DEE Development Engineers Ltd (NSE: DEEDEV) Q3 2025 Earnings Call dated Feb. 17, 2025
Corporate Participants:
Sanjeev Sancheti — Investor Relations Advisor
Krishan Lalit Bansal — Chairman & Managing Director
Sameer Agarwal — Chief Financial Officer
Pankaj Agarwal — Chief Operating Officer
Analysts:
Vaibhav Shah — Analyst
Saumil Shah — Analyst
Kamlesh Jain — Analyst
Shrikarsh — Analyst
Asna — Analyst
Jignesh — Analyst
Subhash Singh — Analyst
Shivanshu Gupta — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3FY25 earnings conference call of Dee Development Engineers Limited hosted by Equerry Securities Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing the Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vaibhav Shah from Equity Securities. Thank you. And over to you, sir.
Vaibhav Shah — Analyst
Yes. Hi. Good morning everyone. Thank you very much for joining me to the 3QFY25 earnings call of DW Development Engineers Limited. I will now hand over call to the Mr. Sanjeev Sanchiti, Head Investor Relations.Thank you. And over to you, sir.
Sanjeev Sancheti — Investor Relations Advisor
Thank you. Good morning everyone. It is a pleasure to welcome you all to today’s call. We are delighted to have the senior management of Dee Development Engineers Limited with us. Joining me today, Mr. Kishan Lalit Bansal, Chairman and Managing Director. Mr. Panka J. Agarwal, Chief Operating Officer and Mr. Sameer Agarwal, Chief Financial Officer. Before we begin, I would like to draw your attention to the Safe harbor statement included in our earnings update presentation which is available on both the BSE and NSE website. With that I now invite Mr. Kishan Lalit Bansal to share his opening remarks. Mr. Bansal, over to you.
Krishan Lalit Bansal — Chairman & Managing Director
Thank you so much, Sanjeevi. Good morning everyone and a warm welcome to all of you. Thank you for joining us today for Q3FY25 investor call of D Development India’s Limited. I will take you through the business and operational highlights for the quarter. Before we begin our discussion on the financial results and operational highlights for Q3 and the first nine months of FY25. I would like to express our heartfelt appreciation to shareholders, analysts and stakeholders for being with us today. Your unwavering support and remain instrumental as we navigate the opportunities and challenges in our industry. We recognize that the company’s financial performance this quarter has been challenged. With operating income declining by 22.7% year on year to 162 crores for the first nine months of FY25 operating income. Income stood at 541 crores reflecting a slight decrease of 0.8% year on year. The degrowth or slow growth in the revenue are due to the following factors. Firstly, and most importantly, the Palwal facility remained underutilized. This unit was allocated for a 139 crore order from a leading Indian oil and gas company for the industry’s first propane dehydrogenation plant that’s called PVH plant. As this was a pioneering project, a six month delay in getting drawings and material approvals from the customer impacted the execution timelines. Originally awarded in October 23, the project was expected to be completed by March 31, 2025 with a large chunk of revenue coming in Q3 of FY25. This however is now expected to be completed by June 2025 and part of the revenue will be shifted to the next financial year. Secondly, an international order valued at over 51 crores experienced delays due to late revision in the material specifications by the customer, pushing the execution from Q3FY25 to Q4 of FY25. Thirdly, there has been a delay in the execution of 60 crores worth of orders from Assam plant. This delay is primarily due to the late delivery of drawings from the client. Additionally, this being our first year of operations in Northeast, it took us longer than anticipated to stabilize operations. However, now having been stabilized, we expect to fully utilize the facility in FY26. Lastly, the commissioning of the new facility 2 was delayed by over 6 months. The expansion of 9000 metric ton was successfully commissioned towards the end of January 2025 taking the total capacity of 2 15,000 metric ton. The delay was primarily caused precedented rains in Kutch region and the unavailability of the construction materials, specifically coarse aggregate due to a dispute between the mine owners and the state government. DIVA not only resulted in slippage of our revenue but also significantly impacted our profitability which led to the company incurring a loss of 13 crores in Q3FY25. The reason for this are as follows. Lean manufacturing at the new Anjar facility too got delayed resulting in significant higher material handling cost than originally analysis. Working capital increased significantly due to increased caused by delaying clearance of drawing by occupation. Customers reduced gross profit due to low revenue negative operating leverage resulting in higher fixed overheads. However, with the commissioning of the new plant, problems at customers end getting sorted, we are back on track. We are on track to specific additional capacities and metric tons per annum by October 2025. Total capacity to 30,000 metric tons. We are also pleased to announce that our high volt seamless signals pipeline is. We remain on schedule to commence commercial production by January 2026. We are committed to continuously optimize our operations and capitalize on market opportunities. Our primary focus remains on maintaining capital discipline, investing in cutting edge technologies and upholding sustainable business practices. In light of the current market uncertainties. We will carefully monitor economic trends and adjust our strategy to ensure long term value creation for all stakeholders. Now I would like to hand over the call to our CFO Mr. Sameer Agarwal.
