Ddev Plastiks Industries Ltd (BSE: 543547) Q3 2026 Earnings Call dated Feb. 10, 2026
Corporate Participants:
Unidentified Speaker
Ddev Surana — Chief Executive Officer
Arihant Bothra — Chief Financial Officer
Analysts:
Unidentified Participant
Saloni — Analyst
Archana — Analyst
Bhargav — Analyst
Guru Darshan — Analyst
Guru Darshan — Analyst
Manan Poladia — Analyst
Saket Kapoor — Analyst
Presentation:
operator
Sam. Foreign. Ladies and gentlemen, good day and welcome to the D Day Plastics Industries Limited Earnings call. Participants are requested to stay connected. The conference will begin shortly. Thank you. Sam. Foreign.
operator
Ladies and gentlemen, good day and welcome to the D day Plastics Industries Limited Q3FY26 earnings 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 your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Saloni from go India Advisors. Thank you. And over to you, Ma’. Am.
Saloni — Analyst
Good afternoon everyone. On behalf of Go India Advisors, I welcome all of you to 3rd quarter and 9th month of FY26 earnings conference call of Dais Plastic Industries Limited today from the management we have Mr. Narendra Surana, Chairman and Managing Director Mr. Dave Khurana, Whole Time Director and CEO Mr. Rajesh Kothari, Whole Time Director, Mr. Aryan Botraj, Chief Financial Officer and Dr. Rakesh Tarwari, CEO Renewable Energy. I now hand over the conference to Mr. Dave Harana for his opening remarks and then we will open the floor for question and answer. Over to you.
Ddev Surana — Chief Executive Officer
Thanks Saloni. Good afternoon everyone. Welcome to the Dave Classics quarter three and nine months of financial year 26 earnings call. We appreciate your time and continued interest in our journey. Today our Board of Directors approved the financial results for Quarter 3 FY26. We are pleased to share with you our performance highlights, key developments and outlook for the future. As we enter 2026, India stands poised for robust growth bolstered by supportive macroeconomic tailwinds and proactive policy measures from the government and the to counter external headwinds. Strategic fiscal stimuli including personal tax relief and GST 2.0 reductions, coupled with multiple RBI rate cuts, liquidity injections, regulatory reforms and sustained capex momentum have eased monetary conditions and double digit corporate earnings.
Potential macro indicators affirm this resilience with real GDP growth surpassing expectations at 7.8% for first quarter and 8.2% in the second quarter while inflationary impulses remained well contained, providing RBI ample flexibility to stimulate further if needed. Thus, domestic tailwinds decisively outweigh uncertainties ahead. The proposed Capital expenditure of 12.2 lakh crore for FY27 up 11.5% in line with the nominal GDP growth highlight the government’s steadfast commitment to infrastructure modernization and sustained capacity building in critical sectors. Budget 2627 position positions Energy security, domestic manufacturing and long term system stability at the heart of India’s growth strategy. The emphasis beyond mere capacity addition to reducing import dependence, strengthening value chains and enabling forward looking infrastructure such as storage, digitization, nuclear power and CCUs.
The thousand crore allocation as viability gap Funding for battery energy storage systems will be pivotal in enhancing grid stability, integrating renewables more effectively and managing peak power demand. This initiative will curb reliance on fossil fuels and hasten India’s shift to a cleaner, more reliable and sustainable energy future. To effectively meet and exceed this escalating demand, particularly from the renewables and power sector, we are proactively expanding our geographical footprint to reach new markets and simultaneously broadening our comprehensive product offerings to better serve these growth areas. Building strategically on this overarching trend towards renewable energy adoption, we have made the decisive move to enter to the high potential sunrise sector of battery energy storage systems manufacturing.
The global energy storage market is experiencing rapid evolution and expansion strongly supported by ambitious worldwide decarbonization objectives and the accelerating integration of renewable energy sources across diverse geographies. This forward thinking diversification firmly positions Dave Plastics at the vanguard of the broader energy transformation landscape. To elaborate further on our best initiative, we will commence operation through an assembly business model with our dedicated greenfield plant scheduled to be fully operational starting in the second half of this year. This expansion will involve full capacity expenditure of approximately 150 crores in phase one, entirely funded through internal accruals and will establish an initial plant capacity of 5 gigawatts.
We will introduce this as a distinct new reporting segment and in the early stages we anticipate generating revenue in the range of 800 to 900 crores from just 1 gigawatt of battery storage capacity which is projected to contribute around 20% to our overall revenue. Now, despite global disruptions affecting export activities, we have demonstrated remarkable resilience and remain committed to achieving ambitious revenue targets of 5000 crores by financial year 30 with approximately 2025% of the revenue derived from exports. Here I would like to highlight that our export contribution increased in this quarter even against the backdrop of challenging geopolitical crisis.
Notably, exports grew strongly to 196 crores, almost 200 crores in quarter three of financial year 2026, which is 27% of our total revenue. For nine months. FY26 exports reached around 523 crores reflecting 33% year on year growth. Throughout the year our unwavering focus has been enhancing operational efficiencies, advancing cutting edge process technologies and strategically expanding our product portfolio to meet the evolving market demands. In line with this strategy, we have successfully expanded our production capacities in both halogen free flame retardant compounds and PVC compounds which are key material and critical to the cable industries. Notably, HFR compounds are poised to replace traditional PVC in housing wiring, house wiring and the government has now mandated the use in high safety public infrastructure such as malls, metro stations, hospitals, pools and other vital public areas.
