DEE Development Engineers Ltd (NSE: DEEDEV) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Unidentified Speaker
Krishan Lalit Bansal — Chairman and Managing Director
Brham Prakash Yadav — Chief Financial Officer
Analysts:
Unidentified Participant
Anand Venugopal — Analyst
Kamlesh Bagmar — Analyst
Uttkkarsh Chanana — Analyst
Ram Modi — Analyst
Presentation:
operator
Good afternoon ladies and gentlemen. A very warm welcome to Quarter 3 and 9 months FY 2026 earnings conference call of D Development Engineers Limited from the senior management we have with us today Mr. Krishan Lalit Bansal, Promoter Chairman and Managing Director and Mr. Bram Yadav, Chief Financial Officer. 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 Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anand Venugopal from AD Factors PR. Thank you. And over to you Anand.
Anand Venugopal — Analyst
Thank you Michelle. Good afternoon everyone. We welcome you to the Q3 and 9N FY 2026 earnings call of DE20 Development Engineers Limited. Before we begin the earnings call, I would like to mention that some of the statements made in today’s call might be forward looking in nature and hence it may involve risks and uncertainties including those related to the future financial and operating performance. Please bear with us if there is a call drop during the course of the conference call we will ensure the call is reconnected the soon. I will now hand over the call to Mr.
Kishan sir to share his views. Over to you.
Krishan Lalit Bansal — Chairman and Managing Director
Thank you so much. Thank you so much. Good afternoon everyone and thank you for joining us. I hope all of you have had the opportunity to go through our investor presentation which has been uploaded on the exchanges. Over the past few quarters we have been consciously strengthening our core engineering franchise, improving execution intensity and completing the major building blocks of our growth CapEx. This phase of investment is now nearing completion and we are beginning to see its benefits reflecting benefits reflect in operating performance, capacity utilization and margin profile. Importantly, our core business process, piping, manufacturing solutions, heavy fabrication and others continue to be our main value, accretive and margin driving businesses.
And this is clearly reflected in the improvement in our operating performance over the last nine months. In Q3 FY26 we delivered healthy growth in revenue and EBITDA driven by strong execution in the core business. While the CFO will walk through you through the detailed financials I would like to highlight that core business EBITDA per nine month FY26 stood at 129.8 crores representing a year on year growth of 175.5% driven by better execution, improved utilization and operating leverage across our facilities. This core business EBITDA excludes the losses from the non core power segment which are reflected at the consolidated level.
From a broader perspective, the policy and investment environment remains supportive as highlighted in the recent Union Budget 26:27 the government has maintained a strong focus on capital expenditure with FY27 capex budgeted to grow by about 11 to 12% over the revised estimate along with sustained allocations toward infrastructure, transport, energy and industrial corridors. This is complemented by encouraging trends in our overseas market as well which form a meaningful part of our core business where investments in energy, process industries and infrastructure are also gaining momentum. Together, domestic and international demand drivers are creating a strong multi year opportunity set for complex core offerings across process piping, manufacturing solutions, heavy fabrication and other businesses.
Strategically during the quarter we have further sharpened our focus by clearly segregating the business into core and non core segments. Our core business comprises process, pipeline, manufacturing solutions, heavy fabrication and others which includes our MOSIFS acquisition while the non core business is the power generation division. Within the non core segment we are actively pivoting towards biomass pallet manufacturing and exploring the inert IT structured to house the additional pallet capacity with the objective offering financing capital and limiting incremental cash outflow from the power segment. This approach is aimed at improving capital efficiency, reducing cash burn in the power business, enhancing integration with our biomass platform and creating a more sustainable and scalable model over the medium terms.
On the execution front, the NJAR facility is now fully operational and is contributing to revenue growth and operating leverage as utilization ramps up in parallel, our seamless pipe plant is progressing well and is nearing commissioning. As approved by the board, this facility will have an annual quad fee of 7000 tonnes with a capex of about 90 crores of which 22.5 crores will be funded through internal accruals. At optimal utilization we expect this plant to generate peak annual revenue of around 450 crores with an IRR of approximately 30 to 35%. Given the high alloy, thick wall and application critical nature of the product mix, the plant will manufacture thick walled seamless pipes up to 120mm using alloy and stainless steel grades catching to critical applications such as large thermal power plants and subsea and other high spec projects.
