Kirloskar Ferrous Industries Ltd (NSE: KIRLFER) Q1 2026 Earnings Call dated Aug. 05, 2025
Corporate Participants:
Unidentified Speaker
R. V. Gumaste — Managing Director
R. S. Srivatsan — Executive Director (Finance) and Chief Financial Officer
Analysts:
Unidentified Participant
Pallav Agarwal — Analyst
Aman Madrecha — Analyst
Nirmam Mehta — Analyst
Aashav Patel — Analyst
Dignat Haria — Analyst
Mahesh Bendre — Analyst
Sahil Sanghvi — Analyst
Bharat Sheth — Analyst
Prolin B. Nandu — Analyst
Siddhant Singh — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Kirloskar Ferrous Q1 and FY26 earnings conference call. As a reminder, all participant lines will be 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 this conference call please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pallav Agarwal from Antique Stockbroking. Thank you. And over to you sir.
Pallav Agarwal — Analyst
Yeah. Thank you Amshad. And good afternoon everyone. Welcome to the first quarter FY26 earnings call of Kiloski of Harris. We have the senior management of the company represented by Mr. Rumaste the Managing Director and Mr. R. Sriwatsan the Executive Director Finance and the CFO. So I would now like to hand over the call to Mr. Gumaste for his opening remarks. Over to you sir.
R. V. Gumaste — Managing Director
Yeah. Good evening and welcome to the Kirloskar Ferrous Q1 quarterly call. Quarter one of financial year 2526 has gone I would say reasonably well. In spite of the headwinds we continue to have commodity price pressures especially in Pigern and steel.
Whereas casting we are able to experience increased demand position with tractor industry doing well. So all of our foundries are loaded to full capacity to deliver to our valuable customers on the seamless tube sector. I think the demand position continues to be good with our various product offerings. For the quarter one. Looking at the sales for the quarter one. So we complete closed the quarter one with 1,685 crores of sales against last year. Quarter one of 1554 crores a growth of 8 and a half percent with EBITA at 214 crores against last year’s 187 crores growth of 14% and PPT at 130 crores against last year’s 104 crores and PAT at 96 crores against 76 crores last year. With respect to volumetric I would say that we are more or less similar with respect to Pigeran. Together with Coppol and Hiryur suggest a difference of about 1%. We have a growth in the casting of 6% and whereas both Amandagar and Baramati put together growth of 32%.
This is against the last year’s subdued quarter one. So I would say that the growth subsequently is picking up and we expect better numbers in the coming quarters. Whereas the production of steel was down because of the maintenance shutdown whereas sales continues to be with the inventories what we carried. So figure and sales down by 2% whereas casting sales is up 4%. And steel and tube sales with respect to last quarter is substantially improved. We see 42% growth over the last year first quarter whereas steel is improvement of just 4%. As I mentioned, the casting sales improvement is 6% whereas figure and sales improvement overall is 5%.
Whereas in money terms we have lost because of the commodity prices especially in Pgaron and also in steel and tube sales realizations. We hope that sleeper and will stabilize at these levels because it has come to very very low margin levels. Whereas cube we are yet to start the high value sales starting with oil and gas orders we yet to start deliveries. Overall I would say that the start of this quarter one has been good and we look forward to improve further based on the improved performance in quarter one Going forward we are experiencing very strong demand for the castings and tube mills especially have started performing.
We are ramping up the volumes both in terms of production as well as sales. Also we have been able to enhance the output in steel. We are yet to see a pickup improvement in steel but we look forward to improved sales in the coming quarters. Thank you very much for joining once again and I look forward to your questions so that those could be addressed. Thank you very much.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of AMAN from Augmenta Asset Managers llp. Please go ahead.
Aman Madrecha
Hi sir. Thanks for the opportunity. So first of all can you let us know like what kind of power cost are we incurring as a percentage of sales for the tubes division? Because previously we used to highlight that the power cost was very high. And secondly, what is what kind of benefits can we expect post commissioning of the mini blast furnace as a copal for the Duke division?
