Alicon Castalloy Limited (NSE: ALICON) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Vimal Gupta — Group Chief Financial Officer
Manish Kapoor — Group Chief Operating Officer
Analysts:
Mayank Vaswani — Analyst
Jyoti Singh — Analyst
Yash Dalal — Analyst
Devang R. Shah — Analyst
Presentation:
operator
Sa. Sa. Sam. Sa. Sa. It. Sam. Ladies and gentlemen, good day and welcome to Alicon Castellar Limited Q3 and 9M 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 Stars and zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mayank Vaswani from CDR India. Thank you. And over to you Mr. Osman.
Mayank Vaswani — Analyst
Thank you Ranju. Good morning everyone and thank you for joining us on ALICON Castell Oil Limited’s Q3 and 9 months FY26 earnings conference call. We have with us on the call today Mr. Vimal Gupta Group CFO and Mr. Manish Kapoor Group COO. Mr. Vimal Gupta will present an overview of the operating and financial performance for the quarter. Mr. Manish Kapoor will then take us through developments in global markets, insights on domestic business trends and updates on key strategic initiatives. Before we begin, I would like to point out that some of the statements made in today’s call may be forward looking in nature and a disclaimer to this effect has been included in the earnings documents that have been shared with all of you earlier.
I would now like to hand the floor over to Mr. Vimal Gupta, our group CFO. Over to you sir.
Vimal Gupta — Group Chief Financial Officer
Thank you ma’. Am. Good morning everyone and welcome to Alicon Castelloi quarter three and nine months for financial year 26 earning conference call. Thank you for joining us today. The domestic automotive market witnessed encouraging developments during the quarter. The GST rate rationalization announced in September provided a meaningful uplift to customers success sentiment resulting in improved activity across the automotive ecosystem in quarter three. As you would have noted from publicly available in this industry data, domestic vehicle sales recorded strong double digit growth during the quarter. The momentum has started into increased customer inquiries from production schedules and improved order visibility across segments.
Increasingly several domestic OEMs customers have indicated that demand remains robust robos with the key constraint constant to further ramp up now stemming from supply side challenges. Challenges most notably constrained semiconductor availability and ongoing difficulties related to imports of rare earth magnets rather than end market demand. On the global front, volatility and uncertainty arising from tariff related actions weighed on sentiments and volumes from international customers. In addition, the December quarter is typically seasonally softer for global markets as production schedules tend to taper towards the calendar year end. As a result, the quarter remained muted for our global operations that said for financial year 26 has also seen some positive and constructive developments.
On the external front, the signing of the India EU Trade Agreement in January followed by the announcement of framework for an India US Trade Agreement in early February brings light at the end of the tunnel and we can anticipate increased momentum now that the overhang is lifted. In Europe, we see a more constructive medium term outlook emerging. The evolving Free Trade Agreement framework, together with Alicon Castella’s established footprint and long standing customer relationship in the EU region positions us well to benefit from any incremental sourcing reignment over time. In parallel, global OEMs are increasingly evaluating India as a competitive and reliable manufacturing and export hub.
This structural shift is supportive for Indian component suppliers with strong engineering capabilities, quality, execution and scale attributes that are central to eloquence operational model with respect to the United States, we continue to closely track ongoing developments. Depending on the pace of progress from discussions to a more formalized framework, we believe there could be constructive movement over the coming quarters. While the impact in quarter four is expected to remain limited, we anticipate a more meaningful normalization as we move into financial year 27. China is also showing early sign of improvement. Recent indications of increased engagement between India and China have led to cautious optimism and restrictions on the supply of rare earth materials and semiconductors to India may ease over time.
Even as we monitor these developments, we are proactively working with our customers to accelerate localization initiatives and increase value added manufacturing. These efforts are closely aligned with our long term strategy of enhancing self reliance, improving supply chain resilience and expanding our value added content. Turning to our financial performance, we are pleased to report a stable performance of Quarter 3 FY26 despite significant industry headwinds and the fact that the December quarter is typically seasonally softer for global operations. The resilience demonstrated during the quarter reflects steady operational execution across our manufacturing footprint supported by our diversified exposure across end user segments and popular region technologies.
This diversification has enabled Elico Castellar to consistently deliver scale with revenue exceeding 400 crore in nine of the last 10 quarters. For quarter three FY26, Elicon cast alloy reported revenue of 430 crore representing year on year growth of 10% compared to 393 crore in quarter three above 25. It is important to note that the base quarter includes certain one time projects that were not part of the current year’s operating plan. During the quarter a UK based OEM customer experienced a cybersecurity incident that disrupted production for nearly five weeks during which we were requested to temporarily for supplies.
In addition, our U.S. commercial vehicle customer continued to face demand headwinds with some customers indicating volume decline of approximately 25 to 26% in specific product categories. Our European operations were also impacted by few customer specific issues including supply disruption linked to a tier one supplier serving the same UK customer affected by the cyber incident as well as challenges at certain OEM customers in the region. These factors weighed on volumes during the quarter. Adjusting for these specific and largely non recurring challenges, the underlying top line performance would have been stronger and comfortably in the double digit growth range reflecting the resilience and core business and improving momentum in other markets.
On a sequential basis, revenue in quarter three FY26 were marginally higher than 429 crore reported in quarter two of FY26 making the fourth consecutive quarter of sequential growth. This reflects a steady recovery following the disruption experienced in our global business during the October December period last year. On the margin front, gross margin improved by 138 basis points year on year to 47.2% driven by favorable product mix and operating leverage On a quarter on quarter basis, gross margin moderated by 170 basis points from 48.9% to in quarter 2 FY26 reflecting changes in product mix and volatility in certain input costs during the quarter.
Our newer plant and recent automation investments are currently in the scaling phase and as volumes ramp up further we expect improved fixed cost absorption to support margins over the medium term. In Q3FY26, EBITDA increased by 34% year on year to 47.2 crore driven by operating leverage and improved product mix and a lower base in the corresponding quarter last year which had been impacted by certain one off items on a sequential basis EBITDA stood at 47 crore in quarter three ABY 26 compared to 55 crore in quarter two ABY 26. The sequential moderation in EBITDA was largely attributable to higher employee costs due to the selective hiring undertaken by to support future growth initiatives.
In addition, the quarter includes certain transition related costs associated with the ongoing management succession at Alicon Castelloi along with write offs leading to few non material assets. Consequently, ebitda margin in quarter three above 26 to that 10.9% compared to 12.9% in quarter two FY26 on year on year basis PBT before exceptional items was 11 crore a tenfold increase from 1.1 crore in quarter three of last year which was an unusually low base due to one offs. Our continued investments in few machineries, tooling and automation in line with our technology and capacity expansion roadmap have led to increase in depreciation by 17% year on year and 3% quarter on quarter.
Finance cost declined sequentially benefiting from improved working capital discipline and balance sheet management. As a result, profit before tax Pre exceptional declined by 44% to 11 crore in quarter 3 FY26 compared to 19 crores in quarter 2 FY26. During the quarter we recognized an exceptional item of 5 crores relating to implementation of the new Labor Code. After accounting of this impact, profit after tax for quarter three FY26 to debt 3.3 crore representing a year on year increase of 322 compared to 0.8 crore in quarter three of FY25. On a sequential basis, profit after tax declined by 76% from 14 crore in quarter two FY26 to 3.3 crore in quarter three of FY26.
This movement primarily reflects the combined impact of the exceptional charge recognized during the quarter higher employee related cost the normalization of margin related cost relative to the previous quarter. For the nine months ended FY26 total income stood at 1278 crore with EBITDA of 153 crore translating into an EBITDA margin of 11.9%. Profit after tax for the period stood at 11 crores reflecting the resilience of the business amid heightened external volatility. Capital expenditure during quarter three ABY 26amounting to 28 crore taking cumulative capex for the nine months period to 92 crore, we remain on track to achieve full year capex in the range of 125 to 130 crore with investment focused on automation, capacity enhancement and readiness for upcoming programs.
In parallel, we continue to invest in R D, digital process control and productivity initiatives to strengthen long term competitiveness and enhance margin resilience. Coming to Order Wins and Business Outlook Our strategic focus continues to be on the adding higher value products particularly across the passenger vehicles, the commercial vehicles CV segments. During the period, Elegant clusterless secured orders for four new parts from four different customers. Of these three parts pertain to the internal combustion engine IC business while one part has been secured under the carbon neutral vertical. One of the order wins relates to our global business with the remaining three catering to the domestic customers.
From an end market perspective, three of the four parts are for the CV segment while one part cutters to the PV segment. These wins are aligned with our focus on more complex high value added components and reinforce our strategic emphasis on deepening our presence in PV and CV segments while maintaining balanced mix across domestic and global customers. During the quarter, Alicon Castella secured new business from two of India’s most prominent homegrown OEMs for critical components on their commercial vehicle platform. Development activities for these programs are already underway. We with series production scheduled to commence in FY27, we believe that consistent and reliable execution on these CV programs will further strengthen our strategic relationship with these customers and could create opportunities to expand supplies into their passenger vehicle portfolio as well where both OEMs are enjoying strong market positions.
Further during the quarter we secured an additional order for a commercial vehicle application with supplies to be made to a prominent Tier one supplier that is part of one one of India’s largest and most diversified industrial groups. This win further reinforce our growing relevance within the domestic CV ecosystem. On the global front, Alicon Castella won a higher value add higher value parts from a premium German automobile oem. The program entails the supply of an EXL housing for one of the OEM’s latest platforms with the deliveries planned to be to its European manufacturing facility. This is technologically advanced and value accretive program and association with a premium global customer is expected to have positive spillover benefits in terms of credibility, capability, recognition and further business opportunities.
In addition of these new wins, our existing passenger vehicle programs continues to progress well. We currently supply cylinder heads to two of the largest Japanese OEMs in India. One of these customers has recently ramped up production of a cylinder head of its 1.5 litre engine platform. With market preferences having clearly shifted towards SUVs and this engine finding application in larger passenger vehicles, we have seen a strong increase in volume for this program. Another leading Japanese OEMs in India with successful hybrid vehicle portfolio continues to perform well. We enjoy 100% share of business for the cylinder heads used in its hybrid vehicles which has translated into robust growth.
In addition, the OEMs has been witnessing healthy growth in exports providing further headroom for volume expansion over time. As a result of these developments, the PV business recorded healthy growth of 12% year on year and CV business has delivered growth of 13% year on year in quarter three, contributing meaningfully to overall growth. Before I close, I would like to share a brief update on our ESG journey. Elikon Kasala has been awarded a committed certification by EcoVadis. This reading places eloquent among the top 35 companies globally assessed by Ecovadis and reflects our solid commitment to corporate social responsibilities across key pillars including environmental stewardship, labor and human rights ethics and sustainable procurement.
This recognition underscores the progress we have made in embedded sustainability into our operations while also providing a clear roadmap for further strengthening our ESG practices over time. Overall, while exports market for auto ancillary products remains temporarily subdued, domestic automotive industries exhibiting clear sign of strength OEMS exports from India continues to gain success. Such. As traction and Europe offers incremental opportunities under the evolving trade framework supported by the healthy order book of approximately 9100 crore strong customer relationship and disciplined execution. Elegant Castella remains confident in sustaining its growth trajectory and delivering long term value creation. With that, I will now hand over the call to Mr. Manish Kapoor for the operation Highlights
Manish Kapoor — Group Chief Operating Officer
Good morning everyone. Let me begin with a brief overview of the industry environment. During the quarter in Q3 FY26, the global automotive industry witnessed moderate DE growth of around 1% on a year on year basis. Within this, the market in North America was lower by 2% year on year and UK was lower by 19% year on year. It would be important to note that our two largest markets for exports are North America and UK and both have witnessed the degrowth in quarter three. The sum of the key segments that ELICON addresses in the global markets have actually degrown this quarter.