This is strategically important backward integration initiative that will strength our capabilities in high spec applications, improve supply security, support margins and reduce lead times. With the current CAPEX cycle nearing completion. We expect better assets terms, stronger cash generation and a further improvement in return ratios going forward. Looking ahead, we continue to see good demand visibility for our core business particularly from the power sector, apart from opportunities in oil and gas and process industries both in India and abroad. With a strong order pipeline, improving operating leverage and most of our growth CapEx behind us, we believe he is well positioned to compound profitable growth and create sustained long term value for our stakeholders.
Now I invite our CFO Mr. Brahm Yadav to help us through the financial highlights of the quarter. December over to Mr. Please.
Brham Prakash Yadav — Chief Financial Officer
Thank you sir. Good afternoon to everyone on this call. I will now take you through our financial performance for Q3 and 9 month FY26. During the quarter we reported a strong growth on all our key performance parameters like revenue from operation for the Q3 stood at 286.7 crore registering a year on year growth of 77% and for nine months stood at 780.4 crore in INR registering a year on year growth of 44.3%. Our operating EBITDA for Q3 was rupees 47.6 crore up by 740.9% on a year on year basis driven by a low base in the previous year and strong operating leverage this quarter.
For the nine month figures for the operating EBITDA stood at rupees 127.6 crore which is up by 111.7% year on year basis Operating EBITDA margin improved to 16.6% in Q3FY26 as compared to 3.5% in Q3FY25 and stood at 16.3% for nine months as well up 11.1% from corresponding period last year. Therefore consolidated operating EBITDA is 127.57 crore for the nine months which is after adjusting one time heat of 4.2 crore with respect to labor code impact and along with 14.64 crore operating EBITDA loans in the non core business this is power generation division. If we exclude these impact Both of them 18.84 crore if we exclude our operating EBITDA would have been 146.4 crore instead of 127.5 crore.
Similarly the operating EBITDA margin improved to 19.6% so for nine months FY26. Now the overall picture profit after tax is for Q3 FY26 18.6 crore while nine month FY26 tax stood at 49.5 crore reflecting a return to profitability on a quarterly basis and a year on year growth of 308.2% for nine month period. This performance was primarily driven by operating leverage supported by higher execution momentum and improved capacity utilization. Friends. Lastly, I would to highlight that our robust order book indicates strong multi year revenue visibility. We remain committed to execute key projects to build a project portfolio that supports our profit and expanding our footprint across relevant markets. With this I would like to open the Question answer and look forward to receiving your question. Thank you.
Questions and Answers:
operator
Thank you very much sir. Ladies and gentlemen, we will now begin with a question and answer session. Anyone who wishes to ask questions may please press Star and one on their Touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press Star and one to ask questions. The first question is from the line of Kamlesh Bagmar from Lotus Asset Managers. Please go ahead.
Kamlesh Bagmar
Thanks for the opportunity and excellent performance over the last couple of quarters. So just one question. Just wanted to understand that as we highlighted in our opening remarks that there was roughly around 14 and a half crore of loss because of our EBITDA because of tariff revision in the power business. So if I see last year, so our revenue contribution from the power business was roughly around 10% and it was operating at roughly around 20% EBITDA margin. Even if I see this nine months. So like assuming 9 to 10% of revenue contribution, like assuming that there has been no tariff revision, Even like the 10% would have been the revenue contribution and 20% would have been the margin.
So on our overall margin the impact would not be have been more than 20bps. So we have reported 17.4% margin for business that is piping and fabrication, the impact has not been more than 2030bps because the revenue contribution of the power business has only been around 10% and even in the EBITDA the contribution was roughly around 8 to 9%. So why we are saying that the EBITDA impact is roughly around 14.6 odd crore. So just wanted to understand that.
Krishan Lalit Bansal
Brahmi, can you answer or should I?
Brham Prakash Yadav
Yeah, please sir.
Krishan Lalit Bansal
I mean if you can take it, it’s good. Otherwise I will go.
Brham Prakash Yadav
You can explain.
