DEE Development Engineers Ltd (NSE: DEEDEV) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Sanjeev Sancheti — Head, Investor Relations
Krishan Lalit Bansal — Chairman and Managing Director
Sameer Agarwal — Chief Financial Officer
Pankaj Agarwal — Chief Operating Officer
Analysts:
Unidentified Participant
Vaibhav Shah — Analyst
Kamlesh Bagmar — Analyst
Mahesh Bendre — Analyst
Ankit Soni — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Dee Development Engineers Limited Q1FY26 Earnings Conference Call hosted by Equidos Securities. 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 Ben 0 on your touchstone phone. Please note that this conference has been recorded.
I now hand the conference over to Mr. Vaibhav Shah from Equidus Securities. Thank you. And over to you sir.
Vaibhav Shah — Analyst
Hi. Good afternoon everyone. Thank you very much for joining into the first quarter financial year 26 earnings call of DW Development Engineers Ltd. From the management team, we have with us Mr. Christian, Chairman and Managing Director Mr. Pankas Agarwal, Chief Operating Officer. Mr. Samir Agalwar, Chief Financial Officer and Mr. Sanjeev Sanjibi, UT Advisors to the DW Development Engineers. Without taking much time, I will now hand up hand over the call to the Mr. Sanjeev Sancheri. Thereafter Krishan sir will share his opening comments. Thank you. And over to you sir.
Sanjeev Sancheti — Head, Investor Relations
Thank you, Vaibhav. Good afternoon everyone. It is a pleasure to welcome you all on the Q1 FY26 earnings calls today. We delighted to have the senior management team of D Development which has already been introduced by Weber. Before we begin, it is extremely imperative that I draw your attention to the CF harbor statement included in our earnings update presentation. This is also available both in the BSE and NSC website. With this I now invite Mr. Kishan Lalit Bansal to share his opening remarks. Mr. Bansal, over to you.
Krishan Lalit Bansal — Chairman and Managing Director
Thank you so much, Sanjay. Good afternoon everyone and warm welcome to all. We appreciate your presence Today on the Q1 FY26 investor call of D Development Engineers Limited I shall begin by sharing key business and operational highlights from the quarter. Followed by our CFO Mr. Sameer Agarwal who will walk you through the financial metrics. Before diving into the specifics of our performance I would like to express our heartfelt gratitude to all our shareholders, analysts and stakeholders for your continued trust and engagement. We are pleased to report a strong start to FY26 reflecting our continued focus on execution, operational efficiency and strategic growth.
In Q1, operating income stood at 2 to 3. 8 million up 21% year on year. Operating EBITDA grew 44.7% to 359 million with margins expanding by 263 basis points to 16%. Profit after tax increased sharply by 314.3% to 132 million, taking the PAT margin to 5.8%. Our order book remains robust at 12,012,002,67 million as of 07-31-2025, providing healthy visibility for the coming quarters. On the operational front, the expansion at our Anjar facility is progressing ahead of schedule with the addition of 15,000 metric tons per annum capacity set to be commissioned by end August 2025, two months earlier than planned.
This will increase the facility’s total capacity excluding heavy fabrication to 30,000 metric tons per annum. Our high wall seamless pipe plant is also on track to commence commercial production by January 2026, making a significant step in our backward integration strategy to improve supply chain efficiency and cost competitiveness. We are also seeing strong traction in the power sector with active participation in multiple tenders and have secured L1 position in one of the most important bids for the most critical scope of work. And we are also in the process of submitting many bids to leading thermal power players.
Coupled with robust demand from the oil and gas segment, this positions us well for sustained growth during the quarter. We also made a strategic entry into the green Hydrogen sector through a partnership with International Cleantech Partner, a global leader in sustainable energy technology. Under this MOU we will jointly develop, bid for and execute modular hydrogen production system projects in India and Thailand. This collaboration combines their proven hydrogen technologies including electrolyzers, separators and purification systems with our manufacturing and execution expertise including ultra pure hydrogen purification systems of up to 99.9999% purity. Our recent majority acquisition of Messes More Seeds Designs Limited further enhances our technical capability and capacity in this emerging sector.