While HFR also plays an indispensable role in manufacturing solar cables. Furthermore, PVC remains the most widely utilized compounds across the cable sector. With surging demand driven by the entry of cable two new major players like Adani and Ultratech, its market requirements are expected to rise substantially. We are therefore delighted to announce a significant new capacity additions. We have commissioned an additional 30,000 metric tons per annum comprising 5,000 metric tons dedicated to HFR and 25,000 metric tons to PVC, thereby elevating our total installed capacity to 10,000 metric tons per annum for HFFR and 69,000 metric tons per annum FOR PVC.
This expansion has been funded entirely through internal approvals at a cost of 50 crores and as of December 2026 installed capacity now stands at 2,68,400 metric tons per annum. It is also worth highlighting that Dave Classic stands as the only listed player in India engaged in HFR manufacturing, underscoring a unique market position. Looking ahead, we are also planning to further enhance the capacity in XLP compounds where we already command an impressive more than 33% market share. XLP compounds are gaining traction as grids and industries demand high efficiency and reliability. The global XLP cables market size was valued at USD 35.84 billion in 2025 and is projected to grow at a staggering USD 61.42 billion by 2034.
These strategic efforts have not only enhanced customer responsiveness and product performance, but also positioned us strongly to capture emerging opportunities in a rapidly evolving market landscape. Our capacity enhancement initiatives are progressing on schedule, aligning with the strategic roadmap that underpins Dave Classic’s growth momentum directly tied to the expanding wire and cable sector on India’s infrastructure development and the government’s substantial CAPEX commitments. The increasing emphasis on renewables, energy security and significant investments in transmission and distribution systems powerfully drive demand for our polymer compounds while more entering the industry further strengthens us given our unique position in the high entry barrier market.
Backed by a three generation legacy as a trusted supplier of leading to becoming the leading manufacturer, we have leveraged established relationships, proven product reliability and zero rejection rates that underscore our unmatched quality assurance and operational excellence. To drive greater efficiency, we are collaborating with stakeholders to reduce manual intervention in raw material handling and finished product packaging as well, building on the existing automation in packaging lines while exploring further expansions for higher productivity, lower cost and consistency. In FY26, we remain confident of surpassing the earlier guidance of growing on 10 to 12% CAGR basis demonstrating shared commitment, resilience and ambition to become a top quality polymer compounder to the world.
From India, I now hand over to our CFO Mr. Aryan Bhotra for his comments and remarks.
Arihant Bothra — Chief Financial Officer
Thank you Devji. Good afternoon. Wishing you all a very happy New Year filled with success and new opportunities. I trust you had the opportunity to review our results and investor presentation. We at DEV Plastics are pleased to report a positive third quarter and nine months results for FY26. As of nine months FY26 our production volume stood at roughly 1 50,000 tons while our capacity utilization stood at 81%. For the third quarter, revenue from operation reached approximately 733 crores representing a 11% YoY growth. EBITDA stood at 80 crores with a margin of 11% while PAT was approximately 48 crores delivering a margin of 7% for the quarter.
For the nine months, revenue from operations reached approximately 2,182 crores representing double digit growth of 17% Y On Y basis, EBITDA stood at 234 crores with a margin of 11 percent while PAT was approximately 147 crores delivering a margin of seven percent for the quarter. This performance was primarily driven by sustained strong demand in the wire and cable industry coupled with an increase in our average selling price. Export contribution also grew sharply with improved trade terms and negative alignment. The US Trade deal positions XLP compound industry for increased exports, scale efficiencies and long term demand growth.
We remain strongly confident in exceeding our earlier FY26 guidance with our goal of reaching 5000 crore in top line by FY30 firmly on track. Looking ahead, we anticipate this positive demand momentum will continue in the upcoming quarters and fiscals also. We now open the floor for question and answers.
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 one on the touch to telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Archana from IDVI Capital. Please go ahead.
Archana — Analyst
Hi sir. Thank you for the opportunity. I have few questions starting with the battery energy storage systems. So how we should look at this segment in terms of contribution to earnings from H2FY27. In the opening remark you mentioned that 800 to 900 crores from 1 gigawatt. But how we should model these numbers from let’s say H2, FY27 and 28 onwards. Also if you can help us to understand the operating margin profile once the business stabilizes. So that is my first question, sir.
Ddev Surana — Chief Executive Officer
Thank you. Archana ji. As far as FY27 is concerned we will start with in the second quarter, second half of this year. And we expect the volume to be initially lower side. However from FY28 the volumes will pick up substantially. Because initially there will be some approval stages and other alignments which will require some time for the teething issue will be there. So as Dev Ji has highlighted we are expecting the first year. The first gigawatt hour revenue to be around 800 to 900 crores. However for this financial year which is just a correction in the statement it is expected to be in the range of within 3 to 500 odd crores.
