Jash Engineering Limited (NSE: JASH) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Pratik Patel — Chairman & Managing Director
Analysts:
Unidentified Participant
Siddhesh Chavan — Analyst
Presentation:
Siddhesh Chavan — Analyst
Good afternoon everyone. I’m Siddish Shawan from Ernst and Young and I would like to welcome you to the Just Engineering Q3FY26 earnings conference call. To ensure a seamless experience, all participants are requested to remain on mute during the management’s opening marks. There will be a dedicated Q and A session at the end of the presentation. If you wish to ask a question during a Q and A, please select the Raise and option under the Reaction tab of the Zoom application. We will call out your name and then request you to unmute yourself to ask the question.
While asking, please begin with your name and your organization. Please note that this conference is being recorded. The recording will be made available on the website within a day and the transcript of the call shall be made available subsequently to take us through the results and answer your questions. Today we have the top management of Just Engineering Ltd. Represented by Mr. Pratik Patel, Chairman and Managing Director and Mr. Dhanmendra Jain, Chief Financial Officer. Now I would like to draw your attention to the safe harbor related to today’s earnings call. Comments made during the call may contain forward looking statements that may involve known or unknown risks, uncertainties and other factors.
It must be viewed in conjunction with our business risks that could cause future result, performance or achievements to differ significantly from what it is expressed or implied by such forward looking statements. After the end of this call, if you need any further information or clarification, please do get in touch with me. With that said, I will now hand over the call to Mr. Pratik Patel. Over to you sir.
Pratik Patel — Chairman & Managing Director
Good afternoon everyone. I’m thankful to you to attend this investor call. Based on the first nine months performance of the company, I am sure that you must have gone through the presentation which we have uploaded onto the stock exchange. However, we are running the same year for explanatory purpose as already. As already. As already seen from the results we have had a very marginal growth in revenue this year and the reason for the marginal growth is well known. It was the U S Tariff which had resulted into slowdown in delivery from India to US and as a result of that we had significantly low revenue towards us.
However, the however the the drop in U S revenue was somehow fulfilled by the increase in domestic revenue and so overall even though the drop is from our projection, but actually there has been some growth, there is significant drop as can be seen when I present later on there is significant drop in PET or beta as well as gross profit margins. But this is also an expected line and I hope that by the end of the year when we announce our final results, we expect this the path to be in the range of 9 to 10%, which I believe is significant because in spite of such a big effect of the tariff, we are still able to post advantages of 9 to 10%, which I think is tangible.
As can be seen from our experience of us. I tried to earlier I tried to diversify the business in a way that none of the geography has more than 35% market share and in US we are around 35 to 40% market share. But the tariff has taught us that we should focus more on diversifying in a way that we are no more held ransom to future happenings in US. As a result of this conclusion, we had decided to acquire additional businesses which can bring more revenue to the company as well as strengthen our US of UK operations by acquisition of Pen Stop uk.
The west acquisition is already done and I think the Pen Stop UK acquisition is also on the verge of closure. If everything goes well, we should be able to do it within February, if not then in March 26th. However, these two is not enough, that is the acquisition of Westec and Pesto is not enough. We need to become stronger in other geographical areas. Middle east is one of the fast growing area and in Middle east we have decided to set up a company. Already we have received permission for the company setting up and we are now applying for land.
And once we get the land we should be able to build up a plant and start commercial operations in Middle East. Why is this important? Many Indian companies including Wabag and Iron Exchange and Tecton and so on are presently doing jobs in Middle east. And for those jobs, sooner or later they will all be requiring Saudi or Middle east value addition. And when that happens, we aim to be ready in Middle east to be able to cater to this business of our local EPC contractors. In addition to the business of other EPC contractors worldwide, we will also be ready to serve our own local EPC contractor.
We already have a very good relationship. Having said this, coming back to the US trade deal, it has been agreed but it is not yet signed. However, based on whatever has been agreed, it looks like the uncertainty is gone. It looks like now we are back on the original situation in America with lower tariff and stability of tariff which is more important than even lower time. And once that takes place, then our long term outlook on growth again would be in line with what we had projected a year back. Next, coming to the financial snap plots, you can see our growth in revenue has only been 3%.
However, there has been a reduction in gross profit margin in EBITDA as well as profit before and after tax. As already mentioned by me before, I am not too much worried about it. This is something on expected lines. We still expect to end the year with a PAT of 9 to 10% on the revenues of between 78790 crore to 810 crores. On the standalone you can see we have had a small drop in revenue. This drop in revenue of just engineering has been because of a huge reduction in exports to Rodney Hunt. So our Rodney and business from India to America has been affected by close to 2530 crores and as a result of that the domestic revenue has gone down little bit.
