Indo Farm Equipment Limited (NSE: INDOFARM) Q1 2026 Earnings Call dated Aug. 21, 2025
Corporate Participants:
Unidentified Speaker
RS Khadwalia — Chairman and MD
SM Singla — Finance Head
Anshul Khadwalia — Whole Time Director
Analysts:
Unidentified Participant
Manan Shah — Analyst
Sanchita Sood — Analyst
Poojan Shah — Analyst
Pritesh — Analyst
Amit Agarwal — Analyst
Mayank Agarwal — Analyst
Rahul — Analyst
Dipanshu Suman — Analyst
Manik Gautam — Analyst
Kapil Ahuja — Analyst
Dolly Chaudhary — Analyst
Mohammad — Analyst
Presentation:
operator
Good day everyone and welcome to the earnings call of Indo Farm Equipment Limited for the quarter ended the 31st day, 30 June 2025. The purpose of today’s call is to address investor questions and discuss the company’s performance during the past quarter. Please note that this call is being recorded and may include forward looking statements based on current expectations. These statements involve risks and uncertainties that could cause actual results to differ materially. The company undertakes no obligation to update any such forward looking statement except as required by law. We encourage listeners to exercise caution and not not place undue reliance on these statements.
Representing Interfarm Today we have Mr. R.S. karwalia, Chairman and Managing Director, Mr. Anshul Kadwalia, Whole Time Director, Mr. S.M. singla, Finance Head, Mr. Varun Sharma, Chief Financial Officer and Ms. Navpreet Kaur, Company Secretary and Compliance Officer. Without further ado, I. I invite the management to share a brief overview of the company’s recent performance and strategic outlook. Thank you. And over to you.
RS Khadwalia — Chairman and MD
Thank you very much. Siddhi. Siddhi. Would you like to have this presentation first or I should start?
operator
Sir, you can start.
RS Khadwalia — Chairman and MD
Okay. Okay. Thank you very much. Good evening and welcome everyone to this earning conference call for discussing the results of Q1 ended June 25th. Along with me in today’s call we have our whole time Director Anshul Kadwalia, CFO Mr. Varun Sarma, Mr. Singla Finance Head and then Ms. Nko, Company Security and Compliance Officer. The company financial statement and the earning press release summarizing the performance of Q1FY26 has been circulated and uploaded in the stock exchange and on the company website also. I will take you. I’ll take you through some of the key highlight of our financial performance.
In the first quarter of FY26 on standalone basis our company has achieved revenue from operations of rupees 91.25 crore versus 69.55554 crore in corresponding quarter of 25 registering a growth of 31.23%. Standalone EBITDA has grown to 11.8 crore against 9.63 crore on Q on Q basis resisting a growth of 22.59%. However, EBITDA margin stood at 12.76 versus the 13.73 on the Q1Q basis. The slight reduction in EBITDA margin is on account of the increase in the employees cost and other expenses due to the recruitment of the additional manpower to achieve the planned business expansion. Expansion growth stand on PBT has grown to 639.18 lakhs against 33.3 6.59 lakhs on Q1Q basis resisting a growth of 89%.
It is due to growth in the operating revenue and reduction in time test cost. During the current quarter the crane revenue has grown to 53.04 crore against 38.89 crore in the last quarter as resisting a growth of around 36% and tractor revenue has grown 38.20 crore against the 30.64 crore resisting a growth of around around 24.6% on Q on Q basis. I would also like to update the progress of the new green project of the pick and carry crane for expansion of 3,600 additional capacity. The site preparation and retaining wall construction are in the progress bound front boundary bar is already completed.
The backside retaining valve which is made of RCC is near completion. The key vendor for the plant machinery and prefabricated sets construction already identified and finalized. Order for required machineries and equipment are being placed and estimated lead time for planted machinery will be around two to three months. Next is the tower cane technology tab. We have received the complete technology documentation now and very soon we are going to start the prototype development of this product. New product of fixed hour crane. So we are optimistic from the medium to long term prospects of the company Keeping in view the ongoing pick and carry crane capacity announcement and and widening the geographical presence by expanding dealer network in the new and existing territory both in crane and tech business.
Now I would request the moderator to open the call for the question answer session. Thank you very much.
Questions and Answers:
operator
Thank you so much, sir. Well, I request all the participants who wish to ask a question may please raise their hand and we’ll take questions one by one. So the first question will take from Mr. Manansha.
Manan Shah
Hi sir. Thank you for the opportunity and congratulations on decent set of numbers. Sir, along with the segment revenue, it will be great if you can provide the unit level data. Also that how many units were sold for the said revenue in terms of for the tractor and for the crane.
RS Khadwalia
This number of the last quarter the director number is 600 numbers. 600 numbers. Okay. And the crane number is 273.
Manan Shah
Okay, understood. And sir, we were looking to expand our dealer and distributor network for specifically for the tractor side. But based on the presentation it seems that we haven’t added any new dealers during the quarter. So where are we on that part?
RS Khadwalia
Look, we have already received the number of Lois and you know generally LOI will take little Time and you know, in this sector business some dealer are getting replaced also. Basically some dealer leave the business. Some. Some have some different kind of issues in the. Because these dealers are coming from generally from the ruler background. Okay. So there are some partnership dispute. Although we added some number but in ultimate number is not increased because we say take from the billing. How many dealers we are doing the billing. Okay, but it is. It is a number is increased.
Manan Shah
But we have a lot of loi is taken during this time. I think how many almost loi we have taken in the last quarter, sir.
RS Khadwalia
We have taken almost 20. Lois. Some of them are complete. Some of them are completing their showroom construction. Some are at the stage of hiring manpower and some are continuing their training at the head office. So in the next quarter we will probably see business from these 20 new dealers.
Manan Shah
Okay, understood. And due to the change in the emission norms there was some hike expected at the product level. Right? But based on the volume data that you shared, I think that it. It doesn’t seem that there has been any improvement in the realization for our products or hike that we’ve taken in our product.
RS Khadwalia
No last quarter because the stock was available with the dealers and old emission homes are continued. Okay. Okay. From July 1st, okay. This new emission norm we can sell the product only of the. With the new emission. And there is a change in crane only not in tetra. Okay. In. In some models it is gone from. From three to term five state and in some model the crane higher than 50 HP category there it was Trump four earlier and that is also going to term five. Okay. We. We are our. All the products are approved and.
Okay, okay. One is the first part is this second part. You little bit. You know, little bit slackness will come maybe one or two months. Okay. After that it will. It’ll. It’ll certainly because of the price increase and the rainy season. Because this. This change came at the rainy season. If the change would have come in the October festival month time or January, then situation would have been different. Then the effect would have been much less. Okay, but we are anyway we. We can expand the area because we were not in the whole of the country.
For us it doesn’t make any big. Difference because one of our large competitor, you know they guided some softness in sales because of this transition. But what you are saying is that we will not face any such issue since we were focused only on a very small market. And now as we are expanding our market, we should not face such an. Issue because we can. Our volume can compensate with the other area where we were not working.
Manan Shah
What sort of price hike will we have to take because of this change in emission norms?
RS Khadwalia
Price in some machine it is around 2.5 lakh to 3 lakh. And some machine may be 1 to 2 lakh.
Manan Shah
Okay, understood. And also I believe as per the earlier norms we were manufacturing the engine in house. And now we will be purchasing. Purchasing the engine from outside, right?
RS Khadwalia
Yeah, yeah, yeah.
Manan Shah
So will that lead to any compression in your gross margins or people to maintain?
RS Khadwalia
We. We don’t feel like this basically because whatever price we have increased, we have increase on account of the increase of the price of our input cost.
Manan Shah
Right?
RS Khadwalia
Because the engine we are paying little more. That’s why we are charging more.
Manan Shah
Understand?
RS Khadwalia
Yeah, yeah. We don’t feel maybe 0.5% here and there. It will be there, but not major.
Manan Shah
And any plans to develop the engine in house based on the new norms We.