Archana — Analyst
And so 3 to 500 crores. Sir. Aryanji, you’re talking about FY27.
Ddev Surana — Chief Executive Officer
FY27. Yes.
Archana — Analyst
Right. And when we’ll reach this 1 gigawatt maybe FY28.
Ddev Surana — Chief Executive Officer
Yes. FY28 can be more than 1 gigawatt hour. Also he has just given a guidance that 1 gigawatt hour contributes close to 800 to 900 crores of revenue.
Archana — Analyst
Right. Aryanja, how should I model these numbers? Like. Like what? Where do we want to reach? Let’s say you know like two. Two gigawatt, three gigawatt by the. Let’s say 2030. Like if you can just help me with. You know that part.
operator
So. So. Yeah. Tiwariji is there on the call. Tiwariji.
Unidentified Speaker
Yes. Good evening to all of you. This is Rakesh Tiwari leading the renewable energy division at Geoplastics. And as our group CEO and CFO mentioned that we already launched our clean energy to manufacture our 5 gigawatt hour battery manufacturing in Ahmedabad. So regarding the 1 gigawatt is like a. How you. You want to understand the models and the terms of amount. A 1 GW is. Is equal to is thousand megawatt. And thousand megawatt multiplied by thousand in terms of the kilowatt is around 1 million kilowatt. Now the Current scenario if we are going to sell the BSS container or any BSS equipment which are available in India as a global market is the minimum one One kilowatt is a hundred dollar.
So now is the is our hundred dollar. One kilowatt is the current price by today. So multiply by one gigawatt is around 950 crore rupees. It if we are talking about one gigawatt and as mentioned our CFO and the group CEO we are make sure that is FY 2020. We will manufacture minimum one gigawatt hour BSS container in our factory based in Ahmedabad. And we are targeting to around more than 2 gigabyte. But practically we will supposed to deliver our first gigabyte in 2028. And expected revenue would be around 950 crore. Is the today current price, right? You spoke about reaching the 5 gigawatt. So that will be eventually. Let’s say how how many years you will take to reach that 5 gigawatt. Our is our our group target. Our internal target is the less than less than three years we will achieve is our 5 gigawatt hour. But practically practically and theoretically it is possible in our our initially we mentioned is it was mentioned 2030 to before 2030 we will achieve our 5 gigawatt hour complete solution. Because we are we are not going to only manufacture the content our BSS. We are going to further all this solution like a initially initially stage. We are going to manufacture 5 gigawatt hour BSS plant in Ahmedabad and projects. We are also launching our project solution like EPCs EPC with the solar and EPC with the stand alone.
So we are providing the our containerized BSS solution as well as we are going to make our make make the project in inside the our country. And we are also targeting the fewer getting any any tender out of the India. We are also targeting to complete this project right? Tiwari if can help us understand who are the current players in this segment. Now in the domestic market is the current player. If you are talking about the current player there is no such a manufacturer having the automatically. Yes few players is already enter like a JSW and page Digitech and other they announce and they just announced but still on the ground labor like us. Because the we already we already decided to buy the line. Our line will be installation start from the month of June and July. So we maybe we will be is start our production from August onwards. Others may they they announcement Prismatic because the cylindrical lot of players there but Prismatics I think so 3, 434 player like JSW and page digitic etc.
Arianji now since we are entered into this space so would you like to upgrade our 5,000 crore net sales target by 2030? Like I’m sure this number will be like way more than 5000 crore now. Definitely but as of now this 5000 is which we are projecting is from the existing line of business Correct. We are not giving any separate guidance for best project it will come in the following quarters as of now the main is from the existing business sure.
Unidentified Participant
Sure and now coming to this maybe you know again I’ll come back in the queue One more question on this capacity addition FY20 already spoke about what about FY28 and maybe CAPEX for that will be helpful.
Ddev Surana — Chief Executive Officer
See everything is in. You can say in pipeline the number and the details cannot be shared immediately but definitely you will see by next quarter a lot of details are being published or revealed so as of now I will stick to the numbers which we have already disclosed regarding the PVC. And HFFR part sure sir thank you.
Unidentified Participant
So much and all the best sir. Thank you thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone the next question is on the line of Bhargav from Ambit Asset Management Please go ahead.
Bhargav — Analyst
Yeah good afternoon team and thank you very much for the opportunity so my first question is on the best project so just wanted to understand that who will be the customers we would we be supplying to the EPC players and secondly would this be more of a domestic business or you’re looking at export opportunity as well.
Ddev Surana — Chief Executive Officer
Yes yes yes I can. I can give the answer sir one by one is like regarding it we start about the who will be the our the customer customer is decided two parts one is the government one is the semi government if you are talking about the government and semi government there are around 15 customer is like if I’m just giving one example like a Sevn, ntpc CBDCL PGCIL these are the player who will direct who will direct buy from us DC plus AC both they are not going to separate they are not going to separate only DC container they will buy complete solution so these these will be the direct our customer and if you are talking about the private customer so private customers private customer Lot of private customer is there like Ace Rainy Tech Bonada Enrich Energy 4th partner in Solare GSP Project Kalpa Power Kintech Krishna Carp Limited LNT MKC Infra Infrastructure Limited NCC Limited NTPC GE Power Opera Energy Pratap Technologies Pro Green Race Power Infra RS Infra Project SA Green Solar SPML Sterling Innovation Select Energy Jet Work Manufacturing Jewry.
These are the, these are the customers where this customer already won the tender and they are also participating the tender because they are expert in epc. So we are targeting, we are targeting to directly with the 30 customer to sell our DC part of containers and we are targeting four to five government projects where we will supply DC plus AC BT energy storage system direct to the government of India. Thank you so so much.
Bhargav — Analyst
And sir, is this business also going to be working capital intensive? Because the many of the names you mentioned essentially refer to PSUs. So if you can highlight on that part as well.
Ddev Surana — Chief Executive Officer
Yeah this project, these types of project are very high working capital inclusive and our CFO Mr. Arihant will also explain about these things. But these are the very high working capital intensive.
Arihant Bothra — Chief Financial Officer
Just to add to it that in this business the major role is of procurement and processing than the supplies since there is a limited supply available in from the Indian context. So the main working capital requirement is towards procurement from the raw material part as well as processing time. So probably as said definitely working capital requirement is high but that is more towards the supply chain management.
Bhargav — Analyst
So in terms of number of days would it be fair to say about four to six months of working capital investment will will be there?
Ddev Surana — Chief Executive Officer
No, not exactly. It is not the way which we are looking in this. We are looking towards 60 to 75 days at max to start with wherein we are, we will be the suppliers to them and when we think of going to the next stage when we will be tying up with the government agencies or supplying them directly then probably this will change. But as of now to start with we are targeting a limited cycle.
Bhargav — Analyst
And does this business also benefit our conventional business? Are there any synergies?
Ddev Surana — Chief Executive Officer
Yes, if you see the ultimate beneficiaries to some extent are similar maybe NTPC power grid or any other big player who are ultimately consuming the cables and this best containers both are same. Secondly we being aligned with the power cable industry and power industry there are a lot of commonalities whether that is solar as an additional requirement or a regular transmission and distribution line. So this is just to keep up with the. You can say storage of power to make sure there is no loss of power. So that is something which we are addressing. As of now we are supplying cables for transmission.
Now we are ensuring that we will be helping them to restore the wastage of power.
Bhargav — Analyst
Okay, thank you for the clarification sir, my last question is that if you look at the domestic revenue growth, it’s closer to about 13% for nine months. So now that the US tariff deal has been sorted and we were sort of impacted indirectly because of the deemed exports, what kind of visibility do we have now? Is it fair to assume that this revenue growth should pick up the domestic.
Ddev Surana — Chief Executive Officer
If you don’t mind, can you repeat your question? We lost your voice in the interim.
Bhargav — Analyst
Sir, I’m saying that our domestic revenue growth was about 13% in nine months. And that was impacted because of the US tariff as well because we are a deemed export beneficiary. So now that the tariff seems to have been resolved, is it fair to assume some pickup in this growth going forward?
Ddev Surana — Chief Executive Officer
I will request you to add. Yes, yes, yes. We are very confident that this growth should pick up now because last six months, say starting from August, it had been a very difficult period because we have seen some recovery coming back in the month of November. But again it dropped by mid of December again. So now we are getting clear signal from our customers that all uncertainties are behind us. So they will approach the American market aggressively. And we being well prepared for that because we are the only company in India holding means having the right product for that application and also having the US certification because we are already listed for one product.
Already listed for two more products will be listed during the say FY 2627. So as early as it will start from June 2026. So we’ll definitely get benefit of that and we’ll be able to capture greater market share in that area as well.
Bhargav — Analyst
Great sir, thank you very much and. All the very best. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone. The next question is from the line of Guru Darshan from Kitara Capital. Please go ahead.
Guru Darshan — Analyst
Hello, I’m audible.
Ddev Surana — Chief Executive Officer
Yes, good afternoon.
Guru Darshan — Analyst
Yes, thank you for the opportunity. Sir, just on the margin front, during the quarter we have seen around volume growth of around 10% by the EBITDA has been 7%. Could you help me understand key factors that led to this divergence like decline in EBITDA margins. Ebitda per kg for the current quarter.
Ddev Surana — Chief Executive Officer
I don’t know how you’re calculating the numbers. But as for my calculation, the EBITDA per ton has moved from last quarter by almost 150 plus rupees, rather close to 180 rupees. And when I compare the similar for nine months also there is a growth of the positive growth of almost 570 rupees. So probably if you can just elaborate. What.
Guru Darshan — Analyst
What has been the volume growth for the current quarter?
Ddev Surana — Chief Executive Officer
Yes, just a second. So in the current quarter the volume growth as compared the volume sold growth as compared to the previous quarter is close to 6%. And when I compare the similar number on Y. On Y basis the number is at close to 6%.
Ddev Surana — Chief Executive Officer
Okay. Okay. So I got the volume growth wrong. Yeah. Just on the best initiative. Just to clarify my understanding, your current plan is to focus on assembly. Where you import battery cells. You integrate into modules or battery packs followed by containerization. Right along with our electronic CMS safety systems and all that. Yes. Yeah. Yeah. My question specific to. Mr. Dev Surana, given this is a new business line for the company. Could you help me understand how you’re building execution capabilities? And also don’t you see any growth opportunities or investment opportunities within the existing, you know, specialty chemical compounds we operate in?
Ddev Surana — Chief Executive Officer
Thank you for your question. See, the answer is simple. We want to be one stop solution. To provide as many solutions as possible in the power and transmission sector. So while our current existing products have. Sufficient growth drivers and is well poised for the next five years. So getting into the battery energy storage sector and essentially entering the renewable sector directly is also aligned and synergistic with the existing operations. So the key in that is the procurement, the processing. Again it’s a very technical product. So nowadays most of the people are just assembling it. Just buying and assembling it. Essentially they are traders. But we have the technical backing and the right components to provide the right service. So it is actually very well aligned and synergistic with the existing products. Could you.
Guru Darshan — Analyst
Could you expand on the technical backing you just mentioned?
Ddev Surana — Chief Executive Officer
I think Tiwariji can explain you better that. So Mr. Tiwari, if you can help. Mr. Guru.
Ddev Surana — Chief Executive Officer
Yes. Yes. Yes, sir. Yeah. Yeah. So let me reply sir, about the technically things. The. The first important things, why BSS demand will be very high in India. Solar and wind are intermittent. Now. Right now the grid cannot handle sudden fluctuation. So BSS is the only scalable solution for balancing variable renewable energy. So regarding the technology selection, we had selection. We had selected our. The automatic lines. The automatic lines means we will just buy the lithium cell and the lithium cell configuration from 314 Air as well as 587. It is called Very High Quality LFP Cell and Prismatic cell.
We will. We will buy just only LFP and we will make our sell to battery and battery pack and pack to container. So Based on the technology we are not. We are not going to buy just line tools to make this battery and the pack and our container assembler. We are buying the all these equipments which can be ensured that whatever we are importing the raw materials they will check 100% in surety that the our all the LFP sales and the pack and the cables and BMS must be checked before start the production and the during the productions.
Each and every equipment have the testing inside the facilities. They will check each and every parameter like open circuit voltage, IR insulation resistance and safety precaution for the all this BMS and BMU during the our manufacturing process. So we just. We just. We just not only just our group CEO mentioned that we are not just only to have starting only manufacturing assembly line. We ensure that the reliability of products because the our base battery energy storage system life is the more than 15 years. So currently 6,000 cycle. But in future we are going to provide 10,000 cycle.
It means greater than 15 years. So how we will ensure. Because we are. We are buying and we are set up. We are set up our reliability lab inside our factory. So we will. We. We already have a highly technical person and presently. Presently I’m in a China exploring this these things right now. So that we are. We are make sure that the every products importings from importing to the dispatch content container disposal customer each and every parameters. We will test it by ourselves. So it’s like a day to day is like a process test, quality test, incoming good inspection test as well as reliability test.
In terms of reliable tests. We are not going to compromise anything in terms of safety in terms of life cycle. And we are. We are going to get all this international certificate which are ensuring that our product is 100% is perfect before launching our product in the India market as well as global market. So from first day we are going to apply IC certificate and UL9540A which are period typical components against the battery energy storage system. So from start from basic to the end of the end of the life UL test we will conduct all the tests in house as well as if some test is special testing requirement by the customer we will do by third party.
So our line is capable. Our line is capable to handle the 314 years as well as the longer cell in the future also. So at least 10 years our line can be compatible to run the BSS prismatic cell from 5 megawatt hour container to 10 megawatt hour container. Our we we are. We are not only this we are not only the manufacturer in India but we already have the some technical tie up in China as well as other countries also we are going to have some technical transfer with other countries. So make sure that whatever we are going to make battery energy storage system.
Because inside the battery energy storage system lot of technology is involved in like a pack. Inside the packs is the cells and with a BMU battery management unit system. So we. We are. We are setting our factory with a global standard. And even beyond the global standard, each and every parameters checked inside our factory. Sir, please. If you have any questions sir, please let me know.
Guru Darshan — Analyst
Understood? Understood. Just last one question I have. You have indicated investment of around 150 crores in this business. I believe even the working capital will be much more than you know 150 crores. Just want to understand what your internal calculations you’re expecting. Roce or return on investment you’re expecting and the payback period.
Ddev Surana — Chief Executive Officer
Yes, yes. Yes. Thank you. So. So we are expecting that the working capital will definitely be comparatively higher. But the major working capital utilization will be through non fund based and the fund based side. Secondly this 150 odd crores includes the CAPEX and the margin for working capital requirement put together. We expect that the payback will be in the range of two to three years of time for the capex. Whilst ROCE we are expecting in high double digits in the range of 25 to 30%. Since lot of players are entering to this space.
Guru Darshan — Analyst
Don’t you feel pressure on the realization on the margin front?
Ddev Surana — Chief Executive Officer
Yes, you are correct. See what what where we are coming from. There are two, three things which I wanted to add to what diverge you said one best is a tailor made solution. It is not a standard solution. Every customer will need a different design and different requirement. And accordingly you have to come up with the design. Why? Just for the example. Like it’s similar like cables. When you have an installation in location. Like how there is a marshy soil which will require a different build. Whereas if you’re coming to say somewhere like Rajasthan where the desert you will require a different build.