In contrast to this, the Indian auto industry delivered a stronger performance as per ACMA. Domestic production volumes excluding tractors grew by approximately 16.4% on a year on year basis supported by improved affordability and policy led measures that stimulated demand across segments. The domestic two wheeler segment registering growth of approximately 15% year on year. The implementation of GST 2.0 improved affordability and boosted household disposable income while a strong festive season and multiple repo rate cut supported financing conditions. Although both rural and urban markets participated in the recovery, the momentum has been letting largely by urban demand reflected in stronger scooter growth related to motorcycles.
The commercial vehicle segment grew by about 17.5% year on year supported by improving freight activity, GST reforms and broader macro measures that have strengthened overall consumption levels resulting in higher intra city logistics requirements and fleet replacement demand. The earmarking of funds in the Union budget for the PM’s E drive and E bus deployment programs bodes well for this segment. In the passenger vehicle segment, volumes increased by approximately 19% year on year basis, improved affordability following GST rationalization, direct tax relief measures, successive reported cuts by the RBI and renewed consumer confidence collectively supported demand during the quarter.
Further, in the latest budget, the government significantly increased the allocation to the PLI scheme For auto sector signaling continued emphasis on scaling domestic automotive production. Overall, Q3FY26 represented a materially improving landscape for the domestic auto industry with broad based strength across segments. Against this backdrop, Alicon reported revenue growth of 10% on a year on year basis. However, our performance reflects certain company specific factors. The best quarter included some one time projects which were not part of the current year’s operating plan. We had a higher proportion of supplies to commercial vehicle focused OEMs in Europe and United States segments that are facing relatively greater stress in the current environment.
At the same time, volumes to our domestic two wheeler customers increased sharply during the quarter in line with broader market trends. As a result while our stand alone domestic business delivering strong double digit growth. This was partly offset by lower volumes in certain higher value added parts and seasonally softer trends in our European operation. Consequently, our overall growth trajectory does not fully mirror the strength seen in the domestic automotive market. This shift in the business mix has also had an impact on profitability. The shift in product mix during the quarter with a reduced contribution from the higher value CV components is reflected in the gross margin and the EBITDA margin too.
Revenues for Q3 stood at rupees 430 crore reflecting sequential growth of 0.4% over Q2 and marking the fourth consecutive quarter of revenue improvement. Alongside enhanced profitability, Alicon has delivered revenues above the rupees 400 crore run rate in nine of the last ten quarters demonstrating improved stability and execution. Despite external volatility, our domestic business benefited meaningfully from volume ramp up with key customers in the passenger vehicle and two wheeler segments. The contribution from the two wheeler segment increased further during Q3 FY26 supported by new programs, additions and higher share of business with existing OEMs. As a result, the two wheeler business grew by 13% on a year on year basis strengthening our position in this segment.
From an operational standpoint, the quarter was marked by continued efforts to stabilize and enhance throughput across our plants. Given uneven demand patterns in certain export geographies, we worked closely with our domestic customers to maintain healthy production levels while simultaneously improving overall equipment efficiency through tighter process discipline and better manpower planning. Our digital process controls are now active across the majority of the lines and we are already seeing tangible gains in cycle time, efficiency, scrap rate reduction and machine uptime. These improvements are beginning to translate into stronger operational leverage. We should support margins in the coming quarters.
We are progressing well on our automation roadmap with new robotic cells commissioned at our Pune facilities. These initiatives are enhancing process consistency, reducing manual intervention and improving Worker safety aligned with our long term vision of building a truly smart foundry organization. In parallel, we are increasing the use of Data analytics and IoT based monitoring to predict machine health and optimize energy consumption. To further elevate our casting capabilities, we have onboarded a team of German experts with deep technical experience. Their focus is on refining casting practices, improving the yields, enhancing throughput, optimizing capacity utilization and driving cost efficiencies.
The objective is to benchmark our operations to global standards and further strengthen our competitive positioning. Our sustainability initiatives also continue to deliver measurable results. With the successful induction of solar power generation across our facilities in India and Europe, nearly 50% to 55% of our total electricity requirements are now being met through solar energy, reinforcing both cost efficiency and environmental responsibility. Mr. Vimal Gupta already spoke about the commitment certification from EcoVadis. Overall, our focus remains on disciplined execution, continuous efficiency improvement and calibrated diversification. The combination of new program wins, technology led productivity gains and expanding participation across sectors positions as well to drive sustainable revenue growth and margin enhancement going forward.