Krishan Lalit Bansal
Thank you. Thank you for your question. You know I will simply. I mean I will not be able to comment on the exact numbers. But you know what I would like to say is that you Know, one of our plants was earlier operating at the rate of 8.57 and now we are operating it at 3.5 rupees. That means there is a loss of 5 rupees per unit. So that means further, you know, if we are right now booking a revenue of 1.5 crore per month, it would have been around 4 crores. In, in a normal circumstance it would have been 4 crores.
So that means around 2 and a half crores rupees loss is coming every month which will directly impact the EBITDA and the PET only because all expenses we are incurring on that, except for the very little on the full saving because we are running it at slightly lower capacity. Otherwise, you know, all other expenses, everything is going on and hence it’s a direct impact of almost around you know, three crores or two and a half crores every month, which is around 22.5 crores in terms of this thing. And if we consider power sector, our power division also, which is in the main company, so there also, you know, we are getting a hit of almost around one and a half to rupees.
So you know, there also it is the same impact. So you know, net effect translates through actually 14.3, which is the exact working which we have done on paper and we can share with you if you want it. There is absolutely nothing hidden in that because it’s very clear, you know, as I have tried to explain that it is because the tariff revision has been downwards. So it’s the direct impact.
Kamlesh Bagmar
I agree, sir. But like when we were guiding like around 19 to 20% margin before this hit.
Krishan Lalit Bansal
Yeah.
Kamlesh Bagmar
So you know,
Krishan Lalit Bansal
at that time, at. That time full of beta was taken at that time. Full. There is margin. Yeah, yeah.
Kamlesh Bagmar
So. So in the core piping business we are making 17.4% margin and even making. So in this nine months we have done 17.4 EBITDA margin. So 1.
Krishan Lalit Bansal
Yeah,
Kamlesh Bagmar
doubt on this margin. So have we took that labor code impact in the operating EBITDA or it. Is below
Krishan Lalit Bansal
operating over the only.
Kamlesh Bagmar
No, so four and a half.
Brham Prakash Yadav
Yeah, yeah, let me explain. 4.2 crore is about already included in the operating beta. Already that hit we have taken, we.
Kamlesh Bagmar
Have given 45.8 crore of EBITDA. Okay sir. And if you see the overall EBITDA for this quarter, it is 47.6. Yeah, yeah. So I want to just ask that is this 45.8 crore EBITDA which you have mentioned as the core operating EBITDA. So does it include 4.2 crore of labor for impact or not, sir? Because.
Brham Prakash Yadav
Yeah,
Kamlesh Bagmar
otherwise.
Brham Prakash Yadav
Yes, yes, it. It is already included.
Kamlesh Bagmar
So that’s why the whole comparison becomes non meaningful. Because. Because when we compare with the ebitda. Because overall EBITDA doesn’t have the impact of labor code. While your core operating EBITDA has the impact of this 4.2 crore.
Brham Prakash Yadav
Pardon?
Kamlesh Bagmar
When you have. So you have given 45.8 crore of ebitda core business ebitda.
Brham Prakash Yadav
Yes.
Kamlesh Bagmar
So does it include the labor code impact or not?
Brham Prakash Yadav
Just a minute. Yeah, it includes.
Kamlesh Bagmar
Okay. So can you tell the figure what is the sir EBITDA core EBITDA before this labor code impact? Because I would just ask my total patience. You have given the total EBITDA 47.6 crore which is before the impact of labor code. And you have given the core EBITDA for your like say piping and fabrication which is 45.8. And if I come deduct this 45.8 from 47.6 then the resident EBITDA which is 1.8. It is for the power business. When we are saying that our power business is making losses then how can there be the 1.8 crore EBITDA then? Positive EBITDA.
So that means that in 45.8 crore we have from the impact of Liverpool. So it is not comparable. You should have given the EBITDA which is before the labor code impact in the presentation.
Brham Prakash Yadav
If there is any confusion. Anyway. Anyway, if there is any confusion we will send the revised filing on the stock exchange. But again let me make it very clear that you know, our original guidance was 18 to 20%. I mean without considering the impact of this tariff revenue. And at that time there was no thought of that this labor code impact will also come. So even if you exclude this Labor. Labor code impact, you know, we are absolutely. Absolutely. I’m saying as per the original guidance only, you know, just considering the impact of the power.
