Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Atlanta Electricals Ltd (NSE: ATLANTAELE) Q4 2026 Earnings Call dated May. 11, 2026
Corporate Participants:
Mehul Sureshbhai Mehta — Chief Financial Officer
Anand Sharma — Chief Operating Officer
Akshaykumar Banshilal Mathur — Chief Executive Officer
Niral Krupeshbhai Patel — Chairman and Managing Director
Unidentified Speaker
Analysts:
Chaitanya Satwe — Analyst
Unidentified Participant
Anuj Shah — Analyst
Arafat Saiyed — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen. Good day and welcome to The Atlanta Electricals Limited Q4FY26 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 this conference call, please signal an operator by pressing Star then zero on it at stone four. Please note that this conference has been recorded. I now hand the conference over to Mr. Chaitanya Satve.
Thank you. And over to you, sir.
Chaitanya Satwe — Analyst
Thank you. Good morning and a very warm welcome to Atlanta Electricals Limited’s Q4 and folio introduction. FY26 earnings conference call. Joining us today are Mr. Neral Kurpesh Bhai Patel, Chairman and Managing Director. Mr. Akshayumar Mathur, CEO Mr. Meghul Mehta, CFO and Mr. Anand Sharma, the Chief Operating Officer. Before we begin, I would like to remind participants that certain statements made during this call may be forward looking in nature and are subject to risks, uncertainties and assumptions.
These should not be relied upon as guarantees of future performance. I now invite Mr. Mehul Mehta, our Chief Financial Officer to take you through the financial highlights for FY26.
Mehul Sureshbhai Mehta — Chief Financial Officer
Thank you, Chaitanya. Good morning everyone. FY26 has been a defining year for Atlanta Electricals. And I’m pleased to walk you through the financial performance of the year and the fourth quarter. I shall start with sharing financial performance for full year FY26 and Q4FY26. Straight away, zooming into fourth quarter revenue from operations for Q4FY26 stood at rupees 747.6 crores. A robust growth of 81.7% year on year from rupees 111.5 crores in Q4FY25 and subsequently higher by 58.5% over Q3FY26.
EBITDA for the quarter stood at rupees 149.6 crores, more than doubling year on year with a growth of 117.9% while EBITDA margins expanded to 19.99% effectively touching the 20% mark compared to 16.7% in Q4FY25. Profit after tax for Q4FY26 stood at 102.2 crores up 128.9% year on yield from 44.7 crores in Q4FY25. On a consolidated basis, revenue from operations for FY26 stood at rupees 1851.5 crores representing a strong growth of 48.8% year on year from rupees12.44 crore in FY25, comfortably ahead of the 40% growth trajectory targeted we had set for the year EBITDA.
For full year FY26 stood at rupees 344.4 crores up 77.9% year on year with EBITDA margin expanding to 18.6% compared to 15.6% in FY25 reflecting an expansion of 300 basis points. Profit after tax for FY26 stood at rupees 201.8 crores registering a healthy growth of 70.1% year on year. This margin expansion is structural in nature driven by operating leverage from higher volumes, a richer product mix tilting towards 220kV class which now constitutes nearly 52% of our revenue and improved procurement efficiency on key import materials as targeted.
All long term debts fully required I’m pleased to confirm that we have delivered fully on the debt reduction commitment made during Q3 FY26. We had availed 130 crores of term debt for our borrowed plant and 210 crores towards the BTW acquisition. A combined term loan liability of Rupees 340 crore as of 31st March 26th. The closing balance on all term loans is nil. This has been completely repaid through a combination of IPO proceeds, internal accruals and general corporate purpose fund ahead of the original repayment schedule.
This meaningfully reduces our finance cost base going forward. Moving on, I shall take a while to speak about cash flow position. Our operating cash flow for FY26 is healthy at rupees 184 crores reflective of the strong underlying business momentum and disciplined working capital management. Our credit profile continues to strengthen crisil reaffirms our long term rating at a stable and short term rating at A1 and our overall bank facilities have been enhanced from 910 crores to 1320 crores during the year which predominantly covers non fund based requirements providing us ample headroom to support our growth trajectory on the year end inventory position.
I would like to confirm that it was a planned decision. You will note that our year end inventory is slightly lower than what one might expect at this scale of operations. I want to be clear this is by design and not a reflection of any execution slowdown. We proactively planned preventive maintenance shutdowns and at two of our facilities scheduled for early April and inventory was deliberately thrown down in March end to facilitate those maintenance windows smoothly. This is a considered operational call that demonstrates the maturity of our planning processes.
All ongoing CAPEX are funded through internal accruals. Our ongoing CAPEX programs, including the new inverter duty transformer facility and the tank and Radiator backward integration initiatives are presently being funded comfortably through internal approvals as an enabling and prudent step. The Board has already approved a town loan facility that may be drawn down at a later stage if required. However, as of today our cash generation is sufficient to support the full CAPEX roadmap without any external borrowing.
