Filatex India Limited (NSE: FILATEX) Q3 2026 Earnings Call dated Feb. 09, 2026
Corporate Participants:
Madhu Sudhan Bhageria — Chairman and Managing Director
Analysts:
Chanvi Kankariya — Analyst
Surya Nayak — Analyst
Neeraj Mansing — Analyst
Siddharth Basi — Analyst
Virtual Gen — Analyst
Aryan Bhatia — Analyst
Swayam — Analyst
Presentation:
operator
It. It. Sam. Sa. Sam sa. Ladies and gentlemen, you are connected for the Solatics India Limited conference call. Please stay connected. The call will begin in the next two minutes. It.
operator
Good afternoon ladies and gentlemen and welcome to the Phylatics India Limited’s Q3 FY26 earnings conference call hosted by BrandingEdge. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Chanvi Kankariya from BrandingEdge. Thank you. And over to you Ms. Chanvi.
Chanvi Kankariya — Analyst
Thank you Sopnali. Good afternoon everybody and welcome to Filatex India Limited’s earnings call to discuss the Q3 and 9M FY26 results. We have on call with us Mr. Madhusuddhan Bhagaria, Chairman and Managing Director, Mr. Ashok Chauhan, Chief Visionary Officer and Mr. Nitin Agrawal, Chief Financial Officer. We must remind you that the discussion on today’s call may include certain forward looking statements and must be therefore viewed in conjunction with the risks that the company faces. May I now request Mr. Madhusudan Bukhariya to take us through the company’s business outlook and performance subsequent to which we will open the floor for Q and A.
Thank you. And over to you sir.
Madhu Sudhan Bhageria — Chairman and Managing Director
Thank you janji. Good evening and a warm welcome to. All of you attending our earning call. For the quarter ended December 2025. Joining me on this call are Mr. Chauhan, our Chief Vision Officer and Mr. Nitin Agarwal, our CF. I’ll begin with a brief recap of. Our financial and operational performance for the quarter. On a quarter to quarter basis, the. Company delivered a meaningful improvement in profitability. Despite. Relatively stable volumes. Revenue for Q3 FY26 stood at 1050. Crores compared to 1076 crores in Q2 FY26 sales volume 1, 318 metric ton. Largely in line with 1,391 metric ton. In the previous quarter. Despite marginal moderation in revenue and volumes. EBITDA numbers increased to 93.58 crores registering a 5.23 quarter on quarter growth reflecting improved operational efficiency and cost discipline. Profit after tax rose sharply by 16.3% to 55.33 crores compared to 47.58 crores in Q2FY26 indicating better operational leverage and margin expansion. Year on year basis, profitability showed a strong improvement. Revenue stood at 1049.7 crores compared to. 1,068 crores in Q3 FY25. Sales volumes were 1,318 metric ton margining. Lower than 1,1432 metric ton. In the corresponding quarter last year, profitability metrics improved materially. EBITDA increased by 24.16% to 93.58 crores. From 75.37 crores in Q3FY25. Profit after tax rose by 16.3% to. 55.33 crores compared to 47.43 crores last year. In first nine months of the current. Fiscal year we have exceeded the total EBITDA impact achieved in the entire previous year. Domestic demand remains stable during the quarter despite ongoing geopolitical uncertainties and volatility in raw material prices. Consumption of polyester yarn held steady and. We expect gradual improvement in demand conditions. Over the coming quarters aided by better export visibility. Release has been the non acceptance by Ministry of Finance of the DDTR recommendation. On energy dumping duty on meg. This removes a significant cost overhang for the polyester value chain. The issue of the inverted GST duty. Structure on PT and MEG continues. However, the withdrawal of QCOs on yarns and PTA has eased supply side constraints. This allows access to competitively priced imports. Of pta, particularly from China which currently has surplus capacity. Softening PTA import prices would partially mitigate. Margin pressures arising from YAN imports from China. Recent global trade developments are decisively positive. In India and Apple sector for India and Apple sector with clear downstream implications for yarn manufacturers. The EU Free Trade Agreement is expected to improve market access and create a more level playing field particularly for value. Added textiles and apple exports. EU is a market worth 371 billion and Indian exporters are likely to have a breakthrough into this market. Export of textile and apple will help stabilize domestic demand also in the United States. The proposed tariff structure significantly improves India’s competitive position with China facing tariffs of around 34% versus approximately approximately 18% for India. The relative gap of 16% is meaningful. And structural rather than marginal. US market size is also