Epack Durable Ltd (NSE: EPACK) Q1 2026 Earnings Call dated Jul. 21, 2025
Corporate Participants:
Bajrang Bothra — Chairman and Whole-time Director
Rajesh Kumar Mittal — Chief Financial officer
Ajay Singhania — Managing Director and Chief Executive Officer
Narayan Lodha — Executive Director & Group Chief Financial Officer
Analysts:
Bhoomika Nair — Analyst
Vishal Dudwala — Analyst
Anirudha Joshi — Analyst
Raj Saraf — Analyst
Deepali Bansal — Analyst
Arshia Khosla — Analyst
Siddhant Kanodia — Analyst
Sujal — Analyst
Ayush Kothari — Analyst
Nirav Rajiv — Analyst
Akash Jha — Analyst
Pratap Maliwal — Analyst
Samyak Jain — Analyst
Bharat Gupta — Analyst
Nilesh Patil — Analyst
Hemang Kapasi — Analyst
Presentation:
Operator
Ladies and gentlemen, good morning and welcome to the EPAC Durable Q1 FY ’26 Earnings Conference Call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will remain 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 the operator by pressing star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference over to Ms Bhoomika from DAM Capital Advisors for the opening remarks. Thank you, and over to you.
Bhoomika Nair — Analyst
Yeah. Thanks, Karan. Good morning, everyone, and a warm welcome to the Q1 FY ’26 earnings call of Durable. We have the management being represented by Mr Bajang Botra, Chairman and Whole-Time Director. At this point, I’ll hand over the floor to him and he’ll introduce the rest of the management and take the call forward. Thank you very much, sir, and over to you.
Bajrang Bothra — Chairman and Whole-time Director
Thank you,. Thank you very much and good morning, everyone. I’m Bajrang, Chairman of Limited, and I warmly welcome you all to our Q1 FY ’26 earnings conference call. The Board of Directors approved our Q1 FY ’26 results on July 19 and I trust you have all had the opportunity to review them. As many of you know, APAC durables is India’s one of the largest ODM for room air-conditioners. We are steadfastly executing our strategy to diversify beyond our core room air-conditioners business into higher-growth core profitable categories, namely small domestic appliances and large domestic appliances, namely washing machines and air coolers and components.Joining me on today’s call are Mr Ajay, our Managing Director and CEO; Mr Rajesh Kumar Mittal, our Chief Financial Officer at Effect; and Mr Narayn, Executive Director and Group CFO,. They will take you through the details of our operational and financial performance for the quarter. Thank you. With that, I now hand it over to Rajesh Mittal, our CFO, to take you throughout the key financial highlights for Q1 FY ’23. Thank you very much.
Rajesh Kumar Mittal — Chief Financial officer
Thank you, sir. Welcome to our earnings conference call of the first full-year 2026. Let me first thank you, our host of today’s earnings call, is Capital. Now let me give you some of the key financial highlights for the quarter ended and the period under review. For the first-quarter under review, revenue from operations stood at INR662 crores, climbed by 14% on a year-on-year basis. While EBITDA was around INR55 crores, which increased by around 6% on a year-on-year basis with EBITDA margin reported at 8.24%, which expanded by 166 basis-points on a year-on-year basis.
The net profit was around INR260 crores, which declined by 2% on a year-on-year basis. However, net profit margin expanded by 43 basis-points to 3.46%, reflecting better-quality of earnings and disciplined execution even in a challenging environment.
Now I would request our Managing Director and CEO, Mr Ajay Singhania to brief you on the operational highlights. Over to you, sir.
Ajay Singhania — Managing Director and Chief Executive Officer
Thank you,. And once again, good morning, everyone. The first-quarter was a bit subdued due to headwinds in the market, primarily driven by unseasonal rain and surplus finished goods inventory in the industry carried over from Q4 FY ’25. Despite these external challenges, we delivered a resilient performance.
We continued to strengthen our core business fundamentals and added 14 new customers during this quarter with supplies already commenced to three of them. Additionally, a more optimized product mix contributed to improved EBITDA margins and stronger profitability on a year-on-year basis.
From a segmental perspective, our ROC business witnessed a 34% decline year-on-year, mainly due to suboptimal seasonal demand, reflecting broader market challenges. However, other segments demonstrated stronger momentum. The SDA segment grew by 16% on a year-on-year basis, led by healthy order inflows across both existing and new products, particularly with encouraging pre-seasons and demand for air.
Our component segment delivered growth of 556% year-on-year, supported by a solid order pipeline for PCB, copper part, plastic-only components. Our large domestic appliances segment reported a 29% year-on-year growth driven by our continued focus on expanding customer-base. Notably, our product business contributed 77% of total operating revenue during the quarter, reaffirming customer confidence in our core offerings and highlighting strong market adoption. In-line with our strategy to scale and diversify, we also took a significant step-in broadening our component segment.
During the quarter, we entered the energy meter sector by supplying critical components, marking our entry beyond the consumer space. This diversification is a deliberate move to reduce — to reduce concentration risk and position ourselves in adjacent high-growth industries. We see this as a long-term growth lever that strengthens our portfolio and opens up new opportunities across sectors. We remain committed to long-term value-creation through strategic capital investments aimed at expanding capacity and supporting our diversified growth roadmap. By end of Q1 FY ’26, we made steady progress across multiple key locations. We incurred approximately INR50 crores of capex in Q1 FY ’26, primarily directed towards capacity expansion and equipment inspiration for washing machine line, component segment electricity.