R. V. Gumaste
Yeah, first of all, at the company level last year first quarter the power cost was 8.9% and this year’s overall company level the power cost is 6.1%. This is power and fuel put together. So we have substantial improvement mainly because of the fully commissioning the 70 megawatt power plant and which is in operation now and we are in the process of erection and commissioning of the wind means the additional benefit will come after the commissioning of this.
Aman Madrecha
Again on a follow up on this thing. So like for the tubes division what is like stopping the margin? Like what is entering the margins to grow from here? Maybe a single digit debit margins that we’re reporting. So like what can lead to growth in the margins? And secondly we were listening to some of the companies in the tube division they were highlighting of the increased Chinese dumping. So could you please highlight on that too?
R. V. Gumaste
No, I think there has been continuous dumping of the Chinese seamless tubes we have been taking up with the government But I think actions are abated and we hope hope that those actions will be taken. But there is rampant dumping of tubes in different forms and there is nothing to stop right now, at least till date. So we have to compete in spite of that situation. And definitely items like line pipes we have lost the margins substantially because of the price war in Chinese company.
Aman Madrecha
Okay, so you didn’t highlight that thing. What kind of benefit can we expect post commissioning of the blast furnace at Copal for the tubes division?
R. V. Gumaste
No, I think I understand that we have the plan to convert one of the mini blast furnace figure and into steel and thereby feed the Baromethi plant with steel manufactured in copper. And we expect a substantial value addition improvement with that and of the order of about 12 rupees per kg and we have already gone ahead and taken the moe of clearance and pollution clearance and we are starting the project work shortly and it will take two to two and half years to operationalize the steel. Blue Manufacturing Incorporated that is our next plan of mitigating the higher cost of manufacturing these three leg.
Aman Madrecha
The capex for the same is around 700 crore, right?
R. V. Gumaste
Around 700 to 800 crores is the expected capex on that.
Aman Madrecha
And sir on for the tubes division like what kind of margin benefit can we expect? Like are all the things that we are required to do be it on the power cost side, be it on the integration with the existing structure. So like what kind of margins can be expected or everything is done from our end result that the industry industry agenda that that’s why we’re not able to report the margin.
R. V. Gumaste
No, I think if the steel manufacturing cost if it is taken care. Well, we expect that the tube division will continue to operate at 15, 16% EBITDA. But if we take the iron ore mining to tube manufacturing, the EBITDA levels overall consolidated EBITDA margins will be much better than 15, 16%. But this benefit is not coming in this field.
Aman Madrecha
Okay, but this benefit is not coming, so. Is not coming.
R. V. Gumaste
Yes, it won’t be. But in the meantime, you know, if two, three important steps. One is our progress on solar and wind is one cost mitigation program. It’s not just going green, but it’s also cost reduction program. And in addition to that you have seen we have enhanced the outputs to some extent with the debottle leaking. But we are looking for as quickly as possible to bring the steel tube run rate to, you know, to higher level. Like together at least we should make 2 lakh conservative sales which will also help us in reducing the cost and it should at least help us to take to 14% EBITDA level for the tube business in spite of the higher cost of scale.
Aman Madrecha
If we, if we, if we reach the 2 lakh ton volume target, we can expect some high double digit EBITDA margins over there.
R. V. Gumaste
Correct. Correct. Yes.
Aman Madrecha
And sir, lastly yesterday in the agm, I don’t recall whether you are chairman, sir, highlighted at the companies in talks with some European buyers for the steel division. So could you highlight much more on that like what is happening and what are we thinking over there?
R. V. Gumaste
Not exactly on the steel side, I don’t remember European customers. Basically, you know, our castings are dealt export to European customers because the castings which get machined or castings which get converted to engine are going to Europe and it’s about 25% wind export and I think it must be referenced to that.
Aman Madrecha
Okay. Okay, I’ll get back. Thank you.
