Jtl Infra Ltd (NSE: JTLINFRA) Q1 2026 Earnings Call dated Jul. 17, 2025
Corporate Participants:
Unidentified Speaker
Dhruv Singla — Executive Director
Pranav Singla — Executive Director
Analysts:
Unidentified Participant
Neha Talreja — Analyst
Aditya Welekar — Analyst
Amar Maurya — Analyst
Vishal Dudhwala — Analyst
Jyoti Singh — Analyst
Lokesh Kashikar — Analyst
Prathamesh Dhiwar — Analyst
Presentation:
operator
Ladies and gentlemen, good morning and welcome to the JTL Industries Q1FY26 earnings conference call hosted by Nuva Wealth Management Limited. As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference to Ms. Neha Talreja from Nuwama Wealth Management Limited for opening remarks. Thank you. And over to you.
Neha Talreja — Analyst
Thank you. Good morning all. We welcome you to the JTL Q1 FY26 conference call. We are today joined by the Senior Management of JTL Industries to be presented by Mr. Pranav Singla, Old Time Director, Mr. Dhruv Singla, Old Time Directors and Mr. Atulkar CFO. We will now start with the opening remarks with the management followed by the Q and A. I will now hand over the call to Mr. Dhruv Singh for his opening remarks. Over to you, Dhruv.
Dhruv Singla — Executive Director
Hi. Good morning all. I hope you and your families are doing well. I’m Dhruv Singla, Executive Director at JP Industries and I’d like to welcome you all to our Q1 financial year 26 earnings call. Joining me today are Pranav Singla, executive director and Mr. Atul Bhag, our Chief Financial Officer. We are delighted to have you with us today as we share our recent performance highlights and strategic developments. For those less familiar with JT Industries, here’s a brief introduction.
operator
Ladies and gentlemen, we have lost the line of the management. Please stay connected while I rejoin the management. Thank you. IT. Ladies and gentlemen, thank you for your patience. We have the management reconnected. Sir, you can proceed.
Dhruv Singla — Executive Director
Yes, hi. Sorry, the lines are disconnected. Let me start again. Very good morning to all of you. I hope you and your families are doing well. I’m Dr. Singla, Executive Director and I’d like to welcome you all to our Q1 financial A26 earnings call. Joining me today are Mr. Pranav Singla, Executive Director, Mr. Atul Gar, our Chief Financial Officer. We are delighted to have you with us today as we share our recent performance highlights and strategic developments. For those less familiar with JT Industries, here’s a brief introduction. With the legacy. Spanning over three decades, JTL has emerged as one of India’s leading manufacturers and steel tubes serving vital sectors such as infrastructure, oil and gas, water transmission and construction.
Our diverse product portfolio includes EAW black steel pipes, galvanized steams, large diameter sections, solid module mounting structures and hollow steel profiles. We operate five state of the art manufacturing facility strategically located across India enabling us to deliver high quality value added solutions with speed, scale and precision. Our focus on higher margin specification driven segments supported by continuous investments in automation with digitization and quality systems continues to reinforce our competitive edge. Equally important, we are advancing our commitment to sustainability through initiative aimed at improving energy efficiency and reducing our carbon footprint. Moving on to the performance highlights, this quarter we achieved a total income of 5,496 million.
Our EBITDA stood at 233 million translating to a EBITDA margin of 4.3%. We also reported a profit after tax of Rs. 165.5 million with a PAT margin of 3%. Sales volume of the quarter were at 1,8406 metric tonnes. Value added products accounted for 20% of the sales mix. Aligning with our focus on higher margin offerings. Export volume stood at 6404 nanometric tonnes for the quarter which constitutes 6% of our total sales. During the quarter we initiated plans for the commissioning of a new ASM API grade pipe market. Through these products, JP will become one of the very few manufacturers in India with the capability to produce larger diameter higher pituitary API grade Emmy pipes, thus placing us in the league of technically advanced players.
This investment will aid in expanding our footprint in higher grade segments such as oil and gas, water transmission and city gas distribution. These markets typically Yield margins of 7,000 to 8,000 per metric tonight making this development significantly value accelerated. I would also like to highlight that J2 Industries had commissioned production of ICA 10 0.04mm brass soil through a strategic job work arrangement making its entry into a high value niche segment. Known for its low friction and corrosion resistance. This product caters to sectors like defense, aerospace, industrial establishments and EMI RFI shielding the jobs work model allows cost effective scalability and quality control by leveraging external expertise.