Additionally, investments were made in civil and infrastructure work at our joint-venture facility, the subsidiary for and our new greenfield plant in Giwari. These investments, along with the upcoming FinCity facility for, growing customer engagement through new RFQs for the coming season and continued expansion of our product portfolio position us well for the future with a strong foundation in-place and focused execution, we remain confident in achieving our full-year targets and sustaining healthy revenue growth going-forward.
With this, we now open the floor for Q&A session. Thank you.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets 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 Vishal Dudwala from Asset Management. Please go-ahead.,
Vishal Dudwala
Sir, am I audible to you?
Ajay Singhania
Yeah.
Vishal Dudwala
Yeah. So I have couple of questions. My first question is, now that EPAWO is supplying BDL BIDC motors, what bump in revenue and margin do you expect versus buying motors from outside and how quickly will you see cost-benefit once the plant is running at full-speed?
Ajay Singhania
In terms of our new greenfield plant coming up at Diwadi for power, the JV facility, like we shared in our earlier con-call, we are putting up a capacity of 3 million motors, VLDC motors, which is almost 10% of the total India market demand. So with this kind of capacity, we look-forward to a strong margins and revenue growth both in the subsequent years. The current year means first year, we will focus more on ramping-up the capacity, getting the approvals from the customers and also utilizing both for our captive requirement effect durable as well as servicing the other clients in the market.
Vishal Dudwala
So and my second question is on the macro side, like how do you see overall RAC industry demand shaping up this year, especially with the shift to inverter and R32 models and pending design regulations, how positioned its product mix.
Ajay Singhania
So like we have seen a temporary slowdown in Q1 FY ’26, primarily due to unseasonal rains that have impacted secondary sales, especially for. However, this appears to have been a short-term disruption. So the overall growth story for air-conditioned still remains extremely strong and the kind of RFQs which are in the market, primarily with the upcoming revision in BEV, the new lineup of products is ready at EPEC. We will offer a complete range of products starting from 0.9 tonnes to two tons and beyond for our clients, both inverter and fixed speed.
Obviously, with the change in the fixed speed seems to be a more challenging product and we see a continued growth for the inventor segment. And the inverter has already been increasing year-on-year, now almost contributing more than 80%, 85% of the overall AC sales and we see that inverter will further grow in the market. So definitely inverter is the next thing. And R32 is in use in India since last four, five years and it continues to be a green gas and remains to be used. So there is no alternate refrigerant which is currently used in the India market.
Vishal Dudwala
Okay, got your. That’s it from my end. I will wait in the queue for the further.
Operator
Thank you. The next question comes from the line of Anirud Joshi from ICICI. Please go-ahead.
Anirudha Joshi
Yeah. Thanks for the opportunity. Sir, two, three questions from my side. One, how was the industry growth and at least what — in June quarter and we heard the growth has recovered to some extent in June and maybe slightly in July also. So is that a fair understanding or do you see there is no recovery inside? That is question one. Question Two, what would be the inventory in the market, higher than the normal inventory of RAC. Also, lastly, in terms of actually there is no reason — there was no reason for the brands to buy-out the air-conditioners considering there was excess inventory at the March-end. So we see EPAC has done really well. So have EPAC gained market shares or it would have grown with the market? Yeah. These are the three questions.
Ajay Singhania
Thanks,. First of all, like you shared, yes, the industry growth was challenging in Q1, especially April and May, there was substantial loss of sales and revenue for all the brands. The channel went towards at its peak beginning of June. However, June witnessed the channel inventories being liquidated largely and now we see a situation wherein the inventories are normalizing or if the secondary sales happened in June quarter — June month and then currently continuing.
So definitely the inventories are slightly higher, but still manageable and quite close to the normal levels, especially now with the revision coming up, the brands are focusing more on creating the lineup for the next season. So that we — I mean, it’s not an alarming situation anymore the way it was beginning of June. So currently, yes, there was some overhang of inventory, but now it’s largely liquidated and mostly at a normalized level. In terms of the third question around the market so inventory market inventory. So currently it’s largely, largely normalized.
Anirudha Joshi
Okay, just one more question as well. Sir, third question is, have we gained market-share in the EMS sector in June quarter?
Ajay Singhania
So like we have been maintaining, EPEG definitely aspires to outgrow the market wherever possible. So our objective has been to recover the lost customers or the customers with whom we are to increase our wallet share with almost all the customers. And in that effort going-forward, the RFPs are very strong. Past quarter, yes, we performed, but it will be difficult to say that if we have taken away any share from any competitor. But yes, we continue to grow and deliver the best quality products.
Anirudha Joshi
Okay. Okay, sure, sir. Lastly, sir, if you can quantify in terms of what was the RSE market in June this quarter versus last year June quarter?
Ajay Singhania
So the June numbers in terms of secondary sale is still not available. This is the number available for April and May, it seemed the market degrew largely up to almost to the extent of 30% 35%. So that was the kind of de-growth the market had and the inventory overflow got liquidated in June. So overall, we believe that Q1 the market — overall AC market degrew probably between anywhere between 30% to 35%.
Anirudha Joshi
Okay, sure, sir. That’s — thanks for the questions. Very helpful.
Operator
Thank you. The next question comes from the line of Raj Saraf from investors. Please go-ahead.
Raj Saraf
Sir, am I audible?
Ajay Singhania
Yeah.
Raj Saraf
Sir, first of all, just, just I have two questions like, do you see any major recovery in the RAC segment in this financial year all this year? And the second is what is the margin mix of RSC and the rest of the segments we have, which is estimated we estimated to have rest of the segment for FY ’26, sir?