We anticipate operational performance to strengthen further in the coming quarter as our new capacity at NJAR has started yielding dividend as was envisaged and helping resolve financial inefficiencies related to inventory and profit margins. Furthermore, our strategic entry into the green Hydrogen sector presents a significant opportunity to diversify our growth drivers and deliver greater profitability. Looking ahead, we remain committed to delivering operational excellence, expanding capacities and diversifying into high growth sustainable energy solutions. We thank our employees, customers, partners and shareholders for their continued trust and support as we work together to create long term value. Thank you all.
Now I would hand over the call to our CFO Mr. Sameer Agarwal to talk about financial matrices. Thank you so much.
Sameer Agarwal — Chief Financial Officer
Thank you. Thank you Bansalji. Good afternoon ladies and gentlemen and thank you for joining our Q1 FY26 earning call. Before we open the floor for question and answer session I would like to provide a brief overview of our financial performance for the quarter. I trust everyone has had the chance to review our earning presentation and press release. While Bansal JI has already covered the business outlook, I will now focus on financial performance of the past quarter in greater detail. Our revenue from Operations grew by 21% year on year reaching 2,238 million in Cuban financial year 26 compared to 1,850 million in Cuban FY25.
Revenue from Piping Division saw a 30.4% year over year growth contributing 86.9% to our total revenue. Operating EBITDA in Q1 FY26 saw a strong year on year increase of 44.7% reaching to Rupees 359 million with an operating EBITDA margin expansion of 263 basis points to 16%. Profit after tax for the quarter stood at 132 million against 32 million in Q1 FY25 with PAT margin expanding by 410 basis point year on year to 5.8%. The cash conversion cycle increased from two hundred and ten days in March 2025 to two hundred and forty seven days in June 2025.
This is primarily driven by rise in inventory days from 217 to 243 days. The higher inventory level reflect procurement of raw material in anticipation of execution by expanded order book in the coming quarters. As discussed in our previous call, we had initiated legal action against the downward revision of tariff for our two biomass projects. The matter remains in a status quo since the last quarter. Hailings for both the power plants under the review petition has been completed and the Honorable Commission has reserved its order which is expected to be pronounced within a month. We deeply value your ongoing support and engagement as we advance our strategic initiatives.
We are committed to achieving our goals and delivering strong returns and we look forward to sharing our progress as we work towards creating long term value for all our stakeholders. Thank you all. Now I would like to open the floor for question and answer session.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone phone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Vaibhav Mishra from Finvestors. Please. Please go ahead.
Unidentified Participant
Hello sir. Good morning. Congratulations for the good set of numbers. Sir, I have a couple of questions. First is regarding the order book. In the first four months I think we have had around 320 crores of order inflows. And so my question is what order flow can we expect in the remaining eight months and what will be the number for whole FY26 in terms of order inflow?
Krishan Lalit Bansal
If you can respond.
Pankaj Agarwal
Yeah, thanks. We are good expecting very good numbers of orders to book. By March 26th. We are expecting almost like around 1200 crores orders.
Unidentified Participant
All right. Additional orders on top of.
Pankaj Agarwal
Yeah, yeah.
Unidentified Participant
Okay, okay, okay. Thank you sir. And so second question is regarding the our US Exposure in the current order book. I would like to know what percentage belongs to the US and since in circumstances I think our cost advantage to the other countries is largely gone now. So how is it going to affect us and will it have any impact on our guidance of 1300 course of revenue or 1920% of margins? And also sir, do we have any impact of this on our multi year business deal? I think we have had with the ExxonMobil. Your thoughts on this.
Krishan Lalit Bansal
Sameer, if you can just first give them the order value which is getting impacted and then I will take over.