So that. That is one part. Second part is your temperature profile. If you are applying this container in the Gujarat or Raisin areas definitely there will be comparatively higher temperatures as compared to the other part of the country where like east where the temperatures come down with regular monsoon rains or pretty monsoon rains also. So it will be a mix of lot of things. You have to. We recruited a lot of technical people to take him ensure the power connection systems, the battery management System, the temperature cooling systems and fire management systems, everything put together.
So though what it seems from a distance that it is comparatively assembly business, it is much more complicated when you go deeper into it. So from that perspective, definitely you can see from an outside area that there will be challenges or in terms of pressure in revenue per unit metrics. But given the demand supply situation and given the complexities involved, we feel it is not visible for the next three to five years of time.
Guru Darshan — Analyst
Understood? Understood. Thank you so much. All the best. Thank you.
operator
Thank you. The next question is from the line of Manan Poladia from MKP Securities. Please go ahead.
Manan Poladia — Analyst
Thanks for the opportunity. So my question is with relation to the best segment. Since it’s a new line of business for us. I’m just curious how the management thinks of capital allocation in the context of our current business and this business. And just if you could clarify what sort of capital long term we invest, we intend to invest in this business. I think that’s the gate.
Ddev Surana — Chief Executive Officer
Yes. So as far as the capital allocation thought process is concerned, see our first objective priority remains the compounding industry. Where we are already expanding. We have already done few expansion and we are already expanding on multiple fronts. When this is done, even we are planning to consolidate few of the units in the western part into a bigger unit. All this allocations are priority. After which whatever excess cash is available with us, we are planning to get into this new business. This is point number one to address your capital allocation thought process. Second, when you see the comparatively high working capital or whatever scenario is concerned, see we have sufficient limits which are lying idle today.
So it is not that we are going to borrow afresh. It are the limits are already in place and it will be utilized for this business also. And as far as the you can say business profile of margin is concerned that we have already discussed.
Manan Poladia — Analyst
Right sir. I understand. Thank you.
Ddev Surana — Chief Executive Officer
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. The next question is from the line of Saket Kapoor from Kapoor and company. Please go ahead.
Saket Kapoor — Analyst
Yeah, Namaskar sir. Hope I’m audible.
Ddev Surana — Chief Executive Officer
Yes, Namaskar. Saket ji.
Saket Kapoor — Analyst
Yeah. Firstly, in terms of the new opportunity where we have now taken a very strong big step in best, how are the realization fixed means? What? What factors? When. When we are taking this revenue potential or the revenue which we are giving, what are the factors that will affect it? And in today’s context, how are these formulated? Firstly that if you could just give some color on the same.
Ddev Surana — Chief Executive Officer
Sake as Tiwariji highlighted just few minutes back that today roughly 1 gigawatt hour is being sold at the containers for one bigger tower base is sold at roughly 950 odd crores. We have considered a conservative turnover of 800 to 900 crores for the same. So that is from that perspective the numbers are being calculated on the basis of prevailing lithium ion prices on the global market and that is what the base remains every time. For arriving at the right best price it were comparatively higher few months back. It has now liberalized a bit and we hope that it is now getting stabilized because a lot of technology is being involved and upgradation work is being happening.
Like Tiwariji highlighted, we our machines are having capability from 314 kilowatt hour to as high as 600 close to 600 kilowatt hour. So globally these technologies will keep on upgrading and accordingly the prices will adjust. The lithium ion price may not adjust but per kilowatt price will actually drive the overall selling price. So we have calculated our turnover based on that and the first full financial year considering 1 gigawatt hour of sales. From this perspective.
Saket Kapoor — Analyst
And said to promote this exercise are the is the government also providing us any incentives or any metrics that is coming into play in our the CapEx that we have factored in?
Ddev Surana — Chief Executive Officer
No, no no. So what happens in this business is the the project announced by whatever agencies, whoever is a company probably government or non government there is a viability gap funding which is being given to them because the implementation cost versus a viable cost of project. There is still a gap because of the raw material and other things. So government have already allocated thousand crores specifically for the current coming financial year for this earlier also they have given a lot of viability gap funding for the existing projects which have been announced. So we see that this will continue for some time till the time there is entire ecosystem being developed in the country.
So from that perspective no direct incentive is coming to us but definitely to the industry it is coming making it viable to set up this project and consume or you can say retain the energy which is getting lost today.
Ddev Surana — Chief Executive Officer
Right. When we look at our addition of capacities it was in HFFR and pvc. So how will these additions impact the the EBITDA per turn number? Because I think these are mostly HSFR is especially specialized but PVC compound would be the commodity part only or the low margin. Correct me there that how will the EBITDA trajectory shaping up with with the capacity addition that we have done.
Ddev Surana — Chief Executive Officer
I will request you to address. See on PVC I. I would recall the last CON call there we highlighted that our capacity addition is driven by the demand, anticipated demand which we from the entry of Ultratech and the Sadani because both of them are entering in the power cable and wire segment and the first task or first objective they are taking is to attack the wire segment because both are backward integrated with the copper availability so they will go for house wiring. And within our portfolio of PVC the house wiring segment gives us better margin. So when we are adding capacity, the capacity is basically being added to serve the demand which will come from people like Adani and Ultratech for building wire where we anticipate better than the average margin.