Ajay Singhania
See, as we have been discussing, definitely, there was a softened demand in Q1 due to unseasonal weather. However, like I’ve been sharing with evolving EE standards, the current trend shows a healthy rebound in channel pull-through as inventories align. The market for FY ’26 is expected to be still a growth. So definitely FY ’26, we will still see growth and strong demand is what most of the brands and customers are still expecting with this story with the tailwind still being strong on a long-term basis. So the market is definitely destined to grow overall for FY ’26.
So that’s the kind of outlook we are working on and everybody is expecting in the market. And in terms of the margin mix, we remain firmly on-track to deliver strong financial performance, targeting at the EBITDA margin of 7.5%. And in terms of the margin mix between the different segments, yes, as we diversify into other segments, especially components and the LDA and SDA, that definitely helps us achieve better overall gross margins as well as EBITDA margins. So the margins in the other segments are comparatively better as compared to the margins.
Raj Saraf
Okay, so the ballpark number we are generating in business.
Narayan Lodha
So like I shared, we are targeting an EBITDA margin of 7.5% plus in FY ’26 with a medium-term ambition of almost 12% to 8%. So alongside this margin expansion, our margin improvement strategy is built on the three levers like to continue to diversify and grow our portfolio of air-condition alongside definitely growing the small domestic appliances as well as the large domestic appliances and decomponent business. Is
Raj Saraf
In the last one, sir, now we see that there is a subdued demand in the Q1 from RSE segment. So how can we take FY ’26 going-forward, any ballpark number for the full-year at consol levels of year.
Ajay Singhania
See, like I shared, the market is definitely is expected to outgrow FY ’25 overall despite the slowdown in Q1. So Q1, there was a degrowth, but overall the annualized numbers for the market still seem to be positive and the market might see a growth of anywhere between, let’s say, 10% to 15% kind of growth is what we expected still from the market. And overall, the long-term story is still of 20% plus kind of growth over the next four to five years is what the EC industry has been looking out for. So with that kind of a number, definitely believes that we will outgrow the market.
Raj Saraf
Yeah. Thank you. Thank you very much and good luck for the rest of the year. Thank you.
Ajay Singhania
Thank you.
Operator
Thank you. We take the next question from the line of Dipali Bansal from Ventura Enterprises. Please go-ahead.
Deepali Bansal
Good morning, everyone. My first question is, could you explain the whole company structure now as we are getting — as we are growing actually, we are taking over and how things is going on? So we see the world expansion is going on. Would you be able to explain the whole structure now like washing machines are reduced fleet produced, what is the capacity utilization? What’s the timeline we’re looking at for or maybe or maybe a new organization that we have just started, what are we expecting from that? And the energy meter sector, which is mentioned in your PCP that recently entered into that segment, what’s the revenue potential from all these new segments that we have entered into now?
Ajay Singhania
Yeah so the overall structure for Limited is that currently we have four associate companies, two of them being the wholly-owned subsidiary, namely EPAC manufacturing, which is a dedicated facility for. Therein, like we have shared earlier, the lines for AC are being set-up, the construction is ongoing in-full swing and currently the lines are being set-up and the production ramp-up is expected to start from end of Q3 and then mass production from Q4 onwards.
So that’s largely the plan for the OEM project, whereas the ODM production already commenced from end of March and that is an ongoing thing for air conditions. And in current quarter, we are also seeing ramp-up in washing machines for. So that’s largely about the. So the first subsidiary is a wholly-owned subsidiary largely to make committed products for. The second subsidiary, which was recently formed is called Audio Components. So that’s a new segment is looking to enter into audio products and components. So that’s a company which is just being registered and the business plan is getting firmed up.
The third company, which is a joint-venture company with RRWL, is the greenfield facility in Tiwadi is now complete and production already started from from the beginning of this month and then ramp-up of production will start towards the end of Q2. So therein, like I shared earlier, we’re looking at setting up capacities for almost 3 million-plus motors and then increase further. So that’s about the third JV. And a fourth company, which IPEC recently formed is overseas subsidiary for — which has been formed to explore opportunities outside of India, especially the Middle-East and African market.
So that’s a more respirational kind of outlook the company has taken to start exploring growth in the export business for both air-condition and the appliances.
Deepali Bansal
Okay. So the supply of energy meters things that you just recently started.
Ajay Singhania
So then what are the energy business is part of growth in the component business. So in components, we are looking or rather we are not just producing components for air conditions, we are also producing components like plastic molded parts, heat exchangers, motors for other industries like washing machines, refrigerators, energy meters. So that’s one of the segments.
Deepali Bansal
So this is entirely different or it’s just a substitute or some additional research has been done on some products and then we have entered into this product.
Ajay Singhania
So this is one allied industry, we can say for which definitely there is an offset in seasonality or rather we have a more uniform and uniform annual demand. So especially in component business, we are looking to acquire or looking to enter into a lot of other areas besides the core appliances businesses like energy meters or going for maybe like automobiles and also. So those are the components that the team is working on to further develop and create a uniform revenue stream for on an annualized basis.
Deepali Bansal
Okay. In one of your recent interviews online, you mentioned that we are still looking at a growth of 30% to 35% top-line and maintaining bottom-line. Are we still on-track to maintain that or is there some changes that you expect that can happen this year?
Ajay Singhania
On a long-term basis, yes, we see strong positive outlook and demand despite the conditions these — the company’s overall strategy to diversify into other segments like components and small domestic appliances, which has delivered results in the last quarter, we see and we firmly believe that our overall outlook for the year remains intact and we will definitely deliver the kind of results we promised in the beginning of the year.