Sameer Agarwal — Chief Financial Officer
Thank you sir. Very good morning everyone and thank you for joining the Quarter 3 FY25 earning call. We would like to guide our stakeholders by sharing our growth targets. We aim to achieve a top line of around 1100 crores in FY26 with an EBITDA margin in the range of 19 to 20%. The anticipated margin expansion from 9 months FY25 onwards is attributed to operational leases and the commissioning of our new facility too. This facility will drive cost saving as it will primarily serve the oil and gas sector while our Polar facility will keep focus on meeting the growing demand in the power sector. Additionally, the Anjal facility proximity to Kandala port will reduce logistics cost significantly as it will be fully dedicated to the oil and gas sector. Thank you all. Now I open the floor for question and answers. Thank you all.
Questions 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 their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use Hans hut 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 Soumil Shah from Baris Investments. Please go ahead.
Saumil Shah
December is about 1400 crores. So by when do you think this order will be?
Operator
Your voice was breaking. Can you please repeat your question?
Saumil Shah
Yeah, one second. Yeah. Sir, our order book as on 31st December is about 1400 crores. So by when do you think this order book will be fully executed?
Krishan Lalit Bansal
Normally our cycle is between six months to 18 months for the order book to get executed. And you know we have a clear cut target of almost around 1150 crores in this coming fiscal year.
Saumil Shah
1150 crores from the current order book. Yeah. Plus the new orders which we will get that also would be somewhat executed in the coming year.
Krishan Lalit Bansal
That’s it. That’s it. That’s it.
Saumil Shah
So by so in the I mean opening remarks I think we mentioned 1100 crore revenue target guidance for FY26. Yeah. Okay. Because you are seeing 1150 will execute from the current order. And plus we’ll get new orders which would be somewhat executed in FY26. It should be more than 1150 crores. Right?
Sameer Agarwal
Sorry, can you repeat actually your voice? Hello. Yeah. Yeah. Hello. Yeah.
Saumil Shah
Because in the opening remarks you said 1100 crore FY26 guidance of revenue. And now you are saying 1150 crores will be executed from the current order book. And plus we are getting to get some new orders which somewhat would be executed in FY26. Much more.
Krishan Lalit Bansal
No, no, no sir. The total revenue expect expecting we are from FY26 shall be 1100. Which will include the existing order book execution as well as some of the new orders which we will be executing during the fiscal 26.
Saumil Shah
Okay, okay. And I, I, I mean have we reduced our revenue guidance? Because in one of the interviews we heard that we are guiding for. We were guiding for a 1300 crore revenue guidance for.
Krishan Lalit Bansal
No sir, this is the guidance which we are giving first time. And this is 1100 crores after Q3. And as in Q2 earning call time. We declared that we shall be giving the guidance for FY26. So this is the guidance.
Saumil Shah
Okay. That I mean we know that but in one of the interviews I think we heard my management saying 1300 crore revenue guidance by FY26. Anyways. And so I mean the margin, what we are expecting is 19 to 20% on this 1,100 crores.
Krishan Lalit Bansal
Yeah.
Saumil Shah
Okay. Okay. And so I mean one of the, this propane dehydrogenation plant because of the delay, I mean how can we it affect our revenue? So we, we didn’t had other orders in hand, sir.
Krishan Lalit Bansal
You know, I mean what, what you have to consider is that these are very, very large orders and you know, we have to plan them almost six months in advance. That we have to execute it and keep our capacity available for that. You know, if you have to switch over to immediately next order, it will be very, very small order which we did definitely. But it cannot fulfill the gap which a 139crores worth of order can create. Because it’s not possible that we shall have all the matching material, we shall have all the drawings for those particular projects which are in the queue well in advance. So that’s the real issue behind it because. And you know, moreover let us say we had that plant and again the drawings are not there. We shall neither be able to this project, neither will be able to do the other project. So you know, we had to keep waiting for the drawings getting cleared. In the meantime what we did is that, you know, we kept on manufacturing the material which was required for this project. But the revenue conversion started only when the drawings for the final thing started coming in. It is not that we just kept waiting, doing nothing but you know, we kept on producing a lot of raw material which was required for that particular project in our factory. And you know, that is reflecting in our wid that we have. We were doing continuously work on that. But it was not getting converted into revenue because we couldn’t ship it out to the customer because of drawings availability. That is the reason for that. It’s not that we were just sitting idle on that.