Utilization of IPO Process Turning to IPO fund utilization, out of the 400 crore fresh issue, approximately 395.46 crores has been deployed as of 31st March 2026. The deployment is as follows. Rupees 79.12 crores towards repayment of loan Rupees 210 crores towards working capital requirements and Rupees 85 crores towards repayment of the BTW acquisition term loan under general corporate purposes and rupees 21.31 crores towards public issue expenses. The balance of approximately 4.54 crores lies in our public money account against remaining offer expenses yet to be claimed.
There has been no deviation from the objects stated in the offer document and this is being validated quarterly by our monitoring agency. With that I hand over to Mr. Anand Sharma, our COO for the operational update.
Anand Sharma — Chief Operating Officer
Thank you Mohan for sharing valuable insights into the organization’s remarkable financial performance and good morning everyone. I would now like to take this opportunity to walk you through the operational performance of financial year 26. I shall start with an update on the total MBA produced in FY26 across all five manufacturing units. The team of Atlanta Electricals produced a total of 22,943 MVAs in financial year 26. This is a significant step up in output and reflects the full benefit of our expanded capacities coming to life.
During this year we started getting contribution from our WADOD and ANKI facilities. Our new WADOD facility, which we call it as Unit 4, contributed 6,960 MVAs of production in approximately seven months of operation. Since commencing production in July 25, our Atlanta Trafo facility, which we call it Unit 5 at Ante contributed a production of 580 MVA in approximately three months of production during quarter three of FY26. It’s worth highlighting that our three legacy manufacturing units located in Anand and Bengaluru continue to run at very high utilization ratios through the year, reaffirming exactly why the new capacity investment at WADOD and Atlanta Trafo was both timely and necessary.
Our efforts to ramp up Unit four with proactive preparation was instrumental in delivering results. The Wadavad story is the one which we are particularly proud of. The intensive preparatory work done over the 12 months preceding commissioning with engineering teams aligned and trained, labor pre inducted machines commissioned ahead of schedule and crucially orders pre lined up to feed the facility from day one has paid up in full. Orders were secured and structured in advance specifically to ensure there was no idle time at Unit four.
Commissioning. This forward planning directly enabled meaningful utilization right from the day one. In each of the last three months of FY26 we consistently dispatch approximately 15 transformers per month from our bedod unit alone, an output level that speaks directly to the ramp up quality at the plant. On an annual basis for the seven months of operation, unit four operated at approximately 39 of the nameplate capacity which is 30,000 MVA. Our speed at the end was affected for last couple of months due to the shortage of mineral oil.
Despite the temporary shortage of mineral oil during Quarter 4 of FY26 arising from the ongoing West Asian conflict, we were able to maintain a strong production and dispatch momentum due to our proactive forward planning, inventory management and ability to shift part of the manufacturing towards green transformers using alternative ester oils. We received PGCIL approval which was according to us was the fastest in the industry. The single biggest operation milestone in the FY26 is the PGCL approval for the manufacturing of transformers up to 400kV at our unit 4 which is Wadhod facility.
We received this approval on 2nd April 2026. This was achieved within just two years of groundbreaking at WADOD and to the best of our knowledge this is among the fastest construction 2 PGCL approval timelines in the Indian transformer industry. We call this as Atlanta Speed. This approval is subject to completion of short circuit test and final qualifying requirements which will be completed in due course. We also received or secured our first 400kv order during FY26. Additionally we have quoted at multiple PSUs for their tenders, but now we are deliberately participating in restricted quantities.
Our approach is straightforward manufacture and prove the first prototype, validate it fully and only then open the doors to additional 400 KB orders. This prototype first discipline will help us enter the EHV market with higher degree of confidence. With this I Now invite our CEO Mr. A.K. Mathur for his remarks. Mathur sir
Akshaykumar Banshilal Mathur — Chief Executive Officer
Thank you Anand and good morning everyone. I hope I am audible. I’ll share three strategic reflection on what FY26 meant for Atlanta electrical number one during FY26 growth was driven by new capacity and market tailwinds. FY26 growth has been the result of two mutually reinforcing forces. The operational contribution of our new manufacturing units, Unit 4 at Wadd and Unit 5 at Atlanta Trapo coming online at right time and a highly supportive market environment where domestic demand for transformers, especially for higher KV class has remained robust and structurally sound.
When new capacity and market conditions come together in the right way, the results speak for themselves. 48.8% revenue growth and 77.3% EBITDA growth in FY26 is testament for exactly that. Having the strength of added capacity, we started approaching new customers and markets with better confidence which provided a strong order book and thus providing revenue visibility. Team Atlanta booked 2,507 crore of new order during FY26 which elevated our unexecuted order book on 31st March 2026 to 2,493 crores providing strong execution visibility going into FY27.
Importantly, the quality of the order books continues to improve with a higher contribution from 220 and EHV plus transformers reflecting our gradual movement towards higher value and technologically advanced products. We believe this position this positions well for sustained growth over the coming years. And number two, we say it with pride that our investment payback is unprecedented in the industry. One of the most compelling narratives of FY26 the speed of payback on our approximately 200 crore investment in the WADD facility.
Industry Convention for a transformer facility of this scale and voltage class typically projects a playback period of 5 to 7 years. Varroad alone contributed nearly 495 crores of revenue in first 7 months of operation. Based on this trajectory, we are well on the course to achieve payback in three to four years. Timeline which is the best to our knowledge is largely unheard of in the transformer manufacturing industry. It is important to speak about our new product development plan that is 400kV and 765kV.