This initiative aligns with GATO strategy to increase value added products from 24% to 50% of sales complementing with investment in VFT technology backed by thousand plus dealers and exports to 20 plus countries and FTUs of 1500 plus FTUs. JTL is well positioned to go in specialized higher margin markets. I would like to reiterate that the aim behind this diversification is threefold for you to enter a high demand niche market with limited competition. Secondly, to expand the value added portfolio which will subsequently secure A margin and lastly be diversified across alloys so as to reduce dependence and avoid slowdown during an industry downturn.
Not only are we focusing on return, but also making our sales as irreplaceable and exclusive as possible. As we are undergoing a heavy capex cycle in the new S series, the current margins don’t reflect the actual margins the company shall be achieving in future. Going forward, our outlook remains optimistic considering sustained demand across these sectors are superior quality and due to the key tips and investments may Najita I want to reaffirm our commitment to delivering value through operational excellence and the study. Thank you for joining us today. I now open the floor for your questions.
Questions and Answers:
operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Aditya Velikar from Access Securities. Please go ahead.
Aditya Welekar
Yeah, thank you for the opportunity. So my question is with regard to our EBITDA per ton. So we have seen some underperformance since last quarter. So what is driving this? Despite our sales volume increasing and WAP share almost at 20%. So if you can throw some light that.
Dhruv Singla
Hi Mr. Gupta, good morning. Thank you for your question. There are two three factors to the little slowdown or say a little less bit up a ton as compared to the last times that we have encountered. Firstly, we are all aware that the duty was implemented in April 21 on April 21, 2025 after which there was considerable jump in HR coil prices for the month of April and May which then again corrected in the month of June. So we did encounter a good run rate in the months of April and May. But then again due to a correction in price there was a downturn.
So some aspects are related to that. Secondly, we had commissioned our DFT in the month of March. In the first quarter we had pushed our product across segments of dealer network OEMs to the tune of sending material to across borders to Gujarat, North, Middle South. So to get our product out and about for dft so we had to take certain pricing dips in that segment and take a hit so that our product is known in the market. Did that we were waiting for certain. Since it was the first quarter that the machine was up and running, we had taken some hit because of we had to get the BI certification, the CE certification done.
And so there was a little hit in that segment. So all in all these were the few factors which had bore down the EBITDA per ton. But this is not a continuous factor. We have seen good demand going forward in DFT sales for value added higher thickness as well. Since now we have the certifications required for the same. So. So yes, going forward in the next quarters we will see a better realization in those terms as well about the.
Pranav Singla
Sales mix that currently whatever DFT pipes we sold technically smaller than size ranges which would indicate a VAP category. Once those products are in the size which get VAP margins, they’ll be included in that category and the VAP should be go up accordingly as well. So we get the VAP margin accordingly and we’ll include the products in that category itself. That time itself.
Aditya Welekar
Understood. So going ahead from Q2 can we expect that means our EBITDA per turn means we have a full year guidance of 4,000 rupees per ton. And then our full year WAP share IS guidance is 40%. So are we on track to hold this guidance going forward?
Dhruv Singla
Yes, we are on still intact as well. If I just mentioned that if you did 8000 tons of sales of DFT price in Q1 those were included in general category going ahead those 8000 tons when they they will give us margin of 6000 10,000 rupees a V plus they will be constitutes what will make the voucher go in high percentage as well. And at the same time will increase the beta per term as well. Those factors will bring up whatever you’re asking for.
Aditya Welekar
Okay, so you are holding 4,000 rupees per turn EBITDA guidance for 26 and for 27. Any, any, any color. Because we are introduced. We have introduced DFT and then our color coded lines. This manga facility as you have stated in the presentation, this ARW API grade GI coil. So all this will earn higher EBITDA per turn. So any color on EBITDA per trajectory going forward in 27.
Pranav Singla
See, the thing is as all of. These products are new for us. Although the peers are commanding a very high beta per turn on them. But as the situation happen in DFT to start circling the product in the market, we have to take a hit on the margins. In the beginning that might happen once vancouver those products as well. But eventually once everything is established and up and running in a proper way, we will get a much higher EBITDA per ton. But to guarantee what kind of EBITDA per ton we’ll be getting in FY27Q1 or H1 of FY27. That is something that we’re not even clear about right now ourselves as well.
Going ahead, as the production picks up, as the certifications are received and as the product is spread in the market, we will be able to command a higher beta. That is something that we can guarantee. But in quantifying the amount right now, because of the whole situation at times the duty being applied as well, and external factors as well, we are not very clear about what kind of beta return we can do.
Dhruv Singla
Yeah, to add to that, there are a lot of contingencies, as Pranav said, in the market that we have to take care of. So we would be able to say a minimum of the guidance that we already provided. But say the contingency right now we implemented the DFT thought of opening newer markets of USA Canada which now due to Trump tariffs are not. Nobody’s interested or nobody’s looking at buying material from our markets. So everything is on a wait and what scenario? So we have to live with that scenarios and wait for things to get better.
Aditya Welekar
Understood. And anything on volume front means we were targeting 5 lakh tonnes in 26. Are we confident to achieve that?
Dhruv Singla
Yes, we are very confident to achieve that. We should be in a range bound of 5 lakh tonnes. Given plus minus of a normal margin there of we should be achieved that.
Aditya Welekar
Understood. I have a few more questions but. I’ll get back in the queue.
operator
Thank you. Ladies and gentlemen, a reminder, if you wish to ask a question, please press star and one we take the next question from the line of Amal Maurya from Lucky Investment. Please go ahead.
Amar Maurya
For the opportunity. A couple of questions from my side. Firstly, can you see the volume breakup between the GI DFT and.
Pranav Singla
Yeah. So right now say to answer your question, we don’t have GT pipes, we only have GI and black that we are categorizing into 2 categories to start off with in this quarter, the first quarter we had our DFT product on sale and as we mentioned earlier, we have not categorized this into a value added format. So we have not done that. So to answer your question in a plain manner, the 22,000 tonnes of value added products that we’ve done is majorly galvanized sites and the BFT is included in the normal products as of now, which was to the tune of about 7,500 to 8,000 metric tons for this quarter.
For the first quarter
Amar Maurya
out of 22,000 value. Correct?
Dhruv Singla
No no, no. 22,000 value added is galvanized alone. 8,000 DFT is in the normal range of products that we have
Amar Maurya
will come in separate category. No.
Dhruv Singla
So how we define our VAP is under the wap we include products which give us a beta per ton of 5000 rupees plus which is generally galvanized price for us. Since beginning as we have just done DST right now we were not able to include DST in VAP category because. It didn’t give us a margin of. 500 rupees EBITDA per ton. Once the product gives us a margin of 5000 rupees plus the DST sales which was in between of 7500 tons in this quarter will be added to the map category.
Amar Maurya
So basically you are saying GP. GP is basically 22,000. Correct.
Dhruv Singla
Right now galanized iron types is what we make which is in the V category.
Amar Maurya
Galvanized type GP is 22,000, BFC 8,000 which is general category. And rest all is basically GI pipe. GI and black pipe, correct?
Dhruv Singla
No, sir, no. You are confusing the entire scenario. We are not into GP pipes. Three galvanized types we are not making. We are making two kinds of products. First is the galvanized iron pipes, GI types that is galvanized after placing the pipes on zinc coating on top of black pipes that is 22,000 tons. Red is the general category black pipe that we have made which includes DFT at the moment of 7,500 tons. This is what it is.
Amar Maurya
Galvanized iron pipe is a part of value added and galvanized black pipe is a part of general. And in that
Dhruv Singla
there is no galvanized black pipe,
Amar Maurya
sir. Okay, okay. And secondly sir, in terms of your EBITDA per turn, is there some impact of inventory? Inventory loss also included into your EBITDA portal of 20?
Dhruv Singla
Yes. As I mentioned with the question of Mr. Aditya Velikar. The first two months after implementation of the duty we saw a sharp increase in prices of HR coils. In the third month of June we saw a correction in prices. So in third month there was inventory losses related to the decline in prices after the sharp grease.
Amar Maurya
Okay, okay, okay. And how much more impact do you think your high cost inventory and normally what is your buying pattern? How do you basically buy the inventory? I mean can you, if you can help us understand. Because see, normally this kind of fluctuation will be very common, right? But if, if, if we, we should be able to hedge this. I mean what is our policy? How do we buy the inventory so that you know, we are immune from all these scenarios. The black coins or HR coins or Arabs is not a commodity that we can hedge.
Dhruv Singla
First of all, it is not a non ferrous tobacco. Normally we are sitting in Q1 and we are looking at Q1 results at the moment. Normally it’s a cyclical industry. The Q1 and Q2 are fairly slower than Q3 and Q4. In the Q1 and Q2 we encounter monsoon, we encounter fluctuations in the market scenarios wherein the prices can go up or go down as well. So here when we look at the entire year of a normal steel industry, we see that these losses on inventories or gains in inventory set off each other in the four quarters that we have.
Because in some quarters there will be losses on the mentoring, some quarters there will be normal gains as well on inventory. So that is how the entire year looks. So and to answer the second part of your question about hedging, we when we are producing a value added products we that is against others. So that has a normal hedge. We have four categories of our products that we are selling to the market. First is the government sector, second, export segment, third the OEM and fourth the dealer network. Dealer network makes the most of it which picks up material from the stock.
So we have to maintain an inventory to sell say a lakh tons of material in a quarter. We have to retain an inventory at different locations of at least 25 to 30,000 tons of material that keeps on rotating on a daily basis. So we don’t have a natural hedge in the 50% of material that we’re making. But all the government sectors or export segment or we buy material only against order and we have some price variation clauses as well that we are hedged against the fluctuation in the market scenarios. So that is.
Amar Maurya
But sir, dealer macros is not common.
Your peers are also having more than higher distribution distribution network than you. Right? And they are managing it. So basically what I’m trying to understand here is that and going forward your intention will also be to increase more, penetrate more distribution network. Right? But then you cannot give the argument that distribution network is high because of this. You know, you have to suffer the fluctuation. This is not visible in other.
Dhruv Singla
That is, that is what, that is what not I’m saying sir, this is, I’m saying this is how we, we categorize our products into and sales into.
Every company has their different modes of sale and this is how we are working on top of it. That is what I said, sir.
Amar Maurya
What I’m saying here is that right? So what I’m trying to understand if you say that you have 50% distribution network and you have to stop the inventory for that. So any fluctuation in the inventory while you are taking it it has to be passed on to dealer.
Dhruv Singla
That is what happens. I’m not saying the entire 50% is stocked and inventory losses come on back. A lot of material in that is sold and a lot of material in that is unsold. You only get the fluctuation on the unsold parts.
Amar Maurya
So what sir? Unsold part. So basically unsold part you are accounting.
Then it can reverse. Let’s say once you sold it. Yeah. So I didn’t. Understood. Sir, this is the Accural accounting method. How much was the actual number of inventory loss which you had booked?
Pranav Singla
It’s close. Which is in the overall loss of schemes. Sorry, it is close to th.000 rupees beta per ton in inventory loss.
Amar Maurya
Thousand rupees inventory loss was there in this quarter. Okay. Okay. And secondly in terms of your capacity when you say you have a capacity of 2 lakh 22 lakh 50,000 and so how much is the pipe you are in one side? You mentioned pipe capacity is 9 lakh 36 thousand. So what is the difference of this? What is this is color coated sheets. Hello.
Dhruv Singla
Once we have a given a full breakup of our capacity what we have we can please get back on the questions. Can we please move to the next question?
Amar Maurya
Sure.
operator
Thank you. We take the next question from the line of Vishal Dudwala from Trimetra Asset managers. Please go ahead.
Vishal Dudhwala
Am I audible sir?
operator
Yes Michelle, please go ahead.
Vishal Dudhwala
So my first question is revenue per turn fell from 56,000 to 54,000 on Q on Q basis despite higher volume which egg market saw the sharpest price drop?
Dhruv Singla
Sir, can you come again? The last portion of your question was not clear.
Vishal Dudhwala
Okay, let me repeat it. Revenue for turn from 56,000 to 54,000 on a Q on Q basis despite higher volume which end market saw the sharpest price drop. Yes. Firstly our revenue per ton is on a blended basis. If you see as compared to the last quarter our black sales have improved. And we have made more sales in a black quantity.
So this 56,000 54,000 is a blended number of the galvanized and the black type together. So when we see our increase in quantity in black types this number would fall. So in this quarter our the value added products remained to the tune of 22,000 which was similar to the last Quarter and. But then the value then we had more sales in our black pipe. So that is one of the major reasons for the falling net realization of this. And then however, from the last quarter, in this quarter the prices of Eksha coins had increased. But this was the major reason of falling prices.
The neutralization like you said. And the second question is like what is your new GI code line and 30 kilo ton per annum API grade ERW plants are fully ramped. How do you expect.
Dhruv Singla
So your work flagged again. I’m sorry.
Vishal Dudhwala
Okay, okay, let me Repeat. Your new GI coal line and 300 kiloton per annum API grade ERW are fully ramped up. How do you expect per turn realization to trend?
Dhruv Singla
So see, after this is a scenario, by the end of year we’ll be only seeing the quantities of these two coming in by say the first quarter of the next year.
Something would come in in the last quarter as well. So this pertinent for the same shad trend onwards. But again we have to put in this material, as we mentioned earlier, we have to put in this material to the market test and penetrate into the new market that we are not presently available in or present in. So we have to give probably we have to penetrate by giving a higher amount of discount than our competitors in these markets. So if we. It’s safe to say that we’ll be having a higher neutralization. But not just for the fully ramp up.
We will have to take another six months for this ramp up in the next year to the full capacity and then we will be able to answer your question related to this. If you talk about the present scenario, we can see naturalization going up up to about 2,000 to somewhere between 2,000 to 3,000. But that is according to this today’s scenario. Okay, got your voice like. I will wait in the queue for the next question. Thank you for now.
operator
Thank you ladies and gentlemen. If you wish to ask a question, please press star and 1. We take the next question from the line of Jyoti Singh from LIC Mutual Fund. Please go ahead.
Jyoti Singh
Hello. Yeah, yeah, actually just wanted to know. Last quarter when I asked that there was a rise in steel prices, so we. But we did not see any sort of benefit coming into four. You had told that that will come in Q1, but in this quarter as well we are seeing that blended realization is down. Also the EBITDA bottom has been hit. So what has happened? Totally where are the benefits? In fact there is a bit. There is an inventory loss. So can you explain the entire Thing that has gone to it.
Pranav Singla
Hey Jyoti, hope you’re doing well. So basically in this quarter, the first two months, the HFC prices were on a rising trend. When we were able to in cash everything and the average additions are higher as well. But by the end of the quarter or by, it’s safe to say in third month of the quarter, the prices were taking hit. The prices fell by around 3 and a half to 3 rupees per kv of HRC. Eventually the hit came to us as well on the same ratio. So because of those situations, whatever gains one realized in the first two months of this quarter, those were offset in this quarter itself and eventually turn out to be losses.
Dhruv Singla
And to answer your question about the blended realization, as I mentioned in your last question as well, the blended realization is a take of the black and the galvanized together. So. So in the last quarter we did a higher galvanized site. And this quarter we did 22000. Last quarter we did 27,835 value added products. So the blended realization is. And we did a higher quantity as well in this quarter as compared to last quarter. So we that is what the blended realization entails. So if and when our value added products should go up, it will increase the blended realization and then the decrease in the same will decrease the blended realization.
Jyoti Singh
Okay, but what led to the rise in cost? And how is this getting into? Because your other expenses has reduced. Earlier I was on the intention that because you commissioned the DFT technology so that much that must have dented sort of ebitda. But there also we see that other expenses have been in control. So what has gone into it? Only just the cost of raw material increase.
Dhruv Singla
You’re talking about the legit realization or ebitda.
Jyoti Singh
EBITDA fall because the other expenses is also come down. So earlier I was of the view that because you have commissioned a DFT technology so there is a possibility of the expenses going up. But that is also under control. But still the EBITDA is down.
Pranav Singla
Ma’, am, there is a two factor relation to that. Firstly, the third month of the quarter we saw correction in prices. The prices fell and there was an empty loss of 1000 per ton. As Pranav mentioned in the last question that we were speaking about. And secondly, to push our DFT sales, we had to get our product out and about. We are normally serving only the Maharashtra region from our Maharashtra plant and some places of Gujarat. But to get up the DFT product out and about in the pan India basis, we have sent the product to Gujarat North.
So all the areas that we have obviously had to pay higher freight and also give special discounts to get our material to the floors of these dealer networks. So that is what the DST realization has not yet. So there is where the lag is.
Jyoti Singh
What sort of increase in the DFT volume can we see in coming quarters and how will this get offset like because now if you have given the discount will this be continued for the next quarter as well? Or there will be normally what should be the realization when it comes to DFT product for eps? Oh sorry for duty and dft.
Pranav Singla
DFT is this is not the say a basic structure of DFT realization that we should think and take into note. We it’s a completely new product for jpl. We are earlier producing majorly galvanized steel pipes, black pipes and those segments. Now there is a certain overlap of segment DFT and in the lower thicknesses and in the higher thicknesses where there are higher margins we are penetrating into that market in the next two months. Our target is to get to to those markets wherein there are higher realizations which include penetrating into EPC and contractors for various bigger projects with higher thicknesses.
So going into next quarter we will have this quarter we did about 7,500 tonnes. Our target in the next quarter is to double this capacity phase and in the forthcoming quarter then again have a similar run rate. So going forward it’s not a normal factor of discount that should be prevailing in the market. But yet we’ll be taking more conscious decision to penetrate into the EPC and contractor market for various projects that there are.
Jyoti Singh
Understood any guidance in terms of FY27? I think I missed it earlier. There’s a possibility they might have asked what is the guidance for volume as well as the ebitda portent for 26 and 27.
Pranav Singla
The guidance for this year is we’ll stick to 5 lakh terms of sales volume. The guidance for the next year we’ll do a 30% growth over five terms with rolling this year. Again Jyoti, the beta return is a tricky question for us right now because there was heavy Capex cycling. So as and when those products convert. To the flowing market those margins will. Come to the range of 4,000 rupees a beta. But that we mentioned. But for now as it is a. Transition fee for the company with new Capex. Well stuck to comment on the exact. Beta return. Our target eventually is to. Reach a. FY28 of 5000 rupees plus. That is something safe we can.
Jyoti Singh
When can we expect the DST to ramp up completely?
Pranav Singla
Ma’, am, in the next two quarters we are seeing at least a 50 to 60% growth in VST sales. So ramping up complete capacity is still a bigger question depending upon various market factors. As we mentioned earlier, due to export markets, we were contemplating opening of the U.S. and the Canadian market with the DFT segment. But due to Trump tariffs being implemented in these past months and nobody having any clear indication of the same, we were not able to enter those markets. So we still don’t have any clarity on these factors. So giving it a full fledged capacity utilization is a little tough for us to say right now.
But we are on the ground working on our capabilities to increase our sales in the domestic as well as the export markets.
Jyoti Singh
Okay, that’s it from my end. Thank you.
operator
Thank you. The next question comes from Ajit Sethi from Eco Quantum Solutions. Please go ahead.
Unidentified Participant
Thanks for the opportunity. So I just had one question. The demand for EAW pipes, domestic demand. Is 9 million tonnes and the domestic. Capacity is around 13 million tons. So why we are expanding in ERW pipes.
Dhruv Singla
So we are not exactly standing in the same capacity that we already have. ERW pipe segment is a very less research segment upon the data that you have. We actually don’t know how well corroborated. That is to be really honest and not to offend anybody here. But if you see our expansion that we are doing are not only in the ERW segment. When we are expanding in. When we expanded in DST it was a structural steel segment which is replacing the angle channels models. Now the second set of expansion that we recently announced in the API grade which goes into oil and gas segment, water transportation segment, Gargoy Dyer pipes.
We are expanding our SKU range. We are not expanding specifically the SKUs that we were earlier producing. Second part of our expansion is the sheeting or the pre galanized CR coils. Pre coated coils. This segment so which is not exactly related to the ERW segment is used in making various type of ERW pipes which is pre galvanized pipes coated pipes, open sessions. So that is a different area of expansion. Okay.
operator
Thank you. The next question comes from the line of Lokesh Kashikar from Smith Institutional Equities. Please go ahead.
Lokesh Kashikar
Yeah. Hi sir. Good morning. A couple of questions from my side. The first one is basically on the realization. You said that the third month in the last quarter will basically has been under. The realization has been subdued. Because of this we have to realize inventory process so how has been the scenario right now? Has the prices have been picked up and what the EBIT or inventory carrying process we expect to going to carry. On basically in quarter two. Hello.
Dhruv Singla
Yeah, hi Mr. Mukesh. So the realization for metric 10 as we tried to explain earlier is due to a blended realization of value added and black pipes. So wherein value added in the last quarter was higher than value added this quarter and we did more sales in black pipes this quarter. So the net realization has been decreased even after certain increases in hfoil prices. Now to come to the second part of your question of how. How do we see this quarter going forward? In the last month of June and this month of July we’ve seen correction in prices continuously.
Specifically due to the preset of monsoons and having less demand in the market thereof the same would be reflected and would be I think available in the news. With the companies like jw, Tata etc then offering certain price indications on the HR coins we can say that there was three losses in the last month of June and this month since we’ve been buying newer the products at the new prices. So they will be subsiding in this quarter and going forward we will have to see how the next few months are due to the monsoons and the demand thereof.
But as of now we are having a continuous run rate of what we did in the last quarter. So hope there is a good track we are able to extend achieve the similar amount and exceed the same as well the coming quarter in terms of volume. So that is what our outlook at guidance is.
Lokesh Kashikar
But sir, on EBITDA is it fair to assume that the some old inventory, so many old inventory having higher prices is likely to impact have some impact in quarter two. Due to which we expect we can expect some subduedness in EBITDA in quarter two and thereafter it will rise in quarter three and quarter four with the rise in demand. You fail to assume it’s.
Dhruv Singla
We see we we are only carrying our inventories of about 20 to 25 days. So what whatever major inventory loss had to come came in the month of June. Now as I said we we we we are purely new inventory in July so that those continuation of losses will not be dominated this quarter. So going forward we shall be maintaining the outlooks of a better EBITDA in this quarter. Sure.
Lokesh Kashikar
And secondly sir, we have recently basically commissioned our capacity basically on the DFT lines in mango plants. So you have already said the attraction has been some traction has been achieved and we have sold around 7,500 crores of metric tons of volume in Q1. But you have already said that you have invested some products in the region of Gujarat and other places. So just wanted to know how has been the acceptance over there of our product and where do you see that this demand come from? That. That area. And secondly when do you see that the realization on the DFT products to get to achieve around 5,000 metric per ton or that kind of EBITDA per ton.
Dhruv Singla
So the initial motive to send materials to dealer networks all around India was to showcase our product. And the acceptance has been phenomenal. Since it’s a state of our missionary that we put and acceptance has been phenomenal. That is the reason we are capable to say right now that second quarter demand. We are experiencing higher demand in second quarter. To add to this when we supply to the dealer network we are supplying to for a lower thickness scenario there which eventually is going for construction of buildings and replacing segments such as Channels IV’s borders. So that is what the replacement is of this pipe.
So there has been a considerable push with the dealer networks to replace it going forward. Now we commissioned our higher thickness line as well in the last month we are capable to supply thicknesses up to 14nm. So now we are targeting the EPC contractors and affiliations to organizations like BNC, MMRDA wherein we will be capable to supply to projects like Metro Railways, airports so and also the building projects of multi story buildings. So this is when we are able to supply to the project site. This is where the EBITDA per ton margin will kick in.
So that is what we are currently penetrating into and endeavoring for.
Lokesh Kashikar
Last question. So basically our interest cost has almost doubled on quarter on quarter basis. So why is it so? And what is our gross debt number and the capex we incurred in quarter one and what we six.
Pranav Singla
Interest Interest cost is double. It has crossed I think if you look correctly and the major increase in process comes from subsidiary of clubbing of clubbing of a subsidiary which is JD Engineering. And in first quarter we did a capex of close to 50 crores and we’ll be having the same run rate of 50 a quarter or somewhat? Somewhat a little more in the last quarter for this financial year.
Lokesh Kashikar
Okay. But sir, is it fair to assume. That the run rate of 2.7 2.8 crore of finance cost to continue ahead on quarterly basis? Thank you.
operator
Thank you. The next question comes from the line of Pratamesh Diwar from Tiger Asset managers. Please go ahead.
Prathamesh Dhiwar
Yes sir. Just one question. So did you mention that we are. Going to grow our volume by 30%. In F27 as compared to 26.
Dhruv Singla
Yes. We will grow our volumes by. 30% plus by next year.
Prathamesh Dhiwar
Okay, got it sir. That’s it for.
operator
Thank you. We take the next question from the line of Ajay Kale, an investor. Please go ahead.
Unidentified Participant
Yeah, my question is what’s. What is our outlook for quarter two? FY26.
Dhruv Singla
For this quarter we’re targeting
Unidentified Participant
in terms. Of units, in terms of volume.
Dhruv Singla
1 lakh 20,000 tons is a safe target for the volume that we have for this quarter.
Unidentified Participant
You know the numbers because in last meeting you said we will divide 5 lakh metric tons mainly. First half will be 2.5 metric ton and the second half will be 2.5 metric tonight. So this quarter we achieved 1.08. So if I add 1 point, say 2 then we will miss the volume target. So why are we planning the lower volume for this quarter?
Pranav Singla
No, this is a safe target for us. Obviously our aims to achieve a bigger number than that. And when I mentioned last year the average run rate for this, I was saying in this way that our capacity expansion part of our GP calls is coming in third quarter which will be increasing the volume flow as well. So run it. How it will happen is if we miss out some volume of 2.5 lakh tons and Q1, we end up covering a much more bigger number than that in H2.
Unidentified Participant
See I understand typically the feature always looks bright. But why we can’t achieve the numbers 2.5 metric tons. So is there any specific reason? Is it the ground inventory, is it the demand or is there any other. Other thing which is
Dhruv Singla
just ramping up our capacity? We are ramping up our new DS capacity few quarters. So if I’m saying that we may. Be. 2.0 lakh tons by 10,000 tons in Q1 or 12,000 tons in H1. So it’s not even a 5% gap that I’m talking about which will eventually come up in H2. Anyways, if you talk about the growth quarter on quarter, 30% growth with Q1 and year on year, 20% plus growth as well. The growth rate will just be on higher ranges irrespective.
Unidentified Participant
Yeah, I completely get that. So I’m not concerned about the growth. I’m more concerned about the outlook or the planning that we are projecting for the full year basis. Are we strong enough to ensure the volume gets delivered?
Dhruv Singla
And yes Mr. Ade, we are confident enough to deliver in the range of 5 lakh tonnes. It is a lot of contingencies come up with as we’ve been talking since the beginning of a call with the price lifting situations, with the tariffs, with deliverables in DFC etc. So these contingencies are prevalent at the moment. So our target is obviously higher than what we are currently considering.
The one like 20,000 tons plus 1 lakh 10. The one like 8,000 tonnes that we did in the first quarter. 1 lakh 20,000 tons we want to do in the second quarter is the is the bare minimum that we have mentioned here. We are obviously not going to stop at 120 or 108,000. Yet our target is much higher. These things kick in as and when our capabilities and our markets are better. So to say put it out there. 5 lakh ton is the target for the year. Our target is the to achieve the 225 for the H1 and the balance in the next quarter while kicking in our new capacities of the GI coils last quarter color coding coil.
So that is what target.
Unidentified Participant
Yeah, I get that, thanks. Second question is what is our between distribution led business and the direct business? And what is our ground inventory in terms of volume as far as distribution is concerned?
Dhruv Singla
So distribution led business is around 50 to 55%. That keeps on fluctuating according to the distributed demand. We do not hold any unsold stock at the distributor floor. So the how it works in our business is that everything that is sold to the distributor is the distributor’s inventory and not our inventory in his stock.
Unidentified Participant
You know I get that point.
What I’m trying to tell you is that in order to have since you. Are 50 more than 50 or close. To 50% is the distribution. How is the ground inventory for your dispositor? Do you have the tracking mechanism of your distributor’s inventory?
Dhruv Singla
There is a margin sharing that we have with the dealers. Once the product leaves the factory, the. Product is sold for us. There is a margin sharing or share sharing that we do with the dealers.
Pranav Singla
I understand what you say is that how we have that you need to ask what percentage of our product is a dealer key thing?
Unidentified Participant
Yeah, my thing is once the particular say month is over, what is the ground inventory that you are distributed because basis that you can actually assess the demand. For example if he’s having say 1 lakh metric ton inventory at the closure of say June. So in that sense what is the inventory because basis that you can have the better positions or you can assess the market demand better. Right. That is majorly the distributors are not listed entity.
They are all private entities. We only get to have macro level data from our marketing people present on the floor at various distributor levels. So getting a sense of how full the dealers talk is what. What makes us understand how the demand for the next quarter is going to be. Say it depends upon now it’s a very open market regarding the prices. And a dealer is not only procuring EAW pipes so they’re building product dealers who are securing angle channel garden, they’re also procuring sheet, they’re dealing directly for HR coils with the companies like jsw, Tata.
So all these mechanisms also inform them about what the price trend is. So when there is a correction in the market the dealer stock also declines. And we see that happening on a quarter correction basis wherever there has been a correction. So the demand shift to a back to back demand basis when the price correction happens. But when the price increases then that is where the dealer starts talking up. So this is how the basic mechanism of the market on the dealer front end however oem they know this is the minimum quantity they need to produce.
So they have a fixed demand per month basis. Sir, I get what you just said but still my questions remain unanswered. So is there any mechanism by which we have the the inventory of our product? Not. Not. I’m not concerned about other companies, our products, whatever we sell to our distributor. Do you have the mechanism? No, no, no. Nobody has that mechanism in the market. I believe we don’t have the mechanism to know how much of our product is unsold on his. Because the products are common. If you do, if you do not see the stamping on the product.
We don’t. We can’t get to know if it’s April Apollos or jtl. So that is not visible from the naked eye.
operator
Thank you. We take the next question from the line of Aditya Velikar from Access Securities. Please go ahead.
Aditya Welekar
Yeah, just a couple of questions. We have seen that means this capacity we have slightly raised it upward from 20 lakh from earlier target of 20 lakhs to 22.5 lakhs. So from funding perspective we are comfortable, right? We are not planning any additional funding.
Dhruv Singla
No, we are not planning any additional hunting repair right now.
Unidentified Participant
Okay. And our full year capex guidance. I think I missed on that. So it’s near about 240250 crores for 26, right?
Dhruv Singla
Yes, that’s right. It can be plus minus 10% as well given on the machine as a price. But it’s in the range of.
Unidentified Participant
Understood on the on the exports you when I asked earlier so you were seeing some Trump impact of Trump tariffs and also we have a target of 10% exports for FY26 and so how do you foresee that that area means do you see some headwinds emerging for our DFT products or other products in exports.
Dhruv Singla
For the certification of the CE certification We just got the new CE certification for our DFT products in the first quarter by the middle by the end of May. So right now we are offering our products in the European market. But there is no demand from the American market or the Canadian market because of the tariff at the moment. So we are still waiting those markets to open up with the settlement of the various tariffs that the Mr. Trump has to impose. So going ahead our Target still remains 10% or under 10% just below the 10% for the export markets.
We certainly with the new certification newer buyers and the markets will open up in the European segment, the African and the Australian segment as well. We are working on the same and the next six months will be shall be more shall give us more clarity on how we are propositioned to sell our DFT products in these markets. We are on track as per the last year for our galvanized price product exports that we have already seen with the current exports that we did in the first quarter. Understood.
Unidentified Participant
Thanks a lot. Thank you.
operator
Thank you. Ladies and gentlemen. Due to time constraint we take that as a last question and we conclude the question and answer session. I now hand the conference over to the management for their closing comments.
Dhruv Singla
Hi everybody again thanks a lot for your time and to come out and listen to us for our Q1 results. Well appreciated. See you in the next quarter. Earning calls. Thank you.
operator
Thank you. On behalf of Luama Wealth Management limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.