Saumil Shah
Okay, so have we received the drawings in the current quarter and now all things are cleared,
Krishan Lalit Bansal
Now all things are cleared in Q4. We are pushing it very hard. We shall be earning substantial revenue in Q4 and you know, we shall be finishing this job in Q1.
Saumil Shah
Okay, okay. So even in this current quarter we won’t be able to expect the full revenue of this project.
Krishan Lalit Bansal
Not full revenue, sir. Not full revenue. Not full revenue.
Saumil Shah
And any guidance for Q4 of this financial year, what would be, I mean revenue guidance so that we can understand FY25 what we can grow over FY24.
Krishan Lalit Bansal
So around 260 to 70 crores of revenue shall be generated.
Saumil Shah
260 to 270? Yeah. And EBITDA margins.
Sameer Agarwal
So EBITDA margin shall be in the range of overall on an average basis in the range of 15, 16%.
Saumil Shah
On a full year basis. Okay, okay, okay. That’s it. From my side. Thank you. And all the best.
Operator
Thank you, sir. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Shivani Parikh from an individual investor. Please go ahead. Mr. Shivani, your line has been unmuted. Please go ahead with your question. Hello, Ms. Shivani, your line has been unmuted. Please go ahead with your question. As there’s no response, we’ll move on to the next question. It’s on the line of Samil Shah from Paris Investment. Please go ahead.
Saumil Shah
All right, thanks for allowing me a follow up. So you just mentioned overall yearly basis we are expecting 15 to 16%. Is my understanding correct? Yeah, because currently I think if I am, if I were to look at, I mean for FY, I mean Q4 of this year, we need to cross 19, 20% EBITDA margin. Only then we can reach to an average of 15, 16.
Krishan Lalit Bansal
Yeah, that would be there. That would be there.
Sameer Agarwal
So what he was trying to say is on average basis for the full year, sir, at least for the current.
Saumil Shah
So from this quarter onwards I think we can reach a 1920 EBITDA margins.
Krishan Lalit Bansal
That’s it. That’s it. That’s it.
Saumil Shah
Okay. Okay. And by until what margins we can, I mean expand this as an. As our revenue increases till where we can go and increase our EBITDA margins.
Krishan Lalit Bansal
So since you know that this would be the capacity utilization first time in fiscal 26. So that will this year will give us the full view of how things are going in terms of whatever savings which we have estimated during the expansion of this facility. So hoping whatever to achieve that. And we are fully on track to achieve this number.
Saumil Shah
Okay. And by when we can expect the project commissioning of the new this pipe plant. So that will be starting with effect from 1st January 2026 in operation. Operations would be from 1st January 26th. So any revenue from that. Project will be only. I mean by maybe by FY27.
Krishan Lalit Bansal
Yeah. So just wanted to clarify. This is a backward integration for our power sector jobs. So we will be utilizing the final output of pipe plant as a raw material for our. For catering our power sector jobs. So definitely the profitability shall come in the total turnover part. Rest. It will come as a raw material cost.
Saumil Shah
Okay. So how much more revenue we can expect from this? I mean this is a completely.
Krishan Lalit Bansal
This. As you said it’s not a new project completely. So it’s a new project. First time we are setting up and to. To manufacture the high wall thickness pipe plants we shall be preparing the raw material. So I mean to say once we will convert that raw material into pipe. Pipe shall become a raw material for catering our power sector jobs. So I mean to say that the labels which we will earned by conversion the raw material to pipe shall be added to our top line.
Saumil Shah
Okay. And how much. I mean how much spend we are doing spending on this project?
Krishan Lalit Bansal
The 90 crores.
Saumil Shah
Okay. So one. I mean we are having two. Two projects ongoing. I mean because there is one more. I mean intimation of 260 crore investment initial 150 crore. And so what is that project?
Krishan Lalit Bansal
Sir, it is a second phase of our new facility expansion. So till now we have already commissioned the installed capacity of 15,000 metric ton. Going forward in nine months we shall be adding another 15,000 metric tons of capacity in our process packing solution domain. And we’ll be spending around 90 crores on that. No, we will be spending around 55 crores. Because some part of the expansion has already been shown under the capital work in progress.
Saumil Shah
Okay. And how much asset turnover we can expect on this project?
Krishan Lalit Bansal
On process piping?
Saumil Shah
No, no. On the asset turnover. I mean the spend what we are doing, it’s asset turnover. On.