Sameer Agarwal
So as far as the total orders to be shipped out of our current order book of 1226 crores, 23 crores orders are in hand in India which are to be shipped to USA. So that is only 2% of our total order book. And as far as supply from our Thailand facilities concerned the order value of 32 crores are to be shipped to USA. As far as the tariff levy on Thailand exports are concerned that is 19%. So that is as on date. This is the update going forward we are expecting good numbers of orders from across the globe.
So Pankaji would like to I think answer. Pankaji, can you answer that?
Pankaj Agarwal
Yeah. Coming string forward of your question of the ExxonMobil. What we are in discussion with them but their projects are not exactly in USA but they are having many projects globally. So we are expecting those orders first now. But it’s very difficult to say anything to from the Exxon what what order they are going to place on us in the number which we have told to told you now around 1200 crores. We are not considering any order in of Exxon in this number in these numbers.
Unidentified Participant
All right. So we have currently we have minimal exposure, not much and it’s not going to impact our having projections for FY26 in any way like 1300 crores and the margins and all correct?
Krishan Lalit Bansal
Not at all. Not at all.
Unidentified Participant
Okay. Okay, thank you. Once the last question. This is regarding the biomass power plant. I think you have already mentioned that in one month or so we are anticipating the resolution for this. So how confident are we that it is going to be in our favor and if it persists for longer duration? I think this has impacted our margins close to 2% because I think we have had small loss in that segment biomass power plant segment. Otherwise our margins operating margins would have been 18% plus. So are we confident that in a month or two it will get resolved?
Krishan Lalit Bansal
Sameer, please.
Sameer Agarwal
Yeah. So as far as tariff of biomass is concerned, since this is an environmental issue than that of the rate issue, and since central government, Supreme Court of India, National Green Tribunal, every other entity and other enterprises, they are more focusing upon the environmental protection. Therefore, we are having high hopes to reinstate our price in terms of per unit of electricity. And we are expecting to get this revision done somewhere in the month of August end or maybe first week of September. This is the position. And at the same time we cannot say that we will get 100% to be in our favor.
But we are keeping high hopes from this order in case it doesn’t happen. We have already declared in our press release what shall be the financial impact if the same rates prevail.
Unidentified Participant
All right, so the margins, I was concerned about the margins because the margins that we have guided is 19 to 20% operating margins. So will this, if it persists, so will there be a downward revision in the guidance of the margins or will they be the similar kind of 19% kind of margins?
Sameer Agarwal
If these rates do prevail, then definitely the EBITDA margin shall go downwards and our guidance which we had given for 19 to 20% shall come down to 16 to 18% anywhere.
Unidentified Participant
All right, that was very helpful. Thank you so much, sir. And all the best for the future.
Krishan Lalit Bansal
Thank you.
operator
Thank you. The next question comes from the line of Thane from Kotak. Please go ahead.
Unidentified Participant
Yeah. Hi, sir. So my question is regarding the power segment orders. Initially we were expecting some large orders. From the power segment because we were L1. So by when should those orders come in? Maybe it is Q2 or Q3. And once we get those orders, how long does it take for us to ramp up and execute? So what would be the execution timeline of those orders?
Pankaj Agarwal
We are expecting these orders to come in next two to three weeks maximum. And, and the exhibition time prevail from six months to nine months or 12 months considering the unit requirement, because it’s a multiple units.
Unidentified Participant
Large part of large part of the contracts we can execute in this year.
Krishan Lalit Bansal
Contracts we can execute in this year. Some part of it will get executed, some part will get executed in this year, but the remaining portion will get shifted to the next year. However, you know, as we told you, we already have a reasonably high order book and you know all of our projections are based upon that, whether it is EBITDA margins or margins or top line margins. So you know, we are not much concerned on that. But we are trying that if something can be built in this year that will be helpful.
Unidentified Participant
Okay, thank you. Thank you so much.
Krishan Lalit Bansal
Yeah, thank you.
operator
Thank you. The next question comes from the line of Kamlesh Bagmar from Lotus Asset Managers. Please go ahead.
