Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Hind Rectifiers Ltd (NSE: HIRECT) Q4 2026 Earnings Call dated May. 18, 2026
Corporate Participants:
Suramya Nevatia — Chairman and Managing Director
Doug Bailey — Chief Executive Officer
Anil Kumar Nemani — Chief Financial Officer
Ashish Tony — Unidentified Participant
Analysts:
Nishita Shanklisha — Analyst
Sandeep Mukherjee — Analyst
Rupesh Tatia — Analyst
Gayatri — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Hindraktech House Limited earnings conference call for Q4 and FY26. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Suramaya Nawatya, chairman and Managing Director of Hind Rectifiers. Thank you. And over to you sir.
Suramya Nevatia — Chairman and Managing Director
Good afternoon everyone and thank you for joining us today. Representing Hirect. Along with me today are Mr. Doug Bailey, our global CEO and Mr. A.K. Nemani, our CFO. Mr. Manoj Nair, our CEO India could not join us today as he is in Germany representing HIRECT at the Coil Binding Exhibition. Our inaugural participation in that forum. Our Q4 and FY26 financial results and presentations have been uploaded to the stock exchanges and on the website. I trust you have had the opportunity to review them.
This has been a strong year for HIRECT and an important one. I would like to use my time today to do three things. Walk you through the key business highlights of FY26, set out our plans for the year ahead and share where we see HIRECT heading over in the long term. So we’ll start with the business highlights for FY 2026. Firstly, traction transformers. They were the defining product of our growth this year. We hold the largest market share in the industry today and our priority is to defend and extend that position.
Second, the copper conductors. We commercialized our fully automated copper conductor facility earlier during the year and I’m pleased to confirm that we have started receiving trial orders from private customers. We expect good revenue generation from this business vertical in this year and the years to come. Next Elventor France Formerly known as Vlink Solutions. This was acquired during the year and it gives us manufacturing and R&D presence in Europe across EMS, robotics and printed electronics.
This business currently runs at about 700 to €900,000 of monthly revenue. Our goal is to lift this by 15 to 30% to reach break even and eventually profitability. We have identified and are in the process of bringing on board a new CEO who will join us in the coming months specifically to drive that ramp. I will return to Alventive’s near term impact on our consolidated financials in a moment because I want to address it directly rather than leave it for the Q and A next Propulsion Systems all our external type tests have been successfully completed.
We expect the field trials to be underway immediately and we are now eligible to bid for development orders in the upcoming profession System Test. The Leadership during the past year we have built our senior team with our Global CEO CEO India Chief Global Growth Officer and soon joining us CEO Element of France. These appointments are deliberate. They are the team we need to execute the vision that we will offline shortly. Now, before moving to FY27, I want to address the Q4 consolidated EBITDA margins of 3% which Mr.
Nimani will detail shortly. This is entirely attributable to Alventa France being in its first year of consolidation and operating below break even. The standalone business which represents the core of Hirect, delivered an EBITDA margin of 10.8% for the full year with ROE of 30.3% and ROCE of 24.2%. We acquired Elventive with full awareness that the first 12 to 18 months would weigh on consolidated profitability. Our path to consolidated margin recovery runs through the volume ramp at Elventive that I described and we will report against that milestone every quarter as we go along.
We expect it to take between 6/4 to 8/4 to get the results that we want. We now come to FY27 preferential issue. The Board has approved a proposal to raise 100 crores from Tata Mutual funds by way of a preferential issue. Subject to regulatory and shareholder approvals, these funds will be deployed across four priorities, a 20% increase in monthly transformer production capacity, secondly, a tripling of copper conductor capacity, third, modernization of our power electronics test systems and finally additional R and D infrastructure for new projects.
A portion will also support working capital and general corporate purposes. Let’s come to the Industry Outlook the Indian railway sector continues to offer a strong long term opportunity. The Union’s budget has allocated a record 2.93 lakh crores to Indian Railways with continued focus on electrification, rolling stock modernization, signaling and safety, stationary development, dedicated freight corridors and high speed and semi high speed rail. These priorities translate directly into sustained demand for advanced power electronics, propulsion systems, traction transformers, motors, converters and next generation railway equipment.