However, it was made up by. Sorry, the export revenue has gone down by little bit but it was made up by increase in domestic revenue. Revenue also has gone down little bit, Rodney and revenue is affected tremendously and the Waterfront revenue has gone up at the end. I would like to say that I’m not too much bothered about J Engineering and super engineers because our order booking is strong and because of this tariff issue a lot of projects everywhere slowed down. But now I think slowly, slowly the world is coming to reconcile with whatever the revised tariffs are there.
And with that everyone is taking a decision to go ahead in case of Waterfront. We are doing well, we expect to do well. I think this year we may break even at the end of the year or have some minor losses. But what is important is with PenStock UK and Waterfront being together, I expect a very positive and very good outlook for this company in future. This shows the breakup of our business product wise as well as geography wise. As you can see the USA is close to 35% now. Earlier it was higher. We would like something like this to be in the future that India is around 40%, 40, 45%, America is around 35% and balance is coming from other territories.
This gives our consolidated results for quarter three as well as corresponding quarters last year and nine months for 25 as well as 26. As I said in the beginning, we still expect by the end of the year we would have net profit of 9 to 10%. Our order book has been continuously growing. As of first February our order book is close to 923 crores which is reasonable growth over last year. And so I think that we are on the right track. Yes, we had slowed down this year in booking our orders, but at the end of this financial year you would be again going strongly forward in America and so Our order book will continue to grow.
Our consolidated order book position is 923 crore of which 653 is outside India and 270 crore is in India. All our divisions, all our subsidiaries have good order position. And so as far as order book is considered we are doing quite well. Next. Our orders negotiated and under negotiation is also quite good. Generally the month of February and March are weak little bit. However it seems that we we would be still doing a respectable booking in this month. In the beginning of the year we had given a combined revenue forecast of 860 crores. I regret to inform that due to tariff it is not going to be possible to achieve revenue like that. We have as can be seen we would be having a drop in revenue at Rodney Hunt which is significant. It would be to the tune of 70 to 80 crore.
Because of that drop in revenue at Rodney and the revenue of just engineering also will drop little bit in comparison to the forecast. This is because our export from India to us was stopped or delayed for a number of months because of uncertainty related to tariff. Now we cannot make it up so fast. We are trying our best but in spite of that we will be losing around 50, 60, 70 crores in revenue. At Rodney Hut at Mahamashirenbau we will be meeting whatever you had projected. And at Waterfront also will be meeting whatever we had projected.
So I expect anywhere between 775 and 800 crore as our consolidated revenue for the year. With revenue drop being maximum for export on account of Rodney Hunt within India we expect to do more than what we had projected. However outside India we would have a drop on account of the prices we had faced in America. Coming to updates I have informed about two very good development. One is about setting up of Ronan Mar Industries in Saudi Arabia. Saudi Arabian market is booming. A lot of investment is happening. Not only Saudi Arabian business but also in gcc.
Lot of investment is taking place by setting up a plant in Saudi Arabia. We have two benefits. One is price benefit because when you do production in Saudi Arabia localization benefits are given also to contractors, EPC contractors and at the same time we get price preference also. So setting up this unit in the long run will spare up our capacity in India and also enable us to do more business and get more revenue from Middle East. The most important part is the India US trade deal. It has been very favorable. We I’m pleased to announce we have already last week.
This week. Sorry, this week we have already cleared on last week we have already cleared two consignments at 25% tariff rate. And we were informed by the customers that once the ratification of the deal is done then we should be able to clear at 18%. And so it seems we would be back as it is earlier even though the tariff rate has gone up. But that doesn’t affect us. We were never affected by the tariff. You are affected by the uncertainty of tariff that you do your costing considering 0% and then 25% is applied. Then you do your costing considering 25% and then 50% is applied.
And to top it up, Mr. Trump said that I may apply 500%. That put a scare on us and stopped us from taking any major orders in America. Now that the deal is signed, I am quite confident that America would be like normal for us. And in next year we’ll back to the growth path what we had projected before. I am pleased to announce that our new plant necessary is now ready. It will go on commercial production from the beginning of April. This would free up lot of spare capacity for us and as a result we can aggressively take more orders in America as well as in the various other export markets.
This is the third plant in Pitampur and with these three plants done, the Pritampur plants have reached a capability of anywhere between 300 to 400 crore depending upon what is the the pickup of the material which is ready. Our biggest problem has been material which is ready but clients don’t pick it up. I hope that we are out of that problem now because once the tariff issue is gone, lot of material has started moving everywhere. But. But with this new facility, even such type of interruptions we have spare space to manage. And so I believe we are now back in each way for export business.
The company has been developing new products as well as been doing special projects. These explain some of the projects or the products which we have developed. We are doing great in special gates for desalination plants. More and more projects in Middle east and in India are coming with desalination. And I’m pleased to inform that we are considered one of the best supplier for these projects. Desalination projects. We have also developed special search vessel ladder type as well as twin screw conveyors for sludge handling. All these new product development will go a long way in increasing our revenue in future future.
This showcase some of the projects which we have done worldwide. Very important is the MST missile project and the Mahasawat and the T project. What is important is the varied type of equipment which we have supplied to this port. So we have supplied cast iron Products we have supplied stainless steel products we have supplied aluminum products we have supplied composite products. Different type of screens shows the wide variety of material which can be given by a single company to a complex project. And that is our strength. And on that strength alone we are assured of a bright future in the export market as well as in the domestic market.
In future. I’m pleased to inform that the 2040mg Regala plant which has installed a 37kW RPM screw turbine is running very well. This is the first commercial generation of electricity in STP other than the one which we had done in Indore. And this will establish that all STPs should offer this technology in future. Another project which again I would like to tell about is the civil treatment plant at Bandra where we have supplied the screens. Where we have supplied the fine screen, the code stream, the gates, the stop loss, the roller gates, etc a wide range of products in a single project.
And that is our strength. And that is why at midnight it was and. And this strength no Indian company has. And that is why when we were facing SADBAG due to exports in America the Indian market has come to our rescue. And our growth has been significant in Indian market. And. And as a result of that the revenue shortfall has not been major. With this I would like to thank you once again for patiently listening to me. And if anyone has any questions it would be my pleasure to attend to the state.
Siddhesh Chavan — Analyst
Thank you. We’ll now begin the question and answer session. Gentle reminder to all the participants to ask a question please select the raise hand option under the reaction tab of the Zoom application. We will now wait for a moment until the question queue assembles. We’ll take the first question from Chitin Parma. Please go ahead.
Unidentified Participant
Good evening Justin Pratik Bhaiji and all. You have given all the reasons for due performance and that is. I mean that is how business goes. We understand that. Will you be able to give projections for next year? What are the things? I joined the coin all a bit late so I don’t know whether it was there in the presentation or not.
Pratik Patel — Chairman & Managing Director
So I think we had given our five year projection sometime back around a year back and he’ll be back to maintaining the same. So there has been no. This year was bad because of the US tariff. But now the. The order book in US is $42 million. So it is only about our starting production. There is no. No stop gap as such. We have to start the production and start shipping material. We now know fortunately that the tariff is not going to exceed 25% even in those project where we had considered 50%. So we’ll be saving some money.
What we lost this year, we’ll be saving next year. So we are back to normal. If nothing another calamity comes some war or something. We are normal to maintain the same projections which we had given before.
Unidentified Participant
So basically this year’s blip will not affect what projection we are given for next year. Is that what. Okay, perfect. Thank you so much. And also with Waterfront and now with the uk UK deal also signed, do we see any advantages of that happening to us on Waterfront?
Pratik Patel — Chairman & Managing Director
See, understand UK deal was done for two reasons. One was to strengthen Waterfront because they were in the north. The, the main clients are in Midlands where this new company is. So the clients had reliability issues on service and after sales. That is taken care of by acquisition of this company. But what is very, very important is the list of UK has a design which is unique and that design I visited UK last month and that design I would like to roll out worldwide. That is something which is very going to be very unique for future.
So the acquisition not only brings stability to Waterfront and penetration in the Midland market, but also brings new product design to us which is like Lego blocks, very fast and needs very few people and can help me roll out this product. And it is a very competitive product worldwide.
Unidentified Participant
Perfect. And a little more on the EU deal. Does, do we have any, do we get any benefits of that in Josh?
Pratik Patel — Chairman & Managing Director
I think we may get benefit but most important is there is no limitations for us compared to what was before. So that deal that way is positive for us.
Unidentified Participant
Great, thank you. Thank you so much. I wish you all the best. I mean we know you’ve been very, very transparent over the years and I mean generally there is. We generally won’t even need to ask you any question because you have a Q and everything cover that. So heads off to that and I, I really appreciate the transparency you’ve shown over the years and wishing you all the best. Thank you.
Siddhesh Chavan — Analyst
Thank you. We’ll take a next question from Rushab Shah. Please go ahead.
Unidentified Participant
Yeah, my first question was how do you see the investments on the private side, especially in the semiconductor business? Do you think this could be large opportunity business for us going ahead?
Pratik Patel — Chairman & Managing Director
Semiconductor business is for very fine quality of water. We are not into that. We are into water. They will need water. And when they need water, whatever equipment are required to collect, transport and treat that water, we are doing. But high treatment is a different subject altogether. We are not into that.
Unidentified Participant
The Next question is a couple of quarters back we had talked about filling the gaps in our product portfolio on the conveyance side of the business. So any update on that?
Pratik Patel — Chairman & Managing Director
No, I would say we are talking with few companies and few people to add such products. But as of now I have got nothing to announce.
Unidentified Participant
Okay, sir, question. The next question is how big is our OMN business? Because the replacement time for gates as you say is 25 to 35 years. But ONM would be a high part of it. And for and for the other product categories, what is the replacement time sir for let’s say valves and screen? And how big is the OM business for you for those products?
Pratik Patel — Chairman & Managing Director
So the OM business is not big for us, it is 5 to 10%. However, what is the life is 25, 30 or sometimes faster? It is worn out faster based on the type of application. So I would say we are mostly going to be in project business. OM will depend upon certain products which needs more OM and certain products which needs low O and M and low after sales requirement.
Unidentified Participant
Okay, last question. Since we don’t have pass through mechanism on projects, we have a fixed price projects. So what happens when the raw material prices are volatile? Volatile. Just asking this question from the risk management perspective of the company.
Pratik Patel — Chairman & Managing Director
See, when we are bidding for the project, we are always forecasting what would be the pricing of the raw material and accordingly we are taking it in our estimates. However, if a project is long gestation, say two years and something happens in between, like Covid happened, then it is very difficult for us to project that and cover for that. In that case we take a hit. However, if you go through a reference you will see that whenever something like this has happened, say for example current when the U. S tariff hit us, the US dollar to Indian rupee was something around 82, 83.
Because of the tariff, the Indian rupee began and became 91, 92. So whatever we lost is partially compensated by the depreciation of the rupee. And this is something which has been also during the raw material crisis. Whenever the raw material peaks, you will see that generally the rupee also depreciates. And that has been written by me in my FAQ as well. So generally because our export is at a very high level, the drop or rise in prices is always in one way or other covered partially by the drop or increase in the rupee value.
Unidentified Participant
Remember, since we don’t have the pipeline valves and the commercial valves for pipeline and about a year back we were visited by a French company. So any progress on that? Front are we looking to add those products in our product portfolio?
Pratik Patel — Chairman & Managing Director
We are looking but until an understanding is not achieved we. We cannot say anything.
Unidentified Participant
Oh, thank you so much.
operator
Thank you. We’ll take a next question from Puna. Please go ahead.
Unidentified Participant
Hi Pratik. So very, very good evening. So my first question is. Out of the 370, 380crore of order book of which is has US exposure how much of it is to be executed by FY26 and how much of it will spill over to Q1 of FY27? Because I believe that now that the trade deal has been announced we might, you know, try to push more shipments out in Q4 which will lead to higher sales in Q1 because once the goods reach there and it’s recognized as sale. So Q1 will be really good for FY27.
Pratik Patel — Chairman & Managing Director
Should be good material. A lot of material is under shipment already and lot of material is expected to reach shortly to us. And with 25% or maybe if you are lucky 18%. Obviously whatever we had held up, we would now like to produce fast and scent. So next year we hope to have a good year in America. Just to give you an indication, last year we did 36 million revenue in America. Yes, this 36 million dollar has come down, will come down this year to something like 29 million. A 7 million dollar draw because of this problem.
So next year obviously with the order book and everything in hand we will go aggressively to build up our U. S business once again.
Unidentified Participant
And sir, my next question is that are we, do you think we are late to set up, you know, a factory and production in Saudi? I mean a lot of orders have been rolled out and if you know.
Pratik Patel — Chairman & Managing Director
See it’s, it’s never late. But yes, if you are thinking that someone has gone before us then yes, maybe we are led, I think in the. The products which we make. There is no. There is only one company in Saudi Arabia today. So if we are able to start production then we will be maybe second or third company.
Unidentified Participant
Okay, so it’s not that we’ll be losing out on much business. And if we are set coming up next year in 2027, we may lose.
Pratik Patel — Chairman & Managing Director
Some business because of localization issue. Okay, I would like to clarify one thing. If I get the land and if I submit the drawings and if drawings are approved then one year from that time I can take the benefit of localization by producing the same equipment in India also. And export it.
Unidentified Participant
Okay, so my last question is how much is the order book of Westech now? That we have acquired 90 of it. 45 crore to be executed by FY27 or what is the gestation period for the products?
Pratik Patel — Chairman & Managing Director
20. 25 crore will be executed. 15 crore would be executed in remaining two months and.
Unidentified Participant
Okay.
Pratik Patel — Chairman & Managing Director
And balance will carry forward.
Unidentified Participant
Okay. So I’ll fall back at the queue for more questions.
Siddhesh Chavan — Analyst
Thank you. We’ll take a next question from Philip Shahoom. Please go ahead.
Unidentified Participant
Yeah, just one. You know hygiene question. If we are going back to business as usual next year is it fair to assume that our operating model will also become same as earlier and we will make around 20 to 24% operating margin and 12 to 14% PAT margin going forward next year onwards?
Pratik Patel — Chairman & Managing Director
Yes. If everything works out it should happen like that.
Unidentified Participant
Fine. Great.
Pratik Patel — Chairman & Managing Director
I will tell you one thing. There’s a good possibility. I cannot forecast the future so accurately today. But there’s a good possibility. Possibility. Because those projects which we had taken concerning 50% tariff will now go at 25 or 18%.
Unidentified Participant
Oh great. Yeah. That’s good. That’s good.
Pratik Patel — Chairman & Managing Director
So we were hit this year. We will get some benefit next year.
Unidentified Participant
Very good sir. You know including the current years acquisitions both in UK and in India. I. You know we would add around 100 crores of inorganic business next year. 70, 80 crores.
Pratik Patel — Chairman & Managing Director
I would say 50 crores.
Unidentified Participant
Okay. Okay.
Pratik Patel — Chairman & Managing Director
Please understand one thing. Whenever you acquire a company everything looks very rosy. But when then we go in then we have to re establish our systems on profitability, our systems on how to do business etc and to rebuild the team. And that takes time. So my experience in any acquisition has been we think we’ll be able to do everything very fast. However once we go in we realize these are the lacuna. This has to be taken care of. This is the weakness of the team that is to be taken care of. So to rebuild the team to take over all the process and system and convert them to what we have in indoor.
It’s not easy. It takes time. So I would say in any acquisition my experience is first year is gone in rebuilding the company or re organizing the company. And then next year onwards you start catching up. And then the third year is when the peak reaches.
Unidentified Participant
Sure, sure. So. So does it also mean that we might see some profitability hit in UK and you in.
Pratik Patel — Chairman & Managing Director
In Westec in uk Whatever hit we had to take we have taken now it is on.
Unidentified Participant
Sure, sure.
Pratik Patel — Chairman & Managing Director
Pratik. By the second question is we are having around three SCZ assets in India, one in us, two in UK and one in Europe. And now we are Going to have one in in Saudi. So that’s like most of our manufacturing assets are now for export oriented or in. In other countries. So is it fair to assume that the current breakup of 540 and 340 will grow you know much faster outside India than in Indian revenue? Because you know India doesn’t produce I.
Pratik Patel — Chairman & Managing Director
Would say be steel whether it is Saudi Arabia, whether it is UK or whether it is America. See the concept of setting up these plants there are that fast to deliver and simple products would be made there. High margin complex products would be made in India. So when we see Rodney and 36 million revenue, 9 to 10 million was produced in India. When you see UK 40, 45 crore, 15 to 20 crore was produced in India. So this will still continue. We will start means by setting up a unit abroad. Doesn’t mean that production will be shifted completely there.
If they need something fast in three months, four months time it will be produced there. If there is a big project needing lot of people and if I don’t have those people there, then I will produce here.
Unidentified Participant
Sure. Yeah. And we had, we had plans in, in Houston. I if I remember for us which I think we didn’t discuss much because of whatever is happening there. So. So what is the plan for us for next three to five years in terms of investments?
Pratik Patel — Chairman & Managing Director
So Houston planned. We had placed the order on a contractor. He has gone bankrupt and he has closed the company. So now we are searching another contractor and we would be able to get his pricing in this month. And we negotiate a new job with him in order with him next month. And we expect to start in June, July the construction and commission the plant next year before September.
Unidentified Participant
Sure. So and it will be a office and manufacturing.
Pratik Patel — Chairman & Managing Director
No, only manufacturing office is dropped. With this shock of one one year we have dropped the office. Maybe once we are back on this high growth profitable path then we’ll think our office.
Unidentified Participant
Thank you pr. It’s very helpful. Thank you.
operator
Thank you. We’ll take a next question from Sahil Doshi. Please go ahead.
Unidentified Participant
Hi sir. Good afternoon and thank you for the opportunity. So firstly just want to check, you know last quarter you had said a legal opinion was obtained that possibly the duty which you obtained in the US there was some benefit which you could, you know, get back. So just wanted to check that.
Pratik Patel — Chairman & Managing Director
So two consignments have already been cleared last week with 25% duty. Not 50%, 25% duty. So. So based on that legal opinion only and if the tariff is reduced to 18% based on the Ratification of the deal, then we will be all future consignments which are also already on the way would be given at 18%.
Unidentified Participant
Okay. No, my question was, you know, you alluded to the fact that the 50 tariff, which you had paid in certain projects, there was a scope of us getting it back, you know, based on some legal opinions.
Pratik Patel — Chairman & Managing Director
So that, that we don’t know. To get money out of any government is very difficult. So. So whether that will happen or not, I don’t know. I think what I had said that point of time was not that I had said that instead of 50, we had, we got a legal opinion that we can go on. Reciprocal tariff, not iron and steel tariff is not something I discussed. It was the reciprocal deri was 25% which was increased to 50%. But iron and steel, that it was 50%. So I had alluded to this, that the legal opinion is that we can give a 25 tariff instead of iron and steel theory.
Now that the reciprocal tariff has been reduced from 50 to 25, we have been able to get two consignments here at 25%.
Unidentified Participant
Understood, sir, thank you for that clarification. So second on the U.S. like you said, because of the tariff uncertainty, you know, your business plans were, you know, on hold and you were not too aggressive in terms of order booking. So how much do you believe that, you know, orders you would have passed or business you would have let go because of this? And once that clarity has emerged, how do you see the US over the next one year? Because you know, the order book in the US for the last one year has more or less been stagnant in that.
Pratik Patel — Chairman & Managing Director
Yeah. So in the month of January, we have already booked more than 3.5 million dollar orders. So ultimately we decided that 50% is going to remain 50% and will not increase. So we started taking orders. We have taken few orders of 1 million plus 2 orders or 1 million plus last month. So I would say whatever, maybe we have not taken 7, 8, 10 million dollar worth of orders, but now from January we have restarted taking orders. And so I don’t see that in future we’ll have any shortfall on that card.
Unidentified Participant
And just lastly, sir, you know, in previous interactions we’ve said at one point of time that we could make 9 to 10% margins in Rodney Hunt at a optimal level. In that sense, once we start scaling and you know, going back to that number with the new, you know, in the environment, etc, do you really think that number is yet achievable?
Pratik Patel — Chairman & Managing Director
Yeah, that is achievable once the revenue growth. The revenue growth has nothing to do with tariff. Please understand whether it is 25% tariff or 50% tariff, we are comfortable at that time. We are not comfortable when we estimated 25, when it becomes 50 or when we estimated 15, it becomes 100 uncertainties. The uncertainty of Terry, because when you do costing you code to client, you have to add tariff in it. We add the tariff code to the client. The order comes in two months time and the execution may take six months to one year. And before we execute the job, if the tariff increases, the heat is coming on the company.
So margins was never an issue. It was about revenue because of tariff. Revenue goes down. As revenue goes down, overhead percentage increases, profitability goes down. As revenue goes up, costing remains same, overhead goes down, profitability goes up.
Unidentified Participant
Sure, sir. And just lastly sir, on Shipa, just wanted to check, you know that’s fallen. I mean we’ve seen a dip there. Could you just talk about what’s really transpiring there and what’s the outlook on ship.
Pratik Patel — Chairman & Managing Director
So we set up a new plan for ship and we put a new theme in place for production because it’s a big plan. And as I said in our industry the biggest problem is manpower. If you don’t get the right manpower, you will suffer. And we had lot of problem with the manpower. The quality was not coming out, lot of customer complaints were there. So we had to send a team from Indore, train a team in Indore and send a team in indore. So first 10 people have already started working in Shipath from 1st of February.
And slowly, slowly we will set up the complete team in Shipat through trained people sent from Indore. As a result of that we have had some setback on deliveries. But quality is more important than revenue because once you lose the trust of clients then you are in a deep problem. As a result we have had some drops at Sripad but we’ll recover soon.
Unidentified Participant
Sure. And now with this Westec, you know, since they were outsourcing a bit of it. When do we see that alignment coming through by 27 or that should be a year later.
Siddhesh Chavan — Analyst
A year later. As I said, any new company you take over. Our first meeting at Westech is next week. So we will be going and reviewing all their operations and what changes needs to be done and all strategy discussions and then we need few months to implement it and thereafter the results will come six months or eight months later.
Unidentified Participant
Understood sir. Thank you so much. I’ll come back in the queue.
operator
Thank you. We’ll Take a next question from Nirmal Kumar Jain. Please go ahead.
Unidentified Participant
Yeah, thank you so much. Pratik by Darman by I was at the plant recently, three days back. Thank you for kind of organizing the visit and I was amazed to see the level of motivation in the employees at the plant. So while I was visiting the plant, there are products being made for NPC IL and these filters being manufactured. So I have like two, three public questions. How has the perception of just probably changed once we started supplying to npcl. So how, how that perception is probably helping us to get probably new orders either in India or outside India? That is my first question.
Pratik Patel — Chairman & Managing Director
So can I answer question by question?
Unidentified Participant
Yeah, so yeah, so second question. Yeah, the second question is about the, you know, this filters. So what is the opportunity size for selling disc filters in India? Those are my two questions.
Pratik Patel — Chairman & Managing Director
The first question is npcil. See NPCIL experience will not go outside India means when you work for npcil that will not get me business outside India but it will definitely get me lot of business within India because NPCIL needs good supplier and today they consider us as one of their top suppliers. So with the nuclear environment opening up for private industry in future, we expect our experiences with NPC and their experience with us to be very positive. As a result of which both would like to go ahead with this type of business which is highly critical.
It’s not an easy business, highly critical, but if you can master it, you have a huge opportunity in future. But that is only domestic, nothing to do with exports. Coming to your second question, this filter we have already mentioned in our FAQ etc, what is the potential for this filter? We do not make which size this filter which are made by other companies. We make small disk filters and we expect we domestic and export put together 20 to 25 crore worth of business.
Unidentified Participant
Okay, yeah. So I have one more question to add here. I understand that we have the average order size that we have ranges from you know, 1 crore to 4 crore. But I have a kind of question wherein where we get bigger size orders like say the kind of NPCL orders where we get like 50 crores, 60 crore, 70 crores kind of order size. Is there any way of kind of having some pass through clause wherein the material cost increases and you know something of that sort is possible for the.
Pratik Patel — Chairman & Managing Director
Big size orders it is very difficult. However, please understand that we have stage wide payment. So we get 10 or 15 or 20% advance and then balance 30 or 35% before, before by the time the material is ready for inspection. So because we are getting stagewise payment, sometimes that also helps in mitigating the price rises.
Unidentified Participant
Okay, understood. Thank you very much. Thank you very much.
operator
Thank you. A gentle reminder to all the participants to ask a question, please select a resign option under the reaction tab of the Zoom application. Take a next question from Naveen. Please go ahead.
Unidentified Participant
Hello. Am I audible?
operator
Yeah.
Unidentified Participant
Yeah. Thank you for the opportunity. Sir. So you previously spoke about the demand environment because of the tariff the decision making had slowed down. Now with the deal sign, how is the demand environment looking outside us Also because even in the outside geographies the decision making because of the tariff at they had lengthened.
Pratik Patel — Chairman & Managing Director
It is not going to be improved so soon. In America also slowly, slowly things are improving. The daddy was a shock for everyone. Even for EPC contractors in America. Because they were getting something at 3% and all of a sudden now it is coming from Europe in 20% and so elsewhere at higher rate from China or India or anywhere. So everyone have suffered. However, business has to go on. So all new projects people have added higher tariffs and bidded and got the job. So now it has stabilized.
Unidentified Participant
And my second question is regarding integration of Westech. You mentioned previously it will take some time. But will we be beefing our team at our end? Because they only had a sales team and major production was outsourced. So. And their team consisted of seniors. So will we be beefing the team at our end?
Pratik Patel — Chairman & Managing Director
No, no, no. We will not be using the team at our end. We will be rebuilding the team there. So we. We are already. We have already sanctioned recruitment of few key people in marketing to go for faster growth. So we. We have to build the team in Western. We not in India. Indore want to put our team. One or two people from our team may go there. But other than that it is Westech team. And we’ll strengthen that team by recruiting best competent people available wherever we feel we need.
Unidentified Participant
And will you be retaining the Westech brand or it will be marketed under.
Pratik Patel — Chairman & Managing Director
Just under just. That. We can put.
Unidentified Participant
And you spoke about rupee depreciation benefit. Could you quantify the number?
Pratik Patel — Chairman & Managing Director
I think there is a. In our balance sheet you can see the foreign exchange gaming realized unrealized around 4 to 5. It is around 4 to 5 crores. Okay.
Unidentified Participant
That’S all from my answer. Thank you.
operator
Thank you. We will take a next question from Kunal. Please go ahead.
Unidentified Participant
Yeah. Hi sir. I just have two questions. One is. Sir, I think last call you mentioned that there was a client from Vietnam who was not taking the Delivery of the order. So because of that. So how is the. How is the scenario in the Southeast Asian markets? I see some kind of growth decline. I think the guidance previously was about 15%. Now it’s reduce. I mean, I think. I think this year we’ll close around 6,7% growth. Am I right?
Pratik Patel — Chairman & Managing Director
Yes.
Unidentified Participant
So how do we see this going ahead? Is that pocket also showing some signs of sluggish growth?
Pratik Patel — Chairman & Managing Director
Every market like whether it is Vietnam. Vietnam. I’m glad to inform Vietnam material will be living in a week or so. But every market has gone through trouble once the tariff feed because Terry does not just. It was the market confidence and market sentiments. And so everywhere things that slowed down, whether it is Vietnam or whether it’s Hong Kong or Singapore, everywhere some or other problem has occurred. And so subsequently the tariff everywhere has come down. Okay. Except India. India has happened now. So things are now stabilizing and maybe we’ll all be reconciling to the new tariff and planning our activities according to that.
Unidentified Participant
Okay. And sir, just one question. So why have we like named the subsidiary Rodney Hunt Mar in Saudi? Is that name more like is it beneficial for us in some way? Why? Why not? Why not, Josh?
Pratik Patel — Chairman & Managing Director
Because just in Saudi language is Jash same as.
Unidentified Participant
Oh, okay.
Pratik Patel — Chairman & Managing Director
So they do not allow me approval of that name.
Unidentified Participant
Okay. Okay.
Pratik Patel — Chairman & Managing Director
I was in Saudi Arabia for three days. I tried everything. Finally I got these two names with. With the possibility that tomorrow we will bring just also into.
Unidentified Participant
Okay. Okay, sir. Yeah, thank you.
operator
Thank you. We’ll take our next question from Prashant Sheth. Please go ahead. Request that you unmute yourself and ask the question. We’ll move on to the next. Please go ahead.
Unidentified Participant
Yeah, hi sir. So I just want to check in this nine months how much has been the exports to us for us. Just if you can Quantify or maybe 35 crore only. Okay, so the. The entire revenue booking essentially now would happen in Q4 is what?
Pratik Patel — Chairman & Managing Director
It’s not possible. It’s not possible because the material should have and being America by. I said 20th of March so that there is the site by end of March. Otherwise Deloitte will not allow in revenue. Okay, so how much do we drop is coming because of that only.
Unidentified Participant
Right? Right. Understood. Understood. So how much do we possibly can cover up in Q4? So if we just had to put.
Pratik Patel — Chairman & Managing Director
See the presentation, you know, we have said, we have given the presentation in which we have said we will reach around 800 crores for example. And then you can find out from there and Rodney and what, what can be.
Unidentified Participant
Okay, sure sir. And just correspondingly sir, we’ve seen a you know drop in our gross margins in the nine months. You know. Is that entirely because of this drop in US sale?
Pratik Patel — Chairman & Managing Director
Not because of the drop in usl. It is also because I pay tariff from my pocket.
Unidentified Participant
Understood, Understood.
Pratik Patel — Chairman & Managing Director
It is a cost. Gross profit is not linked with the reduced reduction on the revenue. It is directly related to the turnover. So it is variable cost. So it will not affect maybe up and down. Consumption and cost. Also the cost has gone up because of the tariff.
Unidentified Participant
And just lastly to check sir, you know we had given a previous guidance was around thousand odd crores by FY27. Given the entire situation now globally do we believe we should be in a decent footing to get you know stripe for that?
Pratik Patel — Chairman & Managing Director
I was it, thousand or 950 crore? 950. 975. So we are quite confident of 950 crore plus. Let’s see how this 18% ratification is done when it is done. But I feel with all these initiatives which we have taken we should be in striking distance of the same. Yeah. And there is good chance of US closure this year with 45 to 50 million of opening or 10 million. 44 is the December. But March closing will be better than that. Because let us not anything let us based on this will forecast in April.
Unidentified Participant
Yeah, sure sir. Best wishes to the team sir. Thank you.
operator
Thank you. We’ll take a follow up question from Kunal. Please go ahead.
Unidentified Participant
So we have almost spent 30cr in the Westec deal. How much expected in the pen stock? Okay. And sir, how much will be the total exports probably from India to US on which the tariff will be applicable? In what range? At the end of FY26. Yeah, I mean for. For this year. For this year. So I think you said 25 crore worth of orders have been already dispatched. How much more? Because I think tariff is on that, right? I mean tariff will be on the.
Pratik Patel — Chairman & Managing Director
So total pending order on first April. Yeah, yeah. Total 35 crore. We have already displayed.
Unidentified Participant
Okay.
Pratik Patel — Chairman & Managing Director
10 to 15 crore further in LA.
Unidentified Participant
Okay. So 18 or 25 whatever would be on that 50 crore.
Pratik Patel — Chairman & Managing Director
25 as of maybe sometime 45, sometime 50 and now.
Unidentified Participant
Okay so. So there is no like because I think last time when I did the factory there was something like you would, you know the orders were not meant for the US that would directly be showed to like let’s say Canada or whatever weather Orient. So are there percentages of those orders executed as of like of this year? Orders that were not meant for U.S. territory. But in Rodney Han’s order book which can be directly be exported to that land is is that something that is possible?
Pratik Patel — Chairman & Managing Director
Those see as when this tariff issue cropped up, all such orders dried up. So why would they place an order on an American company if their country is going to place reciprocal tariff on America? So as a result there was a big mess for few months. No one was willing to touch American products. Now I think still it is settling down and all countries are evaluating how to go ahead. Companies are also evaluating how to go ahead. And I think that only next year we’ll start that type of business coming back.
Unidentified Participant
Okay. Okay sir, thank you so much.
Pratik Patel — Chairman & Managing Director
Thank you. That was the last question for a day. There are few questions on a chat box. Some of has been covered. The question this question is from Ravi Shankaran. What will be our product mix looks like five years from now on segment. Wise
Unidentified Participant
because we are in projects and it varies from year to year and this I have clearly explained even in our faq.
operator
The next question is from Navani. How much revenue share are we expecting to get from Saudi Arabian market going forward?
Pratik Patel — Chairman & Managing Director
See in the beginning, in the first year we don’t expect more than 20, 25, 30 crores. But slowly, slowly we are expecting 100 crore revenue from that company. Okay.
Unidentified Participant
The questions got covered. Yeah, that was the last question. Sir, I will hand over to you for a closing comments.
Pratik Patel — Chairman & Managing Director
Whomever we have not been able to reply to and they have given us message on the chat, we will come back to you with our answers later on. For the others, thank you for spending a valuable time and listening to us. And if you have any doubt or if you want any clarity, you can always write to us to Mr. Or to EY and it would be our pleasure to reply to you. Thank you.
Unidentified Participant
Thank you. Thank you everyone for joining us today. If you have any additional questions like Pratik sir said, you can reach out to us anytime. We wish you a good health and look forward to seeing you again next quarter. Have a good day.
Pratik Patel — Chairman & Managing Director
Thank you.
operator
Thank you.