With that we have covered the key business and operational highlights for Q3 and 9 month FY26. We will now open the floor for questions. My colleagues and I will be happy to address any queries you may have. Thank you.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question method star and one on touch tone 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 requesting qsm. The first question comes from the line of Jyoti Singh with Adihant Capital Markets limited. Please go ahead.
Jyoti Singh
Thank you for the opportunity. Sir, I have a few questions. So lastly I wanted to understand domestic revenue which is still 81% of mix. So how much incremental growth can be driven without increasing global exposure that we are having around 19% and another on the plant that are operational around 75% utilization. So what revenue potential exists at a 85 to 90% utilization without any major capex?
Vimal Gupta
Jyoti.
Jyoti Singh
Yes sir.
Vimal Gupta
In effects utilization you can cannot directly correlate with the revenues with the capacity utilization here. Because some machinery, some capacities are directly. Those are the common use. But even we are having the orders. But the existing capacities we cannot utilize. So we have to put additional capacity. As you know that Alicon is now going for the more complex part bigger parts. So for that we need the bigger machines and the high Tech machines are required. And for the maintenance of the quality also we need. So when we say that. Okay. Capacity utilization from 75 to 85% 10% increase.
So that cannot directly you cannot correlate with the 10% increase in the revenues. So we need further capacities, continuous capacities for the new products. But definitely with the existing. If we go with the our old systems, old existing facilities. So easily we can handle even250.200. This revenue can generate 200 crore from their existing facilities. But depends on the. Completely depends on the product.
Jyoti Singh
Okay. Understood sir. And sir, on the domestic revenue side.
Vimal Gupta
Those mainly the domestic revenue we are talking about.
Jyoti Singh
Yeah. That is 81% of mix. So how much incremental growth we are talking about going forward without global exposure.
Vimal Gupta
Without which exposure?
Jyoti Singh
Global exposure? Yes sir.
Vimal Gupta
Without that we are expecting in this quarter. You’re talking about the quarter four. So approximately we can say 10 to 12% further improvement in the quarter four.
Jyoti Singh
Okay sir, understood. And a lot of our peer and industry player they are diversified. They are doing diversification more on the non auto side which is still currently for us 4%. So are we seeing. Are we. Are we planning any more diversification or any strategic priority for the to reduce cyclicity in the other business.
Vimal Gupta
Like we already in discussion for this our project of dar. That is one. But you know that this defense side or railway side it needs more time. So this project is started. But it will take time to convert into the revenue on that side. But definitely we are also started looking for the new product profiles. Maybe some different additional processes we can to add. And maybe Manishapur would like to add more.
Manish Kapoor
Hi Jyoti. Basically this DAR vertical is right now in a very nascent stage. But yes, it carries a lot of potential in future. And it requires very tighter process control, traceability, higher certification standards compared to traditional automotive programs. Various RFQs right now floated. They are in the initial stage and somewhere to middle stage of discussions. And we have a clear dedicated now technical teams and leadership team. And we are strengthening our quality frameworks and upgrading our validation capabilities to meet these requirements.
Jyoti Singh
Okay, sure. Thank you so much sir.
operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Yash from Shushil Finance. Please go ahead.
Yash Dalal
Hi, good afternoon to the management. I have a few questions I’d like to ask. One is what will be the impact of this recent India US trade deal for Alicon going forward.
Vimal Gupta
This you’re talking about the India India US deal. So yes. You know that after having the new tariffs those were imposed. So in the couple of quarters we were seeing there almost steady. There was no inquiries, everything stopped. Maybe only the existing business we were doing so no new development. But after this at least movement have seen that now some inquiries have started. So let’s see that maybe in the coming quarter we will see a major movement. But definitely big opportunities are there in us for Alicon and definitely we will go for that.
Yash Dalal
And my next question is. So a subsidiary has shown loss in Q3. Is there any reason for this.