Our new product development roadmap is phased and disciplined. At Vadod the focus is firmly on 400kV plus prototype at Atlanta Trafo. Our NT plant is focused on 765 KV class prototype. The pathway is clear, prototype validate and then scale. This discipline sequencing is how we will build a credible EHU reference and base that will unlock a significantly large order pipeline over next 12 to 18 months. Our green transformers were instrumental in converting a constraint into a strategic advantage.
The mineral oil shortage in Quarter 4 FY26 triggered by the West Asian crisis would have posed a much more severe challenge for our deliveries. However, because we had already secured order for green transformer which uses natural and synthetic easter oils as an alternative to conventional mineral oils, we were in a position to prioritize green transformers production during the period of mineral oil scarcity. This flexibility shielded our deliveries and demonstrated the resilience and versatility of our product portfolio.
Going forward, we expect green transformer to grow as a category as customers increasingly prioritizing supply chain resilience and ESG consideration in their procurement decision. Thank you very much with this now, I request our Chairman and Managing Director Sri Neeran Patel for his closing remarks.
Niral Krupeshbhai Patel — Chairman and Managing Director
Thank you Matab and good morning everyone. Though we are firing on all cylinders, there are priorities. Let me close with our priorities and vision for FY27. Prototyping 400 and 765 KV are our top priorities. Our single most important focus for FY27 is successfully prototyping of 400kV class transformer at Vadod and 765kV class transformer at Anki facility. These prototypes are not just engineering milestones, they are gateways to significantly larger addressable market. Once delivered and validated, they will allow us to scale our EHV order books in a meaningful way.
EHV orders carry execution lead times of 18 to 24 months and pipeline sizes are substantially larger than the lower KV segments. We are building towards that future one prototype at a time. Aggressive push in the export market is the next priority. We will be putting significant and focused efforts in exploring export markets aggressively in FY27. The first sizable export order is received in FY26 which has given us a strong foundation to build upon. We shall now be pursuing other markets in a systematic way.
We shall choose markets with an intent of staying long in those territories. We are in a process of identifying right markets for us and thereafter we shall have our physical presence in select markets to move more decisively. Domestic Demands Multiple new emerging verticals are already coming up. On domestic front, we see transformer requirements scaling up sharply across three new verticals. First, battery energy storage Systems BAS is how we call it as India’s energy storage build out accelerates as to balance the intermediate renewable generation.
Second, data centers which are rapidly growing with rising digital transformation, digital infrastructure investment and AI driven compute demand. Third, the renewable power generation Solar and wind projectors continue to require large number of transformers for evacuation infrastructure. These verticals add meaningful diversification and durability to our domestic demand. Outlook Commencing Unit 6, the Inverter Duty Transformer Facility we will commence operations at Unit 6, our dedicated IDT Transformer Facility during FY27.
We are working towards making this facility operational before end of this calendar year. Once commissioned, we shall add about 5000 MVA for production of IDTS. IDTS are a critical component in renewable energy projects. EV charging infrastructure and this facility will position us to address what we believe will be the fastest growing segment in the transformer demand in India. Tank and Radiator Manufacturing Facility for backward integration we will also commence tank and retail manufacturing plants during FY27.
This backward integration initiative will give us tighter control on supply chain, improved quality for export markets, consistency and meaningful cost benefits over time. All of which will contribute to further strengthening our margins and delivering reliably. In order to have better operational control, we shall set up this facility in close proximity of our Waddoot facility. Closing remarks FY26 has validated our investment thesis in every measurable way. 49% revenue growth, nearly 300 basis points.
Improvement of EBITDA margin expansion, Complete repayment of all term debts. The BGCI approval at Vadud facility at the first 400k we ordered in our history. The platform we have built is strong. The next chapter is about converting EHV approvals into EHV orders, scaling Exports and Operationalizing Unit 6 and our backward integration plans within a short span. We shall also be commencing procurement procurement procedure of merging AE Trafo with Atlanta Electricals Ltd. We remain deeply committed to creating sustainable long term value for our stakeholders.
We thank you for your continued trust and support in Atlanta Electrical. We now open floor for questions. Thank you.
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and then one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants. You are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all. You may press STAR and one to ask a question. We will take the first question from the line of KUNAL Mehta from Incred Equities.
Please go ahead.
Unidentified Speaker
Hi. So very very good morning and congrats on the amazing set of numbers and a very detailed guidance across operations, finance and strategic view. However, I have two or three questions. The first is the margins. The gross margins and the EBITDA have improved about 350bps on the gross and 300bps on the EBITDA level. So do we see this as a steady state margin now that our mix is bent more towards the extra high voltage transformers? So do we see this as you know, something that we can fabulate in going ahead.
Niral Krupeshbhai Patel — Chairman and Managing Director
Good morning sir. Thank you for your wishes. And we see these margins relatively stable when it comes to 220kV class and below manufacturing. The improvement in margins is because of incremental production scale up that happened in the 220kV segment and that’s where the CapEx was. But going forward we see the margins being stable for times to come.