Kamlesh Bagmar
Yeah, thanks for the opportunity, sir. Am I audible?
Krishan Lalit Bansal
Yeah.
Sameer Agarwal
Yes sir.
Kamlesh Bagmar
Yeah. What order levels we see like the closing order book in this year because we are expecting huge orders from the power sector, even oil and gas, we are seeing a lot of activity. So what, what order book we are looking at as, as our new capacities all are coming on stream at enjoy.
Pankaj Agarwal
So as I said that during the first question, we are expecting a very good order book by March. We already have order book of more than 1200 crores. So same we are expecting to book by March 26th. Okay.
Kamlesh Bagmar
Yeah. So roughly around 2000 to 2500 plus.
Krishan Lalit Bansal
No opening should be around 1500 plus. Opening should be 1500 plus.
Kamlesh Bagmar
Okay.
Krishan Lalit Bansal
Something. I hope I’m right.
Pankaj Agarwal
Yeah, absolutely, absolutely.
Kamlesh Bagmar
And lastly sir, like on the growth guidance, like for this year we were expecting around 1300 off road. So where do we stand on the order on the, on the revenue execution? Because there are some delays in the finalization of some power orders. So now where do we see our this year’s revenue?
Krishan Lalit Bansal
Sir, we, we are constrained only from the revenue which may get hit due to this PACRC intervention only otherwise we are well on track. You know that may have some impact and exact value for that we shall be able to know it only after we get the orders. But you know it can be maximum 5200cr, not more than that, maximum 50 cent.
Kamlesh Bagmar
Okay, okay. Yeah.
Krishan Lalit Bansal
But exact guidance we shall be able to provide you in Q3.
Kamlesh Bagmar
Okay, okay. And lastly sir, if you see your revenue growth in piping is upwards of 25 odd percent. And but if you see your capacity utilization over last year. So the volumes would have been barely flattish year over year while we have seen strong revenue growth in the value terms, what has driven this?
Krishan Lalit Bansal
Sir, you know again we have been telling it time and again that you know, our capacity just Cannot be measured just in metric terms only. You know, the drivers are, you know, how much value add we are doing it. As we have been telling right from previous year itself. The, the value addition or you know, the metallurgy of the orders for this particular year is very helpful in doing all these things. And you know, that’s the main thing. Plus, you know, ultimately, you know, what we are saying is that the we. Our capacities mainly to be measured in terms of the inch of work which we do, which we are doing as per our full capacity only almost full capacity I will say at Tatarpur and whatever capacity we have at that is of course we, we are lagging, but we still are not worried on that reason is that we are able to meet the top line.
Kamlesh Bagmar
Okay, great. Thanks a lot. Thanks. Thanks a lot. And.
Krishan Lalit Bansal
Thank you.
operator
Thank you. The next question comes from the line of Nishant Shah from Mani V. Please go ahead.
Unidentified Participant
Yes, sir, Good afternoon. I have a couple of questions. Sir, Am I audible? So firstly sir, just to follow up on a previous question regarding your orders, your L1 orders want to understand your pipeline or any visibility like how many. Orders are you expecting moving forward in the power sector Sector?
Pankaj Agarwal
We are expecting a good number, good volume from power sector, considerating various lines. So there is no doubt of that. We are not concerned about. Absolutely. And we’ll remain excellent in that power sector business for sure.
Unidentified Participant
All right, sir. And sir, regarding your power division, you. Know, when are you expecting a turnaround in the downward revision of Paris? Any turnaround expected anytime soon.
Sameer Agarwal
So sir, as we have already told you that these hearing on review petition has already been completed and the commission has reserved for the orders to be pronounced maybe by month end or maybe first week or second week of the next month.
Unidentified Participant
Okay, sir. And sir, also regarding your current order book. You know, maximum of your order book comes from exports. So can you give a geographical breakdown. Of your customers and you know, your overall order book?
Pankaj Agarwal
Let me just open that file.
Krishan Lalit Bansal
You. You can, you can just give tentative figures if available.
Pankaj Agarwal
No, no, I don’t have that number. Readily available with me. Belgium, Canada, Czech, all those countries we are, we are supplying it. London, Japan, Italy.
Unidentified Participant
Okay. So and so my last question to. You is just one last question. Your partnership with Cleantech, when are you expecting the, you know, the sizable revenue to pour in?
Sameer Agarwal
Sir, on this I would like to state that we have recently entered the. With the joint ventures and we are doing the marketing and getting the basically bids to be filled in. And we are hoping any business Coming in this domain maybe 6 months to 9 months time but at the same time we are bidding at a very very good pace in terms of our hydrogen purification systems which is our proprietary through our subsidiary Malzi Designs limited.
Unidentified Participant
But sir do you have any tentative revenue number to give as to how. Much you are expecting out of this? Any top line number that you have?
Sameer Agarwal
It is, it is very initial phase and we cannot commit any number at least for next three months. We would be having some visibility three months down the line from now where what we are doing and probably in the next earning call or next to next earning call we would be in a position to give you the detailed projections on hydrogen business.
Unidentified Participant
All right so thank you so much for answering these questions. Thanks a lot. All the best.
operator
Thank you. The next question comes from the line of Ankit Kumar from Alpha Capital. Please go ahead.
Unidentified Participant
Hello sir, thank you for taking my question. Sir, my first question is can you talk about a bid pipeline in terms of. As in you are saying we expect very good orders in terms of 1200 crore type to win in this current year. So can you talk about bid pipeline and how are we looking on that front?
Pankaj Agarwal
This is the expectation what we are expecting till March. It’s a firm one, I can tell you that because we are in the final conversation with many customers and for next pipeline you can say for next financial year we again we have a strong pipeline for that and because since a lot of projects are coming in oil and gas and power both with various customers now opening up. So we are, we are expecting very good numbers of orders. The pipeline is really really very very good. I would say.
Sameer Agarwal
it’s a very healthy order book pipeline, Very healthy pipeline.
Pankaj Agarwal
Very healthy.
Unidentified Participant
But you’re not saying any, any numbers or. No, no magnitude.
Sameer Agarwal
We have already told us that we are likely to book around 1200 out of that. You know the total pipeline may be thousands of crores but we are saying that we are likely to encash almost around 1200 crores worth of orders in this financial year. Only apart from what we have already got.
Unidentified Participant
tGot it. And sir in terms of our peak capacity utilization given NJAR is also coming in. So what will, what is our, what will utilization x total revenue potential after. That.
Sameer Agarwal
As far as. Yeah. So on a maximum utilization of our capacity our NJR unit can produce a revenue of 800 to 1000 crores whereas our pulval facility can produce a revenue of 13,000 to 1300 to 15,000 1500 crore rupees. So overall I can say with our Total capacities till date we can produce overall revenue somewhere from 2500 crores to 3000 crore rupees.
Unidentified Participant
Sure sir, last question would be as in. In margin side. Sir you are saying 18 to 20%. But given last year was also low and Q1 was low. So I assum we are expecting operating leverage to play out on this front. So can you say as in how much is our RM cost and how much is our total fixed cost in the business annually?
Sameer Agarwal
Sir, first of all you would appreciate that 16% of our operating EBITDA margin is the reflection of our operational efficiency due to the introduction of new capacity at Anjar. And we had already told you in last last year we were struggling in terms of spending so much of an amount on our material handling cost. So that have become reduced drastically by introduction of Angyar facility and the decrease of load in our facility. As far as this quarter number 16% EBITDA margin. You are seeing this is not reflecting the positive EBITDA on account of price reduction in our power business.
Had that EBITDA be there I think we would have touched around 18% plus EBITDA operating EBITDA. So at present I can say that we are absolutely on track in terms of our overall revenue figures. Top line and bottom line both.
Unidentified Participant
Sure sir last question wanted to ask on this Anjar side given it is coming in. So can we talk about some what should be our annual depreciation and interest cost.
Sameer Agarwal
So at present the annual. At present the quarter depreciation is around 11.5 crores. So it the overall capitalization post this facility to be hundred percent functional. The overall depreciation per annum would be around 60 to 65 crores. And that’s it.
Unidentified Participant
Thank you and all the best.
operator
Thank you. The next question comes from the line of Mahesh Bayendari from LIC Mutual fund. Please go ahead.
Mahesh Bendre
Hi sir, thank you so much for the opportunity. So I just want to understand your view on tariffs. I mean we export also to usa. So what impact that tariff will have on our business with usa?
Pankaj Agarwal
Sir, overall we have already told as far as our current order book is concerned that hardly have got the orders to be shipped to USA going forward. Since oil and gas sector and or power sector we can expect good amount of business from USA since our presence is at best cost countries and the overall process piping solution content in an overall project cost is very little. That is to an extent of 3 to 4% or 5%. So the overall impact on the basis of procurement from India shall not impact any project at large at usa. Therefore I hardly see any impact due to the enhanced tariff by a US government.
Krishan Lalit Bansal
Sir, one more thing I would like to add one more thing I would like to add that you know the HSN codes in whichever material go generally doesn’t come into the this you know, new tariff business because few days back I was hearing a talk that almost even now more than 90% of the items which are going to USA are not subject to these tariffs. Only around 10% or such odd items are there which are going to be subject to this particular enhanced tariff. So you know we still are quite confident that you know it is really not going to impact us, you know which can disturb our balance sheet.
Mahesh Bendre
Okay, so sorry, you mean to say that tariff is not applicable to our products? That probably will go to see.
Krishan Lalit Bansal
What I’m saying is, what I’m saying is exactly we I have asked for the this you know HSN code notification where this additional tariff will be applicable. What I was saying you is that even now as per I think day before yesterday’s talk, 90% of the items which are getting exported to USA are still out of that ambit of additional 25% or additional 50%.
Mahesh Bendre
And sir, do you see any, any, I mean given such a situation do you see the business we were expecting from usa There is some kind of hold up because everyone is confused about the situation.
Krishan Lalit Bansal
Sir, most of the business from USA comes for the other countries. We get comparatively much lesser business for USA. But let us say if it, if it is there it, it’s likely to get impacted. But again I’m saying since there is a quite a healthy order book and we are not just dependent upon export. We, we just want to do only 50% of our earnings as export earnings. So you know again I will say that you know we, we do not foresee any such reason that we should be worried.
Mahesh Bendre
Be worried because it’s 50%. I mean this is too high. I mean no business will able 50.
Krishan Lalit Bansal
Again I’m saying, again I’m saying we will be able to clarify you maybe in coming days that whether our product is there or not. I am just giving you an example, please do not take it in any other sense. You know earlier also you know there were many discussion on tariffs on piping items. You know raw material for the piping which was coming from China or India it was subjected to some additional amount of tariffs in USA. But you know since we are not exporting that as pipe or as fitting or we are adding, we are doing lot of value addition and Its HSN code changes.
So you know even at that time there was no tariff implication on, on, on the product which we are manufacturing and we tried it physically by exporting something from our unit to USA on that address adjacent code.
Mahesh Bendre
Sure sir, thank you so much.
operator
Yeah, thank you. The next question comes from the line of Ankit Soni from Mirai Asset. Khan, please go ahead.
Ankit Soni
Good afternoon sir. Congratulations on a good set of numbers. Sir, we’ve seen our margins almost at an 18% range right now. And considering the Ms. Impact. So what See still we have some sort of logistics benefit which you have alluded for what could be the peak margins we have guided for around 18, 19 to 20% this year. But what could be the peak margins which would be driving around in 20, 27 or 28. Any, any sort of view out there.