R. V. Gumaste
Thank you very much. Thank you. Thank you.
operator
The next question is on the line of Nirmam from Unique pms. Please go ahead.
Nirmam Mehta
Yes sir. Thank you for the opportunity, sir. Over the past decade we’ve undertaken a lost lot of cost optimization projects, a lot of backward integration. So in your experience, how much of the benefit do we retain and how much of the benefit has to be passed on to the market, you know, over a period of time?
R. V. Gumaste
No, I think all the projects which we have taken, they have given the benefits in line with the plan and where we have compelled to pass on to the customers is in the area of steel. Whereas we continue to retain the margins in case of casting and tubes.
Nirmam Mehta
Okay, sir. And on the power and fuel Cost side, how do you think about that?
R. V. Gumaste
Basically there are two, three definitely intentions in bringing down the power and fuel cost. One is maintaining cost competitiveness which means that partly we could be passing off. Second is to reduce our manufacturing cost which means that we should be improving our margins and going green. So luckily for us all these green energy projects meet all the three requirements and naturally we’ll be passing on something. But our effort is to improve the profitability of our company as well.
Nirmam Mehta
Okay, so that’s helpful and so just continuing on the tube segment. So you know the competitor mentioned about slowing down slow capex in the oil and gas sector also. So how according to you, you know, how is the demand side of things and if you could provide a broad outlook for the segment.
R. V. Gumaste
We are a moderate side player in the market today we are still talking about 200,000 tubes. So rather I would say that we are looking towards how do we announce this capacity to 3 lakh or 3 lakh 50,000 metric ton per annum. And we see great opportunity for us to expand the capacity and we see market opportunity for KFIL to expand and not only just Island Gas but every area of application. We have been doing well in the power sector. We are doing competitively in the line requirement. So we will continue to look at the opportunity and bring our capacity to reasonable level.
Like other competitors we are committed for investments to expand in the tubes and cash.
Nirmam Mehta
And so you mentioned you, you can reach you know, 14% EBITDA margins once you can do 2 lakh tons of sales. So you know, is there a timeline or how do you see.
R. V. Gumaste
No, for example we are, we are looking at achieving 200,000 this financial year itself the profitability as you know, so they get protected with many things like you know, dumping or. But even at this level I think it is possible we have to commission couple of power projects but otherwise I think the 2 Division should give us that level of, you know, EBITDA.
Nirmam Mehta
Okay, so yeah, that’s it. Thank you. That’s it.
R. V. Gumaste
Thank you very much. Thank you.
operator
Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in this conference, please limit your questions to two per participant. The next question is from the line of Ashok Patel from Molecular Ventures pms. Please go ahead.
Aashav Patel
Very good evening. Thank you for the opportunity. My first question is that over last three quarters we have seen robust improvement in terms of tractor casting volumes. Now the tractor casting industry has been posting all time highest quarterly sales volume but we continue to struggle at the same Quarterly volume run rate around 33,000 for last more than two years now despite having the incremental capacity which is available to us. So what exactly are we lacking? Sir? Why are we not able to increase our casting volume? What is the challenge we are facing? And do you feel 1.7 lakh target can still be achieved for this financial year?
R. V. Gumaste
Thank you very much for the good question. I think there have been a couple of issues where we were struggling with. One was the product mix related. Though improvement was seen in the market but still we were unable to adjust. I think the real improvement in the tractor industry started with middle of May. April was not that great. May also. So we didn’t get the full benefit of improved market condition in quarter one. I’m quite optimistic that the volumes will pick up the first level of we are looking at something like 40 plus kind of sales volume quarters should support us.
I think we have also started getting the benefit of Oliver Foundry started selling about thousand tons per month. And we are looking forward to taking it to further and higher level. We are looking Forward to doing one 70,000 maybe including Oliver Foundry volume.
Aashav Patel
Got it sir. And sir, with regards to the current profitability in the tube segment, what EBITDA margin range would that be? You mentioned that we strive to go towards 14%. But what would it be?