Questions and Answers:
Unidentified Participant
Okay. And our average realization has risen above almost 8 lakh per MVA. So and I think in the previous call I think Niral sir had mentioned that you know, with increasing, you know moving more towards extra high voltage the per MV relation will come down. So I just want to understand this, you know how is the realization going from 7 to 8 lakh now? Is it because of, you know is there some kind of price hike that we are taking or
Niral Krupeshbhai Patel
Revenue per MBA is directly related to the commodity pricing and commodity pricing is trans clearly naturally hedged to the customer orders itself. So if the commodity pricing goes up, I’m talking about steel, copper, oil, etc. The prices per MVA will relatively also go up. Per MVA pricing will naturally not be a factor to highlight how the industry is performing. It is directly linked to the commodity pricing. To answer your question, yes we will be seeing per MVA realizations getting dropped in coming times because more the MVA per unit per MVA realizations drop.
We are in the process of prototyping 400 and 765 which are typically 500 MVA products which are higher than what we are making right now typically 160 and 200 MBAs. So per MVA realization will drop.
Unidentified Participant
Okay Sir, I think 400kv we are I think almost through, I think in second quarter when we received the approval in on the product level as well we can start you know aggressively pitching for all of what about 765 and you know what are certain timelines you can throw some light on that
Niral Krupeshbhai Patel
We started marketing our 765kv class products. We’ve not received any breakthrough yet. But yes, the intention is to prototype it first. This year we would be spending a huge amount of time to prototype 765 KV class transformer and reactor and then of course entering in the market. Any orders that we are able to take or grab in this particular will fall for invoicing in next particular considering the lead times that are there in the Indian market.
Unidentified Participant
Okay sir. And so just one last question on the tank and reader Capex I think you mentioned about 180 crore of capex and I think MEH also mentioned that we were doing through internal accruals. So we have a bank balance of 93 crores and a healthy cash generation. So any possibility that we’ll be drawing down the 50 I think crore term loan line and what are the timelines also for KIWT Live
Niral Krupeshbhai Patel
This financial year is when we are trying to commence this tank and radiator manufacturing facility. It’s a completely robotic investment that we are doing so that we can achieve good quality of automation and quality control. Yes, the cash flow of the company, cash flow position of the company looks significantly healthy. However, just not to affect the project timeline we would be taking term loan if required and we would have the intention to completely pay it off in the coming financial year.
Will
Unidentified Participant
It be more towards the end of it? Do we see any benefit in this year or may go for the next year?
Niral Krupeshbhai Patel
The benefits would be coming in next year for sure.
Unidentified Participant
Okay, thank you so much in the queue.
Niral Krupeshbhai Patel
Thank you.
Operator
Thank you. Before we take the next question ladies and gentlemen, in order to ensure that the management should be able to address all the questions from the participants in the question queue we request you to kindly limit your questions to two per participant. If you have a follow up question please rejoin the queue. Again we will take the next question from the line of Tina from Motilal Oswal Financial Services. Please go ahead.
Unidentified Participant
Congratulations on a good set of numbers. My question is regarding the raw material side. So which are the areas among all the categories of raw materials where you can easily manage the supply chain and and are likely to be a normal procurement? And which are the areas and which are the components where you can see some pressure on delay or in or any kind of higher costing which can be felt in next one to two quarters because of the way things are going on globally. So this is just to get an idea as to how we see the margin going forward both in terms of overall pricing and overall the cost size.
Anand Sharma
Hi Tina. Good morning. Anand Sharmatisai I’ll take this question of yours. First of all the troubles which industry has been facing. So I’ll reply on that. Historically we have seen that industry has been facing supply crunch on the conductor side, bushing side and the fabricated component side. We have been telling for last couple of on last couple of calls that the situation around the supply of conductors is improving because many of the manufacturers, Indian manufacturers who had announced their plans to expand capacities, those expanded facilities came to life and we have started now taking the supplies and there are new manufacturers also who are getting into this game and the supply side of the conductor, copper conductor is certainly going to improve.
While there is an improvement on the conductor side supply and the situation around rip pushing also is going to ease out in a time to come because there are going to be facility expansions coming in from the existing players in India. We are seeing in particular the supply issues on the OIP bushings for which also we are trying to find solutions by the way of booking orders in advance, by the way of coordinating with our suppliers well and trying to find out new vendors. As far as the pricing is concerned of course there are multiple factors so commodity prices right from copper to aluminum to crude oil everything is going up.
And this particular thing of West Asian disturbance is not only affecting the oil prices, this crude prices is indirectly affecting other smaller component pricing also made be fabrication component, fabricated component pricing or the paint prices or the gasket prices. So those small small components also we are going to see some kind of price hike. But we believe that this particular thing is temporary in phase. Once we have the resolution on this crisis, ongoing crisis, these things should cool down in a time to come.
Unidentified Participant
The cost increase that you are seeing on account of all these smaller components and smaller items which are seeing a price hike. Are you able to pass on this cost increase also to the end users for your existing contracts which are there in your 220kV category?
Anand Sharma
Tina we are able to since the majority of our contracts are on with the price variation formula we are able to pass on the majority cost to our customers. This smaller components which I told you like components like gaskets and pains etc. Etc. This these are very very very minimal raw material contained items for any transformer manufacturing company. So it will not have any major impact actually.