Power division tariff. So you know we have been given. We have been giving the guidance in all our last three calls that you know, we shall now be doing anything between 16 to 18% considering this particular loss. And we are absolutely on track. As I told you know, we are much better than you know what we have projected in the last two calls on this particular subject.
Kamlesh Bagmar
I totally appreciate that. It’s more often I say data presentation issue. Nothing.
Brham Prakash Yadav
I mean we will, we will and. No, no, we will. We will. We will rectify. We will rectify that. We will rectify that. Since you know there is a change of team there may be slight issues here and there and we will rectify that and immediately send a revised filing on the stock exchange today itself.
Kamlesh Bagmar
Also secondly on the now you have highlighted that your core business. So in this nine months we have done 17.4 or pro EBITDA margin. So now going forward your CMS will come in and you will have a far better execution as the orders are coming from the power sector. So where do you see our margins? Only on the core business because over as you had highlighted that a lot of things happening there. So going forward in FY27 where do. We see
Brham Prakash Yadav
18 to 20% sir, as we have been telling it will be 18 to 20% in this range. There’s absolutely no doubt on that. 18 to 20%.
Kamlesh Bagmar
And lastly sir, what is the commentary on the order? New order coming in. So what level of orders we have seen or to book in this particular quarter?
Brham Prakash Yadav
Sir, in this quarter, you know we are well on track to get many orders. I mean many bids have been opened and we have been declared L1 and we are not able to disclose it, you know till we get the formal order. But I can tell you that we whatever anticipations, whatever guidances we have given earlier, it stands true. And you know many, many tenders I will say that have been opened and we are quite, we are L1 in many of those.
Kamlesh Bagmar
What would be the ballpark size of those order? Like say
Brham Prakash Yadav
maybe 300 to 400. Maybe 300 to 400.
Kamlesh Bagmar
Okay, where we are almost near 12 sir.
operator
I’m sorry to interrupt you. Mr. Bagmar, I would request you to kindly rejoin the queue for follow up questions please. There are others who are waiting for their chance. Thank you. We’ll take the next question from the line of Utkarsh Chanana from SMC Private Wealth. Please go ahead.
Uttkkarsh Chanana
Hello. Am I audible?
operator
Yes, yes. But there is a background noise from your end. I would request to kindly move to the quite a place please.
Uttkkarsh Chanana
Sure sir. Good afternoon and congrats for a good performance. Sir, I just wanted to ask that why is the current tax in this quarter so low? And for future esteem, for future estimates, can you guide what can be the tax we can assume for our estimates?
Krishan Lalit Bansal
Could you get his question? I think it’s related to tax or. What.
Uttkkarsh Chanana
The tax charge this quarter is of 8%. There is a. Just a minute. There is a dapper tax as well. Hello.
Brham Prakash Yadav
Hello.
Uttkkarsh Chanana
Yes sir. So I just wanted to ask that what can be the normalized tax rate we can take for future estimates?
Brham Prakash Yadav
22% plus pass and surcharge, it is 25.17%.
Uttkkarsh Chanana
All right, so thank you so much.
Brham Prakash Yadav
Yeah, thank you.
operator
Thank you. A reminder to all the participants that you may please press star and one to ask questions. The next question is from the line of Dash Daksh from NEXA Securities. Please go ahead. Daksh, please proceed with your question. I have unmuted your line.
Unidentified Participant
Yes, good afternoon, sir. So my question is regarding the palette which we are going to start from the next quarter. So can you just reiterate on the timeline from. From FY27, it will it be EBITDA. Neutral or will it still be. There will be some operating losses for the foundation.
Krishan Lalit Bansal
It will be absolutely a bit done neutral. It will be absolutely a bit unuttered. Our pallet plant is about to get. Commissioned and the trials are going on and we may make some sale in the month of March. But you know, the full capacity sales will start maybe in the month of April and it will be definitely a bit nothing neutral. There will not be much again, there may be still very little gain. But you know, whatever losses we have incurred in this particular year, which, which is almost. Which is going to be almost 36 crores will not be there in the coming year.
Unidentified Participant
Okay, sir, so from quarter 127 you. Can expect to be.
Krishan Lalit Bansal
That’s it. I mean this loss will not be there. You can assume just that this loss will not be there. But there may not be any gain also. Much gain also.
Unidentified Participant
Got it. Thank you.
operator
Thank you. The next question is from the line of Prisha Shah from RS family office. Please go ahead. Hello.
Unidentified Participant
Am I audible?
operator
Yes, ma’. Am. Please.
Unidentified Participant
Okay. Hi sir. Good morning. So I have. Good. Good afternoon. I have couple of questions. First being, you know, with the 3x revenue growth target which you have given for over three to five years. So what specific operational efficiencies are being implemented to ensure that our asset turn stays above 3x5x range?
Brham Prakash Yadav
You know, the. Our major Anjar expansion is going to be responsible for that. We shall be doing a lot of, you know, revenue from that particular plant. And at the same time, this being very near to the port, we shall be having a lot of saving in terms of logistics, cost. Plus at the same time, this being an absolutely new setup which has been set up considering our lean manufacturing principles, we expect a very huge operational leverage also which is as a matter of fact which has started showing in our present results also. And you know, this plant will be dedicated purely for oil and gas sector and seamless pipe manufacturing business.
And about The Darpur plant, our earlier plant shall be dedicated to the power business. You know in power business we get much higher revenue because of the nature of the work we perform. And that is the basis of reaching 3x level by 30.
Unidentified Participant
Okay sir, understood. I have one more question pertaining to industry. So you know with the global interest now being focusing on nuclear energy which is reviving how is de utilizing its NPCIEL qualified capabilities to secure the larger share of these international piping contracts.
Brham Prakash Yadav
We have. We are already in advanced stage of discussions with NPCL and you know some private players also who are setting up the plant right now. And you know that is our next focus on the business growth. You know sometimes people ask that what after you know this present cycle of power sector finishes then you know to answer that to everybody is that you know we are having lot of focus on diversifying ourselves into nuclear business, into semiconductors business and you know pharma business. That’s our going to be our next major line of diversifications of course in the piping manufacturing solutions only.
Nothing special but you know our focus may shift to these particular sectors in a to a large extent.
Unidentified Participant
Okay, so that, that answers my question. Thank you so much for the opportunity.
Brham Prakash Yadav
Thank you.
operator
Thank you. You will please press star and one to ask questions at this time. The next question is from the line of Ripundra from Amar Alliance Equity Research Private limited. Please go ahead.
Unidentified Participant
Good afternoon sir.
Krishan Lalit Bansal
Yes please.
Unidentified Speaker
Welcome sir. First of all I want to congratulate you on an excellent result this quarter. I have few questions pertaining to your business operations if you may allow. I need to understand the inventory holding. When we see an analyze the inventory holding comes to a greater period of time as compared to other businesses. Would you please put some light on it sir. As per our total sales how much inventory do we need to hold on a stock book and how does this business operate?
Krishan Lalit Bansal
So this question is coming every time and we are trying to respond it every time also. But again you know I will just try to explain you once again. You know since we are a project driven company so you know we have to do everything as per the requirement of the projects. It’s all for. They are all 100% tailor made items which we are making and they are made as per the customer specs. And we say that it’s built to print, it is not a standard product, that we will manufacture it, store it and distribute it through our distributor network.
So you know whenever we get an order we have huge amount of specifications involved. For each order there is a Particular vendor list involved that we have to buy the material from a particular vendor only. So you know that all those things force us that as soon as we get the order we have to immediately place our orders on our vendors because many of the items will come from import and you know, the C time shipment and the manufacturing time, I mean most of the products will be manufactured against our, you know, requirements. We are not sourcing practically anything, you know, which are available off the shelf.
Our buying from the traders is hardly 1 to 2% of our total buying. The rest every buying is coming from the manufacturing mills and 50% of it is import also. So you know, this forces us that, you know, we have to place the orders immediately and you know that creates a situation where we have to hold the inventory as per our, you know, order booking. You know, our order booking is, let us say today is around 1300 crores. So you know, we have to have an inventory of almost 600, 500 to 500 above birth just for raw material and other things only.
So that is the real cause for our inventory and this is our nature of business because we have to follow all these specifications given by the customer and we have to maintain all the item. We have to get the items first and then only, you know, we can start manufacturing the spools or the skids, you know, which we are manufacturing. That’s the main cause for that. So you know, you have to consider our inventory not from the previous previous year sales. You have to consider our inventory considering the present order book.