Deepali Bansal
So ballpass figure as we talk about, let’s say next 5, 7 years, then we do let’s say INR10,000 crore sales then high sense and everything is achieve and up and running.
Ajay Singhania
So that would be rather a very long-term picture to look at. And but the management and the team is quite confident and definitely working to deliver results in-line with the overall guidelines we had shared earlier.
Deepali Bansal
Thank you so much.
Operator
Thank you. The next question comes from the line of Arshaya Khosla from Nirmal Bang Institutional Equities. Please go-ahead.
Arshia Khosla
Hi, good afternoon, sir and thank you for taking my question. Sir, I just want to understand on the margin side as — I mean, we’ve expanded our margins. So what’s the sustainability on these margins and any new clients that we’ve added in the SD and MDA part of the business?
Ajay Singhania
So, in terms of margins, like we shared, the margin improvement is largely driven by the product mix. So as we can see compared to the Q1 of previous financial year, our overall revenue from other areas on diversification, especialty component business has grown substantially and phenomenally. So wherein the margins are comparatively better. So that is one thing which is resulting in a better overall margin.
In terms of new clients, like I shared, we have added close to 14 new clients in the Q1 of this year from which three clients with the supplies have already commenced and most of the — almost all of the clients are for the small domestic appliances and the component business.
Arshia Khosla
Okay, that’s helpful. Thank you. And for the full-year, are we guiding some EBITDA margins or we maintain the previous guidance?
Ajay Singhania
So in terms of EBITDA margin, we are still targeting an EBITDA margin of 7.5% plus in FY ’26 with a medium-term ambition of achieving 8%.
Operator
Thank you. We take the next question from the line of Bhumika Nayer from DAM Capital Advisors Limited. Please go-ahead.
Bhoomika Nair
Yes, sir. Sir, just wanted to actually just touch upon the REC bit a little more to understand. You spoke about broadly the — you’re still seeing some growth of about 10 odd percent or maybe more depending on how things pan-out. Now given that 1Q has been fairly weak and inventories still remain in the system, do you think that 3Q, 4Q will be able to make-up for the decline because 2Q will also likely see a decline on the high base of last year. So in your opening, do you think that REC segment revenues will actually grow for the full-year and see that kind of traction versus the second-half of last year.
Ajay Singhania
So, yes, definitely Q1, the market degrowth and the spillover to Q2 will impact the first-half of the year. But with the BEE most revision upcoming revision and the higher energy efficiency norms coming in. Most of the brands are aligning production to begin with somewhere around end of September or October and start ramping-up capacities and start ramping-up inventories in the channel for the upcoming new season.
So we see an early — I mean, we believe that there will be an early start of season for — and Q3, Q4 should definitely see most of the production for the next year being done in advance.
Bhoomika Nair
Okay. Okay. And currently, are you seeing orders coming through or right now for 2Q, they are pretty much slightly on the weaker side given the inventory.
Ajay Singhania
So generally, the industry works on a system wherein 2Q is used largely to create RFQs and the outlook for the next season. And hence generally this is the next four to six-weeks are a time wherein the RFQs get floated, the orders get closed and the commissions get closed. So this is more of a period wherein the order book for the Q3 and Q4 are being decided. So I mean, last year was an exceptional year where we saw the production still continuing in Q2, but Q2 generally — it generally remains mut.
Bhoomika Nair
Sure, sure, sir. Sure, sir. Sir, the other thing was, you know, we spoke about 14 customers. This would be across which segments that you would have seen because SBA also exists. So you know, so it would be largely across both the segments or if you could give some split of what was the new client addition in RSC versus SDA?
Ajay Singhania
So a detailed customers LDA, LD and component wise are mentioned in the company’s presentations uploaded. So out-of-the 14 customers, eight of them there for the small domestic appliances and four of them for the — especially for the washing machine business of them for the components.
Bhoomika Nair
Got it, sir. Perfect. Sir, in terms of components, if I look at it, we’ve seen a significant ramp-up in the current quarter from — as we mentioned in the press release from Panasonic I can, et-cetera that we are supplying. That’s been a very sharp ramp-up that we’ve seen. If you can elaborate any specific components that we’re giving to them and how do you expect this scale-up to kind of continue because while brands are putting up their own plant, they continue to source components from EMS players like us. So how large can this opportunity size become for us in the next couple of years and what are you looking at?
Ajay Singhania
Especially components is one area where like you shared, the brands continue to outsource and don’t make most of the components in-house. And like I shared earlier, components business, we are not just looking at the AC components, we are also looking at components outside of air conditions like energy meters we shared then washing machines, air conditions, refrigerators and then lot of commercial applications especially like holdrooms and data centers wherein large commercial air-conditioning projects are getting delivered.
So there are a lot of areas where we see components being sourced and the market shifting from imports to domestic. So a definitely a high-growth area and over next three to four years, we see component business growing multifold.
Bhoomika Nair
Understood, sir. So here the energy meters, we are only supplying the PCB and not the box, right, entirely.
Bajrang Bothra
So it’s enclosive and largely enclosives.
Bhoomika Nair
Okay, understood. Understood. And sir, the other thing was that on SGA, there has been this whole BIS LED-related changes and that’s why we’re seeing a lot of localization, etc. What is the overall TAM for our products and that we could possibly cater to over the next couple of years.
Ajay Singhania
So in terms of small domestic appliances, the QCU has led to lot of the import restrictions or DBI has not been given to the overseas suppliers has led to a wave of products getting manufactured in India. And at EPEC, we are looking at some of the larger SKUs like air fryers and coffee makers and vacuum cleaners.