Unidentified Participant
Understood, understood. And another thing is on the tech tie up for the 765kb transformer. So where are we in terms of the stages of achieving this?
Anand Sharma
We are in discussion with couple of agencies name of which surely cannot be disclosed at this point in time but we are in discussion with couple of agencies or companies to finalize this particular tech tire for 765kV. We are expecting it to be closed in next couple of months. That’s the target we have kept for ourselves.
Unidentified Participant
Understood sir. And the short circuit test would be due sometime in the month of June, July for your 400kV.
Anand Sharma
I would not be committed on that front. Yes, we are working and yes, come again coming quarter we shall certainly be sending our transformer for the short circuit.
Unidentified Participant
Understood. Thank you. Thank you. That’s all from my side.
Operator
Thank you. We will take the next question from the line of Anuj Shah from Philip Capital. Please go ahead.
Anuj Shah
Good morning everyone. Kudos to the entire team of Atlanta Electricals for delivering another stellar set of numbers. So I had just couple of questions. Firstly, could management provide some sort of perspective on the expected utilization ramp up of WADDUR facility over the next 12 to 24 months and potential revenue contribution from higher KV segment?
Niral Krupeshbhai Patel
The expected utilization of Badoord facility is on track. We expect it to be like we suggested before going public about 35% in the last financial year which is about 39%. We expect it to be 65% in this particular year and then eventually taking it to 100% in the next financial year. 65% is because of the development time that is going to take into 400kV class and the production of 400kV. Mainstream production of 400kV glass coming in in next financial year would ramp up the capacity to 30,000 MPa as of today and in this financial year majority of the products it would get manufactured would be still 220kv and some products, only some products of 400kv.
Anuj Shah
Okay, my second question was. So as we now continue to scale our operations and move towards a higher value product M, do we see any further scope for margin expansion or we, you know, stay very conservative in terms of margin guidance and maintain that 18 to 20% band for next financial year.
Niral Krupeshbhai Patel
Historically we’ve been maintaining one stand that we would be growing at about 40% CHR for next three years. First year has already passed by with an intention of margins being stable because of the system. I mean because of the reason that we have yet not manufactured a 400kV class transformer and the 765kV class transformer under the brand name of Atlanta Electricals. However, when we start manufacturing we would be in a better position to tell you any improvement in the margins are there or not.
But as of today we maintain a standard it’s going to be stable.
Anuj Shah
Okay, thank you so much and all the best to the entire team. Thank you.
Niral Krupeshbhai Patel
Thank you sir. Thank you.
Operator
Thank you. We will take the next question from the line of Arapa from Dollar Capital Please go ahead.
Arafat Saiyed
Yeah hi sir, I’m Audible
Anand Sharma
Hi Good morning.
Arafat Saiyed
Morning sir. Are you
Anand Sharma
Good? Good sir.
Arafat Saiyed
Yeah. So congrats on a dealing song quarter and also excellent effect and his performance. So most of the question has been answered but just to say if you’re becoming a debt free now so how does the management plan to look like future cash flow let’s say higher capex or working capital or let’s say any other form of equation kind of thing.
Mehul Sureshbhai Mehta
So Arafatji may hold this side Naturally speaking as we move up higher KV class execution requirement of working capital will be there. It will increase for sure. That is the reason we were commenting every time that going forward in FY27 and FY28 our net working capital days will go up around 80s and 90s. However during FY26 we could maintain our net cash flow days at around 64 and going forward it will increase for sure.
Arafat Saiyed
Sure. And then next on can you please comment on the competitive landscape in the transformer industry especially the multiple player announcing fresh capex across the category. So how do you see that?
Anand Sharma
This is a very let’s say obvious question which comes every time we get into a call with any of the let’s say investor fraternity. So the capacity expansion which is coming or has come up or shall be coming we have been maintaining that it is because of the demand generation and is to meet the demand generation when it comes to the transformer requirement India has been setting up newer newer targets and a higher and higher targets for the power generation. So we have been hearing find it gigawatts by 2030.
The new target which I have been in particular listening for last 15 days is 900 gigawatts by 2035. This coupled with the requirement of transformer coming in from the Europe, USA market, Middle East I’m sure that whatever amount of capacity Indian manufacturers are going to put up it is going to still fall short of the requirement. The requirement is going to edge over the supply side for at least next five years. Yes, for sure.
Arafat Saiyed
Lastly let’s say any plan to let’s say starting export for the country and what’s this should look like for company like yours and what are targets for you to generate export?
Anand Sharma
We have been maintaining this trend that in next three years time we have this target of taking our exports to 15% of the total revenue. We are working towards developing those markets. We have started discussions in different markets with different set of customers. It would not be fair on our part to maybe commit or comment as to which markets we are approaching and what is the progress on that. But yes, wherever, as neeras are also suggested on the call that wherever we shall be putting our food, we shall be doing it with an intention that we are going to stay there for a longer duration and it’s not going to be a transactional business for sure.
Arafat Saiyed
Got it. Thanks. That is answering.
Anand Sharma
Thank you professor sir.
