Filatex India Limited (NSE: FILATEX) Q1 2026 Earnings Call dated Jul. 24, 2025
Corporate Participants:
Madhu Sudhan Bhageria — Chairman & Joint Managing Director
Analysts:
Tanish Bansal — Analyst
Unidentified Participant
Niraj Mansingka — Analyst
Anush Jain — Analyst
Kenil Mehta — Analyst
Pritesh Chheda — Analyst
Raj — Individual investor.
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q1 FY ’26 Earnings Conference Call hosted by India Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. I now hand the conference over to Mr Tanish Bansal from Share India Securities.
Tanish Bansal — Analyst
Thank you, and over to you, sir. Thank you. Thank you. Good afternoon, everyone. On behalf of Share India Securities, I would like to welcome all the participants for Q1 FY ’26 earnings conference Call of Ferratex India Limited. We are pleased to have with us management team represented by Mr Madhu Sudan Bagheria, Chairman and; Mr Ashok Chohan, Visionary Officer; Mr Nitin Agarwal, Chief Financial Officer; and Mr Vidanj, Vice-President of Corporate Strategy.
We will now have opening remarks from Mr Madhu Sudan Bagheria to give an overview on the company’s performance. This will be followed by Q&A.
Thank you, and over to you,. Thank you, Danish.
Madhu Sudhan Bhageria — Chairman & Joint Managing Director
Good afternoon. A warm welcome to all attendees of this first-quarter FY ’26 conference Call. Today with me are Mr Ashok Chohan, Mr Nitin Agarwal and. I trust you have reviewed the investor presentation, which has been uploaded on both our website and stock exchanges. Let us have a quick recap of our key financial indicators. Comparing the first-quarter of FY ’26 to last Q4 of FY ’25. In Q1 FY ’26, the revenue was INR1049 crores as against INR1080 crores in Q4 FY ’25. The sales quantity stood at 97,263 metric ton, a slight increase from 961 in Q4 FY ’25.
However, EBITDA grew by 2.7% to INR77.8 crores, up from 75.7%. PAT declined by 1.69%, reaching INR40.7 crores, down from INR41.4 crores in Q4 FY ’25. The decline in net profit is on account of rupeed depreciation against euro, adversely effect of appreciation of euro against rupee. Comparing Q1 FY ’26 performance against first-quarter of last year, the revenue was INR1,049 as against 1,054 in Q1 FY ’25. The sales quantity stood at 97 to 63, an increase from 95962 in Q1 FY ’25.
However, EBITDA grew by 27.75% to INR77.8 crores, up from INR60.9 crores. In Q1 FY ’25, PAT rose by 26%, reaching INR40.7 crores, up from INR32.3 crores in Q1 FY ’25. In domestic market, despite geopolitical upheaval and raw-material price volatility, the demand was reasonably stable and we expect gradual improvement. However, the export market for textile yarn continues to face pressure. High raw-material cost makes us uncompetitive in export market. T
He traders in India are still fine waste and means to import yarns, fabrics at low prices from China, thereby causing pressure on margins in the domestic industry. Let me update you on the status of various ongoing projects. Additionally on capacity with the investment of INR235 crores, this expansion is expected to be completed by September 2026. Major machinery orders have been placed. Once operational, we expect an EBITDA of INR70 crores in-full years of operation.
Recycling project, the investment would be INR300 crores. Building construction has started, ordering of major equipment is going on. We expect to start production by 2026 September. In a full-year operation, expected EBITDA is INR80 crores. Stream infrastructure investment is INR85 crores, order of turbine done, construction of pipeline started, hope to be completing it by June 2026. We have also signed MOUs with more than 50 tons buyers.
Expected EBITDA is INR60 crores in-full operation. Renewable energy investment will be INR27.6 crores. MOU signed with Mr Torrent Power expected to start getting power by February 2026. Energy cost-saving in-full year would be INR18 crores to INR20 crores annually. We have identified material handling and packaging as an area of concern. We have been facing frequent disruption in our packing areas on account of increased volumes as well as acute labor shortage.
Packing is a labor-intensive and tiring work. Labor shortage is and becomes a serious issue during festive seasons to mitigate the problem of labor shortage in this section, which needs around 340% every day. We have opted for automation of post-winding tasks like dolphing and packing of FDY and partially POI. This will reduce the manpower requirement at least by half to around 180% per the investment of INR40 crores is being done in that. We expect it to complete by June 2026. Reduction in operational cost will be INR6 crores by reducing human handling, we are likely to have some benefit in quality also. We are buoyant about prospects of our industry. Upcoming PTA capacities of 2.4 million tonnes of ISL and GAIL and 3.2 million tonnes by Reliance will reduce dependence on imports and freight exposures. We expect raw-material prices to reduce once these plants are operational. In our assessment, these factors bring prospects for polyester filament business now
Questions and Answers:
Madhu Sudhan Bhageria
We can go for the question-answer thank. We will now begin the question-and-answer session.
Operator
Anyone who wishes to ask a question may press star and 1 on your touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles the first question is from the line of Param from Three Asset Managers. Please go-ahead.
Unidentified Participant
Hello, good afternoon. I wanted to ask you the question regarding the Chinese dumping of polished yarn and other-related products. So what are your views on the competitive industry from Chinese players and how is protecting its margins amid this?
Madhu Sudhan Bhageria
See, China dumping is happening, but it has reduced considerably. The government has put MIP on lot of HS courts, but there are a few HS codes still left. So we are working with the government to put our MIP at the minimum import price on that, so that this can be stopped. So in the future, I hope we should be able to stop that.
So we are working with various forums with the industry associations to get it resort. Okay. And another question what I wanted to ask was, can you provide insights into the profitability and revenue contribution of value-added products and what is the strategic focus to increase their market-share? See, most of the products are value-added other than the POI.
So POI is hardly now 25%, 27%. Not much difference. I mean, the value-added products are giving like FDY gives a good profit. So we are producing almost out of 350 tonnes per day of FDY out-of-the total production of 1,050 tonnes, approximately 33% 34% that is a better margin than compared. Second is textured yarns. Textured yarns are around 40% and the balance is POI. Exactly, it’s very difficult to say, but the value-added products would on an average give you INR, INR3 more than the non-value added at the moment, sir.
Unidentified Participant
Okay. Thank you for taking my question. I’ll stand back-in queue now. Thank you.
Operator
Thank you. The next question is from the line of Niraj Mansinga from White Pine Management. Please go-ahead.
Niraj Mansingka
Yeah. Can you hear me?
Madhu Sudhan Bhageria
Yes, yeah, few questions.
Niraj Mansingka
One, what about the Gail PTA plant? When will it start? And how will it impact you also supply. Is the first one to start. I — whatever I had to talk with them, they expect to start production by December this year. IOC is delayed. IOC is now gone to second-half of next year. So maybe around August, September next year it will start. But GAIL is most likely to start by December of this year. This is 2 million metric tons, right?
Madhu Sudhan Bhageria
1.2 million metric tons. India is short by almost 2 million at the moment. So this 1.2 million will help a lot. So this will reduce overseas prices and in return, Indian prices will also get down because they are benchmarked with the landed prices.
Niraj Mansingka
Okay. Sir, yeah, Mr, can you also give some comment on the imports because what industry was expecting that after the ISI in codes being implemented, the imports will go down, but you’re saying there’s few more codes are HSN code still being used for importing. Can you share some data points on — on that?
Madhu Sudhan Bhageria
No, I don’t have the data, but generally, I think I would say the imports which were happening, let’s say, if it was 100, it has come down to, 30 40. So almost 60% of the imports have gone. Still 40% volume is coming.
Niraj Mansingka
Got it. But — and who are fulfilling those supplies in India in the domestic market?
Madhu Sudhan Bhageria
Domestic people, domestic people demand has increased.
Niraj Mansingka
Yeah, but just the question on related question. In that case, your margin should go up or the inventory should go down. So anything — any comment on that?
Madhu Sudhan Bhageria
So the margins have slightly improved in the first-quarter. Normally, first-quarter is not very good because there is lot of labor shortage and the weavers also run the plants at a lower capacities in the summers.
The labor is a migrated labor everywhere. So they go back to the villages. So there is a shortage of labor. And also the consumption is not that great. Now from the second-quarter, it starts picking-up, the labor also starts coming back from mid June till and July, they start coming back. So traditionally, first-quarter is not a very good quarter.
Niraj Mansingka
Okay. So whatever impact the government had on the imports on the MIP, because whenever there is a larger supply-demand increase, that time you will see an improvement in the margins or
Madhu Sudhan Bhageria
Already some we could feel that is why there is a slight improvement in the margins compared to last quarter in this quarter. Last quarter means first-quarter of FY ’25 compared to this quarter
Niraj Mansingka
Okay. That’s one. Secondly, on the capex, you said about — can you just repeat the first item of INR235 crores of capex when it will complete and what is the about?
