Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Godawari Power And Ispat limited (NSE: GPIL) Q4 2026 Earnings Call dated May. 20, 2026
Corporate Participants:
Sanjay Bhutra — Chief Financial Officer
Dinesh Gandhi — Executive Director
Analysts:
Sahil Singhvi — Analyst
Manav — Analyst
Unidentified Participant
vinit Thakur — Analyst
Presentation:
Operator
Ladies and gentlemen. Good day and welcome to Godavari power and his Path Limited Q4 and FY26 earning conference call hosted by Monarch Network Capital Limited. As a reminder, all participant line will be in the listen only mode. And there will be an opportunity for you to ask question 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. Please note that this conference is being recorded.
I now hand the conference over to Sahil Sanghvi from Monarch Network Capital Limited. Thank you. And over to you Sahil.
Sahil Singhvi — Analyst
Thank you, Ranish. Good afternoon everyone. It’s a pleasure to welcome you on behalf of Godavari Power and Export Limited. Please note that today’s discussion may include certain forward looking statements and therefore this must be viewed in conjunction with the risk that the company faces. We are joined today by Mr. Abhishek Agarwal, Executive Director. Mr. Dinesh Gandhi, Executive Director, Mr. Sanjay Bhutra, Chief Financial Officer. May I now invite Mr. Sanjay Bhutra to present the company’s business outlook and performance.
After which we’ll open the floor for Q and A. Thank you. And over to you sir.
Sanjay Bhutra — Chief Financial Officer
Thank you, Sahil. Good afternoon everyone and thank you for joining us on today’s call. Our financial results and earning presentation have been uploaded to our website as well as the stock exchanges and I trust you have had an opportunity to review them. I will now briefly walk you through the key highlights of the results following which we will open the floor for a question and answer session. We are pleased to share that FY26 has been a year marked by several significant milestones and strategic achievements.
Despite soft realization, GPL delivered good set of numbers with revenues remaining steady and EBITDA and PAT margin strong at 23% and 15% respectively. On the operational front, GPL delivered a strong performance in FY26 successfully achieving its production targets across key segments. Sponge iron structural rolled products in Ferru alls surpassed their targets with production exceeding 100% of planned levels. Meanwhile, mining pallets and billets achieved 92%, 95% and 96% of their targeted production level respectively.
In FY26, healthy production ramp up was seen across iron ore mining, pallet production and structural rolled products. Q4 witnessed robust Yui growth in pallets, Spongara and structural roll products supported by capacity ramp up and healthy demand. The sales volume in FY26 showed an increasing training. Pallets Spongaran galvanized fabricated products and structural roll products. In Q4 the growth momentum of sales volume remained strong led by pellets in structural products. Q4 witnessed sequential improvement in the realization driven by better pricing momentum across the steel value chain while FY26 realization remains softer across key products.
Coming to the consolidated financial performance, FY26 revenue remained stable while Q4 FY26 revenue recorded a strong 41% quarter on quarter growth supported by a septic production ramp up, higher sales volume and improved realizations. FY26 EBITDA stood stable at 1253crores whereas Q4 FY26 EBITDA increased by 38% YUI basis and 91% QRQ basis to rupees 439 crore. FY26 PET also remained stable at 802crores with Q4 FY26 PET rising to 280crores. Cash flow from operating activities improved by 29% to 1157 crore driven by strong operational performance and efficient working capital management.
GPL continues to maintain a hefty balance it with the cash position of 837 crore. The standalone performance during FY26 also remained stable and health the standalone alone pat growth of 19% represent dividend income from Ardent Steel and exceptional income on sale of stake in Ardent Steel. However, in the consolidated results the stake held in Ardent Steel has been derecognized upon disinvestment of stake held in further dividend income and profit on sale of steel. Verdant Steel does not form part of consolidated results and therefore consolidated PET was lower as compared to the standalone pet.
Coming to the key achievements and strategic updates, I’m pleased to share that GPL received environment approval and consent to operate from the CECV in February 26 for the capacity enhancement of the Arino demise from 2.35 to 6 million ton. The ramping up of the capacities has already begun in a fast manner with full scale operation targeted from FY28 the iron ore venification plant capacity expansion at the Redondri mines increasing capacity 10 fold to 6 million tonnes is targeted for congesting by Q3FY27.
EPIS also received CTO from CCB for capacity expansion of this Spanish region from 0.59 million tons to 0.65 million ton HBY from 0.1 million ton to 0.115 million ton and for additional 7 megawatt waste heat recovery waste power plant taking the total wasted recovery power plant capacity to 49 megawatt EPL commission is 2 million ton iron ore pellet plant in December 25 taking total pallet capacity from 2.7 to 4.7 million ton. The plant is India’s first to use advanced natural gas based grade clean technology marking a shift from conventional carbon intensive processes.
GPL is progressing on its 0.7 million ton CRM complex project with on site construction expected to commission by July FY26. Order for key equipment lines have been placed and advanced payments have been released for all major process lines. The project is targeted for commissioning by mass FY27 GPL is setting up a 20 gigawatt base project for which soil testing has been completed and construction of the compound wall is currently underway. We have signed long term agreements with EV Power for grade one 628 as LFP sales and with Sanghai Semi Roche Energy Technologies for BC balance of system supply securing the project supply chain.
This project is expected to Commission from March 27. The board has approved the setting up of a 1 million ton integrated steel plant for manufacturing structural steel and wire rods. Land acquisition and environmental approval are in place while consent to establish is awaited. Discussion with equipment suppliers and project engineering are underway with construction expected to begin in October 26th. DPI is also expanding its captive solar power capacity by over three times currently from 165megawatt to 540megawatts to support captive consumption across iron ore mines.
Additional 2 million in pallet plant, CRM and upcoming integrated steel plant operation. In addition to current 165 megawatt, the company has commissioned solar power capacity of 25 megawatt yesterday only and additional 100 megawatt is expected to be commissioned by July 26th. On the ESG front, the company has completed most initiatives under its energy efficiency and decarbonization project, reinforcing its commitment towards achieving net zero carbon emission by 2050. As part of its EV led transition towards greener operation, GPL invested in 10 EV dumpers, 24 EV loaders and 15 EV exhibitors during the year.
The adoption of electric transportation has reduced operating costs by nearly 75% and lowered carbon emission by around 88% compared to conventional diesel vehicles. The company has plans to shift the existing transport fleet to EV fleet to reduce emission and cost saving which shall be announced in due course. Now coming to the market outlooks Lower iron good sizes remain relatively resilient during FY26 supported by steady demand from China, supply side disruption and LP steel production in emerging economies such as India Denchmark 62% the fee iron ore price largely traded in the range of 95 to $110 per metric ton during recent months.
On the domestic front, India witnessed a sharp rise in the iron ore imports and reached a 7 year high of 12 million ton plus NFY particip driven by strong steel demand and factors of high grade ore required by domestic mills. Despite higher domestic production, imports increased significantly highlighting robust consumption trend in the Indian steel sector. Looking ahead, the medium term outlook for iron ore tiles remains costly balanced, ensuring steel demand in China and expected ramp up of new low cost supply from Chimdao project in Guyana.
How we are Rising steel conditions in India and increasing preferences for high grade iron ore are expected to provide structural support to demand going forward for pallets in high grade iron ore. On the pallet front, demand for premium grade pallets continues to strengthen globally and decarbonization initiatives and the gradual shift towards gas based DRI steelmaking industry. Reports project the global iron repellent market to grow at a cagr of around 5 to 6% over the next decade supported by increasing adoption of cleaner steel making technologies.
Looking ahead, India’s pellet demand outlook also remains positive supported by ongoing steel capacity expansion and the industry’s growth focus on low carbon and high grade raw materials. In conclusion, backed by the competitive advantage of captive iron ore mines, a strong net case position, ongoing capacity expansion and a straightforward ASG focus, GPL remains well positioned to drive sustainable value creation through operational excellence, solar LED cost optimization and continued support.
All stakeholders, I would now like to open the floor for questions and answers.
Questions and Answers:
Operator
Thank you so much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press STAR and two participants are request to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Next question come a first question come from the line of Mano Gogia from yes, Securities Ltd.
Please go ahead.
Manav
Yeah hi, a very good afternoon and thanks for the opportunity. So first of all a lot of congratulations on a good set of numbers for the quarter. My first question on the iron ore mining guidance I might have missed in the opening remarks but for FY27 if we go to slide number 17 we have a guidance of 3.4 million tons for FY27. So now I think last call we were guiding that we would be doing somewhere around 4.5 to 5 million tons. So what’s changed? Is there some delays in the ore production? Can you please just help me with that?
Dinesh Gandhi
Yeah. So, couple of things. Firstly, so the guidance we’ve given is the net usable iron ore which will be sent to the pellet complex for using it because we will be beneficiating the iron ore in the mines itself. Once a 6 million, the beneficial plant commission. So the actual mining will be close to about 4 to 4.25 million tonnes this year with, you know, because 1.5 million will be BMQ where the recovery will be less than 50%. So about 0.8, 0.75 million tons of. I know will be, you know, wasted sailings.
So the actual iron ore mining production will be about 4 to 4.25 million tons. But the guidance we have given is the net usable iron ore coming to the plant for making pellets which is about 3.4 million tons. So this year we were doing about 4 to 4.25 million tons of iron ore production. And end of Q3, early Q4, we should be able to hit the rated capacity target of 6 million tons. And from FY28 we should be able to mine 6 million. And the actual output concentrate usable for pellet plant will be about 4.5 million tons.
That’s how you’re going to see it.
Manav
Okay, thank you for that. And this 3.4 also includes ore from Borea Tipu, or is it purely a reed only?
Dinesh Gandhi
No, see last year mining was hardly about 0.3 million tons. This year we’ll be doing about 0.5 million tons. Because again Bureau Depu is a very low grade ore. So currently we are bringing it to the plant and beneficiating where the recovery is hardly about 40%. So even if you do upon 0.5 million ton this year the usable I know will be about 0.2, 0.25 million. So which is, which is very not substantial. So 3.4 will be the net usable iron ore this financial year which will be going to the pellet plant.
Manav
Okay, understood. So to get it in a nutshell, we’ll be buying roughly 1, 1 1/2 million tons of iron ore for our pellet. About, about,
Dinesh Gandhi
Yeah, close to about a million ton. But, but that, that will, that will drastically come down post Diwali, which is November. Once we are able to achieve the rated capacity post monsoon as a, as a year old, we can see a total mining to be about 4.5 million ton. Including Bureau DEPU net usable iron about 3.4, 3.5 million tons for this financial year.
Manav
Okay. You know the new mine now putting in the oath from this year onwards how do we see the landed cost of ore changing? Do we expect it in the 29003000 rupees per ton range? No, this,
Dinesh Gandhi
This year unfortunately. So if you see now so because of the diesel escalation and the shortage all over because the war. So our transportation cost is already up by you know to 250 bucks. So but for the full year we see the value to be at the same similar levels of 3,000. And Mr. Bolsa just mentioned we have started talking to the transporters. We want to complete the entire fleet to EV trucks to have a substantial saving on the, on the diesel side. So this year the guidance will be in the similar level which is about 3000, 3200 levels.
But Q3, Q4 onwards we can see a substantial reduction in the pricing of mining.
Manav
Sure sir, thank you. My second question is, you know how, how do you feel the pricing in Q1 as compared to Q4? Across Q1
Dinesh Gandhi
The pricing was pretty much at the same level. The Q4 for the first half of Q1 but the second half of Q1 say end of April, early May, the prices have you know softened a bit almost by 10% across the supply chain. It might be a war effect, it might be you know, the summer season or the heat, you know, heat wave which is across the India right now. So Q1 the prices have softened almost 10% across the supply chain post in end of April onwards.
Manav
So. Okay, that’s helpful. So just one last question. I was looking at a slide 25 where we have a vision for 2031 and you know we have a bit growing substantially from the current levels. So just want to get a. What all are you you know looking at from a company’s long term strategy point of view? Is it the current projects is what the estimate is or there are certain projects which haven’t been announced or I mean you know. No, no,
Dinesh Gandhi
No, no. So it’s basically the revenue top line coming from all the projects they’ve announced. So if you see the best battery storage which is about 20 gigawatt. So if you consider about 16 gigawatts from there we see a top line of about 15,000 crores. A new steel plant, we see a top line of over 6,000 crore. The CRM we see a top line of about 3 to 4,000 crore. And with the pellet capacity you know crossing 4 million this year. So put Together you know the current complex and the projects we’ve already announced we see a top line reaching close to about 30,000 crores in next four to five years.
Manav
That is helpful, thank you. All the best. I’ll join back with you for more.
Dinesh Gandhi
Thank you so much.
Operator
Thank you ladies and gentlemen, you may press star and one in order to ask a question. Our next question comes from the line of Sunil Jen from Nirmal Bank Securities Private Limited. Please go ahead.
Unidentified Participant
Yeah, thanks for taking my question sir, my question relate to more of a EBITDA growth what we had seen quarter on quarter so if we see the prices has remain more or less same 4 pellets though we had seen increase in other other commodities but the delta seems quite high in EBITDA growth as compared to what we had seen in the prices increase of the pellet. Anything? Yeah,
Dinesh Gandhi
Yeah. There are two reasons.
Unidentified Participant
The two
Dinesh Gandhi
Reason one is there was a carryover inventory of Iono pellets of about 89,000 tonnes in Q3 which got sold in Q4. So the additional EBITDA has come from there. Plus our new pellet plant started production end of Q3 which is December and we were able to reach to a 70% capacity. So the additional volume of pellets came in from there. And lastly was our mining production which was about 2.4 2.35 till last year. We got the EC approval you know at third week of February so March we could do that extra mining of almost about 2 2.5 lakh tons.
So majorly these three factors contributed to the additional EBITDA compared to Q3.
Unidentified Participant
Okay. And sir second question related to this so 20 million overall you will be do 20 gigawatt your overall you will be doing. And can you give the timeline how it will be starting means from first you will be starting 5 gigawatt and thereafter how you will scale. Sure,
Dinesh Gandhi
Sure, sure. So suceed with the current development we should be able to commission the the first line by end of Q4 which is March 27th. So first year FY28 we expect to do a, you know a 5 to 6 gigawatt of output which is hardly at about you know 30, 40%. Second year we want to scale it to about 70% which is at about you know 1213 gigawatts, 14 gigawatts and from we expect to do you know about 17 billion gigawatts. So next two to three years we should be able to reach to a 90% capacity. That’s how we have planned it for the phase one of 20 gigawatt line.
Unidentified Participant
And if you can talk about the margin in this base business,
Dinesh Gandhi
See when we started the project, when we conceived, you know we were expecting a margin of about roughly about you know, 7 to 8%. So today if you see today the price of one container is close to about 80 lakh rupees per megawatt hour which is about 4 crore rupees per container. So when we concede this project it was supposed to be about 78% so about 3 and a half, 4 lakh margin. But with current demand coming from Indian sector, you know, with the grid stability and all those things, the margins have gone up almost to 12, 13% at the moment.
But still if you consider a very conservative figure of 7 to 8% on a, you know, 80 lakh per megawatt, we do about a 4 lakh rupees of you know, net margin and basis that you can multiply to a 16, 18 gigawatt line. That’s how we have conceived the project. So a 4, 4 and a half lakh rupees per megawatt hour into a 16 gigawatt line comes about 700 crores if everything goes well.
Unidentified Participant
Yeah, yeah, great. Sir, anything something related to this only like how we are related to anything increase in lithium prices or lithium sales prices. If that happens then how we are safeguarded.
Dinesh Gandhi
See so as Mr. Botra announced we have done a long term tie up with a tier one Chinese company called eve. So the way we have, you know, priced the entire supply of the cells, it is, it is index based where we have captured few important components which contributes to the manufacturing of lithium cells. So if the market goes up the supplier will pass on the price to us. If the market goes down it will be vice versa. So for example if you see, you know six months back the prices of Lithium Chelsea were about 37, $38 per watt which is not about 55 per watt.
In the same way if you see six months back the price 14 in India was about 70 lakh rupees per megawatt hour. And today price quoted for the same container is about 85 lakh rupees per megawatt hour. So eventually any increase, substantial increase in the sell price will be eventually passed on to the buyers in the Indian market to maintain the margins. So the pricing we’ve done with the supplier is on index base so that you know it is fair to both the parties.
Unidentified Participant
Okay, great sir, thank you very much.
Dinesh Gandhi
Thank you.
Operator
Thank you. Our next question come from the line of Aman Kothari from Equitas Investments please go ahead.
Unidentified Participant
Yeah, thanks. Thank you for the opportunity for asking questions and congratulations on the wonderful set of levels Sir, I wanted to get a current understanding on the iron ore environment that we’re seeing recently we have seen that it has been hovering around 105, 110, currently around 107. So do you think these prices will be stable for the next of the year? And with them being at these prices our spread will eventually increase.
Dinesh Gandhi
See if you see about 15 days back the prices also touch about 110, 112 levels as well. With this watch situation and you know the currency fluctuation the prices have softened a bit but as you see the international reports I feel this year the prices should remain above 100 levels for the entire year. That’s what the international report says and that there is demand from China importing to India is also happening because of, you know availability of iron ore in India is not up to the mark So I feel $100 plus should be the target for the entire year on iron ore site.
Unidentified Participant
Got it. And sorry and for the pellet plant I think you mentioned sir it is a gas based pellet plant that we have set up.
Dinesh Gandhi
Yeah so. So earlier we’re using coal gas basically we get into gasification so now from coal gas we are shifted to natural gas. We have done a seven years MOU with gale for supply of natural gas. So a new plant, it’s running 100% the fuel is natural gas.
Unidentified Participant
So sir with that I think you clearly explained in the last call the difference between a coal based DRI pellet and a gas based DRI pellet. So you clearly stated you not want to look into let’s say a DRI that’s gas based but with this are we looking at that kind of an export market?
Dinesh Gandhi
We are see definitely with CBAM coming into picture with demand from export market and with the capacity of pellet being added in India the whole idea was we want to be export ready. So whenever we see the domestic demand is on the. For example today the domestic demand is on the weak side you might hear where would I be start exporting pellet for the next quarter. So we want to be future ready and that was the whole idea. Plus we also saved about close to about 100 crores of capex on the coal gasification side to generate the same kind of fuel.
So 100 rupees 100 crores capex was saved on the capex side. Plus we are future ready whenever export opportunity is there. That was the whole idea.
Unidentified Participant
Got it. And sir, for the coal, I think you mentioned last time that South African coal prices had increased because of the supply gut. So can you just give us an idea on how the prices are hovering for this quarter?
Dinesh Gandhi
See this quarter we very well covered within the limits. So our average pricing should be somewhere about 12 and a half, 13,000 rupees. But Q2 onwards because of the war impact, the sea trade has gone up substantially from 1516 is almost crossed $22 dollar is up from 93, 94 level to 97 level. So there is a substantial impact on the imported price from Q2 onwards at least by 15 to 20%.
Unidentified Participant
20%. Okay.
Dinesh Gandhi
Yeah, yeah, yeah, yeah, yeah. At the moment it is.
Unidentified Participant
And domestically we wouldn’t have a problem for the 40% mix that we have.
Dinesh Gandhi
No, see domestically. So at the moment we are close to over 100 using imported coal. We have been using imported coal to maximize the production levels in the dri. But any given point of time we can always switch to domestic coal. And the availability of domestic coal is abundant. There is no supply or gut in supply of domestic coal sourcing. So we can switch whenever we want to. So we are carefully monitoring this war situation and if you feel the situation is not dying down, so going forward we might shift to some part of domestic coal for dri.
Unidentified Participant
Got it. Perfect. And just a last question before I join back in line. I think we have established some really good tires in terms of our best setup, how we are progressing with, with Roche and other players. Sir, do you, can you just give us a sense on how do you think this market is going to play out in India? Because we’ve seen a lot of players announcing the capex or announcing the expansion into best projects that they would do. Can you just give us a bit light on how our talks with potential customers or early pipeline talks are progressing?
Dinesh Gandhi
See at the moment we haven’t gone to the market yet. We want to get into the market once we know we can deliver after a certain time period. So we intend to go into the market end of Q2, which is say about September, August. But see it’s an open market. People do feel the initial CapEx on the lower side, but it’s actually not. And the challenge will be a continuous supply from Tier 1 components across the globe. So that is the reason we feel the market is going to be competitive. But eventually what quality components and how you make the container eventually will play out.
So once you deliver in the market then only probably, you know, you can see who is able to deliver and not able to deliver.
Unidentified Participant
Yeah. Okay sir. Because I think in terms of capabilities, as we’ve seen China is the number one player in battery energy storage. And since they’re sourcing components from most of those tie ups, I think we should be in a very good capability.
Dinesh Gandhi
Yeah. So we also recently just to just to, you know, inform all the stakeholders, we recently also have tied up with FEMA which is a talent based company. They have a plant in India for PCs. And we have tied up with the Gujarat based developer for EMS which is compulsory as a part of battery storage by the Indian government. So we are continuously doing long term tie ups with key component suppliers so that we don’t, we have a, you know, continuous supply for all the components on regular basis.
Unidentified Participant
Thank you so much sir. I’ll just join back in line.
Dinesh Gandhi
Yeah. Thank you.
Operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star and 1. Our next question comes from the line of Vinit Thakur from Plus 91AMC. Please go ahead.
vinit Thakur
Hi sir. Thank you for the opportunity. Congratulations on visiting numbers. So I would like you to throw some line on the the EBITDA margin and what would be our conversion ratios? How do the conversion ratios work right now from mining to pellets to somewhere. That would be great, sir.
Dinesh Gandhi
The conversion from mining to pellet is about, close to about 2000 rupees. And from pellet to dri including thermal coal of course. So it comes to about. So the conversion cost, operating cost is about 15 rupees from pellet to DRI and remaining is your coal and iron ore cost. So iron ore is about 40%, coal is about 35%. And remaining is your operating cost. So today if you see a backup of say my production cost is 20,000 rupees, sort of that pellet will be about 10 rupees. Coal will be about 8 and a half rupees.
And remaining 15 rupees will be operating cost. That is a breakup for the dri.
vinit Thakur
Okay. And so could you shed the line of those structural products? Because there’s been a quite incremental Q and Y growth on those products.
Dinesh Gandhi
Yes. So couple of things once. So we took the RR Spad rolling mill which we had designed. There was some modification required to, you know, improve the quality and upgrade the production. So that modification was over in end of Q3. So that’s why you are seeing a substantial increase in the rolled product production from Q4 onwards. And now you can see this production happening on a continuous basis, quarter on quarter because the mills is now, you know quite stable and there is activity of the product in the market.
So we have a healthy order book of almost six months on RS path. So now you can see these volumes on quarter on quarter basis.
vinit Thakur
So sir, what would be our capacity and what would be the utilization for this year? We are expecting for FY27.
Dinesh Gandhi
See. So total load product including Godabri. We. We should do about. Somewhere about 3.75 lakh tons for the entire year.
vinit Thakur
Okay. Thank you sir. I’ll jump by the question again for asking another question.
Dinesh Gandhi
Thank you.
Operator
Thank you. Come from the line of Stuti Agarwal from Chhattisgarh Investment limited. Please go ahead.
Unidentified Participant
Thank you for the opportunity. So regarding the exceptional line item in PNL or you had mentioned in your opening remarks that the difference between a positive of like from a positive 36.69 crores at standard own level to a negative 18.29 crores at console level is due to the non inclusion of of profit on sale of Arden still. So could you please give us a bifurcation between this profit and I guess the write off of pre operative cost of thermal power plant.
Sanjay Bhutra
Yes. See in other income There is a 91 crore item of dividend from Identity Still Limited Associate Company and there is around 73 crores profit on sale of stake of Identity steel which is appearing in the exceptional item standalone results.
Unidentified Participant
Okay. And this on
Sanjay Bhutra
Cost to cost basis. But when the consolidation comes so on equity method the profit recognized in standalone on cost basis is eliminated. And only 17 crore profit is there on the entire transaction of this Identity steel stake sale. 17 crore gain as exceptional items and around 37 crore or 36 crore write off of the as well Godavari Energy pre operative cast. So net to net there is a 17 crore loss in consolidated balance sheet as exceptional loss.
Unidentified Participant
Okay. So that’s all from my side. Thank you.
Operator
Thank you. Our next question comes from the line of Yogansh Jaiswani from Mittal analyst. Please go ahead. Yogans. You may please proceed right with the question. If you’re on mute please unmute yourself and proceed with the question. As there’s no response we’ll move forward to the next participant. Our next question comes from the line of Sinclair d’ Souza from Lalka securities. Please go ahead.
Manav
Hello. Can you hear me?
Dinesh Gandhi
Yes
Operator
Please. Yes.
Manav
Thank you for giving me the opportunity. I wanted to ask what is the revenue guidance for FY27 and the EBITDA margin guidance for FY27.
Dinesh Gandhi
See revenues revenue. We should. We should top line should be 6,000 plus with a new pellet plant operating at close to 88, 90 capacity. So there will be the additional volume and additional revenue coming from there as the volumes remains almost constant. And FY27 guidance. See at current market levels we should, we should be able to do somewhere about 24, 25% of United Beta levels. At current market levels it’s a very, you know, difficult to comment, you know, such a early stage of the financial year.
But looking the Current Market Scenario 25% we should be able to maintain the media levels. And top line should cross 6,000 crores with the additional volume of pellet coming in.
Manav
Got it. Thank you sir.
Dinesh Gandhi
Thank you.
Operator
Thank you. Our next question come from the line of Sahil Sangvi from Monarch Capital. Please go ahead.
Sahil Singhvi
Yeah. Hi. Congratulations again for very good results. My first question is on the pellet. If we had to see the quarter, on quarter realizations it’s not moved at all versus the market pricing. So what’s happening over here? If you can help us understand the reasons and how can parent prices look for FY27.
Dinesh Gandhi
See. Thanks. I. So on the Q4VC the pellet pricing hasn’t moved much as compared to market. Because you know there was a phase where we were not able to do mining at the full capacity because of the EC section as EC got delayed, you know, right from October, November. Then finally it came in end of Feb. So we were not able to produce the same volumes of high grade pellets where we draw a premium for more than 1000 rupees. We had to make the 63 commercial pellet. So that is why you are not able to see a difference in the pellet pricing compared to the market scenario.
That was a major reason or the reason beyond that. And on the FY27 guidance, as the mining production goes up from Q3 onwards, once monsoons are over, the product mix of high grade will start going up drastically. And. And that will definitely show a difference between the pellet pricing for Godavari and the others in the market. But that will happen from Q3 onwards as the mining production starts going up post monsoons.
Sahil Singhvi
Got it. Got it. Perfect. Thank you. That’s also my thank you.
Dinesh Gandhi
Thank. Thank you.
Operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star and 1. Our next question comes from the line of Yogani from Metal Analytics. Please go ahead.
Unidentified Participant
Hi. Am I audible?
Operator
Yes, you are. Please proceed.
Unidentified Participant
Thank you for the opportunity. Congratulations to you and the entire team on a good set of numbers. So just wanted to understand only new mining and the project plant scale up that you are explaining before. So earlier we used to mine 2728 lakh tons of ore and simultaneously convert that into pellet. While this time because of the benefits benefication plant, you’re saying that the mining would BE of higher 4, 4 and a half million and pellet ready ore would be 3 and a half million. So why is there a change in that?
If you could help me understand, sir.
Dinesh Gandhi
No. So that is a slight correction. So earlier we should mine about 2.4 million tons. If you see last year’s mining production it was about 2.35 2.4 million tons. This year we have done about 2.7, 2.8 because we were able to get the EC in Feb and there was additional production in March. So that was. There was additional increment till last year. Buratipu was not in operation. We started burst last year only where we did a mining of hardly 0.2 lakh tons. So if you compare basis that against a 2.4 million, we will be doing about a 3.4 million tonnes.
So straight away a jump of almost a million tonnes for this financial year. So to compare basis that 3.4 is usable and actual mining will be 4 million plus. And from next year onwards at full capacity the actual mining will be 6 million ton and usable will be about 4.5 million tonnes after benefication. Okay. Because earlier there was no beneficial plant in the mines. The 0.6 million plant started last year. So there was a little bit of beneficiation and the further will go up once we commission the new plant of 6 million tons.
Unidentified Participant
If you could broadly explain how does the economics and margin change once we do beneficiation? Because then ideally we are extracting more or and converting to lesser pennant if that. If that number works out that way. So then how does the margin or the economics work in. In case of beneficiation plan?
Dinesh Gandhi
So. So I’ll tell you. So that. So. So just to. Just to give you a very brief explanation, we beneficiate. So average grade in the mines is about 5,960 FC. We. We want to beneficiate that, upgrade that to a 67 concentrate basis which we will be making a high grade 65 pellets. So once you do that, about 15% of iron ore is wasted in the form of tailings. So if you do 100 ton of mining about 85 tons of concentrate, you will be getting 2ft to the pellet plant. This is one scenario and the second scenario is we will also be mining a BMQ which is a low grade magnetite where a 35, 38 FP will be upgraded to again 65 67.
In that the recovery will be close to only 40%. So when you put together a whole the recovery basis of 6 million will be close to about 17 80%. So about 20 25% of the entire iron ore will be wasted as a tailing. So on a 6 million if you subtract 25%, you get about 4.5 million tons of iron ore. Usable iron ore of a 65 plus concentrate. That is how it works.
Unidentified Participant
Got it?
Dinesh Gandhi
If I don’t identificate if I may use a 68 iron ore, I will get more volume. But my F in the palette will be below 59 which is not sellable in the market. So I will have to benefit to upgrade the SE content. That is the whole idea.
Unidentified Participant
Got it. And so I think couple of calls ago you had mentioned that by verificating at the mine you will be saving some logistics cost as well. Because until now you are spending more on the plant. So what was the number? If you could share or if there is any change in that number.
Dinesh Gandhi
See so currently the Fed is about thousand rupees. So if you’re able to, you know, remove a 10 15% of wastage inside the mines. So straight away 150 rupees are saving you’ll be doing on the freight side. Earlier we were doing beneficiation inside the pellet plant in the Ripur complex. So we were losing on the FRET. Now from Q3 onward we’ll be beneficiating inside the mines. So straight away there’ll be a saving of about 150 rupees per ton. On the final considerate being sent to the Buddha plan for usage.
vinit Thakur
Okay, that’s very helpful. Thank you. I’ll get back in.
Dinesh Gandhi
Thank you.
Operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question, we press star and 1. Our next question come from the line of Vidan Sada from Nirval Bank Securities Private limited. Please go ahead.
Sanjay Bhutra
Hello.
Unidentified Participant
Hello. Yes,
Operator
You may proceed.
Unidentified Participant
So, just wanted to know any of our plans to increase
Manav
Our mining capacity or soaring into new mining like new any layer or anything. Or increasing our iron ore mining capacity.
Dinesh Gandhi
See, at current production levels we already planned the expansion for Edunguri and that will take care of the next, you know, till disasters are on board front we have already announced earlier we have plans to take the mining capacity from 0.7 million to 4 million tons. Along with benefication inside the mines. Because again, Bulletproof is a low grade ore. About 35 AP content. 40 content. That will take about another three years from now on. We’ve already started working on it. So Bulletipur should be online by I think FY30 including verification.
Once we’re able to do that. So the output, usable output will be close to one and a half million tons. So these are the current mines which we plan for in future. If there is any new mines coming up in auction which we feel is attractive, we will or we’re always going to explore that. But at the moment we don’t see any good minds coming from in the area. If there is an opportunity going forward, we will definitely explore it.
Sanjay Bhutra
Okay, thank you.
Dinesh Gandhi
Yes,
Operator
Thank you. Next question comes from the line of Vandanarati from Coleman Capital Investment Advisor llp. Please go ahead.
Unidentified Participant
Yeah. Sir, very good afternoon. So I have one bookkeeping question. So I wanted to understand. How much is the inventory gain in Q4?
Dinesh Gandhi
Can you come again please? You’re not audible.
Unidentified Participant
How much is the Inventory gain in Q4?
Dinesh Gandhi
Inventory gain in Q4?
Unidentified Participant
Yeah.
Dinesh Gandhi
No, I think you have the figure for that inventory gain.
Sanjay Bhutra
We have roughly gained 20 crores on account of unsold pallet stock carrying from last quarter and sold during the quarter. So that’s higher realization. 20 crores rupees roughly on 90,000 tons.
Dinesh Gandhi
Yes.
Unidentified Participant
Okay. So my next question is. Sorry, I was just going through the results. I was seeing 150crores of loan giving to the Education, a subsidiary company for some residential school project. Do you want to finance something on that?
Sanjay Bhutra
We have taken an enabling resolution. For the time being the school will separately go for the loan from the other sources. In the meanwhile for the timing arrangement we have taken this enabling resolution.
Unidentified Participant
Okay. Thank you so much.
Operator
Thank you. Ladies and gentlemen, anyone who wishes to ask a question by Press Star N1. Our next question comes from the line of Divya Garawal from FICOM family office. Please go ahead.
Unidentified Participant
Yeah. Hi sir. Thanks for taking my question. Sir, only one question regarding the 2031 guidance. So basically in the guidance you have mentioned that you’ll be achieving 3,000 crore patients. So that’s like a 10% PET margin. So just wanted a clarification. Is it because the margins are coming down because of your best project
Dinesh Gandhi
Best and the CRM. So both base and CRM will be on the lower margin side. So the top volume will go up heavily. But the margins. So basically they’re about a 7, 8% margin business. The CRM is about a 7, 10% margin business. So that’s the reason the overall margins are coming down. But the top line is going heavy exponentially. There’s a top line growth.
Unidentified Participant
Right, got it. And secondly sir, just wanted to know your outlook on the current pellet situation domestically, how is it and in terms of the capacity as well, are you seeing any overcapacity coming in? Just wanted to get a sense of that, thanks.
Dinesh Gandhi
See at the moment we don’t see an overcapacity coming in but, but, but there will be, there will be a challenge to merchant paired players who are solely dependent on market for purchase of iron ore. We can definitely see a squeeze in margins for them. But for people like Lloyd Godavari or the other companies which have the capital resources I don’t see a pressure margin there. And also on the demand supply. So at the moment there’s no over demand supply. Plus export is always about. You see today export market is very much viable if you want to really explore.
So I don’t see at the moment going forward all depends, you know how the fee market goes.
Unidentified Participant
Right, I got it. Thanks. Thanks a lot.
Operator
Thank you. Our next question comes from the line of Varun Mehta from Wealthing Investment. Please go ahead.
Manav
Good afternoon everyone.
Dinesh Gandhi
Yes please.
Manav
So I just want to know about the sales plant cost which we are looking at 7,000 crores. I think three, four years back we spoke about 1,000,010 to be a 4,000 crore course. So the cost has gone out on solution or we’re doing something else on this.
Dinesh Gandhi
No, so, so yeah so we be, you know I had personally, you know tender apology to all the stakeholders because for us being in the first time in a blast primary route we did a wrong calculation. There was a wrong estimation done by us on the CAPEX side. So again once again since apologies so if you can please you know omit that entire story from your mind. We were wrong on the cost estimation. The current capex given our 7000 crores is very much on the practical side. We have done a thorough study with the equipment suppliers and basis that we have shared the details with the stakeholders.
Unidentified Participant
Okay, and what is the return on capital?
Dinesh Gandhi
There are a couple of changes which there’s an increase in capex. One is earlier we had said we had no intention of putting up a coke oven plant because there was ample of import of coke available from Indonesia and other countries. But last year to support the local domestic coke industry government of India had imposed restrictions on import of cokes because of which now we are investing heavily in the coke oven plant. One and secondly is the product we’re going to enter into is a value added product.
It’s not a PMT or a regular buyeror product. So the structure mill which we are proposing it’s evaluated scheme and it has, it has a substantial cost compared to a similar volume of a TMP or a rebar mill. So on these two accounts the capex is slightly higher compared to a standard 1 million steel plant. But apart from that numbers are pretty much on the similar levels.
Manav
So how much return we are looking at for this investment of Kitna.
Dinesh Gandhi
We expect a beta of more than 2020 once the one the plant is operating at full capacity because we are in the valuable steel and currently there is not much competition from the Indian market. So we receive, we should be able to do a EBITDA more than 20% going forward when the plant is ending at full capacity. But again you know, it’s a commodity market, it’s steel. Anybody’s open to, you know, invest in such kind of capex. Just estimation this is which we have you know thought of going ahead
Manav
And can you just share what is our cost of production for pellets? Basically at 5,000, 5,500. What is the basic cost?
Dinesh Gandhi
See if you consider annual at 3000 rupees with verification everything our current cost of pellet should be is at about 55 to 1500 rupees after verification.
Manav
Okay, and this last question is the guidance what we have provided for 2031 on the sales part. This includes the field revenue also.
Dinesh Gandhi
Yeah, it includes the seal revenue, includes the first phase of battery storage and. And the CRM revenue. All three. Okay.
Manav
Steel plant is not working.
Dinesh Gandhi
No, no. So 1 million steel plant, the battery storage and the CRM complex. All three.
Manav
Thank you so much.
Dinesh Gandhi
Yeah, thank you,
Operator
Thank you. Our next question come from the line of Aryan Bhatia from Invid Research. Invade Research. Please go ahead.
vinit Thakur
Thank you. Thank you. So my question is what is generally the conversion ratio from our mining to fillet? So from the usable 4.5 million tons what will the conversion and what will be maybe buying from the market for our 4.7 million.
Dinesh Gandhi
Okay, so you’re not audible but still I, I could got your question. So as said earlier, we’ll be doing about 0.8 to 1 million tons of procurement of iron ore this year to run at full capacity and that should drastically come down from Q3 onwards once monsoons are over. And the conversion from mining to pellet as I Mentioned it’s after beneficiation of all kinds of ore. It is about. So if you mine hundred tons of iron ore, you will get about 75 tons of usable concentrate of high grade to fit to the pellet plant.
So if you do a 4 million mining, 4 million mining, you get about 3, 3.2 million tons of usable iron ore for the bell.
vinit Thakur
Got it. And on the second on the road capacity. So can you provide the breakdown of our road product capacity? How much is the wire rod, how much is the Ms. Loans and how much is the galvanized product?
Dinesh Gandhi
Okay, so at the source for this financial year, so the Byron will be close to about 2.2 lakh tonnes which will be further drawn to. So biro will be 2.2 further roll to 1.1 DAC tons of HB wire and on the structure side that will be about 1.2, 1.3. So put together we’re doing about 3.7, 3.7 percentage of total roll products this year.
vinit Thakur
Okay, thank you. Thank you.
Dinesh Gandhi
Thank you,
Operator
Thank you. Our next question come from the line of Ajit Sethi from ICO Quantum Solution. Please go ahead.
Unidentified Participant
Thank you for the opportunity. So my question is on the CRM complex. So in the previous con call we have guided for 50 utilization in CRM complex in FY28. So are we on track to achieve that guidance?
Dinesh Gandhi
Yes, at the moment with the current status being, you know, shared with all the stakeholders little earlier by the Butraji. So at the moment we are on track. We are hopeful to commission the first line by end of Q4 early, you know, Q1 exponential year. And that’s why we have taken a very conservative guidance of 50% which is at about three, three and a half tons of CRM complex for FY28.
Unidentified Participant
And so how can we expect the further ramp up of capacity going forward
Dinesh Gandhi
From FY29? We should be at about 90% capacity for sure.
Unidentified Participant
Okay, thank you.
Dinesh Gandhi
Yeah, yeah, yeah, yeah.
Operator
Thank you. Our next question comes from the line of Rohan Mehta from Startisi. Please go ahead.
Unidentified Participant
Hi sir. Thank you so much. Good afternoon. Just a couple of questions. So currently the Indian pellet prices seem to be around 10,000 bucks and the global prices around 11,500 bucks. What I wanted to understand was what is the delta because of the higher freight cost that we are looking to export.
Dinesh Gandhi
Can you come again please? We’re not audible initially.
Unidentified Participant
Sorry. So Indian pellet prices seem to be around 10,000 rupees and port market is around 11,500. If I’m not mistaken. But because of the higher freight costs, what is it that we are looking as delta to export?
Dinesh Gandhi
See, so currently if you talk about from my plan to say China for just one number including the freight cost, it is somewhere at about 3000 rupees. So if I’m selling it 10,000 rupees expand. So my export price to be at the same similar level has to be somewhere about 13,000 level which is not the case. But today the Indian prices are about 9,500 rupees. And with the dollar inflation today, if you want to export, we can easily achieve more than 9,000 rupees plant. So the delta is now hardly less than $10 between domestic pricing and export pricing.
Unidentified Participant
So probably sometime in the next quarter or this quarter end we should start exporting. That is what if I’m looking at correctly,
Dinesh Gandhi
See, it all depends. If the Indian market continues to remain on the lull side which is at the moment because of XYZ reasons and the export market remains at these levels. So we might see some volumes going into export.
Unidentified Participant
And those reasons currently in the Indian market is the Lloyd extra capacity or just monsoon coming up.
Dinesh Gandhi
See, to be honest, Lloyd hasn’t hit the Chattigarh market at the moment. Right now 90% pellets are going into the chatty market. So Lloyd hasn’t touched the Chitika market at the moment. But there is a overall, you know, there is a demand, there is a lull in the steel demand. There is no selling in the finish side. The prices almost by 10% in last few weeks. So the overall sentiment is weak basis that we have started exploring the export market.
Unidentified Participant
And the second question is on the best front, just like everything else, the 5, 6 gigawatt hour for the next year is a conservative guidance or that is what we are looking to achieve?
Dinesh Gandhi
No, it’s a very conservative guidance.
Unidentified Participant
Perfect. And in the 2031 explanation that we are assuming we have not considered the phase two of the best thing. Is there a reason for that?
Dinesh Gandhi
No, there’s no reason. You know, we thought whatever we have announced, whatever the projects have started, you know, taking shape, we want to, you know, you know, give our estimation which is that phase two, when it will come, hardly come, we don’t know because battery story itself, it’s huge. It’s a big tech industry. Hello.
Unidentified Participant
Sure, sir, go ahead.
Dinesh Gandhi
So we haven’t considered phase two. The only reason is because it’s something which is very new for us. We want to establish the phase one. We want to run the plant at full Capacity and basis that we want to decide whether how we want to, you know, go ahead in the phase two, whether we want to get into expanding capacity in phase two or whether we want to go into backward indication and enter into a cell manufacturing with the secondary tie up. It’s a very nascent stage for us to decide for the phase two.
So that’s why you only give an estimation. Basically the conversation up. No, thank
Unidentified Participant
You so much. That’s it from my.
Dinesh Gandhi
Thank you. Thank you.
Operator
Thank you. Our next question come from the line of Mano Gogia from yes, securities limited. Please go ahead.
Manav
Yeah, thanks so much for the opportunity again. So we just wanted to know one clarification. The new steel plant of 1 billion tons that we have, this is a blast process or this is the DRI route?
Dinesh Gandhi
No, this is the brass furnace route. See, we have no intention of getting into coal based GRI because it becomes very challenging to, you know, be cost effective in producing steel and compete with the big guys. So it’s a brass furnace route which is a conventional route in India at the moment. Now we did ponder over the gas based GRI route, but looking at the current, you know, supply discussion and dependency on import of natural gas, you know, we thought it’s better to go with the conventional blast furnace route at least for the phase one.
Manav
So this will include the 1 million ton blast furnace, 0.7 million ton of coca one as well, right?
Dinesh Gandhi
No. So the blast furnace capacity should be, the hot metal should be about 1.1, 1.2 million tons. There’s a 0.5 million coco one non economy cocoa one. There’ll be a 1 million sinter plant. So our idea is to 50% pellet and a 50% sinter because we want to also hedge a pellet bets. We don’t want to keep be, you know, keep selling pellets in the market. So 50 pellet from a new plant will be going to the blast furnace and then the main seal complex. Right. From converter to the finished side.
Manav
Got it, Got it. And secondly, what sort of land parcel? I mean we have roughly 452 acres, right?
Dinesh Gandhi
Yeah. So we have, so we have 450 acres and that should, that is more than sufficient for the entire complex.
Manav
Yes. I mean my question was here, what would be the scalability in the future if we had to go for a brownfield expansion? So would we have enough infrastructure from. If we plan to move on going ahead post 2030? So
Dinesh Gandhi
See, we have left a certain space for a Brownville expansion. Plus we also Identified nearby land which is adjoining to the current land. So if we think we want to, you know, go for a brown period expansion we can always use that same parcel and by little bit of adjoining parcel to expand. But to be honest at the moment we are not thinking of phase two, we’re just considering a phase one at the moment right now.
Manav
Got it. And we continue to maintain that our focus will be long products because I think we also have a CRM complex. We had a full fledged, you know, flat product. See
Dinesh Gandhi
The idea, see the problem is for a CRM complex, right, for, for a HR mill the minimum capacity which is, you know, technically and commercially viable is a 2 million 10 mil because the bit has to be you know, 1550 plus. So for a, to feed a 2 million mill we didn’t have the hot metal, the entire capex would have crossed maybe 12,13,000 crore. So we didn’t want to go that high. Secondly, you know with the steel capacity announced by the big players we already feel today India’s market is oversupplied by HR Coil impulse is always open.
Right? So we thought instead of doing a CRM, you know, HR complex let’s just focus onto CRM which is a valid scheme and enter into a long product where we you know, enter into the structures and you know, other segments. So that is the whole idea behind not going to HR complex here.
Manav
Understandable, thank you. So second question is, could you please highlight how the next couple of years would look in terms of capex and what sort of debt numbers do we see coming up? Because the 7,000 crores I think one is to one would be the debt equity, right? Yeah, yeah. For debt from the other side,
Dinesh Gandhi
See the, the CRM, the battery storage, you know we have already invested more than almost 40, 50% in both the projects. So this year the capex on the steel side hardly will be about 10% which will mainly go into account of ordering of equipments and an advance. The major capex which is going to incur in steel will happen from FY28. So FY28, FY29 will be the major money inflow into the steel plant. Apart from that we are self funded, you know, to afford anything from internal approval. So whatever debt you have to take on will be, will be happening from FY28 only on account of steel Capex.
Manav
Got it. So in a nutshell if I have to assume for FY27 we can take a 1800-2000 crore capex number, right. Would that be the correct way to think of it,
Dinesh Gandhi
Yes, include including the balance of CRM, balance of your battery storage and little bit of solar. You can consider the capex of close to about 15 to 20, 15 to 200 crores for FY27
Manav
And 28 onwards. It can probably go towards 2500 and 3000. Yeah, about 3000
Dinesh Gandhi
Crores. About 3000 crores. FY28 and 2000 crores. FY29. Very correct.
Manav
Oh okay. One request I had, I think in our earlier presentations we had a, you know, split of project wise capex and the timelines and whatever capex we had incurred. If you could just bring back that from the next presentation would be really. Sure,
Dinesh Gandhi
Sure. Well, very well noted. We will take care of that.
Manav
Thank you so much sir. Thank you. Thank
Dinesh Gandhi
You so much. Thank you.
Operator
Thank you. Next question comes from the line of investments.
Unidentified Participant
Hi sir. Sir, I think in the last we had guided that pellet capacity would be running at over 90% utilization and we will be targeting around 4.1 4.2 million tons. So I think what you guided that we’d be looking at around 3 to 3.2 million tonnes. So any reason why we’ve looking at a 3 to 3.2 million tons pellet quantity for this year?
Dinesh Gandhi
No, no, no. There’s a conclusion. So pellet guidance for this year is 4 million tonnes. The iron ore volume, net usable iron ore for the pellet is at 3.4 million tons. Okay,
Unidentified Participant
So that will be the captive one you were stating earlier. Okay,
Dinesh Gandhi
Exactly, exactly, exactly. So the pellet guidance there 4 million tons this year and INO guidance net usable is at 3.4 million tons.
Unidentified Participant
Got it. And it would be the same mixer 3 and 1 sales and captive.
Dinesh Gandhi
So yeah, so 50 captive remains the same. Captive capacity is about 50 0.91 million ton. There will be no increment in capital capacity. So the pellet merchants will be at about 3 million tons.
Unidentified Participant
Got it. And as you had earlier rightly pointed out the increase in diesel cost that we have seen particularly. So can you just give an idea on the incremental cost it would accrue us in terms of mining cost?
Dinesh Gandhi
See diesel. The good thing is see of course we have also invested heavily into EVs in the mining as well, you know, loaded excavators. So currently that a major concern is on, on the transportation side because our entire I know comes by road. So the diesel pricing on the rising side and looks to be, you know, at the similar levels for you know, quite some time. We have started working on the EV and we want to replace that with EV truck asap. So currently the transportation is about 900 rupees before see it can go up to 1150, 200 rupees if the diesel prices continue to rise in the near future.
Unidentified Participant
1150 to 1200. Okay.
Dinesh Gandhi
Yes, yes, yes. For short term, definitely yes,
Unidentified Participant
Short term. Got it, got it. And sir, as you rightly pointed out that we’re looking to transition to an EV fleet. Do you have. Is there an estimate on what would be the fleet size that we will targeting and the amount that we will be committing to the same.
Dinesh Gandhi
See the amount of. I know we need to move at the full capacity. We need to. We need to deploy more than about 300 trucks or about 50. 50 trucks capacity. Yeah, 1050 trucks. So at a full site capex should be more than about 350 crores.
Manav
Okay, 350 crores. Got it sir.
Dinesh Gandhi
Yes, yes, yes. With the charging infra and other things it should. It should be about 350 crores at full scale.
Operator
Thank you. Participant has left the queue. Ladies and gentlemen, that was the last question for today. I would like to hand the conference over to the management for the closing remarks. Thank you. And over to you today.
Sanjay Bhutra
We would like to express our sincere appreciation for joining us on this conference call and we are confident that we have adequately addressed all your queries. Should you have any further questions or need additional information, please feel free to reach out our IE team at GoIndia Advisors. Once again we sincerely thank you all for your active participation and unwavering support. Thank you.
Operator
Thank you so much, sir. Ladies and gentlemen, on behalf of Godavari power and Spark Ltd. Also Monarch Network Capital Ltd. That concludes this conference. Thank you for joining us and you may now disclose. Thank
Dinesh Gandhi
You.