Ddev Plastiks Industries Ltd (BSE: 543547) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Narrindra Suranna — Chairman
Rajesh Kothari — Whole-Time Director
Arihant Bothra — Chief Financial Officer
Analysts:
Unidentified Participant
Saloni Ajmera — Analyst
Archana Gude — Analyst
Bhargav — Analyst
Jyoti — Analyst
Arnav Sakhuja — Analyst
Guru Darshan — Analyst
Vignesh Iyer — Analyst
Bhavik Shah — Analyst
Raj — Analyst
Jaydeep Taparia — Analyst
Saket Kapoor — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Dave Plastic Industries Limited Q1FY26 earnings conference call hosted by Go India Advisors. As a reminder all participants line will be enlisted on the mode and there will be an opportunity to for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference has been recorded. I now hand over the conference to Ms. Saloni Ajmera from Goindia Advisors. Thank you. And over to you Ma’. Am.
Saloni Ajmera — Analyst
On behalf of Dave Plastics Ltd. I would like to welcome you to our earnings call to discuss the operational and financial performance for the first quarter of FY26. This session is hosted by Goindia Advisor. Joining us from the management team of Dave Plastics is Mr. Narendra Surana, Chairman and MD Mr. Rajesh Kothari, Whole Time Director, Mr. Aryan Botra, CFO and Tanvi Goyanka, the Company Secretary. Please note that today’s discussion may include forward looking statements which are subject to various risks and uncertainties. I encourage participants to consider these factors when interpreting company development. With that, I now invite Mr.
Rajesh Kothari to provide an overview of the quarter and business outlook and performance. Over to you Kothari ji.
Rajesh Kothari — Whole-Time Director
Good morning and welcome to the Dave Plastics Quarter 1 FY26 earnings call. We appreciate your time and continued interest in our journey. Yesterday our Board of Directors approved the financial results for the first quarter of FY26 and today we are pleased to share with you our performance highlights, key developments and outlook for the future. During this call we will walk you through our financial and operational performance, provide insight into our strategic direction and articulate our growth roadmap. Will also shed light on the key initiatives undertaken during the quarter and reaffirm our long term vision for the sustainable and inclusive growth in FY26 and beyond.
Before we begin, I would like to remind you that certain statements made on this call may be forward looking in nature and are subject to risks and uncertainties. FY25 was an exciting year for us marked by significant milestones and robust growth in line with our management vision and guidance. We remain confident that FY26 will follow a similar trajectory driven by our unwavering commitment to excellence. Thank you Saloni. Here is a well structured professional speech ready version of our entire draft. All is for clarity, flow and tone. I have preserved all the key messages while ensuring it reads smoothly as part of our formal address.
The quarter gone by has undeniably been one of the most eventful and turbulent period in recent history. Escalating global tensions, both geopolitical and economic, have resulted in a mix of conventional military actions and non kinetic confrontations such as cyber and trade wars. These developments have fueled significant market volatility across geographies and sectors. The resulting ambiguity has weighed heavily on corporate confidence and international business. Despite such a challenging backdrop, India has demonstrated remarkable resilience amid the prevailing geopolitical uncertainties. The Indian economy has emerged as a relative bright spot underpinned by macroeconomic stability and encouraging trends across key indicators.
The previous quarter witnessed an uptick in GST collections, rural waste growth and government led capital expenditure at both central and state levels. Inflationary pressures, including on the commodity front remained soft. Looking ahead, we see multiple macro tailwind supporting the growth recovery. These include a sharp cut in interest rates, middle class income tax relief forecast on an above average monsoon healthy showing patterns, easing commodity prices and surplus banking system liquidity on the most notable feature of first half of year 25 have been the swift and decisive policy response by the government and the Reserve bank of India in addressing emerging economic concerns.
The RBI adopted a highly accommodative stance, surprising the corporates with a 100 basis point repo rate cut year to date alongside a cumulative 150 basis point reduction in case reserve ratio. This was further supported by liquidity infusion by multiple rounds of open market operations and forex. Swiss regulatory relief measures such as the rollback of restriction on certain lenders further reinforced financial stability. On the fiscal side, the government FY26 Union Budget stood out for its pro growth orientation including the INR 1 trillion income tax relief for individuals aimed at boosting congestion sentiments. In a significant boost to fiscal headroom, the government also received a record INR 2.7 trillion dividend from RBI which is expected to support growth supportive expenditure through the remainder of the year.
After an extended phase of meted capital spending in first nine months of FY25, the government has decisively ramped up its investments. March 25 alone show a record outlay of INR 2.4 trillion and the five month period from January to May 2025 recorded a strong 41% year on year growth in capital expenditure. The cable and wire segment remains central to India’s industrial expansion. Now I will explain you what are the demand drivers in the domestic markets and export markets? The major demand drivers are power generation in renewable through solar and wind energy and also we are seeing a substantial new investment coming in coal based thermal power projects and related infrastructure in transmission and power distribution by transmission and distribution companies of central government and state governments.
Simultaneously, we are witnessing a resurgence in coal based thermal power investments which along with large scale initiative in transmission and distribution infrastructure by central state duties is further accelerating sector demand. We assure that we will continue to grow with the projected percentage what we have stated and we will try to improve upon it during the current financial year and subsequently. This will be our endeavor to keep the growth momentum in the company on a continuous basis. The Indian wire and cable market is projected to grow at the date of CAGR of 12%. In line with this growth, leading manufacturers are expected to undertake capital expenditure of approximately 13,200 crores.