Madhu Sudhan Bhageria
I said it will complete by September 2026. We awarded the machinery. So the machinery will only come by — no, this is about the increase. The first one is increase in the capacity of the existing plant. The second one recycle also is likely to get completed by August-September 2026.
Niraj Mansingka
And the capacity of existing — the INR235 crores capex will complete by September 26, what EBITDA will it add?
Madhu Sudhan Bhageria
It will add around INR70 crores of EBITDA in the full-year. So and if I get that INR300 crores that will add around INR80 crores. And what is the tonnage for the existing capacity that you’re adding, which adds the INR235 crore capex, how much capacity will get added on that side?
Our total will be around 125 tonnes to 130 tonnes per day, including FDY, DTY, POY. And you are adding mostly FDY. Yeah, FDY is more. FDIY is around 48,000 tonnes and DTY is around 14,000 tons. And UY is around same 14,000 tons.
Niraj Mansingka
Oh, that’s quite a decent capex that we have lined-up actually, yeah. And we lined-up all the total capex is coming close to 700. Yes, quite decent. And all this will complete by say September will be completed by September 2026. Okay. And in terms of — when you also shared when the margins improve, generally, what type of margins improved most?
Madhu Sudhan Bhageria
So FDI or margins all together blended margins we should expect around 11%, 12% kind of margins? EBITDA margins.
Niraj Mansingka
Okay. Got it. Got it. Okay, good. Thank you. I’ll come back on the queue.
Operator
Okay. Thank you. The next question is from the line of Udit Segal from Pinpoint X Capital. Please go-ahead.
Unidentified Participant
Yeah, good afternoon, sir. So I wanted to know regarding the margin, sir, in the commentary, you said that the margins will start gradually improving for now. So what are the kind of margins we can see in the coming quarters as the season picks up and what would be take as a blended average for the year?
Operator
Am I audible sir hello. Sorry to interrupt, sir. The line for the management has been disconnected. Please wait while we reconnect them. Thank you Ladies and gentlemen, the line for the management has been reconnected. Yes, sir, please go-ahead. And shall I repeat?
Madhu Sudhan Bhageria
Yeah.
Unidentified Participant
Sir, so in your management commentary, you have indicated that we can see the margins going up in the coming quarters. So what would be the range of margins they could go up to and what would be the like a blended average for the year? For the year, I expect the margin should be around 8.5%, 9% EBITDA.
Madhu Sudhan Bhageria
Okay. And by the 4th-quarter, I expect the 4th-quarter we should be in double-digit.
Unidentified Participant
Okay, great, sir. And with respect to the capex we are doing, sir, for next year, most of it will come online by H2, September ’26 before FY ’26, H2. Okay. So the EBITDA numbers that we are indicating, say, you spoke of 70% on the polyester expansion and INR70 crores and INR60 crores EBITDA on the recycling capex, plus I think some steel project also, you’re expecting some savings on that. For the yarn project, INR80 crores for recycling, INR60 crores from steam and around INR20 crores from power renewable power.
Madhu Sudhan Bhageria
These are the four broad
Unidentified Participant
Okay. So these are sir, four — these are figures for — considering that the capex will come online for half year only. So if we go to the next year, then the figure should be double half of all this double of all this, I suppose. Half?
Madhu Sudhan Bhageria
No, no, no. Okay. So in FY ’27, the effect will be 50% of all this. But yes, for power light it will come full because power will get started in this financial year only. And steam is likely to get completed by first-quarter of the next financial year. So that will be like three, fourth and the other two will be 50%.
Unidentified Participant
Okay. And sir, how confident are we about this new recycling technology because I believe we are one of the few players in India who are doing like textile to textile content,
Madhu Sudhan Bhageria
That’s why we are investing so much of money. We have tried in a small plant and then a bigger plant. So I mean, we are very confident that we should be able to. Maybe it can take some time, maybe six months-to establish the product initially. But yes, we are fully confident about the product and what we are doing.
Unidentified Participant
And you spoke of some tie-ups we already have for the offtake of this product we are in the process,
Madhu Sudhan Bhageria
Some tie-ups have started, but it will take time. We have already started working on that.
