ISGEC HEAVY ENGINEERING LTD (NSE: ISGEC) Q3 2026 Earnings Call dated Feb. 10, 2026
Corporate Participants:
Aditya Puri — Managing Director, Executive Director
Kishore Chatnani — Chief Financial Officer, Joint Managing Director, Whole Time Director
Analysts:
Mohit Kumar — Analyst
Digant Haria — Analyst
Manish Goyal — Analyst
Renjith Sivaram — Analyst
Rabindra Nath Nayak — Analyst
Abhishek Kumar — Analyst
Hiten Boricha — Analyst
Nidhi Shah — Analyst
Presentation:
operator
Sa. Foreign. Ladies and gentlemen, good day and welcome to izjac Heavy Engineering Limited Q3FY26 earnings conference call hosted by ICIC Securities Limited. As a reminder, all participants line will be in listen only mode and there will be an opportunity for you to ask question after the presentation. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand over the conference to Mr. Mohit Kumar from ICICI Securities Limited. Thank you. And over to you sir.
Mohit Kumar — Analyst
Thank you. Pari. Good evening. On behalf of ICICI Securities, I would like to welcome you all to the Q3FY26 earnings conference call of ISJAC Heavy Engineering Ltd. From the management today we have with us Mr. Aditya Puri, Managing Director and Mr. Kishore Chaitani, Joint Managing Director and CFO. Without further delay, I will now hand over the call to the management for the brief opening remarks which will follow by Q and A. Thank you. And over to you sir.
Aditya Puri — Managing Director, Executive Director
Thank you. Good afternoon everyone and thank you for joining us for our earnings conference call today. I hope you and your loved ones are well and safe. We look forward to engaging in a constructive discussion with you. Our quarterly financial results were published yesterday. We’ve uploaded our presentation on BSC NSC and our website www.isjec.com. for regular updates about the company, please visit our website and you may also follow us on our social media platforms on Instagram, LinkedIn and Facebook. Quarterly Financials the standalone total income for the quarter ended December 2025 is rupees 1365 crores, an increase of 21% compared to rupees 1128 crores for the quarter ended December 2024.
The standalone profit before tax for the quarter ended December 2025 is rupees 99 crores, an increase of 27% compared to rupees 78 crores for the quarter ended December 2024. The consolidated total income for the quarter ended December 2025 is Rupees 1765 crores, an increase of 17% compared to rupees 1500 crores for the quarter ended December 2022. The consolidated profit before tax for the quarter ended Dec 2025 from continuing operations increased by 72% to rupees 150 crores compared to rupees 87 crores for the quarter ended December 2020 4. The improvement in the consolidated profit for the continuing operations is largely due to better profits in Izjec Heavy Engineering Limited and also higher profits in our joint venture subsidiary company is Jack Hitachi Rosun limited.
As you know, a wholly owned subsidiary company is Jet Investments PTA Ltd. Singapore had entered into a transaction for the sale of its wholly owned subsidiary Bio Energy holdings one Cayman Islands along with its subsidiary companies and associate company including Cavite Biofuel Producers Inc. In the Philippines. The sale transaction however could not be completed as the buyer failed to make the required payments. We presently continue to work to sell the subsidiary companies along with the assets. The financial results of the subsidiary company of Iztec Investments PTE Ltd are classified as discontinued operations and the related assets are classified as held for sale.
The consolidated profit after tax for the quarter ended December 2025 including the discontinued operation is Rupees 84 crores compared to Rupees 23 crores for the quarter ended December 2024. Order booking the standalone orders booked during the December 2025 quarter are Rupees 14. 26 crores compared to Rupees 1290 crores in the quarter ending December. The orders in hand as on 31st December 2025 on a standalone basis are substantially higher at Rupees 7,649 crores compared to Rupees 6,461 crores as on December 31, 2024. This includes export orders in hand of Rupees 16. 29 crores. That’s 21%. The order book remains comfortable.
The consolidated orders booked during the December 2025 quarter are rupees 17.33crores against rupees 15.10crore in the quarter ended December 2024. The orders in hand as on 31st December 2025 on a consolidated basis are rupees 8709crores against rupees 7334crore as on 31st December 2024. The order position is strong. The order book is well diversified across various sectors and customers. Market Demand the overall demand trend continues to be encouraging and the inquiry position continues to be robust. Export inquiries have also picked up. Expansion Plans Expansion of the Machine Building Division Expansion Capacity expansion for many of our product lines is in progress.
Our board has also approved further capital investments yesterday. Presently, the new shops that are being set up for expanding the manufacturing capacity in the machine building division which manufactures presses and industrial machinery. This ongoing expansion is expected to be completed by July 2026 and when completed it can give an additional annual revenue of rupees 225 crores as we expect further market demand for our existing lines of presses and for certain new lines of presses that we are developing. Our board as yesterday approved a further investment of rupees 218 crore for further enhancing the capacity of the machine building division for presses as well as certain industrial machinery.
This investment will be completed around July 2027. When completed, this can yield an additional annual revenue for about rupees 375 crores. With both these investments, we hope to increase the revenue for the machine building division from the present 400 crores per year to about 1000 crores per year. Machining Facility for Iron Castings the company manufactures sophisticated iron castings for domestic as well as overseas customers. Many of our customers desire that we supply these castings in a machined form. Presently this machining is outsourced by us in order to provide better quality of machining and faster delivery of machined components.
Yesterday, our board has approved an investment proposal of rupees 22.6 crores for setting up a new machining facility for our iron castings business. This can yield an additional value addition of about rupees 20 crores per annum. New Proposed Skids and Modules Facility being implemented at the H as informed in the last quarter our board had approved an investment of rupees 87 crores to set up a new facility for the manufacture of skids and modules on our existing land within the Dheij Sez. We have now decided to increase the size of this manufacturing facility to meet anticipated demand for larger sites, kids and modules from the export as well as domestic markets.
The proposed investment of rupees 87 crores has now been revised to rupees 110 crore. The first phase of this facility is expected to be completed by March 2027 and the second phase by March 2028. Borrowings on a standalone basis. We closed the December 2025 quarter with a total borrowing of Rupees 670 crore versus 598 crores on 30th September 2025 and net borrowings after deducting the investments in funds in banks of rupees 433 crore versus 429 crores. Net borrowing as on 30th September 2025. It may be noted that during the nine month period a capital expenditure of about rupees 86 crore was financed through internal accruals on a consolidated basis, the net External borrowing is Rupees 317crores as on 31st December 2025 compared to Rupees 656crore as on 30th September 2025.
The borrowing has come down by about Rupees 340crores during the quarter. It may be noted that during the nine month period on a consolidated basis a capital expenditure of about rupees 100 crores has been financed through internal accruals. Cavite Biofuels Produces inc. PHILIPPINES the sugarcane crushing season has started in the Philippines in the middle of December 2025 and our plant is presently running using sugarcane and molasses as feedstocks. The capacity utilization presently is around 75% but expected to increase over the next few weeks. As mentioned earlier, we continue to look for buyers for the sale of this business.
My colleagues and I will be happy to answer any questions. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Digant Harya from Green Edge Wealth. Please proceed.
Digant Haria
Hi. Thanks for the opportunity. Sir. Congratulations on a, you know, very strong set of numbers. The first question is on the, you know, the products division, the industrial machine and machinery and manufacturing division. We have seen like a very strong margin of say 15.5% this quarter. So, so is there any one off in this or. It is just that the Hitachi, the international subsidiaries turned around and this is something which we can sustain.
Aditya Puri
So the margins keep going up and down. So 15 and a half percent or 15% is not a sacrosanct figure. But we hope to maintain double digit margins.
Digant Haria
Right. Because see the. Historically we have been in that you know, 10, 11% range and you know the, the international subsidiaries were much lower but, but now. So at least that 10, 11% range is sacrosanct. More or less or not?
Aditya Puri
Yes. Yes.
Digant Haria
Oh okay. Okay. So and now with the three CapEx projects, like you know in the last call you said that the total revenue that this division can do with the two capex projects was around 3200 crores. Now with this third project the number will go up slightly higher. What, what would be the peak potential after all these three Capex are done and you know, once we utilize them.
Kishore Chatnani
So the peak could be something like 3600, 3700.
Digant Haria
Okay, okay.
Kishore Chatnani
As, as, as Mr. Puri just mentioned, there is A timeline in which this investment and this capacity will come online. He’s mentioned two dates. July 27th as well as a date in March, March 2028. So. Yes, but, but our manufacturing business should. Should reach 3700 crores or so.
Aditya Puri
And also just to supplement what Kishore is saying, these were the dates and the investments will be completed and it will take some time to ramp up and come to full capacity.
Digant Haria
Of course. Of course. That’s. That’s right sir. And you know what, what are you seeing on the ground? See sir, generally this division used to be very dependent on auto sector and oil and gas. Because we used to do those boiler tubes and presses and skids and modules. Now like you know we’re doing this capex after time. So what are you seeing on the ground? And you know especially if you can give some sector wise outlook that you know that is encouraging us to do these investments.
Aditya Puri
So these investments, some of these investments are going to be specific for certain products and some of these are going to be. Could be used for a variety of products. So as far as for instance the machine shop for the foundry is concerned it will be machining the machines will be. Will be multi purpose and could cater to products from a variety of industries. As far as the machine building expansion is concerned it will be for automobile presses but also for forging presses. Some little revenue would also come from defense press. And then we are looking at certain items in the defense nuclear area also to be manufactured in these shops.
Digant Haria
Right, right. I was just more asking on the outlook that you know has outlook for any of your end sectors changed? Like are you seeing more positivity because you know in 10 years you hardly done investment on this side. But now we are you know having three projects. So that was my idea of the question.
Aditya Puri
We think that there is a market. Our acceptability in the market is growing and our market share is growing. So we, we don’t want to let it go. We want to capture them the the market. We are also looking at exports to targeting exports for certain geographies.
Digant Haria
Okay. Okay. All right. All right. Thank you so much. I’ll come back in the queue for another. Thank you.
operator
Thank you. The next question is from the line of Manish Goel from Think Wise Wealth Managers llp. Please proceed.
Manish Goyal
Yeah, thank you so much sir. And congratulations on very strong numbers, sir. Sir, I have few questions. Please bear with me sir. Continuing on the margins like if I see particularly the machinery equipment margins have in subsidiary has increased significantly. Like in FY24 it was 3%. FY25 it was 8% and in current nine months it is 18% and in quarter three it is 21%. So is it entirely driven by our JV with Hitachi Zozan? So that was the first question. If you can highlight what has led to jump in the margins and how should we look at going forward? What is the order book in Hitachi Zozen as on date and what was the inflow in the 9 months for that? That was the first set of questions.
Aditya Puri
So the margins are. So do you know the margins in the manufacturing or any of our businesses they do fluctuate. And I am not saying that the same level of margins will be continued in the next quarter. It could be slightly worse, slightly better even. We don’t know until we actually finish the jobs and sort of we have a rough idea but we don’t know the exact percentage. But as I had said in the previous, as I’d answered to the previous person who’s asking the question, we will, we hope to maintain a double digit margin.
Margin and margins, yes, in Hitachi Rosen have improved. Improved significantly. But I can’t confirm that the same level will be maintained from quarter to quarter.
Manish Goyal
Yeah, sorry to interrupt sir, but like what could have led to this improvement in margin? Is it because of large exports or any profitable orders? Like maybe you cannot give the future outlook but at least what has happened in last probably two years.
Aditya Puri
So do you know what. So, so over a two year period. Yes, we’ve. Over a two year period we’ve generally improved our efficiency, we’ve improved our capacity utilization. And as you know in manufacturing if you improve your capacity utilization, your profits jump disproportionately. But having said that a quarter to quarter variations happen because you had estimated for a certain price of the raw material, you got it cheaper for a certain order or a certain order went more efficiently or in a certain order there were more problems, it took a longer time or we have provided for liquidated damages somewhere where we’ve got late.
So quarter to quarter, it’s very difficult to give an idea but generally there has been an improvement in efficiency and capacity.
Manish Goyal
Okay, and sir, what is the order book and what was the order inflow and what could be the mix of the order book of Hitachi?
Kishore Chatnani
Sir, we just said is the Hitachi Zosan. The order book as of, As of 31st of December 2025 it is 946 crores. The inflow was in. The inflow in the nine months was 601 crores.
Manish Goyal
And sir, any sense on the breakup? Sir, between exports and domestic.
Kishore Chatnani
Sir, I do have the figure but you’ll have to give me a minute to.
Manish Goyal
No problem. And meanwhile sir, is there any other subsidiary or. JVs have been doing well like we have eagle press in US and. And also a couple of more JVs. So. Or the most of the improvement is primarily from our Hitachi jv, sir.
Aditya Puri
So the Hitachi JV is the. The. The biggest of the. The engineering JVs that we have. The rest of them are much smaller. But all the engineering JVs are. Are in the positive and are in the positive and doing reasonably well.
Manish Goyal
Sure, sir. And sir, one housekeeping question. On the other income, it’s increased significantly both at consolidated level. In nine months it is showing 70 crores versus 18 crores. So what could it be pertaining to forex gains or any one time. And how should we look at it? And even in standalone nine months if we see other income is 149 crores versus 51 crores. I understand that over here we probably book interest income from our subsidiary Caveat Biofuel. So how much is that number? If you can please clarify. On the other income on both Consol and Standard.
Kishore Chatnani
Okay, so yes there is interest income and there is foreign exchange situation in the standalone. Of course there are also dividends from. From this from the subsidiary company. I’ll give you. You’ll have to give me a minute. I did not check questions. But. So. But. But I do have the figures somewhere. You’ll have to give me a minute to find that answer. But meanwhile if you have any other questions please do ask.
Manish Goyal
Yes, and on Caveat Biofuels, what would be our total investments till date because we had shifted the debt from foreign subsidy to India. And also there has been losses which are getting funded. So till date what is the investment from hi Parent books in the Caveat biofuels. And how do we see now going forward that now. Now we will probably have the full season sugar and ethanol season. So how should we look at the numbers of cabbage biofuels?
Kishore Chatnani
Okay, let me give you some answers from what you’re asking. So for the 9th on a standalone basis for the nine months ended December the interest income is 52 crores.
Manish Goyal
Okay.
Kishore Chatnani
This includes interest on largely it is loans to subsidiary companies. There are some. Some interest income on bank deposits as well.
Manish Goyal
Okay.
Kishore Chatnani
Then there is a dividend income of 20.74 crores.
Manish Goyal
Sure.
Kishore Chatnani
Then there is a foreign exchange fluctuation which is about 70 crores.
Manish Goyal
Okay.
Kishore Chatnani
These are the major components of the 149th rows that you mentioned on a stand on basis.
Manish Goyal
Answer on the consolidated number.
Kishore Chatnani
Let you know. Give me a second to open the. So on a consolidated basis the nine months figure is 59 crores.
Manish Goyal
59 crores from.
Kishore Chatnani
Sir, this is for nine months out of this about five and a half crores is interest income. About 13 crores is government grant. And I am still looking for other incomes which is about 36 crores. I will give you an answer in a few minutes after this I’ll give you a breakup of the 36 crores as well.
Manish Goyal
Because standalone has a forex fluctuation of 70 crores gain. So in Consol also you should have a large number.
Kishore Chatnani
So there is a. There is a forex gain on the loans that we have given out to the subsidiary companies which obviously gets eliminated in the culture.
Manish Goyal
Okay. Okay. Okay. Okay. Okay. Okay.
Kishore Chatnani
Right now let’s talk about Philippines.
Manish Goyal
Yeah.
Kishore Chatnani
So. So the plant is running. It’s. The plant’s operation is very good. The, the. What I mean to say is the factory operation, the crushing operation, the recovery of ethanol from the sugar cane as well as molasses steam consumption. All the operating parameters are very good. I do believe that. I mean there isn’t any other plant in Philippines which is run. Which is. The factory is running as efficiently as ours is running in terms of availability of sugarcane. So the sugarcane season started on 17th of December and we have ramped up the sugar chain. We are now reached about 70, 75% crushing capacity on a daily basis.
We are using, We are using some molasses as well. The plant is capable of using sugarcane as well as molasses at the same time. So the season will still run for another two months at least. And of course thereafter the plant will continue to run on mullar.
Manish Goyal
What kind of investment would have gone from our balance sheets?
Kishore Chatnani
Yeah, I’m giving that figure. So. So firstly let me give you that balance figure of forex of the consolidated. So we have checked it out. It is also forex scheme. 36 crores is forex in the consolidated.
Manish Goyal
Right? Right, sir.
Kishore Chatnani
And you were asking about what is the investment? I’ll tell you. The figure of assets held for sale. So assets classified as held for sale is 1097 crores, 1098 crores and associated liabilities classified as held for C. Against these assets they are 26.5 crores.
Manish Goyal
Okay. Okay. So this would ideally mean that almost thousand plus crores have gone through our balance sheet now in form of closer to 11.
Kishore Chatnani
1100 crores please.
Manish Goyal
Yeah right. And incrementally. Now how do we see. Sir, now the plant is operational. So do you think that it will be self sufficient in terms of. Financing itself? In terms of the cost what we.
Kishore Chatnani
Incur in terms of operating. It will. So some of this money that we’ve just talked about is given in the form of a working capital loan. It is a term loan but it’s meant to be used for working capital. So we may expect to give another $5 million at Mac towards working capital loans. And eventually once the plant is operating well we may expect to finance these working capital loans from local banks. At which point of time some of these. Some of our loans may. May come back. It will take some time but it. It should happen in some time.
So besides that I think the plant should be able to meet it on a cash basis. It should. It should be certainly be breaking even in this quarter.
Manish Goyal
Sir, I have few questions. I’ll come back in the queue. Sir. Thank you so much for all.
operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question please press star and one now. I repeat participants who wish to ask question may press star and one at this time. The next question is from the line of Ranjit Shiva Ram from Mahindra Manual Life Mutual funds. Please proceed.
Renjith Sivaram
Yeah. Hi sir. And congrats on good set of numbers and a strong performance given the challenging environment. So just wanted to understand like we are seeing some of these commodity prices are going up and is there what kind of impact do you see? Like will you be able to pass on the current order book which you have? Around 8,700 crore. So how are you placed in terms of the commodity price risk?
Aditya Puri
So as of now we are not seeing too much adverse impact on on our costing. But if commodity prices were to rise any further, significantly rise any further. It might have it. But it’s not. It’s not. Obviously it’s not good that the curve for us that commodity prices have risen. But some of this is factored in.
Renjith Sivaram
Okay, that’s great to know. And sir, this engineers India recently announced they have won this Dumkote order. It’s a large order. So is there any possibility that we might also be one of the suppliers for this Dankote refinery of the order which engineers have won. We also will participate in that.
Aditya Puri
I would not like to talk about specific orders but these sort of orders. We do participate for equipment. We do participate for equipment in these sort of orders. But I would not like to comment on any specific order.
Renjith Sivaram
Okay. And sir, we hear that DHL is having capacity constraints in terms of boilers and in the past we have supplied some of the pressure parts requirement for DHL for their supercritical related equipment. So is there a possibility that we might also. We can also participate in some of these large boiler orders of which phel they are facing capacity constraints.
Aditya Puri
In the supply of equipment and pressure parts. We can do that. Again I won’t like to specifically say about bhel but we certainly do that sort of work.
Renjith Sivaram
Okay. So because we hear that there is a capacity constraint in the domestic market, that’s why a lot of companies are going outside India and giving orders. So in that context there is a possibility that we can also supply some of these parts for supercritical.
Kishore Chatnani
Yeah, there is a possibility. There is a possibility. We do this sort of work, we have to see our shop loading and a lot of other factors. But yes, we do this sort of work.
Renjith Sivaram
Okay. And overall we are seeing 1700 crores of order intake. So what is your visibility? Where are we seeing these orders? Is the private sector improved in terms of their overall capex on the capacity expansion programs and some of these capacity expansion programs we were meant to think that it was delayed because they want clarity on the tariffs. Now the tariff clarity is there. So is it right to assume that some of these private sector capex will start to move forward and we will see a better order booking going forward?
Aditya Puri
I think we’ve had a good quarter this year. This, we’ve had a good quarter in terms of order booking and in capital goods it’s very difficult to predict. So in the future I think I.
Kishore Chatnani
Want to add something to that. So. We were talking about private sector. Yes, the tariff visibility. With the tariff visibility we would expect some of our customer industries, particularly automotive to automotive components to do well and if they do well we should get orders. The rest of our industries, for example steel, cement, they were, they were not really impacted with the tariffs. But let’s talk about our focus area for booking orders and where we really expect to do better than we have been doing and that is in terms of exports. So both in the projects segment as well as in the, in the machinery segment project segment we have a lot of orders which are closer, close to finalization and we see we, we are well placed.
So we do expect our order book to actually grow even further by the end of this year. And as Mr. Puri was saying on a longer term basis, quarter to quarter it is very difficult to predict. But besides domestic private, if you look into Our presentation we have given you a breakup of what is domestic versus export and what is public sector versus private sector. The private sector there, that also includes exports. All our exports are to private sector in those countries. I don’t think we have any export order which is to a PSU or to a government.
A foreign government enterprise. So. But I would expect order booking will in this quarter. March quarter will be pretty good. And after that of course things will play out. But we are looking at the market quite positively.
Renjith Sivaram
Okay. And any particular sector that you can highlight because you have shown the breakup. So steel, cement and refineries are there. Large 18% 19 and sugar. So in this quarter also it was like broad based. Like this in terms of auto booking.
Kishore Chatnani
It was. It was broad based. There is good export order booking this quarter. In the December quarter. We are expecting good export order booking in March quarter as well. Okay.
Renjith Sivaram
And sir, lastly on that FGD project of DHCL where some of the retention money and others are stuck. So any update on that? When do you see that working capital getting reduced?
Kishore Chatnani
Yes. So. So that’s not really bhel. But I don’t want. Okay. So those orders are almost completed. In fact most of 99 of our work was done in some cases we are waiting for some shutdown to be given by the respective factories for us to connect our equipment and start the start the plant. So milestones. Most of the milestones will get achieved during the March. This March quarter. Some of those payments, I do believe about 250 crores of retentions will come out during this quarter. There will be some smaller amounts. Maybe about 100 crores which will be left for the next quarter. So those projects are almost complete.
Okay.
Renjith Sivaram
Okay, sir. And thanks. And all the best.
Kishore Chatnani
Thank you.
operator
Thank you. The next question is from the line of Ravindranath Nayak from Sunidi Securities. Please proceed.
Rabindra Nath Nayak
Am I audible, sir?
operator
Yes.
Rabindra Nath Nayak
Okay. Thank you for the opportunity and good set of numbers. And also thank you for arranging the conference call and hope it will continue in future as well. So that is an expectation. Sir, this sector wise I am just dealing with the consolidated order book of the company. The sector wise order composition has taken a significant shift. If I see that was what it was in the past. So I mean higher export orders, lower government orders and higher manufacturing orders. So there is a significant shift. So can you give a color on that? That is the one question.
And whether we have reached the short cycle order with the composition of short cycle order earlier because long cycle orders were high. So whether we have reached to that level and thirdly other component, other segment component in the order book and the consolidated order book. That is reason substantially. What is that? Can you please highlight on that?
Kishore Chatnani
So the private sector order book is now 85% and the the PSU and government is 15%. So I believe we have been explaining earlier that many of the PSU orders are longer duration. They also involve payment terms where milestone based payments are there which require larger, larger amounts of retention, larger collection period, larger investment of working capital. So we have been consciously trying to have a better balance but higher proportion of private sector orders where typically the order cycle times are shorter and the payment terms are linked to supplies rather than to milestones. So that is about the sector wise between private and PSU in terms of international.
Yes, we have a lot of focus on booking more international orders because there the competition is with better companies in the world. You are able to ask for a little better margin. The payment terms are certainly much better most cases. Many of the cases we are able to get LC’s and therefore, therefore international orders are a little more profitable. So that is about, about. About the geography wise in terms of the. The industry wise. Now this is a resultant figure depending on how what orders we have put, what what we have executed. What is left to execute.
I don’t think there is anything special here. But, but, but for example, let me give you some as you said color. So let me give you some color. So for example, for the power industry we are not really supplying power plants. We are supplying air pollution control equipment. For example for the sugar industry we will be supplying a sugar boiler also or a sugar plant or a distillery. There are multiple kinds of products that we are supplying to these industries. Chemicals and fertilizers. We are supplying something called as a sulfur sulfuric acid plant or we may also be supplying pressure vessels and.
And heat exchanges. Automobiles of course is largely sheet metal working presses.
Aditya Puri
So it’s. Sorry just to add to every industry it’s a variety of products. For instance automobile could be this. It could also be dies for the automobile sector which are castings. So it’s not under each industry category. It could be various products. Sure. I hope I answer answered your question.
Rabindra Nath Nayak
Yeah, no, I am just asking this other segment which is actually 10% of your total order work that has gone up to 21% right now. So which is not in this other three, four categories of five categories of industry. So what is that into?
Kishore Chatnani
So those will be different industries. Small small orders. So we have not, not actually we don’t want to Classify it by the end industry.
Aditya Puri
It could be. For instance, it could be. I’m just giving you an example. It could be a waste heat boiler for a cement plant or it could be something.
Kishore Chatnani
Example, it’s a material handling order for an aluminum refinery. That’s one example.
Rabindra Nath Nayak
Okay. Okay. So you mean to say that the. Your expectation, the short cycle order that we are expecting. It has come to your expectation. What is right now the composition is even to say like that?
Aditya Puri
More or less. More or less. This is some more. We are still executing some large value, some high duration projects. But we are inching closer towards what we wanted.
Rabindra Nath Nayak
Okay. So that means we. We can expect that this type of composition will continue in the coming periods as well.
Kishore Chatnani
Composition? I have not understood the word composition.
Rabindra Nath Nayak
This private sector, the kind of composition that you have right now, that will continue.
Kishore Chatnani
Are you talking about composition in terms of industry usage or industry and the.
Rabindra Nath Nayak
Sector wise and geography wise? That will continue to say.
Kishore Chatnani
Let. Let me say because in capital goods consciously, how Mr. Puri has run the company is to ensure that we are diversified across geographies. Okay. We are diversified across industries. So each of our product lines actually has the capability to supply products for multiple industries. The idea has always been that we should never be too dependent on any particular industry. And that is what you are able to see because there is a diverse. I wish you would have seen perhaps our corporate brochure. Perhaps it’s also on our website. It shows the products that we supply for each of our. Each of these customer industries. And. And in terms of geography. You just asked about geography. Yes. There is an increased focus on booking export orders.
Rabindra Nath Nayak
Okay. Regarding this. What is the order book of expectation for this year and next year consolidated basis?
Kishore Chatnani
We. I mean we don’t have a number to give, but we expect to do well.
Rabindra Nath Nayak
Okay. Okay. Thank you. Thank you very much and all the best.
operator
Thank you. The next question is from the line of Abhishek Kumar from Nesty wealth llp. Please proceed.
Abhishek Kumar
Yeah. Hi. Thanks for the opportunity. Congratulations for the good set of numbers. My question basically on the nuclear power. So with the government, they need to focus on nuclear power expansion and the proposed nuclear Shakti bill. How is I positioning itself to participate in this opportunity?
Aditya Puri
Izec has identified some products and has bid for some products in this area. As of now, I’m not in a position to disclose exactly what. But yes, we have bid for it and we do see some orders coming from the nuclear sector soon.
Abhishek Kumar
Okay. Yeah. Thank you so much. That’s it. From aside.
operator
Thank You. The next question is from the line of Hiten from Sequent Investments. Please proceed.
Hiten Boricha
Hello. Yeah, hi. Yeah, hi sir. Thanks for the opportunity and congratulations for a good set of number. I have one question regarding the guidance you gave the guidance of 7.8percent revenue growth and peg group in last quarter. So considering the good demand and the. Inquiries as you mentioned earlier. So would you like to revise the. Guidance for this year as well as next year?
Aditya Puri
As of now we don’t want to revise our guidance. No, we don’t as of now.
Hiten Boricha
So. But considering the very good growth in first nine months, don’t you think you are doing a kind of conservative guidance?
Kishore Chatnani
Not if you. If you look at the growth this quarter has been certainly good. You look at the nine months, the growth isn’t significant at all but the March quarter as we’ll stick with the guidance we have given earlier. Okay.
Hiten Boricha
Yeah. Thank you.
operator
Thank you. The next question is from the line of Nidhi Shah from ICIC Securities Ltd. Please proceed.
Nidhi Shah
Yes, thank you so much for taking my question. My first question is on the subsidiary Kevite biofuel producers which we were. Which were supposed to be sold. So could you give me some updates on the sale of the subdujing?
Kishore Chatnani
I think Mr. Puri mentioned in his. In his opening remarks as well as in our presentation we have written and the sale could not happen because the customer could not actually mobilize their funds. So we continue to continue to think that we would like to sell that company. It is therefore it’s classified as assets held for sale. They are operating it. I did mention that that the plant is operating well and has already reached 75% capacity utilization. But the intention is to. To sell it in due course.
Nidhi Shah
All right. So at this point we do not have any potential buyers, right? Or, or are you in conversation?
Kishore Chatnani
I don’t think that is a. That is something to be talked about.
Nidhi Shah
Okay. All right. Could you guide us on whether the. The execution for FD for FGD is. Is over. And, and, and basically are there any orders remaining of. Of the FGD in the book which we will not be able.
Aditya Puri
So the FTG orders are progressively getting. Getting completed and a large portion would be completed very soon but there would be something which is. Which would be continuing into the next financial year. And I, I think your question was what we cannot execute, we will execute. There is no question of not executing.
Nidhi Shah
All right. All right. Lastly, would you like to give some kind of comment on the order inflow outlook given that the order book number strong and so has the execution been. The overall environment seems quite positive. Would you like to probably give out a number for order inflow that we would be targeting next year?
Kishore Chatnani
I don’t think we want to mention any particular numbers. It is dependent. Auto booking is dependent on so much on the various industries and the markets that we serve. But I would say we will certainly do better than what we are doing this year or at least the same as this year. We should be doing better than this year.
Nidhi Shah
All right, thank you so much.
operator
Thank you. The next question is from the line of Digand from Green Edge Wealth. Please proceed.
Digant Haria
One follow up, you know, on this commodity prices going up like which is the commodity which impacts us the most. That would be iron and steel. Right.
Aditya Puri
Steel and to a certain extent nickel and then copper and aluminum because of their impact on electricals.
Digant Haria
Right, right, right, right. Okay, okay, okay. And then just like you know, you know, if I look at the last 1012 years, you know, every time there’s a commodity inflation are our projects, you know, our projects or the EPC division does suffer like you know. But do you think that this time we are better prepared for a commodity inflation if it comes.
Aditya Puri
It depends on to what extent it comes. Shorter orders also we have a shorter. We are not taking very long duration project order. So, so to. And one of the reasons why we are not taking those is also because of the unpredictability of input pricing. So the period order duration is much shorter.
Digant Haria
Now I was trying to ask. Sorry, go ahead please. I was trying to ask that, you know, have we done some better like back to back arrangement? Like let’s say if we win an order, you know, maybe we lock in our, you know, iron and steel and copper nickel requirements so that the fluctuations are least. Or it’s not possible given the nature of the business.
Aditya Puri
Not really possible because a lot of detailed engineering happens after the the order is bagged and then you have changes in specifications and all although so you can’t order or book things immediately. You have to do a fair amount of engineering before you know what you have to buy. All right, all right.
Digant Haria
Yeah. Perfect sir. That’s very helpful. Thank you so much and all the best.
Aditya Puri
Thank you.
operator
Thank you. The next question is from the line of my Manish Goyal from Thinkwise wealth managers. Please proceed.
Manish Goyal
Yeah, thank you so much sir. What we see in the results is that the stock adjustment number has gone up further. Now it is at 153 crores. So even in this quarter what some dispatches held up for the Customers and do you expect them to be delivered in the coming quarter?
Kishore Chatnani
You’re talking about change in inventories of finished goods and working programs.
Manish Goyal
Yes. Yeah, yeah. Yes, yes, yes. Sir,
Kishore Chatnani
we do have one particular order which continues to be on hold because the customer side is not ready. But. And he has paid us 95% of the money and he is paying us holding charges. But this increase that you are seeing here, 153 crores. As you’re saying, this is because there is higher order book under execution in the manufacturing business. Both in ISJEC standalone as well as in ISIS Ocean.
Manish Goyal
Sorry, I didn’t get you, sir.
Kishore Chatnani
What is so this increase in work. Work in progress. This is. This is. This is from the beginning of the quarter to the end of the quarter.
Manish Goyal
Right, Right.
Kishore Chatnani
So. So there is higher orders under execution in the manufacturing business. Both in. In. In is the heavy engineering as well as is the Katachi.
Manish Goyal
Okay. Okay.
Kishore Chatnani
There will be some impact in this of. Of the sugar plant also operating.
Manish Goyal
Yeah.
Kishore Chatnani
If you’re looking at the consolidated number, there’s some impact of the sugar plant also.
Manish Goyal
Yeah, yeah. Because the crushing has begun and you would have any inventory build up. Okay. Okay. And sir, so the guidance of 7 to 8% revenue growth was for at the consolidated level. Right, Sir. And if we were to achieve that then which implies that Q4 revenue growth would have to be much stronger. So is it fair assessment? Sir.
Kishore Chatnani
I don’t think I have anything more to say on that. Our efforts are certainly in that direction.
Manish Goyal
Okay. So for next year now with order book has been growing very strongly for last 34 quarters. So should we look for a double digit growth for FY27? Sir, revenue growth of double digits again.
Kishore Chatnani
You will ask me consolidated, isn’t it?
Manish Goyal
Sir, whatever you can provide us perspective. It should be very helpful. Maybe standalone or consult just to get. Because.
Kishore Chatnani
We should be able to grow eight times in terms of revenue know.
Manish Goyal
Okay. Okay. And would it be possible to give revenue breakup? Sir, for domestic and exports earlier we used to give quarterly breakup. But somehow I don’t remember giving it.
Kishore Chatnani
But I do have it. I have the honest on a standalone basis. So give me a second. Yeah. So for this quote and this is standalone for this quarter the Export revenue is 378 crores. Last year December 2024 quarter it was 142 crores. And if you look at the nine months number, the export revenue is 803 crores compared to 354 crores for the nine months last year.
Manish Goyal
Okay.
Kishore Chatnani
Is obviously Domestic.
Manish Goyal
Right sir. Okay. So sir, now what we probably seen that export order booking has been increasing and the share of exports have also jumps to almost 28% of total. And within that probably manufacturing equipment is also growing. So what is driving, which segment is driving order inflow in the international export book? Is it sugar? Because what I see traditionally we have been very strong in oil and gas and chemicals where our order book has come down but other categories have grown. So just curious to know what is driving India exports market.
Kishore Chatnani
So the project business is booking orders for boilers, small power plants, sugar machinery, those kind of equipment. That is, I mean obviously the manufacturing business is booking orders for presses but they had been putting that earlier as well. And you know these are in capital goods, these are, you don’t know when the customer will really decide those orders. But we are making a lot of efforts to grow the export order book in both, both the segments.
Manish Goyal
Both the segments we are focusing on exports besides the domestic market, we are focusing on export exports and spending a lot of time and energy on that. Okay, right sir. And sir, if private sector auto booking order book has grown for us, so will it be largely fixed priced in nature and does it probably have risk on the margins if commodity prices go up?
Aditya Puri
They are fixed price contracts. They are fixed price.
Kishore Chatnani
Let me, let me add to what sirs just said about the way we do our risk management and you’re again talking about commodity one, one somebody else also talked about commodity. So particularly in the, both for the manufacturing business as well as the project business before we book our order we have a lot of back to back offers from our suppliers. So and the understanding is that if we get the order then they will get the first right of refusal. The supplier will have a first rate of refusal if we can match the best price that we can, that we, we get from the market.
So that is, that is one way of, I think Mr. Puri also explained that when you book an order, if there’s some period of time when you’re doing the designing and when before you’re ready to place our place your orders on your suppliers to that for that period of time we are certainly exposed. But most of our risk we get covered by these back to back office from our suppliers. The real risk if is on a small portion of structural steel kind of items which have to be supplied to the site late. So for example if there is an order which is for 21 months, you might actually be supplying it, supplying those items after 12 months.
So to that extent on maybe less than 10% of the order value we are exposed to the commodity price risk.
Manish Goyal
Okay, sir, and last question, sir, on coming back on the margins now with our order book mix seems to be much better with higher machinery, higher exports. So would it be said that for us we can probably aspire for higher margins in terms of like historically we have been doing 8, 9% EBITDA margins at operating level at standalone, which is a combination of both machinery and projects. So should we be able to now probably have a steady state margins of 8, 9%, sir, at EBITDA level, Sir, I’m just talking about our core project business, excluding sugar ethanol.
Kishore Chatnani
Projects. Business margins 8. 9%.
Manish Goyal
No, overall, sir, projects I believe we probably are at price version 5% and machinery we are at. Maybe you can guide us. How should we look at it?
Kishore Chatnani
No, I think what, what you’re saying 8, 9% is a fair, fair thing to expect.
Manish Goyal
Okay. Okay. Thank you so much. Thanks.
operator
Thank you. Ladies and gentlemen. That was the last question for today. I now hand over the conference to management for closing comments. Over to you, sir.
Aditya Puri
Thank you everybody for being here and all the best. Thank you very much.
operator
Thank you on behalf of ICIC securities limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.