R. V. Gumaste
A real real struggle in maintaining or retaining EBITDA levels is in figure and I think those are the two sectors which have been struggling over the last two to three years. Continuously the product prices have been dropping, Sales realizations have been going down and even in this quarter with respect to Last year quarter one figure and realization has come down by 8%. Tasking realization has come down by 1%. Realization has come down by 2 13% and overall division realization has come down by 9%. And Jeju Steel realization has come down by 6%. See the profitability what we have been maintaining has been in spite of these deflationary pressures.
For example, the pigger over the last two years has come down by 38%. So in spite of this we have been able to maintain or manage the profitability and margins only because of various cost reduction projects we have taken and we continue to work on those projects. We have confidence with respect to long term sustainability of these businesses. We are doing the more and better well integrated. Starting from mining to going up to tube. We are also bringing up steel making. I am sure that these projects will will further strengthen competitive environment in the market.
Will remain in certain challenging times. Three years Steel, iron and steel related industry has Continuously gone down doesn’t mean that it won’t come up. It should come up. And that’s what I have seen over the last three decades. What goes down also comes up.
Aashav Patel
Got it. And so within tube segment we will. I also tracked the other peers of ours in seamless tube division. So for them OCTG is more than a 50% contribution in the sales mix. And the margin and profitability in OCTG segment is significantly higher than rest of the segment. So why don’t we focus on scaling up this OCTG segment sales mix for our ISMT facility?
R. V. Gumaste
We will be doing that currently.
Aashav Patel
Sir, what percentage of contribution is coming from OCD segment? A rough figure.
R. V. Gumaste
Figure could be around 20. Around 20%.
Aashav Patel
And in this space even the dumping competition won’t be there. Right. Because the companies like for domestic vendors.
R. V. Gumaste
There is competition but it is coming competition among three of us and we have to compete with each other and we have to have capacity to offer to domestic supplies as well as exports.
Aashav Patel
And so with regards to.
operator
Sorry to interrupt sir, but I may request you to rejoin the question queue for follow up questions. Thank you. The next question is on the line of Dignath Harya from Green Edge Wealth. Please go ahead.
Dignat Haria
Two questions. One tube segment. You just referred in your opening remarks that you know the factories are doing well and you know we are still to start the high value added. So is it, when you say high value added tubes, is it the same as what Ashwa was referring which is the oil country tubular, you know, Is that the one you are referring to?
R. V. Gumaste
Yeah, correct. That is the one. Because the line pipes are not high value but the premium couplings for example are the high value. Those orders are yet to start.
Dignat Haria
Okay, okay, okay. This whole tractor thing, you said that it is only mid of May that you know, actually there is some, you know, decent traction in the market. So you see this lasting for a quarter or you know, this is a slightly longer trend and you know we can really have a good shot at 1 lakh 70,000 tons this time.
R. V. Gumaste
I wish it is sustained for long.
Dignat Haria
No, no sir, but just in case.
R. V. Gumaste
No, the conditions are conditioned for sustained pickup. Because this year also last year, you know, the bumper rains and bumper crops this year again overall there’s good spread and expect the tractor industry progress to continue for longer period. I think that’s what is my expectation. Yeah. Okay.
Dignat Haria
Okay. So if we, you know, if we God willing, if we reach that 1 lakh 70,000 tons like you know what would be just because of the industry doing well and you Know how much would be because we introduced maybe some new products, some new customers or you know, something like that. If you can just give us some ideas.
R. V. Gumaste
No, I think currently if you look at we are continuously adding new customers. In the last quarter also we have added two customers. We have started developing the parts for them. And we are developing lot of many castings castings for the existing customers. And we are expanding. Expanding our presence with Oliver in the north as well. And the current level of development is definitely in line with we going to about 200,000 tons per annum or 16 to 17,000 tons per month sales. And that level I think very shortly we should be reaching those levels very shortly to start a run rate of 2 lakh metric ton per annum casting sales volume though we will not realize that number for this year.