Operator
Thank you. We will take the next question from the line of Nikhil Chaudhary from Toro Wealth Managers llp. Please go ahead.
Unidentified Participant
Yeah, congratulations team on a very stupendous performance. And I had just two questions in Q3. We’ve been like we mentioned that we’ve been quoting on data center inquiries. So just wanted to get a reconfirmation on how many active inquiries and what is the conversion timeline because one of our peer has actually received very large orders. So just trying to understand if this is a very strategic priority for us or along with other export opportunities too. Second question is if you are comfortable, what would be the gross margin delta between 400kV and 220kV in your current assumptions?
Niral Krupeshbhai Patel
So sir, export markets do end up taking a lot of time to find mean for the orders to get finalized. They come in with long term planning and they do have time to, you know, shortlist the vendors. So when we say we are working on it, we expect to have a breakthrough in this financial year in terms of orders. But the execution will definitely fall on the next year because the lead times are much larger than what we have in the Indian market for even 220kv and below products responding to the margins on the, I mean margins or valuation of 400kv class.
We say that, I mean we expect that 400 and 765kv class would be around 200 basis points higher. But as of today, in the current last financial year numbers, There are no 400 KV class products and there are no revenues coming in for 400kv class products.
Unidentified Participant
Yeah, got it. Thank you so much. I wish you all the best. Thank you.
Operator
Thank you. We will take the next question from the line of Naman Parmar from Nivesha Investments. Please go ahead.
Unidentified Participant
Yeah, good morning sir. Thank you so much for opportunity and congrats on great set of numbers. So firstly I wanted to understand on the current order book how much contract would be the fixed contract and how much would be the price variation? Cross contract contracts.
Mehul Sureshbhai Mehta
Yeah, yeah. Hi Naman. So current order book which we have and we maintain this 10 throughout the concourse that we are maintaining around 70 to 80% of the orders from the state utility boards. So this ratio is in the range of let’s say 60% to 75% in recent times and going forward also we expect that this ratio to be there at the outset. We would like to say that any orders from state duty boards is backed by the price variation close. And in recent times even the private orders which are for longer horizon are also backed by the price variation close.
Unidentified Participant
Okay, yeah, understood. Thank you so much. And secondly, only 180 crore capex that you have told about the radiator and tank facility and IDT division. So IDT 5000 MV would be totally a new capacity which will be live in the another greenfield plant or it will be in the existing plant only.
Mehul Sureshbhai Mehta
So IDD facility will be in the existing Varrot facility only. So it is the adjacent area of facility and that is additional capacity of 5,000 MVA
Unidentified Participant
And how much? Yeah, so 180 crore capex. Then what will be for the IDTM? What will be for the radiator? And Then
Mehul Sureshbhai Mehta
So for IDT it is around 65 crores of capex and for backward integration it is 170 to 180 crores of the capex.
Unidentified Participant
Okay, understood. And lastly only currently like how the whole industry is moving towards lots of long transmission line like hvdcs and all. So there will be big requirement for the HVDC converter transformers. So any update that we will be entering that particular market in coming future like we are entering the 400 to 765 and if we see a very big potential on that side then we are thinking to enter that market.
Anand Sharma
There is a good demand on the HVDC transformer requirement that is for sure is there actually. But for a company like us which is concentrating now on the development of 400 and 765 KB products, it would be too early and ambitious to say that we possibly would start working on HVDC in a time to come. We would focus more on establishing or doing the prototype for 407 65kV first. And once we have done that successfully we shall certainly be trying to find a newer growth territories and it surely would be hvdc.
But there is no point we commenting on it at the moment.
Unidentified Participant
Right, right. Yeah, understood. Thank you so much.
Operator
Thank you. We will take the next question from the line of sukrit Deep patil from Eyesight Fintrade Private Limited Please go ahead.
Unidentified Participant
Good morning to the team. I have two questions. My first question to Mr. Niral Patelan. In your point of view, how is Atlanta Electrics preparing to capture evolving demand in electrical equipment and power systems while thoroughly addressing challenges such as raw material volatility, technological shifts and competitive pressures? And what strategic lever do you see important that will differentiate from your peers in the coming quarters? That’s my first question. I’ll ask my second question after this.
Thank you.
Niral Krupeshbhai Patel
It’s a very detailed question and it’s going to be a long answer but I’ll be fairly brief as I can. When it comes to differentiating Atlanta Electricals, we are a company goes very lean in terms of our fixed costs and we intend to be that and we intend to keep it in a longer duration. When it comes to planning we are always a step ahead. When it comes to technological development, we are again a step ahead. We would like to be part of the growth story that is coming in for the transformer space requirement.
The hence coming power demand which is going to eventually create demand for transformers. To sustain that growth story we’ve already taken up developments of newer technology products that are 407 65kV glass transformers and 400 765kV glass reactors which will play a big role in the growth story of Atlanta Electricals.
Unidentified Participant
The second question to Mr. Merule Mehta is as the company continues to benefit from infrastructure and industrial demands, how are you prioritizing capital allocation between capacity expansion, technological investments and shareholder returns and what long term cost efficiencies are being put into place to safeguard margins amid rising input and compliance costs. Thank you.