And the TAM is actually short because the quick turnaround time comes by the way of starting with an SKD and then gradually moving towards higher domestic value addition. So it’s a step-by-step approach. But yes, it definitely brings new products and then puts us into the market wherein we can start Using our capabilities for R&D and product development and then look at creating our own ODM range of products. So we definitely see this as an opportunity wherein our core competence of R&D and product development will help us leverage further and create more SKUs and look at more customers. So this definitely is a good starting point for us, wherein we are looking at a larger range of the small domestic appliances, especially the heating and electrical product small price products.
Bhoomika Nair
Perfect, perfect, sir. Sir, just lastly one bookkeeping question on the debt position, gross and net, if I can just get our cash and books.
Ajay Singhania
Yes, Rajesh.,
Rajesh Kumar Mittal
This you know that balance sheet number has been not been disclosed the quarter one number. But as compared to March, there is some increase in the net-debt number as on June.
Bhoomika Nair
Okay. Take it, sir. Okay. Thank you so much. All the best.
Ajay Singhania
Thank you.
Rajesh Kumar Mittal
Thank you,.
Operator
Thank you. Thank you. The next question comes from the line of Sidhan Kanodia from Tusk Investment. Please go-ahead.
Siddhant Kanodia
Good morning, everyone. So I have a couple of questions. So my first question is regarding the washing machine, sir. So what kind of revenue are we targeting for the full-year and what will be the realization per unit for washing machine? Sir, my second question is regarding Hycin. So the capacity in the Phase-1, what will be that units like how many units are we targeting in the Phase-1? And in the, I can see that the capex is split between the old plant and the new plant for. So both the plants are in the same-facility.
Ajay Singhania
Sorry. So yes,, first of all about the capacity. So for, we are putting up a capacity of almost 0.5 million air conditions in Phase-1 for assembling of air conditions and making heat exchanges. Yes, there is a — the investment is partly done in the high sense company as well as there is some investments being done in the company because the company would be supplying all the other components like the corporate, controllers, plastic parts, steels,, etc.
So all components except heat exchanges will be manufactured and supplied by the parent company durable and assembling and heat exchanges will be done at the new facilities with a 0.5 million capacity and we are looking to a utilization of almost leverage — I mean, increasing the utilization over next three to four years and reaching an optimal capacity utilization within next three years. So that’s the kind of outlook we have on the capacity.
In terms of wasting machine, we have started with a top loop fully automatic washing machine. The first project of 8G to 90G is now already — the trial runs have been done for four key clients. And in the current month, yes, the mass supplies have also been started. So that’s how the washing machine is getting ramped-up and we are looking to further add newer models and higher capacities, both for the top-load or fully automatic as well as the twin tub semi-automatic.
So by end of this year, we are looking up at setting up a capacity of almost 90 to 100 k per month. So that’s on the capacity side. So for the next calendar year, we can foresee a capacity — an available capacity of almost 1 million washing machines.
Siddhant Kanodia
And sir, what sort of revenue are we targeting from washing machine this year and what will be the realization per unit?
Ajay Singhania
So I mean, the company does — we don’t look at a segmental margin and realization as such. But overall, like I shared, we are still looking to maintain a healthy margin of close to 8% on a longer — on a long-term basis.
Siddhant Kanodia
And this — and the revenue guidance of 30% year-on-year?
Ajay Singhania
The revenue growth, yes, it will definitely come from all the diversifications what we are doing in terms of the growth in washing machines and coolers as well as the small domestic appliances.
Siddhant Kanodia
Right, sir. And sir, you mentioned like we had a very good growth in the component side, like 5%, 56%. So how much — what will be the split between the RAC and non-RAC part in the components?
Ajay Singhania
That kind of number is currently not every will be pass this question and probably reply to you over an email if you can please send.
Siddhant Kanodia
Yeah, definitely, sir. Thank you so much, sir, and all the best.
Ajay Singhania
Thanks,.
Operator
Thank you. The next question comes from the line of Sujal from ASP. Please go-ahead.
Sujal
Hello. Am I audible?
Ajay Singhania
Yes, Sujal.
Sujal
So sir, first of all, congratulations on the set of your numbers. And my question is regarding like for, when do you have plan to start washing machine manufacturing?.
Ajay Singhania
So like I shared in the earlier question just now, for, the washing machine trial production has already been done and this month onwards, the mass production is scheduled to start. So end of — actually last week is when the first set of mass production would start horizon and then continue.
Sujal
So basically the AC part and the washing part will be in the one plant only and both will be starting the one production and each one thing will start together only?
Ajay Singhania
AC production, there are two kinds of ACs what is supplying to. One is we call the ODM product, which is our own design product. That has already started since March of ’25. So that’s something which has already started. The new facility would manufacture the high sense design product, which will — which is scheduled to start from the — towards the end of Q3, around end of November, December is when it is scheduled to start.
Washing machine is again being supplied from the same-facility, own facility as an ODM product, which I just shared is scheduled to start from last week of this month.
Sujal
And my second question is sir, where do you see like recovering of this RAC or EC segment because of this unseasoned rainfalls as the demand has gone down, where do you see the recovery? In which quarter you can able to meet the same amount of like growth?
Ajay Singhania
So see, because currently as the season for the 2025 season for AC is now almost over. So we have started working on the RFQ sold from the brand for the next season of calendar year ’26 and the production for the next calendar year generally typically starts from the end of September, October. So that’s largely, let’s say, Q3 and Q4 are the two quarters wherein we see demands ramping-up and production ramping-up and ramping-up faster because of most of the inventories getting cleared of the old rated products during the festivity season and Diwali sales, we believe that the demand — the brands would start putting up inventory for the new rated product from October onwards.