But it will lay the very strong foundation for reaching those volume for the next year.
Aashav Patel
Really. All the best for that. And the last question is a technical question that when does our NSC listing happen? Because you know for a company of our size and caliber, you know we. We should be listed on msc. So just wanted to know an update on that.
R. V. Gumaste
Can I leave that question to Mr. Sritson who is on the count please?
R. S. Srivatsan
Yes sir, I am on the call. Yeah, good evening. We are making the application to the NC and we will pursue it and see that it comes up.
Dignat Haria
But any timeline because we’ve been waiting a long time. You know this Oliver merger happened and you know before that the ismp. So any timeline that you have for making that application.
R. V. Gumaste
Actually waiting for the completion of the merger total activities almost it has come to an end now. So before we yesterday we announced even the merger of Albika and Oliver proposal. Before that we would like to use the NSE also application is being prepared and we’ll be filing it. Okay. Okay. Okay. Okay. Thank you. Can we say that in this quarter we filed the application 3.
R. S. Srivatsan
Sir, there are two couple of things which we need to do that I know internally. Yeah, but we are working that early we complete it. Yeah. I think transactions are more in nsc. That’s why we interested. Correct? Yes.
Dignat Haria
A lot of funds will buy only if it is there on nse.
R. V. Gumaste
We got into this issue because they permitted us for the trading on NFC and then they withdraw. So we’ll make the application and get listed on regular basis as early as possible.
Dignat Haria
Thank you. All the best.
R. V. Gumaste
Thank you so much for being with the chance. Thank you. Thank you very much.
operator
Thank you. The next question is from the line of Mahesh Bendre from LIC Mutual Fund Please go ahead.
Mahesh Bendre
Hi sir. Thank you so much for the opportunity. Sir, I have one question. So what kind of volume growth we are anticipating across our business? Three divisions for this year.
R. V. Gumaste
What kind of volume growth? Yes. No, but you know if you. We have put up on a regular basis. We are working for taking our casting business towards at least known level of 2 lakh 52 lakh 60,000 metric ton per annum. We are also looking for expanding this making from 3 lakh to 6,50,000 metric ton per annum. We are also working for taking the tube first to a level of 2 lakh metric ton per annum and subsequently expand IT up to 3 lakh or 3,50,000 metric ton per annum. Whereas pigger which temporarily or for short period will go up to seven seven and a half lakh metric ton per annum will come down to five lakhs once we increase the steel.
These are the expansion plans which we are working. Over the next two, three years these projects will get completed and the various project commission will bring these volumes on all the three. All the four product lines we are working with.
Mahesh Bendre
So are these. I mean we are expanding our capacity doubling capacity. So and. Or we will set up the capacity and then we look for the orders.
R. V. Gumaste
No, in case of taskings we are developing the components and our capacity creation is in line with our customers requirements. And many of the products are already in the development. And in case of tubes we have been participating in tenders. We fall short of volume capacities and we feel that we should be able to load the mills once we expand the volumes. Right now maybe we will suffer ld with the commitment. So that’s why we are trying to expand on the casting. And in case of steel we’ll have to. Our presence is very small with less than 1 lakh metric ton of yellow steel per annum which we plan to expand to 3 lakh or 2.5 lakh metric ton per annum.
We are. Our confidence is that we should be able to sell that kind of volume with the competitiveness and the manufacturing cost.
Mahesh Bendre
Sure sir, last question from my end. So what are the Capex plan for this year and next year?
R. V. Gumaste
Sir, you know, as you have seen, we have put in an investment of close to 2500 crores including acquisitions over the last five years. And in order to double our turnover as well as double our holdings in most of the product lines except Picaren we need another 2,000 to 2,500 crores over the next three to four years. And this year the Capex plans are of the order of 500 to 600 crores. Sure.
Mahesh Bendre
Thank you so much sir.