And last quarter also when we were having a discussion it was clearly visible that we are improving margin on PVC business. Second part of is that as UL we are having XLP product UL certified which drives our margin towards margin enhancement. Same is possible with PVC based product also because there are many applications, many product which go for UL approved cables with the PVC application. So for that we are already working one such tie up. We already arranged with UL laboratories for the certification and once that certification is achieved which takes around six to eight months time, we’ll be able to add some high margin product to our portfolio of pvc.
So we’ll on average we’ll improve our margin with new capacity of pvc.
Saket Kapoor — Analyst
Okay, so when we. When we hear your customers they are also looking for backward integration in terms of this compounding exercise so that they also want to maintain their margins also and also on the, on the, on the raw material aspect for them. So what is your, what is your current understanding sir? The term with your customers. How, how are. What percentage of your customers? So if you could just give some.
Ddev Surana — Chief Executive Officer
Backward integration will always remain a attractive proposition for any customer as they attain scale they will try to go for backward integration but it is not a easy task and it is not a philosophy which has come say just last two years back or one year back or two quarters back. This is a philosophy which is there in place for multiple years. But doing the backward integration is not that easy as we have been explaining in multiple of our calls that commodity product like PVC for in house congestion for power cable, even for building wire.
Yes there a backward integration is a possibility because it is easy product, easy to process. Not much of IP is involved and not much of Capex pattern is involved. So yes there are lot of people have gone for backward integration and as the people attend size they will go for backward integration. But on The XLP side there are products which are low voltage which are I will say commodity product there yes, people can go for backward integration but going for specific and specialized product where a lot of intricacies are involved there it is not possible for most of the customers to go for a backward integration.
In India I will say that today, even today the many people have gone for backward integration those are still buying large quantities from us the very same product which they are producing themselves. So our expertise of providing the solutions to new problems. Because cable, every time you are having a new specification, new requirement and when you are addressing a new market, then people who are doing the in house compounding, they can make commodity but they cannot make products which are required for specialized application. They do not have that know how how to produce. For example, if you have to put a cable in a marshy land of cuts off run, ok, and what kind of jacketing compound will be required there for that? You need to have that kind of understanding of polymer and chemistry to design and develop a product.
They cannot do it. So we are having enough opportunity for these segments where we will continue to grow. And the proof is there that the many people are doing backward integration for last five years they are producing their own compound in various segment. But still we are growing continuously and will continue to grow because there are additional segment challenging segment where our expertise will keep us ahead.
Saket Kapoor — Analyst
Right sir, and since we have added capacity in the last quarter and utilization levels I think you have mentioned at around 80%. What would be the exit utilization levels for us for the this year? The average. How will that move up for quarter four and then for next year the trajectory.
Ddev Surana — Chief Executive Officer
We are expecting the average utilization to be beyond 70% on overall basis even after PVC and HFFR addition. Overall, given our existing trajectory which we have already announced earlier, also we expect this year to be closing somewhere in the range of 200 to 205,000 metric tons which is probably if you see out of 268 it is more than 70%.
Saket Kapoor — Analyst
Correct. And the EBITDA button basis is likely to be in the same trajectory? I think so. The RM prices have also slightly moved up with the variations in the crude oil prices. So are these EBITDA per turn numbers sustainable for us going forward also?
Ddev Surana — Chief Executive Officer
Yes. See if you see the EBITDA per ton for this entire year though there has been a lot of volatility in this financial year for the nine months. And if you see the first three quarters, the trajectory has been on the positive side though marginal every quarter around 150 to 200 rupees of growth is there but it is on a positive side. So we expect the average which have reached almost 15,500 rupees which was our overall target between 15, 500 to 15, 600 is there and last quarter always remains comparatively better. So we see a positive trajectory for the last quarter also.
Ddev Surana — Chief Executive Officer
Okay, so because two years earlier when we started the call for the fourth quarter there was some discounting from your. That was one of special quarters. Yeah. So that will not. I think so that that anomaly you have already corrected for. See that happens as it has been explained earlier also that happens only when there is a disruption in the positive side and that has been absorbed for that particular year. Now for the next financial years it becomes a regular phenomenon. There is no new disruption.
Arihant Bothra — Chief Financial Officer
I’ll just add to this to clarify. The disruption that year was in form of entry of HMEL with a additional capacity in the second half of the year. So the discounts which came as a bonanza in last quarter were not anticipated in the first or second or even third quarter. So now there are no such new entrant at this moment. So we do not see any such disruption.
Saket Kapoor — Analyst
Okay sir, thank you for all the elaborate answers Sir, I’ll join the queue. But the dividend payout sir, as on the merit of the board we would be as investors would like to understand sir why the payout of 0.50 when we have posted EPS of 14 rupees for nine months. What was there and how have they deliberated on on this 5 crore rupees payout to investors as interim sir, very small point and I am joining the queue sir.
operator
Thank you. Thank you. Participants who wish to ask a question and one on the touchstone telephone. The next question is from the line of Murtaza from Pinpoint Capital. Please go ahead.