Unidentified Participant
And we are expecting superior like EBITDA margins like 35% kind on this.
Madhu Sudhan Bhageria
Definitely.
Unidentified Participant
Okay, sir. Excellent. I’ll come back-in the queue, sir. Thank you.
Madhu Sudhan Bhageria
Thank you.
Operator
Thank you. The next question is from the line of Anush Jain from FinIntrust Capital. Please go-ahead.
Anush Jain
Hello, sir. Good afternoon. So my question was regarding the difference from our competitors like, which you mentioned in the previous call, like they are also having their expansion. So how are we different from them because our margins are relatively low from them. And as you mentioned, we are aiming for double-digit margins by the end of HQ — sorry, by the end of Q4.
So how are we bringing that in?
Madhu Sudhan Bhageria
April Sonatan or Yan and their yarn, there is not much difference. The margin you are seeing, but if you see the ROCE or ROE, you’ll find there is not much different. This is the product mix which we do, like we produce more of course yarn the production is more, the margins are lower, but the investment per kg is also lower.
So if you do your ROC or ROE, you will find not much difference in the returns on the investments. Same machines can produce like 100 KGs if you make a, if you make a finer 10 years same machine will produce 60, 70 kg. So it’s a product mix which one chooses to be in. So it’s not like you have to see the absolute number. If you see return on the investment on return on the capital employed, then you will get a better idea of the margins in-quarter and they are also have some portion of cotton and they are also into some industrial yarn, which is altogether.
But although those portions are small, but yes, they have. I think cotton would be maybe 15% 20% of their production and, I have no idea, but approximately 5%, 7% would be their industrial yarn.
Anush Jain
Okay. And sir, regarding the other income, which was around INR11 crores, it is being reported from last two quarters. So could you explain from where it is coming?
Madhu Sudhan Bhageria
See mostly it is the free-cash flows which we have, which we invested in debt and other securities. In this quarter, we got a refund from GST. So there also we got INR3 crores interest back. These kind of income and plus the FDs which you have to give to the bank for opening LCs and all interest on that also comes in other income. It’s a combination of all these three things.
Anush Jain
Okay. And is it expected to be normalized like at what amount or something?
Madhu Sudhan Bhageria
I think normally it should be between INR6 and INR7 crores, not more. INR3 crores is additional which we have got this year — this quarter. So that will go away. So it should be within a vicinity of INR6 to INR7 depending on the free-cash flows which we maintain. As the cash gets utilized in the project, this will drop.
Anush Jain
Okay. And sir, one last question regarding the investments reported in the balance sheet. It has been gradually increasing over the three years, right? So that’s regarding like investments in what are bonds or something like what are these investments?
Madhu Sudhan Bhageria
Yeah, the free-cash which we have invested in the mutual fund debt side that is like towards capital market side.
Anush Jain
Yeah thank you.
Operator
Thank you. A reminder to all participants that you may press star N1 to ask a question. The next question is from the line of Kenil Mehta from Boeing AMC. Please go-ahead.
Kenil Mehta
Sir, just wanted to know what would be our revenue from the recycling plant? What type of assets should we expect from a INR300 crore investment and also from the growth capex of INR23 crores. Not able to hear you properly for recycle what I have heard you of around INR280 crores to INR300 crores in a full-year. I don’t have further room for the growth capex?
Madhu Sudhan Bhageria
The capex is INR300 crores for these IP. No, no, I’m for the INR25 crores CapEx which you are doing at. So INR235 crore capex will all give you a revenue of around INR450 crores.
Kenil Mehta
And sir, going-forward, should we expect income to luminum of it should come down I can’t hear you properly. Can you please use your handset? Hello yeah. Is my voice? Please go-ahead.
Madhu Sudhan Bhageria
Yeah, now better. Tell.
Kenil Mehta
Should we expect other income to fall down going-forward as we start investing other surplus cash?
Madhu Sudhan Bhageria
It will definitely come down. First of all, I said INR3 crores, which we have received this quarter will not come, so it will come to INR7. And then gradually as we start investing money for the projects, it will come down.
Kenil Mehta
Understood. Understood. Thanks. Thanks a lot, thank you.
Operator
The next question is from the line of Pritesh Cheda from Lucky Investments. Please go-ahead.
Pritesh Chheda
So just reiterating the expansions of INR245 crore these growth capex for the existing polyester and capacity expansion. Another INR300 crores to be spent in recycled polyester and you gave out a total of INR700 crores, which will include the steam project and the solar power project, correct?