large at $300 billion. The tariff differential may provide an edge which was missing due to high cost of raw material visa with China. This tariff deface the pension substantially improves the attractiveness of sourcing from India and importantly neutralizes the disadvantage that Indian exporter face visually Vietnam and Bangladesh and a distinct advantage against China. The US remains the single largest global market for textile in April and any. Sustained improvement in India’s export and competitiveness. Is expected to translate into higher export orders for fabrics and garments, better capacity. Utilization across textile value chain, improved demand. Visibility and pricing stability for polyester filament. Yarn in the domestic market. For a yarn manufacturer’s perspective, these development. Represent a clear medium term demand tailwind rather than a short term sentimental shift. A brief Update on the capex the. Company continues to execute its 690 crores. Strategic investment program focused on capacity expansion. Sustainability and energy efficiency and automation. Progress across projects remains largely on schedule except for minor regulatory delays in the Renewable Energy Initiative. We are going about the medium term. Prospects of the polyester industry, structural capacity. Additions in pta, easing of policy related. Cost risk, improving global trade sentiments and disciplined execution of our CAPEX program together provide a strong foundation for sustainable growth and margin resilience. Thanking you for patient listening. Now I’ll be glad to answer any of your questions. Thank you.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question from the line of Surya Nayak from Sunidhi Security. Please go ahead.
Surya Nayak — Analyst
Hello, I hope I’m audible. Yeah, yeah thank you. Thank you sir. Giving me opportunity. So a couple of questions. One is what is the status of the RE power with torrent energy that is we were dealing with and whether any further delay in that front and secondly other I’m believing that the August CAPEX are on stream that is I think any clarification on that if any delays happening anyway and thirdly is that to understand what will be the key figure for the the first recycle plant that now we will be observing the success of that to trigger for further setting up of planning for the further setup of the similar plans elsewhere.
So there are three and I’ll have some common question later.
Madhu Sudhan Bhageria — Chairman and Managing Director
That’s why it was supposed to start. In June July but now it is. Getting postponed to October November and we. Have had a site visit and we. Feel they should be operational by October for sure they had some issues with. The government regarding evacuation of the electricity. Now all has been cleared and we see by October it should be done. Rest of the projects are all on. Time which in our hand that was. Something which was not in our hand because we have tied up with torrent that we are equity participant. And although we’ll be getting 100 power. But the implementation is nothing hard. Regarding recycle, the key figure would be. Once the product is acceptable by the customers and we come to a steady. State sales and full production then you would be looking for further putting up. New plants and at what scale we should put up. All that depends how soon we are able to sell and what success we get with these customers. Because it’s a new product, it’s a new technology. But I think timeline should be three. To six months after the startup of the plant.
Surya Nayak — Analyst
Okay. So as a like. Like you know our. The virgin polymer business. So will it take at least not six months? Because in the virgin case generally we start with offer on to maybe 80 to 90% utilization. Because that is the scale is needed. But no. But in case of the recycle what would be the utilization percentage? That would be. We will be watching for.
Madhu Sudhan Bhageria — Chairman and Managing Director
We can start with 50 minimum. And we already. That’s why we have started to tie up with the customer right now only. And we have had a MOU with the decathlon. Everybody knows. So like this we are trying with some more customers. They still time and we should be. Able to have a tie up with them. And we are also giving them some sample products from our pilot plant so that they are sure about the quality. And they can sign take up agreement. I mean off take agreements with us. Even before the plant starts. Hopefully it should not take much time, maybe three to six months to come to full stream.
Surya Nayak — Analyst
Okay. And for. For that the raw metal linkage from the Readyman garment pressure players, the cot those are actually in place. So there we will not face any issues.
Madhu Sudhan Bhageria — Chairman and Managing Director
We are in the process of doing that. But there are a lot of consolidated. In Gujarat who are buying from all these people who are making the fabrics and garments and they are consolidating that waste and selling. So we have tied up tasks with them and they are assured they’ll be able to supply the volumes.
Surya Nayak — Analyst
Okay. And regarding realization of the virgin polymer, there is some. Some mild reduction in the. You know, realization side. So just to understand whether this kind of level will be maintained throughout the maybe Q Q4 and Q1.
Madhu Sudhan Bhageria — Chairman and Managing Director
Q4 will not be as good as. Q3 because government had lifted BIS on. All but 12th or 13. I don’t remember exactly. So after that there is a flood of Chinese products coming to India. So there is a pressure on margin. So it will be slightly lower than. What we have done in Q4, Q3, Q4 could be slightly lower than that. But we are trying to mitigate that by various ways. But still it will be slightly lower than Q3.
Surya Nayak — Analyst
So how much the current differential between the US sorry China and India as.
Madhu Sudhan Bhageria — Chairman and Managing Director
Of now see China, India productize. We go like poi what we were the margins were before bis. There is a less maybe very small difference. Pty also the difference is not the major difference has come in fty F DY pricing in India were quite high compared to Chinese. So that has come down. But recently when Chinese prices have started going up and now China is going for a holiday for almost 15 days.
Surya Nayak — Analyst
Let’s see when they open up, what. Are their price levels?
Madhu Sudhan Bhageria — Chairman and Managing Director
Yeah, yeah.
Surya Nayak — Analyst
Just not just to understand because the current scenario post the EU deal, what I understood is, you know, Turkey was a major supplier of yans one of mans to European side. So Turkey was outside the EU and that will be impacted. So in that case, given our uncompetitiveness to export market because of the China’s dominance. So will we see that? No any kind of.
Madhu Sudhan Bhageria — Chairman and Managing Director
EU TT is enforced then? Definitely we will see improvement in the margin. Right now EU treaty has been signed, but it has not been enforced. It has still to pass certain legislative measures in India as well as in Europe. So once that come into force we will have advantage over China, this thing even in the yarn and other garment and fabrics and everything. So then margins are likely to improve. And see all these development have happened very recently. Even the US development has just happened two days back. Only the 25% extra tariff has been lifted.
This 18 has still not come into force. It might come into force maybe in next one or two weeks or three weeks. I don’t know. All these things are changing so rapidly, very difficult to predict. But these are positive signs and maybe. We we are able to improve our. Margins maybe from next month, but I. Think from next quarter definitely there should be some improvement in the margin because US will come into effect by then. Europe I think will take another six. Months to come into force, whatever we. Have heard in the news. But at given point of time, even if the export market looks healthy, maybe post EU enactment, we will not think of further going into the virgin side. I mean the man metric profile. We will first explore the recycle and if we don’t see much scope there. Then we’ll go into the virgin side. We want to expand only in the. Recycle because that is something very proprietary. To us and we don’t see much. Competition over there in some new thing. And if it’s accepted then because we. Have limited resources, we can’t grow everywhere. Correct. But we’ll go multiple, multifold in that field. It will not be a similar plan. It would be either five times, seven times, depending on how it goes. So maybe our long term ambition is to have around 1 lakh plus capacity, aggregate capacity put together. Long term vision would be to have more than one million. One lakh is too small. Next month around 27 000. We are starting with. Yes, just four times. I said the next point would be at least five to seven times. Okay, but for that the raw material linkage should be in place. Otherwise you know that, I mean you. May not get that there’s a lot of raw material available. Okay. A lot of brands which are ready to do. There are a lot of European countries which are ready to. But we are already exploring every possibility. We started exploring that and any timeline. Aspirational timeline you have set for that 1 million capacity of recycling. Once this plant is operational, I’ll be able to.
Surya Nayak — Analyst
Okay. Okay, thank you. I’ll comment.
operator
Thank you. We have the next question from the line of Neeraj Mansing from White Pine Investment Management. Please go ahead.
Neeraj Mansing — Analyst
Thank you for the opportunity. I just wanted to know a few things. Just on the. On the tariff side, assuming the European tariffs are approved, European FTA is approved by their own parliament. Can you just start some number wise understanding how we are competitive versus China on the imports into US as far as yarn and fabric is concerned.