Vimal Gupta
In the loss in Q3? That if you see the numbers, one is that there is a decline in the sales. And on the other side the sales mix is also there because you know one big part we were supplying to one OEM that is tier one customer and that tier one is supplying to the this UK based oem. So due to the cyber attack all these were stopped and there were no supplies. The sale has a major impact. And where we were having the good margins another site one time some additional manpower cost. You if you review those that then peace in the manpower cost.
That is the one time cost we have to take. So that was the major reason there. And another side that even decrease in the sales. The manufacturing cost has not gone down due to the fixed cost there. Those two, three reasons are there. That is the that’s why our European entities in the loss in quarter three. But we are expecting at least some positive in quarter four.
Yash Dalal
Understood, thank you. My next question is. So the unexecuted order book for new parts is around 8000 crores by FY29. So that means the exit revenue for FY29 will be close to 3005 crores. Is that correct? Basically. Could you help us understand the annual revenue ramp up profile?
Vimal Gupta
Yes. I think you have a good calculation that based on this 9,000 order book. Definitely. As per our calculation also the exit will be around 3500 crores by 29. So that is because you know there are two two mix one is that the execution of the new order book as well as the end of the existing products. So both are happening. And year on year there is a execution of the new order book is happening. And maybe till quarter two, maybe in the last quarter we expand approximately 700 crores we have utilized. And this quarter also around 150 utilization has happened.
So overall around we can say 8 to 900 crores we have utilized out of this order book. And in this quarter also like I’ve explained in my speech that we have got the new orders from four. Four new parts we have added and one is a global oem. There is a very big global OEM that they have entered into the EV segment and given the order for first order for the exl. The big part that we are going to execute from the Europe so approximately till 29. Because the now the development will happen the supply will start from 27.
And though there will be addition in next till 29 will be around 300 to 350 crores from these new orders. So then approximately 8,005 and 8,500 crores will be the balance after utilization of our 850 or 900 crores that has happened till now quarter three so and year on year this acceleration this growth will happen for the utilization of the existing this new order book.
Yash Dalal
Got it? Understood. Understood. Thank you. My next question is in the presentations mentioned certain one off the write offs as well as management transaction cost. What is the impact of this? Exactly?
Vimal Gupta
Yes. Mainly just tell you there one is that because now in auditing this they do the testing of impairments. So approximately one and a half crore that cost has happened. Where we have there is impairment of some assets has happened. Then the manpower cost there is the impact of. Because you know when we are going for the. Because our targets are big that you are already mentioning that our exit rate is 3,500 crore by 29. So for now more global players are coming in. So we have started the investment in the manpower so the in this year especially in the last in quarter two.
In quarter two it was started in quarter three. Now we have seen the impacts also coming up. So mainly like we have hired the Chro CEO. Then our some technical heads, machining heads like many people senior level hiring has happened. So that will help us to execution of the new order book. So. And there is a. So there is some parallel management is also there. So approximately if we compare with the last quarter so around 2 crores additional cost has happened in quarter three. And overall you can see for full year we are expecting there is an impact of around 10 crores.
Yash Dalal
Okay. Okay. Thank you so much. That’s all from my end.
operator
Thank you. A reminder to all the participants that you must star and one to ask a question. Next question comes to the line of Devangsha always Investment managers Private limited. Please go ahead.
Devang R. Shah
Yeah. Hi, Good afternoon sir. Sir, my first question this quarter we have seen some kind of you know impact in the margin. So that is related to a product mix and what kind of margin we are you Know, anticipate looking forward I want to have some kind of, you know, margin band.
Vimal Gupta
Yeah. In this quarter there especially you have seen that first impact has come in the gross margins by around 1.67% that we have compared with the quarter two. So in 1.67% if you see the metal prices have started going up. So around 6 to 7 crore additional cost has happened. Maybe it is being paid by the customer but it is sitting in the revenues as well as 100% as it cost. So the impact is around 0.67% as some and the sales mix because some sales down we have seen from the light customers like Staterlandis, JLR, Toyota Motors.
