandeep Sikka — Group Chief Financial Officer
Analysts:
Anil Shah — Analyst
Shreya Chatterjee — Analyst
Darshil Jhaveri — Analyst
Sandeep Mukherjee — Analyst
Praveen Sharma — Analyst
Presentation:
operator
Ladies and Gentlemen, welcome to AGI Limited’s Q3FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the management’s opening remarks. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Naveen Agarwal Head Institutional equities at SKP Securities Limited. Thank you. And over to you, sir.
Navin Agarwal — Head, Institutional Equities
Good afternoon ladies and gentlemen. It’s my pleasure to welcome you on. Behalf of AGI, Greenpack Limited and SKP securities to this financial results conference call. We have with us Mr. Rajesh Khosla, President and CEO, Mr. Sandeep Sikha Group CFO Mr. Om Prakash Pandey, CFO. We’ll have the opening remarks from Mr. Omprakash Pandey followed by the Q and A session. Thank you. And over to you, Mr. Pandey.
Om Prakash Pandey — Chief Financial Officer
Good evening everyone and thank you for joining the AGI grid by Q3FY26 admin call for those following along. Our detailed admin presentation is already available on our website and on the stock exchange portals. Before we begin, please note the standard disclaimer regarding forward looking statement on slide number two of that presentation. I would like to begin with a quick overview of our performance for the nine months ended 31st December 2025. During the period the company reported revenue of Rupees 1923 crore up from Rupees 1824 crore last year. This growth reflects strong performance in select segment and our continued focus on premium products.
EBITDA stood at rupees 484 crore slightly lower than rupees 497 crore in nine months ending FY25 while profit after tax increased to 236 crore from rupees 236 crore supported by disciplined cost and expense management. Looking at the quarterly performance in Q3FY26, AGI Green park recorded revenue from operation of rupees 634 crore, EBITDA of rupees 154 crore and profit after tax of rupees 71 crore which includes exceptional item of rupees 5.09 crore. Related to estimated impact of the Labor Code implementation, revenue improved sequentially while EBITDA saw a slight decline reflecting market dynamics and pricing adjustment across the segments.
Looking at profitability, EBITDA margin were lower compared to the same period last year. Mainly due to the combined effect of muted volume in certain product category and adjustments in average sales realization. That said, we continue to maintain our 12 to 18 months margin guidance excluding non operating income in the range of 24 to 25% margin are based assessed on annualized basis rather than quarter to quarter basis. On the balance sheet front, we remain financially strong during Q3. The company completed the prepayment of remaining ECB loans in December 25th resulting in nil ECB borrowing. As of 31st December 2025, net book debt stood at approximately rupees 389 crore providing us with the flexibility to support future growth initiatives.
This slight increase was partly due to delay in order deliveries in certain product categories. Now I will hand over the call. To Mr. Ravish Khoslal to walk you through the key strategic and business highlights that underpin our continued growth trajectory.
Rajesh Khosla — President and Chief Executive Officer
Good evening and thank you Mr. Pandey. Mr. Pandey has walked you through the financial performance for the nine month ended December 31, 2025. Building on that overview, I’ll focus on the business, our execution priorities and the growth roadmap ahead. Talking about the container glass, our sales volume increased around 10% over Q2FY26 though they were slightly lower by 2% compared to Q3FY25. Capacity utilization remains strong at around 95%. On the pricing front, sales realization decreased by approximately 450 rupees per tonne versus Q2FY26 and rupees Baraso per ton versus Q3FY25. These variations are primarily due to the regular adjustment built into our contracts with the liquor customer and other customers.
We are pricing is reviewed in line with the key raw material cost movement typically flowing through the 1/4 leg. Turning to the specialty glass business, sales volume was largely flat compared to FY26 but up more than 13% over Q3FY25. With capacity utilization at around 85%. Realization improved significantly increasing by around 900 rupees per tonne versus Q2FY26 and 6,800 rupees per tonne as compared to Q3FY25. Overall volume in commercial gas business was subdued this quarter, particularly in the beer segment due to seasonal factor and temporary deferment of deliveries by the customer on account of weather related considerations.
We expect volumes to recover and normalize in the coming quarter. Over the past nine months we have continued to strengthen the company through discipline, execution and a clear focus on premium and specialty segment. Our strategy remains centered on operational excellence, timely Capacity additions and portfolio diversifications to build a resilient and scalable business. On the operation front, we had delivered the strong progress. The container glass debottlenecking project has been fully completed and commissioned, increasing capacity to 1900 tons per day well ahead of the earlier March 26th timelines. This earlier completion reflects our execution capabilities and enhances our ability to serve customers customer reliably and efficiently.