Pankaj Agarwal
I think, can I, can I come here? I think you know because of this multiple, you know new orders coming in and there are certain other areas we are working on a firm guidance for a medium term. So I think in the next call we will come up with a clear guidance. Correct.
Sameer Agarwal
Will you undertake.
Ankit Soni
Okay, maybe we’ll be waiting for that. And second thing is on the hydrogen business do we need to look out for some sort of capex out there and what’s your, what’s your broader strategy out there? What would be your target addressable market out there? What, what, what margins it would carry Basically and basically so that, that sort of more on strategy front what is what will be on your hydrogen.
Sameer Agarwal
So sir, on this front I would like to stay that there are multiple type of options are there in the market in terms of setting up of new hydrogen plants. For example there are companies who are wishing to set up a hydrogen plant on built, own and operate basis. At the same time there are the pure supply basis. They would also like to have the hydrogen plant. So in the, in the initial phase what we are trying to do, we are trying to set up a very small hydrogen plant in our own, in our own setup just to demonstrate how efficiently we are producing the pure, ultra pure hydrogen.
So that that cost, that can cost somewhere to an extent of 10 crores or 15 crores. That is what we are contemplating as a capital cost towards hydrogen business. But beyond that we don’t foresee any such kind of capital expenditure. And in case there is a project which requires build, own and operate then probably we would like our venture partner to make the capital expenditure on its own part. And at the same time we by exhibiting our own hydrogen plant, the customer shall have enough faith in us in our product as well as the technology.
Ankit Soni
Okay. Understood sir. And what. What would be the Capex for financial year 26 and what was incurred in quarter one, financial year 26?
Sameer Agarwal
Around 20. 25 to 30 crores of CapEx we have already done in Q1. And going forward within this financial year our expected capital cost would be around 100 crores to. To reach out to the planned capacities of process piping solution as well as our high wall thickness seamless piping solution.
Ankit Soni
Okay, answer one last question. Your guidance would remain the same, right? The 1300 crore of revenue and then 19 to 20% of EBITDA margin.
Sameer Agarwal
Yes. Subject to the financial impact of power generation business which we have already disclosed during this call as well as through our press release.
Ankit Soni
Sure. Thank you sir. That was. That was my questions. All the best.
operator
Thank you. The next question comes from the line of Shivani Parikh and individual investor. Please go ahead.
Unidentified Participant
Hello.
operator
Yes, ma’. Am.
Unidentified Participant
Thank you for the opportunity. Firstly, I would like to thank and congratulate the management for upholding integrity and the clicks and buying the stock when sentiment was at its lowest. Naina. Now my question is does the company maintain its long term guidance of threefold increase in revenue in next three to five years?
Sameer Agarwal
Yes, sir.
Unidentified Participant
Okay. Thank you so much sir. That was my only question.
operator
Thank you. The next question comes from the line of Prabhal Jean from SM Holdings. Please go ahead.
Unidentified Participant
Yeah, hi. Just to make sure that I heard that right regarding the power generation business. So did you mention that the order is most likely in our favor and has been kept aside but has not been announced? Is it like that or has the decision not being made at the decision at the judiciary or whatever tribunal level and it is still adjudicated like.
Pankaj Agarwal
So I told you sir that the hearing or the arguments on the review petition has been completed and the commission who is the judicial authority to decide the issue has reserved its order which shall be pronounced in a. In a month’s time.
Krishan Lalit Bansal
Okay.
Unidentified Participant
Okay.
Krishan Lalit Bansal
So argumentation part is complete.
Sameer Agarwal
And now. Yeah. Yeah.
Krishan Lalit Bansal
Okay. Okay.
Unidentified Participant
Thank you.
operator
Yeah, thank you. The next question comes from the line of Yash from Mavira amc. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Sameer Agarwal
Yeah.
Unidentified Participant
Yes. Congratulations on the good set of numbers and thank you for the timely updates to the investors. So my question is with respect to the hydrogen segment that we are entering. So without, you know, maybe putting numbers. Just wanted to understand our thought process of the company behind venturing into this segment. So do we see this segment as a substantial revenue generating you know, segment over the next say two to three years. And what would be the margin profile of this segment? How different it would be from the existing margin profile?