Sameer Agarwal
On the expansion. Another 15000 metric and expansion. What we are doing, what is the asset turnover? That means how many times will. It convert into revenue. Yeah, correct. If the cost is 70 crores then let’s assume then what will be the turnover out of that at the full capacity.
Krishan Lalit Bansal
Yeah. So. So around. Around 200 crores of revenue. If we sell the pipes as a raw material to any other customer then 200 crores of top line we are expecting from that pipe plant. So the asset turnover is roughly around 2 times initially in the first fiscal. So there are 2 questions. I think Sameer, you need to clarify this because everybody will get confused. There are two projects going on. One is for the pipe where you are increasing the capacity and the second is the backward integration. I think you need to just explain because people will get confused. So please explain very clearly and separately.
Sameer Agarwal
So the hall high wall thickness pipe plant shall be the raw material for our power sector jobs. So we are expecting to generate a raw material of around 200 crore RUP in the first fiscal post setting up of the plant as revenue that we will be utilizing to cater the power sector jobs. I hope I am clear now. So.
Saumil Shah
So basically I’ll just summarize. From the pipe the the plant on an full capacity utilization we can generate 200 crores of revenue. Right?
Sameer Agarwal
Correct. And.
Saumil Shah
And the backward integration which we are doing on that, what is the max capacity, max revenue potential?
Sameer Agarwal
So as far as the power sector jobs are concerned we shall be executing it from the facility. And we have a total capacity to execute jobs between 800 to 1000 crores of power sector jobs. From this I will put it in some different way that you know when our both the facilities are operational which we are saying that by 1st of January or by let us say 31st of December 25, you know, capability shall be that we shall be able to execute almost around 2,500 crore worth of orders. I’m saying it will be our capability to do that.
Saumil Shah
Okay. At a full capacity.
Sameer Agarwal
At full capacity. All right. I just wanted to. And what is the current debt position on the books? 390 crores.
Saumil Shah
This is a gross debt 390 gross and net debt.
Sameer Agarwal
Net debt is around 120.
Saumil Shah
120 crore net debt. Yeah. After reducing cash balance and all. Okay, okay, that’s it from my sir. Thank you.
Operator
Thank you. The next question is from the line of Kamlesh Jain from Lotus Asset Managers. Please go ahead.
Kamlesh Jain
Yeah, thanks for the opportunity. Just to go back on your guidance for the year. So for the quarter like say you are saying 260 to 265, 260 to 270 crore, that is a 9% growth over last year. And despite the fact that we are expecting one international order to get commission to get executed in this particular quarter and even on next year like say FY26, we are guiding 1100 crore and on one CNBC channel Mr. Bansal has guided that we would be doing roughly around 1300 crore despite the fact that lot of orders getting postponed to FY26. So why, why we have cut down the guidance and that is there in the media. Like say it’s, it’s a video there. So I just want to know about the reasons. And secondly like say the, the delay in execution of some of the orders impacts so much that our revenue declines by roughly around 23% year over year. And I do understand that there has been some delay on the part of your client. But when we are having such a large order book then there is no like scope of error for getting revenue down so much year over year basis, even quarter or quarter basis
Krishan Lalit Bansal
For that I will have to say that you know, quarter on quarter revenues can vary in our type of business. You know, this has been a historical trend also that sometimes Q1 is lean, sometimes Q2 is lean, sometimes Q3 is lean. But normally you know we are able to compensate by the end of Q4, you know, whatever we had been projecting. And this is what has been our historical background. But in this particular case since this order was of very large volume and is very, very specialized materials were required in this. And you know, as I told earlier that you know it was not that we were just idling, we were not doing anything. We were converting the raw material which was just plates into pipes first and then make manufacturing fittings out of that and then you know only assembly portion was left out which was. Dependent on the availability of the drawings. And the moment the availability of the drawings started we started executing it on the next very day itself. That’s why we are saying that we have already built into some portion but substantial portion is getting booked in Q4 of this particular year. So definitely, you know there is a slippage of almost a quarter as far as the execution of this job is concerned. But it is for, you know, from conversion point of view it is very small. But from revenue point of view it is very, very large. Hope I am clear to tell you, you know what I’m trying to say and if you have something more on this, please ask me, I will be able to respond to that.
Kamlesh Jain
I do appreciate that. But like sir, even on like we are having a order book of roughly around. If we see this, this particular quarter of roughly around 1400 crore. And even on the guidance, I just want to know that what level of confidence do we have? Because majority of the orders like even for power it would be from bail. Then in oil and gas it would be largely from major PSU companies. So if the execution slips on their part then how confident are we on the. On our guidance as well?