With commercial container glass plant operating at approximately 95% utilization, we continue to see through strong demand and high level of operational efficiency across our plants. In specialty glass, the capacity expansion to 200 tons per day is progressing as planned and remain on track for completion by March 26. Demand continues to be steady from high margin segment such as pharmaceutical, cosmetic and premium beverages with existing capacities operating at around 85% utilization reflecting healthy demand and efficient operations. Our greenfield container glass facility in Madhya Pradesh is also advancing steadily. Land acquisition has been completed, civil construction is underway and procurement of key machinery is in progress with major equipment contracts being finalized alongside statutory and regulatory approvals scheduled for commissioning in March 27th.
The 500 tons per day facility is expected to increase our glass container capacity by approximately 25% and significantly strengthen our footprints across key consumption market particularly in north of India. In parallel, our strategic entry into the aluminium beverage can segment remains on schedule. Equipment procurement is in final stages for the annual capacity of 1.6 billion cans. This expansion complements our glass business, strengthens key customer relationship and enhances our ability to to offer a broader range of high demand sustainable liquid packaging solutions. Looking ahead, the long term fundamentals of glass and sustainable packaging remain strong. With completed capacity, addition, a growing premium product portfolio and continued operation discipline, we are well poised to capture future growth.
We remain focused on building a diversified future ready business and on creating a sustainable long term value for our shareholders. Thank you very much.
Questions and Answers:
operator
Excuse me, sir. Should I go ahead and open the floor for the Q and A? Thank you very much. Thank you very much, sir. We will now begin the question and answer session. Each participant is requested to limit to a maximum of two questions. To time permitting, we shall revert for any further questions that you may have that remain unanswered. Anyone who wishes to ask questions may please press Star and one on the touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only handsets while asking a question.
Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press Star and one to ask questions. The first question is from the line of Anil Shah, from Insightful Investments. Please go ahead.
Anil Shah
Yeah, good evening. Am I audible?
Rajesh Khosla
Yes, please.
Anil Shah
Yeah, so just wanted to check, you know we consistently spoken about 8 to 10% revenue growth. Of course now when I look at the first nine months cumulative we are up about 5.4 and we just have. A quarter to go. So you know what really transpired in the third quarter? Clearly revenue was not up to your expect possibly our expectations. So that’s the first question. The second question is could you just explain clearly our, you know, what’s in mind in terms of our entry into retail. Could you just specify what exactly are we looking to do? You know, are we looking to build brands? What’s going to be our spend in while we understand everything will be outsourced but you know, in terms of building brands, do we have some limits in terms of what we are looking to spend on? And you know, when two greenfield projects are on, do we really need to go on to something different? That’s the most important question that I really had.
Rajesh Khosla
Let me reply to you. I understand first two questions of yours. What exactly has transpired in quarter three which basically should have been a normal thing. You might have read some reports from some of the top beverage manufacturers in India and even in the world they have been talking that because of the extended rains and the extreme winters in particularly in the whole of India, there has been a very subdued demand of various beverage segment, particularly in the beer segment. So because of this subdued demand in the peer segment because of these extended rains and a flooding in lot of areas.
So this demand has not picked up and it has been little low than the normal demand in this period. So this has been the reason for the little small correction and a shade below our expectation. Number two is what exactly we want to do in the retail. We are already in the retail business as of date we are selling our products in the retail business on online, offline, on our horeca, on our various departmental stores. So this business is already on. But what happens is with the new FTA agreements between India and eu, India and uk, India and Australia and within the India also lot of customers are asking that we should try to serve them with the filled products, say for example like a diffuser or a perfume or something like that.
So we should give them the full end to end service so that they don’t have to go anywhere else to get it done. So India is already shaping up as a good hub of the manufacturing segment. So we thought of that. We can always give this Sort of a facility and a service to our customers where we can give them end to end. So this is a new concept we are trying to evolve and to serve our customer. As on today, we are not thinking we are going to build a brand with that, but we are going to serve as a OEM to the brand, brand owners so that they don’t have to go anywhere.
And at a single shop, at a single place, we will be able to serve them the products which are primarily packed in our bottles.
Anil Shah
So would that entail some manufacturing to be set up or is. So you’re saying we are not doing brand building. So are we then going to do manufacturing?
Rajesh Khosla
No, we are not doing a brand building. Our core business is to sell the glass containers. So we are selling the glass containers. But we do have a lot of manufacturers on our panel. So they will be our. We are going to outsource that activity to get it filled from them and then serve our customers to them. And tomorrow when the business will grow up and the business will shape up, then probably we will think of on the next step of manufacturing, our having our own manufacturing facility. But as on today, we are going to get it done through outsource activity with that.
Right.
Anil Shah
So. And you know, as we begin the Q4, are we seeing this subdued demand due to the weather conditions easing a bit and things looking up?