This scale of investment presents a significant growth opportunity for polymer compound suppliers like us who form a very critical link in value chain. Over the past five years FY20 to FY25, our company has delivered consistent and profitable performance. Our EBITDA has grown at a CAGR of 28% with margins expanding from 5% to 11%. Similarly, our profit after tax has increased at a CAGR of 46% rising from 27 crore in FY20 to rupees 185 crore in FY26. We remain confident in our ability to sustain this growth trajectory. In fact, it is our continued endeavor to outperform our stated targets and strengthen our market position in current financial year and beyond.
Due to critical quality requirements and stringent approval process mandated by end users, polymer compound manufacturing is not amenable to outsourcing. This calls for robust quality control mechanism, advanced in house R and D infrastructure and and continuous capital investments making it a high entry barrier industry. With evolving regulatory standards and heightened emphasis on safety and product quality, compliance costs in the wire and cable sector are expected to rise. In this context, legacy players like devplastics are well positioned to benefit as large more organized players. Now the big players such as Adani and Ultratech enter the wires and cable space.
Their plastics naturally emerges as the preferred compound supplier owing to its proven track record and deep industry expertise. As India’s largest listed polymer compound manufacturer, Devplastic has effectively leveraged evolving industry dynamics. We are planning to increase our focus on cable segment by adding more capacities and in pvc, halozonic fuel, flame retardant and XLP compounds. Our efforts are commemorated towards adding capacities to meet the global rising demand for cables and allied sectors. The company has demonstrated consistent cash flow generation, sustained margins expansion and holds industry leading market share approximately 50% in silo plus and around 33% in XLP.
Underpinned by a strong balance sheet in FY26. We aim to build on this momentum by expanding our compounding capacities in xlp, PVC and allogenic frame retardants to meet the rising demand for high voltage cables. Currently our XLP offering cater up to 72kV with the planned capacity expansion will be entering the 220kV segments. Also apart from the capacity, we would endeavor on Getting certification for 132kV for making it ready for commercial use by end of FY26 early FY27. Whilst SFR is expected to get more industry impetus, this upgrade aligns with market trends and positions us to serve the growing requirement for medium and high voltage cable applications.
During the quarter our export orientation came encountered challenges due to geopolitical conflicts. However, we successfully mitigated these impacts by promptly redirecting product to the domestic market where strong demand enabled swift absorption. Despite the prevailing conflicts, our export revenue grew at rate of 3% year on year basis to INR 154 crores. We remain firmly committed to our long term objective targeting volume growth for approximately 10 to 15% and and revenue growth of 12 to 13%. On a conservative basis we aim to achieve a revenue of about INR 4,500 to 5,000 crores by FY30. We also expect to maintain a robust EBITDA margin in the range of 10 to 12%.
Our strategic focus will remain on enhancing our operational efficiencies, expanding our product portfolio and delivering sustainable value to all our stakeholders. I Now invite our CFO Mr. Arian Bhotra to take things forward. Thank you.
Arihant Bothra — Chief Financial Officer
Thank you Sir. We at Dave Class 6 are pleased to announce a robust start to financial year 26. For the first quarter revenue from operations reached approximately 769 crores representing a 23% year on year growth. This performance was primarily driven by sustained strong demand in the wire and cable industry coupled with a 50 basis point increase in our average selling price. EBITDA stood at 79 crores with a margin of 10% while PAC was approximately 52 crores delivering a margin of 7% for the quarter. During the quarter we continued our capital expenditure programs adding capacity for several plus compounds of 5,000 metric tonnes in the eastern part of the country.
While bringing our installed capacity to two 38,400 metric ton per annum. Production volumes saw healthy growth of 11% year on year basis reaching close to 52,000 tons. Capacity utilization improved both sequentially and year on year basis standing at 87%. Our capex plans remain on track with an expected investment of 110 odd crores in this financial year. Now we request for. We rather we open the floor for question and answers.
Questions and Answers:
operator
Thank you so much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Archana Goude from IDBI Capital. Please go ahead.
Archana Gude
Hi, good morning. Thank you for the opportunity and heartiest congratulations to the entire team for strong numbers. So I have four questions. Firstly, can you guide us on 23% exchange growth for QNFI 26 in terms of value and volume? Also similar numbers for Q1FY25.
Arihant Bothra
Thank you so much. So this 23% growth has been contributed by two things. One, as we have already informed with regards to volume, volume has grown by almost 30 odd percent as compared to the Y&Y. For the first FY25 unity. See the average selling price. The first quarter average selling price was around 136 rupees. And this quarter we have achieved average selling price of 148 rupees. Though as compared to the previous quarter it is a marginal increase of 50 basis points. But when we compare with the year, on year quarter first basis it is close to 9% increase.
So that is what contributing close to 23% of the growth.
Archana Gude
Okay, so you said this 136 rupees per kilogram for K1FY25 and 148 for this quarter, right?
Arihant Bothra
Yes.
Archana Gude
So that is roughly 9% growth.
Arihant Bothra
Yes.
Archana Gude
And the remaining 13% growth in the volume. Right. So secondly, on what kind of revenue should we expect once we receive this 132kb cable certification? Let’s say the five year end of FY26 or maybe you know some number for F27.