Unidentified Participant
Hi sir, good evening. Am I audible? Yes, you’re audible. So I had like just two questions. First of all among the top wire and cable clients, I just wanted to understand whether the growth is coming from more new client additions or is it deepening of wallet share with the existing customers. It is mix of both.
Ddev Surana — Chief Executive Officer
Is it quantifiable?
Unidentified Participant
A little like vaguely, not specifically quantifiable immediately for me but definitely it is coming from both. We are adding customers both in the international as well as the domestic market. Whilst the existing wallet share from the top few customers remains constant. Where we have a target by in next two years we want to increase our wallet share there as well. Kothari ji can add further yeah.
Ddev Surana — Chief Executive Officer
See as Ariand has rightly said that the growth is coming from both these areas. Addition of new customers and increasing our share with those customers, existing customers. Because as we are adding more product, higher end product and as we are getting the approval with our existing customer for those two product, our market share, our share with those customers is growing. Say our recent expansion plan, we are going to add more capacity for say hffr. So as we are adding capacity for hffr, our market share is increasing with our existing customers. At the same time we are finding new customers, same will happen with the product for 66kV XLP.
Also that as we are getting more and more approval, as we are adding more and more capacity, the existing customer will also part with greater share of their business up to 66kV XLP insulation. Similarly, we will be able to get new customers consuming this product.
Unidentified Participant
Okay, understood sir. Thank you very much. And one final question I have is that is given our strong market position in XLP and cable compounds, like how do you see the competitive intensity increasing or how is it looking? And like how is the company defending or strengthening the market share especially versus the organized players and the unorganized. I just wanted a little color on that. Thank you very much.
Ddev Surana — Chief Executive Officer
Yeah. So as far as the products which we are doing only PVC compound, we do face competition from say unorganized sector players. But rest of the segments are mostly the competition with the organized sector. That is point number one, point number two, as we explained in past, multiple times that there are product segments where we are having a dominant presence. So there we are continuously maintaining our dominant position. Because that position, the dominance comes from your experience and expertise and the product performance demand. As you go higher on the voltage rating, say up to 1.1 kv, of course you are having a high intensity of competition.
But once you go beyond 1.1 kv towards 11 kv, that intensity goes down. Because none of our competition, apart from those four, five big international players, they are having the same amount of extra experience and track record of supplying defect free product for multiple years for that kind of critical application of insulating a conductor for which is carrying a current of 11,000 volts. Okay, so 11kv and above that area, this particular aspect is keeping us ahead. And the third aspect is the capability to provide the solution. As people in India are trying to capture the international market more and more with the fta, with Europe and the intensity of exports to USA after this trade deal, the people need the product which are of global standard, which are not being consumed in India yet.
Like the CPR compliance of Europe, it is not applicable in India. So products for that application are entirely different and those products are not available with most of other compounders because that capability is missing and that is what is keeping us ahead against any kind of competition and we are delivering the best against both kind of competition. The competition which is coming from the small players who I cannot say unorganized organized sector but small players not having the same kind of experience and exposure and the big players like Dow and Borealis, we are playing their role in between.
Say we are providing technical solution against the small players which is superior and we are providing tailor made solution and flexibility against the big players who are mostly selling the product of the self and are having the rigidity. So we are countering competition on both the ends successfully so far.
Unidentified Participant
Okay sir, thank you very much. Thank you. Just one question I missed in from the earlier person Mr. Saketo sought a query on the dividend how we arrived at the so it is just an interim number and if you see last year we didn’t give any interim but prior to that the similar percentage was announced that remained about benchmark and then we have followed the same. I hope that addressed his queries. Now I hand over the call to Mr. Devji to give his concluding statement.
Ddev Surana — Chief Executive Officer
Thank you all for your time and energy on this call. See at this scenario Dave Plastics as you heard from the team is well primed to expand further on existing port business of XLP compounds, HFR compounds which is well poised to focus on further export markets with UL approvals already in place and there are much more in pipeline which you will hear in the coming quarters. Same with our expansion of capacities which also in the coming quarters you will hear about. So for the existing core business we are very optimistic about the demand which is a mix from both the predominantly from the existing clients as well and addition of new clients as well.
And for PPC the addition of Ultratech and Builder which is a welcome addition is also going to enhance our capacities and market share in the PVC production as well. As far as BESS is concerned, as. You all know this renewable sector is. A sunrise sector and the government’s target is 500 megawatts up till 2030. So there is so much demand in the renewable sector and so much scope in the renewable sector which we synergistically want to tap into also from Discoms. Right up till the Inc players. So this has a wide range of applications and use which will continue to have a good demand on the best storage business as well. So overall, I think we are very optimistic on the coming many years, and. We are well poised for a good.
Arihant Bothra — Chief Financial Officer
Amount of substantial growth. So I thank you all again for joining us. And if you have any other questions and queries, please let us know. All right, thank you.
operator
Thank you. On behalf of Go India Advisors. That concludes this conference. Thank you for joining us. You may now disconnect your lines.