IRirect has steadily evolved from a component supplier into a vertically integrated system solutions provider for the rail and power electronics industry. Historically our presence centered on critical components, transformers, rectifiers, aux converters and panels. Over the last few years we have expanded into higher value added products and subsystems that includes H VAC systems, IGBD based electronics, battery chargers and control systems. Today we are becoming a complete system level solutions provider with a strong focus on indigenous propulsion systems integrated railway power electronics.
This transition has tripled our addressable wallet share per locomotive which now stands at approximately 5 to 5.5 crores. Coming to the order book Our order book stood at 845.5 crores as of 31st March 2026 with new order inflows for the year at 858 crores. Order intake in our segment is structurally lumpy driven by railway tendering cycles. The relevant signal for the year ahead is that tenders have begun coming through and we have already secured L1 positions in most of the tenders that we have already bid for.
R and D. Our R and D team now spans more than 40 active projects across new products in existing industries, new products into new industries, different variants and different upgrades. The team is 150 strong today and will reach 200 by the end of the third quarter. The headline output of the year is the indigenous brake system for 6,000 hp locomotives. Hirect is the only Indian company to have designed, developed, manufactured and successfully tested the system. Apart from that, our propulsion systems, the DPWCS communication and safety platform and our converter portfolio have all hit important milestones during the year as well.
Coming to the dividends, the board has recommended a final dividend of INR 1.4 per equity share or 70% of the face value of rupees two. For FY27. For the current financial year we are committed to our originally stated target of 30% top line growth on a standalone basis. I would like to take this opportunity to talk about the long term vision that we have. We are undertaking a rebranding of the company. Revenue from rectifiers is now a marginal share of Our business and the name Hind Rectifiers no longer captures what we do or what we are becoming.
So we have decided to rebrand to hirec. A mark that is officially recognized by the government of India as a well known trademark. One of approximately 300, just 300 such marks in India today. I would like to share an ambitious vision with you today. 10 years ago in FY16 Hyrec did 94 crores of revenue. In FY26 we did 949. We have grown tenfold in 10 years. Now we have set ourselves the target of growing tenfold again. But instead of 10 years we intend to do it in the next five. This is a $1 billion top line goal and we are clear eyed that it cannot be achieved through the railway business alone.
We expect to reach it through three reinforcing levers. Organic expansion in our core which is a railway franchise. Growth in adjacent verticals where our power electronics capabilities translate naturally. This could include defense, mining and power management industries. And thirdly it will be selective inorganic moves. The detailed roadmap is something we will share with you in tranches over the next coming quarters. But for today I want you to know that the foundation has been laid, the leadership team is in place and the strategy is already in motion.
I will now hand over to Doug to take you through our global expansion and Elventive France updates. Over to you Doug.
Doug Bailey — Chief Executive Officer
Thank you Siramia and good afternoon Everybody. Financial year 2026 marks an important milestone in our international expansion with the acquisition of Eleventive. I think Surami mentioned it was formerly known as Beelink Solutions. The acquisition established our manufacturing and R and D footprint in Europe and it strengthens our capabilities in ems, robotics, the printed electronics and also power electronics. It also gives us access to high value sectors including the defense sector, aerospace as well as RAIL and the industrial automation integration is progressing on plan.
We’re actively evaluating synergies between India EMS and the European EMs both on manufacturing side and shared R and D and we think those benefits all start showing up in FY27 and onwards. FY26 was the first year of consolidation and as Siram you mentioned the the scale up phase has weighed on near term consolidated profitability. We’re prepared for that. The acquisition provides a platform we need for a long term global growth and technology roadmap and we remain focused on building a scalable global presence alongside our strong position in railway systems and next generation power electronics.