Rajesh Kothari
So here the important factor 132kv the revenue generation we can expect somewhere in FY27. As we go higher in the voltage rating, the time which is taken for ramping up the volumes is quite long because you have to get the first the cables made, then cables need to get approved and then the customers will start lifting the product in a small quantum because it is a measure of trust building. Despite having the certification, the volume growth takes time. So significant volume growth from 132kV segment alone can be seen beyond 2027, not before that. But the real advantage of being able to deliver 132kV successfully to the customer and get the approval would be seen in our volume growth for the voltage rating up to 72 KB.
Because when people accept you as a good supplier and a reliable supplier capable supplier for 132kV then all their doubts for any voltage rating below that are eliminated and there you are able to grow your business in bigger way, right?
Archana Gude
Can you help me with the market size for this segment and what kind of margins are there?
Rajesh Kothari
132Kv market. See I I will put the market within a bracket of 132kV to 440kV. The market size is just 10 to 12% of the total market size for XLP insulation for for this category and the realizations are generally 10 to 12% higher compared to a 72kv product. If we talk about 132kv pricing it is bound to be higher by 8 to 12% compared to a product which is offered for 66kv.
Archana Gude
Sir, any update on this capacity addition what we planned last year for FY26 and when should we expect it to start contributing to the.
Arihant Bothra
Yes, thank you. So this is already in fragment which is already happening. As we explained, 5000 tons is already added in the eastern coast and now PVC and HFR are already in process probably by third quarter if PVC and HFR will be completely installed and those capacities also will be running. 5000 tons of PVC is also being already installed in the eastern part of the country in this quarter and that will be running by next week with their commercial operations. So as far as this pvc, HFFR and XLP initial plant capacities are all in line.
We are also planning to increase further XLP capacity which will be in the second half of the year, probably in the fourth quarter so that that operational capacities will be practically from the next financial year.
Archana Gude
And lastly there has been very healthy improvement in utilization on PIOI at 87% this quarter. So should we anticipate the similar kind of number for rest of the year in terms of utilization, maybe some 87 88% for full year.
Arihant Bothra
So if you see the average in growth which we have already projected or estimated, whatever you say, we are targeting a growth of 12 to 13% on a minimum side as compared to the previous 34 years. So if you compare the same, definitely we are in line. The quarter wise volumes may be up and down depending on the environment because second quarter generally the monsoon season impacts and marginally the volumes become the lowest as compared to any other quarters. So we should not see it is on quarter to quarter basis broadly. But when we see the growth, definitely we are on a better trajectory.
The demand is very strong and we will see that this 12 to 13% minimum growth is there.
Archana Gude
On the volume front.
Arihant Bothra
Yes, on the volume maybe.
Archana Gude
Lastly, I’ll just present one more question. On the margins. Sir, you know, somewhere we are shy of 10%. It’s the other income. This is good. Is that this volatile wrongdoer prices is really keeping us away from touching that 11% plus kind of mark or is there something I’m really missing out on? Reading the numbers.
Arihant Bothra
So we see the numbers on the basis of EBITDA per ton and that too on the gross basis, including the other income. Because most of the other income is a part of our business, they are not separate. So if you see that the last year’s average was close to 15,100 rupees and this first quarter had been at close to 15,300 rupees. So on EBITDA per turn basis, definitely we are improving. Even if you Compare with the Q1 of last year we were at 14 and now we are at 15.3. So definitely the improvement isn’t there.
The base effect of increasing the base prices from average of 137 last year to almost 148 in this first quarter had late to the percentage drop. But if you see the absolute numbers it has, it is improving on quarter. On quarter basis.
Archana Gude
Right? Sir, maybe my question was more of, you know, what should really we look at to get back to that 11% mark for full year, how confident we are that will be in H2FY26 when you know, when we have this increasing capacity then maybe higher share of value added products and for the full year we should expect those kind of numbers at operating level.
Rajesh Kothari
Yeah. So Arian, I’ll just add a clarification. We always look at EBITDA or margins as per ton basis. And our focus is to improve the margin on per ton basis, basically. So if the realization goes up then percentage wise it might appear that there is no improvement. That is why my request would be that please look at our forecast and projection with regard to our commitment to or our confidence to see the improvement of EBITDA on per turn basis and that we have delivered better EBITDA per ton basis compared to last year first quarter. And we continue we hold this view for this entire year as well.
Archana Gude
I get it, sir. I get it completely. Thank you so much and all the rest of the team, I hope similar kind of numbers for the upcoming quarters. Thank you so much Yash.
Arihant Bothra
Thank you.
operator
Thank you. The next question is from the line of Varga from Avid Asset and Management. Please go ahead.
Bhargav
Yeah. Good morning team and congratulations on a good performance and a fairly detailed presentation. Sir, my first question is on this certification of 142kV. In our earlier conference calls what I understand is that we were looking to go live by FY28. But is there any positive development here now that we are seeing that?
Rajesh Kothari
Yeah. So Bharat, the point is that product is ready with us but the next step is driven by the fact that it has to be tried by a cable customer and we are having a tie up arrangement with couple of customers. But unfortunate part is that the trial has not taken place yet. So when we are saying that we will be able to go live in FY27, it is based on the assurance we are getting from our customers that most likely they will be able to take up our product for trial in the last quarter of say or third or last quarter of FY26.
It means another six months they will be able to conduct the test and come back with the report approving the product. Then in 2027, FY27 you may have some volume to start with. So this is based on the latest interaction we have with the customer. But here always you can see a possibility of improvement by a couple of quarter in the timeline and a delay of couple of quarter in the timeline depending upon how this tie up delivers.
Bhargav
Secondly sir, within the PVC which currently has about 4 to 5% EBITDA margins, are we looking at some value added products which can of lift our margins maybe to 7 to 8%.