Unidentified Participant
I got it. So that means the moment we have more of orders in hand and executed order also in time, that means our inventory is hot. Inventory the authorized because we need to be ordering and we need to hold that specific inventory for that particular project or the order in the coming execution.
Krishan Lalit Bansal
Correct? Correct. Correct. Correct. Absolutely sir.
Unidentified Participant
Okay, okay, okay, fair enough. Sir, I have another question on your existing debt cycle. Sir, we understand that we brought in, we came to public, the IPO came in one and a half, two years back and now there was an expansion further is there since we have a good margins on our business. I see you are able to reduce our debt cost or interest cost. It would directly impact the bottom line percent of the business. Is there any vision of the management towards reducing the debt going forward?
Krishan Lalit Bansal
Yeah, yeah, definitely. Let me again answer that question sir. You know, as I just said in my opening remarks that you know what, Capex CYC is almost at the finish, finish line state. So whatever Capex needs to be done, I will say 95 to 98 CAPEX will have that happened within March of this financial years. And you know in the coming years whatever new capex will be there it will be primarily for maintenance purposes only which may range between 10 to 15 crores or something like that. So there is absolutely no. No new inflow of any term loan or something like that. And you know every year we shall be paying our almost around 40 crores towards repayment of the debt which is definitely going to reduce our burden on the this interest cost and other things. Plus you know we anticipate that you know there will be huge improvement in interest costs because of positive cash flows which we are expecting in the expecting in H1 of FY27. FY27. So you know these two factors make us quite upbeat that you know we should be able to reduce our financial cost much lower than you know what we shall be having in this year.
Unidentified Participant
Thank you so much. Sir, I have just one last question if you could allow me. And that is in our own business that is customized piping solution that we call in the investor presentation also at the optimum utilization of our existing capacity. What should be our top line at that level once we achieve above 90% of the total production capacity. Sir,
Krishan Lalit Bansal
2300 to 2500. 2300 to 2500 with the present facilities.
Unidentified Participant
Thank you so much for your valuable time and all the rest for the coming quarter. Sir. Thank you.
Krishan Lalit Bansal
Thank you sir. Thank you so much.
operator
Thank you. The next question is from the line of Ram Modi from Prabhudas Leeladhar. Please go ahead.
Ram Modi
Hi sir, I’m sorry just joined little late but I just wanted to check about our power plants in North. So we have been, I think we lost almost 1516. So whether we see them getting resolved over next six months or it will take a longer time on the litigation side.
Krishan Lalit Bansal
Sir, you know I will say that I. I will talk first I will talk about our older power plant which is in the name of Malwa Power Private limited in which you know our tariff got Revised from almost 8.5 to 3.5 rupees. It’s you know final hearing with the PSERC were held around 10, 15 years back and we are expecting order at any given time. And you know again I will say that in that order we will not get definitely get 100 relief. But you know whatever relief we are expecting is that you know it should be at par with the tariff which we are getting at power division.
You know where it will, it will become sort of a cash neutral Thing there will not be any further drainage of cash from the operations of the power plant if just by getting this new tariff order. But you know again as we have been telling to mitigate that situation we have already put a pallet manufacturing unit for biomass pellets and it’s under commissioning and we may be declaring its COD very shortly. So you know, with that in place, you know definitely, you know whatever was the negative impact that will be removed altogether and we may not be earning very high income in that but it will not be a cash drain.
Ram Modi
Okay. And on the second top answer,
Krishan Lalit Bansal
same same situation. I’m telling you because in the second, second system the tariff was revised to 5.87 or something like that for which we have already filed our appeal with the High court. It is still to be heard. So you know we are not sure when that outcome will come. But what I’m trying to say is that you know with the tariff of this 5.8 and if we get a similar tariff or let us say 5.5 or something for the Malwa power and with the commissioning of the pallet plant so you know we shall be cash neuter or we shall be a bit done neutral from this particular division.
And you know whatever loss we are going to incur in this particular financial year which is around 36 crores will not happen in the FY27 at all.
Ram Modi
But I am just lastly sir, on this itself, sorry for extending this but if suppose the husk or those prices move up or down whether this 5 rupee 80% production cost will remain relatively stable for us because again this will be a long term PPA which will be signing with the Punjab Electricity Board.