Sujal
So you are saying the inventory which has been put for now because of lower demand, it can be go in Diwaliar further in-quarter three and quarter-four, the new inventory will be in the production and will be sell-in quarter three, quarter-four?
Ajay Singhania
Absolutely, yes.
Sujal
Okay. Thank you. That’s from my side. Thank you.
Operator
Thank you. The next question comes from the line of Ayush Kothari from Kothari Investment and Infrastructure. Please go-ahead.
Ayush Kothari
Hello, is my voice audible?
Ajay Singhania
Yeah, yes.
Ayush Kothari
Yes, actually I want to ask the few questions but they are already answered. So thank you from my side.
Ajay Singhania
Thanks
Operator
Thank you. We take the next question from the line of Nirav Rajeev from Birla Sun Life Insurance. Please go-ahead.
Nirav Rajiv
Yeah. Thank you. Just on the REC front, the industry has degrown by around 25% and we have degrown by around 35%. So is there any market-share loss? I mean, your peers are yet to report numbers, but I believe they’ll be reporting kind of better numbers that is what the estimates are. So just want to understand how does it work? Is there any lag effect or like how are we placed in this?
Ajay Singhania
Yeah. So Nirav, as an ODM OEM manufacturer, there is definitely a lag of numbers between what gets manufactured and what gets sold-in the inventory. So with — like June being the fag end-of-the season, obviously, the brands did not want to pursue any further production and focus more on liquidating whatever was there in the trade.
So probably even if the secondary sales recovery was there, fresh production was being curtised to maintain inventory levels with an acceptable limit. So probably there could be some lag, but largely, yes, the industry has degrown to the extent of 30% — around 30% and this is what is reflected in our numbers as well.
Nirav Rajiv
Sure. And on the component side, we have been able to scale-up pretty well like INR100 crores INR100 odd crores of revenue. So in our revenue guidance for the year-around INR2,800 crores to INR3,000 crores, what could be the kind of mix of components we can expect just a broad number, just to get a sense?
Ajay Singhania
Yeah. So for current financial year FY, based on present trends and ongoing ramp-up of AC, we foresee AC contributing close to 60% 55% kind of revenue. Small domestic appliances 10% to 15% kind of revenue and components, a healthy 20% 25% kind of revenue. With large domestic appliances Scaling up would be a max of 10% and then going-forward definitely large domestic appliances even play a bit total.
Nirav Rajiv
Sure. And margins, can we see an improvement because some component mix will see an increase.
Ajay Singhania
So margin improvement will definitely set-in FY ’27 onwards. So currently, with suboptimal utilization of capacities at, we believe that Q4 onwards the capacity utilization would definitely be much better and that would help us to further improve the overall margins for FY ’27 onwards.
Nirav Rajiv
Sure. Thank you so much.
Operator
Thank you. We take the next question from the line of Anirud Joshi from ICICI. Please go-ahead.
Anirudha Joshi
Yeah. Thanks, sir. Thanks for the follow-up. Some bookkeeping questions. What was the PLI that we would have booked in Q1 FY ’26 versus Q1 FY ’25? Question one. In terms of the revenue guidance that you have shared in the PPT on Slide 10, AC growth, I guess we are building in somewhere around 15% to 20%. The number is not clear, but is that understanding correct?
Narayan Lodha
This PLI number on quarter-on-quarter on year-on-year basis around INR14 crore to INR15 crore. It is almost same number for on year-on-year basis. Almost same number, INR40 crore to INR15 crores.
Anirudha Joshi
Okay. Okay.
Narayan Lodha
Yes. So this is for Q1. Overall, if we see last year, the total PLI, which has been accured is at INR36 crores, whereas for the current financial year FY ’25-’26, we are eligible for the PLF, INR56.25 crores.
Nirav Rajiv
Yeah. Okay. That’s super, sir. And thanks. And the revenue growth that we are building in from RIC in this year FY ’26.
Narayan Lodha
So like I just shared in the earlier question, we are looking the overall revenue mix to change despite growing the RSE numbers in — or rather outgrowing the market for RSE. The overall revenue mix we are looking at is almost like 65% for AC and then non-AC being close to 35% with components being like close to 20-odd percent. So that’s the overall kind of mix we are looking for the entire year. Okay. So we have not shared any segmental revenue guidance, but yes, overall, we are looking to grow the numbers we are just talking about.
Nirav Rajiv
Okay. Sure, sir. And like third, on EBITDA margin and capex guidance for FY ’26 and capex for FY ’27, total capex means including the capex at the subsidiary levels also.
Narayan Lodha
Yeah. So like we shared in the annuary call, our outlook for the current year or next 12 to 18 months is overall capex of INR450 crores plus-minus INR50 crores. So that’s the overall capex we are looking at INR450 crore to INR500 crores for next 12 months with INR50 crores already incurred in Q1.
Nirav Rajiv
EBITDA margin, any guidance you would like to share for FY ’23?
Narayan Lodha
So FY ’26 EBITDA, we are for — I mean we are looking to maintain around 7.5% plus in FY ’26 and in medium-term, definitely 8% kind of number is achievable.
Nirav Rajiv
Okay. Sure, sir. This is very, very helpful. Many thanks.
Narayan Lodha
Thank you. Thank you. Thank you very much.
Operator
Thank you. The next question comes from the line of Akash Ja from AJ Wealth. Please go-ahead.