Now hand over to Mr. Anil Kumarnamani to take you through the financial performance
Anil Kumar Nemani — Chief Financial Officer
Thank you Doug Good afternoon everyone. Let me present a summary of our financial result for Q4 and FY26. First I present standalone revenue from operations grew 42.7% year on year to INR 260 crores compared to INR 185 crores in Q4 of FY25 EBITDA stood at INR 26.9 cr against the INR 19.9 cr in Q4 FY25 a growth of 34.9% on year to year with EBITDA margin of 10.2% profit before exception. Item and tech came at INR 19.5 cr up 39.5% on year to year and PAT grew 64% on year to year INR 16.4 cr. Just I use a Consolidated revenue from the operations grew 51.2% year to year to INR 279.8 Cr compared to INR 185 Cr.
In Q4 of FY25 EBITDA stood at INR 8.4 Cr with a EBITDA margin of 3% as Mr. Neotia outlined, this reflect the first year consolidation of Elunta France together with our investment in employees, operational R D and global capability build out stayed around for the year. Revenue from operations grew 44.8% year to only year INR 949.2 cr compared to 655.4 cr in FY25 driven by improved education and strong performance in traction transformers and railway system generation segments. EBITDA due 45.5% to INR 10,205 Cr with margin held in 10.8% procreate before exemption item and text INR 75 Cr up 49.2% and PAD was INR 57.7 Cr up 54.7% on year to year.
Return ratio improves meaningfully during the year. Roce raised to 24.2% from 23.4% in FY25 and ROE rose to 30.3% from 26.2% consolidated full year. Revenue from operations grew 52.5% EM year on year to INR 999.1 cross consolidated EBITDA grew 19.6% year to year 84.1 cr consolidated PET excluding minority interest to the 45 cr up 21.3% on year to year. That is all from my size. I now open the floor for Q and A.
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 star N1 on their touchtone telephone. If you wish to remove yourself from the question queue, you May Press Star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Nishita Shanklesha from Sapayal Capital. Please go ahead.
Nishita Shanklisha
Yes, hello. So I would just like to know about if you can quantify the elven orders that you mentioned that we are.
Operator
I’m sorry to interrupt. Nishita, we are not able to hear you.
Nishita Shanklisha
Yeah, so. Hello? Am I audible?
Operator
Yes, please proceed.
Nishita Shanklisha
Yeah, so I would. If you could just quantify the L1 orders that you mentioned that we are in the position of.
Suramya Nevatia
So there have been a variety of different tenders which we have participated in. This includes transformers, this includes propulsion systems. This includes some new products that we have participated in. We don’t have the quantified data on hand, but we expect good orders to come in from these tenders.
Nishita Shanklisha
Right. Okay. And you mentioned that in Inventive we can expect 15 to 20% revenue growth. Is that correct?
Suramya Nevatia
Now we have to increase the revenue, the monthly revenue by 15 to 30%. Yes.
Nishita Shanklisha
Okay. So what is the overall consolidated growth that we can see in FY27?
Suramya Nevatia
So we have mentioned that for standalone we are looking at about 30% which is what we had committed earlier as well. And that’s what we. We maintain. And for consolidated we will evaluate and maybe give you updates from the next quarter.
Nishita Shanklisha
And if you can throw some color on. When can we expect elventive to be EBITDA positive? Is it. Can that be in H1, FY27 or later in FY27? We are looking.
Suramya Nevatia
We are looking at about six quarters to make it profitable.
Nishita Shanklisha
That is going to be on the AT level or EBITDA level?
Suramya Nevatia
No, it will be at PBT level.
Nishita Shanklisha
Okay. Okay, understood. Thank you so much.
Operator
Thank you. Before we take the next question, a reminder to all the participants. If you wish to ask a question, please press star N1. We will take our next question from the line of Ashish Tony, an individual investor. Please go ahead.
Ashish Tony
You spoke about this FY31 vision of $1 billion revenue. And what’s the. What’s the broad areas you want to grow and what are the areas where you don’t have capabilities and you want to acquire? Because you spoke about inorganic. And what’s the margin target in that five years? If you can give broad perspective on this area,
Suramya Nevatia
Sure. So as we mentioned we are going to look at leveraging our strength, which is power electronics, and we will be doing that in multiple different applications. It will be anchored, of course by rail, which is the core strength. But there are many other applications, such as defense, such as mining and other emerging industries where power management is heavily needed. So we are getting into or exploring these different opportunities where we have, in certain avenues, we have made great progress.
This would be one of the main driving forces behind this vision. And inorganically, we will be looking at companies that have advanced technologies that could help us to further improve our offering to these different industries and different applications.
Ashish Tony
And what about the margin target? Any margin targets you have by FY31?
Suramya Nevatia
Yes. I mean it is, it is a little difficult to quantify, but yeah, we would be looking at, and I think I’ve informed this already as well, we’d be targeting between mid to late teens at EBITDA level. That’s what we intend to achieve.
Ashish Tony
Okay, and can you elaborate more on that inorganic, because you spoke about the areas, but are you like looking at acquisition in India or abroad and railways, you think you can like scale up like 50% of the revenue target from that area itself? Or what’s the thought process when you said railways is still the key contributor, at least for FY31 perspective?
Suramya Nevatia
So railways will continue to be the key contributor because the growth in railways is, is not going to slow down. Even within rail there are different segments. It’s not just locomotives, it’s different, different kinds of trains, different applications within rail. And India has a long way to go when it comes to modern and urban transport. So yes, it will have, it would be a big, big factor in that, in that growth journey of ours. And today it is difficult or not appropriate to point out specifically about inorganic.
But yes, we will keep you updated as and when things progress.
Ashish Tony
Okay, thanks and all the best.
Operator
Thank you. Reminder to all the participants, anyone who wishes to ask a question, we press star and one. We will take our next question from the line of Mahesh from Bhaire Investment Advisor. Please go ahead,
Ashish Tony
Sir. Just wanted to know. So with all the L1 orders that we have in hand and the orders that we are now executing, how does the railway, you know, how do you pass on the raw material effect then? I mean we thought this raw material prices inflating. So what are the specifications in order? Do you have any excavating, I mean price escalation clause in those L1 orders? How exactly it is, if you can. That would be my first question.
Suramya Nevatia
Yes, there is A price reduction clause in built into the tenders.
Ashish Tony
Is it for all of them or is it only for the line of business that we are into?
Suramya Nevatia
It is it is definitely there for the product and we are not concerned about other product lines.
Ashish Tony
Okay. All right. And my second question would be more on elven till fat. So if you can just throw some light on what is the amount that we have spent to acquire this asset. And so basically are there any capabilities that would be also brought down to Indian markets from this, from this acquisition? So how are you looking at this?
Suramya Nevatia
Sure. So I will answer your second part of the question and I think Mr. Nimani can then answer the first part. So regarding the synergies Elementive France has a lot to offer in terms of capability and competence. Their nature of products that they have, the printed electronics which is their patented technology. We brought them to India, we put them in trade shows and it’s something which is very exciting for the, for the Indian market and it does not exist in a. In a proper way. There’s a lot of things that we can do with them.
When we want to expand into the global product scenario. We have a variety of different products like smaller converters, power supplies which can be made over there for the western markets and their robotics capability is something that we are exploring very keenly to do that first internally here at hirec, but also at the. In the Indian market. So that is synergies are absolutely tremendous. And regarding the first question, Mr. Nimani, if you can address that.
Anil Kumar Nemani
Yeah, we purchased this company in €1 million. So we explained in earlier meeting that’s for incorporation of the existing company. We incorporated a new company in France and that company purchased in the ones 1 million euro and over and above. We introduced around 2 million euro as a capital losses.
Ashish Tony
And what was the reported numbers for that entity in last financial year?
Anil Kumar Nemani
We have not taken out that was also in the laws in fact before to them because took over that from the 1st of October itself.
Ashish Tony
So it was a loss making entity there. Yeah,
Anil Kumar Nemani
It was a loss making entity. That’s why this week growth and the very I can say cheap prices. They have the big assets. And here just as Mr. N mentioned the beginning, we have taken this company knowingly. They will be lost in the sixth quarter.
Ashish Tony
Okay. So Mr. Naval so when you, when you say that for today we are like five to five and a half crores in a locomotive. We’re able to do that kind of product line. So with this acquisition, let’s say couple of years down the line, I Mean I’m talking about FY 29 maybe 28 or 29. Do you see that amount going up from substantially because of this addition or even our organic growth could be substantially higher?
Suramya Nevatia
No. So as I mentioned five and a half crores is our wallet share today for locomotives. And that’s where it stops because that’s where the entire electronics of the locomotives is. Anything beyond that is all mechanical and different segment of product that we don’t do. That’s first. Secondly, this acquisition is a completely different business line and different business vertical. It is not related to rail.
Ashish Tony
Okay, and where are we?
Operator
I’m sorry, you may please for more questions. Thank you. Next question is from the line of Nikhil Chaudhary from thorough wealth managers. Please go ahead.
Ashish Tony
Yeah hi. Congratulations on a very good standalone and I have just two questions. Wanted to understand global we are so strong in power electronics and globally we have seen there is a lot of AI like data center capex that is happening in the power efficiency. A lot of rectifiers, thermal systems are not in demand. So just wanted to understand do we have any thoughts with respect to any of our products having adjacency in those areas over next three to four years? And second question is with respect to the CTC facility that has gone live once the plant reaches full utilization and since it is for our captive consumption what kind of margin uplift can we expect with this code integration?
Suramya Nevatia
Sure. So firstly our products that we have today, they are adaptable for emerging markets like data centers and AI and power management within renewable. And that is one segment that we are exploring and we’re looking to looking to work with. We’ve already met a few companies in this space and we are trying to figure out what solutions we can provide to such companies. Regarding the CTC about 60 to 70% of the capacity would be for in house consumption and the remaining would be available to third parties that we can do business with.
It will have a significant impact on the margins. In fact we have been able to secure L1 in the in the previous transformer tender because of the backward integration of the CTC plant.
Ashish Tony
Wow, great, great, great to hear that and follow on to the earlier answer to yours like in that what areas are we looking like is the time for the products that we are engaging with the prospective data center clients? Is it large like I’m just trying to understand the quality of the product the areas of the product that we are probably focusing on because we are seeing a couple of companies actually changing their totally growth rates just by being in the supply chain of these growth that we are seeing in this space.
Suramya Nevatia
Right. So we don’t want to be a product supplier. We actually intend to be a system or a solutions supplier to the. To these companies. They have a lot of pain points today. And we are trying to address them and give them a like a holistic solution, not just one product.
Ashish Tony
Are these opportunities size large for us like or will it be like maybe say fraction of the revenues two, three years down the line? Do you think that we can materially uplift the kind of revenues that we can see? And I know it is too early, but just trying to gauge what. Yes,
Suramya Nevatia
Definitely. Definitely it will be a big contributing factor to our growth.
Ashish Tony
Got it. Got it. Very helpful and thank you so much. Wish you all the best.
Suramya Nevatia
Thank you.
Operator
Thank you. Participants, you may please press star and one to ask a question. We will take our next question from the line of Sandeep Mukherjee from SKP Securities Ltd. Please go ahead.
Sandeep Mukherjee
Yes, sir. Thanks for taking my question. Sir, my only question is that quarter to quarter revenue has remained flat. But the expenses have like raw material and other expenses have increased a bit. So what was the reason?
Anil Kumar Nemani
Should I explain it?
Rupesh Tatia
Yes, please.
Anil Kumar Nemani
Yeah. See, there is raw materials, quarter to quarter is almost same. There is no major changes in this. In fact it is a percentage confusion is slightly less for the standalone basis also. And consolidated is also good. Yes. So there is a marginal increase in other expenses only because of ascending key. We are already incurring the expenses in the initial remark that Mr. Nayoti also mentioned. We are increasing the expenses because of the global funding of the business also. But that is also a very nice marginal increase.
There is major increase as a result. Finance cost after the I can say is still under control. Some employees cost and other expenses there are margin increase.
Sandeep Mukherjee
Right? Right. Okay, sir. Thank you.
Operator
Thank you. Let’s take the next question from the line of Sampath Nayak from ZTO Capital. Please go ahead.
Sandeep Mukherjee
Hi sir, this is Ambat. So actually I wanted few insights with respect to future growth levers. So we said, you know, first one will be growing organically. Second through power electronics in defense and mining and aerospace. So can you give more insights on which niche segments we are targeting within this
Suramya Nevatia
Today? We cannot be specific in that segment. But we will keep you updated as and when we get into it more into these business applications.
Sandeep Mukherjee
Right. So my second question is you said like is it you’re not able to give quantum of order pipeline, bidding pipeline. Is that correct?
Suramya Nevatia
No, we don’t. We don’t keep a tab of these, of these tenders. I mean we have the MI statements but we don’t have it offhand today.
Sandeep Mukherjee
Sure sir. Thank you so much and all the best.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star N1. Next question is from the line of Rupesh Tatia from Long Equity Partners. Please go ahead.
Rupesh Tatia
Yeah. Hello sir. Thank you for the opportunity and congratulations for good standalone numbers. My first question sir is on propulsion system. So if you can give a bit more detailed update on where are we in the trial? Have you seen any issues? What is your level of confidence that the trials will pass and when you say we are eligible for development orders, I think every year new, maybe 1500 locals are manufactured. So what kind of opportunity does the development vendor have and is there any competition in the development vendors?
So that is my first question. Sure.
Suramya Nevatia
So we have completed all the type tests. Internal, external, external type tests, had multiple agencies involved which includes, let’s say from railway side there was RDSO which is their design house from Lucknow. It had Chitranjan locomotive which is their production unit. Of course it had our teams and it also had certain third party labs where we have to do the testing. It is actually a remarkable achievement that we have completed these tests in the very first attempt and in record breaking time.
Most companies have taken months to complete these tests where we have done it in few days with very little to no sort of errors or changes and any negative feedback. So yes, the tests are all done. In fact we have a video that we have shared with our advisors and I can have them email it to you. It’s basically, it’s basically the high risk locomotive pulling the freight train. It’s, I mean if you see the video, it’s just a train moving in the field. But it’s a very big deal for us because that’s actually, it’s our train, it’s our locomotive that’s, that’s, that’s pulling the train.
So we are now in the process of the 50,000 kilometers. And what has happened is since the pipe tests have been completed, we have developed, there’s a procedure which happens in Indian Railways where they sign these different joint notes. And we are in this stage today where the tenders that will be coming out in end of the month, June, July, we will be eligible for development quantity. The development quantity is 20% of the total tender quantity. So if they are doing 1500 locomotives, I mean as for they are doing 1600 actually.
So 20% of that is where we’ll be eligible and there are, I think maybe one. There’s one more competitor that we have. However, it is not black and white. There are many things that come into play when they want to give these orders. That includes capacity, quality, delivery, performance, multiple factors and we are in a very strong position to get maximum benefit from these development quantities. And yeah, we’ll be able to provide you more insights into this once the tenders come out from the end of the month and for this quarter.
Rupesh Tatia
That’s fantastic to hear, sir. One or two follow ups. So what kind of capacity do we have for these propulsion systems? That is one. And when you give this 30% revenue growth guidance on the standalone, does it already incorporate the propulsion system orders? Development orders. And third one is FY28. I’m hoping we will be like a regular bidder in FY28. So what kind of market share can we expect in let’s say FY28, FY29 time frame?
Suramya Nevatia
Yes. So yes, propulsion system is part of the growth strategy. We should start seeing results coming in from Q3 onwards for propulsion System for the approval criteria. There’s some changes which have happened just last week from the railway side. They are actually now measuring quality, not just the pricing and they set a standard that if so there is a term, it is called frpcpy. It stands for failure rate percentage per yield. So if a company RPCPY is consistently above 30% they might be delisted or downgraded from approved to development.
And we know for a fact that a lot of companies FRP CPY is more than 30% and we know our quality and we know our capability. So if Railways decides to take action on some of our competitors for not meeting the quality standards, we could look at expressed approvals. So yes, we may be able to get approvals by next year, by the end of next year or probably even before that if the FRP CPY conditions of others are not met, we are confident because everything that we have done is done in house. So it’s the hardware, the software, the algorithms, all of the electronics that we are supplying have been designed by us, developed by us, keeping Indian conditions in mind and we have seen that in the other converter that we make that our product genuinely works good on the field.
That would be a fair assumption that yes, next year we should be looking at being an approved source. Also, I want to add one more point here, that the propulsion for locomotives actually is a stepping stone for us and not the end goal. Because everywhere else that we Want to go all different kinds of trains, all modern trains. The eligibility to participate in those projects actually comes from propulsion for locomotives.
Rupesh Tatia
That’s, that’s fantastic. So just, just on capacity and one more follow up is, is it fair to assume that propulsion system will have significantly higher EBITDA margin than the company average on. On standalone basis? So coming
Suramya Nevatia
To the, coming to the capacity we are not really bound by any capacity constraint at least as on date. In fact that is one of the use of the funds that we have received from Tata Mutual funds to build a more sophisticated test infrastructure for these advanced and sophisticated so capacity really for us. And regarding the EBITDA numbers to start with, like for immediate sense the EBITDA will be, will be lower on propulsion systems but in the few months it will significantly improve. So we have done a lot of backward integration here as well.
We have our own EMS competence, we have our gate drivers, we have a lot of electronics that we use for propulsion system that we do in house and once that comes into, comes into supply, yes EBITDA margins will be much better than what we have as a company as a whole.
Rupesh Tatia
That’s fantastic. Sir, my second question is on copper.
Operator
You may please rejoin Vicky for more questions.
Rupesh Tatia
Yeah, sure.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to two per participant. Should you have a follow up question, please rejoin the queue. We will take our next question from the line of Nishita Shanklisha from Sapphire Capital. Please go ahead.
Nishita Shanklisha
Yes, hello, thank you for the follow up. I just wanted to understand about the CapEx. How much CapEx did we do in FY26 and how much are we expecting to do in FY27 and what is that capex going to be used for?
Anil Kumar Nemani
Yeah, this in 5. This we have done approximately 70cr is at FX. Yeah, and maybe approximately 50cr is assumed today we have planned for the FY27 only
Nishita Shanklisha
And this is just maintenance Capex. What are we going to use the 50 crop?
Anil Kumar Nemani
No, I could not follow this. What is that?
Nishita Shanklisha
What is the 50 crore capex that we have planned for FY27 going to be used for? Yeah,
Anil Kumar Nemani
That would be mainly for increasing the capacity for the propulsions, transformers and copper.
Nishita Shanklisha
I’m sorry, you are not ordering.
Anil Kumar Nemani
This would be for increasing the capacity for the transformers, propulsions and also for the copperplumb CTC plant.
Operator
Thank you. Next question is from the line of Mahesh from Dharia Investment Advisor. Please Go ahead.
Ashish Tony
Yes sir. Again my question would be out of five and a half crores that you have told me. So where are we? I mean how much of it is being serviced by us today in locomotive? Let’s say you said that entire power system saves five and a half crores. How much of it is being done by us today?
Suramya Nevatia
Five and a half crores.
Ashish Tony
Five and a half crores per locomotive is our in is the market. Right? I mean what you have said like in the locomotives. But how much are we servicing today?
Suramya Nevatia
We are servicing the entirety of that.
Ashish Tony
Okay. That you’re also taking into account the proportion system that they are going to have, right?
Suramya Nevatia
Yes.
Ashish Tony
And what could be the proportion system out of this find of crores? What is the value of propulsion systems?
Suramya Nevatia
It is about 1 point. 1.7 to 1.8 crores.
Ashish Tony
1.7 to 1. 8 crores. So when you say 20% bidding for 1600 locomotives. What. What Exactly. And let’s say we get. You said there is another one competitor so we might get some decent order. So what is the order book you are looking at from this propulsion system?
Suramya Nevatia
We are. We are looking at the 20% of the tender quantity as a development source and we will try to extract maximum from that as we can.
Ashish Tony
Yeah, you can just quantify that in absolute numbers?
Suramya Nevatia
No, cannot quantify that in absolute numbers.
Ashish Tony
Okay. All right. All the time. Thank you so much.
Operator
Thank you. Next question is from the line of Nikhil Chaudhary from Thoro wealth managers. Please go ahead.
Ashish Tony
Yeah. Hi. Thank you for the follow up. Just one clarification. Did we probably say that this billing will take six quarters to probably get to PBD Positive like just trying to understand. Won’t it probably be the margin uplift that we’ll be getting through our. Probably the integration and the new products. Will it be the overall margins in the next six to eight quarters?
Suramya Nevatia
I didn’t. I couldn’t understand you clearly. But I’ll just answer again. So we are looking at six to eight quarters to get this increase in revenue that we want @d link to make it break even and then make it profitable. And to do that we have identified a very strong CEO who will be joining us shortly to give us this ramp up and growth and management and governance that we need at Eleventor France.
Ashish Tony
Got it, got it, got it. So understood. I was just trying to understand like to probably the six to eight quarters will be probably billing will be consolidated in our numbers now so it can have an impact on the overall console margins that it has in quarter Q4. So technically yes, coming in the next next quarter, in the coming years maybe we’ll the our margin guidance of probably say mid teens would probably be delayed by say maybe say 28 something of that sort
Suramya Nevatia
Of. That’s not entirely accurate. Firstly if you look at hierarchy standalone then definitely the margins will keep improving. But even when we consolidate, we need to ramp up their monthly revenue and we will be increasing their monthly revenue from immediate, ongoing as we speak, from immediate impact. So even if it is a 5%, 8%, 10% increase in the monthly run rate, it improves the financials by that much.
Ashish Tony
Got it, Got it. Understood. This is very helpful. Thank you so much.
Anil Kumar Nemani
For one confirmation, their cost structure is slightly different than us here in India we have the major higher metal cost and less fixed cost and there is a lesser material cost and higher than fixed cost. So any increase in the top line will have the substantially should have the substantial impact on the bottom line.
Rupesh Tatia
Got it. Your voice is a bit unaudible, but I’ll hear the recording later on.
Anil Kumar Nemani
Okay,
Operator
Thank you. Next question is from the line of Gayatri from Malabar. Please go ahead.
Gayatri
Hello. Hi sir. So quick question here from my side. There are a number of new players like Embryo Electro and then incumbents like Meda as well on the propulsion system side. So my question was what specifically does Hind have that the other new and incumbent players don’t have? Or do you expect, you know, everyone will keep winning some portion of the pie given the massive tailwind? So do you expect to see them also winning against us and everyone sort of having that 15, 20% market share as you think about sort of medium term?
Suramya Nevatia
No, that would not be a fair assessment because as I just mentioned earlier that Railways is now looking at qualitative measures, not just pricing. So if you’re not able to maintain product failure rate within 30% FRP CPY, you will be delisted and downgraded from approved to development, maybe even blacklisted. So not everybody’s on this level playing field. Some companies, rather, very few companies actually have that technological competence to have this product of that nature that the failure rate is below that 30% equity CPY.
So I strongly believe that the number of competitors in this business will actually reduce due to the stringent quality standards.
Gayatri
Got it. So just testing and being successful in the first round alone doesn’t guarantee continued success is what you implied.
Suramya Nevatia
Actually, if you don’t understand the field conditions or if you’re not able to adapt the product to Indian Railways conditions, that’s what makes it not work so a lot of people have technology from outside so technology may be great but it is not suitable or very easily adaptable for Indian Railways conditions it may be more suited for European or other countries so that is the differentiating factor and when you add the backer integrated electronics
Gayatri
This
Suramya Nevatia
Combination is what really works in the field when it comes to quality
Gayatri
Got it Thank you so much.
Operator
Thank you ladies and gentlemen due to time constraint that was the last question for today I now hand the conference back to Mr. Suramaya Nawatya for closing comments over to you sir
Suramya Nevatia
Thank you everyone thank you for your engaged participation and for taking the time to join us today we hope this has given you a clear view of where hirex stands and where we are heading we look forward to continuing the conversation throughout the year thank you once again
Operator
Thank you on behalf of Hind Rectifiers Ltd. That concludes this conference thank you all for joining us today and you may now disconnect your lines.