So that has made impact of around 1% in gross margins. So that is the one part on the. On the EBITDA side when we are talking about. So there is a decline by 2% from the compared to the last quarter. So 2%. Mainly this, this is one of the gross margin as well as increasing the cost like I’ve explained the asset impairment, higher manpower cost. And as you know that GLR the first major project of EXL for the EV that we have executed and that is the start of a complex part in Alicon. Maybe the project from the customer side is now delayed and full utilization is not happening.
But we have to run the plant for to maintain the momentum in the production as well as to control the work rejection side. So we are not able to recover the cost police. So some losses are still happening in this project. So when after. When we will have the full capacity utilization that may be. Hopefully they are going to launch this in month of June or July or August and 26. So then it will become. This project will be on complete ramp up.
Devang R. Shah
So sir, you know, moving forward. Yeah I. I understood because the challenges we faced and you know that has impacted the margin. So my you know, you know, related question to that moving forward the way we are doing, you know, some kind of, you know, tech enabling robotics and you know, efficiency utilization kind of thing. So you know that is going to have some kind of, you know, positive impact in a market. So what kind of trajectory we can anticipate as far as margin guidance are concerned moving forward.
Vimal Gupta
So margin guidance like this quarter three was not good. And maybe if you see that in the quarter two or. It was around 12.9% the margins we are having in quarter four we are also expecting between 12 and a half to 13% margins. So then overall at least around 12 to 12.5% margins we will close for this Full year. And definitely because our aim is to at least now like on the turnover side. Earlier challenges were like. Like that how to cross the 400 crore. Now the next challenge we are taking the how to cross the 500 crore.
So same way on the EBITDA margin side, our first target is to how to cross the 13% and to reach the level of 14%. So that may be in the next meeting. We will be able to give more clearance that when we will complete our budgeting activity.
Devang R. Shah
Okay, so my next question, the way we have a outstanding order book that is to be executed by FY29, around 8,500 crore. So sir, moving forward we are, we are, you know, making some kind of, you know, new product also. We are introducing and we have also made some kind of, you know, new OEM also been, you know, now, you know, coming out. We have made some kind of tie up. So you know, what would be the order inflow guidance that you expect, you know, in a FY27 or 28 kind of thing. Will the order book remain somewhere close to, you know, 8,500 to 9,000 crore? What kind of addition is going to be there?
Vimal Gupta
So actually you see that the major because now the last two, three quarters due to this US because like I explained to Jyoti also we had a issue of that there were no inquiries from the US side in the last 2, 3/4. So that started and we have a big market there. So hopefully that this order book will start growing maybe from the next year. So when we will finalize some businesses already those were in discussion with the customers. We were doing that. But due to this tariff issue those were. Every activity was stopped. But again now those will be started after the signing of this agreement.
Devang R. Shah
Okay. So moving forward, because of the, you know, These deal between EU and US, you are anticipating that in FY27 you are going to have a further order inflow and you will make some more clarity in a Q4 related to that. Am I right, sir?
Vimal Gupta
Yes, sure. Right, right. Exactly.
Devang R. Shah
Okay. Thank you sir.
operator
Thank you. A reminder to all the participants. I do my best star and one to ask a question. Once again, a reminder to all the participants, press star and one to ask a question. Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I would now like to hand the conference over to the management for closing comments.
Vimal Gupta
Thank you for your continued interest in Alicon Castelli. We witnessed the improved momentum in the domestic market during quarter three and expect this momentum to sustain going forward in global markets, early sign of improvements are beginning of to emerge in the operating environment. Importantly, progress on trade agreements with key markets such as EU and the United States provides a more constructive medium term outlook and is expected to translate into improved opportunities and volumes for supplies to customers in these regions. We will continue to closely monitor global developments and remain agile in our responses, while staying firmly focused on our long term strategic priorities of diversification, technology, leadership and operational excellence.
Thank you once again for your time and participation. We look forward to to engaging with you again in the next quarter. Thank you very much.
Mayank Vaswani
Thank you.
operator
Thank you. On behalf of alicon Castell Oil Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines. It.