Rajesh Khosla
It looks like that now everything has been okay and things are normal and everything will pick up. So there is nothing lost as such. But it is a postponement, I can say like that. It is there. So at the end of the day we will be restricted to our capacity. So we have an. We have whatever capacity we are having. So we are going to achieve almost whatever is our target of the capacity side. So, so Q4 will be able to take care of whatever is the shortfall in the Q3. So we are quite hopeful with that.
Anil Shah
So can we still pen something? Can we still think of an 8 to 10% value growth for the whole year as such? That was the original revenue growth guidance.
Rajesh Khosla
See, See whenever there is a when, whenever we are dealing in a commoditized products like even a glass, also where the price of the glass is also dependent on the price of the raw materials. Sure. So, so, so the whenever the price of the raw materials are low, the selling prices automatically adjust accordingly. Just on a growth side of, I can say volume side or on a metrical side, I think we will be touching close to 7 to 8, 9%, something like that. We are going to end up. But yes. On the value side I think so there may be a little bit of correction here and there, but that is primarily because of adjustment of the raw material prices which are understood directly reflected in your selling prices.
Anil Shah
Just last question as a follow up, volume growth for the first nine months was how much?
Rajesh Khosla
Hello. Yeah.
Anil Shah
Volume growth for the first nine months was how much?
Sandeep Sikka
On the container glass we did around 8%. Volume growth on container glass it was about 8.
Anil Shah
On the commercial.
Sandeep Sikka
On the commercial glass we did around 8% plus. And on the specialty glass we were at.
Rajesh Khosla
You asked volume growth more than 20, 22% growth.
Sandeep Sikka
Yeah, more than 20 22% volume growth.
Rajesh Khosla
Okay.
Anil Shah
Okay, thank you. I’ll be in the queue for further questions.
Rajesh Khosla
Thank you. Thank you. Thank you.
operator
Thank you. The next question is from the line of Shreya Chatterjee from Ageless Kapati. Please go ahead.
Shreya Chatterjee
Thank you, sir, for taking my question. Good evening. My first question is on the volatility of the contracts that are priced in. On in terms of volume terms. So for the specialty and the this container glass as well, what sort of fluctuations can we expect apart from that broad range of growth? What sort of fluctuations we can expect given there’s a seasonality in demand similar to what happened in Q3. And what would be the impact on EBITDA given that we have commissioned the facility earlier, before March 2026 and the next facility is going to come on March 27th.
So if you could just give a brief breakdown on these two.
Sandeep Sikka
I think if I understood your question completely, part one, let me reply to you if my answer is not in line with what you have asked, so you can again ask me the same. See, I understand that you’re talking what are the factors are there which can really impact the curve or impact the growth of the glass industry in both in cosmetic and commercial glass. Is my understanding right?
Shreya Chatterjee
Yes, yes. And how, how does that variability like.
Rajesh Khosla
Price, that is the context, that is a part two of that. So we’ll in the part one question, of course, because whenever you are planning, you are planning with the assumptions that all the factors are within the reasonable level of fluctuation and everything will fall in line. But yes, there are some extreme things and some turbulences in the, in the whole area which slightly I cannot say but disturbed a bit and where you postpone your total sales from quarter one to quarter two, quarter two to quarter three and quarter three to quarter four, something like that.
So these factors are, let’s say for example this time it has happened with the extreme rain, with the heavy rains and flooding. Obviously there was a subdued demand on the peer side which probably I think you can easily assess the information which is in public domain by the top beverages company of the world. So they have also published the same thing with that part. So that is one part. Secondly though, we have grown very, very in a big way in our normal. What do you call specialty glass. We have grown in a big way. But yes, the tariffs which has been imposed in USA they have the rippling effect somewhere to, to the industry.
Okay then probably there are other factors. Rupee depreciation is a factor and then there is a growth is a factor. So there are various, various various sectors and all. And what I can congratulate, I think I to my team members in spite of all those things, the, the growth, the trajectory has been well maintained and we have been able to deliver quite good reasonable results with all those factors in there. And see we are to be more concerned on some of the factors which can be a permanent factor. So temporary factors are not to be much of the concern.
But I think we have to live with that and we have to see how we can reasonably lower down the impact of these type of factors. So Q3 was the factor which was more on the rain side which nobody can do it. It’s a factor which has been God factor. So probably I think we have to live with that. We have to see that what maximum can be taken out and we have taken out everything. So there is a very, very shade below our targeted numbers were there which is less than 2%. So it hardly matters with that.
But yes, Q4 targets will be taken care of properly.
Shreya Chatterjee
And so what about the EBITDA margin or the trend in EBITDA margin or EBITDA per turn. If you could give some guidance with next year also facilities coming in March 27th.
Rajesh Khosla
Okay. Mr. Sikha, you will reply or shall I do that?