Sameer Agarwal
Sir, since we belong to process piping solution domain and our business very much have a synergy to work for hydrogen sector as well. As far as our strategy to have the joint venture, it is in relation with the technology of the electrolyzer. So our, our venture partner in this international tech company that will provide the electrolyzer and the separator and we have got our proprietary for ultra ultra pure hydrogen purification system which can produce hydrogen to an extent of 99.9999%. So that creates a good syndication and that is why we have entered into this field.
As far as the business prospect in this domain is concerned, not only India, worldwide, everywhere the they are promoting hydrogen as a future fuel. So having our space step into this domain, I foresee a good amount of turnaround in revenue going forward in next to two to three years time.
Unidentified Participant
Understood, sir. And sir, with respect to competition, so anything you would like to say on the competition part in the hydrogen segment?
Sameer Agarwal
So on the competition front, I would say that there are two types of competition in this segment. One is the high, higher capacity hydrogen plant in which LNT or thermal bigger players are there. We are not targeting to enter into that domain. We are restricting ourselves right now for any hydrogen plant ranging between 700 NMQ to 1500 NMQ. And that in that segment the competition is very, very less in the possibility of conversion. The converting the firm order is very high. So this is the strategy right now. But going forward we do not know where we will reach out.
So at present we stand here.
Unidentified Participant
Understood sir. And so just the last bit, so what I understood is for the hydrogen business, whatever existing schooling and assemblies that we make, those were, those are the similar products that will be used in the hydrogen EPC projects. Is the understanding correct?
Krishan Lalit Bansal
The capabilities which we have will be quite helpful in producing that.
Unidentified Participant
Understood? Understood. Great sir. All the best for the future.
Krishan Lalit Bansal
Thank you.
operator
Thank you. The last question for the day comes from the line of Kamlesh Bagmar from Lotus Asset Managers. Please go ahead. Yes, Kamila. Sir, you can proceed with your question.
Kamlesh Bagmar
Yeah, so if it’s a very good situation that both of your sectors are booming with the order inflow. One question on the part of oil and gas. So we are seeing lot of orders coming in like say Burl, like say Bina Refinery and various orders from the Reliance as well. So how are we seeing our order Pipeline in oil and gas.
Pankaj Agarwal
Considering we like we are expecting to book around 1200 crores orders by March. So in that around 45% order will come from oil. And.
Kamlesh Bagmar
Lastly sir, since our revenue would be almost upwards of 1300 crore and in FY27 we are seeing further phenomenal growth. So what. How are we going to fund this increased or elevated working capital requirements? Would we be looking to the equity market or we would be able to sustain that funding through borrowing.
Sameer Agarwal
So sir. Sir, as far as the current cash conversion cycle is concerned. We are presently looking to have the needs fulfilled from our borrowings only. But going forward, depending upon the order inflow and depending upon the revenue profile specs, we may see some other options as well. By having our board meeting and going forward with the with the support of the consultants and other people.
Kamlesh Bagmar
Great thanks. Thanks and best of luck. And again want to congratulate Sir. Your disclosures are one of the best in the industry. Sir. .
operator
Thank you. As there are no further questions from the participants. I now hand the conference over to management for closing comments. Thank you. And over to you sir.
Krishan Lalit Bansal
Thank you so much. Thank you everyone for being there listening to us. Thank you so much.
Sanjeev Sancheti
Thanks a lot everybody. Sanjeev signing off from from utis.
Sameer Agarwal
Thank you all our investors with with your support we can grow to any extent. And thank you for having the trust in all.
Sanjeev Sancheti
Thank you everyone.
Krishan Lalit Bansal
Thank you.
operator
Thank you. On behalf of Equiva Securities. That concludes this conference. Thank you for joining us. And you may now disconnect your line.