Mehul Sureshbhai Mehta
So sir, right now the focus is on development and development of 400 765kV. So we are allocating fixed capital over there for newly built CAPEX plan for IDT as well as the backward integration. These are the two capex which will be coming in this financial year. Other than that there will be cost related to development of 400 765kV which is in terms of let’s say short circuit base well as technical tie up for 765 KV. So we are allocating a good amount of capital over these two plants. Along with this as I told earlier, there is increase in working capital requirement as well.
So we are focusing on that as well.
Unidentified Participant
Thank you and best wishes.
Mehul Sureshbhai Mehta
Thank you. Thank you sir.
Operator
Thank you. We will take the next question from the line of Parakshit Khanpal from HDFC Securities. Please go ahead
Unidentified Participant
Yeah. Hi sir. Congratulations on a great quarter. First question is on data centers. So what is the total share of order book from the data centers and how do you think this opportunity will play out over the next few years for us?
Anand Sharma
But as of now. Good morning. Anand Sharma this side. As of now there is no portion of data center business in our kitty. We are in discussion with different customers, potential customers to explore this particular market. But yes, to confirm as on date there is no single order of data related to data centers in our kitty.
Unidentified Participant
But how big this opportunity could be. For any suspense on this opportunity both on the Indian context and even export markets for us
Anand Sharma
It is looking to be huge. We do not have any fixed numbers or specific numbers to tell you at this moment. We are also exploring different opportunities and if different reports give different numbers. So it’s not fair on our part to just pick one particular number and put it on the table. But this looks to be pretty interesting a case and it’s going to be quite sustainable a demand in a time to come.
Unidentified Participant
My second question is on the commodities. So what portion of our raw material is imported and weren’t we impacted by the rupee depreciation? Some of our peers have seen the margins cracking because of commodity or the transformer oil. Then copper prices going up. So if what was the hit for us? How do we hedge copper? So if you can highlight some of these things now how you are mitigating the impact of the commodity price increases and rupee depreciation.
Anand Sharma
Our organization’s strength has been that we are having majority of our orders with the price variation clause. So that has been the strength of the organization and that is, that’s one particular strength which is coming quite handy and these kind of difficult scenarios which are prevailing at this moment. So whatever price increase we are seeing in the commodities, different commodities, we are able to pass it through to the customers with the help of the price variation clause which we have along coming with the purchase order, what we have also started doing off late, that we have also started talking to the private or the corporate customers to provide orders or to give orders with the price variation clause so that we are able to mitigate if any risk on the private or corporate customers orders also.
Unidentified Participant
So out of the 2493 crores order book is it entirely passed through? So I think earlier you give some share of the utility. So I didn’t quite get it. So is it like only 60 to 75% order book is passed through or like. So if you can help us understand, yes, you
Anand Sharma
Are Right sir, you are right. Approximately 75% of the order is on the with the price variation clause and rest of the orders are without price variation clause.
Unidentified Participant
But in this quarter, can you quantify any hit you would have taken if on account of commodity. So if the margins would have been better if that fixed price portion was also. No, no,
Anand Sharma
No, no. Nothing. Nothing. We have not taken any hit in the previous quarter.
Unidentified Participant
Okay. And can it come in Q1 now?
Anand Sharma
No, we don’t expect it to see and it’s quite early for us to comment on that. As to where prices shell we. We have daily movement of the prices nowadays so the different phenomena. So we will get to know when it comes. Thank you sir.
Operator
Thank you. We will take the next question from the line of Digar Johnny from Nuama PCG Research. Please go ahead.
Unidentified Participant
Yeah, hi. Thanks for taking my question. Sorry I’m a bit new to this company so the questions you might have answered in the previous calls. But on your backward integration project, what kind of margin accretion are you expecting when this project comes online on the tank and radiators backward integration that you would be doing? That is my first question. And my second question is given that you are going to utilize Verdot more so there will be operating leverage coming in plus the backward integration part, what kind and plus moving into higher KV transformers, what kind of margin accretion totally do you see once all these three benefits kind of flow through into your pnl?
Yeah. So if you could answer that. Thank you
Niral Krupeshbhai Patel
Sir. Very frankly speaking, backward integration for editors and tanks is not because of margin improvement. That’s not the intention of the company. The company’s intention is to get, you know, align its supply chain and manage supply chain management. Because we all know that all of transfer manufacturers are expanding requirement of radiators and tanks is going to further expand and we need to allocate our own supply chain for that. That is point number one. Point number two is it is because of quality improvement.
Unidentified Participant
Yeah, sorry, go ahead.
Niral Krupeshbhai Patel
Point number two is because of quality improvement. When we are targeting export markets, it is always better to have good robotically engineered radiators and time fabrication and robotically painted. So that is the reason this capex has been put in place. When we talk about 400kv development, 765kv development, there is going to be expense that is going to be attached to the technical tie up that we are going to do and hence and also the research and development cost of these products and also the type testing cost of these products.
The cost is something that is anticipated. I would not be able to share the exact number however, because of this cost coming in and after developing a first 400765 KV class product we would be able to say how much margin improvement that comes into play as of today with that margin improvement and cost coming in, taking off I mean setting up the margins we would like to share that the margins for coming tanks would be fairly stable in nature.
Unidentified Participant
Understood. And sir, lastly this order book that you have what is the general execution timeline? Is it like within a year that you execute this order?
Niral Krupeshbhai Patel
Normally speaking sir, 220 KV class and below the timelines are close to 12 months to 18 months. The current order book only a very small portion is 400kv class that also falls into for deliveries perhaps starting December till March mostly about 80 85% of this order book will get executed in the coming year itself. Whatever orders that we’d be booking for higher KB class in this particular year will fall for execution in the next financial year.
Unidentified Participant
Thank you so much for answering my questions patiently and best of luck. Thank you.
Niral Krupeshbhai Patel
Thank you. Thank you.
Operator
Thank you. We will take the next question from the line of Saram Choghlaikar from Vimana Capital. Please go ahead.
Unidentified Participant
Hello. Yeah hi. Thanks for the opportunity. So on the demand side as you said that a lot of capacities are coming up and. But still there will be a shortfall so just trying to understand is there a thumb rule by which we can go so for every gigawatt like what amount of transformer capacity is added? Like for every gigawatt of generation capacity added Is there a thumb rule or anything like that?
Niral Krupeshbhai Patel
Sir, very frankly this is Meral Patel once again so the thumb rule says it is between. Anywhere between 8 to 11 times the gigawatt capacity gets added the transformer capacity gets added in various KV classes However this is straight generation to utilization of power. Now when we speak about grids being unstable requirements of bas coming in these. This thumb rule generally would tend to increase because battery energy storage systems were never a thumb rule of the Indian power industry. This is again coming in just to stabilize the grid so this is incremental requirement of transformers.
There are battery storage systems getting commissioned as we speak but generally no thumb rule is attached to it.
Unidentified Participant
Understood. So it’s about eight to 10 times is what we. Yes, thank you.
Operator
Thank you. We will take the next question from the line of Aditya Vora from Soham anc. Please go ahead.
Unidentified Participant
Yeah, hi, good morning. Neither by a great set of numbers and congratulations to the Team. My question primarily was on the bss. You alluded to the fact that there is no thumb rule as such, but just from an Atlanta perspective, just wanted to understand how big the BSS opportunity could be. And considering the fact that currently we are at 1 1.5 GWh and by F530 we are expected to, you know, reach anywhere. So how is that? Sorry to interrupt in
Operator
Between. Adity, your voice is speaking. Could you please repeat your question and use the answer more?
Unidentified Participant
Yeah, sorry. Is it better now?
Operator
Yes, please proceed. Yes
Unidentified Participant
Sir. Right, right. So my question primary is for the BSS segment. You know, considering that BSS is a very large opportunity and when you look at all the renewable companies, right from Adani Green and others, everybody is setting up massive BSS capacity. Just wanted to understand how this BSS opportunity is for Atlanta. That’s the first thing. And secondly, I know alluded to the fact that there is no mathematics in terms of per gigawatt hours, how much transformer is required. But if you could quantify numerical terms for the size of the opportunity for Atlanta and the industry of for the transformer segment with respect to bss.
Niral Krupeshbhai Patel
Morning sir. So I understand the question and I understand where you’re coming from sir. But very frankly speaking for a company like Atlanta it will be very difficult to judge the numbers as to how much requirement will come up. What we are seeing right now is a lot of orders getting awarded in the TPCB model of bss wherein it is developers are making such kind are in the process of constructing battery energy storage systems. Requirement of this nature will be there for times to come because the amount of renewable gigawatts that we’ve already added, we would have to augment that with battery energy storage systems.
So the requirements will be huge. We anticipate that however the KV classes and the products depends upon how the BSS is getting designed. And trust me, it is a new story for India. So we are seeing continuous developments happening, prototypes, products changing. But we are very well placed in terms of technology to support this kind of market.
Unidentified Participant
Right. So is this some different kind of a transform required on idt? Transformer is fine considering that we are dealing with renewables.
Niral Krupeshbhai Patel
It’s a converter duty transformer wherein the power flows in by directionally. But it is a transformer that can be routinely designed by Atlanta Electricity.
Unidentified Participant
Right. And have we supplied any BSS transformers currently or any BSS transformers in our order book?
Niral Krupeshbhai Patel
In times to come we will be supplying. We have VSS orders in our order book. So in times to come, people will be definitely supplying.
Unidentified Participant
Right? Okay, sir. Thank you. I think most of my questions were answered. And congratulations again on, you know, one of the best results in the industry. Great work. Thank you.
Niral Krupeshbhai Patel
Thank you, sir. Thank you for support.
Operator
Thank you. Ladies and gentlemen, we will take that as the last question. I now hand the conference over to Mr. Neel Krupish Bhai Patel for the closing comments. Thank you. And over to you, sir.
Niral Krupeshbhai Patel
Thank you. Thank you, sir. Thank you, everyone, for joining. This is Neeral Patel signing off. Thanks, everybody.
Operator
Thank you. Members of the management, on behalf of Atlanta Electricals Limited, that concludes this conference. Thank you all for joining with us today. And you may now disconnect your lines. Thank you.
Niral Krupeshbhai Patel
Thank you. Thank you.