Madhu Sudhan Bhageria — Chairman and Managing Director
Right now the tariffs in Europe are ranging from 5% to 12% depending on the category of the product. So from yarn to fabric to garment. So India, what we here will go into zero tariff. China will have this same tariff, water today. So India will be more competitive to that extent against China. China is the biggest exporter both to. EU and to usa. So it’s a big chunk like India. Exports percentage wise would be maybe 5,6% to Europe. US I think is around 8,9% of their total imports. But China is close to 28,30 of their total imports. So now we’ll be competitive against China and also main exporters, which is Vietnam and Bangladesh. Their LDC status will also finish in. December 2027 which gives them a zero duty in Europe. Yeah, so all that will help us to compete with them because we can. Compete with the Bangladesh and Vietnam even. At the same duty. But they were enjoying zero duty whereas Indians were paying more duty in Europe. So now we’ll be at par with. Them at Least once this is effective. And will be better off than China. But. But are we. So is the difference in price so narrow that we. Even if say a 5% duty in Europe goes away, we can see. Yeah, even 1% you leave the order. That’s the kind of competitiveness. 5% is a very big number. And for garment Also, I’m sure 5, 7% are a very big number. The, the margins in export businesses are not that great. Only in retail and other things are market. Yeah.
Neeraj Mansing — Analyst
Yeah. Okay. So any thoughts you have? And, and does Turkey import yarn as a whole from China?
Madhu Sudhan Bhageria — Chairman and Managing Director
Yes, that. No. Yeah, it imports from China as well as India. So India also sells.
Neeraj Mansing — Analyst
So because there’s a reciprocal tariff, there’s a quid pro quo that Turkey needs to implement. So wouldn’t we benefit on the exports to Turkey if the yarn demand goes up if. If the EU FTA signed?
Madhu Sudhan Bhageria — Chairman and Managing Director
Yeah, definitely will benefit. But. And okay, but any numbers, your thought on how much the margins can go up or. I know it’s a commodity business. It’s very difficult to say right now. Everything has just happened in last one month. Not even one month fully the 27th. Of January, I think the EU agreement was signed and US came on 1st or 2nd of February. Right. And I slightly missed the starting point on the recycled polyester.
Neeraj Mansing — Analyst
What is the data?
Madhu Sudhan Bhageria — Chairman and Managing Director
I’m very sorry, I missed an initial remark. We are on track. Hopefully we should start production by end of September. Everything is on track. Okay. And. Only on the power front. The power front we are delayed because. We are dependent on tolerance which we have signed. So they had some evacuation issues with the government. So we have also sent a person, we had a site visit. Their equipments are there and I think. They should be operational by October.
Neeraj Mansing — Analyst
Got it. All right. But in terms of margins, how is it faring right now for the entire polyester side?
Madhu Sudhan Bhageria — Chairman and Managing Director
Margins are under pressure, especially in FDY. After the BIS has been lifted because FTY prices are quite low in China. And especially only one item of LTY which is coming. Is there two varieties in. One is seminal, one is bright. So they are. They have ample production of seminal. So seminal margins are under pressure more than the belt.
Neeraj Mansing — Analyst
Okay. And any. Any numbers on how much the margin has fallen on the FDY side?
Madhu Sudhan Bhageria — Chairman and Managing Director
In one side, yes. In seminal it has fallen by 6 to 7% and bright. Maybe 2%, 3% something.
Neeraj Mansing — Analyst
Okay, I’ll come back to the queue. Thank you very much.
operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. We have the Next question from the line of Siddharth Basi, an individual investor. Please go ahead.
Siddharth Basi — Analyst
Hi, good afternoon. Firstly great set of numbers and great. Outlook on the business. So no complaints on the business front and with respect to what the management is doing. This is a two part question from my end and the second part will be a slight critique. The first question, there have been rumors in the market regarding anti dumping duty coming on the Chinese yarn into India. So any clarity on that? Is the company expecting the same? And if that were to happen what sort of margin improvements do we see? And secondly this is more with respect to being a minority shareholder while the company is doing a great job.
And I don’t have an issue with respect to the business being run as a minority shareholder. When you know you see on the Bombay Stock exchange over a month only 100 unique fans have traded the stock. The stocks valuations are nowhere close to what the numbers reflect and what the peers in the market are. Can the company or the management ensure greater interaction with mutual funds, greater interaction with PMSs so that the larger PMS mutual fund and retail community becomes aware of the business. Because while the business is doing really well, true value creation for a minority would happen when there is an improvement in the PE ratios and the know stock pricing.
With respect to the numbers that we’re throwing out year on year in a great way. Thank you.
Madhu Sudhan Bhageria — Chairman and Managing Director
The anti dumping duty only there is one anti dumping investigation going on that is on Texadian. I don’t know the outcome will be. But yes there is an investigation going. On on TE. And your other question regarding the evaluation and other things. So we have recently hired an IR and a PR firm and let’s see. Maybe it will help to improve the image of the company amongst the investors and give you a better return in the soft market.
Siddharth Basi — Analyst
Thank you so much and congratulations and all the best.
operator
Thank you. We have the next question from the line of Virtual Gen from Universal Consultancy. Please go ahead.
Virtual Gen — Analyst
Hi, can you hear me?
Madhu Sudhan Bhageria — Chairman and Managing Director
Yeah.
Virtual Gen — Analyst
Thank you for the opportunity. My question is on the quality control order and the impact of its withdrawal on company’s margin and debt repayment schedule. With regards to capacity utilization, what is the projected capacity utilization once ecosystem goes live? And additionally how is the capacity expected to increase on a quarter on quarter basis specifically for October to December 2026?
Madhu Sudhan Bhageria — Chairman and Managing Director
Yes, lifting has definitely impacted the margin. Somewhat because now people have access to China’s products. Because China is selling at a cheaper prices. They have better availability of the raw material at a better price because they are surplus in pg Also that is the main thing regarding your debt repayment. Our company is virtually debt free at the moment. So there is no problem that we will have a problem with the debt repayment because we have a debt of around 100 crores and we have cash reserved for more than 100 crores with us. So that’s not a problem. And going forward also, whatever debt we are taking is very minimal. But there should not be any problem with that. Regarding capacity utilization, Company is utilizing fully the capacities available. We had a small fire in October. 16Th in one of the plant. So we lost a little bit of production. That was around 11 1/2% of the total production. Otherwise we are always most of the time running and utilizing full capacity. So increase in the volumes will only. Happen once we put in more machines. We are increasing our capacity by approximately. 55,000 tons per annum and that should be operational by September 2026. So in Q3 of next year you will see improvement in the capacity. Before that the capacity will be more or less in the same order.
operator
Okay, thank you. I have another question. With signing of the European EU FTA and stronger EPR norms by the European nations, How does that impact our company? And I see that our exports have reduced quite a bit in the recent times. So does that increase our export share? And also how does us?
Madhu Sudhan Bhageria — Chairman and Managing Director
Yeah, it will increase our export share because we become more competitive against China once the EU is signed and become enforced. It is already signed, but it has. To be become enforceable. What was the other question? Sorry.
Virtual Gen — Analyst
Also regarding U S tariffs. The same thing regarding us?
Madhu Sudhan Bhageria — Chairman and Managing Director
Yeah, same thing will happen. And EPR tightening knobs will help us in our recycling initiative which we have taken up. The companies would be more than willing. To tie up with us because there is very. There is hardly any company which is doing textile to textile recycling. Most of the recycling which is happening. In the world is from bottle to textile.
Virtual Gen — Analyst
Okay, and are there any other competition companies in circular polyester recycling?
Madhu Sudhan Bhageria — Chairman and Managing Director
They have announced projects but our would. Be one of the first one to start. I don’t know what will happen once one day coming because they have announced that nobody is coming before anytime mid. 27Th and they also first time projects for them. This would. It’s not that they are doing it all. All of them have done some pilot. Scale plans and now they are all scaling up. Then everybody has a different technology. It’s not that all technologies are similar is ours is one of the least capex per ton wise. If you will see the numbers, ours. Is least capex part Time wise of production for turn of production. Our capex is the least compared to any other which is coming in the new region.
Virtual Gen — Analyst
Okay. And these are like the competition is Indian companies or international companies?
Madhu Sudhan Bhageria — Chairman and Managing Director
Both. There’s one Indian company which is coming up and there are quite a few international companies. In total I would say there would be total maybe five or six, not more.
operator
Okay. Thank you. A reminder to all the participants. You may press star and one to ask a question. We have the next follow up question from the line of Surya Nayak from Sunidi Security. Please go ahead.
Surya Nayak — Analyst
Just to understand globally what is the mandate being given to the garment maker to source recycled fiber? So let’s say in. In. In the context of aggregate fiber that has been used. If you can give some color on that. And secondly our estimates are still. We may not be requiring for the equation date for the projects. So what is the thought process in your case? Whether year ending dates will be rising or it will be at the same.
Madhu Sudhan Bhageria — Chairman and Managing Director
Place, same level rates of what rising? Pardon Sir, I couldn’t get your last question. What was it?
Surya Nayak — Analyst
Yeah, earlier you were saying that now around close to 120 to 130 crore deal to be raised for the purchase of some German machineries. So whether we will be requiring at all other dates because the internal generations are quite robust.
Madhu Sudhan Bhageria — Chairman and Managing Director
Yeah, yeah. We will be taking some debt like. For recycling we have paid tied up for 200 crores of debt. And if our internal accruals are good. Abby will take draw less than that. And for other expansion of the yarn in parents company fellow tech we have tied up for the ECB loan against. The machinery which we are importing. So that in any case will take. That is 130 crores. I mean it’s in YOLO. If the Yano value changes, it changes approximately 130 crores.
Surya Nayak — Analyst
Okay, so. So in all how much date you are expecting to take in FY projects.
Surya Nayak — Analyst
Are completed it will be like 330 crores of new debt.
Madhu Sudhan Bhageria — Chairman and Managing Director
New debt. Okay. And regarding the effects fluctuations. If you can give some color as to what it is one of giving rise or let’s say creating a trigger for rise in the fluctuations. Whether it is related to that I cannot. I’m not an expert on the currency. I cannot see what triggers.
Surya Nayak — Analyst
No, no. On account of what actually I mean is it related to raw metal import of raw metal or what? Actually that is what I’m saying. Whether an operation.
Madhu Sudhan Bhageria — Chairman and Managing Director
Raw material. Yeah, raw material. When we import, we import in dollars and we get a LC 90 days. Credit and we keep on hedging it. As and when we are advised. We have kept advising company who keeps. Advising how to progress in the foreign currency because we are not experts according. To the advice of that person.
Surya Nayak — Analyst
Okay. And so what is the update on the Gale’s PTA plant? Because we are here numbers.
Madhu Sudhan Bhageria — Chairman and Managing Director
I think when I talk to the company, they are saying they’ll be able to give material by April. Okay. But the some people are there, some people are saying they’ll come by June. IOC is likely to start from October, November this year. Okay. Then the what the benefits we were expecting from the first quarter, last quarter of the current fiscal that will be spillover to maybe next next next quarter. Right, Right. And regarding the mandate, overall mandate of the garment makers to. To source the recycled fiber, if you. Can, extended producer responsibility among all the producers who are selling in Europe that they have to use certain percentage of recycled material. And their government is also insisting that that recycle should be textile to textile. Not bottle to textile. And they also want to use that, but it is not available as of now. So they are forced to use the bottle to texture. Even if they want to use. The availability is not there. Okay. With various people who are coming with textile to textile already. So is it. Is it some kind of color? You got like, you know, maybe 25 to 30% of the Virgin fiber they need to procure a recycled one. Right now I think the. The mandate is starting from 25 to 30%. And lot of companies have said by 22030 or 2032 they will go 100% on that. It all depends on the availability of the yarns also. Okay. Okay. And it is not only polyester. They must be using maybe recycled cotton or other fibers also. Okay. But we are not going to get any benefit from the EPR site once our facilities will be our benefit is. That today the demand is there in the prices are much more than the virgin. The demand of virgin these recycled prices are very high compared to the virgin prices. So you still believe that now whatever you have guided earlier of 35. Yeah, that kind of mar. Yeah, they are easily. They should be getable. I mean nobody can guarantee, but they should be getable. Because what I hear the prices in the market are much more than what I have writing. But much depends upon whether the new capacity is coming in place as how soon that new capacity coming in place. Because you know, so don’t worry about. The capacities coming in. The demand is much more than the capacity which will come in next three to Five years.
Surya Nayak — Analyst
Okay. So all depends on how quickly we scale up our business. That is important to. Yeah, yeah. Thank you sir.
Madhu Sudhan Bhageria — Chairman and Managing Director
Thanks.
operator
Thank you. We have the next question from the line of Aryan Bhatia from NVID research. Please go ahead.
Aryan Bhatia — Analyst
Thank you. Thank you. My question, my first question is regarding the timeline. Can you provide the timeline of all the capex which coming in? When will this all be? Timeline?
Madhu Sudhan Bhageria — Chairman and Managing Director
All the capex are on timeline other. Than the torrent which I have explained again like torrent of hybrid power is a little delayed we thought. I think it should be operational by June, July. Now it will be operational somewhere in. October or November beginning. So all the capex will be live. By 27 or 28. So other capex are all going to be operational by September 26th. This will be operational by October, November. 26Th only nothing in 27.
Aryan Bhatia — Analyst
Okay, got it. And so my second question is running the withdrawal of bis. Can our margins be like similar to what happened in 2324 due to Chinese dumping?
Madhu Sudhan Bhageria — Chairman and Managing Director
No, no even see China is also. Going for the anti ocean policy. You might have heard for a lot of products they are closing their inefficient plants. Any plant which is older than 15, 20 years, their government is closing that and they are also trying to improve their margins how long they’ll keep on subsidizing the world. Okay, so there might be a 50, 200 basis point of impact due to this. Not much like I don’t think more than. Yeah, more than that should be there. But maybe effect of your US FTA. Then EU FTAs would mitigate all these. Also in the coming quarters.
Aryan Bhatia — Analyst
Got it, got it. So my last question is on that like current we have 100 crores of debt and incrementally we are taking 330 crores. So overall debt will be 440 crores.
Madhu Sudhan Bhageria — Chairman and Managing Director
Yeah. And also we’ll be repaying so maybe by the year, I mean end of FY27 we might be still net net maybe 360 or 350, something like that.
Aryan Bhatia — Analyst
Okay, got it. Thank you. Thank you.
operator
Thank you. We have the next question from the line of Swayam from Pinpoint X Capital. Please go ahead.
Swayam — Analyst
Hi sir, I just have only one. Question like what is your future plan? Once the first recycling project is a success.
Madhu Sudhan Bhageria — Chairman and Managing Director
Future plan is to grow on that and the next plant should be at least five times the capacity of this. Okay, I know we already started looking. Where we should put it. We are also exploring if we can go out of India. There are certain places in Europe where. We are talking they they might offer. Some incentives to take care of the. Dumping of the garments in those countries.
Swayam — Analyst
Okay, so do we like in future we would be needing, you know, more fund for this. And will it be utilized by internal accrual or like debt?
Madhu Sudhan Bhageria — Chairman and Managing Director
Yeah, it will be always a combination of internal accruals there. We can raise equity also in the future if required. And how much capex would it might take? Should be the vicinity of anything around 1500 crores. 1500S here. Yeah. Okay. Thank you very much, sir. That’s all from myself.
operator
Thank you very much. Ladies and gentlemen. That was the last question for today. And with that we conclude the question and answer session. I now hand the conference back to Mr. Madhu Bhagir for the closing comments. Thank you. And over to you, sir.
Madhu Sudhan Bhageria — Chairman and Managing Director
I’d like to thank everyone for participating. And spending their time to join us. And hope to talk to you, all. Of you on the next call of Q4 of this year. Thank you everyone. Bye.
operator
Thank you. On behalf of Branding Edge, that concludes this conference. Thank you for joining with us today. And you may now disconnect your lines.