Krishan Lalit Bansal
Again I’m saying since this was first of its kind project, that’s why it got delayed. Otherwise, you know, once if we are talking of normal power plants jobs or normal oil and gas jobs we are fully equipped to handle such sort of emergencies. But since this was first of its kind we were also not very much aware that what could be the. What could be the pitfalls in this particular. So you know, that’s why it was not possible for us to replace this job with something else. And moreover, you know, again, I will repeat it. It is not that we were just idling. We were just little under utilization of our capacity. But we were trying to convert the basic raw material into the usable, usable raw material for our job.
Kamlesh Jain
Thank you sir. And lastly, net debt figure. Can you provide the figure including short term borrowings and everything?
Sameer Agarwal
Not the term debt, it’s 260 and 130.
Kamlesh Jain
Does it include the short term borrowings?
Sameer Agarwal
Everything. Everything. Everything. Everything.
Operator
Thank you. The next question is from the line of Shrikarsh, an individual investor. Please go ahead.
Shrikarsh
Good morning, sir. Am I audible? Yeah, yeah sir. Regarding our BHCL order, I mean I. Are we finding any inquiries coming like, you know, when do we find the inquiries coming like this quarter, on next quarter or something like that?
Krishan Lalit Bansal
We are expecting a deforming query in the month of April. So that’s what we have been discussing, I mean very, very closely with all those people who are to do this job. And now they have promised that the inquiry will be available with us in April. You know, earlier they had said between February and March, but now they have said it, it will be given in the month of April and you know, maybe another three months to decide the first order.
Shrikarsh
Okay, got it. So the next question is regarding the broad outlook on the, you know, oil and gas sector. So like, you know, there’s a lot of enthusiasm in the upstream stream sector. So are we finding any like, you know, that kind of infuse?
Krishan Lalit Bansal
We are coming even in the downstream sector because we generally cater to downstream like a broad based only on the downstream size side only as of now we are not on the upstream side. So, you know, and since huge lot of volume and huge lot of fees are available in the downstream side of the project. So we should like to concentrate on that only because we have the infrastructure for that, we have the capabilities for that. But you know, we are talking to practically everybody, you know that Renssela is coming up with huge facilities with almost 4 million dimes of, you know, spools which will be coming from them. We are talking to air products, we are talking to Linde, you know, we are talking to petrochemicals also. We are talking to Naira also. You know, these Adani in Aira and you know, Reliance with Way and first time we are talking to them on such massive scale. I’m saying, you know, here we have been doing small, small jobs for liance but we had never worked with Adani, we had never worked with Naira and all those people are now keen to get these jobs done in the workshop. And you know, we the forefront for that.
Shrikarsh
So my apologies for this kind of question, sir. But like you know, like four years, five years, 10 years down the line, how do we see our like the promoter group giving the management to second generation promoter group? I mean to handle the company, sir. So are we going to pass it down to the second generation or third generation or are we going to, you know, manage the company with a qualified business? How is the succession plan going forward? It might be any time limit, five years, ten years down there. And how are we looking at.
Krishan Lalit Bansal
No, perfectly fine question, sir. I am happy that you have asked this question. Let me tell you that we. I would principally I will say that we are already a professionally managed company. I mean major functions are handled by all professionals only. We have departmental heads in all disciplines of our company. We have CEO, we have cfo, you know, they are all professional people. And you know, we, we have people for strategy, we have people for accounts, we have people for projects. You know, all at vice president level or assistant associate, vice president level, general manager level. You know, huge lot of, you know, bandwidth is already available with us. However, you know, if you ask specifically, you know, this is how it’s going to run. We also have a group trust to manage that in future that also has been formed. But at the same time, you know, my second generation, my two daughters are fully involved in the business. They are assisting me in, you know, taking this company forward.
Shrikarsh
Great, great. Thank you sir. Thank you. All the very best. Thank you. Thank you sir.
Operator
Thank you. Participants who wish to ask a question may press star and 1. The next question is from the line of ASNA from HDFC Asset Management. Please go ahead.
Asna
Yeah. Hi. Good morning sir. So I understand that we are giving right now that the guidance that around 250 crores of execution is likely to come in q and some 1100 crores of execution is likely to come in 26. Is my understanding correct? Yes. So. So in this project now that you’re saying that all the issues are now being cleared and it’s fully back on execution for the projects that we are expecting that around now 1400, 1500 crores of execution that might come from today till FY26. Are there any further such orders we see that similar risk could arise or do we have a visibility, clear visibility that this is an assured revenue to a large extent which is likely to come. M
Krishan Lalit Bansal
Ma’am, as of now, whatever order pendencies there they are. I will, I will put it like that. There is no more of routine orders, you know, which we had been doing earlier and there is no, nothing very new in this, you know, which was there in this particular case which has been project which we are talking is, you know, it has huge sizes, it has a very special metallicity and you know, the light sensor involvement was there in everything. Since EAL was also doing it, ELA is also doing it for the first time. So you know they were also dependent fully on all each and every approval from their further licenser. That’s why it happened. But you know, the present order book which we are saying is it’s more of a routine job so we are not seeing any such. You know, challenge that that shall come in the coming year. And we are quite confident and we shall be giving you proper, you know, information and other things on maybe quarter, quarter wise, quarter basis right in the beginning of that quarter. And you know, we can have some sort of a call in between also.
Asna
Understood, sir. And I appreciate that until take the clarity now that we have now commissioned our PAL facility. So we have dedicating our oil and gas execution to Anjar. If I understand. And Pulver will be dedicated to thermal orders now.
Krishan Lalit Bansal
That’s right. That’s you know, is already commissioned. I mean that’s our older plant. And you know, we shall be dedicating it primarily to the power sector jobs in the new plant which we call it as Anjar 2 plant shall be dedicated to the oil and gas plant. And you know, again, I would like to tell you that for Anjar plant the full revenue for the year is already booked from just one customer. So you know that revenue is assured that since we have an order from Dao for almost around 350 crores on job work basis and another 100 crores have been added for the material portion that shall get attributed from that plant. And you know, you can say very well that you know we have the more than full order book just for that part.
Asna
Understood, sir. And so with that is correct that the margins should start materially improving now given that you have a dedicated facility for process industry. Right from Q1. Right from Q1. Right From Q1. Okay. So Q4 will get an impact of spilling over of Q3 and that is where we will get our better operating leverage. But okay, okay, okay, okay. So what, so what remains the guidance from 26 onwards for our EBITDA margin?
Krishan Lalit Bansal
So ma’am, we giving guidance till fiscal 2026 and in coming six months time we shall also be giving the guidance for next year. Yes. So what if that. 26. 26. We are expecting 17, 18% margin. Right, sorry. In 26, what is the EBITDA margin guidance that we’re giving? I wanted to clarify that. 19 to 20% in fiscal 26.
Asna
Yeah. Okay. And then one last question. Like you mentioned that thermal orders inquiries will start coming from April. So by when should we expect them to materialize to actual orders? And again the execution, if you could talk about that, what would be the timeline of that? If the inquiries will start then from. If you could give some guidance as to our Watt terms, how much would it be to begin with? Because DHL is sitting on a very large order book. So for us, how will that translate to in terms of orders? If you could talk about that,
Krishan Lalit Bansal
Ma’am. You know, as I told you, the first inquiry we are expecting in the month of April and we expect that by June they will be finalizing the order. And you know we shall take at least six to seven months time for the first shipment to happen. So you know the. I mean billing will start in Q4 of the incoming fiscal. But you know that shall be major billing. I can only tell you that.
Asna
Okay, so 26 execution will again largely be dependent on oil and gas and the second half only. We can expect some execution for thermal to begin.
Krishan Lalit Bansal
That’s it. Because we already have that order book for the coming year. So you know we are not dependent upon these orders. So you know whatever guidance we are giving, we already have much more order book for that. So there shouldn’t be any risk in executing those orders. And you know, if let us say something gets built in quarter four, it will be just a sort of a bonus or an addition to whatever we’re trying to say.
Asna
One last question. In 26, how do we see the order intake panning out or if could talk about the pipeline that we are bidding for right now barring these thermal orders that we already know.
Krishan Lalit Bansal
If you can respond to this.
Pankaj Agarwal
Yeah, sure. Thanks. Thanks ma’am for this question. We have a great pipeline available with us. We are talking about our 1700 crores. Like which is the. Which I can say it’s a low hanging fruit for us. Those are like in discussion with the customer. But this is, this is including the power business which we are expecting from BH here and LNT both.
Asna
Okay, so how much would you be attributing to thermal in this? 1700 crores.
Pankaj Agarwal
We are expecting around 600 crores from the power sector. 600 to 700 crores.
Asna
Okay. This is for FY26.
Krishan Lalit Bansal
Yeah. Order intake and you will get executed in Q4 and subsequent time.
Asna
Understood sir. Appreciate it. Thank you so much.
Operator
Thank you. The next question is from the line of Jignesh from Diva Capital. Please go ahead.
Jignesh
Yeah, sorry sir, I missed the earlier part. But as per the FY26 execution that you are planning, any major delays that you expect or these are steady state orders that you would. Be able to execute timely along with any. Without any margin impact.
Krishan Lalit Bansal
We already tried to explain that you know the orders order book which we have and which is being planned for execution in the coming financial year routine orders and we are not expecting any challenge in that and you know our margins shall remain intact in those.
Jignesh
Right. And any brief chances of that terminal getting delayed by 1/4 or you see that in for Q1 at least we’ll get some hint whether we are starting to get any orders.
Krishan Lalit Bansal
Q1 we should be surely getting some something. Q1 we should be surely getting something and you know as a matter of fact you know one small order we are already L1 so we are not right now declaring that but we are already in one of the orders from eh
Jignesh
Because if we see in the power sector there has been kind of slowdown in terms of solar project. So I’m not aware whether I think this thermal would have been bidded out the thermal ppa. So any slowdown you are expecting in thermal or it is as per the government’s plan.
Krishan Lalit Bansal
No, absolutely no sir. Absolutely no. You know every day BHL is getting one order or two orders every day. I’m saying you know I you know again I will just like to again inform you a new thing that you know it is not that we are just dependent right now on DHL or LNT only. You know we are talking with lot customers in the international market where you know this power sector is growing everywhere. You know we are talking to few very new customers who are going to put up their plant in Saudi and Middle east for thermal only. I’m saying. So you know it is not that we are just dependent upon DHEL and lnt. So there are huge opportunities available in the with the other private sector players also in the international market.
Jignesh
Finally a suggestion like the kind of results that we have seen this quarter. It would be helpful if we as a investors are given some kind of guidance earlier so that we can avoid such shocks.
Krishan Lalit Bansal
Sir, it is our mistake. I mean I have no. I’m sorry for this thing that you know since we are absolutely new in this field we were not knowing pretty well that you know this is how it has to be handled. Otherwise you know we are. I mean I can assure you from my side that we are one of the most transparent companies so. We shall. Now you know we have come to know that now how much I mean bad feeling it has generated in the investor community. And I will make sure that everybody has the right information at the right time. Even if it is plus or even if it is minus. It is my assurance to you and it’s my 100% conviction that you know we are 100% on track and you know we are bound to give the value for your money.
Jignesh
Okay. Thank you. Sir.
Operator
The next question is from the line of Kamles Jain from Lotus Asset Managers. Please go ahead
Kamlesh Jain
Question for Sameer Ji. Sir, if I see your presentation slide where it is mentioned that net debt is 425 watt crore. So while it reply to question you had that 130 crore of net debt. So just wanted to know on that. So because. Yeah.
Sameer Agarwal
So basically I. I told you 260 crores is our working capital and 125 to 130 crores are. That is the for our fixed assets.
Kamlesh Jain
So net debt is 100. Now net debt is 425 crore.
Sameer Agarwal
Okay. That includes some M1 exchange and other things. So that is part of our creditors. We take part of our creditors. As in my understanding. Otherwise you can say if. If we take that thing in terminate then it will increase. Otherwise it will be under the credence. So this is the only the matter of understanding.
Kamlesh Jain
Sir, I am asking just about. Let me clarify.
Pankaj Agarwal
Let me clarify. The net debt is 425crores. That’s it includes the 21crores of lease liability. And similarly this is how the net debt is read. It has to be the common. It is not what we think it should be read as that. That I have not included. That’s fine. It is 425 crores which includes 21 crores of lease liability.
Kamlesh Jain
I appreciate that something. Thank you.
Operator
Thank you. The next question is from the line of Subhash Singh, an individual investor. Please go ahead.
Subhash Singh
Sir. Good morning. I’m a simple investor. So my question is also rather simple. I appreciate chairman sir’s assurances to the investors. But sir, a simple question is that this event that has happened. Is there any possibility of it repeating again? Suddenly like this has happened. Is there any possibility of it repeating again in future? It’s a simple question.
Krishan Lalit Bansal
I will emphatically said no.
Subhash Singh
Okay, sir, we will take it. Sir, second question. Sir, we have given a guidance of three to five, three fold increase in our revenue in three to five years. Do we stand by it?
Krishan Lalit Bansal
Yeah, we stand by that.
Subhash Singh
Okay, sir, so last question. Third question. Last question is we have seen that we have incurred the expenses but revenue was not realized. So will that happen in Q4 as well?
Krishan Lalit Bansal
No, Q4 will realize the revenue.
Subhash Singh
Okay, sir, thank you so much. Sir, thank you so much.
Operator
Thank you. The next question is from the line of Shivanshu Gupta, an individual investor. Please go ahead.
Shivanshu Gupta
Yes. Hi sir. Sir, my question is regarding the tariffs in the us like given the push towards oil sector and energy sector there. So, so, so like you as a company, I know capitalize on those opportunities. So in terms of, you know, exports of let’s say steel pipes and what all material that you use in your pipe infrastructure. So what impact do you see from tariffs in the country?
Krishan Lalit Bansal
I will not be able to comment fully on that. You know, but whatever information I have or whatever way we have been working with the US companies because you know, some tariffs are already in place. Are already in place. You know, it has never impacted our business. It has never impacted our business. But you know, I really cannot say you for sure that it will not have any impact in future.
Shivanshu Gupta
Okay. And sir, what about the competitors in your sector? Like the, like the kind of competitors that you compete with? Those are international customers with you know, similar margins or similar order books. Like how do you comment if the tariffs were to impact?
Krishan Lalit Bansal
I mean, you know, I don’t think we shall be impacted with that. You know, we are since we are already in the best cost country or the low cost country profile. So you know what? Labor cost is definitely much cheaper than other people’s labor cost. And you know, we, we win because of our economy. Economy only because of our competitive prices on this.
Shivanshu Gupta
Okay. Okay, that’s it. Thank you. Thank you.
Operator
Thank you. Ladies and gentlemen, this will be a last question. It’s from the line of Ibasha from iCurus securities. Please go ahead.
Vaibhav Shah
Yeah, thank you very much for the opportunity. So my first question is what has been the overall quantum of order intake for the 9M FY25 and for the 3Q and what is the. Bifurcation of this order intake between exit power, oil and gas and process industries.
Krishan Lalit Bansal
Panka sir, can you throw a light on that?
Pankaj Agarwal
So come again please. I didn’t get the question.
Vaibhav Shah
So sir, what is the Our overall order intake for 9 MF525 and for the 3Q and what is the bifurcation between end user industry I.e. power, oil and gas and process industries.
Pankaj Agarwal
So I just said that. That we are expecting around 1700 crores orders in the coming financial year. And out of that around 600 to 700 crores will be from the power sector. And the meaning will be from oil and gas sector only.
Vaibhav Shah
So this is regarding the historical for the 9M FY25 and for the quarter 3Q.
Pankaj Agarwal
Same there. Because we are expecting this power business from two major customer like BHEL and linking and BHL. We are expecting somewhere in June as Mr. Bansal said. And from August September we are expecting from lnt.
Vaibhav Shah
Okay. Second question is regarding the Our mix between sale of products and job work. How it would fare in our outstanding order book.
Pankaj Agarwal
I’m sorry I don’t have the data right now with me. But it would be around 300 crores order. So like for the job work and remaining is with material now.
Vaibhav Shah
Okay. So sir, I just wanted to have more clarity on my first question. So sir, I. I was asking about the. Our overall order intake. So what is our historical split for. Let’s say for first nine months of FY25 between power, oil and gas and process industries order intake for 9M FY25.
Pankaj Agarwal
You mean first nine months. Yeah. Yes. Yes. It would be around 60. 70% order will be good within nine months and ratio. As I said that we are expecting major order book from power sector now from the ESL in June which will be the first quarter and August like from some other customer. So it would be around.
Vaibhav Shah
Sir, it is on the historical order intake.
Pankaj Agarwal
We shall share you the data. He may not be having. He’s asking for the order date from April to December this year. Or April to February this year at least.
Sameer Agarwal
Yes. I don’t have the data available with me right now. But we’ll share with you.
Vaibhav Shah
Sir, I just wanted to clarify. So by and large orders which we have booked. During the fiscal 25 are from oil and gas sector.
Pankaj Agarwal
The major orders are the PDH order, sorry Dow order and Namali Girl order which is basically cumulative to 700 crores of order book. Besides that we have other miscellaneous orders. Around 150 odd crores are from power sector for export orders.
Vaibhav Shah
Okay sir, understood. Thank you.
Operator
Thank you ladies and gentlemen. That was the last question for today’s conference call. I now hand the conference over to the management for their closing comments.
Sanjeev Sancheti
So thank you everyone for joining us. And we are hoping to do whatever we have promised and we are really thankful for all these stakeholders keeping trust in our company and handholding us and amazing support throughout our period. Thank you so very much.
Krishan Lalit Bansal
Thank you sir. Thank you so much. So you know again, one closing remark again from my side that you know, we are fully committed to the growth of the company. We are fully committed to ensure that, you know, the value of these stakeholders is met and there shouldn’t be any doubt. And we really apologize for, you know, whatever has happened for Q3 and we shall ensure or we shall assure all of you that you know, you will have the timely information in case of any such eventuality in the coming future which we do not foresee at all. But still, you know, we shall be keeping you abreast of all the developments which are happening in our company. Thank you so much.
Operator
Thank you on behalf of Equator Securities Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.