Krishan Lalit Bansal
So we are practically not using any husk. We are using paddy straw for which the price is not likely to vary much. And you know that point escalation also we get you know in the ppa. So since we are not using paddy husk so you know we are quite well insulated from the price escalation since we are using only Pedestra.
Ram Modi
Okay. Because I think this year we are P L actually got significantly drained because of this itself. Power plant itself.
Krishan Lalit Bansal
Yeah. I am telling you around 36 crores is the drain right. This year, in full year this will. This much will be the total drain.
Ram Modi
Okay. And secondly on you know our guidance on the year end power, you know the order book still remains the same. Are we still seeing some delays on this?
Krishan Lalit Bansal
No, no we. We are absolutely on track sir. We are absolutely on track. Since you joined late, I tried To. Yeah, explain.
Ram Modi
No need for repeating me. Sorry.
Krishan Lalit Bansal
Yeah, I have already told on that. We. We are, we are well on track, sir. I will just tell that we are well on track.
Ram Modi
Okay, thanks a lot sir.
Krishan Lalit Bansal
Thank you. Thank you.
operator
Thank you. Before we take the next question, a reminder to all the participants that you will please press star and one to ask questions. The next question is from the line of Prashant and individual investor. Please go ahead.
Unidentified Participant
Hello. Thanks for the opportunity. I have a couple of questions actually. If I look at slide number 15 of your presentation. You have. It is mentioned that the order book is 1303 crore as of 31st December 25th. And there is a domestic and an exports plate also given. If I want, could you please break it down into how much is PSU and how much is non PSU split of this order book?
Krishan Lalit Bansal
That is difficult to answer immediately. But you know, in the coming year a lot of PSU business will be there which may be almost around, you know, domestic revenue, it might be around 40 to 60% of the domestic revenue maker come from PSUs only in the coming years.
Unidentified Participant
Okay.
Krishan Lalit Bansal
But it’s a ballpark figure. I, I mean I’m just telling you from my mind. Otherwise if detail is to be required, we have to work it out.
Unidentified Participant
So is it that, I mean export. Most of the orders is from private players.
Krishan Lalit Bansal
Export is all private players only export is always from private players.
Unidentified Participant
Okay. One of the earlier questions you had mentioned that inventory should be looked in relation to the order book on hand and not the pass. Yeah, that case. I mean my question is, I mean would it be normal or would it. Is it industry trend that we would also get since this involves a large amount of specific procurement. Do we also get some advance for material purchase from the customer or it has to be condemned?
Krishan Lalit Bansal
Sometimes we get. Sir, sometimes we do not get. Particularly from companies like BHL we do not get. But from others we get it against bank guarantees. But it’s very, very limited amounts or it’s. I mean it doesn’t fill our hunger. But you know, whatever we get that’s good. And. You know when it’s a. It’s, it’s. It. It’s the problem of our business or. Whatever you call that.
Unidentified Participant
Okay, okay. And just from the, I mean we are manufacturing, Sorry, we are procuring pipes for fabrication. I mean in terms of the feedback or the conference calls of the pipe manufacturers, they said that it is a very soft market and know they have to extend a good amount of credit to maintain sales. So other way around since we are consumers, I mean, are we getting that benefit? How do you see the input cost trend and the credit terms and how does, how will it help us in managing capital?
Krishan Lalit Bansal
You know, as I’m telling you, when we are talking to the mills, we have to pay them upfront. They do not give any leverage. The maximum leverage they give US is the LC which they can extend up to 30 days or something like that, but nothing beyond that. But if we are buying it from traders, we do get some credit. 30 to 60 days, there’s nothing beyond that. But as far as the price trend is concerned, there is a little bit upward trend right now. But you know, I don’t know whether you have been attending the previous calls or not.
Our stand on that is that, you know, we get, we remain primarily insulated because we order the material almost immediately after receipt of the orders. So now if we get the new order, now let’s say if it has a, if it was previously coded it, they have a very little impact but it is not going to hurt us in the long run.
Unidentified Participant
So just to understand, we may, the moment we get order, we in the back to back we place an order for our inputs.
Krishan Lalit Bansal
That’s it.
Unidentified Participant
But at the time of placing order, do we have to make the payment or do we make the payment at the time of when we take the delivery which can be, you know, one. Quarter,
Krishan Lalit Bansal
that is against delivery only. But sometimes we have to pay the advance.
Unidentified Participant
Okay, okay. And on the, you know, on the fabrication side, one of your competitors has mentioned they are getting a large amount of business from heat exchanger. So is that addressable segment for us or. We are not focusing on that.
Krishan Lalit Bansal
No, no, no, we are not into that industry. It’s a specialized industry. So we, we are not into that. Absolutely. We, we are just. Our core business will remain piping manufacturing and piping solutions only. We are not into heat exchanges.
Unidentified Participant
So the fabrication basically will address which piping markets only or anything on the, any adjacencies.
Krishan Lalit Bansal
All, all plants. You know, in any major plant, whether it’s a power plant or it’s a refinery, it’s a petrochemical, it’s a semiconductor industry, it’s a nuclear plant, it’s a pharma plant. You know, you require almost 10 to 15% of the CapEx for any of these plants will go towards piping only.
Unidentified Participant
Sir, I understood. My point was like in your presentation on slide number 12 you have mentioned that. No, you do heavy fabrication then you do tanks, storage vessels, silos, those kind of things.
Krishan Lalit Bansal
You know, heavy fabrication we are already doing in our subsidy called fabricom D. Fabricom private limited. We are doing heavy fabrication. We are doing the wind tower fabrication. You know that’s a separate subsidiary all together. But our primary business remains in terms of pipe spools and skids only and pipe fittings, pressure vessels. Whatever we have shown is we are making it just for our in house consumption only for our skid business.
Unidentified Participant
Okay. Okay. And just last one on the power side, I mean you have explained in detail. Just. I mean is it possible for us to get out of this PPA and go fully on merchant. I mean I know merchant power or sell it through power exchanges.
Krishan Lalit Bansal
It’s not viable because we are into biomass power. So where we have lot of fuel costs. But you know that’s viable nowadays for people like wind and solar. Where there is fuel power is involved into that. And we have lot many other operational expenses where those expenses do not come in picture for solar and wind. And hence it’s not viable. You know our viable rate itself is around a little above four and a half to five rupees.
Unidentified Participant
Okay. Okay.
Krishan Lalit Bansal
Just break even it. I’m saying just break even rate.
Unidentified Participant
Okay. That’s all from my side.
Krishan Lalit Bansal
Thank you.
operator
Thank you. The next question is from the line of Sanket Kakar, an individual investor. Please go ahead.
Unidentified Participant
Yeah. Thank you for the opportunity. Sir. Sir, we initially, you know planned foreign fundraising for incremental working capital. They’re meeting for higher order appetite now in terms of sir next two years. You know, let’s say we are at. 1300 crore order book in December. An incremental 300 to 400 crore. You mentioned it’s in pipeline. So basis closing March we should be around 13, 1400. Right. But for FY27 to be at let’s. Say 2000 crore order book. How we are planning to meet, you. Know those funding, sir. And how that appetite will come.
Brham Prakash Yadav
No, no, no. It will. It will come from our improved cash flow only. It will come from our improved cash flow only. We do not anticipate any new debt. You know if all of a sudden let us say orders were thousand crores come or something like that then we may have to. But otherwise if the orders come progressively throughout the year then you know we won’t require anything because of our internal cash approvals only.
Unidentified Participant
Okay. So immediate let’s say 50 to increase the order book of 50% should not be concerned. Right. Our balance sheet will allow.
Brham Prakash Yadav
That’s it. That’s right. That’s right. That’s very true.
Unidentified Participant
Thank you sir. That’s it.
Brham Prakash Yadav
Thank you.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Christian Lalit Bansal promoter, Chairman and Managing Director of t Development Engineers Ltd. For closing comments. Thank you. And over to you sir.
Krishan Lalit Bansal
Thank you everyone for joining the call today. Our performance this quarter reinforces our confidence in the business and our strategy and we remain focused on execution, capital efficiency and long term value creation for our stakeholders. Thank you once again. Thank you everyone for all your questions and we hope you are all satisfied with our answers and if there is anything you know we we are always open for any. We are always open for anything. Thank you so much.
operator
Thank you members of the management. On behalf of the Development Engineers Ltd. That concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you.
Unidentified Speaker
Thank you.