RS Khadwalia
We are planning because the tecture is a little behind. Now actor is in term 3A for the bigger more than 50 hp category. If we. We have already started discussing with the boss, maybe we’ll upgrade to term five. Because in term five it become a common rail engine. So there the investment was more and we got so many models. I’m being. We thought when the Tecture emission will come then we’ll upgrade. Okay. Because the crane number is not very high numbers. Okay. So maybe we will do in future and we’ll keep the option because we have taken Karoskar engine also in this range and Aisha Volvo also.
Manan Shah
Okay. And by buying this engine from a third party, should that help in improving your working capital cycle?
RS Khadwalia
Overall sir, I think major impact will not come basically because I. I don’t feel that the major impact will come.
Manan Shah
So sir, is there any possibility or are there any levers or is the company working on improving its working capital cycle? Because our overall working capital cycle is very stretched.
RS Khadwalia
So we. We’ll definitely doing it basically because we are not adding any further working capital. And once volume increase it will. You will see this level will come very comfortable.
Manan Shah
Current working capital, increased revenue.
RS Khadwalia
Yes, yes, yes, yes. Or because of the key we have created so many variant in Tetra. Also you say it is a mistake or not a mistake. Basically in the past whatever we have done, but now we got the full bouquet of the product. Wherever we are going, no dealer can say that you don’t have the complete range. We have a complete range. We have already worked on this. Technically working is already done. Now it is a matter of increasing only Only it is the marketing. Okay. The cycle will definitely improve much better once this number increase in ketter and as well as in crane.
Manan Shah
So sir, internally any sort of number of days working capital site.
RS Khadwalia
Almost 150 level days. Yeah. Complete working rotation. Okay.
Manan Shah
But sir.
RS Khadwalia
Yes, yes. Yes. Yes. The number increase again. We are not going to add more volume in texture. More model. No variant. Okay. And we have done too much of backward integration. That has also added our this cost. Because we are a very backward integrated company. And comparable to other.
Manan Shah
Right?
RS Khadwalia
We are making all the fabrication all the hydraulics. Nobody making hydraulics in house. We are making all the hydraulic cylinder also winches. Also we got our own foundry. Also we have got our own sheet metal shop. All sheet metal of tractor. Even crane like bonnet. And all this is all done in house. Even all the fabrication of even tetra Also majority of component we are making in house. So that has involved. Because of that reason our the working capital cycle become quite long, Nick.
Manan Shah
I understand, sir. But the thing is that despite you know being so much backward integrated that impacting our working capital cycle. But ultimately it should have helped you in your margins then, right? Ultimately return on capital employed.
RS Khadwalia
Contribution. Overall contribution better competitive price. A big company like big. Big player. Like bigger player. Much bigger player. They are having such a large volume competitive price and still survive expense. It is only because of backward integration. TK backward indication kept working capital cycle. Once this number increase. And this number is going to increase. This year we have got Planning of almost 30% growth working capital. Working capital sufficient. Okay.
Manan Shah
Understood. Or HDFC bank or Baki banks. Or tie up to finance. So how is that progress? We have been able to sell through.
RS Khadwalia
That channel or no majority. Exactly. But now the majority business is going from them. More business than our nbfc. Okay.
Manan Shah
Or Hamara nbfc. Primarily equipment finance. Third party equipment be finance.
RS Khadwalia
We are financing only in the farm or old sector. Because my dealer is doing exchange business facilitate any brand of whole tractor. We are financing. Okay. Yeah.
operator
Answer. I would request you to get back in the queue please.
Manan Shah
Sure.
operator
Thank you. We’ll take the next question from Mr. Aditya. We’ll take the next question from Sanchita Sood.
Sanchita Sood
Hello. Am I audible?
RS Khadwalia
Yeah. Yeah. Very good evening.
Sanchita Sood
Good evening, Sir. Thank you for the opportunity. A couple of questions from my end. So sir, we saw single digit revenue growth from FY22 to FY25. So can I know what was the. Reason for such slow growth?
RS Khadwalia
Ma’, am, that time there were challenges of retail financing was a big Issue. And as far as growth, we are not getting growth in other business of crane where retail financing was not an issue. But there was a capacity constraint because of these two regions. We couldn’t increase our number in these years, those years. Okay. All right.
Sanchita Sood
And so my second question was that given that our current capacity utilization for tractors is pretty moderate at around 30%, how confident are we of the next. 2, 3, years growth?
RS Khadwalia
Ma’, am, we with this, this year we are planning a tentative growth of in sector 30 to 40%. It will support us. And at the same time we are expanding our crane business. The whole transmission, transmission, housing transmission, complete transmission is supplied by Tetra only. It’s a part of tractor backend of complete backend of tector. So that transmission is going to huge 4 hour expansion new project. Basically there the capacity will be 3,600. If we use this capacity also and enhance more more capacity. The sale of Tetra also 30, 40 growth which we are expecting.
So I think this will go up to around 60 utilization even in the in this coming next year. So within two years we, we are hopeful two to three years that we are going to utilize the full capacity of the tractor plant.
Sanchita Sood
Okay, so just to confirm, so at peak utilization, so tractor, our tractor facility, it can go up to 60%, is that correct?
RS Khadwalia
60% in next year, next 26, 27 financial year.
Sanchita Sood
Okay. All right, answer last question. So for tower cranes, by what year. Can we expect to start producing this and how much revenue can we expect from here?
RS Khadwalia
This technology document we recently took three days back our team has taken from the China. With that the whole documentation has come completed and technology papers. And now we are going to start the prototype in the body factory. Okay. So we expect it will take around three to four months to build up the first machine. Once the first machine is built up, then in the last quarter of this month we’ll see some, some commercial number maybe little number. But the next year it will certainly give us the numbers. Certainly give the number, maybe 200 numbers cranes in the first year and then gradually it will grow.
Sanchita Sood
Okay, all right, thank you so much.
RS Khadwalia
Thank you. Ma’. Am.
operator
Take the next question from Mr. Pin Shah.
Poojan Shah
No, I’m audible.
RS Khadwalia
Yes, yes please. Yeah.
Poojan Shah
My first question pertains to. As we have been expecting, we have already expanded our capacity from 1200 to 3600. So we’ll expand in Q3FA25. So first thought Mike, is that how much we have spent for the capex and total amount considering the first machine, the prototype and all that Stuff how much amount we are expecting to spend?
RS Khadwalia
We are expecting to to spend everything. I think the third by third quarter 70 cr around 70 crore it will be. It will be invested in the new plant, plant and machinery only because land is already acquired. Land is already us.
Poojan Shah
Okay, so land value will be around.
RS Khadwalia
Land value to be got at a concessional price Otherwise the land value is very high in B. It is the 30 acre area where we are putting a new plant.
Poojan Shah
Okay sir. So broader question. As of now capacity we have been expanding to 3x because to get a 3x capacity and to manage that is also a challenge altogether. So just wanted to understand your broad idea of how we get into this and like what confidence it gives to expand to 3x.
RS Khadwalia
We we are utilizing almost working on 100 capacity in our existing plant for the crane production. We can carry crane production. Therefore we decided rather we want to come Back to the 22 year back in this expansion business. But because of the land availability of land and it is we have taken from the government under special pricing. So now we got the land before this IPO and now we get the money also. In the meantime we try to negotiate good pricing with all our suppliers so that we can buy the all good machines at a better pricing and everything is finalized.
So therefore we are going to make capex. We are very sure that this kind of enhanced volume will be able to sell because our machines are better machine comparable to the available in the industry. Our machines are better. We have given better features. We remain pioneer in giving best feature in the industry. There was no one in the industry when we started the air brake system. So by putting air brake in the crane our machine become total safe machine and we always remain. When the industry was a 1210 machine. 121036 ton. We started with the 141055ft and then 161065ft height 2010 and then 85ft height like this.
Okay, we have done it everything and crane earlier we. You know we. Our plan was primarily for Tectra and the crane area was very small crane area. We are operating only in 4 acre of land. That was the limitation. That’s why we are putting a new plant and doing expansion. And earlier we are working only in the small area. Now once the we are able to start the new plant then we’ll. We’ll. We’ll expand our network across the country.