Akash Jha
Hi, sir. So what’s the current status of that custom issue, sir? I mean, is there any clarity on whether the industry will have to bear a retro safety penalty and could it also impact the industry supply-side?
Ajay Singhania
So the customs to — is linked to imports of copper tube, which the industry does from the Asian country and Ashok was notice has been sent to — as for some news articles to more than 2,000 importer. So that’s an industry-wide issue which is jointly taken-up by all the industry associations, both with the ministry and the government it is today unresolved so the industry continues to give bank guarantees on the cooperative ports on the Asian countries.
Tthe overall view is that definitely as the domestic capacities are getting built-up, going-forward definitely copper tubings would get diverted to local sourcing, but this issue largely remains unresolved as we talked today.
Akash Jha
Okay. And second, sir, we recently launched this ASIR. So has its production started? And also, I mean, could you share the expected volume or order projection for this product for this year.
Ajay Singhania
So air frag is well productly started in beginning of Q1 for this year or towards the end of Q4 is when we started trial production and now it’s ramped-up and we are already supplying to five, six key customers and the volumes are definitely increasing rapidly. And the kind of capacities we have set-up for this product is almost 1 million size is the capacity we have set-up in Phase-1 and we are looking at developing our own ODM product, our own ODM models are getting developed and we will see further continued growth in this category from the acquisition of newer clients and expanding product range.
Akash Jha
Okay. Thank you.
Operator
Thank you. The next question comes from the line of Pratap Amaliwal from Mount Inska Finance. Please go-ahead.
Pratap Maliwal
Hello, am I audible?
Ajay Singhania
Yeah.
Pratap Maliwal
Yeah, hi, and thanks for taking my question. So I had a few questions regarding a recent management that was given. On the copper import issue, I think you clarified already, just on the inventory levels, at the time it said that in the beginning of June, the inventory levels are about 5 million units. So can you give me an estimate of what is the number of units and inventory right now?
Ajay Singhania
Your voice is not clear. Can you repeat the question?
Pratap Maliwal
It’s not is it better now? Yeah, is it better now?
Ajay Singhania
Yeah,
Pratap Maliwal
I’m just asking regarding inventory levels in the industry. You have said in the beginning of June, it was about 5 million units, which is about 33% of the overall market. So what is the estimate for now right now? What is the inventory levels like?
Ajay Singhania
So, I don’t have the numbers. So I don’t recall having sharing a 5 million kind of a number. But yes, channel inventories were high and the exact inventory levels are very difficult to estimate, but based on discussions across customers and brands, we understood that — I mean because of a subdued April and inventory was higher than the normalized level.
So any direct number both what is the normalized number and what is the high is really difficult to estimate. But again, what we are saying is that currently it is normalized or within acceptable limits and this is why we see the brands or the market talking about newer RFQs and things getting normalized. So this is more of indicative exact number can’t be put in-place for an industry-wide number.
Pratap Maliwal
Okay, understood. And just regarding the high partnership that we have. So this is the one we expect this to scale-up to about $1 billion of revenues in maybe going-forward five years. Is that correct?
Ajay Singhania
Yes. So the $1 billion revenue is a cumulative revenue over next four to five or five years. So that’s a cumulative number of five years.
Pratap Maliwal
Okay. So is there any projection on how much revenues we plan to do this year in FY ’27 from iPhone?
Ajay Singhania
So the revenue — I mean, the numbers would scale-up or the current calendar year or could be largely to be the calendar year ’26 wherein you will see ramping-up of capacities and utilization. So it’s five years thereon. And a year-on-year number is really difficult to estimate at this point of time.
Pratap Maliwal
Okay. Sure. Thanks for taking my question.
Ajay Singhania
So currently a lot of models are getting developed and up to do for the export market, especially the Middle-East and African countries. So we believe — and we are extremely positive on the overall outlook of achieving the same number, but the year-on-year number would definitely depend on as we see the export growth and the models getting approved.
Pratap Maliwal
Okay, sure, sir. Thanks for taking my questions.
Operator
Thank you. The next question comes from the line of Samyak Jain from RCLS Investment Managers. Please go-ahead.
Samyak Jain
Thank you for the opportunity. Two questions from my side, sir. Firstly, I know why better is it better now?
Ajay Singhania
Yeah. Yeah.
Samyak Jain
So sir, I see that on a consol level, our revenues have declined on a year-on-year basis, but there is some 150 bps on margin expansion. So what is driving this margin expansion on a Y-o-Y basis? Is it product mix or some other reason?
Ajay Singhania
Yeah. So on consol basis, yes, Samir, the margin improvement is largely driven by the product mix.
Samyak Jain
Okay. Okay. And sir, secondly, when we say that we will grow in lines or outgrow the industry in the RAC Segment, so are we going to add any new customers in RAC or it’s largely the increased demand from the existing set of customers?
Ajay Singhania
So it’s a mix of all the factors, definitely gaining the wallet share from the current customers as well as new customer acquisition has been the strategy and we will continue to work on the strategy coupled with the kind of pricing discipline and taking advantage of leveraging our capacities and our strength of backward integration. So all these strategies will definitely help us acquire more greater wallet share as well as new customers.
Samyak Jain
Got it, sir. That’s it from my side. Thank you.
Ajay Singhania
Thank you. Thank you so much.
Operator
Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to one question per participant.The next question comes from the line of Bharat Gupta from Fairvalue Capital. Please go-ahead.
Bharat Gupta
Hi, sir. I hope I am audible. Thanks for taking the question, sir. Thank you. Yeah. Sir, just a question on the RAC front. So because we have seen a subdued demand coming out in Q1, so do you see that in the long-term, there will be some changes in the procurement strategy by the OEMs like will they shift more towards the contract manufacturing side than focusing on in-house development of the consumer durables?
Ajay Singhania
So whereas a decision for in-sourcing and outsourcing, I think this is a debate which has been going on for ages. But overall, if we see so is — this is largely accepted norm wherein brands don’t intend to manufacture 100% product in-house and depending on their overall market-share, there is definitely a thrust or a push to derisk in-house manufacturing by outsourcing.
And over the last couple of years, if we see outsourcing is something which has been gradually increasing from an earlier 20% kind of overall market being outsourced to, 25% 30%, currently it is anywhere between 30%, 35%. So gradually, yes, outsourcing or dependence on OEM medium has been increasing and this is an industry which continues to outsource and derisk the capacities.
Bharat Gupta
Right, sir, and we see a good favourable amount of RFQs being floated in the market for Q2, like we are currently in.
Operator
Thank you. We take the next question from the line of Nilesh Patil from Share India Securities. Please go-ahead.
Nilesh Patil
Yeah, thanks for the opportunity. Just wanted to check-up on the LDA segment. So we have reported about 29% year-on-year growth and I presume that is likely to be due to the low-base and expansion into washing machines. So just wanted to check the growth into other segments like air cooler and how has been the other segments doing?
Ajay Singhania
So really, like I shared earlier, the HDA segment grew almost 15% on a year-on-year basis and the growth has been largely like the new product addition. And obviously, Q1 being a low season for the small domestic still there was a growth. Component grew at 556% and LDA, yes, cooler has been one driving force behind it. And as our ocean machine models are now approved and we are ramping-up production from the current month onwards. We will see LTA even growing phenomenally from Q2 end of Q2 to Q3 onwards. So delivering the kind of numbers we’re talking about, yes, will be driven by all the three diversifications components, small domestic and large domestic appearances.
Operator
Thank you. We take the next question from the line of Dipali Bansal from Ventura Enterprises. Please go-ahead.
Deepali Bansal
So thank you for taking my question again, sir. Actually, for the last two, 3/4, we had been facing a lot of problem with this city plant that we were not running at optimum capacity utilization levels. What is the position right now? Can you some light on that?
Ajay Singhania
Yeah. So the Pale facility, I mean, we believe was slightly ahead of time and so there were some challenges in for the utilization of the capacities. But as the component business is now scaling up, a good bit of utilization has started happening and Q3 onwards, we definitely see even ACs being manufactured in the South facility. So utilization is bound to improve and we see that positive momentum already up.
Operator
Thank you. We take the next question from the line of Himan Kapashi from Wealth. Please go-ahead, if you can please unmute your line and ask your question.
Hemang Kapasi
Can you hear me? Hello?
Operator
Yes,. Please go-ahead.
Hemang Kapasi
Yeah. So just wanted to check boost of the bigger players are now going for in-house component manufacturing. So what sort of confidence do you get-in terms of scaling up the components, especially in the industry basically? So that was the first question. I have come up to if you can answer this first.
Ajay Singhania
Okay. So human components of RFCs, yes, right, some of brands have put up capacities for manufacturing some of the components in-house, but the kind of backward integration which we at claim to have is that we manufacture almost all the components, be it plastic parts, fans, controllers, motors, heat exchanges, copper tubing.
So this is one unique combination we have created. So that gives us an opportunity to supply almost any component to a brand customer. And whatever is — so a different customer would need a different set of components and we are leveraging our brandwidth with the kind of mix we can offer.
So certain customers we offer controllers, certain others, like one-product is one which we are offering to almost all the brand customers in the market today and similarly corporate new banks. So we are diversified customers, each with a unique set of demand and this is one strength we have created customizing the customers demand and meeting those RFQs.
Hemang Kapasi
So if I may ask how many RFC customers do you cater in India?
Ajay Singhania
Okay. Out-of-the top-10, we cater to almost eight of them.
Hemang Kapasi
Okay. Okay. And coming to energy because will this be supplied to private players or it will be a government sort of building something like that.
Ajay Singhania
So this is again to a brand customer we are supplying components of energy. So this is a need to a brand customer.
Hemang Kapasi
And by when this will be started,
Ajay Singhania
This is something which is already started.
Hemang Kapasi
It has already started. And what set of scalability do you see in this thing in this product?
Ajay Singhania
So we we’ve currently started supplies from our Guwadi facility and we are in discussion with a couple of more customers and looking at leveraging our capacities at both the plants in both and and also start supplies of other components. So we definitely see a good growth potential in this sector with a more uniform kind of a revenue stream month-on-month basis.
Hemang Kapasi
This is coming out of our?
Ajay Singhania
So component business will be in our main company
Hemang Kapasi
Thank you.
Operator
Thank you. Ladies and gentlemen, we take that as the last question and conclude the question-and-answer session. I now hand the conference over to Ms Bhoomika Nayer from DAM Capital Advisors Limited for closing comments.
Bhoomika Nair
Yes, like to thank the management and all the participants, particularly the management for giving us an opportunity to host the call. Thank you very much, sir, and wish you all the very best. Any closing comments on your side.
Ajay Singhania
Yeah. So first of all, thank you, Mumika and Pittal for doing the con-call today and thank you all the participants who participated and we hope that you have been able to answer your queries. In case there any further queries, we will clarify them on an email or something. So I hope you’ve been able to answer your questions respectively. Thank you so much.
Operator
Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines