HLE Glascoat Ltd (NSE: HLEGLAS) Q4 2025 Earnings Call dated May. 23, 2025
Corporate Participants:
Unidentified Speaker
Himanshu Patel — Managing Director and Chairperson
Naveen Kandpal — Chief Financial Officer
Analysts:
Jaiveer Shekhawat — Analyst
Vibhav Khandelwal — Analyst
Resham Jain — Analyst
Raj Patel — Analyst
Unidentified Participant
Ajay Surya — Analyst
Veer Rajesh Vdare — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the HLE Glasgow Limited Q4NFY 25 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Vidhi Vasa. Thank you. And over to you Ma’ am.
Unidentified Speaker
Everyone, welcome to the Q4 and FY25 earnings conference call of HRE Glasscourt Limited today. On this call we have Mr. Himanshu Patel, Managing Director, Mr. Alab Patel, Executive Director and Mr. Harsh Patel, Executive Director with the other senior management team. This conference call may contain forward looking statements about the company which are based on beliefs, opinions and expectations. As of today, actual results may differ materially. The statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.A detailed safe harbor statement is given on page number two of the company’s investor presentation which has been uploaded on the Stock Exchange as well as company’s website. With this, I hand over the call to Mr. Himanshu Patel for the opening.
Unidentified Speaker
Over to you sir.
Himanshu Patel — Managing Director and Chairperson
Thank you. Good afternoon and warm welcome to all the participants. Thank you for joining us today to discuss the financial and operational performance of HLE grasp for Q4 and financial year 25. I hope everyone has had an opportunity to go through our financial results and the investor presentation which has been uploaded on the StockX CE as well as on the company’s website. I am pleased to share that Q4 financial year 25 has been a milestone quarter for us in terms of absolute operating performance. After a few quarters of relative softness, we reported an EBITDA of rupees 54 crores with EBITDA margin of 16.3%. While our revenue growth remained robust, our strategic initiatives allowed us to extract operating leverage from existing operations.
This has translated into a standout profit after tax, further reaffirming the long term strength of our business model. I am also proud to highlight our strong cash generation during the financial year which enabled us to reduce both long term and short term debt obligations by approximately Rupees 50 crore. This aligns with our ongoing commitment to strengthen our balance sheet going forward. Rationalizing our working capital cycle and debt reduction will remain key priorities backed by consistent growth, sustained cash flows and prudent capital allocation.
From a macroeconomic standpoint, the outlook across our end user industries is turning positive. India is entering a multi year capex cycle with public and private investments gaining steady traction in pharmaceutical. Stable demand and a renewed focus on compliance and innovation are driving fresh capacity creation and hence opening up opportunities for high quality technology driven equipment like ours.
Specialty chemicals continue to benefit from global substitution, sustainability shift and supply chain localization supporting long term infrastructure investments. Though agrochemicals face short term pricing pressure, inventory normalization and policy support are setting the stage for a gradual demand recovery and capacity. Overall, the specialty, chemicals and agrochemicals segments are expected to recover post global trade uncertainty. At HLE Glass coast, we remain well positioned to harness these tailwinds through our robust product portfolio and long standing customer relationships. I am also glad to inform you that Cinam Engineering has initiated supplies of its first large oil and gas order. This order will be fully executed in Q1 of financial year 2025 and 2526. This we believe is a significant milestone that marks our strategic entry into this high potential vertical. This not only diversifies our end market exposure but also reinforces our capability to deliver complex high value engineering solutions beyond our traditional sector. On the regulatory front, the Honorable MCLT Ahmedabad Bench has scheduled the final hearing for the approval of the scheme of amalgamation of kinamen Enterprise Private Limited with HLE Glasscode Limited in July 2025. Once approved, this amalgamation will mark the completion of the multi stage ENAM acquisition transaction and HLA Glasscote will own 20% stake in Enam Engineering Industries Private Limited. This will further unlock operational synergies, ultimately enhancing shareholder value. As we move into financial year 26, we carry strong momentum underpinned by a healthy order book. With a business visibility of over seven months for the international business and over six months for the India business. Our sharp focus will continue on strengthening relationships with pharma, specialty chemicals and agrochemical players, improving internal efficiencies to maintain margin resilience and continuing our balance sheet optimization strategy. At HLE Glasco, we remain committed to deliver innovative, customized and efficient process equipment to our customers in these dynamic sectors. During the year under review, we continued to enhance our manufacturing and engineering processes while deepening engagement with our core client base. We are also channelizing investments in process automation and sustainable design, helping our clients not just meet productivity goals but also advance on their ESG aspirations. In this direction, we have. Recently inaugurated the State of the Art center of Excellence at Anand, Gujarat. While the performance has been encouraging, our board has proposed to continue with the same dividend to conserve resources for the company’s growth plan that is 55% as declared for the last year. I will now hand over the call to our CFO, Mr. Navin Kandibal who will take you through the financial performance for the quarter and the year. Thank you. And over to you, Naveen.
Naveen Kandpal — Chief Financial Officer
Thank you, sir. Good afternoon to all the participants. I am pleased to share our financial results for the quarter and year ended March 31, 2025. The company reported consolidated revenue from operations of approximately INR334 crores with a growth of 8.7% compared to Q4FY24 EBITDA of INR54 crores witnessing a growth of 41.1% year on year from Q4FY24 with an EBITDA margin of 16.3%. Reflecting our strong operational performance, the Company declared its consolidated PAT at around INR32 crores, a 113.8% year on year jump in comparison with Q4FY24 which ended with a PAT margin of 9.5%.
On a sequential basis, we achieved revenue growth of 44.4% up from INR231 crores. EBITDA on a sequential basis saw an increase of 96.7% whereas PAT registered a significant growth of 207.8% as compared to Q3FY25. For FY25, our revenue grew by approximately 6.2% rising from INR968 crores to INR10.28 crore. Our EBITDA grew 16.6% year on year and the annual EBITDA margin stood at 13.7%.
In Q4FY25, our filtration, drying and other equipment segment, we degrew by 5% compared to Q4FY24. We reported a revenue of INR109 crores in comparison to INR116 crores in the corresponding quarter. Likewise, in FY25 our revenue dropped by 16% in this segment. Despite the revenue due growth in this segment, we were able to maintain the double digit EBIT margin for the Q4 FY25 at 11.5. Meanwhile, our glass line equipment business generated about INR582 crores of sales compared to INR497 crore last year. Reflecting a growth of 17% with EBIT of INR54 crores growing by 85%. In comparison to Q4FY24, the heat transfer equipment business showed a revenue growth of 38% contributing INR122 crores to our sales for FY25 up from INR89 crores in FY24. Talking on the debt portion, we repaid approximately around rupees 50 crores in this financial year, reflecting strong operational cash flows and paving the way for lower interest costs supporting sustained profitability growth. While certain end markets continue to face headwinds, our diversified product portfolio and strategic execution have helped us navigate the environment effectively. We remain focused on enhancing operational efficiency, deepening customer engagement and maintaining a disciplined financial approach to support long term sustainable growth. With that, I would now request the moderator to open the floor for any questions. Thank you.
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 and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press star STAR and two 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 Jaivash Rakhavat from Ambit Capital. You may proceed.
Jaiveer Shekhawat
Sure. Thanks and congratulations on a good quarter. My first question was on your GLE business. I see that you have already recovered back to your FY20 levels. So could you talk about the recovery across different end user segments, how that stacks up and also across the India and Teletec business? That’ll be my first question.
Himanshu Patel
Yeah, Hi, good afternoon. The GLE business, like even the filtration and drying segment, is seeing good traction from the pharma customer. The share of pharma customers in our total order book has grown significantly this year. While we see very positive growth in pharma, we also have encouraging trends in the chemical segment and we are also seeing a positive uptick not just in inquiries but also in order book for the chemical customer.
As far as the split between India and the Thalitec Germany business goes, the Scalitec Germany business has actually contributed a larger share of the growth in the overall GLE business rather than the India business.
Jaiveer Shekhawat
And is that largely. Happening because of again, higher indexation towards pharma in the, for your Germany business?
Himanshu Patel
Yes, that’s correct.
Jaiveer Shekhawat
Right. On the margin side, I mean, I mean given the situation that you are right now and the recovery that you’re expecting, when do you think you would be able to get back to your mid to high teens sort of EBIT range And how’s the competitive intensity at the moment versus where it was possibly a few quarters back.
Himanshu Patel
So I’ll answer the question about the competitive intensity first. As the volumes in the, in the market go up, the competitive intensity intensity obviously eases out a little bit and as a result, obviously our ability to get better pricing also increases and obviously that tends to an increase in the margins. Also as the volumes go up, we will see spreading out of some of the fixed costs obviously also leading to an increase in the margins. And as we have maintained through the last few quarters, we still believe that a long term sustainable margin for the India business Is in the 17 to 18% range and that for the German business is in the 14 to 15% range.
Jaiveer Shekhawat
And that’ll be for your overall business. Right. I mean if we were to specifically talk about your GLE and then the F and D business, how would the sustainable margin stack up?
Himanshu Patel
I think the sustainable margins for both the businesses are relatively similar because. Yeah. So they would be in the 17 to 18% range as indicated by Alabhai.
Jaiveer Shekhawat
Sure. Lastly, on your heat exchanger business, just want to understand the dynamics of the segment where you operate in more on the pharma and chemical side, how is the competitive intensity there and then who are the larger players supplying these heat exchanger equipments to your end clientele both in India and globally.
Himanshu Patel
Yeah. So I think the general, since we cater to the same, to the same industry, the chemical and the pharma, there is a substantial overlap in the customers between our different product segments there. So the competitive industry, competitive intensity and the evolution of the market dynamics are comparable to our GLE and FND businesses there. Also, in terms of who the competitors are in India typically heat exchanger manufacturers are. So it’s a very fragmented industry. There are a large number of relatively small players catering to chemical and pharma.
Also, you know, there are a couple of large companies. You know, operating with a revenue in the 100 to 200 crore range. But apart from that, it remains a highly fragmented industry.
Jaiveer Shekhawat
Got it. If I made the last question, given you have been leaders on the FND side, just trying to understand is the clientele over there very different? Because ideally it should not be the case. So why has there been a decline on that segment versus sort of growth that you are now seeing on the glass mining side? Just want to understand that better.
Himanshu Patel
Yeah, I think. You know, as we had also said during our last call, the order booking for the first two quarters was subdued for both our businesses. So FND and Glasslining, however, there is always, you know, a certain lag in the time frame when the order booking picks up for each business. A quarter or two here or there. The order booking for FND division really picked up in the last two quarters, predominantly in the last quarter of the year. And owing to our cycle time, all of this could not be dispatched. And we only recognize the revenue once the equipment is built and dispatched.
So, you know, while we see a slight degrowth in the FND business in the last financial year, we are currently at a very high order book which gives us more than six months, or rather close to a little over six months of visibility. So the top line in the FND business should recover this year.
Jaiveer Shekhawat
Sure. Thank you so much and all the best.
Himanshu Patel
Thank you.
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 two per participants. The next question is from the line of Vaibhav Khandelwal from Labrun Capital. You may proceed.
Vibhav Khandelwal
Yeah, thank you and congratulations on a strong set of numbers. My first question was similar to the question asked by the previous panelists. If you could sort of give us some sense of the how you’re seeing the sectors evolve with Farm and Chemical. You gave us some details, but it would be helpful if it could give us more sense of, you know, how it’s starting up domestically versus internationally. So, you know, what is, what’s the different trend you’re seeing? What are the drivers you’re seeing in both the sectors? Globally and Internet and. Sorry, domestically and internationally? That would be helpful. Thank you.
Himanshu Patel
Hello. Can you repeat the question a little bit? I missed the first part.
Vibhav Khandelwal
Yeah, sure. So my. My question was basically, you know, if you could give us some commentary about both the sectors, pharma and chemical. You gave us some sense in the previous question, but if you could detail it out a little further. What are the different trends emerging, you know, both domestically and internationally? Is there any differences on and so forth?
Himanshu Patel
Okay, so I think as Alav explained earlier, the pharmaceutical sector has seen encouraging or rather very positive uplift in the Indian industry. Investment in the pharma sector going on in India, which has led to the good order book that we have, the non pharma. When I say non pharma, I would include agrochemicals, some part of basic chemicals, dyes, colorants, pigments, all those kind of industry. They, they have seen some encouraging development, but they are not at the level that we think they should be. So there is still some growth opportunity that will come by once those sectors start reviving.
These are the two basic trends that are emerging in these two broad segments that we can have. The other trend that is emerging and I see emerging is the impact of tariffs that the US finally will have on India and on China in general. What we see right now, even right now when they have a trade deal agreed kind of with China and the trade deal with us yet to be finalized, we will. We are already seeing about anywhere between 10 to 20% differential in the tariffs. So I believe that that is advantageous for India, at least for the US market. I also think that there is also an uptick. What we see is that a lot of things that Europe was not manufacturing because of the trade wars with China, the war in Ukraine, continuing war in Ukraine and Russia, a lot of things.
Even the European countries they have started investing in in segments which earlier they were always thinking of going to Asia. So overall for the glass line business in Europe, in Thale Tech, we see the long term trend being that more investment is coming and pro Pharma good in India and the tariffs are also in overall giving us a positive outlook.
Vibhav Khandelwal
Understood. This is helpful. One more question, I mean I had was regarding your FND and GLE business. For the two confirm the growth with Fresh Capex. The growth rate for both GLE and FND is broadly similar under difference in large timing. So with Fresh Capex emerging broadly, you would say that the growth rates of both GLE and FND businesses respectively should be similar. Broadly, am I right?
Naveen Kandpal
Yes, you’re right. The growth rate would be similar.
Vibhav Khandelwal
Understood. And one more question. I think I noticed in the past, you know, FY23 and FY24 specifically we saw that the receivables as a percentage of sales, they were going up. Especially now, of course, you know, in FY25 that’s improved a lot. Just wanted to understand if we can expect the same FY25 performance going forward and if the FY23 and FY24 performance, which was slightly weak on the receivables and working capital front was largely due to the down cycle. Right.
Naveen Kandpal
Yeah. So thank you for the question. So yes, your observations are right. In 2425 there has been a significant improvement on receivables collection front. And we hope that this will continue in the coming year as well.
Vibhav Khandelwal
Got it. Any guidance you would like to offer for FY26, FY27 on growth for the margin front? Margins you mentioned already regarding steady state margins. But on growth, if you’d like to offer any guidance,
Himanshu Patel
I think we are expecting growth in the high teens. I would say somewhere in the range of 16 to 20%.
Vibhav Khandelwal
Understood. Got it. And this would be primarily driven by the pharma sector and you know, the benefits, the trends being, you know, the CDMO and global supply chain diversification as you mentioned. Right.
Himanshu Patel
Yes. Pharma sector will be the driver. But we are also expecting revival in the other parts of the chemical industry which has so far been subdued.
Vibhav Khandelwal
Understood. All right, that’s all from my end. Thank you so much and all the best.
Operator
Thank you. The next question is from the line of Rasham Jain from DSP Asset Managers. You may proceed.
Resham Jain
Yeah. Hi. Good evening team. So I have a few questions. The first one is with respect to Thalitec. If you can share, what is the Thalitec share of the revenue in FY25 overall? Out of 582 crores of total glass line revenue.
Naveen Kandpal
So total, yeah, total share of Scaltex revenue is around 30% of our total consolidated revenue.
Resham Jain
Sorry. If you can help the exact revenue of Thalitec, that would be helpful.
Naveen Kandpal
So I think for the year Thalitec revenue is about 360 crores.
Resham Jain
Okay. Okay. Which means Thalatec has actually grown like significantly this year. Almost like more than 40, 50%. Is that correct?
Naveen Kandpal
No, I think on an annual, on the annual basis it has grown by roughly about 20, 23%.
Resham Jain
Okay. Okay. This is including the Thalitec revenue which you might be accruing from US and India. Like.
Naveen Kandpal
Yes. So this includes Germany and Thalitec USA both put together. Yes.
Resham Jain
Okay. Okay, understood. And has. Is the margin this year FY25 much better than India margin. Is that a right understanding?
Himanshu Patel
The margin has improved considerably over the last year. This year the margin is close to about 15% at the EBITDA level.
Resham Jain
Okay. Okay, understood. Yeah. And with respect to Kinam, given that you have won the large oil and gas order, the overall revenue itself is like 120 odd crores this year. So given the large size order, do you should one expect that the growth will be disproportionate in 26? Given the size of the business and the order size which you have mentioned?
Himanshu Patel
Yes. That’s a fair expectation. Yes, absolutely. Because a large part of the order is likely to be executed in FY26.
Resham Jain
So Kinam will become what size, let’s say in 26 and over two, three years. What is your expectation?
Himanshu Patel
I. I can probably give you some num. Some indicative numbers for FY26. We are expecting. Expecting it to cross 200 crores.
Resham Jain
Okay. And maintaining the margin trajectory which you have done in the past.
Himanshu Patel
That’s correct.
Resham Jain
Okay. Okay, understood. So. So just one final last one. Just comprehending what you mentioned in your previous remarks as well. The overall revenue then 15, 17%. If I just take the 200 crores from Kinam then the base business growth will be like 10 12% only. Is that right understanding or maybe am I reading this wrong?
Himanshu Patel
I don’t think your reading is wrong. But I guess we as management would like to be conservative and over perform.
Resham Jain
Understood. Thank you for answering all the questions and all the best. Thank you.
Himanshu Patel
Thank you.
Operator
Thank you. Participants who wish to ask a question may press the and one at this time. The next question is from the line of Raj Patel from IK Securities. You may proceed.
Raj Patel
Hello. Just two quick question from my side. First one, what could be the total addressable market for the heat transfer equipment and what is the share of hell glass cost in that market?
Himanshu Patel
I think the total addressable size of the heat exchanger business is a little difficult to quantify because like I said earlier it’s a highly fragmented industry. But we feel that it’s a market of anywhere close to the 1500 crore mark give or take a couple of hundred crores and out of that with a revenue of around 122 this year we are about 10% of the market.
Raj Patel
Okay, and my next question is with repeated order book of rupees 575.1 crore as of March 2024. So what is the expected timeline for the order execution and how is this alignment with the company’s capacity and resources, planning as well as. Can you provide the breakdown of Capex for the upcoming year?
Naveen Kandpal
Yeah, so the order book number of 575 crores is as on 31st of March. And you know as we speak today we have already, you know even net of sales we have increased the order book number by close to 100 crores. So like I said earlier it gives us a visibility of around six months. And you know this is around six months for the India business and about seven months visibility for the international business in terms of the capacity with very minimal small capexes which are more like maintenance capex in nature we should be able to cater to all of this, all of these orders.
Raj Patel
Okay, thank you for the opportunity.
Operator
Thank you. The next question is from the line of Sanjay, an individual investor. You may proceed.
Unidentified Participant
Good evening and congratulations for the good quarter. Am I audible?
Himanshu Patel
Yes you are. Yes you are.
Unidentified Participant
Am I audible?
Himanshu Patel
Yes you are. Yes you are audible.
Unidentified Participant
Yeah. Good evening and congratulations for the good quarter. My question is slightly different. This is a suggestion as well and the company also may be in the process. I just wanted to know whether the our company is exploring possibilities of expanding business in the.
Unidentified Participant
Aerospace, defense, power and nuclear sector where filtration and heat exchanging activities could have a marked impact on expanding our business?
Himanshu Patel
Yeah, that’s a very interesting question. As a part of our filtration and drying and exotic material business, we very frequently execute engineer to order equipment. And in the past we have also executed orders for the defense sector in terms of having supplied decompression chambers for the Indian Navy. So this is already a tech sector that we have dabbled in and it is obviously also a sector which is interesting for us.
Unidentified Participant
Yeah. And is there any confirmed orders with regard to the defense or ongoing orders with regard to the defense and power sector, even nuclear at the moment?
Himanshu Patel
Yeah, sure. So at the moment in our order book we don’t have any orders from defense or nuclear.
Unidentified Participant
Okay. But is the company trying to engage in garnering business from these activities?
Himanshu Patel
Yes, these sectors are interesting for us
Unidentified Participant
Because this is a sunrise is this one. And the government budget is itself is so large, getting a small profit can expand our business multifold.
Himanshu Patel
Yes, absolutely.
Unidentified Participant
And second question would be, based on your assumptions and guidance, is it possible that our company profit may touch the coveted 100 crore march this year net profit?
Himanshu Patel
I think we are working hard to touch that number. Yes, we are definitely going to make a deal.
Unidentified Participant
It will be a milestone if it happens.
Himanshu Patel
Yes, absolutely. We are. We are hopeful of achieving that very soon.
Unidentified Participant
Thank you. Thank you so much.
Himanshu Patel
Thank you.
Operator
Thank you. The next question is a follow up question from the line of Resham Jain from DSP Asset Manager. You may proceed.
Resham Jain
Yeah. Hi. Thanks for taking my question again. So you mentioned in your opening remarks that you have put up a new RD facility at Anand. If you can just share your thoughts, what are you planning to do there? And are we getting into any other new line of business as well through that particular facility?
Himanshu Patel
Yes. So the facility is actually a center of excellence for glass lining. So it involves multiple aspects starting from research and fundamental research and. Development around glass, also new product development, assisting the Thalitec team with rapid prototyping and stuff like that. So it’s an integrated facility which can not only do R and D, but also for production of. For state of the art production of the glass itself. And with that capability, obviously the ultimate end goal is to open doors to entirely new industries in the material space. But that is not something that is short term. But obviously that is the long term objective.
Resham Jain
Okay, but this facility or excellence center will not increase your overall capacity, is that correct? It is just to add on some of the newer areas. How should one read about this? Like this investment, how is that going to help in the overall company from revenue perspective?
Himanshu Patel
So while it may not have a direct immediate impact on revenues, I think it has two or three longer term impacts. One is of course by improved products and improved material research. We are expecting to improve the quality of product and also improve the ultimate realization. It is also a demonstration for our customers of our passion for high quality products and continued research and development which will keep us ahead of the rest, which is really what is required. This is also a great platform for us to talk to potential customers and also helps us considerably in convincing customers of our capabilities both in terms of the glass itself as well as the overall equipment.
Resham Jain
Understood? Very clear. Thank you. Okay, yeah,
Himanshu Patel
Go ahead.
Unidentified Speaker
So there is also one more. There are multiple things that we are looking at. So a lot of innovation at Thalitec was happening in Germany. This center also helps in doing some of the research development work in India. So the team is taking the facilities that we have developed here, help of the facilities that we have developed here and we are jointly developing specific products or innovations for the Indian market. So these are all long term things that will come into play. I mean, not. Not really tangible in that sense, but they are very, very important for the long term sustainability of business.
Resham Jain
Understood? Understood. Very clear. Thank you.
Operator
Thank you. The next question is for. Follow up question from the line of Vaibhav Khandelwal from Labrun Capital. You may proceed.
Vibhav Khandelwal
Yeah, thank you. Just to follow up from a previous question, I think you mentioned that you know in India you’re seeing a good trend of investments being happening. My assumption is a lot of it is just global supply chain diversification. Wanted to understand from your conversations with clients etc. Do you not see any trends of that sort of in internationally, in Europe for example or is it more India focused only? I’m, I’m sorry I don’t understand your question fully. Could you please try explaining the, or rather restating the question? Yeah, my question is in the previous answer I think you mentioned if I remember correctly that a large trend you’re seeing, a good trend that you’re seeing is that in India you’re seeing increased investment in pharma given global supply chain diversification and more capacity being added. My question is are you seeing similar trends in Europe also or if this theme or the large capex, is it more India focused only?
Himanshu Patel
I think what we are also seeing is more frequently larger projects in Europe. Now the exact nature of those projects, you know what, what molecules, you know what is a customer strategy behind making those investments, those are things that we often don’t have complete clarity on. But yes, we are seeing a larger share of project orders within our inquiry pipeline and also in our order book. Now this is with regards to your.
Vibhav Khandelwal
Yeah, got it also. Yeah. And one more question, could you please give me some sense on what’s the typical maintenance capex that we typically need to undertake on a statistic basis on a console level.
Naveen Kandpal
So I think we normally end spend roughly in the region. We currently have four plants in India and the fifth plant in Germany. In the group between the five plants the capex maintenance capex for the year ranges between 12 to 15 crores.
Vibhav Khandelwal
All right. Okay. That’s all. Thank you so much.
Operator
Thank you. The next question is from the line of Ajay Surya from Nivesha. You may proceed.
Ajay Surya
Thanks for the opportunity and congratulations on the performance which has been really encouraging. Sir, if my understanding is right, from what we understand the replacement cycle is slightly faster in glass lined equipment might be like four or five years compared to ANF or anfd. And if. Look at our end industry like majorly being chemicals and pharma which had a large scale capex cycle during and post Covid. So when we say that the order inquiry and conversion cycle is improving, so wanted to make more sense on whether is it the replacement demand for these equipment which has started to kick in or are we seeing is it like new equipment being installed? And for the replacement demand, when do we see if not currently then when do we see the replacement demand kicking in which can maybe yield better growth for the company.
Himanshu Patel
So I think the replacement demand is ongoing, continuous it doesn’t it? But even in within the replacement demand it is not pure replacement as can be identified as replacement. Because typically a customer who had, let’s say a 5,000 liter reactor when he replaces it with the expansion in his own business typically places an order for maybe a 6,000 or 8,000 liter reactor and so on. So even a replacement demand for us is additional investment from the customer. So from that perspective replacement demand is ongoing. I think the capex demand is more related to the capacity utilization of each of these customers and that is driven what we typically consider as capex is when there is an additional investment to enhance capacities we are seeing. Right. So our predominant focus from a business development perspective is to focus on the CapEx demand because the replacement demand to a large extent takes care of itself as far as we are concerned.
Ajay Surya
Got it. So one more question on the competition. So are we seeing things improving at the overall industry level or is it that we have outbid our competition? And if you can give more light on the on ground business environment like if any, like there are new competition coming in last couple of years. So has any player moved out or been struggling in the industry which is benefiting to healthy order conversion for H and D? Or is it that things are improving both at the industry level?
Himanshu Patel
So I would say largely speaking things have improved overall at an industry level. And we would also like to believe that our very strong focus on customer engagement, new value added products, introducing Phalitec technologies for example in India and of course continuously improving on quality and price has helped. Helped us gain a little bit more market share over the last couple of quarters. It has actually fructified into. Into a larger market share over the last two or three quarters. Other than that I think as far as number of competitors and competitive intensity is concerned largely we are still dealing with the same number of players as we have had over the last two or three years. We had a couple of small guys entering the market but at the same time also you know supposedly one company going out of regular production. So largely the competitive intensity has remained the same.
Ajay Surya
Got it sir. And sir, one final question. In the previous commentary and guidance as well our total manufacturing facility can achieve maybe a peak revenue of 15 crore. 1500 crore as guided by the management. So are we looking at any short term guideline for capex or is it still.
Naveen Kandpal
I think, sorry, I think the 1500 crore number was with respect to the total addressable market for the heat exchanger business excluding oil and gas. So I don’t think that was a indication of the value of supplies based on our current capacity. To answer your question specifically we do not have any large capex lined up for this year.
Ajay Surya
And sir, what can be the peak revenue potential for all the five plants like the four?
Naveen Kandpal
Very difficult to answer that question because value of revenue or value of turnover is dependent on size of equipment, material of construction. Just to give an example if you were to do an equipment in stainless steel SS316 vis a vis an equipment made out of hestalloy which is an exotic alloy the value difference could be 4x. So it’s. You know, so it’s difficult to put a value number to it. To put it differently. We are currently operating on an awaited average I would say at around 75% capacity levels.
Ajay Surya
Okay, okay. That gives much more sense. All the very much for future.
Naveen Kandpal
Thanks. Thank you.
Operator
Thank you. The next question is from the line of Sahil Vora from M and S associates. You may proceed.
Unidentified Participant
Hello sir. Thank you for the opportunity. I had a couple of questions. So firstly I wanted to understand why the filtration, drying and other equipment are showing decline in revenue and what measures are taken to increase their sales.
Himanshu Patel
Yeah, hi. I gave exactly the same answer a couple of minutes ago. But I’ll go at it again. As we had indicated in our last earnings call, the first two quarters of the year were slightly subdued for both the FND and GLE businesses in India. We did see a pickup in the order book during the last two quarters, largely during the last quarter. And as you know, our cycle time is somewhere in the 16 week period. So a lot of those orders which were actually booked did not get dispatched and hence did not get booked as revenue. So while we did do quite well on the order booking for the year, the order booking did recover eventually, but it did not translate into sales or revenue. And as a result, like I said, we have a fairly high order book as of end of 31st of March. And so this the fact that we have a little over six months of visibility for the India FND business. I’m fairly confident that the top line will recover.
Unidentified Participant
Understood. Thank you for reiterating, sir. My next question is. I don’t know if this is already asked but I was busy with some other things. But how much revenue growth will be provided by the manufacturing facility at Anand and how much capex are you planning over this?
Naveen Kandpal
We do not have any major capex planned for any of our plants including at Anand. The overall growth that we estimate for the business, as I said in the high teens between 16 to 20%.
Unidentified Participant
Okay, sir, that sounds good. Thank you. And all the best.
Himanshu Patel
Thank you.
Operator
Thank you. The next question is from the line of Veer Rajesh Vadare from Navisha Investment Advisors. You may proceed. Hello Mr. Veer.
Veer Rajesh Vdare
Hello.
Operator
Yes sir, you may proceed with your question.
Veer Rajesh Vdare
Good evening everyone. So as you mentioned that Kinam has initiated supplies of their large oil and gas order. So can you quantify the size of order?
Naveen Kandpal
The size of the order is in excess of 65 crores. 60 crores. Sorry.
Veer Rajesh Vdare
A. And how much has been recognized in QQ4 or how much has been supplied till now?
Naveen Kandpal
I think roughly about 25% has been supplied so far.
Veer Rajesh Vdare
Okay. And can you. Guide growth guidance for Thalatech on standalone basis.
Himanshu Patel
I think Ala referred to it a little earlier. The growth for Thalitec is estimated at around 15% for the coming year with EBITDA margin in the 14 to 15% range.
Veer Rajesh Vdare
Okay. And this year we saw major like a change in product mix and major revenue was coming from pharma side. Like in Q3 to 45% was from pharma. In Q4, 66% was from there. So can we expect this product mix to continue in future?
Himanshu Patel
It’s difficult to say. We would actually expect the other industry segments also to pick up. Going forward. With Pharma remaining strong, we would hope that the other industry segments also pick up so that there is a relative parity between all the sectors between pharma and let’s say the rest of the chemical business.
Veer Rajesh Vdare
And margins are similar around all the segments like pharma, chemical and other.
Himanshu Patel
Yes, broadly similar. Yes, broadly similar.
Veer Rajesh Vdare
Okay. And my major. The questions were asked. So like my questions are over.
Himanshu Patel
Thank you.
Veer Rajesh Vdare
Thank you. All the very best.
Operator
Thank you. The next question is from the line of Shati Jadav from Wealth Culture. You may proceed.
Unidentified Participant
So my question is that your top 10 customers account around 35% total revenue in Glassland and 44% in filtration. It was in FY23. So in 2026 who are your top 10 clientsmen? Can you.
Himanshu Patel
No, it would not be possible for us to name it on a forum like this. In any case the top 10 customers change virtually every half year because every half year the customers are different. So while we, the top 10 constitute a certain percentage every every p for every period, the customers don’t remain constant in that segment in that. What should I say in that numbering list.
Unidentified Participant
So in the orders order book of 575 crores, can you only name from which industry are the major majority orders coming from?
Naveen Kandpal
The primary majority is coming from Pharma.
Unidentified Participant
Okay, thanks.
Operator
Thank you. The next question is from the line of Isha Murthy from I am Capital. You may proceed.
Unidentified Participant
Hello. So my question is like what operation and strategic synergies are anticipated from the proposed amalgamation with Kinam Enterprise and how will this impact the company’s product offering and market reach?
Himanshu Patel
I think. I think we had. Spoken about this at the time of disclosing the transaction itself. This is a considerable increase in our breadth of product range that we supply to our customers. There is a very large overlap of customers which brings with it a lot of synergy in business development as well as in terms of enhancing our customer relationships. We are already seeing a huge benefit arising when one goes to a customer with a very wide range of products, including filtration, drying, glass line equipment, and now heat transfer equipment. It definitely adds a lot of value to our overall relationships while cutting down on our overall business development costs. And this is really what we are hoping to achieve in the long run. On the production side also, there are lots of benefits which I think we had mentioned was with respect to. There is a lot of overlap in terms of the kind of processes that we employ for manufacturing these equipment, as well as in some of the vendors that we use for the various equipments that we manufacture. So there is a considerable element of synergy that we are witnessing as we move forward.
Unidentified Participant
Okay. Also I wanted to ask you, like, what is the average selling price of heat transfer equipment as compared to like other competitors of yours?
Himanshu Patel
Difficult to answer that because I don’t know what the competitors are selling and what they are selling. To be very honest. We at Kinam, we sell equipment based on five or six different technologies, different platforms. There is no competitor in India which has all of these platforms available on any. Under any one single roof. So to that extent, what we offer is a solution, whereas most of our competition basically offer a singular product. So really what we do and what our competition currently does in the market is not really comparable.
Unidentified Participant
Okay, thank you.
Operator
Thank you. The next question is from the line of Sahil Singh from SK Investments. You may proceed.
Unidentified Participant
Yeah, hi sir. Am I audible?
Himanshu Patel
Yes, you are.
Unidentified Participant
Yeah. Hi, sir. Congratulations on the great number. Sir, I had a couple of questions. So firstly, sir, I wanted to ask how is the integration of the theletic advanced glass lining technology like has been going on for hle? How has it been the response from India as well as globally? If you could help with that.
Himanshu Patel
Yeah. So globally, Solatec has been a very successful player in some of the most challenging markets for our products like Germany, Austria. Switzerland, they have been the technology leaders for many, many years now. Those same technologies are now, a lot of those same technologies are now fully indigenized and also being offered to the customer with a very positive response. And we also have a very encouraging order book of Thundertech range of products.
Unidentified Participant
All right, sir. And so like we have done an acquisition like with CleanMax Anchorage. So how do you see that contributing us in the revenues and how sustainable is it like, is it like for the goal of cost optimizing or what was the strategy behind it?
Himanshu Patel
Okay, so this is not an acquisition. This is actually more a joint venture where our stake is going to be at 26%. This is for a captive renewable energy platform where our current energy which we buy from the grid will be replaced by renewable energy. So basically the advantage of this will be reflected in the form of lower energy costs going forward. So this is more in the nature of a backward integration for one of our critical cost inputs. So that’s how it’s going to play out. The total, as I said, we are only a 26% stake. The operating partner is the CleanMax Group who will be generating and supplying the entire energy generated to us at Anand.
Unidentified Participant
All right, sir, any guidance for the coming quarters? That’s my last question, if that could help.
Himanshu Patel
As we said, we are looking to obviously keep improving both in terms of the product offering to the customers as well as in terms of the revenues and profitability to our investors.
Unidentified Participant
All right, that’s all from mine. Congratulations once again. All the best.
Himanshu Patel
Thank you. Thanks very much.
Naveen Kandpal
Thank you.
Operator
Thank you. The next question is from the line of Sanjay, an individual investor. You may proceed.
Unidentified Participant
Yeah, thanks for the opportunity. I just wanted to know. On March 28th and 29th, approximately the directors had purchased about 60,500 shares from the market. However, this. This intimation has not been submitted to the exchanges. If this was known actually investors would have been very well would have welcomed this move and would have created more goodwill for the company. Why as on today, the intimation has not been submitted. That is the first one.
And second question is this oil and gas sector, what you have entered into, that is for PSU or private place?
Unidentified Participant
Even in this space there is a huge opportunity. So is a company looking aggressively to expand the business in this sector?
Himanshu Patel
Okay. With respect to the acquisition of shares by the promoter family, the due intimation to the stock exchange have been given. So you may please check with the intimations on the stock issue. It has duly been. It’s not been published on the. In the. So we have made. We have made the submissions. I think for it to be made public or otherwise is actually the stock exchanges for the negative. But our submissions I can assure you have been made duly in time.
Unidentified Participant
And what is the percentage by how much has it gone up now? Because this would have.
Himanshu Patel
No, this doesn’t have any percentage. It’s. It’s in a few bips. So it’s. Exactly. It’s not material in that respect. Yeah, no, no it’s. Yeah, it’s not material. No, it’s not material in that respect.
Unidentified Participant
Compared with the market scenario and price being at a lackluster level, this would have really been welcome to the market.
Himanshu Patel
As I said the intent was not to not. It didn’t have anything to do with the market. It was just more as a.
Unidentified Participant
It would have been welcomed. That’s what means intended because.
Himanshu Patel
Correct. It was intended as a show of confidence from the. That was the.
Unidentified Participant
Congratulations. I would most welcome this and this oil and gas. What is the oil and gas side?
Himanshu Patel
This is basically supplied to a very large joint venture which is a private public participation project. Very large project. And this will pave the way for further orders because this establishes the track record which is very critical in this industry.
Unidentified Participant
Okay. Are you looking to be in touch with this PSU giants in the oil sector?
Himanshu Patel
Oh yes, of course. Sure. Most certainly. Most certainly.
Unidentified Participant
Thanks all the very best and thanks for supporting.
Himanshu Patel
Thanks very much.
Operator
Thank you. In the interest of time. That was the last question. I now hand the conference over to the management for the closing comments. Over to you, sir.
Himanshu Patel
Quarter four 2025 reflects what is possible when strategic clarity meets disciplined execution. As India’s process industry surge ahead, we at Agile Glasscote are well positioned to play a meaningful role in enabling their successes. I thank all of you for taking our time to attend this earning call. Have a good day. Thank you.
Operator
Thank you. On behalf of HLE Glass Code limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.