Poojan Shah
So sorry, broader question Total industry as of now for the grain. Right now. Second once it goes into the field so that I am just understanding demand. So can you give A broad thought on industry c Procure will that is more on the order lead or then the order comes into place.
RS Khadwalia
Exact data is not available basically but number competition basis the last year industry was around 15,000 plus numbers unit 15,000. 15,000 units A and the industry up at 202021 around 5,000. So because of the the infra is increasing the manpower availability is less and the usage of this crane equipment is multi purpose. So the demand of this crane will continue which I feel as a. This is my personal assessment. It will continue this way only. And next.
Poojan Shah
Yeah yeah Continue please continue.
RS Khadwalia
And and regarding when this is replaced. Yes replacing cycle in India is maybe little lengthy. Big hiring company, good hiring company may be selling the product in five years four year time. Other small hire maybe keep it ten year. Yeah okay. But any hirer who is coming in this business of hiring business after buying our first machine he is coming after every three months four months he’s buying another machine. Because a small fleet owner they are expanding their fleet. Now we are selling this machine across all the evening. Government Department from Defense, Indian Railway all the refinery NTPCs and to the private sector even the Reliance Jamnagar.
We have supplied many machines in the past. Bullet train project, metros Everywhere this machine is required and we are producing this complete range. There is a two competitor. One is a score construction company Number one company by the oldest company. Another one more company was also in Ariana based company. And we are the third company There is only three organized player in. Because of this we understand and establishing this product take a quite quite lengthy time. Because once you produce make a product and the entry level is quite stuff in this kind of product. We are hopeful the industry will grow.
And I think everyone can have the room to grow for four hours. It is a better because we are representing in only 15 area. 15 to 20% balance area is vacant for us. So we we can grow our business in all the areas. Our machine has gone to all the areas Because a one contractor is a Delhi based contractor or Chennigal based contractor. If he’s buying the machine then he’s selling. He is doing the project across the country. So our machine has gone everywhere. And I’ll tell you in north India we were having a very good market share.
Up to 40 to 50%. 50% market share we are commanding. So this shows the strength of our product.
Poojan Shah
Okay sir. So agar bot majority organized market. Massive team plays right now in terms of manufacturing. And so other than that do you feel Chinese cranes are also impacting in the industry because ultimately 7, 300 bana pare. And. So where. Where do it come from? 200, 300 number this year.
RS Khadwalia
This year we are planning 1400-1400 from existing plant by doing little change there. Okay. And new plant of 3600 we are in sunny. Okay, so like this. If you add total it become almost 5,000 and 5,000 become almost at the current level. If you don’t consider the growth it become around 30 plus market share. Okay. So we are confident that number one player is not having more interest in this business now. Because that is acquired by a European company, this Japanese company. And they are more focused on sector business.
Because Kubota is a agribusiness company only. Okay, so then the main player is. We are. We. We were giving a lot of focus on this business. We are hopeful that due to our product superiority also. So definitely we are going to have these numbers.
Poojan Shah
Yes, I so got it. But up just in industry the idea because but installed capacity expansion. And the player, the other player, how much capacity they have.
RS Khadwalia
Capacity that exactly. I don’t have that figure. What capacity they are having? I. I can’t tell. Basically.
Poojan Shah
So sir, broadly upon some. India in. Domestic demand will be domestic.
RS Khadwalia
I think nominal. Because these kind of concepts are used only in India. This machine is a pick and carry cream. Let me tell you. Maybe export is less than 5%. Neighboring countries like Bangladesh, Nepal and these south countries. Myanmar something in Kenya and all Africa. If some Indian contractor are working there, they are buying the machine and taking it there. Okay, next is yours. You ask about the Chinese competition. There is no competition of Chinese companies in this product. Because they are not making pick and carry crate. They are making pickering picking crane. That is making pickering that will pick from one side and at different angle they will put on the trailer.
So there you need one trailer. Okay. And one machine. And their machine generally start from 2010, 20, 25, 30 ton capacity. So their machine are quite expensive also. So therefore in this line hardly any competition. Absolutely no competition. And of course when we grow for the bigger machines go for bigger machine like we are making. Our company is making up to 35 ton only. When we go for 50 ton, 60 ton, 80 ton, 200 ton capacity machine there will face there will not going to make pick and carry crane. Here we are making pickering similar to Chinese.
This Sani XGMC on Zoom line D3 Chinese company working in the bigger cranes. Okay. They are also selling pretty good numbers. So that will be when we start making those product. Then we’ll have Competition for in those product. So let’s suppose unit price for the quarter specific Also. It’S a very difficult to understand the geographical breakup of the competition as well as the scenario of the industry. Sir, this industry has faced a very tough time. From 2010 to 2014 even 18. Because you can see the competition data also. Okay. Because the infra projects are not coming. The machine was very stagnant. It machines 3,000 to 5,000. It has taken almost seven, eight years. The number was 3,000 crane to 5,000 cranes. Okay. And when the infra increase after Covid situation change and. And this machine utilization increase. And now this machine the requirement is more and more. Therefore and that time 3, 4 player came. All the player closed down. Like in this business. JCB also came for the making of crane.
But they closed down in 2014-15. I think 16. They closed because the market was not increasing. And it was very high competition. And then the Mahindra also tried in this business Sonalika international sector also tried this business. Few player came and they closed down.
Poojan Shah
Thank you so much.
operator
Thank. We’ll take the next question from Mr. Pritesh.
Pritesh
Sir. Yes. Yeah. Sir, can you brief me about like light action construction as a full bouquet of construction equipment. Right.
RS Khadwalia
Okay. That pickup crane and the pickup and crane will be very large segment of of them. And tractor also.
Pritesh
Okay. So what is our plan if you want to break up our revenue. How does it look now? And how it will look two, three year down the line when you expand your building Cranes and other cranes, High rise cranes and other things. Can you just give me some ballpark figure that how the company will look like in two years to three years time.
RS Khadwalia
Of course initially we started with the tetra business only. But we in 20082009 we pured in this construction equipment. We came in construction equipment 20089 is it 8, 9. We started making construction equipment when big because we are facing challenge of retail financing in sector. Then we thought okay. Because transmission and engine that time complete. We are making in house. And to enhance our capacity utilization of tractor. Then we started this basically and this was making synergy. So in up to 2017 we are at not at par because we were located in tax exempted zone.
So crane business. We developed so many models. We done the precision and development of all these models. But up to 2017 our sale was around 30 crore in this business 1718 and the last year we done the sale of 220 to 25 crore. So this from tractor. From tractor.
Pritesh
From the crane Last Year you did how much?
RS Khadwalia
225 crore.
Pritesh
225 crore. Okay.
RS Khadwalia
Okay. So this business and this. This. We. We would have been done more numbers. But there is. We are doing the 100 working on the 100 capacity utilization. But actor of course we are having some challenges. We couldn’t increase the sale. And the last year if you take nectar number. This was 140. 141 crore. Okay. So this was even te volume become I think percentage by if you go 35, 35%. You can say 65% crane.
Pritesh
Okay.
RS Khadwalia
Oh, sorry. Okay. Last year 50. 55.93. Exactly. This is the crane and 44% detector.
Pritesh
55% is crane and 44% is.
RS Khadwalia
Okay. Just a minute. Just told. Sorry. 61.36 is a crane and 38.64 is a tractor.
Pritesh
Okay.
RS Khadwalia
Yeah. This the two year down the line. Because we are doing a substantial expansion in the crane business. The money which we are investing which we have you know raised in IPO. Our capacity will become almost 5,000 grain.
Pritesh
That is what is the revenue terms capacity 5,000 crane. How much percentage you will get to utilize?
RS Khadwalia
Maybe in the first year 26, 27. Year 2627 utilization will be something around 50. We are expecting in the new plant. But the old plant our utilization remain 100. Old plant capacity is around 1400. That will be complete. 1400 will make and out of new plant will operate on maybe 50%. 1800 grain more. 1800. 1400 plus 3000 crane. We are expecting in 2006. 7. Okay.
Pritesh
And in revenue terms what it will be revenue.
RS Khadwalia
You. You can take average cost of 25. 25 average cost. Average sales 25 lakh rupees.
Pritesh
Average sales 25 lakh rupees. So you are saying 25 lakh. So you will do 750 crore turnover from here crane itself.
RS Khadwalia
Sir, we are confident of 3000 members balance. You can calculate, sir. No.
Pritesh
3000. 3000 cranes and 25 lakh each means 750 crore turnover.
RS Khadwalia
Right? You can calculate, sir. Yeah.
Pritesh
Sorry.
RS Khadwalia
Yes, you can calculate. Sir. This will be the number. Okay.
Pritesh
And what will be the tractor revenue?
RS Khadwalia
Tractor. We. We are. This year. We are expecting a growth of 30 to 40% this year. Here. Yeah. This is the planning. And next we will try to grow. Because we got the complete range model available. Yeah.
Pritesh
How much you will go next year?
RS Khadwalia
Sir, next year figures around 30 to 40%.
Pritesh
Okay. And tractor volume was. Revenue was. Last year was how much?
RS Khadwalia
141 crore.
Pritesh
Okay. 14130 40% growth.
RS Khadwalia
We have recently signed up an agreement with the SDFCN Kotak. Okay. So retail financing support. So definitely we are selling a good product and competitive price. So we have done in the last quarter also the similar almost and the last year also.
Pritesh
Okay. Margin. Margin.
RS Khadwalia
Maybe 1% here and there. Basically because we are opening new markets and. But because new open market we have to give little discount also sometime.
Pritesh
Okay.
RS Khadwalia
In similar range. Okay. Yeah. Yes sir.
Pritesh
Thank you sir. Thank you. I’ll come in the queue.
RS Khadwalia
Okay.
operator
Thank you sir. We’ll take the Next question from Mr. Amit Agarwal.
Amit Agarwal
Hello. Am I audible?
RS Khadwalia
Yes. Yes. Hello.
Amit Agarwal
Yes sir. Yes sir. I just want to know the unit growth in terms of tractor sales. Both YOY and QQ.
RS Khadwalia
The Q1 of this financial year first quarter 600 number. So last year number was 471.
Amit Agarwal
Okay. And March quarter.
RS Khadwalia
March quarter was 779.
Amit Agarwal
Sir, and one more thing like. We are underutilizing this capacity of vector. And as you said that in next two, three years we’ll be utilizing majority of the capacity. So what do you think will be the major challenges that you’re going to face and you are currently facing and how you’re going to navigate this?
RS Khadwalia
Currently in the first few years we were facing the retail financing with a major bottleneck. Okay. And retail financing we have tied up with the two private bank which are the today nowadays leading bank. Because this generally the director retail financing business is done by the private bank or private NBFC. Only PSU bank doesn’t have more contribution in this. But now that two leading bank HDFC and Kotak both have signed MoU with us. So we are getting full support from them. In the area where the area is completely developed. Like Harana, Punjab, Gujarat and the new area we have to open up we have got owned NBFC company.
So we will take the support from that NBFC company. Therefore we are confident that we can grow our business 30, 40% this year. With this our capacity utilization will increase and balance. Once the new plant of the crane will come up there also there the demand of transmission which will be taken from the tractor plant. Certainly the capacity of the Tetra plant is going. Utilization is going to improve much more. Yeah.
Amit Agarwal
Sir, when did we sign this MOU with the SDSC and Kotak?
RS Khadwalia
We started in the. I think last year, last quarter of that 24. Okay. More than one year. Okay. Eight, nine months you can say. But it takes time. Some once you start signing MOU then they come. They See the dealership, they open the code it will take some time. You know. Still some code are being open of some dealer.
Amit Agarwal
Yeah. Okay. Thank you. Sir, this is from side.
operator
Thank you. Mayank Agarwal.
Mayank Agarwal
Am I audible? Yeah. Yeah. Hi. Thank you for the opportunity. My question is like how much of a percentage revenue is maintenance and post sales services and what would be your margin in that segment?
RS Khadwalia
You are asking for spray part division. Same for both the segment. Both the segment maintenance and post sales services margin. And the percentage of revenue it is. I’ll ask Mr. Singla. He can come back to you on this reply. Exactly. Because this calculation is not in front of me. But it is very less in tetra. Okay. A crane will check up.
Basically because it is quite less crane vector when we are calculating is less than thousand rupees. 1000 rupees per hectare as the. As a cost.
Mayank Agarwal
Okay. Okay. Warranty cost. Warranty and everything cost. And my next question is on dealer expansion. Like how many dealers are you planning to increase in FY26 and how much does it take time to for a dealer to pick up pace and bring in sales? Like how much sale can we expect on an average from mature dealer? I’ll ask Anul Because Anul is responsible for the marketing portion of the ani. Can you.
Can you reply these questions how much time dealer will take?
RS Khadwalia
Yes, sir. Sure. Sir. Currently we are operating with a mere 140 dealers which is only covering almost 10% of the country. So we have a lot of area yet to cover. Sir. We are taking a target of adding 80 new strong dealers in this financial year. Sir. The process from identifying a party then receiving the security issuing the loa loi and then further the loa is a process of almost 90 days once the party decides they want to start business. So for the dealer to full fledged come into its form with the right training of the manpower, the right penetration, the right demo activities is further another 90 to 120 days.
So I feel a dealer comes after the appointment of dealer and after completing all the mandatory work. It takes three to four months for the dealer to come in full action, sir.
Mayank Agarwal
Okay. And how much sale can like can we expect on average from one mature dealer, sir?
RS Khadwalia
Depending on area to area an average roughly around 6 to 7 units per month is a fair average. I have certain dealers doing more than 10 also and certain maintaining an average of 3 to 4 also. So average area allocate. But a dealer averaging 5 to anything between 6 to 7 numbers it becomes a profitable dealer, sir. So we need that kind of average.
Mayank Agarwal
Yes. Yes. Okay. And my last question is on like how are you planning to scale up Baruta financing division going forward?
SM Singla
Can I reply assume here?
RS Khadwalia
Yes sir. Please sir please.
SM Singla
Baruta Finance basically is a. Because we are opening up the new area in sector and we. I told you that 30 to 40 growth we are expecting new area. We have to go. We need the support of broader finance only. So all the new techno brought a finance will be done in the new area by product of finance only. Okay. Once the number came there these other other bankers will take the charge. Because initially maybe for the small number they not take the charge of that particular state. Our understanding is once you have reasonable numbers then we will start supporting your dealers there in that state.
We are going state by state. Okay. And then we. We have also started supporting our dealer that all old tractor will be financed by our company. Because our dealers they are doing the exchange business. They buy the old te and do the new director. So they are new old tech of any brand also being financed by our company. So with the old teacher this money IRR is also better. And the default is also very less. In the old sector there is a hardly any default. So like this will increase the broader finance business.
Mayank Agarwal
Okay. Thank you so much.
That was me for second.
operator
We’Ll take the next question from Mr. Rahul.
Rahul
So my question is In DRHP the. Crane realization is mentioned as a 25 lakhs per unit. However when we back calculated in FY25 figure that is a 40140 crores revenue per 11028 units. It comes around a 17 lakhs per grain in and we get. And can you share the details. Sales breakdown by the crane type and. Exact revenue contribution from the crane. And also share the train tractor price of the. For a better comparison.
RS Khadwalia
This. This revenue we have to check in DRHP DRP may be the future that 23. Okay. 17. 25 lakh. 25 lakh. I think we are not given 25 lakh. 25 lakh. Now we are. Now we are planning because there is a. We are putting in the new plant. We are putting two lines. One is four small crane that we call Hydra. Next is a new generation crane. We are making all new Jason Crane from 15 ton to 35 ton capacity. But this Hydra the. The old conventional crane we are making from 14 ton to again 2510.
If you’ll go new generation crane that there the price realization is higher. Therefore we told now that the realization in future once the new plant start Operational it is going to be around 25 lakh rupees average easily. So it. It can’t be. We are not written as something around the 25 lakh rupees. Rahul, there. There is some. Some mistake in study. Okay. I will check my. In historical figure. We. We are having only that. That year 17 lakh piece is.17 lakh. Around 17 lakh was the realization. 17.8 something. 17.89 was the realization in that year.
Next. Ma’. Am.
operator
Hello. Yeah. We’ll take the next question from Mr. Chin.
Dipanshu Suman
Hello.
operator
Yes sir. You’re audible.
Dipanshu Suman
Yes. Hi sir, this is from Satva Ventures.
RS Khadwalia
Yeah.
Dipanshu Suman
Basically nice to talk to you after so many days after ipo.
RS Khadwalia
Yeah.
Dipanshu Suman
So a few points what I wanted to understand. Now our business is on a much faster pace.
RS Khadwalia
Okay.
Dipanshu Suman
So when can we see the opening of the new plant? By when the exact the production will start for the new plant.
RS Khadwalia
We are. We are planning to complete by December this plant. And January we can start the tile production. Okay.
Dipanshu Suman
In this financial year do we expect any supply from the new plant?
RS Khadwalia
Certainly some numbers. But those number. Maybe it will take some trial time. That number will not be very high but around 30 growth. We are planning from the existing plant in the crane business.
Dipanshu Suman
Yes. So in the fourth quarter should we expect around 500 to 600 machines in the fourth quarter?
RS Khadwalia
Because you know sometimes some machine will have error. Some engineer are coming from the China. We are buying some machine from China.
Dipanshu Suman
No, no sir, I am not saying from the new plant. From the old plant with 1500 crane. What you are saying for the full year 14 to 1500 crane.
RS Khadwalia
Yeah. So in the fourth quarter I am expecting. Because fourth quarter is. Is usually our best quarter. So should we expect 500 to 600 in that quarter and say 900 for tractors? We, we. We. We overall figure overall in this year, whatever the Last year figure 1000 plus machine. All machines. So we are expecting around 35, 30% growth minimum from the old plant. Okay.
Dipanshu Suman
Okay. Understood, sir.
RS Khadwalia
Yeah. Yeah, yeah.
Dipanshu Suman
How is the market right now, sir? Because the first quarter for our competitor has been quite low. Although we have. Because our product range has also expanded. But how is the market right now? How do you expect the post monsoon kind of scenario? Should we expect a similar kind of 30, 35% growth? What you are saying? Because last year was also quite a low base. And in the fourth quarter we were in a very high shape. So the third fourth quarter should be on that high base also very high kind of growth.
RS Khadwalia
Look, the first quarter our growth was good. Basically this is almost 31 growth we have achieved in the first quarter of FY26. Okay. So this. This month, this quarter can be. The crane growth can be maybe 20, 25%. Little five 10% less. But that is going to record in the next quarters. Because the emission on change and because of very heavy range in North. So it can little affect 5, 10% in 1/4. But that will be recovered in the next quarter. Because the price is going to stabilize. Price is going to stabilize by the next quarter when the demand comes.
September, October is a season month and season month that the demand come and the rain stop. Yes. Because this time the season month is also coming earlier. Festivals are coming earlier.
Dipanshu Suman
Yes, yes. So that’s so. Okay, let’s see what the numbers are basically on this thing. Sir, once the new plant comes in initially should we because you mentioned that you have hired new employees. So should we expect some margin compression? Because in this quarter also some margin compression is there?
RS Khadwalia
No, that is we that team we are kept in marketing to expand the marketing not in the plant and the plant plant we are hopeful the plant cost is not going to increase because little bit whatever, you know, production we are increasing. It is not going to increase but in the marketing certainly we are kept some team for the considering the long term growth story.
Dipanshu Suman
Okay, so what kind of employees we have hired in the marketing? Sir, it is in. Is it in the crane or is it in the tractor side?
RS Khadwalia
In Techra also we have hired the employees for the dealer development area. Okay. And for crane we initially we were working only 15 to 20 area. But now we have appointed five journal manager across the country. So we want to start across the country because once the new plant become operational. So we should not have the marketing challenge. Okay.
Dipanshu Suman
Sir, one question on the biota nbfc.
RS Khadwalia
Yeah.
Dipanshu Suman
What kind of Hanji NPA and NNPA are we sitting as of now? How is the asset quality for us?
RS Khadwalia
Asset quality is the. The gross NPA is 4.28. Okay. And the net is net is 2 point around 2.9.
Dipanshu Suman
Okay, understood. Just to conclude sir, basically last year about365, 366 crores of total revenue. What we did so this year should we expect to touch 500 crore kind of number or. That is very ambitious.
RS Khadwalia
Ah, you can. We are.
Dipanshu Suman
Because the pricing has also increased. Sir. Because see right now sir, the crane machine pricing has also increased.
RS Khadwalia
Yeah, yeah, yeah. Pricing is 30 to 35. We are expecting.
Dipanshu Suman
But that 30, 35. What you are saying that is on the volume or it is on the. On the revenue side it will be.
RS Khadwalia
On the volume sector. Because there is hardly any big increase in the sector. There is a increase only in Tectra crane crane pricing. That is also in the crane prices. That is on the one side of below 50hp is a more increase. That’s a 49hp category one crane is which is quite popular. And higher crane. The increase is 1 to 2 lakh rupees. Only bigger cranes. Because bigger crane already on the term four engine. Term four to term five increases less. And the smaller crane were on trump three engine. From three to term five is a big gap.
The engine is totally electronic engine. So there is a more increase. That’s why this increase has come in the crane. So last year out of 365crores kind of revenue. What we did our first quarter was about 69.69crores. If I. If I remember. So generally we do. The first quarter is a 20% and 80% of the business comes. So according to that should we expect a 500 crore revenue in this FY26 as total. You can. You can add on the 30. 35 remainder. Whatever we done the last year. Please. That is a. That is the figure I want. Would like to share with you. Balances. You know will definitely type for much higher figures. But ultimately that is a more logical figure. And it will conservative. No. But I think basically the expectation should be that we should be able to reach to 4. Our expectation with the marketing is entirely different. It. But FY27. We should be at 800 crores.
Dipanshu Suman
Pardon?
RS Khadwalia
FY27 the next year. Because we have to do so large from the. From the new factory. So the next year should be 750 to 800 crores. Next year you can consider around 3000 plus cranes. Yes. And. And the techn growth is on again. 25 to 30% minimum. Okay. Okay. 750 is to 800. So that I think we should be. Able to meet this. We will be at that kind of targets estimates.
Dipanshu Suman
Thank you.
RS Khadwalia
Thank you. Thank you.
operator
Thank you sir. We’ll take the next question from Mr. Manik.
Manik Gautam
Thanks for the opportunity. Yeah. Yeah. Yeah. Audible. Hello. Yeah. H ello. Am I audible?
RS Khadwalia
Yes. Yes. Yes. You please
Manik Gautam
for the opportunity. So my first question is that. Are you saying that 25 lakh realization will get on the cranes from the new plant. And the present realization will continue for the existing plants. Is that the correct funding?
RS Khadwalia
Yes, almost correct. Because in the old new plant we are putting a separate line for the Higher HP cranes.
Manik Gautam
Yeah, understood. And sir, I’m still confused. Even though you answered on the working capital part. I’m still confused that in the previous calls and the. In the DRHP it was mentioned that if the. The cranes and the equipments are contributing to the higher inventory which is ultimately leading to the higher cash conversion cycle. But since we are doubling and rather tripling on the cranes sales. So I fail to understand how the working capital or rather the inventory will decrease going forward. Can you please throw some more color on this?
RS Khadwalia
We. We have not spoken crane. I think Tetra is basically. Tetra is more integrated, backward integrated shops, equipments. And it was explicitly mentioned that equipments and cranes are contributing.
Manik Gautam
So. Equipments. I understand. But once increasing the revenue and the capacity of show ultimately the working capital should increase, right?
RS Khadwalia
This will. This will. Pardon Mr. Manik, I. I would like to share with you because we have created more model of Tetras and our TE range is from 16hp to 100hp range. Okay. We were the few company that we are having complete range in four wheel drive Tetras also four wheel drive and four wheel drive tractor complete. We are making in house. We all the components front. Except even the big companies are not making in house. This we are making to keep ourselves in the race. Because now the four wheel drive tractor option is much more acceptable in the market.
We should have the complete range of product sometime. We are targeting the competition dealer. So this work we have already done, we have to spend only in marketing. If the number increase, this will drastically, you know, reduce our inventory. Because suppose in one component model, one size of model. We got so many type of transmission. We are made gears. We have to make forgings. But I’m just giving an example forging. They’ll tell sir, we’ll do the forging of 1500 number 2000 numbers. Maybe that particular gear I am using in two years 1500 is making for me to like those we stuck up.
Okay. And we created inventory. And another thing this. We have totally in house facility. From casting, from gear shop, from hydraulic shop, hydraulic components, all the machinings, fabrication shop, sheet metal shop. Everything is virtually done in house. And because of this it is our strength why we are doing it. Because the number one less if you go in the market to buy, we will become uncompetitive. We will become uncompetitive from the very first day.
Manik Gautam
Yeah, yeah, that part I get it. But. Okay. So to give a fair understanding can you give us the split between the equipments and the finished products? That is Tractors in the inventory that we have as of date.
RS Khadwalia
That figure is exactly not having with me. Now basically we can share with you. You can share the number with the fin portal and our CFO will share this figure with you.
Manik Gautam
I’m asking this question because if there are more of tractors in our inventory and since the emission norms have changed so is there any wide possibility of writing down those engines?
SM Singla
First, there is no change in the emission norm in Tesla. Okay. And next is that crane grain? There is. We have not produced more crane because in the last month we started producing only the term five cranes, not from four. So we don’t have any stock of the crane and of the old emission homes.
Manik Gautam
All right, all right, understood. And I was going through the expense line items where I see that power cost to sales, employee cost of sales are almost double to that of our peers. So how is that going to shape going forward? With the increased utilization, are we going to be close to our competitors or. How will it be in power cost?
SM Singla
Yeah, bar cost and employee cost. Okay. Employees cost is because of the low volume which is definitely. Once we increase the volume in the ratio we are not going to increase the employees. So it will come drastically come down. And the power cost is because of backward integration. We were the foundry, we have a fabrication, we got all soap in house. So that’s why the work power cost is little more. Okay. Therefore our raw material cost is little. If you compare the raw material cost is less because we are drying basic raw material.
Manik Gautam
All right, understood. And coming to the next question, sir, in cranes we have, we had a capacity of 1 to 80 cranes a month, a year. But you are saying that in this year we can even do 14, 15 here, 1500 from the existing capacity. So how is that, how is it going to happen? And will we need to do do any bottlenecking capex for this?
SM Singla
No, no, Capex is done. We have already done some capex already in this area and we are expecting that around 1400-5, 1500 grain we can produce here in this plant. Okay. Some area we are utilizing of vector. Some facility we are utilizing from tractor because in the sector there is a machinery is also available and some space is also available. Okay.
Manik Gautam
All right sir, I’ll follow back in the cloud.
RS Khadwalia
Thank you.
operator
Thank you sir. And if you have any question you can drop us an email on our irid and we would be happy to revert to that. For now we’ll take the next question from Mr. Kapil Ahuja.
Kapil Ahuja
Yeah, Am I audible now?
operator
Yes.
RS Khadwalia
Yeah. Yeah.
Kapil Ahuja
What is the total debt that we. Are having right now?
RS Khadwalia
As of today the standalone basis around 100 cr. Okay. And consolidated basis including the NBFC around 165, sir.
Kapil Ahuja
On standard. On basis. What is the cost of the debt.
RS Khadwalia
For long term and shortterm borrowings around 9%. 9% for long. For sure. For short term. Yeah. And so regarding the Barota finance. So what are the You. You must be taking measures to reduce the NPAs because. So you have. Have you got the whole structure done to reduce to minimize the this the NPS and. Yes, yes we are. We are doing it. And this year for NBFC 120 days. Next year is 90 days. Now March 90 days. We are calculating on 90 days basis only. Already we have started calculating on 90 days basis.
Kapil Ahuja
Great sir.
Best of luck sir. Thank you. Thank you. Thank you sir.
operator
We’ll take the next question from Dolly Chaudhary.
Dolly Chaudhary
Hi sir. Thank you for the opportunity.
RS Khadwalia
Yeah. Thank you.
Dolly Chaudhary
So sir, I had this question. So in Cranes division North India presence Pan India presence increase. So if you can throw some light last quarter specifically expand.
RS Khadwalia
We we are primarily working in the north. Although my Subam Karbalaji look after this business. But he’s away to China this time because he has gone for the tower cane technology transfer papers. He has gone there. He’ll be back tomorrow. North India we are doing Harana, Punjab, HP Chandigarh. This part we are doing very well. Okay. But now in some part like Tamil Nadu some dealers were started and Telangana one dealer started. Bangalore, one dealer started. Those dealers are started buying. And now to support them we have appointed a large team of Service also around 45 people there in service earlier up to last year we have got 18.
18. 17. 18 people in service and around 20 people in sales. And now we are almost 40, 45% in sales also. So our staff has gone. Sales and service staff has gone around 90 in the crane. And we have appointed very senior people from one of the leading company competition company. They are the general manager. Basically we have divided the whole of the country in five zone. And every zone is headed by a general manager. So they started working there, started appointing dealer. We have recently appointed dealer in Patna. We had started there was one deal in Odisha.
We had appointed one more deal in Odisha. One deal in Jharkhand, one deal in Kolkata. So we we started appointing dealers so that we’ll have the reach for sales and service everywhere across the country. So we are very hopeful because we are expanding our new capacity in the crane. Division. Okay. We started and director because I already started getting the finance support from HDFC and Kotak in Trekley also we have taken a lot of. Loisurgi has already spoken to you. I think in this call that we have taken around 20 plus. This letter of intent is already Shoot.
We are expecting a around 80. 80 dealers in this year. Should be additional operations. Okay.
Dolly Chaudhary
Okay. So if you can also tell about like in North India, where we do have a good presence already. So what would be pricing comparative to the other competitors? And if we add a new area. For example, you mentioned Jharkhand or Tamil Nadu. What would be the pricing difference there?
RS Khadwalia
The existing area where we are popular, we are at par to almost competition. You can say Escort is little charging little more to us. Basically because that is the oldest company because of their name and all. And there is one more company in Faridabad comparable to that company. We are charging almost similar price. Maybe 50,000 plus minus 30,000 plus minus something. Okay. In some case up and down almost equal price. And some model it’s a premium also because those models we are the only proven having proven product like 2510 crane. The hydrocarian 25 ton crane basically.
Or the longer height 84, 84, 84, 84ft height boom height. In those product or for the new area we have given little flexibility. So that once you know, because this crane is more buying by the corporate or hiring companies and hiring company buy the machine again and again. Again they are expanding their fleet size. So there may be initially we have got capacity to give little low price. Also because we are a backward irrigated company. We are making many more component in house. So we can give little competitive prices also. So in the beginning, once somebody use the machine, then we’ll charge the price at par.
Dolly Chaudhary
So like maybe 1015 discount.
RS Khadwalia
No, no, no, no, no, no. It is maybe 5, 6%. 5, 6, 5 to 8%. Not so much. Okay. Is it for the first deal so that he’ll understand our machines. Okay.
Dolly Chaudhary
And just a like a follow up on the data that you provided before for the industry size of pick and carry cranes. Like it has grown from 3 to 4,000 to 15,000 as of now. So like going forward from here 3, 4 years going forward. What industry size are we expecting for from this?
RS Khadwalia
15,000 especially Ma’ am Crane. That crane is a big large size. But the crane which we are manufacturing and we are talking about that that is from 1210 to 3010 capacity. Although we are making up to 35 ton. So this range, the pick and carry range. We are expecting a good growth the way it has remained in the past. Because so many new projects are coming up. So many infra projects are coming up. And moreover the utilization of this machine is increasing day by day. Because earlier it is being started selling at the big cities.
Then it came to district level. Now it can subdivision the sea level. Now it is gone in any villages also. Because at any corner, any corner, any point people are take buying machine, keeping it there. And many activity which are done by labor nowadays shifted to this machine. Now in our factory also four, five machines are running in all the factory. You go there. Basically these machines you’ll find loading, unloading, all activity will be done by this machine. Like earlier what we are doing initially maybe 10 years back. Basically when the crane was not there in kept.
If the steel is coming, we are loading and loading by laborers. They are taking I think full one day, four or five laborer. Then they are unloading one ton, 10 plane attended 10 material from the truck. And now the crane is coming. They charge only 1000 rupees or 1500 rupees. And they’ll take 30 minutes and unload them this thing. And then similarly the shifting also shifting from one place to another place. So because of this I think this machine become very getting very very popular. Okay. Okay.
Dolly Chaudhary
And so what would be this number for tower cranes?
RS Khadwalia
Tower can ma’. Am. This. We. We are going to start the prototype this year. Maybe we are not considering any factoring any number in this. Whatever forecast we are making the next year definitely next next next financial definitely maybe around 200 numbers. We’ll try to sell minimum
Dolly Chaudhary
Be the industry size of like in volume terms for tower cranes.
RS Khadwalia
The last last year is almost 1,500. 1600 numbers calculate. Okay. But it will grow. It will grow. It will grow much faster. Because if you see the the tower gain kind of volume in China. Our company competition company, the kind of population they are having. And we have to go now vertical only. Basically because the land prices are getting very expensive. So if I’m going vertical this building construction then this demand will increase too much. So there the 50,000 plus cranes are sold even in China to our our industry is 1,500. So we we have got a good scope.
We are expecting that this is volume is going to increase. And earlier some more company were there. So last few years maybe five year, ten year back the days were not good for the tower crane. And many Chinese company used to supply. Now the Chinese companies out because of their transportation cost is Too much in this. And transportation cost is increased substantially. Okay. And the labor in China is also increasing. So now this product is not coming more from China. So it is. It is locally two player, three players are there. So this product is also having good potential.
Dolly Chaudhary
Answer is lastly you. As you know that you have done a defense order in picking carry as well. If you. I just wanted to know if we are currently also working on any defense project. Do we have something in pipeline?
RS Khadwalia
Madam defense. Any in tender is coming, we’ll participate. Basically it is on tender basis only. So I don’t have exact knowledge now because Subamji is looking after this area. He’s not here so. But anyway we are participating in all the tenders. We are supplying to all the corporate. Basically NTPC also we got a bigot big order last time. We are getting as and when the tender requirement is coming. We are quoting.
Dolly Chaudhary
Thank you for detailed answers. All the best.
RS Khadwalia
Thank you Ma’. Am.
operator
I will take the next question from Mr. Amit.
Amit Agarwal
Hello. Am I audible?
RS Khadwalia
Yes Amiji, audible. Great.
Amit Agarwal
So thank you. Thank you very much for the opportunity. So my first question is on the cranes. You know we are currently selling about thousand quantity of cranes and then we’re planning to scale up to 3,000. So for this incremental, you know 2,000 cranes that we plan to sell. Right. Which is almost, you know a significant jump from where we are. So what gives us confidence that we’ll be able to scale up so aggressively in a short period of time. And particularly I mean I’m looking to understand more on the sales and marketing side of it.
Like how many new dealers are we appointing And I think some of it was discussed earlier but I’m not very clear. Just looking to check how this 2000 incremental quantity, where it will come from. I think you are marketing, right?
RS Khadwalia
Right Sir, I’m in charge of practice. But whatever I have learned with Mr. Shubham I’d like to share and shed some light. Sir. Sir, so when we started this Crane Division, 2016 is when we got a fair playground, right? Sir, after that wherever we have gone we are only covering only 15 of the Indian territory. Rest of us is vacant for us. So if some contractor takes one crane and deputes it somewhere else is a different story. But we have only appointed dealers in 15 of the country. Sir, wherever we have gone we have a very very strong market share. Rather I’m talking about we are either in number one or number two position only. Sir. We command a very strong repeated order purchase even more than 60% right.
Sir, we have completely changed the fleets of many many hires because of the kind of product quality that we have. So we have not just been able to crack Indian Defense and Indian Railways. We have also been one of the. In. In our. In our very early years of operation we Supplied More than 350 machines to Reliance Jam Nagar refinery. Sir, we have supplied cranes to every big Indian corporate house. A lot of n. A lot of government companies also we’ve been able to supply cranes and we have got very positive response. So this the kind of strength and focus that we had given on.
On the crane and because the crane is such a product where the customer buys a new machine maybe sometimes in. In a few months also it is a very recurring purchase. The kind of customer feedback, the customer retention, the customer reoccurring nature. The kind of feedback that the corporates have given us is the con, is the confidence that we have. And sir, this market currently has less competition and the market is bound to grow. So you know with all this and India sir everyone India is banking on its infrastructure story at least for the next two to three decades.
So rather we feel that we are in this department at a very good time. So sir we feel and rather Indo Farm has been one of the early companies to be the product leader and innovator in this. Sir, we were the first company to launch SLI systems in crane. We were the first company to put. There is something called as the hydraulic outriggers which gives you more stability. We have the maximum oscillation. So we were able to make complete fireproof cranes. So sir we have been very strong with our product and now we feel that if we go and appoint dealers we need 65 more dealers to cover the territory.
We are very very confident that we’ll be able to get good market share. Sir, there are certain areas. I’ll share a small example with you. We developed a crane for Jodhpur mining belt called the Mining Master. So we were able to crack more than 30% market share in the first year itself. So because of our backward integration it gives us a lot of confidence to customize products as per the market needs. And sir, my. My. My brother sh is himself is very, very technically strong. He travels to every market to understand the needs of the market and works very quickly with the R and D to make a product as per the need.
So sir, I feel this. With all this we are confident and with the current market dynamics that crane is going to be a very good and strong business for us. And whatever numbers we have given. We should be able to achieve them, sir.
Amit Agarwal
Great. Thanks for the perspective. So. So just you know just to summarize. So 65 dealers is what will kind kind of want. It will take right for us to sell 2000 incremental quantity. Is that my understanding correct?
RS Khadwalia
Yes sir. Amitji, one more thing. You know if this dealer also if the business is coming from corporate also and and from the industry also. Because industry basically just sales funnels and egg dealer through a director. Majority dealers say maybe 20% directing 20 25%. 75% to 80% will come from dealers. Yes sir. From What I know 60 to 70% is coming from dealers. Only 20% comes from corporates and 10% comes from tenders and government orders.
Amit Agarwal
Right. So what is the number currently including service dealers?
RS Khadwalia
It is 15 plus 520 dealers sir. Currently some are exclusively service dealers also.
Amit Agarwal
20 basically 3×60 60 ads are incremental, right?
RS Khadwalia
Yes.
Amit Agarwal
Is that correct?
RS Khadwalia
That is correct, sir.
Amit Agarwal
Okay, perfect. And so Jabim dealers.
RS Khadwalia
They will be.
Amit Agarwal
Selling Escorts or some competition also, right? Is that correct?
RS Khadwalia
No, no, no. Exclusive dealer exclusion. All our dealers for tractors and cranes are both exclusive dealers, sir. We do not have any multibrand dealers at the moment, sir.
Amit Agarwal
Okay, but are I mean those dealers are selling cranes currently or they’re not selling cranes currently?
RS Khadwalia
Sir, I, I I’ll reply this. You know. Yes. Generally you know some. Some good employees of Escorts. Basically some at dealership of score. Some people are working there manage the money. Okay. Like this something it is mixed or somebody is selling the background of a company. Okay. Back roller company also. And like one dealer we appointed is a deal of JCB different different product dealership. Somebody Ajax dealer that is also a construction equipment company. So this is a backloader dealers. Like this we are adding dealers and this dealership depend on 60 numbers. We have spoken 60 to 80 to cover the India.
It all depend. You know, sometime we got a very big dealer. He is having 10 branch. Okay. Then ultimately the dealer become little less also. Okay. It depend and sometime we’re getting a new party. Then we’ll not give the huge area. Then we’ll give the small area of maybe 150km all. Now so that that depend on the strength of dealer. The number of dealer can can vary little bit. But depending on the strength which kind of dealer we are appointing in a particular territory. Yeah.
Amit Agarwal
Okay sir. So it’s my last take point. So where a dealer suppose you know basically address sad dealers commission. Is that sufficient for that person Is it is part time job or what.
RS Khadwalia
Type of dealer is it a full time job, sir. He is making good money from the spare part also because this machine consume good amount of spare parts from service also and sale also. Ultimately because the machine cost is 35, 25 lakh rupees average in 25 rank average. If he’s making expense is not very high. If he’s making 7, 8% also. So he made good, very good money, right, Sir.
Amit Agarwal
And the last question is the sale. Like the dealers, they don’t keep an inventory, right?
RS Khadwalia
Some inventory they keep. Sometimes we. We are also supporting them if the. Yeah.
Amit Agarwal
Okay. And so when we ship from a factory to the dealer, then we recognize it as sales.
RS Khadwalia
When, when we ship from factory, then we’ll recognize a sale. Yeah. Okay. Okay.
Amit Agarwal
So thank you. That’s it from my end and best of luck.
RS Khadwalia
Thank you. Thank you.
operator
Thank you. We’ll take the next question from Mr. Mohammed.
Mohammad
Am I audible? Hello.
operator
Yes sir. You are audible.
Mohammad
Yeah. Yes sir. Thank you for the opportunity. So I just wanted to ask. We have a tactic capacity of 12,000 in FY25 it was like utilize of 25%, 26% around, right?
RS Khadwalia
Yeah.
Mohammad
So in unit term it was around 3,000. And in the crane we had the capacity of 1280 which was utilized like almost like 90%, right?
RS Khadwalia
Yeah.
Mohammad
So I just want to understand this. 12,000 units of the tractor, what will be the capacity utilizations in the corrector for FY26 and 27? Because generally if we see from FY23 till now the tractor units ranges in the range of like 3,000 only. And in the crane which is a utilization of 85% which you are saying that by debottlenecking it has gone to 1400 units, right? So what kind of units you expect to sell in FY26 and when this new capacity comes, which will take the capacity to 5,000. So what kind of units we expect to sell in FY27 or what utilization? I mean to say.
RS Khadwalia
We are planning this, this year, this financial, current financial year around 30 to 40 growth in Tectra.
Mohammad
Unit wise, right?
RS Khadwalia
Yeah. Yeah, yeah, yeah. With this growth some utilization will increase. And next year also we got the plans to increase dealer. Because in Tectra we are also we are only working in again around 10 to 15 area. On the balance our areas are vacant. Okay. And now we are as we are having complete product range to making dealer. And for appointing dealer we have already started recruiting good manpower. And next this capacity utilization will be increased because the crane capacity we are increasing and the crane back end that is complete transmission is supplied by the techno division.
So therefore once we have the capacity 1400 to 1500 crane capacity, existing capacity 3600 we are adding. Okay. So in the next 2027, 2026, 27 will have 3000 plus cranes. You can say 3000 more transmission out of 3000 at least 2, 500 transmission we will be supplying to crane division. The capacity utilization of factory is going to increase. One they are. We are. We are forecasting 30 to 40 growth in this current year. And some growth in the next year also we are expecting maybe 25, 30% and the 2500 crane. So like this capacity utilization will go to 60 to 70%.
Mohammad
And realization like it was seen. So generally used to say the tractor prices on the average was around 6.5 to 7 lakhs.
RS Khadwalia
Right?
Mohammad
And the crane used to be in the 18 legs, right?
RS Khadwalia
Yes. Yes.
Mohammad
So f. So now going forward. So FY26 will be remaining the same range. And FY27 you mean to say this pricing of the crane will go to average will go to 25 lakhs, right?
RS Khadwalia
We are. We are assuming it’s around 25 lakh. Going to be 25 lakh. Because in the next year new plant we are making the bigger size crane. We are putting a separate line for bigger size grain. This is the two kind of crane we are making. One we call is the new generation crane. And one is the old type of that Hydra crane. Okay. So new generation crane earlier we are having space constraint. So we are not having a dedicated line. Of course we are making our product approval is very good there. So there we are having developed the complete range 15, 10 to 35 ton.
Okay. So as we are adding complete new line though the number will increase more in the new grain also. Therefore the price realization we are expecting it is going to be around 25 lakh rupees. Okay. Okay.
Mohammad
If so one thing I’m not seeing that as if you see the contribution from the cranes is increasing and I guess we have a better margin in the crane side. But if we see from FY23 onwards like our margin was like 30, 17, 18 which fell to 15%. And this quarter was also it’s around around 13.5, 13.7%. Like 14 range. So what should be the stabilized margin we expect? Because if grain contribution increasing and we were expecting the EBITDA margin to further improve for 15, I would use it. But. But it is either way I’m using.
RS Khadwalia
I’m not getting it once. Once we go all the areas, you know once when we are going to the new area there we have to compromise little bit the pricing. Okay. Because the new area person has to try. Okay. Once these wheels separate across the country the definitely it will start reverse it, start increasing the margin, start increasing. Because if somebody use my crane we are confident that he’ll buy our pain again going to buy the competition play the kind of product we are offering because we are late intent. We are a late intent and I’m a technocrat.
We understood basically that we have to be something plus in our machine. If something plus is there and we are, we can certainly certainly get not very high price but that price we can get because we are offering plus. Okay.
Mohammad
So we can expect this margin at least to be sustainable or it can further go further down if you expansion.
RS Khadwalia
Basically it will definitely. Once we’ve gone across the country and we have given our machine to all the corporate ultimately we’ll start charging the that kind of price.
Mohammad
So I’m asking So is this 13% margin sustainable? 13 to 14% margin sustainable? 526 27.
RS Khadwalia
I’m just. Yes, it’s sustainable. Sustainable, yeah.
Mohammad
And going forward you mean to say it will go Back to again 17, 18% right. FY20 it will improve.
RS Khadwalia
It’ll improve. It’ll definitely. Okay. But as of now we can consider 13 to 14%.
Mohammad
And one more thing sir, I just need to ask. So for FY26 can we expect to sell around like in the crane around 1500 units and FY27 around 3000 units for the crane?
RS Khadwalia
Yes.
Mohammad
Is that some right and how much it was for FY25? So can you say for the crane and tractor?
RS Khadwalia
Crane Crane is around 30%. Around 1,400. Around 1,400.
Mohammad
No, no, I have to say sales unit capacity.
RS Khadwalia
25 1,087 we have sell.
Mohammad
108787 so B. FY26 may.
RS Khadwalia
Around 1400. Around 14 between 1400 to 41500 or something between. Okay.
Mohammad
Or FY27 within around 25 to 3000.
RS Khadwalia
3000. We are expecting 3000.
Mohammad
Okay, thank you sir.
RS Khadwalia
Thank.
operator
Okay, thank you so much. It was a very engaging session and now I invite the management to deliver the closing remarks.
RS Khadwalia
Yeah. Anjul you would like Sir, I’d just.
Anshul Khadwalia
Like to thank everyone on behalf of Fin Portal and the end of our management for taking out the precious time. There were definitely a lot of insights for us also and we hope we see you again and delivering better results and continuing the momentum. So thank you very much and wishing everyone all the best.
RS Khadwalia
Yeah. Thank you, everyone.
operator
Thank you so much, everyone, for joining. And if you have any doubts that are still pending, you can drop us an email anytime. And we would be happy to revert to those. Thank you so much. You can disconnect now.
RS Khadwalia
Thank you. Thanks a lot.