That’s how the INR700 crores is.
Madhu Sudhan Bhageria
Yeah, roughly.
Pritesh Chheda
Roughly. And then you said that the EBITDA will be INR75 crore from polyester INR80 crore from recycled polyester and another few numbers totaling INR175 crore of EBITDA from INR700 crore of expansion, that’s how it is?
Madhu Sudhan Bhageria
Yeah, correct.
Pritesh Chheda
Okay. Now which portion of this will come in FY ’26 and which portion will come in FY ’27, which asset operational in FY ’26 and ’27 if you could only the — only the power will come in FY ’26.
Madhu Sudhan Bhageria
Rest will come in all FY ’27. Steam will get started by end of first-quarter FY ’27 and balanced by second-quarter of FY ’27.
Pritesh Chheda
So basically the solar power project will come in ’26.
Madhu Sudhan Bhageria
Correct.
Pritesh Chheda
Okay. We have tied-up with Torrent and we have taken 26% equity so that it becomes captive. They are putting the project. We have done an MOE with them to buy around more than 20 megawatts of hybrid power. So that will reduce our power cost. So solar comes in ’26 all other capacity-related benefits come in ’27. Now I don’t see a CWIP still. So why is it so? In March ’25 balance sheet, CWIP was not there. So what — where will we see this INR245 crore-plus INR300 crore this polyester expansion recycled polyester project
Madhu Sudhan Bhageria
Where you are not audible. Now there was some disturbance in the line. Can you repeat that?
Pritesh Chheda
I said, I don’t see a capital work-in progress number for — in FY ’25 balance sheet, where you are spending investment has started from this quarter only. So that’s why there’s not much capital work-in progress.
Madhu Sudhan Bhageria
And this recycle we are doing in a different company, which is 100% subsidiary. That name of that is tax built. So you can see that in a consolidated balance sheet, we have purchased the land and that cost is already there in the March ’25 balance sheet.
Pritesh Chheda
Okay. And my last question is, you gave a double-digit margin number in-quarter four. So somewhere you’re building in the PTA benefit in that number, that’s how it is double-digit for quarter-four or some other assumption is there?
Madhu Sudhan Bhageria
So some PTA benefit will come, maybe not much, but maybe a 1% or something like that. So the rest will be through demand in the market.
Pritesh Chheda
Okay. And the power benefit is assumed in this double-digit or
Madhu Sudhan Bhageria
Benefit I have not assumed because coming in February, it can get one month here and there. So that I have not assumed.
Pritesh Chheda
So you assume some benefit from PTA and basically market supply-demand economics improvement is what you build-in quarter-four. Already we are at 7.4% and 1% to 8.4% and another 1.5% to 2% will come from the market. Okay. Thank you very much, sir thank you.
Operator
Before we take the next question, we would like to remind participants that you may press star and 1 to ask a question the next question is from the line of Shasha Porwal, an Individual Investor. Please go-ahead.
Unidentified Participant
Hi. So as you’ve seen like the China Chinese players have continued to export yarn at aggressive pricing. Are you seeing any risk of further price undercutting in India and how do you see it going-forward in FY ’26?
Madhu Sudhan Bhageria
Yeah, I don’t see price cutting due to Chinese imports, but in India, already we have tried to stop quite a bit of it and we are working to stop the balance also. It is not that they are producing at a lower-cost. The people are getting at the government is trying to stop, they are putting a minimum import price, which is the actual price of the fabric so that they proper duties and then it comes to India. That is the main reason.
Unidentified Participant
Okay, thank you thank you.
Operator
The next question is from the line of Sevni, an Individual Investor. Please go-ahead.
Unidentified Participant
Hello.
Operator
Yes, sir, am you audible. Please go-ahead.
Unidentified Participant
Yeah. I just had one question. I just wanted to know if you could give us a capex guidelines on the next two, three years. I don’t know if I’ve missed the question with that before, but like if you could help on the capex till September 2026,
Madhu Sudhan Bhageria
I’ve already given the guidelines. We’ll be investing around more than INR700 crores in various projects. Beyond that, we’ve not thought of. We would like to invest more money once our recycled plant starts. We would like to expand in the recycle business mainly. So once the recycled plant starts, we would like to put a more recycled plants. So major investment will be decided after that. Till 2026 September, this is the investment plan which you have already given, which is around INR700 crores.
Pritesh Chheda
Okay. Okay. Understood. Thank you.
Operator
The next question is from the line of Niraj Mansinga from White Pine Management. Please go-ahead. MR. Niraj, your line has been unmuted. Please go-ahead with your question.
Niraj Mansingka
Yeah, I just had two questions. One, the capex of INR300 crores, does it include the land capex of recycling or it excludes that? Yeah, it includes land everything. Land. Which is — how much the land would be how much?
Madhu Sudhan Bhageria
Land was around, INR11 crore INR11.5 crores.
Niraj Mansingka
So not so much. And in terms of your — you said that you are appreciation led to lower impact in the EBITDA side or on the margin side. So can you share some thoughts on how it led to that? Because of some payables so we had a euro loan, we have a euro loan.
Madhu Sudhan Bhageria
So as the euro got appreciated against the rupee and the rupee depreciated, so we had approximately INR10 crores of hit because of the currency loss, which is notional as and when the rupee recovers against euro, it can come back. But if we take the full tenure of our loans, we are still better than hedging it. And we did have some euro which are payable in this year. So INR3 million we have already hedged where we have a benefit of around INR75 lakhs, which are payable in this year, which are payable in subsequent years, we have not hedged. A
Nd as per the guidance of the person who — the adviser we have kept for ForEx, we are moving ahead. So this has not impacted the EBITDA margins more impacted below the EBITDA, right? Yeah, yeah. This has not affected the EBITDA, this is below the EBITDA. So our net profit, this has affected, not the EBITDA.
Unidentified Participant
This is apart from the impact. And the impact to the extent of INR10 crores or something for the quarter.
Madhu Sudhan Bhageria
Yeah, IN 10 crores just because of the loss in the currency. But that’s not outgo. It can be recovered in subsequent quarter. Yeah. But the interest that you have booked is INR4.9 crores.
Unidentified Participant
So what is the other remaining part?
Madhu Sudhan Bhageria
No, we have return of INR4.9 and there is one more item, which is a currency loss,. How much is it? One second.
Unidentified Participant
Okay. Forex loss of 9.9 years in terms of
Unidentified Participant
9.88%. Okay. Thank you you.
Operator
Thank you. The next question is from the line of Janvi Shah, an Individual Investor. Please go-ahead.
Unidentified Participant
Hello. Yeah. Yes. So I just had like an question actually, what trends are you obsorbing in the downstream demand from the apparel, home textiles and the technical textiles? Which of the segments do you think will be structurally more important to your revenue mix?
Madhu Sudhan Bhageria
So textile mainly fabrics and garments is more our products. And I expect it to grow. I mean with the FTAs being signed like UK will likely to get signed within a day or two if the US-FDA gets signed or other FDAs get signed, the demand will increase significantly. Okay. And sir, just another question. Still the improving profitability and the lower interest burden.
Unidentified Participant
Are we revaluating the dividend payout ratio?
Madhu Sudhan Bhageria
Yeah, definitely. This year if we are doing well, we will increase the dividend. Thank you. But since we are investing lot of money in projects, we have to capex. So that we have to also keep in mind because that’s a trade-off. If you give more dividend, you’ll have to maybe borrow some more money for the capex.
Unidentified Participant
So thank you. Thank you.
Operator
The next question is from the line of Viral, an Individual Investor. Please go-ahead.
Unidentified Participant
Hello. Hello.
Madhu Sudhan Bhageria
Hi, go-ahead.
Unidentified Participant
Yeah. So I wanted to ask about our product mix strategy as our product mix is static. So are we any plans tilting towards high product value of DTY or any specific yarn store day risk spread?
Madhu Sudhan Bhageria
We are not increasing DTY much. We are adding a very small volume of TTY, which is 14,000 tonnes per annum. POI, we are adding 19,000 ton. Initially, I wrongly mentioned 14,000, it’s 19,000 ton and FDY we are adding is 28,000 tons. So this will get added by September 2026.
Text rising will start within next two, three months, but POI, DTY is a long delivery item. So that will start by September 2024.
Unidentified Participant
So currently, what is the margins in three of us segment?
Madhu Sudhan Bhageria
DTY has the worst of the margins. So TTY margins are hardly 2%. FTY would be close to, 12%, 13%, POI would be around 6%.
Unidentified Participant
Okay. Thank you.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and 1. The next question is from the line of Raj, an Individual investor. Please go-ahead.
Raj
Hello.
Madhu Sudhan Bhageria
Hello. Yeah.
Raj
Hi, thank you for the opportunity. I just have one question. Sorry if I might have missed it because I joined a little late. So what percentage of revenue comes from the top-five customers and like has this concentration changed you know, meaningfully in the last one year?
Madhu Sudhan Bhageria
Top-five would contribute maybe around 7% or 8%. It’s not — and we have a very wide base of customers. So there is no one customers taking more than 1.5%, 2%.
Raj
Okay, got it. And like can you share the name of your top-five customers like who are the ones who are hello? I don’t have it ready. I cannot give you the name of this question. Okay. Thank you so much thank you thank you.
Operator
The next question is from the line of Ujit Sagar from Pinpoint X Capital. Please go-ahead.
Unidentified Participant
Sir, just a follow-up question on the recycling technology, Equilysis. So is there anybody else in the world who is doing the same like have they proven this technology? And I suppose in India, there is another company called Esther which is doing a JV with Loop other than that are there any companies who are experimenting with the saving process?
Madhu Sudhan Bhageria
See India Esther has announced Esther I don’t know whether they are still going ahead or not because loop technology is still not proven in the individual like one in US umber cycle then another one is carbo
Unidentified Participant
Okay and what kind of capacities are these people processing, sir?
Madhu Sudhan Bhageria
So they are planning to port like Carbios is planning to port I think around 100 tons 100 tons 100 tonnes per day, all expos. But they are all on the similar stages. They have not gone ahead and their productions are expected anywhere in calendar year ’27, not before that. And that’s why a lot of money like RBS might have spent more than $50 million $60 million in research, Loop has spent more than $100 million. Okay. So do we see that study still going ahead? I heard a rumor that they are dropping this project. Sorry.
Operator
Sorry to interrupt, Mr Udit, your voice was not audible. Could you please repeat your questions again?
Unidentified Participant
Can you hear me now, sir?
Madhu Sudhan Bhageria
Yes. Yes, sir.
Unidentified Participant
Yeah. I’m saying, sir, it’s such a first and unique technology. So once we establish it at a full-scale, do we plan to scale it up further or even think of licensing it to other manufacturers?
Madhu Sudhan Bhageria
Yeah, we can do both. The demand is so much, both can be done. We will definitely like to scale it up ourselves also. And if we find good people and who can — we can license it too, we will definitely look into that also. And the sale rate of these recycled fibers, are they different from the rates of the years from quarter, even though that is not up to the mark but still sold at around INR45 to INR50 more than the virgin fibers.
Unidentified Participant
Okay. Great, great. Thanks. Great. Best of luck for this project.
Madhu Sudhan Bhageria
Thank you so much. Thank you.
Operator
Thank you. Participants, if you wish to ask a question, you may press star and 1 the next question is from the line of Jain from First Water. Please go-ahead.
Unidentified Participant
Good afternoon, sir. As you said that the price of the recycled fiber is INR40 to INR50 higher than the virgin fiber. Is this the main reason — is this the main reason we are going to make higher margins in the recycling project or there are some other reasons also?
Madhu Sudhan Bhageria
And that’s the main reason because the customer is mostly branded clothes manufacturers, they want to produce everything from recycle. They are not able to buy recycle as much as they want. So it’s based on that only. But yes, we have factored in even if it drops to like INR30, INR35, still the margin should be intact because our cost of production will be much that will give us some extra margin than the margin of the virgin and then this extra margin on-top of that.
Unidentified Participant
Okay. So if the price gap normalizes in the range of suppose 15% higher, so what could be our normal margins in recycled project? Yeah. So then our margins will — what I have said, INR80 crores can drop to maybe INR55 crores INR50 crores.
Okay. So if you can still be making a good profit.
Madhu Sudhan Bhageria
Yeah.
Unidentified Participant
Okay, got it. Yeah, thanks, sir.
Madhu Sudhan Bhageria
Thank you.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question to the management, you may press star N1 at this time as there are no further questions from the participants, I would now like to hand the conference over to the management for their closing Comments.
Madhu Sudhan Bhageria
Thank everyone for joining us and sparing the time to join us. We hope to have con-call again after three months in the next quarter results. Thanks a lot. Bye.
Operator
Thank you thank you. On behalf of Vilatex India Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you