Rajesh Kothari
Yes. See as we see that people like Ultratech and Adani are planning to enter the wire and cable segment and our inputs from the market and interaction with those investors indicate that their entry will start from the building wires initially. And that is where the PVC’s role is very important. And our margins because PVC, what we are selling is a basket of multiple product. The product which goes for building wire, the product which goes for the general purpose jacketing application also. So building wire per se delivers better margin. So we are getting ready for that opportunity which will be offered to us the moment Ultratech and Adani start their building wire activity.
Because we are very strong and we have a very strong brand equity as far as this product is concerned. Because every big wire and cable player, you name anybody starting From Phenolex to RR, cable to VGuard. Everybody has started their journey for building wire with our PVC compound to create a brand for themselves. So we see no difference in case of Ultratech and Adani. And that is why we are adding capacity. And those products are definitely delivering margin of 7% to 8%. So PVC blended margin might improve as our share for the building wire goes up once these two giants are there in the market.
Bhargav
Sir, in terms of xmp, is it fair to say that this FTA was viewing the competition would have intensified because the import duty on imports done by the UAE based compounders may have now become zero. So how are we tackling that competition given that we are also increasing the XLP capacity?
Rajesh Kothari
Yes. So here the duties have not gone to zero yet because they are going down with a fraction of percentage every year basis. That is one part. And secondly, the people who are supplying from Buru means uae, they are big giants and then their pricing is not driven by this duty advantage. Most of the time they will try to pocket this duty advantage for themselves rather than passing it on to the customer. So they keep on improving their prices wherever there is a duty advantage. So we have not seen that significant impact. The impact or intensity of the competition is mostly driven by the capacity addition by them.
So whenever, in say three, four years, whenever they come up with additional capacity, then we face a challenge for say a couple of quarters or maybe three, four quarters till their capacity gets absorbed in the market. So we do not see any challenge at this point of time.
Bhargav
And lastly sir, in your PCT you mentioned America as your focus area. So given the recent development on tariffs increasing to 50%, do we still continue to remain this as a focus area? If you can share your thoughts on that and that would be my last question.
Rajesh Kothari
So definitely USA market is a big market and it will remain our focus because today the challenge is that the cables which are being exported from India to US market, yes, those will face a challenge and that also for a limited period of time because people will find ways to retain that market because they have created this market for themselves with lot of effort. So people are working as we are talking to all of our cable customers. But for us the opportunity is in a different manner. Not only we are supplying to the people who are exporting cables to USA from India, but we are having US certification today we are having US certification for one product and two products.
Certification is there in pipeline. Maybe another five, six months that certificate also will come. So that will result into an opportunity globally for us. So we can supply to our product to a customer who is based in say for example uae. UAE has got a lower rate of duty while exporting to the cables to US market. So anybody whosoever is exporting cables to US market will become our customer. Only two challenges will be there with us. Our direct export to us will not grow till this issue is resolved. Second is that our proxy export via our customers in India.
Yes, that may see a bit of it for some time. But at the same time the opportunity will emerge from the other markets because those customers will come and buy from us.
Bhargav
Okay. Thank you very much sir. And all the way.
Arihant Bothra
Thank you.
operator
Thank you. The next question is from the line of Jyoti from LIC Mutual fund. Please go ahead.
Jyoti
Hi sir. Good morning. Congratulations. A good set of numbers. Hello.
operator
Yes.
Jyoti
So I actually wanted to know. First thing is on a total basis, if you can just guide me, what sort of capacity addition do we see for the next three years first and then what sort of ramp up in your total volume can we expect for the next three years?
Arihant Bothra
Can you repeat the second question please?
Jyoti
First is on the capacity addition and then how do you see the ramp up of those volume for the next three years?
Arihant Bothra
Sure. So I will address the first one. So as far as the capacity addition is concerned we are adding, when we talk about three years rising close to 15,000 plus tons of HFFR. We have already added 25,000 tons of PVC as a plan for this financial year. And if required we may add another 5 to 10,000 tons on the XLP front. On the cable, specifically the transmission and distribution part, we are planning to add close to 60,000 tons of capacity in this next one one and a half years time. And that may also increase to another 24,000 tonnes by next three years of time.
So on a consolidated basis we are talking about close to 1 lakh 30,000 plus tons of capacity being added. When you talk about the ramp up there are two different aspects to it. PVC is as sir explained due to the increasing demand expected, it will ramp up with the demand coming in. So it will be a gradual increase. While xlp, we already have a demand in place in India and the global market. So that will see a faster ramp up as compared to PVC and hffr. So on a consolidated level we see that average utilization would remain above 75 to 80% on a consolidated level.
Jyoti
Got it. Okay. Secondly on the margin front, so when we talk about the different KVs. So right now first if you can guide like Any idea on what sort of the basically of 6kV will have, what sort of contribution towards the revenue? And so how do you determine the margin based on this KV? So can we expect it to expand beyond 11 also after a given point of time? For example, when your 32 KV comes in? So can we expect that the margin in the range of 9 to 11 can go beyond 13, 14 or 15 also at any given point?
Arihant Bothra
Yeah, yeah.
Rajesh Kothari
Should I?
Arihant Bothra
Yes, please. Please. Yeah.
Rajesh Kothari
We are already doing a business up to 66kV. Okay. So the new product line addition which we are talking about is for 132kV. And definitely margins improve as we go higher for the voltage rating. Say 1.1 KV product will have the lowest possible margin. And then as you grow from 1.1 to 11 more than 33 and then 66 KB, then your margins will continue to improve. And then over a period of time product gets bracketed rather than individual voltage rating but in a bigger range. Say for example Today there are three categories. I would say one is low voltage, that is products which are up to 1.1 KV.
Then the products which are called medium voltage, they are product up to 36kV and the high voltage which are product for 66 and 72kV. So every segment will have a couple of percentage better margin as we go up higher. Now the margins which we are earning today is a blend of margins we get from the lowest end of the product and the highest end of the product and as the volumes will grow. So our projection is not assuming that volume will grow only on a high end segment. In fact, volumes are higher at the lower end of pyramid.
So volume growth will come from all the segments. So even if we are selling more quantities of high value added product at a higher end, at the same time we will be selling more product at the lower end of the pyramid also. So blended margins you will not see much of a difference than where they are today. But at the same time, the introduction of high end product more and more in our product range and achieving higher volume there would basically protect us from loss of our EBITDA margin because of the growth at the lower end of the pyramid in the volumes.
Jyoti
Got it, Got it. In terms of capex for this 32, 132. What sort of capex is there for this one?
Rajesh Kothari
No, we already have our equipments ready which can 132kV. So we are whatever the capex which we are planning, they are not specific to any voltage rating because equipment and the machines are such that they can produce anything starting from say 33kV up to 132kV in the same setup.
Jyoti
Okay, Any guidance for the quarter two? How do you see the. Can we see some sort of even better margins what we did in Q1 because Q1 was already good. So can we see improvement in Q2 or it will be at par.
Arihant Bothra
With the current situation? We see that it may remain at par because monsoon season generally quarter two remains a sluggish for us. So as of now we are seeing it at part.
Jyoti
Okay. Okay, that’s it from my end. Thank you so much sir, and all the best.
Arihant Bothra
Thank you. Thank you.
operator
Thank you. The next question is from the line of Arnab Sakhruja from Ambit. Please go ahead.
Arnav Sakhuja
Hi, thank you for taking my question. So with regards to the crude prices. So the crude price movement had been a bit volatile this quarter, especially towards. The end of Q1. So I just wanted to ask, has this impacted our performance in any way or not really?
Rajesh Kothari
Ariad, please.
Arihant Bothra
Yes. So if you see the crude prices in India, it long ago got delinked as far as the crude prices and the demand and supply situation is concerned. So the polymer prices are mainly driven by demand supply. And if you see the last 10 years there have been a lot of capacity addition by all the petrochemical players in terms of polymers. So in India it is more driven by demand and supply. However, there are different processes of each different layer and different raw metal inputs. So when the global prices move, as far as the polymer prices are concerned, marginally, the prices move here as well.
So when we talk about the base prices of selling price Moving up by 50 basis point, we mean that there has been increase of raw material prices by that account and that has been passed down. That is why the average EBITDA comes low. But the percent per ton EBITDA seems to be better. So I just wanted to mix two things to make you understand how things look at our end as well. Right.
Arnav Sakhuja
And my next question is. So I think someone had asked with regards a question with regards to the Capex over the next three years and you had mentioned that it would be 130,000 tonnes. So if you could just repeat the broad breakup of this, that would be useful.
Arihant Bothra
Yes, yes. So HFFR, we have committed another 15,000 tons. PVC, we have already committed 25,000 tonnes and there may be additional 5 to 10,000 tons as well. XLP, we have committed for close to 60,000 tons and another 24,000 tons can also be possible.
Arnav Sakhuja
Okay, thanks for answering my question. Yeah.
Rajesh Kothari
Thank you.
operator
Thank you. The next question is from the line of Guru Darshan from Kikara Capital. Please go ahead.
Guru Darshan
Thank you. Congratulations. Very good set of numbers. Sir. Our volume growth is around 12 to 13%. But overall EBITDA growth is around 22%. Most likely is due to lower base which is around 14,000 per ton in Q1 FY25. Going forward, will you see the same kind of EBITDA growth or will it be in line with the volume growth which is around 13, 14%?
Arihant Bothra
We see it’s in line with the volume growth because EBITDA as we have continuously mentioned that we are targeting it to maintain our 15 rupees. And it will be in the range of broader range of 15 to 16 rupees. To be very precise, I can say so it will be more driven by the volume growth from here.
Guru Darshan
Understood? Understood. But when you say the realization growth by 50 basis points or 0.5%, are you refer, Are you saying that you know we are charging more for the same product or like.
Arihant Bothra
As we have explained earlier, also when the raw material prices goes up, we have to pass on the similar prices to our customers. Maybe that is why if you see on a continuous basis, our EBITDA margins, irrespective of the movement of raw material are on a continuous basis on a stable levels. So from that perspective, when we talk about selling price going up, that means the raw material prices went up and that has been passed on to the customers.
Guru Darshan
So essentially, since we follow costless model, the EBITDA turn will remain around 15 to 15.5 rupees, right?
Arihant Bothra
Yes. Yes.
Guru Darshan
And in Q1 finance cost was around 5.5 crores. Could you explain what exactly is included in this figure? And what would be the quarterly run rate of finance costs going forward?
Arihant Bothra
On a net basis, our run rate is around 4 to 4 and a half odd crore. When you see 5.5 odd crores, it includes processing fees of close to 2 odd crores. And normal other cost of balance, 3.5 odd crore. Now since we are already borrowing and investing in mutual funds and FBs, so the income from those are reported in the other income which is close to 1.5 odd crores. So when you talk about the net interest income or interest cost specifically, it is net cost is 4 crores approximately. So that is what our target on a net basis is around four, four and a half out crores.
Guru Darshan
Okay, understood. So regarding the end user industry, so there are multiple variants, right? Power cables, housing wires, communication cables, implementation cables, specialty cables and all which of These, you know, sub segments do we currently participate and where do you say the majority of the future growth coming from? Could you please elaborate on the opportunity we have?
Rajesh Kothari
Yes, you can go ahead please.
Arihant Bothra
So. So there are three broader areas according to me you can add to that. So one is the housewaring. As Kotaji already explained that the demand is already there and with new entrants the demand will further go up. So this is an opportunity. Next is the power cables. So irrespective of the normal replacement demand, the new demand is also very strong. With new industries coming in with new infrastructure work going on. The power cable requirement is also going up and the biggest demand as we see is the distribution and transmission. 11:33 KV and beyond which we constantly are talking about increasing our capacities is the product where due to solar, due to infrastructure improvement, due to electrification of the entire country, not in India, in the global scenario.
Also this is a major driver of distribution and transmission cables which is I will say is driving the overall growth. So in terms of percentage growth contributing to the EBITDA, it will always be the distribution and transmission for the next three years. Whilst when we talk about the volume growth it will be driven by all the three products together. You can add if I.
Rajesh Kothari
No, no, you covered it fully.
Guru Darshan
Okay, so just last one question. You’re saying that you will add around 1 lakh 30,000 tonnes of capacity. Do you still wish to maintain 13 to 14% kind of a volume growth going forward? I mean at least for next three years? What kind of volume growth would we expect since you’re adding almost more than 1/3 of the capacity?
Arihant Bothra
Yes. So as of now for this current financial year the volume growth will be probably in the range, so similar range because we are already at a very high capacity utilization levels. Next year we may see, you can say a better percentage growth but that will taper down over a period of time. So when we see this targets of FY30 which we have set for us, this average cgr growth of 13 to 14% of volume growth is coming from that target. It will be initially higher, probably going down at a later part of the period.
Guru Darshan
Thank you so much sir. Congratulations.
operator
Thank you. Ladies and gentlemen, Please limit to 3 questions per participant and come back in the queue for a follow up. Thank you. The next question is from the line of Vignesh Ayer from Sequential Investment. Please go ahead.
Vignesh Iyer
Thank you for the opportunity. My first question is on the KFIX part again. So I heard you earlier that you said that few of the capexes are planned across you know, different compounds. So wanted to understand what is the total cost that we will incur over the period of next three years on this capex. And also the fact that do we have enough land parcels for doing the brownfield expansion or are we looking at acquiring newer land parcels or have we shortlisted any land parcel near to our, you know, existing facilities?
Arihant Bothra
So we have a total land layout of close to 300 plus odd crores against this capacity addition which we announced last year. Now when we talk about the existing land parcel or brownfield expansion we have partially some space available with us and we are looking for lands in as per the requirement of the project. So yes, we have identified few and we are in process of identifying more. It will, it is a continuous process because there are different products, different geographies also to be addressed because of our customer base. So it’s a mix of all, it’s a continuous process and we are into.
It.
Vignesh Iyer
Include acquisition of line and expansion, right? Both.
Arihant Bothra
Yes, yeah, yes.
Vignesh Iyer
Okay, got it. So and also one thing you know that I noted because since you said earlier as well that there are certain aspects of the other income that is actually operating in nature I would request you sir if you could categorize those income at other operating income, you know, as part of the financial statement. A lot of companies do that. So it gives you know, the investor a more clearer picture of what is the operating part of the other income and what is the normal, you know, treasury are getting from.
Arihant Bothra
Okay, okay. We’ll check with our auditors how comfortable they are on this declassification and accordingly.
Vignesh Iyer
Okay, so thank you. That’s all from us.
Arihant Bothra
Thank you. Thank you.
operator
Thank you. The next question is from the line of Bhavik Shah from Invexa Capital. Please go ahead.
Bhavik Shah
Yeah, hello sir. Am I audible?
Arihant Bothra
Yes, you are audible. Please go ahead.
Bhavik Shah
My first question is when you’re saying you waiting for approvals for 132kvv so my first question is why will customers switch from its existing supplier? Are we more cost effective or is. It only based on the relationship which we have?
Arihant Bothra
Yeah, so yeah see this.
Rajesh Kothari
The customer will switch over to a new supplier because of various reasons A today they are fully dependent upon imports so they would always love to have the localization because the demand for 132kV is not as consistent and as planned as it is in case of a lower voltages up to 36. So it is all tender based and certain times you are having very good demand. In few months you have a drop in demand. So you to Manage your supply chain well in time to support the demand emerging. You always need to have a local supplier.
That is one part. Secondly, if you don’t have any alternative to imports, you many a time end up paying very high premium. It has seen in past in all product categories. Our Indian cable customers have benefited immensely. Not only Indian but overseas customers who are buying from us regularly. They have benefited immensely by having a credible supplier like Devplastic in their portfolio so that they are able to get reasonable prices from their other suppliers. Just for example, when we say that why a customer for 132 KB’s switch to another supplier like Geoplastic. I’ll give an example.
Say UAE is a place where the brews place they have their plant capacity and they are having some duty advantage over us. Despite that the customers who are based in UAE preferred continuously to buy certain quantity from us. And also during the challenge of the COVID when supply chains was thoroughly disturbed, the people who were sitting in Dubai were not able to serve the customers of Dubai or Oman or say Egypt and the supplier like their plastic served their needs. So everybody need to diversify their supply chain so that they do not suffer shortage of material or the price source.
Understood sir. And my second question is when we say the Anthra Tech and the Adanis will come up with the capacity, have.
Bhavik Shah
We spoken with them or are we confident? How are we so confident that we get the orders from them? Or is it like we are having some monopoly in the market which will eventually lead us to getting some orders from them?
Rajesh Kothari
It is not monopolistic situation. Definitely we do not have monopoly on those products. But see every product gives you an indirect monopoly. Is that kind of the trust somebody would have on your product? So whenever somebody is launching a new product for building wire starting from the phenolix which was 27 years back, so starting from Finolex, RR Cable, VGuard, KEI, Havels, all these guys, when they came for launching their building wire, the first PVC compound they bought was from their plastic or earthquake industries.
And later on they might have moved to other suppliers. But initial few years they have been 100% dependent upon us. Why? Because our product has got that capability of running at a high speed giving very good surface finish, consistent properties which have been proven over a period of time. Another aspect, just to give you a perspective, even today, whenever somebody is going for BIS certification for any type of their cable, initially they would prefer to buy material from. Why? Because they feel safe that yes, if we are buying these products, we will not face Any hiccup in BIS certification because product is above standard.
So this is the reason we are confident that these two customers also will be our customer for first few years. That is one. And with both of them we are already in touch. We do not have any firm rfq but we are having indication that they will love to work with us. Understood?
Bhavik Shah
No. So I asked this question because Adani is also coming up with a PVC capacity. So eventually they might also get into.
Rajesh Kothari
This product as well. So that was the rationale behind asking. Yeah, but their PVC capacity is far away. We do not see that PVC region coming up in next one or two years. This is what we hear from the sources.
Bhavik Shah
Understood, sir. Thank you so much.
operator
Thank you. The next question is from the lineup. Raj from AR Partners. Please go ahead.
Raj
Hello. Yes. Capacity expansion you I. I highlighted over next two to three years. So what will be your overall capex? Is that around 300 odd crores? We have already committed on this. And how are you going to fund. This unit of capex.
Arihant Bothra
As of now since it is a staggered plan which we have done so we are funding it from our internal approvals. And going forward if we want to expedite then we’ll look for other alternatives. But as of now we are doing it from our internal. All right. How much of the sales is from usa?
Raj
Direct and indirect sales.
Rajesh Kothari
Yeah, it is say the proxy export via our customers in India could be I think close to 100 crores plus.
Raj
100 crores plus. Okay, so overall sales to us is.
Arihant Bothra
Around 100 crores or so.
Rajesh Kothari
Means it is by our customers. We don’t export directly to usa. Our cable customers in India who are exporting to usa. So the product which we supply to them for the US market that could be close to 150 crores. I don’t have any precise number but. Okay sir.
Raj
Thank you.
Arihant Bothra
Thank you.
operator
Thank you. The next question is on the line of Jaydeep Taparia from IDPI Capital. Please go ahead.
Jaydeep Taparia
Thank you for the opportunity. So I wanted to understand the revenue contribution. 73% is from polyethylene and 10% from PVC. So the red 17. Could you just elaborate where this revenue comes from?
Arihant Bothra
So it comes from hffr. It comes from our EP engine plastic compounds and it comes from trading. That is the overall breakup.
Jaydeep Taparia
Okay. By successor after wires and cable and packaging industry. The rest 16% is from.
Arihant Bothra
Sorry, limit your voice. Hello.
Jaydeep Taparia
So revenue contribution from successor, that 16% that comes from.
Arihant Bothra
It is a mix of many segment. There is footwear, there Is automotive. There is FMEG segment. So it’s a mix of many segments all put together. So that’s why we are highlighting the major segment and there are then there are many other segments.
Jaydeep Taparia
Okay.
operator
Thank you. The next question is from the line of Saket Kapoor from Kapoor company. Please go ahead.
Saket Kapoor
And thank you for this. Hello. Congratulations for good set of numbers and also a revamped investor presentation. Most of the points, the outlook, everything has been covered very well in the investor presentation. And kudos to the team for representing. The best for us. When you mentioned about 300 crore capex that will take our capacity up by 1:30,000 metric ton by 2 030. That is what the capex for the ensuing four years we have outlined because 110 we are doing for the current year.
Arihant Bothra
One hundred and ten we are doing for the current year. Last year we did close to 60 odd crores and another few, the balance is planned for the coming couple of years.
Saket Kapoor
That means 110 plus 60 170. So remaining 130 is outlined for for the remaining four years or 300 is the remaining balance.
Arihant Bothra
So 300 is including the last year in the current year and we haven’t considered the capacity which I have mentioned specifically on the 10,000 and 24,000 tons which is optional. So if we consider that then probably another 100 odd crores need to be added. So as of now this 300 capex outlay is planned up to FY27. And if we talk about the 1 lakh 30,000 tons we may have to add another 100 odd crores.
Saket Kapoor
Okay. And going ahead sir, what is our current market share and what are we eyeing after commissioning of things at 2027 and by 2030 when we are eyeing a top line of 4,500 to 5,000 crore what would be the our market share? I think the segment wise it would. Be better to understand in the KV segment or a blended one. How should one understanding of the thing?
Rajesh Kothari
Yeah. So Ajahn, let me take this question.
Arihant Bothra
Yes please.
Rajesh Kothari
So so here the market share in each segment it is difficult to define but when we are talking about the growth. So we are looking at the opportunities which will drive us to achieve those numbers which we are projecting for 2030. So in that one segment is XLP compound. So today our products are having a product range of up to 66kV and that segment starting from 11 to 66kV our market share is one third of the total Indian demand. We are having 33% market share. Now this is an area where we see a significant growth opportunity for ourselves.
Why? Because A the Indian cable customers are adding used capacity in this product category, this segment. B by going up the value chain for a product which is capable of delivering insulation properties up to 132kV, we are attaining the capability to secure higher market share with all our customers for volume range up to 132kb. So this is a segment which I would say starting from 11kv to 132kb XLP instrument market where rather today it is 66kv and going forward 132kv where our current market share stands at anything between 30 to 33%. We want to take this market share beyond 50%.
So this is the biggest growth driver that is one second is HaloZone field frame retarding there we have multiple times in our earlier conferences also we explained that we see this market growing at a good pace which was close to 25,000 tonnes per annum. Kind of a market which we see with the natural progress, whatever it is showing at the moment should reach close to 100,000 tonnes per annum kind of I think by 2030. And there we are planning a capacity of 20,000. Already we have committed and we are anticipating probably we will add more capacity there.
So we will have much larger share in that market. Today our market share is negligible in that segment. Market is very small. So both the things will happen simultaneously. Market size will grow and our market share will grow. So these are the two product segment which will drive our growth.
Saket Kapoor
Right sir. Thank you sir for elaborating and giving. Us very good understanding for the solar cable partner. How are we classifying that incremental demand for our compounds? Specifically if you could just give the. Volume growth which we have experienced, how. Much would you attribute to the solar cables?
Rajesh Kothari
So see HFR demand growth, the key driver is the solar cable application. So if you look at our capacity starting from 5,000 tonnes and ending up at 25,000 tonnes by 2030. So it, it is the kind of five times growth in that product segment and majority will come from the solar side.
Saket Kapoor
Okay.
Bhargav
So HFR is the one that is, that is equitable. The growth is towards, inclined towards the. Solar cable growth only. That is what you are. Yeah, yeah. Major, major portion, major portion of it.
Saket Kapoor
Okay. There is a, there’s a specification for which will be used while the manufacturing of solar cables are needed.
Rajesh Kothari
Yeah, it is. So see halogen because there are many products which can meet the specification which governs the solar cable. But halogen free flame retardant is the Most optimum product which will deliver you right value at right price point covering all the properties which are required for solar cable application. Like to imperial say for example, for example weather resistance weather ability because the cables are going to stay in open environment for a longer period of time. Higher level of UV stability, higher level of flame retardancy safety against fire. So all these features you can incorporate in the most cost optimum way.
With halogen free flame retarget you cannot achieve the same through PVC or xnp.
Saket Kapoor
When we see other solar cable manufacturer they mentioned about E being cross linked solar PV cables. So are these the same or there are also various types of cable?
Rajesh Kothari
Yeah. No no. The cross linking mediums could be different. Okay. You can cross link a halogen free flame retardant cable. You can cross link chemically, you can cross link it by E beam. So we are having product which are suitable for both kind of cross linking chemical cross linking as well as EV in cross linking. So my customer, whatever way they are making the cable and cross linking it, we have the product and we are going to have the market share for that.
Saket Kapoor
And last point is that what would be the current capacity addition for the halogen fee? Regarding for this financial year and the next year?
Arihant Bothra
Yes. So if you see the current capacity we are already at 5,000 tons. Another 5,000 tons in process of installation. So that’s the balance will be done probably by end of the second quarter and will be ready with this capacity commercial. This is probably from the month of November. So you can anticipate that this year will be having. This will be. We will be closing around 10,000 tons of HFX part and in the following year we’ll be adding another 10,000 tons revenue contribution. Revenue contribution more or less by FY28. I’m anticipate.
Saket Kapoor
That is at 20,000 capacity.
Arihant Bothra
Yes, yes. Yes.
Saket Kapoor
Okay. Maybe 125 we can expect.
Arihant Bothra
Yes, yes.
Saket Kapoor
Okay. And. And the margins will be will be higher for this product. Higher than this?
Arihant Bothra
Yes, 15 are better.
Saket Kapoor
Okay. Okay sir. And lastly sir market currently existing all players who are manufacturing this shun polymer.
Rajesh Kothari
Okay. And there I think your IPO is due for them. So they are not the listed. They are privately held. Yes.
Saket Kapoor
Okay thank. Thank you. So this will be the value added product from which we will be eyeing further profitable growth and the incremental margin.
Arihant Bothra
That should be the understanding going ahead. Yeah, yeah.
Saket Kapoor
Thank you and all the best to. The team circle for sending up a good good show and good start to the financial. All the best.
Arihant Bothra
Yeah. Thank you. Thank you. Thank you.
Rajesh Kothari
Thank you.
Arihant Bothra
It is with this. I think the time is almost over now. I will request our CMD sir to give the closing remarks. Anyway, good afternoon everybody. So I thank everybody, every participant for their, you know, very effective and very relevant questions. I hope that our team has been able to answer all the questions the right perspective and everybody must have got the right perspective of the company. So thanks, thanks once again for participating. In this investors call. Thank you very much.
operator
Thank you. On behalf of Go India Advisors conclude this conference. Thank you for joining us. And you may now disconnect your line. Thank you.