Indo Farm Equipment Limited (NSE: INDOFARM) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Ranbir Singh Khadwalia — Chairman and Managing Director
Anshul Khadwalia — Joint Managing Director
Analysts:
Kaushal Sharma — Analyst
Sameera Middha — Analyst
Dolly Chaudhary — Analyst
Rahul Gupta — Analyst
Pushkar Jain — Analyst
Dipanshu Suman — Analyst
Pradyum Kothari — Analyst
Meet Mehta — Analyst
Anil Nahata — Analyst
Presentation:
Ranbir Singh Khadwalia — Chairman and Managing Director
Thank you to everyone and very good after good evening, I hereby welcome everyone to this earning conference call for discussing the results of the quarter and nine months ended December 25. Along with me we have our whole time Director Mr. Anshul Karwalia, Mr. Subam Karwali, Executive Vice President, Mr. Varun Sarma, CFO and Mr. S.M. singla, Finance Head and Ms. Naprit Kaur, Company Secretary and Compliance Officer. The company’s financial result for quarter and nine months ended December 25th has been circulated and uploaded on the stock Exchange and company website. I will summarize the key highlight of our financial performance in this quarter and nine months ended December 25.
On standalone basis revenue from operation in Q3.26 is 100.64 crore comparable to the last year 90.82 crore. Hence year on year growth is 10.81% and on nine month basis 290.96 crore against the last year 241.61 crore. Year on year growth is 20.43%. EBITDA. Inclusive of other income 12.16% of the Q3.26 comparable to 12.29 it is little decline and in nine month basis the figure is 36.202 crore against 32.63 crore there is a growth of 10.39%. The tractor segment revenue for this Q3 47.91 crore against the last year 25.4 crore. Year on year growth is 88 plus 88% and the ninth month is 140 crore. Revenue revenue 140.25 crore against the last year 90.46 crore. The year on year growth is 55% and the crane segment revenue the last quarter is 52.73 against the last year of 65.43. There’s a decline of 19% in the revenue and the nine months is 150 0.71 crore.
Of the this nine month ending 26 and last year it was 150.45 crore so it’s almost similar. The growth outlook the company expect to achieve overall revenue growth of around 25% on FY 2526 with total revenue is expected to grow around plus 50% and the crane revenue is expected to grow around 10% with expected EBITDA margin in the range of 12.5 to 13%. Regarding the export, the company have started the export marketing activities and appointed some good dealers. This is a Response of the we have participated in the Agri exhibition in Germany last year and in Agritechnica to open the new market especially in Europe.
The company have received a trial order from Germany of 48 hectares. So it is a good beginning. And in some other country also I think UK also we got some little small trial order. Regarding the dealer network. During the quarter ended December 25th the company has added 25 new dealers in tractor division taking total dealers headcount is 200 plus. Although in this 200 some dealer yet to start the LOI has been issued and they are preparing their showroom and other activities. In crane division also the company has added five new dealers during this quarter taking the total number of Crane with dealer plus 25 dealers.
Regarding this new project. New pick and carry crane project update. The project work has regained momentum during the current quarter. The project is expected to start commercial production in the first quarter of 2627. FY2627 the civil construction work at new site is in full progress as per approved plan timeline and specification. The civil work of the main said including the pre engineer building said and related works are expected to be completed by March 26. Order for the major machinery have been placed and procurement is in progress as per the approved project plan for tower crane proto design and first sample onward.
It will be ready by March. This. This. In this financial year and onward. Second quarter FY2627 the company is expected to start the commercial sale of the tower Crane and in FY2627 we are expecting a revenue of around 60 to 70 crore figures in this next financial year. The next financial year. This is all I think now we can reply the specific queries of the participants.
Questions and Answers:
operator
Thank you to the management team for the insightful introduction about the company. We will now move on to the Q and A session. Participants who wish to ask a question are kindly to requested to raise their hand to ensure. We’ll take the first question from Kaushal from Sharma.
Kaushal Sharma
Hello. Yeah. Hi sir. Very good evening. Am I audible?
Ranbir Singh Khadwalia
Yeah, you are audible. Yeah. Please.
Kaushal Sharma
Tell me what is the progress in tower crane manufacturing production And. And we have the plan to add 500 dealers in next three years. So how much dealer we. How many dealers we have added in this nine month financial 26.
Ranbir Singh Khadwalia
First is the tower crane. The tower crane the one proto trial. Proto will be ready in this financial year and we are expected to start the commercial sale from the second quarter of the next financial year.
Kaushal Sharma
Okay. And sir, what about the dealership that we have added in this 9 month financial 26 .
Ranbir Singh Khadwalia
This Now the dealership number has gone to around 200 numbers. Earlier I think it was 140. I think around 60. 60 dealers we have added. Although all out of 60 some dealer yet to start the lifting first lifting. But the LOI has been issued. They are preparing the SH room and other creating other inf facilities. We are anul. You can explain up to 500 dealer by which time we had received.
Anshul Khadwalia
Sir, over the past. Yeah, sure sir. So just to add sir, over the past nine months post the IPO we received over more than 175 applications who have applied for a dealership. But only 60 have qualified out of those and s our plan. So our plan to add to. So currently with the current LOIs that we have reached, our number is 200 and our plan to take it to 500. We are well on track to achieve that plan. Rather we are hopeful to achieve that before time.
Kaushal Sharma
Okay. And so just want to understand the capacity that we have. What is the current capacity utilization of both segment tractor and cranes? And how are we going to ramp up the same. What is the overall volume, production and sales volume in this nine month both in tractor and the crates. Could you please highlight on the same.
Ranbir Singh Khadwalia
You know, first is the crane. Crane. In the old plant we do not have more capacity. Therefore we are putting a new facility which will be operational in the next financial year. Okay. Then the capacity constraint in crane will be over.
Kaushal Sharma
Okay.
Ranbir Singh Khadwalia
And yeah. And as far as sector is concerned, the capacity is 12,000 numbers. There is a cap still capacity available. But this year as we have given the figure we are expecting around plus 50% growth in Techtra business comparable to the last year. So slowly, slowly every year we will. As soon as we will ramp up our dealer network, the number will automatically increase.
Kaushal Sharma
So what is the volume in tractor and the cranes that we did in this nine month financial 26.
Ranbir Singh Khadwalia
Okay. Singhaji, you are having this current figure with you. Can you share these numbers?
Anshul Khadwalia
Yes sir.
Ranbir Singh Khadwalia
Can you. Can you share the nine month figure of Tectra and Crane?
Anshul Khadwalia
Nine months sector number that has around 2000 numbers. 1200 last year, sir.
Ranbir Singh Khadwalia
Last year 10001200 and now 2000 plus.
Anshul Khadwalia
Yes.
Kaushal Sharma
I t is for Crane. Sir.
Anshul Khadwalia
L ast year it was around 735 numbers. 705 number, sir.
Kaushal Sharma
705 number versus 735.
Ranbir Singh Khadwalia
Yeah.
Kaushal Sharma
So degrowth in the volume. Sir, in the crane.
Anshul Khadwalia
I t is a marginal decline, sir.
Ranbir Singh Khadwalia
Yeah. This is. I’ll explain. You know, in this screen this is a term our Engine term is changed completely. The new machine has come in. You know we have started the last till last year we were selling term three machine and term four machine. Majority sale was of term three machines and shoe machine new generation machine in term four. But now the both this emission norm engine has been upgraded to Trump 5 straightway going to term 5. It become a little specific engine then. And the prices price increase is also there.
Anshul Khadwalia
Yeah. Sir, I would like to add something here. So. So basically in last year the we were working at old norms and with effect of 1st 1-20-25 the new norms were introduced. So therefore the last quarter was very good because people were. You know there was a surge in demand due to every people wanted to buy the old model. So that is the primary reason of this.
Kaushal Sharma
Since we are expanding our crane capacity and entering into the new tower crane. So are we expecting any jump in EBITDA margin next year? Like we have guided 12.5 to 13% for the current year.
But for the next year is there any scope to increase in our beta margin optimal utilization?
Ranbir Singh Khadwalia
Definitely. Once the volume increase beta is definitely going to. We are expecting it is going to increase by.
Kaushal Sharma
How. How much? Sir.
Anshul Khadwalia
Around one and a half 280 quantities that.
Kaushal Sharma
B y 200 basis point, sir.
Anshul Khadwalia
200 basis point, sir.
Ranbir Singh Khadwalia
150 to 200 basis point.
Kaushal Sharma
Okay. Okay. So thank you very much for answering my question.
Ranbir Singh Khadwalia
Thank you.
operator
We’ll take the next question from Rahul Gupta. Mr. Rahul, you can ask your question. Take the next question from Samira Mitha.
Sameera Middha
Hello. Am I audible? Yeah. Good evening, sir. Sir, first of all I wanted to know the capacity utilization of crane as well as tractor division for Q3FY26.
Ranbir Singh Khadwalia
Ma’, am, crane is a Q3. We are working on almost 100% capacity in the existing plant.
Sameera Middha
And tractor.
Ranbir Singh Khadwalia
Tractor. Ma’, Am, there is a sil potential. But as as we have explained in the in the beginning that we are will be growing around at the 50% plus this in this financial year. So is the last quarter rather the tractor volume tractor business growth was 88%.
Sameera Middha
Sir, if. If. Sir, if our crane capacity is running at almost 100% utilization then how come the sales number has decreased on a yoy basis for cranes?
Ranbir Singh Khadwalia
Madam, this is very much.
Anshul Khadwalia
Ma’, am, the sales number which is decreased is around 4% only. So that is also because of a mix of certain models. Some bigger machines are produced in terms of in less capacity and the smaller ones we can produce in more numbers. So that is the reason.
Sameera Middha
Okay. So sir, before the new Norms were introduced. What was the average selling price of our crane? And now what is the average selling price of our crane?
Anshul Khadwalia
The average selling price has increased by approximately 10%.
Ranbir Singh Khadwalia
The last year. I think 19 to 20.
Anshul Khadwalia
Sir, I’ll tell you. Last year it somewhere around 20. 19.5. Okay, so which has increased by almost 10% which is coming now to be 21.5 to 21.9.
Sameera Middha
So that. That is the number in lakhs, right? Earlier it was 19 lakhs and now it is around 22 lakhs.
Anshul Khadwalia
Yes.
Sameera Middha
Okay, answer. When are we expecting the commercialization of our new crane capacity? I’m not talking about the fixed tower crane. The pick and carry grain capacity.
Ranbir Singh Khadwalia
Madam. This. The production. Commercial production will start in the first quarter of the next financial year. 26, 27.
Sameera Middha
Okay sir, if. If everything is all right in. In our crane business as well then why have. Why we have reduced the guidance from earlier 20 to 25% growth in cranes to 10% now.
Ranbir Singh Khadwalia
Ma’, am, this was. This was because of the last year the emission known was a term three engines. And sudden because of coming of this emission home gone to term five engine. Okay. The acceptability in the market and there is a little price increase. Also these engines are a little sophisticated. The training has to be given in the field. Now I think that time is over. Whatever time is over. And the last year because this ambition norm is new. Ambition norm will be coming in with the effective. Therefore the pupil has done more buying, preponder buying. So this was the reason. But after this I think January onward the things are going in a very different direction. We got the better bookings now. And whatever time is required to, you know, establish a new product. Basically that is already taken. So now onward is January. We are expecting better numbers.
Anshul Khadwalia
And so just to add to what chairman sir explained, this shift is across industry. It is not limited to us. This is a huge shift from BS3 to BSI. So whenever there is an upgradation in the norms it takes a little while for the market to accept. And you know, in approximately two, six to nine months. Once the market accepts then the push starts again.
Sameera Middha
Okay, so. So on an industry basis, have things started normalizing again?
Anshul Khadwalia
Yes, ma’. Am. This. This month onwards, January, this quarter, beginning onwards, things are normalized now.
Sameera Middha
Okay. Okay, sir. Thank you so much and all the best.
Ranbir Singh Khadwalia
Thank you.
operator
We’ll take the next question from Dali Chaudhary.
Dolly Chaudhary
Hello. Am I audible?
Ranbir Singh Khadwalia
Yes, ma’. Am.
Dolly Chaudhary
Hi. So thank you for the opportunity. I. I just had a few questions. So first of all as you mentioned that in nine months we did a volume in cranes of about 705. What. What was exactly this number for this quarter? Quarter three.
Ranbir Singh Khadwalia
Last quarter. 232.
Anshul Khadwalia
230.
Ranbir Singh Khadwalia
Okay.
Dolly Chaudhary
230 grains. Okay. Mainly because of product mix change also. So like our new capacity will be coming live in quarter one. So I guess in the initial level we’ll expect a lower utilization level. So what like what volume jumps we are expecting in next year? Like I guess this year will close around thousand cranes like to last year. But what are we expecting this volume number in next year? Financial year 27.
Ranbir Singh Khadwalia
Ma’. Am. There once we start there the new facility then the crane production constraint will not be there which we are facing in the past because marketing always having very very large booking and we are not able to deliver in timely then ultimately the customer, we are losing the customers once that facility start and if we utilize that facility the capacity will be 3,600 additional capacity. If you’ll able to utilize that around 50% also in the first year then 1,800 crane we are expecting from that unit. So that. Yeah, that is additional business we are expecting from that unit.
Of course we. We are sensing our marketing also simultaneously because it’s not only easy that once the production is there it will start selling also. But of we have created the market and we have gone in more market also considering our new production capacity announcement.
Anshul Khadwalia
Yeah, okay. Yeah. Adding to what sir? So approximately what you know we were estimating is to proportionately add approx. Minimum thousand machines additional in the next financial year from the new plant. From thousand machines addition to what we are already selling.
Ranbir Singh Khadwalia
Yeah, this is the minimum numbers. Otherwise we are targeting 1800. But anyway this will be the minimum number which we can. 100. Sure.
Dolly Chaudhary
So like from January, February onwards are we seeing like the demand scenario getting like normalized because of price hike? Like are people have resumed the activity of like the. For getting the usual numbers as it was impacted last quarter and this quarter as well.
Anshul Khadwalia
Yeah. So things are improving this January we have closed at very good volumes and we are expecting to you know whatever 4, 5% degrowth we have done in the first three quarters, we are expecting to match it up in the last quarter and we will not be closing at a degrowth at the end of the year. So we there will be some growth.
Dolly Chaudhary
Okay. Okay. And lastly one more thing that if I’ll just take an estimation of around thousand claims during this year and expand like doing volume of 2000 next year it’s Like a huge jump, the minimum jump that we are expecting. And, and on other side, you just mentioned that we have added five new dealers. Right. So like if you can just throw some light on like first of all, on which geography that we have new geography that we have entered recently in crane div. Which we can see as new because existing. I know that you mentioned that as we didn’t have the capacity, we were not able to supply the cranes.
But we are also expanding to new markets and getting market share from other players. So which new geographies are we entering into right now that can give a good volume next year?
Anshul Khadwalia
So, so, you know, as far as research, we need approximately 60 dealers to cover the full country. And right now, earlier, before the ipo, we were operating mostly in north of India. But now we are expanding to reach, you know, each and every part of the country, whether it is south or east. And we are working in a combination. It is not like we are all working or we are only working on a dealer model. There is a combination. In certain places we are starting to sell directly. We have appointed our own company owned staff in terms of sales and service representatives.
And wherever we are not able to find a good dealer in the beginning, we are, we are planning to sell directly, few numbers and later on at a stage where we can get a good dealer on board. So it is a combination, but we are primarily focusing in the east as well as south of India.
Dolly Chaudhary
Okay, and what would be the total number right now for dealers?
Ranbir Singh Khadwalia
Around 25 dealers.
Anshul Khadwalia
Ultimately 25, 26 dealers right now are, are currently which are working.
Dolly Chaudhary
Which are working. So like these dealers are exclusive for Indo farm or they work for different brands as well.
Anshul Khadwalia
So they are exclusive for indoor farm. When it comes to crane business. Maybe they have some other product which is not, you know, related to our product. Like maybe they, they are having a dealership of selling some oil or something else which complements the crane business, but has no direct competition.
Dolly Chaudhary
Okay, okay. And like what number do we see going forward for these dealers? Like what is the pipeline? Like maybe some demand is coming from the dealer side also to get added. So what should we expect this number to go next year?
Anshul Khadwalia
So our target is to reach approximately 50 plus dealers where we feel that we can cover the full country.
Dolly Chaudhary
So like we are confident that next year will cover the full country, at least for the start.
Anshul Khadwalia
Yeah. So you know, once the capacity is in place, then we have the confidence to achieve.
Dolly Chaudhary
Okay. And like for our strategy to sell tower cranes also like these dealers who are doing Pick and carry. I guess they will not be the same for tower cranes also. So how will like our strategy for tower cranes? Like if we know that there’s the demand in the industry it was getting imported. But how are we approaching and establishing the product market fit for our product?
Anshul Khadwalia
Having a vision to work directly also and work via dealers. If I talk in terms of percentage. So approximately 75, 80% of the dealers which are for pick and carry can be utilized for tower green business also. But 25% we will. We might have to point new or sale directly.
Dolly Chaudhary
Okay. Got it. Got it. That will be all. Thank you.
Ranbir Singh Khadwalia
Thank you.
operator
We’ll take the next question from Rahul Gupta.
Rahul Gupta
Hello.
Ranbir Singh Khadwalia
Yes. Yes sir.
Rahul Gupta
As you mentioned that the sales will grow 25%. Is the 60:70 crore revenue from tower crane included in this or excluded?
Ranbir Singh Khadwalia
No, no. Tower cane business will be only in the next financial year. 26, 27.
Rahul Gupta
It is excluded 25.
Ranbir Singh Khadwalia
Yeah. This is. I have spoken around 25 top line growth in this current financial year.
Rahul Gupta
Okay. Okay. And for the next financial year sir.
Ranbir Singh Khadwalia
Next financial year you know tactile. We are expecting to still further grow around 30 plus. It is. It will be depends on the market. Market. You know how the market goes. Basically because it is. The rain is okay. Monsoon is okay. So we are expecting 30% growth. And crane. Crane. Because we are putting a new facility there. We are expecting at least 1,000 plus crane. We can carry crane additional to the what we are doing from the current plant. 1,000 plus crane total number become almost two.
Rahul Gupta
Yeah. And sir, what about our gai ?
Ranbir Singh Khadwalia
Tower cane. We are expecting a revenue of in the first financial year. Maybe 60 to 70 crore only top line.
Rahul Gupta
Okay. And sir, what will be the EBITDA margin of covercase?
Ranbir Singh Khadwalia
It will be almost in the. In the beginning in these numbers will be almost around between 12 to 13.
Rahul Gupta
Only 12 to 13. And EBITDA mix was.
Ranbir Singh Khadwalia
In the next year. We are. We. We are expecting little improvement in the beta. So maybe under. Under 50 to 200 points.
Rahul Gupta
Okay. It will be around a 14.5 to 15%.
Ranbir Singh Khadwalia
Yes, you can see.
Rahul Gupta
Okay sir. Thank you. Sir.
operator
We’Ll take the next question from Pushkar Jain.
Pushkar Jain
Hi. Am I audible?
Ranbir Singh Khadwalia
Yes. Yes.
Pushkar Jain
Yeah. Yeah. Sorry to repeat the same question. So Sir, Mera understanding 450 crores probably in terms of revenue and then 15 probably we grow in the existing facility because of tractor to part. So corrode approximately from existing facility a thousand cranes at the average selling price of 21 lakhs. Will make another 200 crores from the crane facility.
Ranbir Singh Khadwalia
Yes.
Pushkar Jain
And 60, 70 crores from the tower crane facility.
Ranbir Singh Khadwalia
Yeah.
Pushkar Jain
So are we expecting like 700, 800 crores of top line next year?
Ranbir Singh Khadwalia
We are expecting these number. Definitely. We are expecting these numbers.
Pushkar Jain
Right. And. And on that 13 blended margin and as capacity goes up then things will change.
Ranbir Singh Khadwalia
Yes.
Pushkar Jain
Yeah. But are you see. And also second on the industry level are you seeing any slowdown in the crane market like. Or is it just because of the like this norms changing that we saw temporary blip structurally. What is your view on the market going ahead.
Ranbir Singh Khadwalia
This year remained because of the norm changing and there was a little bit slowdown in the capital expenditure by I think the government also. But next you see this budget, the infra investment has been increased. Considering this thing, budget thing. We are expecting that this growth momentum will come again in the construction equipment business, in the crane business. And Tectra is of course doing better. Plus we have started opening in export. If something happened in Indian market then we try to compensate from the export. Therefore we are expecting around 30% growth in Techtra business. Because the already capacity is available there.
And we have started the export also. So 30% from there. And due to the capacity addition in the crane we are expecting all these things in the next financial year.
Pushkar Jain
Right. And suddenly like we are growing very fast in tractors. Is there any structural reason why like in the market point of view.
Ranbir Singh Khadwalia
This is two, three things. As we have told during our the last discussions for earning calls the Techtra business. You know we have invested some money in the NBFC also.
Pushkar Jain
Right.
Ranbir Singh Khadwalia
When BFG is also supporting us from the this ipo. And. And. And we are opening new market also. We have started investing in the marketing team. Good marketing team. And opening new area also earlier we are. We are focused only in few states. Four, five northern states. Now we are going to the Karnataka we have started and Maharashtra we have started aggressively. So these new states also started giving some numbers. So ultimately our number increase, you know this Last quarter then 88 growth. It is very good growth basically.
Pushkar Jain
Yeah. Yeah.
Ranbir Singh Khadwalia
Considering these things maybe in the next year. We are still considering these figures. But we are expecting minimum 30 growth. That we should do in Tetra.
Pushkar Jain
Right. And our this new crane facility is anyway fungible. Right? So we can move. We can make tractors and crane at the same facility, right?
Ranbir Singh Khadwalia
No, the new facility is dedicated for construction equipment only. Not protected already available in the existing plant.
Pushkar Jain
Right. So current facilities fungible and new is like dedicated to cranes. Okay. Okay. That explains a lot. Thanks a lot, sir.
Ranbir Singh Khadwalia
Thank you. Thank You.
operator
If any investor have any question, you can raise your hand. We’ll take the next question from the Panshu Suman.
Dipanshu Suman
Hello sir.
Ranbir Singh Khadwalia
Yeah.
Dipanshu Suman
I think again a good quarter on the tractor side. But on the crane I think a little bit slowdown is there in the market itself. So I wanted to check. Can you give me the. The number of cranes what we have sold on a quarter on quarter basis for last four quarters. Like starting from last March to June to September to December. This last four quarters. What were the volume numbers for claim?
Ranbir Singh Khadwalia
Are you having these figures?
Anshul Khadwalia
Yes, the numbers are ready available.
Dipanshu Suman
How much sir? How much?
Anshul Khadwalia
316.
Ranbir Singh Khadwalia
Yeah.
Anshul Khadwalia
Yeah. And the first quarter of the financial year around 270 crane sir.
Dipanshu Suman
Okay.
Anshul Khadwalia
And the second quarter is the 200 grains.
Dipanshu Suman
Okay.
Anshul Khadwalia
And the third quarter is the 230230 crane sir.
Dipanshu Suman
230 crores. Okay. So that was from my part. Thank you.
Anshul Khadwalia
Thanks.
Ranbir Singh Khadwalia
Thank you.
operator
We’ll take the next question from Pradhyuman Kothari.
Pradyum Kothari
Good evening sir. Like the norms changing and the. The crane market now reviving. So that. That’ like a good work from your your side. Just I wanted to know that the. The new plan that you. You all have been mentioning about. So like have you taken debt on that or is it from your own resources? Secondly, does the company plan to like reduce their debt or like what are the plans behind that? And please tell me the cash composition of the company as well.
Ranbir Singh Khadwalia
We just for your knowledge this money which we are investing in this crane new building, the new crane facility. The land was already available with US 30 acre additional land where we are putting the new plant. Okay. Again apart from 35 acres the current facility on the 30 acre plant. The money which we are investing in this project basically plus 70 odd crore. This is we have raised in IPO. So no. No borrowing is increased. This is you can say the IPO funds are being utilized here. And as far as the debt is concerned. Now the company that is working capital only around 85 crore which we can use depending on the requirement.
But what some loans were there which we have almost reduced. And I think in this finance and end of closing of this financial year. Similarly what figure will be I think less than 10 crore.
Anshul Khadwalia
Around 7 to 8 crore. Sir.
Ranbir Singh Khadwalia
Around 7 to 8 crore will be left. This year we’ll be paying around 15 crore. Almost 15 crore that this term loans we repaid.
Anshul Khadwalia
So we will term loan zero by next year. Sir.
Ranbir Singh Khadwalia
Loan will be zero by next year.
Pradyum Kothari
Okay. So thank you so much for answering the question.
Ranbir Singh Khadwalia
Yeah.
operator
We’ll take the next question from meet Mehtar.
Meet Mehta
Hello. Am I audible?
Ranbir Singh Khadwalia
Yes.
Meet Mehta
So sir, as we are targeting revenue of 800 crores for next year. And we are also targeting 12.5 to 13% of EBITDA margins for this year. So what kind of margins we are targeting for next year as we will be ramping up newer capacity. And any guidance on pat margins?
Ranbir Singh Khadwalia
No. This. This. This a bit figure which you are explaining. This is for the next financial year only. Now this is 26, 27. And in that year this new facility will also start. After starting the facility, these kind of top line figures we are expecting.
Meet Mehta
Okay. Any guidance on pat margins?
Ranbir Singh Khadwalia
Similar 150, 200.
Anshul Khadwalia
In the range of around six and a half to seven percent. Sir.
Ranbir Singh Khadwalia
Six and a half to seven percent.
Meet Mehta
Okay. Okay. Thank you sir. And congratulations on great set of results.
Ranbir Singh Khadwalia
Thank you.
operator
If any participant have any other question then you can raise your hand. We’ll take the next question from Anil Nahata.
Anil Nahata
Can you hear me?
Ranbir Singh Khadwalia
Yeah. How are you?
Anil Nahata
Absolutely fine, sir. Yeah, good to hear back from you answer. How are we looking at. Sir, quarter four. Sir, quarter three was other muted. And I unfortunately missed a bit of the earlier part of the discussion. So I’m sorry this question is repeated because nearly we are halfway through the quarter now. So how does it look like sector.
Ranbir Singh Khadwalia
Again we are expecting around 50% growth in sector in this quarter. And the crane also we are expecting some growth. Maybe around 10%. Overall. Overall the top line growth will be. We are expecting 25%.
Anil Nahata
Understood. Sir. Last year the quarter four crane was around 350. So this quarter are we thinking of reaching somewhere around that number or it will be much lower.
Ranbir Singh Khadwalia
Not. Not much lower. We. We are. We are trying to have little more numbers than this numbers.
Anil Nahata
Okay. So you’re trying to exceed 350.
Ranbir Singh Khadwalia
Yeah. Yes.
Anil Nahata
And similarly on the crane side I think then so tractor side I think your target will be more than thousand numbers. Then.
Ranbir Singh Khadwalia
It is last. Last quarter how many number iodines? A figure I’m not having. But we are expecting around 50% growth considering the last past trend.
Anil Nahata
Yeah. Okay. Okay sir. Thank you so much.
Ranbir Singh Khadwalia
Thank you.
operator
We’ll take the next question from Kaushal Sharma.
Kaushal Sharma
Hello. Am I audible?
Ranbir Singh Khadwalia
Yes. Yes. Sharmaji. Yeah. Please
Kaushal Sharma
Follow up question on our EBITDA margin. Sir, as we can see that our quarter on quarter EBITDA margin has fallen from like 16.12% to 12.77% from June 2024 to current quarter. So what was the key reason of this fall in Our EBITDA margin.
Ranbir Singh Khadwalia
Because primary reason is we have recruited a lot of numbers manpower basically for especially for marketing. And that’s that cost. Because initially for finding dealers searching their new dealer new partners there little bit more spending has been done on the manpower front. So that has little affected. That is I think the main reason. And maybe we are going in some new market. So there we are offering little more competitive pricing. Because in the market the new for us there we have give little more competitive pricing just to enter there.
Kaushal Sharma
So over the period of next 3 to 4 year what kind of normalized or sustainable EBITDA margin in our business? Because now we have spent all all the marketing and employee manpower cost
Ranbir Singh Khadwalia
Yeah, yeah.
Kaushal Sharma
Kind of normalized EBITDA margin for next three to five years. Would it be in the range of like you said 12.5 to 13% or it. It will go back to 15 to 60%.
Ranbir Singh Khadwalia
It will definitely go back. Because I’ll tell you we have a lot of backward integration. When the product is established in all the new zone like we are established in north part of the country. So then we can have. It will be in line with the. Industry not for us.
Kaushal Sharma
Okay sir, thank you very much.
operator
We’ll take the next question from Pushkar Jain.
Pushkar Jain
Hi sir. In this pick and carry segment what risks do you see like in terms of product acceptability and what is the total capex that we have done in this in on this facility.
Ranbir Singh Khadwalia
Total capex. Will be around 70 plus crore. 70. 75 crore. And as far as the product acceptance is concerned our product is accepted in all the sectors in all the big corporate also. So now it is only depend because we have started the product. We are a new late entrant. We have given much better features comparable to the industry. In the beginning we were the first company to launch the air brake system. Because there was no air brake system earlier in the hydra machines we have given the bigger boom heights. We have given the outriggers which was not there in the industry in the hydra segment.
So we have tried to give much better features and competitive price. So considering this thing the acceptance of. The product is very good. Therefore we are the. We are the one of the latest entrant comparable to our two competitors. They are quite old in this business still our acceptance is everywhere. In defense, in railway, in all energy project where Bulletin Metros everywhere it is acceptable acceptance is not issued other it is a preferred machine.
Pushkar Jain
Yeah, right. Right. From this facility what is the peak revenue or you know peak number of units that you can produce if you can give any idea when once it totally ramps up like the total peak capacity or total peak revenue.
Ranbir Singh Khadwalia
Peak revenue from the crane business of the existing facility is a 350 number which we have done in the last year March quarter.
Pushkar Jain
No, no, no. The new. The new facility where we have.
Ranbir Singh Khadwalia
New facility will be very large. It is a 3600 crane facility. We are putting OPIC and carry crane. And there we’ll be making some tower cane also Tower cane facility also tower cane. We expect up to 1200 tower canes. Sorry, sorry, sorry. Sorry. I’m wrong. Not 1200 canes. It is a capacity of 22240 tower canes. We can produce from that facility. Around 240 we are expecting and 3600 pick and carry crane. One average price it will take because it will make little bigger machine. Also on around 25 lakh rupees on pick and carry grain. Then you can calculate what kind of revenue can be generated with that plant. Balances are of course depend on the marketing. How marketing catch up with that production numbers. And in this tower cane in 240 tower crane the average selling price of tower cane is around maybe 65 lakh rupees. Some 60 lakh. You can consider safer side.
Pushkar Jain
Okay.
Ranbir Singh Khadwalia
This kind of revenue can be generated with that new unit.
Pushkar Jain
So maybe close to like 1000 crores peak revenue can be generated from the new unit.
Ranbir Singh Khadwalia
Yes. Yes. Yes.
Pushkar Jain
Thanks a lot sir. Thanks a lot.
Ranbir Singh Khadwalia
Thank you.
operator
We’ll take the next question from Dolly Chaudhary.
Ranbir Singh Khadwalia
Yes ma’.
Dolly Chaudhary
Am. I had a follow up question. So like as when can you just have a comparison drawn from our competitors in pricing terms in our like established markets as in comparison to the new. Markets that we are entering. What would be the price difference between our competitors and us?
Ranbir Singh Khadwalia
Which product you are asking, ma’.
Anshul Khadwalia
Am. So ma’, am, the pricing is basically on the same lines. Only we are a north based company. So there in south there is an impact of freight cost which increases the price a little bit. But in general ma’, am, we are priced at par with the competitors. You know in certain models. So it is model wise pricing. In certain models where we are offering maybe some better features our pricing can be slightly higher. And in in new markets where we have to you know seed our product and for the entry purposes maybe we can you know pitch our product at a slightly lower prices than competition.
And once we achieve a certain volume then we can get it back to the normal routine price.
Ranbir Singh Khadwalia
But. But soon comparable to escorts. Basically we are Giving.
Anshul Khadwalia
There are two companies which are working so sir, there is no. There is no direct fixed comparison. Because sir, there is. Each product has different unique accessories and us.
Ranbir Singh Khadwalia
Okay. Okay.
Anshul Khadwalia
So I can’t like make a statement where I can say that my product is maker. In certain markets we are selling like at a similar price than Escorts but we are offering certain extra things to the customers.
Dolly Chaudhary
So. So like if I do a tonnage wise like to like comparison still we can’t compare because some features are different.
Anshul Khadwalia
Yeah.
Ranbir Singh Khadwalia
Y eah. The features are different. But we are. We are competitively priced when we compare ourselves to Escorts.
Dolly Chaudhary
And in. In respect to action construction.
Ranbir Singh Khadwalia
We can consider at par. At par. Or maybe slightly lower when we are entering in new markets here.
Dolly Chaudhary
But in established geographies we are. We are like similar only but in new geographies we give better pricing.
Ranbir Singh Khadwalia
Yes. Yes. Yeah.
Dolly Chaudhary
Okay. Thank you.
operator
We’ll take the next question from Rahul Gupta.
Rahul Gupta
Hello. Hello, Sir.
Ranbir Singh Khadwalia
Yeah.
Rahul Gupta
You mentioned 25 sales growth is this year on year basis or quarter on quarter basis? For Q4.
Ranbir Singh Khadwalia
.Year on year basis. Not quarter
Rahul Gupta
Year. On year basis.
Ranbir Singh Khadwalia
Yeah.
Rahul Gupta
Okay, sir.
operator
On behalf of SEN Portal, I would like to express our gratitude to the management team of endofarm Equipment limited for taking the time to join us and provide such detailed responses to the questions. We also appreciate all the participants for their engagement. If any questions remain unanswered, please feel free to reach out to us at. The email ID is given in the chat box.
Ranbir Singh Khadwalia
Thank you, ma’.
Anshul Khadwalia
Am. Thank you, ma’. Am.
Ranbir Singh Khadwalia
Thank you.
operator
You may now disconnect.