Goodluck India Ltd (NSE: GOODLUCK) Q1 2026 Earnings Call dated Jul. 23, 2025
Corporate Participants:
Unidentified Speaker
Mahesh Chandra Garg — Chairman
Ram Agarwal — Chief Executive Officer
Sanjay Bansal — Chief Financial Officer
Analysts:
Ritesh Gandhi — Analyst
Vedant Sarda — Analyst
Neel Mehta — Analyst
Unidentified Participant
Shyam Shah — Analyst
Paren Gala — Analyst
Soham — Analyst
Rakesh Roy — Analyst
Tushar Gupta — Analyst
Abhishek Chhajer — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Goodluck India Limited Q1 FY ’26 Post-Earnings Conference Call hosted by Captify Consulting Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assessions during the conference call, please sign in an update by pressing Star zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Vina Pundit. Thank you and over to you, sir.
Unidentified Speaker
Thank you. Ladies and gentlemen, I welcome you on to the Q1 FY ’26 post-earnings call of Goodluck India Limited. Today from the management team, we have with us Mr Mahesh Chandragar, Chairman; Mr Ram Agarwal, CEO; and Mr Sanjay Bansal, CFO on the call. Without wasting any further time, I will now request the management to give their opening remarks. Over to you, sir.
Mahesh Chandra Garg — Chairman
Good morning, everybody. Thank you for joining us in this Q1 FY ’26 earnings conference call. We are pleased to report a strong start to the fiscal year with income from operations rising by 7.7% year-on-year, reflecting our continued focus on operational excellence and market responsiveness. This robust growth has been primarily driven by sharp increase in domestic sales, while overall volume grew by 12%, reinforcing position as a leading manufacturer of precision engineered steel products and large-diameter products.
I’m also glad to share a significant strategic development under our new vertical, the design, we are in-process of securing a license for defense production, which we expect will create our long-term value for our stakeholders. France, as we all know, the global landscape remains highly complex and volatile, ongoing geopolitical tensions from Russia-Ukraine war, the conflict in Middle-East including Israel, and Iran and regional concerns such as India pipe have created a very challenging and uncertain trade environment, compounding these issues in a prevailing tariff war scenario, especially holding shift in the trade policy under the current Trump administration in the US.
Despite these challenges, has conside — has continued to demonstrate resilience and the resiliency reflected by our growth in-spite of the muted demand in the domestic market, our strong domestic sales performance has effectively offset challenges in-markets, which remains subdued due to unpredictable tariff dynamics.
Looking ahead, we remain optimistic. We expect recovery in volume in time to come as the tariff stabilizes, particularly as progress continue to our Indo-US free-trade agreement, we are going to sign free-trade agreement with UK and we move closer to stabilization of tariff regime. In closing, I would like to thank you all for their continued trust and support. We remain committed to delivering sustainable growth, innovation value and. Thank you very much.
Ram Agarwal — Chief Executive Officer
Hi, everybody. This is Ram, CEO of Goodluck India. Welcome everybody. As has already told, our results are with you and I hope you must-have appreciated that despite the headwinds geopolitically, your company has feared well on almost all fronts, whether it is tracked by 17% volume by 11%, EBITDA by 23%, EBITDA is marching towards double-digits as communicated earlier. The reason is your company has a diversified product basket from pipes to to defense products.
Our USP is continuous reshuffling of products and markets to take-over the market changing conditions. As we have been working on value-added versus non-value-added sector, our focus has been on increasing value-added sector in our total sales. This quarter value-added has increased by 24% Y-o-Y Q1, whereas value-added sector is almost — growth is almost milled. In new sector, green energy fueled by solar installation is on the horizon. Solar structure led by transmission tubes, we have made inwards and sector is poised to give almost 100% growth this year.
We have been transforming our non-value added sector by installing the growth of pipe and CR and fueling the growth of solar sector and augmenting its capacity for quite some time. Even further addition of solar capacity is on our drawing board in the coming time. Tube in new sector assured by us in September is making new inwards in-construction sector globally as well as domestically. Despite components and total mayhem in international market, we are making inroads in global market and hope in coming quarters, we will be increasing our percentage of utilization of this plant, a difficult task, a difficult hope, but I am pleased team is taking strides in the right direction. Infrastructure led by railways and the thermal power expansion plans of government, is making efforts in the right direction at right time, resulting in-market expansion of this infra sector.
This financial year, we are targeting a 20% increase in sales volume in this infra sector. Auto sector, yes, it is one of the major sector for us. It is making progress despite many skits. We hope a continuous growth in this sector and our CDW unit is increasing its presence in the market. Market expansion is on envil this year in this particular sector. The new sector — forging sector has a solid growth in continuing geopolitical condition, factory sector is showing core growth in this quarter, and this forging sector again, the defense sector is making continuous news due to operational and ongoing wars in Russia, Ukraine, Israel, and many other African countries.
Government has made an ambition — ambitious target of increasing defense export to the tune of INR50,000 crores in next two, three years. Your company is working relentlessly to increase its market reach in this sector. A subsidiary Defense and Aerospace has established plant of making 1.5 lakh shelf, awaiting government license. Many more products are on radar of our strategic team, which may take shape in Coming future. Your company has been making continuous efforts to fulfill our responsibility to society and environment. Zero-emission is our ultimate aim for all of our plants. Tree planting is an effort to give back something to the Mother Earth. Health and education are our two goals, which we are trying to achieve through CSR activities. So we the good luck comprising management, staff workers and our shareholders have resolved to progress continuously to add value to our company to our shareholders. Thank you.
Sanjay Bansal — Chief Financial Officer
Good morning, everyone. At the outset, I Sanjay Vinsal, CFO, on behalf of Goodluck. Welcoming all for joining for the conference on performance of the company in Q1 of financial year 2026. Regarding Q1 performance, standalone, the sales was increased to INR983.29 crores as against INR913.08 crores during Q1 of previous year, registering a growth of 7.70%. However, EBITDA for the quarter stood at stood and grow at the rate of 9.71% of sales at INR95.78 crores as against INR77.60 crores during Q1 of previous year.
The profit before-tax, including other comprehensive income was at INR53.31 crores in Q1 of current fiscal as compared to INR45.81 crores in Q1 of previous year. However, PAT in Q1 of current fiscal was at INR40.14 crores against INR34.47 crores in Q1 of previous fiscal, registering a growth of 16.56% — 15.50% year-over-year basis. Earnings per share has been at INR12.60 per share in current Q1 — Q1 of current financial year as against INR10.80 per share during Q1 of previous fiscal.
On financial front, our interest cost has marginally gone up due to increase in level of activity during Q1 of current year as compared to previous year. However, there was a marginal saving in selling and administrative expenses as compared to Q4 of previous financial year quarter-on-quarter basis. Thank you. Thank you very much.
Ram Agarwal — Chief Executive Officer
Now we are open for the Q&A session.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press RN1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press. Participants are requested to use answers while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles the first question is from the line of Ritesh Gandhi from Discover Capital. Please go-ahead.
Ritesh Gandhi
Hi, sir. Just had a — I just had a couple of questions. Just wanted to understand with this implementation of the BIS, I think there would be some amount of benefits in terms of the domestic demand and some amount of potential with disruption if you’re sourcing our steel internationally. So just wanted to understand what the what the implications are of the DIS, which is recently.
Ram Agarwal
This is not clear.
Ritesh Gandhi
I was asking about the BIS, which has been implemented recently, any implications on potential upside because of incremental — demand and potential implications if we are actually using international steel as any negative implications? I just want to understand that.
Mahesh Chandra Garg
Those who are — those who are importing steel, they are only affected by BIS. Nobody can import non-BIS steel from anywhere. But domestically, we are already having — we have consumer material. There is no implication for us.
Ritesh Gandhi
So — and are there any benefits because effectively we aren’t competing with imports anymore in some of the segments, are there any benefits which we are — which we are seeing?
Mahesh Chandra Garg
Competition will be less with import inventory.
Ritesh Gandhi
Okay. So are there a — but is the implication of this reasonable or it’s a small implication on the only imported material
Mahesh Chandra Garg
On over is very shape compared to the domestic material. So if there are — these are to prevent competition in domestic material.
Ritesh Gandhi
So the other question was if you could highlight a little bit of an update on where we are on our defense business.
Ram Agarwal
In our defense business, we have already told that we have established a new subsidiary, Defense and Aerospace where we have put up a plan for manufacturing N107, 1,50,000 shares per annum. The — we are awaiting the government clearances to start the production. From our side, nothing is pending. But yes, there is some time which government is taking as per the regulations whenever it comes we will start and any idea how long it typically takes and how long and when we are expecting it right now we cannot we cannot say anything on it because it is in the government purview, but we hope it should come early.
Ritesh Gandhi
Okay, sir, I’ll rejoin the queue. Thank you.
Operator
Thank you. The next question is from the line of Sarda from Nirmal Securities Private Limited. Please go-ahead.
Vedant Sarda
Thank you for the opportunity. Am I audible?,
Ram Agarwal
Yeah.
Vedant Sarda
Sir, I want to ask that we are operating at a 90% capacity level currently. So any kind of capex plans we have,
Sanjay Bansal
So actually, it has been a continuous process because in our kind of industry, there is debottlenecking that is a ton we use because not only by installing the new machines, we can increase the capacity. We can increase the capacity by debottlenecking. And in this regular process, we are upgrading our all plants to take maximum production by debottlenecking. So by adding some instruments, by adding some systems, by adding some labor, so that is a regular process we are doing
Vedant Sarda
From the debottlenecking, how much capacity we can add at the current levels.
Ram Agarwal
So right now, if you talk of infrastructure, there is a debottlenecking, it can take it up to the current capacity which is 1 lakh ton, it can go to 150,000 tons because their debottlenecking is the space. You have to provide that space. In some other products like automobile, we have to add some machinery. So as per the market requirement, as per the sales projection, we take it continuously.
Vedant Sarda
Okay. Thank you, sir. And we have seen an improvement in EBITDA margin. So can we see that this is a sustainable level or what?
Sanjay Bansal
And definitely, we always think that it is a sustainable level. We always hope and we are working towards it for last five, six quarters to take it to this level, but definitely market headwinds may be there. So next time we cannot project that it will be the same. It may increase also.
Vedant Sarda
And last question, sir, like we have seen a Y-o-Y increase in the volumes and there is a decline in Q-on-Q basis. So is it a seasonal factor or what — how we can understand that?
Ram Agarwal
It has always been year is a factor — seasonal factor is always there. I’m usually weak. Always found this. I find this.
Vedant Sarda
Okay, sir. Thank you so much.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one per participant. The next question is from the line of Neil Mehta from ICICI Securities. Please go-ahead.
Neel Mehta
Hi, sir, am I audible? Good. Congratulations on numbers and success that you have to you all-around the world. I’ll keep — my voice is muffled.
Ram Agarwal
And your voice is audible, but some voice is coming.
Neel Mehta
Yeah. So with the 1.5 lakh shares that we are talking about, what MM shelves are these and who are we tying up if we are tying up with anybody in Europe to deliver or give these to
Ram Agarwal
It is a 155 MM chairs and it is being used in India as well as the overseas markets so 155 mm small large medium it is a medium it is under Under the category of medium M107
Neel Mehta
And any tie-ups, something else?
Ram Agarwal
Tie-ups, they are LOIs available, but whenever the production license comes and then the actual sale will happen, then only we can say that these kind of tie-ups are achieved because many people have come, many people are giving the requirement, but unless this license is received, there will be no form requirement. As per our construction, this appetite for this kind of very use appetite today
Neel Mehta
Give my last question short. Hydraulic tubes, you mentioned about increasing the utilization. What was it this quarter?
Ram Agarwal
Yeah. In this quarter, we have achieved almost 50% utilization. And in the coming quarters, we hope as this stabilizes, then it can go up to what we expect. In this year, we will achieve a capacity utilization of almost 70% in this financial year.
Neel Mehta
Thank you so much, sir. Have a nice day.
Operator
Thank you. The next question is from the line of from Dagraph Invest. Please go-ahead.
Unidentified Participant
Yeah, good morning, sir. Am I audible?
Ram Agarwal
Yeah, yeah, yeah.
Unidentified Participant
Yeah. First of all, I would get that when our defense unit is already in you have completed the defense unit ready for the production. How long this our license is spending with the government?
Mahesh Chandra Garg
I will tell you license is government priority. They are more in to issue the license than what we are in hurry to receive the license. So we expect to get the license as soon as possible but there are some procedural delays which we are seeing so license should come any day.
Unidentified Participant
Yeah, yeah, that that’s very important so-far as our company is concerned because we have already invested and then we have completed the plan. Now just we are getting. So how now we have been planning with the government? That was my.
Mahesh Chandra Garg
Government procedures are like that. We know our application is our application for the licensing for there is no inquiry planning for the issue of the license with us. All queries have been satisfied now it is the government procedure
Unidentified Participant
Okay, okay, okay, okay. We look-forward for the same as early as possible. Number-one. Number two, sir, that see what is our outlook? So-far as our revenue for the Q1, it has grown by the 7.7% against the last year’s growth of 11.7%. While there is a dip in the revenue in the Q1 ’26.
Mahesh Chandra Garg
So look, I must tell you, second-half of this quarter, Indian demand has gone down, which you must-have noticed yourself. Indian domestic demand has gone down. Export, there was a problem, there had been no-growth in export in this quarter. Due to a lot of problem in that food market, shipping lines, far all-around and most importantly, the tariff has affected the export market. I can tell you there has been no-growth in export in the first-quarter.
Unidentified Participant
How do we see for the going-forward sir
Mahesh Chandra Garg
We are very convin it has to stabilize soon as possible. The present turmoil on tariff cannot continue always. One-way or the other, it will settle down. Tariff work will not continue for always it will stabilize then we’ll have our own time we are dealing with in segment in which customer they are depend on others they will have to buy from us.
Unidentified Participant
Correct. So what is our outlook for the current year and then going-forward in next three, four years, two, three years because it’s still continue to become a
Mahesh Chandra Garg
Volume guidance for the current year, we see by our guidance which we made in the last year.
Unidentified Participant
Okay. Okay, okay, okay. And then your plan for the your vision to become one billion-dollar company by when
Mahesh Chandra Garg
We do it.
Unidentified Participant
Okay, wonderful, sir, wonderful, excellent. Thank you very much and all our best with you.
Mahesh Chandra Garg
Thank you.
Operator
Thank you. The next question is from the line of Hitesh Randawa from Capital. Please go-ahead.
Unidentified Participant
Okay, my questions have been answered, but just to kind of reiterate, sir, I think in last quarter you said 14% to — sorry, 15% to 20% top-line growth for FY ’26, so you stand-by that, right, sir? Okay. And sir, as far as first. I’m sorry, say
Ram Agarwal
We have — we stand-by our guidance what we had given last-time, 15% to 20% growth. This year also we expect
Unidentified Participant
Right. Okay, sir. Thank you. And sir, I know you did say in your opening remarks that the kind of the finance costs have gone up actually due to the increase in work, et-cetera. So for — but it is a substantial jump, it’s a decent jump as far as the finance costs are concerned. So for FY ’26, what can — for my modeling purpose, what can I assume the finance cost and the depreciation cost to like the
Sanjay Bansal
Overall finance cost would be in the range of INR90 crores and depreciation would be in the range of INR60 crores about including all expansion.
Unidentified Participant
Okay, sir. Okay, sir. And sir, just to reiterate, just to confirm again what you said in the last quarter as well. So kind of the guidance of, 15% 20% is excluding the defense contribution, right, sir.
Ram Agarwal
Yes.
Unidentified Participant
Okay, sir. I think that’s about it. Thank you very much.
Operator
Thank you. The next question is from the line of from ABGS. Please go-ahead.
Unidentified Participant
Hi, my question has been answered. Thanks.
Operator
Thank you. The next question is from the line of Kanesh Yam from Unifi Capital. Please go-ahead.
Unidentified Participant
Thank you. Are you going to hear me? Hello?
Ram Agarwal
Yeah. Yeah.
Unidentified Participant
Great. This is the first time I’m going to the call of the company and apologies if you might have to repeat some answers for me. But I just wanted to understand your capex on the artillery shelves a bit better. How much of this capacity are you targeting towards domestics and exports? And a follow-up on that same is on the domestic side, what I’m hearing from peers is that they see that the supply could potentially exceed demand and there could be some pressure on the pricing of these artillery shelves. And is this procurement for a homogeneous category or is there some niche that you’re playing at? And could there be a pricing pressure that you might experience? What is your expectation of revenue from this capacity.
Sanjay Bansal
So the revenue which we are expecting, it is just on the basis what the future will tell. But we hope it should be between two — when full capacity will be utilized, it should be almost INR270 crores to INR275 crores. However, what will go in international, what will go to domestic that cannot be told at this stage. Once the plant gets on, then we will — we can claim by on status.
Unidentified Participant
Understood. And do you have a sense as to what is the volume of procurement that is occurring domestically just in terms of the market can address and how that’s expected to grow?
Sanjay Bansal
I could not understand.
Unidentified Participant
Now I’m just trying to understand what is the volume of artillery cells that will be procured domestically next year.
Sanjay Bansal
So right now these all reports, whatever we have, it is all through the newspaper reports. So somebody says government will procure for one month ammunition one month storage, somebody says two month storage but these are the defense documents which cannot be accessed by everybody. Anything with the paper says that can only be taken into account. So we don’t know exactly what government is planning. But we know whatever we are making, we are — we may be booked for — our orders will be X times than what we will produce.
That was confidence and that much information we have.
Unidentified Participant
Of course, I understand. And is this market opening up for us because of localization of
Unidentified Participant
Procurement or is there some other reason?
Ram Agarwal
So it will go everywhere but it all depends on the geopolitical condition what government allows to be exported to which country it is all a perservative of the government.
Unidentified Participant
Okay. Thank you. Thank you and good luck.
Operator
Thank you. The next question is from the line of Soham from RV Investments. Please go-ahead Mr Soham, your line has been unmuted. Please go-ahead with your question. As there is no response from the line of the current participant. Our next question is from the line of Sayam Shah from Investment Managers. Please go-ahead.
Shyam Shah
Hi, sir. Thank you for the opportunity. Sir, we are just reiterating the question of the last participant, sir, we have seen a good amount of supply coming in for this shelf that we are putting. Sir, are we confident that we’ll be able to deliver onto a 20% plus-minus EBITDA margin guidance that we gave for this segment?
Sanjay Bansal
So what do you mean by the EBITDA margins, what will be the EBITDA margins of the product yes.
Shyam Shah
Yes, from the facility that we have put in, this 150,000 shelves capacity.
Sanjay Bansal
So unless we go for the production and we sell-in the market, these all are the figures which are based on the newspaper reports. I have already said, but I hope in all the different products, EBITDA starts from 25% to 35%. In this product, what will happen, we can tell you only after one or two quarters.
Shyam Shah
Okay, sir. And sir, we are guiding for 15% to 20% top-line growth for this financial year. So can you split this between volume sales versus realization? Is there any impact of steel prices falling in this can the volume sales be potentially higher than, 15% 20%?
Ram Agarwal
Prices are totally unpredictable at this time. In this quarter also, prices have gone down. You will see what we had done in the last quarter Y-o-Y and the volume we have achieved in this quarter,, it is 1,12,000 we have achieved, whereas in the last quarter it was INR2,000. But the prices up-and-down were very much in the and this year is going-in the same direction, right now going? Maybe after two or three years it will start rising. So on are very volatile, very, very volatile due to geopolitical tensions all over and Trump terrorists are disturbing the whole market, we can say 20% very, very unpredictable where the Trump tariff will all developed countries, all developing countries are affected how India will make a deal with US, how US will make a deal with Europe. Everything will depend on that.
Shyam Shah
Okay, sir. That’s helpful. Sir, last question was, sir, if I heard it right in your opening remarks, we are projecting a 100% sales growth this year in the solar structure segment. Is that right?
Ram Agarwal
Yes, definitely. From the last year, yeah.
Shyam Shah
And this solar, is this included in our engineering structures that we report in the investor presentation or is it included in the CR sheet and pipes segment.
Ram Agarwal
In our investor presentation, it is included in our CR pipes, CR and pipes and it is not included in our infrastructure products and that growth what we have predicted it is over the last quarter Y-o-Y. Where this growth has been registered.
Shyam Shah
Okay. So we have registered a 100% growth basis last quarter versus last quarter.
Ram Agarwal
What is last quarter?
Shyam Shah
Okay, sir. Thank you.
Operator
Thank you. The next question is from the line of CA Bora, an Individual Investor. Please go-ahead.
Unidentified Participant
Yeah, good afternoon, sir. I just wanted to know that this — we have a subsidiary business defense. Is there any plans to come out with a public issue for business defense only on the shareholder value?
Ram Agarwal
Right now it cannot be said, but definitely in future it can happen.
Unidentified Participant
Any kind of sir
Ram Agarwal
Or what sir?
Unidentified Participant
What’s a public issue to come any in the next two years, three years
Ram Agarwal
Now the plant has to start. It has to perform by at least one year then after only after that it can be thought over. So near the time, we will come back to you.
Unidentified Participant
Okay, sir. Thank you.
Operator
Thank you. The next question is from the line of Paren Gala from Saigon. Please go-ahead. Yes, and good afternoon. So again, we were doing something in the media that the company was planning to put up a junior to filling of explosives in the shelves also and selling the entire things the company can to us
Ram Agarwal
So there was some disturbance we could not understand. Can you just repeat please
Paren Gala
Sir, we had learnt. I have learned through the media that the company was planning to put up a unit to fill explosives into the shell and then sell the entire explosive shell in the market is this means that something the company can confirm.
Ram Agarwal
I don’t know from where it has come. Right now we are concentrating only on making the shares empty shelf. If any development will always come back to you.
Paren Gala
Sure, sir. Thank you.
Operator
Thank you. The next question is from the line of Soham from RV Investments. Please go-ahead.
Soham
Hello, am I audible?
Ram Agarwal
Yes.
Soham
Sir, in the last call you said that this new defense plant has a potential of INR270 crores to INR300 crores. So sir, if the license get delayed, say, till Q3. So in the last quarter, how much revenue can we ramp-up can we do in that facility? How much you see can we achieved in FY ’23?
Mahesh Chandra Garg
The first thing I should tell you, we are not expecting any delay. It should not happen. First thing is, we should get license soon as possible. So I am very positive on this. We should get license as soon as possible.
Ram Agarwal
So basically in this — in this financial year, we expect a 40% to 50% capacity utilization in FY ’26.
Soham
Okay, sir. And this margin in this segment will be like you said 20%, so are we maintaining it?
Mahesh Chandra Garg
So right now it is all our projection. We hope it should be better than this, but let the plant start.
Soham
And sir, in your presentation, page number 14, you mentioned that defense contributes like 2% of your total revenue. So can you just tell me the EBITDA margin in this segment.
Ram Agarwal
Actually, what — what we have given in the investor presentation, it is about our forging division. In forging division, in defense, what we are doing, we have manufactured — we are manufacturing some smaller parts for HAL, for DRDO. So that only contributes 2% of our — of our forging turnover. Say if it is INR600 crores, so we are doing almost INR30 crore INR40 crores there, but it is different from our Goodlock Defense and aerospace, its turnover will come differently.
Soham
Okay, sir, understood. So that’s 2% of the coating segment, right?
Ram Agarwal
Yeah, definitely.
Soham
Okay, sir. And so margins in the coating segment will be more than pipes and future, right?
Ram Agarwal
Definitely it is there, but it is very small quantity so we don’t say of this. Normally it is there
Operator
Thank you. The next question is from the line of Rakesh Raj from Onkara Capital. Please go-ahead.
Rakesh Roy
Hi, sir. Sir, my first question regarding, sir, in this quarter, sir, or your hydraulic tube, how much is revenue from this business?
Ram Agarwal
Sir, I told it to — it is just — it has been stable — it was starting in September of ’24. And in this quarter, it has made — it has made significant capacity utilization, but it is still short of our expectation and I hope by this year — by this financial year, we will be using, as I had already communicated, we will be using almost 70%. Right now, it is below our expectation. It is almost 40% to 50%. It is the product has to be approved and I’m Happy to tell you one of the largest buyers of this product in the wholesale market, our product has been approved. Our — some supplies will go, they use it and they approve it. It is a long-time process.
Rakesh Roy
Okay. And sir, just try to understand on overall your volume, 1 lakh 12,000. If you remove our volume, how much the growth is there? Growth is there.
Ram Agarwal
We will let you know. We will let you know. We have not done such — we don’t have the data right now. How much exact quantity has gone, we will let you know.
Rakesh Roy
Sure, sir. And sir, next question is regarding defense business. I definitely say for cell, is a huge demand for the European market and Indian defense for companies, we have nearby 1.5 lakh or hopefully this year we start. In next one, two year, if we’re going to add the same capacity again 1.5 plus 1.5, so how much capex we need or any just try to understand sir.
Sanjay Bansal
So right now, we are concentrating on implementing on controlling this plant for the next line, we will come back to you. And at that time, we will definitely estimate what the new line requirement is there. Right now, our total 100% focus is on this plant.
Rakesh Roy
That’s sir. Or sir, any plan, any future or your plan to expand your different business apart from there you sell or you are doing and adding new this type of business in near-future, sir. Any plan or are you working any there?
Mahesh Chandra Garg
We are restrained by requirement of civil law we cannot declare anything on this con-call right everything is on-going board.
Ram Agarwal
Whenever it — whenever it comes, we will let you.
Rakesh Roy
Sure, sir. Thank you, sir. Thank you. Best of time.
Operator
Thank you. Before we take the next question, we would like to remind participants that you may press to ask a question. The next question is from the line of CSI Shabora, an Individual Investor. Please go-ahead.
Unidentified Participant
Yeah. Thank you for having me to follow-up. I just wanted to know by when will the new factory of Goodluck Defense be operational.
Mahesh Chandra Garg
As soon as we hear the license.
Unidentified Participant
Okay, sir. Thank you.
Operator
Thank you. The next question is from the line of Pradeep from Metawas Innovations Private Limited. Please go-ahead.
Unidentified Participant
Yeah. So my question is that your — in FY ’26, you mentioned that your defense plant will have about 40% to 50% utilization and in FY ’27, it will go to about INR90. And I think assuming that — and I think in the previous Call-IT all mentioned that the peak revenue from that plant can be about INR27,300 crores, correct? So in FY ’27, if we reach that capacity, so where will the future growth from that plant come from? That is my first question. And second is basically overall guidance is that we will keep growing for next couple of years at say 20% growth. So you know I — the expectation was the large part of the growth will come from the defense plant. But if we reach the peak capacity in FY ’27 when the special median comes back, where the next phase of growth will come from? Is it only debottlenecking of the existing forging and the other plants or is there any capex plan?
And the related question is also the margin expansion that we are talking about to go into double-digits, which will be — I assume that 15% plus, will largely come from the defense plant. But if you’re reaching the peak capacity in FY ’27 itself, then how does the margin expansion kick-in? These are my questions.
Ram Agarwal
Actually you have — you have asked so many questions at one point of time. The basic answer of this question is whatever guidance we have given, this year we have — we have clogged a turnover of INR4,000 crores. So if 15% to 20% growth in next three, four years, we hope it will continue. Definitely defense will be a part of it. But at the same time, our other products of hydraulic tubes, our infrastructure and forgings, they will — they will also give and solar industries, so they will also give the equal contribution to it. We are seeing as in my opening remarks, I have told in infrastructure I’m seeing a growth of sales — sales percentage is 20%. In our automobile, we are again seeing a turnover — turnover growth of 20%. In solar and Q-o-Q, we have done almost 100% growth.
So we see in the near-future, these three sectors will equally share our growth story. Defense will definitely be a part of it. And we have our plans to take it 1 billion, we have not started 1 billion. We reach three to four years and all these sectors along with defense, we will reach there, we know when capacity expansion is to be done, but we are making our steps very calculatively, we are taking a step one-by-one. Future is clear, but a step take on.
Unidentified Participant
So I think just a related question only, if I may — may be allowed. The question was that FY ’27 we are reaching peak capacity in the defense plant, right? So whether there will be a further capacity expansion in the plant or you know that will be? I mean that was one of the questions I had.
Ram Agarwal
Is there demands if everything goes well, definitely it will be there. And it should be there. I will say it should be there and we will go in the line, why not?
Unidentified Participant
So margin expansion trajectory will come from the defense or the other three business divisions that you mentioned, because I assume that those are low-margin businesses as compared to the defense business. So margin expansion will come from there.
Ram Agarwal
My friend, you are just — you have not just heard, I have said that my automobile business, my posing business and my infrastructure will take that, we’ll equally share that responsibility. And I understand, these are from 10% to 15%. If I imply at 10%, my auto is at 15%, my posing is at 15%, they are always good to go-forward.
Unidentified Participant
Okay, okay, understood. So I was assuming that the large part of margin expansion will come from the defense business, but thanks for clarifying that other businesses also contribute equally for the margin expansion. Thank you so much
Operator
Thank you. The next question is from the line of Tushar Gupta from Capital. Please go-ahead.
Tushar Gupta
Hello, sir. Thank you for the opportunity. Sir, I have one question. How is the export, especially in US market growing for us? And have we seen any impact of tariff or is there any possibility that it will affect in future?
Mahesh Chandra Garg
Can you clarify your question again, please?
Tushar Gupta
Sir, I’m actually asking about any — does we — what is the export business coming for us? And is there any impact of tariff we have faced as of now or any further export we can expect.
Mahesh Chandra Garg
Look, as on-date, there is a lot of uncertainty, not to the market, but there is uncertainty in the market which our importers are dealing with. So nothing can be said clearly how the market will take shape, very difficult to say anything. But I’m very sure that in next three months market will definitely settle down. Trump cannot keep on fighting every day once the tariffs settle okay then things will settle down.
Tushar Gupta
Okay, sir. Thank you so much
Operator
The next question is from the line of from Advisors. Please go-ahead.
Unidentified Participant
Hello, sir. Thank you for the opportunity. I just had one question. When the hydraulic plant is running at full capacity, what would be expected annual revenue contribution to our overall business.
Ram Agarwal
So this — when this — if it goes to 70% to 90% is our tube business, here we have put up this plant for a turnover of almost INR500 crores. So before starting this, we were at INR750 crores and when it goes to 90%, we hope a turnover we will get-in this segment, it will be almost INR1,250 crores to INR1,300 crores.
Unidentified Participant
Okay, sir. That will be great.
Operator
Thank you. The next question is from the line of Abhishek from AMBMS. Please go-ahead.
Abhishek Chhajer
Yeah. Hi, sir. Thank you for the opportunity. Sir, my question is that like as we told in this con-call, our interest cost will be around INR90 crores. So sir, considering the interest cost in this quarter of around INR28 crore, if I assume the same across next 3/4, it is close To somewhat 110 crores here. So like can you please explain on this like there are any plans to repay the debt or how this INR90 crores interest cost could be possible.
Sanjay Bansal
There would be a repayment of term-loan to be a repayment of term-loan of INR70 crores during the year. Moreover, banks are reducing the rate of interest as RBI has already reduced the rates or rate of interest. So we expect it will be in the twin of INR90 crores above.
Abhishek Chhajer
Okay, sir. And sir, yeah. And sir, can you please tell the sales volume for Q4 FY ’25?
Sanjay Bansal
Sales force 1092 crores it was almost INR1092 crores for the quarter-four of last year
Abhishek Chhajer
Yes, sir, last quarter of next previous year
Sanjay Bansal
In volume terms it was 1 lakh 47,000 ton and in value terms it was 10924
Abhishek Chhajer
Okay, sir. Thank you.
Operator
Thank you. The next question is from the line of Madhar Rathi from CCIPL. Please go-ahead.
Unidentified Participant
Thank you for the opportunity. Sir, I wanted to understand regarding our margin profile for FY ’26 as our hydraulic plants move-up, sir, what kind of margin expectations should we be taken?
Sanjay Bansal
So it should be almost in the range of 15% to 16% EBITDA margin in this hydraulic tube.
Unidentified Participant
And sir, on the overall basis, what kind of margin can we expect for FY ’26?
Sanjay Bansal
Sir, right now in this quarter, we have done almost 9% growth, 74% the overall margin should be in the range of 9.5% to 9.7% in this year?
Unidentified Participant
Got it. Sir, is it — sir, also I wanted to understand, sir, regarding the BIS implementation of steel, sir, are we seeing any issue where the raw-material cost for us is increasing, but there is an increase in ports of tubes and pipes in the country reducing our spreads. So are you seeing some kind of scenario on that front
Mahesh Chandra Garg
So this is a barrier which steel producer of course the to bring this barrier on exporter of HR 12 to the country is a big difference of almost $150 so there product become very facing a lot of competition from overseas importer so it doesn’t make a difference to us because we are buying domestic coils and producing pipe and all our product segments are these segments where specific material is used and we buy only from the local market.
We are the basic converters. It doesn’t make a difference to us.
Unidentified Participant
For it, sir, is it because of the customers that we serve and the industry that we serve that our margins will be protected? Is that understanding correct?
Ram Agarwal
Sorry, you understand, we are what we are doing in this segment what you have told, it is the HR coils. And the HR coil suppose from the import side and in the market side, there is a gap that government will not going to happen. So whatever price we purchase, we are the basic converter of the product. So our conversion margins remain intact. Prices may go up-and-down.
Unidentified Participant
Thank you so much and all the best.
Operator
Thank you. The next question is from the line of Yasha, an Individual Investor. Please go-ahead.
Unidentified Participant
Yeah, hi, thanks for the opportunity. I just want to know that there was some comment on slowdown in-demand in this quarter in domestic. So what is the reason behind that and what is the current trends on that?
Mahesh Chandra Garg
Look, maybe there was a slowdown in the latter half of the quarter. Slowdown in the market and slowdown internationally also has been while it has happened we have yet to understand there was money supply currently were there, government funds not flowing, government orders not flowing out. These are the factors which affected demand-supply. A seasonal slowdown is always there in the first-quarter when the rains start setting. So all the project get installed and they all will start in the H2. So you will see normally in the H2 is always better than the H1.
Unidentified Participant
Okay, thanks. And what is the current trend, like? Like is it still the slowdown is still there or it’s improving?
Mahesh Chandra Garg
It is still there. The rains all-around traffic movement of goods have slowed down, money supply tight, all these factors are leading to a slowdown in the economy
Unidentified Participant
And like despite all this, we are still confident of achieving the — our expectations for this year.
Mahesh Chandra Garg
Our product combination and our product profile and customer profile, we are dealing with the niche customers and niche products. So we are confident we’ll meet our targets.
Unidentified Participant
Okay, thanks. That’s it from my side. Thank you.
Operator
Thank you. The last question for the day is from the line of Sarda from Nirmal Bang Securities Private Limited. Please go-ahead.
Vedant Sarda
I wanted to ask that what is the return on capital employed we are targeting 22% ROC is almost 22% right now okay and in the future if whatever project we plan, so any range that in these range we would invest in a product or like
Ram Agarwal
We are what we are expecting and what we will do. We always want to keep our above 22% to 25% and we are aiming for that. We are working for that.
Vedant Sarda
Thank you so much, sir.
Operator
Thank you. Thank you. As this was the last question for the day, I would now like to hand the conference over to the management for closing comments.
Ram Agarwal
We thank everybody who participated in this call. We thank — we are thankful for all our shareholders and all the stakeholders. Thank you. We look-forward for your continued support thank you.
Operator
On behalf of Goodluck India Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines