Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
John Cockerill India Ltd (BSE: 500147) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Francois David Martino — Chairman
Marc Dumont — Chief Financial Officer
Analysts:
Anand Shah — Analyst
Venkatesh Subramanian — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to John Cockrell India Limited Q1 and CY26 earning conference call. This conference call may contain forward looking statement about the company which are based on the beliefs, opinions and expectation of the company as on date of this call. These statements are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant line will win the listen only mode and there will be opportunity for you to ask question after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Francois David Martino Chairman for his opening remarks. Thank you. And over to you sir.
Francois David Martino — Chairman
Good afternoon everyone and thank you for joining us today on our quarter one calendar year 2026 earnings conference call. And I am joined by Mark Dumont, our cfo. We have uploaded our financial results and investor presentation on stock exchanges and companies with. I hope everybody has an opportunity to go through the phase. The first quarter of 2026 reinforces our confidence that the business is progressing in the right direction. Operationally, financially and strategically. We have established a strong foundation for future growth by consolidating our growth businesses and integrating our metal business under a single entity in India.
The benefits of these initiatives are now beginning to take shape. And yes, the number are stronger. And the year has begun on a solid footing supported by an increase in order intake, a healthy impending order book and sharp focus on execution. During the quarter we have witnessed strong order wins, a growing order book and a robust order pipeline. We have also secured an order from JSWSteel for a CGL project valued at approximately 4.5 billion rupees to 4.7 billion rupees as on March 2026. Our standalone order book stands at approximately 13 billion rupees and reflects a 101% year on year increase.
Revenue for the quarter stood at 2,000 rupees, registering a growth of 163. Sorry to interrupt you,
Operator
But your voice is breaking.
Francois David Martino — Chairman
Oh, is it better now
Operator
Still? It’s breaking,
Francois David Martino — Chairman
Yes. Is it better? Getting better now?
Operator
Yes, sir. Please proceed. Thank you.
Francois David Martino — Chairman
Okay, so I will resume. So the revenue for the quarter stood at 2000 million rupees, registering a growth of 162% year on year. Standalone EBITDA stood at 114 million rupees compared to a negative EBITDA in the corresponding period last year. Standalone EBITDA has improved significantly compared to last year and has remained stable over the last three quarters. However, margins were impacted compared to last quarter due to certain upfront costs related to hiring an organizational and the data to prepare the business for critical cost.
A shift in product with higher proportion of large projects compared to value added services and service. One of the expenses related to consolidation and integration activities hold within the stand alone business which impacted overall ebitda. This quarter marks the beginning of a new phase for dcl. While the headline numbers are encouraging, the most important takeaway is that the improvement has become increasingly sustainable. Structurally, the business is evolving into a more integrated and disciplined organization better positioned to align with the global direction of the steel industry.
Key developments during the quarter include the reorganization of the shell function which is beginning to deliver tangible benefits. While the operational team is being strengthened proactively in anticipation of future growth and to ensure smooth execution capabilities as the business scales, disciplined cash management will remain a key focus area for the company. The order pipeline remains very strong, particularly with high quality order wins for market customers and we expect execution momentum to strengthen further over the coming quarters.
We are witnessing strong demand from customers who are investing not only in capacity expansion but also in advanced processing capabilities, electrical feed, downstream quality enhancement and modernization initiatives. Several of the project wins and order pipeline indicates a direct reflection of keys evolving industry trends. Speaking about the consolidated financial performance, this marks the first quarter in which we are reporting consolidated results. That means the Q1 consolidated performance includes the operations of China, Belgium and Germany entities.
From January 2026 onwards, on a consolidated basis, the consolidated order book stands at approximately 33 billion rupees. Revenue for the quarter stood at 3.4 billion, reflecting a 56% year on year growth. EBITDA turned positive at 49 million rupees compared to the negative EBITDA of 14.9 million for the same period. Last year, EBITDA margins stood at 1.4%, largely impacted on account of integration cost and consolidation adjustments associated with the ongoing business integration. Going forward, the cost structure is gradually aligning from the west towards India and China which is expected to drive operational synergies and efficiency improvements over time, improving the margin trajectory impact on margins were also on account of our investments making development of new technologies.
While these investments are impacting EBITDA in the near term, they are expected to contribute meaningfully to future growth and long term value creation. Speaking briefly about steel industry, global markets remain mixed. Europe continues to face pressures from high energy costs and weak industrial sentiment, while China, despite remaining the world’s largest steel producer, is becoming more selective in capital Expenditure which create a focus on advanced technologies and decarbonization. In line with this trend, we are strengthening our presence in China.
At the same time, geopolitical tensions in the Middle east are creating uncertainty across energy markets, logistics and commodity flows which could lead to short term volatility in the store sectors globally. Against this backdrop, India continues to stand out as one of the strongest steel investment markets globally driven by infrastructure spending, manufacturing growth, automotive demand and renewable energy investment and the shift towards higher value. This is creating long term demand for advanced on stream processing lines, galvanizing lines, cold welding capabilities, electrical field processing and life cycle services area where TCL is strongly positioned.
The industry is also evolving with steel producers increasingly prioritizing efficiency, energy optimization for the quality, sustainability and decarbonization. Key strengths align well with the strengths of the joint Cochlear Group technology portfolio. A key strategic milestone for the company is a consolidation of the group’s metal business under the GCIL platform. This is not just a structural integration but the creation of one integrated global metals business with India at the center of the operation, execution and manufacturing combining technology, expertise, manufacturing strengths, execution capabilities and access to one of the fastest growing steel market globally.
To conclude, I would say overall we are entering the next phase with a much stronger foundation, a stronger order book, improving execution capabilities and a more integrated global business platform. With India continuing to remain one of the most attractive steel investment markets globally, we believe the growth opportunity are highly significant. We also see significant long term potential from new technologies such as jet vapor deposition which align with industry shifts towards high efficiency supply of coating quality and lower environmental impact.
We remain committed to investing in these segments including the Walls coating facility at Talosia which is expected to be commissioned shortly. This facility will introduce specialized quoting capabilities in India with significantly faster turnaround times for customers. While we remain focused on disciplined execution and long term value creation, GCL today operates with far greater clarity, capability and ambition than it did just a few years ago. The direction is clear, the platform is stronger and we are all well positioned for the next phase of growth.
With these I will end my opening remarks and Mark and myself are happy to take questions. I will also take this opportunity to invite you to our annual general meeting for more detailed discussions on June 12, the details of which will be soon available on our website. Thank you.
Operator
Thank you Francio. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchton telephone. If wish to remove yourself from the question queue, you may press Star and Two participants are request to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Our first question comes from the line of Anand Shah from J Anand Securities. Please go ahead.
Questions and Answers:
Anand Shah
Yeah. Good afternoon, sir. Hello. Am I audible?
Operator
Yes, you are. Please proceed. Good afternoon.
Anand Shah
Yeah, yeah. Sir, just firstly, maybe due to poor audio quality, maybe I could personally not understand significant part of the address given by the chairman. I don’t know. Maybe next time the audio quality can get improved. Yeah. Firstly, I would like to take this opportunity to once again thank the parent for reposing faith in the Indian listed entity. And for having done the game changing deal of bringing the entire global steel equipment business under the fold of Indian listed entity. Having said that, regarding the quarterly performance on a standalone basis, while the revenues have grown 160% on a year on year basis and 94% on a QoQ basis, the company has not witnessed any benefit of operating leverage that we would have expected from such a dramatic increase in revenues.
So can you please explain why when your revenues are at kind of all time quarterly high levels, the operating leverage factor didn’t kick in and get reflected in the bottom line. Besides, why did the employment cost shoot up by 34% on a YoY basis and the increase in employment cost is much more dramatic when you look on a QOQ basis. Yes, these are primarily my two questions. Thanks sir.
Francois David Martino
Thank you for the question. Maybe Mal Dumont, our CFO can take the question.
Marc Dumont
There are three factors if you look. Yes, our revenue has increased, our metal margin is stable. But indeed our structure cost has increased. And when you see this, there are certain reasons for this. First, we have some upfront cost related to hiring an organization realignment.
Anand Shah
Your voice is not very audible. I don’t know. Maybe. What’s the issue? You are somehow. So we can hear.
Operator
I’m sorry, but we can hear him properly.
Anand Shah
Okay. Okay, thanks. Go ahead.
Marc Dumont
I will repeat maybe more loud if you know me. So first of all there are some certain upfront costs related to hiring an organizational realignment. Because we have the future growth to prepare. Then we have also a shift in our product mix. You see that we have. We are getting the quarters over quarters. We are adding new project, big project with esw, with Tata, Tymcal and those projects compared to the value services, there is a shift in the mix. Then there is a third point is a kind of one off.
When we do this consolidation, this integration of activity. Then yes, there are some expensives due to consolidation support for running this to go through the bank, etc. So those costs are kind of one off for allowing this consolidation. So some are one off, some are mixed to summarize and some are again, we are preparing the growth and that’s the reason why we see this effect.
Anand Shah
Thanks sir.
Operator
Thank you. Our next question comes from the line of Venkatesh Subramanian from Logixi Consultant Private Limited. Please go ahead,
Venkatesh Subramanian
Sir. Good evening. Congratulations on the consolidation process, sir. My question is, sir, can you give us an indication of the order pipeline perhaps over the next 12 to 24 months, what you are looking for basically say to 24 months down the line, where do you expect the global order pipeline to be? That’s question one, sir. And second, in some of the previous con calls of last year you had indicated that you might secure large sized order from one of the government steel companies in India where we are developing a relationship.
Can you indicate some progress on that?
Francois David Martino
Thank you for your question. So on the first question regarding the pipeline, our opinion is that the trend will be positive in the next 24 months. We expect more orders coming in, especially from number one, the Indian market which is extremely dynamic and still investing heavily to double the capacity of the country for 2030. While we are also taking good solid ground in China, we see also our order book in China growing pretty fast. The third aspect we see as a positive trend is that green steel is slowly, slowly building its path amongst steel mills.
And we also see growing interest for JVG technology which should also translate in more orders in the future. Regarding the second question which was again, can you repeat the second question?
Venkatesh Subramanian
I think we were given the impression that apart from the private Indian steel making companies like JSW etc. You were also talking to some of the Indian government owned companies in steel making for a large order in terms of refurbishment of the old steel plants. This is indicated in one of the calls. But you said the process takes some time so just wanted to know the progress on it. Exactly.
Francois David Martino
So we signed, as you may know, one year ago, a little bit more than one year ago, minutes of understanding with style Steel Authority India Limited. And we are working on his, let’s say memorandum to build up concrete and solid projects of investment in the future. I cannot disclose more than that for the time being.
Venkatesh Subramanian
Okay, sir, Great. So follow up question is say after this process of consolidation is over, say a few quarters down the line, where do you expect the operating margins to be, sir, as a percentage?
Francois David Martino
So we expect from the next quarter on improvement in margins due to the fact that the orders we have registered on Q1 and also the one we got in the second half of the year in 2025 will start to, let’s say, translate into positive results.
Venkatesh Subramanian
Okay? Positive operating minds. Okay, sir, so I can ask one more question?
Francois David Martino
Yes, sure, go ahead.
Venkatesh Subramanian
So Voltairon is a technology that’s mainly useful in the upstream process of the steel making, especially when it comes to iron ore mining, etc. Considering that India is also trying to expand its scope in iron ore companies like NMDC, Vedanta, etc. Do you see prospects for Voltron orders in India?
Francois David Martino
Voltron Technologies belongs to the Jungle Shield group and is a very promising technology which has been developed with our Salon Metal. We are right now, let’s say, fine tuning our strategy for the next months to come and we’ll be able to communicate more on Voltairon. We see India as one of the best possible countries for Voltairon since Voltairon is a technology which operational costs are based on 70% on electricity and availability of iron ore, whatever the quality is. So we believe that India should follow the path of GREENFIELD through Voltairon and the country is offering through, let’s say a solar farm, green electricity and local iron ore, a good base for good quality and price competitive production.
Venkatesh Subramanian
Okay, so I understand we will hear more of this in the coming quarters.
Francois David Martino
Correct?
Venkatesh Subramanian
Got it, sir. Thank you very much. I’ll join the queue.
Operator
Thank you. Our next question comes from the line of Manan Paladia from MKP Securities. Please go ahead.
Unidentified Participant
Hi sir, good afternoon. Congratulations on posting a good site. I just have one question on the new global entities that have been merged. I think you indicated in the last couple of calls that you’d be able to speak a little bit more about their businesses after they are integrated into jci. I’m just curious if you could provide some color on what the global steel capex cycle looks like for you. And especially with what is going on globally as far as geopolitics is concerned. Are you seeing some slowdown in pipelines or order bids?
If you could shed some light on that. Thank you.
Francois David Martino
We see a mixed situation based on different countries. The four main markets we are following up is India, China, US and Europe. And there we are well established. I would say India represents for us a positive trend due to the fact that Jungkook Real is able to offer even in China, competitive price. But especially new added value technologies which are bringing our Chinese customers to invest in more competitive solutions even if the market goes down, a technology representing better quality and or better operational costs will always find its way even in a depressed or slowing down market.
Europe stays a standby market and will most probably see its biggest transformation next year. The European government is building up new quotas for import which will protect the locals more and better in the future. And that will bring more demand from the European market. The American market is a market representing the best steel price per ton. And we see there also a lot of movements of consolidation of steel mills, but also newcomers like Nippon Steel who purchase US steel and will most probably build a strong investment pipeline in the next years to come.
Unidentified Participant
Right, thank you. Just a quick follow up on that. When you say that new technology will find a footing even when there is an order slowdown, is that to indicate that instead of new capex lines that come in, you will probably have more of an upgradation order book going forward? And will that have effect on your margins or working capital or anything of that sort?
Francois David Martino
Yes, we believe that even in a slow down situation, and when some players have to replace the existing line which becomes too old to perform, they will go to more added value lines rather than cheap lines. This is the trend we see especially on the main major steel mills in China. And as a reminder, out of the top 10 biggest steel producers in the world, six of them are Chinese.
Unidentified Participant
Right. Thank you. Thank you so much.
Operator
Thank you. The next question comes from the line of Nidhisha from Anvil. Please go ahead.
Unidentified Participant
Hello sir. Am I audible? Hello.
Francois David Martino
Yes you are. Good afternoon. Yeah,
Unidentified Participant
Yeah. So I just wanted one clarification in the presentation when we mentioned that Walter on is not part of of the consolidation. So I just wanted to know the revenues from the Voltanone technology and the, and the results will. Will it flow to John Cockerell, India.
Francois David Martino
So Voltairon has no revenue yet due to the fact that it is ready for commercialization only since few weeks. So we are reshaping completely the Voltairon strategy right now. And especially we are conducting a reflection on how GCIL will contribute and benefit from the Voltoron deployments in the future. This is under evaluation.
Unidentified Participant
Yeah. So whenever the revenue will flow, it will be a part of gcil, right?
Francois David Martino
Under one form or another it will be the case. Right now it is too early to communicate about that since we are in strategic discussion with the promoter who is the owner of the IP of wealthy one.
Unidentified Participant
Okay, thank you. And sir, one more question. Our consolidated order book as mentioned is around 3300 crores. So I just wanted to know over how many years is this executable.
Francois David Martino
Marc Dumont, can you please reply to the question?
Marc Dumont
Yeah, so it’s over. So could you repeat your question just to be sure we answer correctly?
Unidentified Participant
Yeah. So the consolidated order book as on March 2026 of 33,000 million, it is executable. It is executable. Over how many years?
Marc Dumont
Our last project, which is the majority of this order book is over three years. We have the value services. The value services, which is a smaller portion of this is more kind of revamping of spare parts. And this is more over 12 to 18 months. But the vast majority is more over three years.
Unidentified Participant
Okay. Okay. Thank you, sir. That’s all from my side.
Operator
Thank you. Our next question comes from the line of Sumit with Century Investment. Please go ahead. You may please proceed ahead with the question.
Unidentified Participant
Thank you for the opportunity. I just wanted to add that since there is a background
Operator
Noise, if you can check, please. Thank you.
Anand Shah
Thank you for the opportunity. As I have seen that there is a consolidation of the metal business particularly so we have not seen any operating leverage in this quarter. So can you just guide post consolidation? We can. What are the margins we can expect and the financial and operating leverage will be playing.
Francois David Martino
Thank you and good afternoon. Thank you for the question. I think this is a question for Mark Dumont.
Marc Dumont
So first of all, we agree that the margin we have, the EBITDA level we have is not what we are looking for. And we are anyway working on improving our structure. As we mentioned to you, we are moving from west to east. It will take some time, but that’s what we are working on the plan over the next 18 months. So we are aiming right now we have an EBITDA at around consolidated at around 3% and it will go step by step, not that way over. What we are aiming is really beyond more than 10% over the next three years and achieving already probably to be in the middle of the past beginning of next year.
Anand Shah
One more question. Is the company planning any Capex in the near future so we can see any particular impact on the margins of the company?
Marc Dumont
The capex we are first an engineering company. So Capex is limited. Even if we are right now, for example investing in the rose coating. So we are about to. We have the horse coating activity starting. So Capex is limited. It’s not very Capex intensive. So. So it’s not the main effect. However, we must admit that right now in our p and L1 of the effect is we are developing solutions, new solutions, new technologies. And this has an effect also on the edicos that you see and unfortunately you don’t see it yet.
On our revenue. We are discussing about DVD and that’s something which will come in the coming quarters. But we are right now still investing on fine tuning the technology. Same for Volterrand. There are costs here and we are working on this. But here it will be on more medium term. So our P and L is growing in terms of revenue. We still don’t see completely the new technologies having the benefit we see right now more the cost and the benefits. The benefits will come in the next quarters.
Anand Shah
Thank you sir.
Operator
Thank you. Our next question comes from the line of Abhishek Sanghvi from Equivalent Investment managers. Please go ahead.
Unidentified Participant
Yeah, congratulations for the good set of numbers. The management had earlier indicated plans for fundraise which now appears to have been deferred. Could. Could the management explain the rationale behind the deferment? And one more question on USA Business. So earlier your previous presentation also mentioned that USA Business will be consolidated later into KC management. Elaborate on likely timeline and the structure of the transaction.
Marc Dumont
Is that okay, we take it on?
Francois David Martino
No, go ahead.
Marc Dumont
So on this funding board is still exploring options. We have another board which is evaluating the options. And we have another board for the next two to three weeks to come to better answers. Once we have complete clarity and we have really explored all the options which are available to us, then we will revert with a better answer, to be very honest. And we will of course inform on due time.
Unidentified Participant
And what about the fundraiser?
Marc Dumont
That’s what I was saying on the fundraise. We are right now looking at different. We are exploring different options.
Unidentified Participant
Okay. And couple of months back the promoters had diluted their stake. So will the shareholding be 74% or they will bring it. Or you guys will bring it down? Any update on that
Marc Dumont
At this stage? First the shareholder have the right to change at any time. But right now I think we are in certain position and we think staying in this level.
Unidentified Participant
Okay. Okay. And the US and the update on USA Business
Marc Dumont
USA is we are still here also we are still investigating. There are some technical issues on incorporating, not incorporating, on consolidating usa. So either we are able to achieve that by the end of the year or maybe it would be discussion on maybe postponing slightly but not so much.
Unidentified Participant
Yeah. Thank you.
Operator
Thank you. Our next question comes from the line of Manzal Shah from msfo. Please go ahead.
Anand Shah
Good evening gentlemen. I have a couple of questions. One is, you know you have stated that you would be paying not more than 500 crores for the acquisition of European, Chinese and US business. Now that the European and Chinese acquisition is done which is roughly close to 320 odd crores and if I see your console and standalone revenue the difference is close to 600 crores. So roughly I paid 0.5 times revenue for Europe and Chinese acquisition. And if I just do my maths and earlier call you had mentioned that consult on over will be close to 2000 crores.
So the US business you are acquiring roughly thousand crores revenues for 200 crores is my understanding. Right?
Francois David Martino
Thank you for your question mark. Do you want to take it as well?
Marc Dumont
So first of all we are not exactly in this range right now. If you look at our SPA, we have 50 we are paying the price overall is around 50 million euro out of which USA is included into this. So if you remove USA we are at a much lower price now. USA we don’t expect USA to be right now in the coming months at how much you said? 600 million.
Anand Shah
10
Marc Dumont
Yen.
Anand Shah
10 billion. 10
Marc Dumont
Billion. No. So no the sales of USA will be is really where we see the growth is not so much in US it’s really China, Middle east and we will capture here from India or from China. So the price is mainly based on this. USA is right now for the time being quite stable in revenue but are still chasing big orders. And right now that’s what we are waiting for. So are we reaching the level that you are seeing in USA at this stage? No, that’s not what we see. It will be slightly lower.
Anand Shah
The earlier call had mentioned 2000 crores and now with all the combined entity excluding us is thousand crores. So that’s the assumption that the balance thousand crores will be US revenues for which you will be paying 200crores. So the question was not about the growth, the question was about this, this transaction. Actually
Marc Dumont
Will it be okay from your perspective that we take it offline and we discuss more the numbers together? Because I think the numbers you have is not exactly what. So we need to fine tune this. Is that okay if we took it offline?
Anand Shah
Sure. And secondly there is some 66 crores of other income in Consol. What does this 66 crores comprise of?
Marc Dumont
66 crore. Here it’s most of it. So on the other income line that’s what you are referring to, right sir? Pardon? You are referring to the other income.
Anand Shah
Yeah, other income. Other income of more than 60 crores in consolidated
Marc Dumont
Financial from various sources. But the key source is right now more financial interest.
Anand Shah
So basically there Is a lot of cash in Europe and Chinese business also
Marc Dumont
There is a lot of cash in mostly more in Asia, but in a joining India. But the number is not 600 crore. I mean it is just 9 crore actually.
Anand Shah
No. So what does 66 crores comprise of them? 60 crores of other income?
Unidentified Participant
No, it’s million.
Anand Shah
Right now we
Marc Dumont
Are on million rupees and we are at for this quarter at 93 million. But we are from the full year on the full year. Yeah, but that’s what I was explaining. So most of it, it could be also some other income if you sell some assets for example. But most of it, most of it is again interest, sir. Interest because of the cash
Anand Shah
Then the numbers that you. Because if there’s such a huge interest income and you’re telling that there is. No, I’m saying
Marc Dumont
Two factors. One is the sales of assets. When you have all the assets, you set of assets and then the scrap and you have also the gain on the interest.
Anand Shah
Okay. So bulk of it is a sale of assets.
Marc Dumont
Part of it is sale of assets. Yes. Part of it is the scrap also that we sell because we have some scrap coming from our manufacturing. But that’s more a minor point. But it’s mostly sales indeed of assets. For old assets we needed to do some space in Tallogia for the Rolsco team so we had to dismantle some old machines. So that’s one key effect from last year. And then indeed we have also the interest.
Anand Shah
Okay. And one is how much is spare in service income for the year as a whole as of now and what do you see that in next three, four years time.
Marc Dumont
So you, if I understand your question. I’m just rephrasing your question. You are asking how much is the value services in total?
Anand Shah
Yes, yes, yes.
Marc Dumont
Okay. We have seen clearly from last year to this year a shift of mix as mentioned to you. We see that we are over the next three to five years we are looking to be at around ideally 30 to 35%.
Anand Shah
And just one small request since you mentioned that for my first question, we can take it offline now. How can I connect with you and you know,
Marc Dumont
Team will make sure we connect together.
Anand Shah
Sure. Thanks a lot. Thank you very much.
Marc Dumont
Welcome.
Operator
Thank you. Next question comes from the line of Kamlish Bagmar from Lotus Asset Managers. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity. So if I compare like say standalone versus console operations. So if we see the gross margins or the material margins which are there. So there is a stark difference between console and standalone margins. Or roughly a gap of thousand bps there. So going forward, like say as our overseas operations get consolidated more and more. So where do we see our EBITDA margins moving? And because EBITDA margin in standalone is at 5.7, while in case of concern it’s hardly around 1.4.
So where do we see our margins like going forward, will they converge with the standalone operation margins or it will remain at these levels for next couple of years.
Marc Dumont
So several factors here. First again meant to you, increasing the value services should help increase furthermore the material margin. And you see that by the way, that you see that the material margin percentage is higher outside of India because India is quite competitive. Then clearly as mentioned, we see the impact of having this consolidation. We see also the impact of having the R and D without having the revenue of this R and D. So we clearly where do we see improvement first on moving more and more activity from Europe to West to East.
That’s number one. So getting the first synergy. Then of course having the revenue of the R and D that we are spending or the people that we are spending on developing. The solution will clearly come when we will have orders in the next quarters. So that should. So both, it will come both from additional revenues, but also working on our structure. As mentioned, we are right now working on aligning the structure and streamlining it. And that way you will not see immediately the effect, but it will take maybe 12 to 18 months.
But we are working currently on this
Unidentified Participant
And going forward, like we have a 3000 odd code of order book. So what is the mix there? Like say these cold rolling mills or how much is the share of those particular segment in our total revenue? Because like say John Cochrane is a big player in the carbon capture as well. So going forward, how the mix would be in case of revenue mix like say how much would be the share of steel and various other metallurgies or other segments
Marc Dumont
We have. In reality we have mostly two segments. We have different geography with different revenue and margins, but we have really two segments. One is the processing and rolling at this stage, which is more the core model we have. The second one is the value services. And this is the one we expect also in the mix to grow to help us to improve our material margin. The third one is really what we have, the iron and steel. But the iron and steel, as mentioned, we are developing that more new solutions and those new solutions are not yet.
We have the cost, but we have not yet the revenue. So how much will be the iron? And still if we move forward can be really much big. But right now there are still discussion with a potential prospect. But we have no contract in hand, so we need to be careful of what we say. So coming to what you said,
Francois David Martino
Mark, let me complete on that. So in the steel industry, upstream, which is the liquid steel phase, is 70% of the total and overall investment. So we are coming from a downstream business which is representing 30%. So by developing the upstream, we are opening up our revenue potential at least 2.5 times more and better than what we have done in the past. So while we have these prospects, we also need to have the right technologies which we are aiming to develop with voltairon and electrical furnace in the future.
So that’s something we are working on today. It is the investment time, as Mark mentioned. We hope that in the next months to come and next year will be the harvest time.
Unidentified Participant
Okay, great. Thanks a lot.
Operator
Thank you. Ladies and gentlemen. That was the last question for today. I would like to hand the conference over to the management for the closing remarks. Thank you. And over to you team.
Francois David Martino
Thank you very much for your attendance. We were extremely glad and happy to exchange with you again. And as we mentioned, we still are open to continue some exchanges offline. The team remains available for building up the contact. Thank you and have a great day.
Operator
Thank you, sir. Ladies and gentlemen, on behalf of John Cockrell in Telemetric, that concludes this conference. Thank you for joining us. And you may now disconnect your line.