Sandeep Sikka
Yeah, please go ahead. Yeah. If you see, you know we have been, you know giving guidance EBITDA per ton ranging 9,500 to 10,500 and these are excluding, you know, other non operating incomes. So if we are, we are in this range actually you know, 1,000 rupee range is there between 9,500 to 10,500. It’s a mix of you know, various factors on this, on the specialty glass we are doing fairly well now where in EBITDA patterns especially, especially in the last two quarters have done fairly well and they are in a good digit number. But on the commercial glass I think we will maintain a consistent approach of 9,500 to 10,500.
Rajesh Khosla
Mr. Sikhar. The thing is ma’, am, the EBITDA numbers, because we are dealing with the input side, we are dealing with lot of commodities like it’s an oil, natural gas, soda ash and all. And these sometimes they are very temporarily, they spike up and they come down temporarily, which nobody else can do. Let’s say for example in the case of war in that side. So the oil gets spiked up for some time, there is a less of a availability. Even the natural gas spiked up for some quarter or so. So which is not temporary, which cannot be even adjusted in the price also because things are very temporary.
So those things can have the impact on the numbers. But overall when we see on, on a long term, it looks like that everything is reasonably well balanced and we hope to continue with our numbers, whatever has been committed to our investors.
Shreya Chatterjee
If I may ask, what is the, what would be the steady state EBITDA per turn for specialty class and what is it currently?
Rajesh Khosla
No, ma’, am, we do not disclose the numbers of EBITDA per ton. We do not disclose. So it is just the percentage EBITDA which is there and it is in line with whatever we have been achieving. I can say it is close to around 25%, 26% number in this specialty class.
Shreya Chatterjee
Okay. And so we what is the range that we see post this March 27, sanctioning for the EBITDA margin.
Rajesh Khosla
March 27. So we, we hope to maintain the same because next year, I think next year the growth will be okay and our new facilities are coming. So there will be much larger growth we expect once the facilities are when the facilities will start up because 25% of the capacity will be added up at that time. On the percentage side, we will maintain in the same band whatever we have been doing in last year. So in the same band we’ll be able to maintain our EBITDA percentages. But yes, there will be a small debottlenecking will be there and a growth is expected on the same.
But the bigger growth is expected once our new facilities will be on target.
Shreya Chatterjee
Thank you sir. Thank you for taking my question.
operator
Thank you. A reminder to all the participants that you may please press Star and one to ask questions at this time. The next question is from the line of Tarshal Zaveri from Crown Capital. Please go ahead.
Darshil Jhaveri
Hello. Good evening team. Thank you so much for taking my question. Hopefully I’m audible. Hello.
Rajesh Khosla
Yes.
operator
Yes sir.
Darshil Jhaveri
Yeah, yeah, hi. So just wanted to, you know, get a bit color in terms of FY27. So from what I can understand that all our major capex is coming towards the end of FY27. So FY27 as a whole would be, you know, how would you quantify in terms of our revenue growth? Because I think we have some small debottlenecking happening and we’re already running at 95, you know. So in terms of revenue, how what can be be at, you know, in FY27, sir?
Rajesh Khosla
Mr. Sikha.
Sandeep Sikka
Yeah, yeah. So I think when you see, although we’ve given guidance for FY25 26 at around 8 to 10% growth, Mr. Khosla spoke about it, that in terms of volumes we have been consistent which is there next year, we feel that we should be able to further grow on the volume side by around 3 to 4% on the container glass and another, you know, around 7 to 10% on the specialty glass. Given the fact that now when you see the trends of Q3, Q4, a lot of our capacities on specialty glass are also now getting picked up.
So overall for FY27, I’ll say maintaining a growth chart of around 8, 8%, 9%. And this is purely on volume base right now the commodities may change, the commodity prices may change drastically given the lot of global factors which can impact the businesses. So right now we can give guidances more on, you know, how the volumetric growth can happen on the glass business side. Given the fact that it constitutes around 89, 90% of our business but major chunk of growth. As Rajesh was talking, our project, which is greenfield project In Madhya Pradesh, 500 ton is right on the right path, right speed.
We are very hopeful that FY2728 we should be able to load the furnaces very fast. So from the market perspective, I think the visualization has to be seen from 2728 more that we will be adding somewhere around 25% capacity. And we feel that around 15 to 17% growth happening in FY 2728, which is purely coming from the incremental capacity from the new plant.
Darshil Jhaveri
Okay, okay, fair enough. So that that helps a lot, sir. And so just wanted to know like two questions. So one is like when we, you know, when glass prices are declining but are, you know, EBITDA per ton would be, you know, fixed. Right. So that way optically our margin should look better. Right? Because our, you know, top line is kind of getting a hidden value but are our volumes are increasing. Right. So our EBITDA margins can take, you know, you know, can be A bit higher than what they are right now. Is that like a fair way to look at it?
Sandeep Sikka
So if you see in the past we have been maintaining a consistent margin as Rajesh also spoke of on the last question. You know, at least for next 12 to 18 months, we will keep the guidance our ebitda margins ranging 24 to 25% of the on the overall mix basis, you know, mathematically, you know, I understand it may look difficult but you know, you have a container glass, you have different segments of the container glass, you have a specialty glass and you have other business like absent purchase and other stuff. So on the overall product portfolio wise, I think 12 to 18 months, our internal assessment based on the current market conditions, 24 to 25%, I think consistent EBITDA we should be able to maintain.
Darshil Jhaveri
Okay, okay, fair enough, sir. And this is one question. You know, we were just, I was just reading some reports where it’s saying that, you know, Gen Z and Millennial are drinking a bit less. So what do you see from an industry point of view that maybe not right now, just maybe on a longer term, is there a chance of that? You know, there be kind of, kind of softness in demand of alcohol itself. Right. Will that and how will that impact us? And you know, and I know we’ve already gotten into specialty to diversify, but just wanted your, you know, thoughts.
Rajesh Khosla
Yes, I’ll answer you with this. The new generation is drinking quite a less alcohol. The overall demand contraction globally has happened around 1% on the alcohol side. But on the other side we are talking of only one part of the business where less of the alcohol is consumed but more of the non alcohol part is being consumed. Say for example, there is a lot of demand which has grown in the non alcoholic beer side. There is lot of demand which has grown in the beverages side. So but these things are impacting more in Europe and more in USA because the already they have a saturation on the consumption side.
But in India the saturation is quite, the demand is quite low. Say for example in the case of beer, in case of India the beer consumption is just 2 liter per capita per per year. But wherever in European country, in some of the European country the demand is as high as 200 liters per capita per capita per year. And if you take the moderate one in other countries it is anywhere between 75 liters per capita per year to 100 liters per capita per year. And we are around 2 liters. So if we see there is a lot of demand which is very, very low In India.
So I don’t think so. It looks very, very clear. This type of impact on the generation which is consuming less of the alcohol will come up, not today. It’s a matter of say next 20, 25 years when we will saturate at that demand and the real impact of the less drinking will come on us. So on the one side the demand is increasing because of the population GDP increase and the money which is coming to the hands of the people because of that. And on the other side the there is a less of the consumption.
So these two things, they countervail and there is a total impact. Okay, total impact may not be, let’s say 100, but total impact may be around 90. So. But there is an impact of, positive impact of 90. So this is more of the problem in the western countries.
Darshil Jhaveri
Okay, okay, fair enough, fair enough. And so just wanted to ask like in terms of the retail diversification, so from what I understand that we will like, we will kind of like the, our, you know, customers are already buying the product where our packaging is being used. So we will, you know, now will we fill our goods or how will we, you know, just how would the logistics look like? Can you just give an example if that would just, you know, be really helpful. Like in terms of perfume is there or anything else? Just.
Rajesh Khosla
Okay, we are, we are trying to tap all the opportunities which exist in the market though our core business is a glass business. But to sell the glass, to promote the glass and to make the glass available to the right people, even if we have to do little bit of extra work or value addition, we are ready to do that so that our end product should reach to the consumer and the customer. Now what is happening whenever there are OEMs, there are big brands, are there, they are not doing like that. They’re buying glass bottles and they’re getting it filled.
So they give the contract to the contract manufacturer and then the whole game is with the contract manufacturer so that they can buy and they can collect the bottles and liquid and caps and other things from different sources combined together and sell it to the brand owner. So what we are trying to do, to have a more command on our product, we are going to the OEM and telling him we want to sell our glass bottle. In case you don’t want to buy a glass bottle alone, we are ready to give you the full end to end service so that our glass bottle should be able to reach to the contract to the brand owner.
So to do all that thing. So we have a tie up with the service providers. So service provider will integrate with us. They will provide whatever is required by the brand owner and we will get it outsourced these activity and then we can ship it directly to the brand owner. So that in between our dependency on contract manufacturer of brand owner should not be there. We should be able to command our own products to the end customer.
Darshil Jhaveri
Okay. Okay. So if I could just, you know, understand that we’ll basically be like the chef where you know, everything we are sourcing and just then, you know, making the decision, sending across. Right. So in this type of business, what would, you know, our margins and outlook look like? Like any kind of investments that, you know, we’ll have to make. I’m not saying in terms of manufacturing, maybe you know, marketing or you know, hiring people, because I’m. This is complete is, this is more newer set of business. Right. So what do we, how. What’s the roadmap for it?
Rajesh Khosla
We are not hiring because we are already in that business. We are already in touch with the customer. So this is the additional facility we are going to do? Yes. On the backhand side to get it done properly, we may require some few hands to take care to integrate and to line up and coordinate with those outsourced activities. So those are the small things which are required by them. And secondly, we are not building the brand so there is no such marketing expense as such for them. And regarding the margin side, again I am saying our main focus is to sell our core products of the glass.
This activity which we are doing additional activity is basically to support our glass which is going to them. So the margins we can, we may be able to get some good margins or it can be just a service so that we are able to sell our glass properly. But on a long term basis our glass availability and a placement of glass to the direct OEM is certainly going to help us not only for a high end glass but also to have a stability and reliability of the end customer. Because end customer is more stable than the contract manufacturer.
Because contract manufacturer is as a more bargaining power. So in that case, in future we may lose it on account of our margins or something. But in case of direct customer, we may be able to gain something more better and more value added products can be given to them. So you are cutting the channel in between and going directly to the customer. So obviously all the advantages of going directly to the customer will be added to us or will be come to us.
Darshil Jhaveri
Okay. Okay, fair enough. Yeah, that’s it. From my side. Thank you so much. All the best.
operator
Thank you. The next question is on the line of Anil Shah from Insightful Investments. Please go ahead.
Anil Shah
Yeah, hello, thanks again for the opportunity. So a couple of questions so far. You know for both these projects in.
Sandeep Sikka
Your call you talked about specialty glass volume growth that was somewhere around 7%.
Anil Shah
Specialty was 7%
Sandeep Sikka
and, and the value growth on specialty was another 8%. So you know.
Anil Shah
We are running at 78%.
Sandeep Sikka
Yeah, yeah. But major chunk of growth when you see Q3 versus Q3 that is somewhere around 13%. So basically last 2, 3/4 the efficiency at the specialty class has been very high. So the volumes have.
Anil Shah
Okay, okay. So just a couple of questions for the both the new greenfield projects, you know how much would, you know how much would we have so far dispersed in terms of land, in terms of some advances to you know, for advances for some machineries so licenses, so on and so forth.
Sandeep Sikka
Yeah. Mr. Pandey, can you take this?
Om Prakash Pandey
So you, you’re talking about the capex.
Anil Shah
Yeah, correct. But yeah, for both, for the time. For the aluminum cans.
Om Prakash Pandey
Yes, I’m coming to both. So on the Galia side, land acquisition already done. Correct. Lcs for equipment supplies have been established and we feel the equipment should start coming in Q2 and Q3 into the civil construction is going on and we feel by 31st March 27th the production should be up running. There can be one quarter here and there in terms of, you know, stabilizing the quality and other stuff as is very usual with the greenfield site. Sure. The CAN project land has been identified. Government is in a process of releasing that land as per our information. The negotiation with the equipment supplier is already completed and once we have a formal confirmation of a land the immediately will start and then there also the lead time for the equipment period is somewhere around 11 months to 12 months. So all the work on the ground has been completed as such I think the major chunk of spend will come next year. And we feel that somewhere around 1100 crore to 1200 crore spend should happen next year and remaining in FY28 which will be more on the Cannes side.
Anil Shah
And so far would we have spent about a couple of hundred crores yet or no?
Om Prakash Pandey
Yes, we would have essentially spent somewhere around 60, 70 crores on the overall land acquisition. Doing some ground studies and other stuff.
Anil Shah
And the debt that we are now talking about, the net debt at 389crores is after whatever cash outflows happen for this land.
Om Prakash Pandey
Yes. Has not been that great for Q3 as Rajesh has already spoken also we built up some inventories so working capital has slightly bloated, that’s a temporary effect. So once those inventories get diluted, working capital will come down. The long term debt which is there is somewhere around 220 crores and of which somewhere around 30, 40 crores is relating to the newer capex. Rest is the old which we are just trying to prepare.
Anil Shah
Okay, and so what’s the status of the appeal that we had, you know, with the Delhi High Court especially for you know, the acquisition which has been done for.
Om Prakash Pandey
HM right now going on at this juncture as I, as we talk to you.
Anil Shah
Okay, so it’s, it’s still hearing stages. We have not done in. There’s no concept, there’s no, I mean, when do you see some decision basically?
Om Prakash Pandey
I mean, I know very difficult to comment on this.
Anil Shah
Right. And you know, have we seen any, you know, new, I mean any incremental supply coming in from the new owners now that you know, operationally the plants and that company, the entire capacities are moved to the new people.
Om Prakash Pandey
Very difficult to comment on the competition as such right now. But I think those capacities were already operating for last so many years.
Anil Shah
Correct.
Om Prakash Pandey
And it’s all a part of the entire market game which is there but difficult for us to comment on anything relating to the competition.
Anil Shah
So basically, you know, the confidence of at least 8 to 10% volume growth and maintaining 24 to 25% margins that’s there for the next 12, 18 months. Of course value growth subject to raw material movement and hence I’m not talking. About that But I’m saying 8 to. 10% volume growth because we’ve just done some, you know, we’ve just done some minor expansion both at the specialty and at the container side. So that should help us in 27 as well. So 8 to 10% volume growth and steady margins between 24, 25% is very much on the cards.
Om Prakash Pandey
Yes, yes.
Anil Shah
And so with the kind of, you know, the kind of spend that you talked about, 1100-1200 crores next year itself. I mean obviously you, you’ve taken approval for a QIP or a fundraise, let’s. Put it that way. Any thoughts? You know, are we happy to fund this if, if, if markets remain where they are and you’re not happy with the price, are we happy to fund this with entire debt for a short period of, for a period of time?
Om Prakash Pandey
I think the whole, the logic of doing the QIP resolution is that we should have an alabinic resolution in place and the approvals of the shareholder. So whenever we feel the time, the price and market is, markets are ready, we can do. But in the interim we are in process of tying up the entire debt which is required to complete these projects. So we already have a stable EBITDA run rate which is there. And given the fact that existing debt will get almost paid off by the time all this new debt gets commissioned as a part of the P and L right now, the capitalization.
Correct. So we feel that maybe if we don’t raise equity there will be some little bit of a leverage. But at the right time and more, I internally feel that more nearing the completion of the projects, market should be able to see the value which we are trying to generate and we should be able to complete the transaction.
Anil Shah
But hypothetically we are okay with debt because you know, assuming we can continue. To show 600 crores, debt will be. 11, 1200 crores will be EBITDA to debt of 2x which is not.
Om Prakash Pandey
Yes. Which is nothing less when you are trying to create a capacity. And that’s not a bad leverage from our side.
Anil Shah
Yes. I’m saying even if closer to commercialization, if markets continue to remain subdued, we can continue with this kind of debt even up to even the continuation of FY28 and see how the new capacity ramp up. Of course EBITDA will move up further, cash flows will move up further. Correct?
Om Prakash Pandey
Yes, yes. So let’s say hypothetical model, let’s say we build even a debt of let’s say 1200 to 1400 crores. For this, all the incremental capacities will lead to incremental EBITDA and incremental free cash flows from operation. So ultimately all that money, if you, even if you see in the past last four years we have paid off the debt with internal accruals. All the capex which has been done for revamping our existing furnaces and also debottlenecking our facilities, everything happened from the internal accruals. So the quantum of free cash flows are available with us and that will also bring down the debt in time.
But we are also open to raise equity and maybe if that can accelerate the growth on our businesses.
Anil Shah
I get this. It’s just that I think there could be a one off year where capacities take time to ramp up. And you know, as soon as we.
Om Prakash Pandey
Start commercial production, you know, like the critical path of the game is creating a quality capacity which is able to generate a cost optimum, you know, value in a, in a. In the right quality.
Anil Shah
Absolutely.
Om Prakash Pandey
If you have created them Then you have won the long term war.
Anil Shah
You know see from a shareholder perspective. Sir, all we can say is rather. Than diluting things at these kind of valuations it’s okay to carry that risk if confident. You know, I mean that’s. That’s the way we look at things. Right.
Om Prakash Pandey
So I think the promoters interest because they will.
Om Prakash Pandey
Sure. Right sir, I understand. Thank you. Thank you for answering these questions.
operator
Thank you. The next question is from the line of Sandeep Mukherjee from SKP Securities Ltd. Please go ahead.
Sandeep Mukherjee
Thanks for taking my question sir, what is the. What was the capex spend for the nine month period?
Sandeep Sikka
Sir. So we have spent around 150 crores in nine months and major chunk of spend has been on the glass business wherein you know we are expanding our lines. We are further trying to optimize our operation cost some facilities and almost 80, 75, 80% of the spend is towards the, you know, further nurturing of the glass business.
Sandeep Mukherjee
Okay sir, and what’s our target for this year?
Sandeep Sikka
That means this year overall I think given the fact that 150 plus I think in Q4 now given fact another 20, 30 crores because still that debottlenecking of specialty glass line is happening. So we should spend another 25 crores.
Sandeep Mukherjee
Okay. Okay sir. And sir my next question is what. Is your assessment on the RM inputs cost like RM inputs prices like soda ash and fuel oil prices if you can.
Rajesh Khosla
Okay, what is your. So you are talking of the raw material prices, input prices. So there are so many inputs are there say for example like you are talking about the soda ash if you are following the soda ash part. So there was a minimum import price MIP and there was a anti dumping duty. What do you call investigation which has been done by by the government to put up anti dumping duty but they have lost the anti dumping duty and there is no anti dumping duty.
So there was a little bit of spike in the bright side in soda ash but then after they lost the anti dumping duty it has been stabilized. But now the soda ash prices looks to be stable because in the overall global market demand side I think the total demand and supply is almost stable. It’s close to 60 million tonnes globally. So I don’t think so there can be any spike in prices of soda ash as on today. Yes, the factors which are global factors which are global politics factor that I’m not considering that the war between a country and B country what impact can have too difficult to assess the same.
But overall from a business side it looks like that the Soda ish part is stable. Coming back to the oil see oil is again directly proportional to the crude oil prices and the crude oil prices. If we see the scenario on the US side where they are drilling as much oil as possible. So it looks like that the US will always try to stabilize the oil prices globally. And on the other side the war or there is destabilization in Venezuela or Iran or somewhere, these things can push the price a little bit more. So too difficult to assess that because it is beyond our capacity to assess.
But yes, all these factors looks like that on one side there can be a spike, on the other side it can be low also. So it looks like that with all the war situation, global situation, these things will be remaining in the band itself. If they are in the band, obviously the prices in India on the furnace oil side, on the gas side will also remain in the proper band only. So I don’t see there is no reason we can see that there can be anything which can derail the price part of the input side.
I don’t think so.
Sandeep Mukherjee
And in the quarter gone by, sir, the soda ash prices really has given a short spike. So did it impact our EBITDA margin or RM cost?
Rajesh Khosla
Again since we have a system where quite a big number of our sale, we have pegged it against our formula based pricing on the input side. But if the input prices changes on permanent basis or on semi permanent basis then only it comes in the picture of calculation. But if they are small spikes or they can be low also and they are temporary. That’s what I’m saying because of some rain problem or this problem or shutdown problem or anything problem, if there is increase or decrease of the prices they can give you headwind or tailwind temporary which cannot be coming in the in your formula base or pricing system.
So those headwinds and tailwinds can give a boost in your margins at some time or they can even subdued your margin for temporary on that quarter on that period time.
Sandeep Mukherjee
Understood sir. Thank you very much.
operator
Thank you. Ladies and gentlemen, we’ll take the last question for today which is from the line of Praveen Sharma and individual investor. Please go ahead.
Praveen Sharma
Hello. Yes. Hello sir. Am I audible?
operator
Yes sir.
Praveen Sharma
Yeah sir means I will, you know carrying out from the last participant being a long term investors and we find a lot of value in the company. My only question is that you know there was a recent news clip on CNBC somewhere in the end of November that there is a QIP of 500 crores with a green shoe option of. 800 crores up to 800 crores. So given after that the price has fallen sharply. Now 25, 30% fall has been there. In our company share price. Given this scenario, will we come up with a QIP and dilute the equity from here on? Because 800 crores is like 20% of the market cap. I would like you to allay our fears. Being a long term investor and you know we have been there with the company for a very long time and similarly there will be many more investors.
Sandeep Sikka
So first I think we never gave any news that we are about to close such a transaction. So company has shareholder approval to do a QIP transaction. And I think to a question of Mr. Anil Shah which was taken, I think few questions back. So since we are doing two major spend, we may raise equity at a particular time depending on how are how our projects have matured. Point number one. Secondly, how our free cash flows are panning out during that period. What is the market price? I understand and I appreciate the dilution concern for the public shareholder.
But it’s a similar concern with the largest shareholder who is a promoter. So you know, so be rest assured, you know we are not here to destroy anybody value but other way around. We are here to create value for all our stakeholders for a very long run. We are very thankful for your long term investments which you have supported us. So be rest assured of that. But I think raising equity may be required but depending on the timing, pricing, number of factors.
Praveen Sharma
Great sir, great. And are we open to look at right issue? Because that will give opportunity to everyone but the quantum and the timing it takes.
Sandeep Sikka
So right now, as I said, you know, at an appropriate time we’ll, we’ll talk and I think we’ll get back, we’ll take feedback from our shareholders as required, if any. So we’ll take those appropriate actions at the right time.
Praveen Sharma
Thank you. That was very comforting. Thank you.
Sandeep Sikka
Thank you.
operator
Thank you ladies and gentlemen, that was the last question for today. Please get in touch with SKP securities for any unanswered or follow up questions. I would now like to hand the conference over to Mr. Sandeep Sikka for closing comments. Thank you. And over to you sir.
Sandeep Sikka
So first of all, thanks everybody who joined the call today. I hope due to paucity of time, we may have missed one or two questions. It’s always ready to, you know, answer those questions. Just please, please write to our investor relation agency or write to us. We’ll be very happy to get back to you. But I feel most of the questions have been answered. They have been rightfully asked. So thanks again for joining us on the call.
operator
Thank you, Members of the management. Thank you, sir. On behalf of SKP Securities. On behalf of SKP Securities Ltd. That concludes this conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines. Thank you.