R. V. Gumaste
Thank you.
operator
Thank you. The next question is on the line of Sahil Sanghvi from Monarch Network Capital. Please go ahead.
Sahil Sanghvi
Yeah. Hi, good evening. Thank you for the opportunity sir. And good to see some improved performance this quarter. My first question is sir, regarding the Jambunatha mine, sir, with the two, three things over here sir, if you can help me with the annual EC production that we have the capacity and secondly any kind of plans that you’ve made around how we will tackle the high premium and what kind of, you know, eventual cost do you expect from this mine. And the third would be the timeline to get some more from here. So if you can help on this front.
R. V. Gumaste
Yeah, thank you very much. First of all the easy capacity for this mine is 1.2 million ton per annum. And we plan this is a high quality mine, good quality iron ore. And we have some requirement like making the estee grade bigger and maybe in future making ductile iron pile requires again low phosphorus, low maintenance, high quality iron ore. So this is one of the, you know concept to manage the high premium levels. And also we plan also to do mining up to 45% FE. Low grade and high grade both. And we will be also doing the beneficiation, we’ll be doing pelletizing.
So all these combinations should be ensure our ability to manage the high premium. And overall, you know we will have our own iron ore of 1.5 million ton per annum with beneficiation with pellets and thereby overall add value on top of that and bring down the. Try to bring down the slightly the cost but secure the raw materials for the next 25 years. That is the plan.
Sahil Sanghvi
Any timeline you can give as in what is your.
R. V. Gumaste
So we have just received the, you know, the preferred bidder letter from government of Karnataka. We have already started working last year. We took five years. I hope to complete all this process this time within three years.
Sahil Sanghvi
This is not at the mercy of the government now so. Or the regulatory authorities. I think now it’s in your hands. I think as much as I think.
R. V. Gumaste
Dependency on various levels of approvals will continue. So only the experience should help us to do it shorter than last time, whatever time was taken. But it involves many steps and can take time as it is mining in the forest area.
Sahil Sanghvi
Sure, sir. And my second question would be sir, on the four volumes that we were expecting to start. Sir, I understand you have mentioned Q4 in the presentation. Is that the realistic timeline now?
R. V. Gumaste
Sir, we have started the production and we have supplied More than 800 blocks in the last month. It is now serial production already started. We will be doing the volume ramp up carefully, cautiously. It’s international supplies subsequently and I’m sure the volumes will start growing and we will reach the levels of substantial supplies like maybe 5,000 per month or the next six months.
Sahil Sanghvi
5,000 per month you’re saying, sir? Because I think initially we had a target of 1200 tons per month, even.
R. V. Gumaste
1200 tons and 17,000, but current volume of engine manufacturing is 12,000 per month. And I’m saying out of that we should replace 50% in next six months and subsequently keep ramping up and go to 12,000 members or 10,000 members per month as early as possible. It is both confidence on our part as well as confidence on customers. These are very high and very critical blocks and we are trying to together, we are trying to do the import substitution as quickly as possible. We are through with all the approvals and we are now in the face of ramping up the serial production and serial supplies.
And we have already entered that phase, hope that we should be able to ramp up a full volume within six months. But it all depends on how much.
Sahil Sanghvi
Does that convert into tonight, sir, because. I believe you are speaking about numbers.
R. V. Gumaste
I think it is numbers. Now looking is of the order of 800 tons per month.
Sahil Sanghvi
Okay, okay. And this you expect to ramp up to what number in tonnage by end of the.
R. V. Gumaste
See, as I told you, it’s a little bit complex items. It’s not as easy as we thought in the beginning. But my optimistic looking is go to a level of 8 to 10,000 tons per month. Sorry, numbers. 8 to 10,000 numbers per month in next 6 months time.
Sahil Sanghvi
Got it, Got it. Thank you. Thank you very much.
R. V. Gumaste
Thank you. Thank you.
operator
Thank you. The next question is from the line of Bharat Sheth from Quest Investment Advisors Private limited. Please go ahead.
Bharat Sheth
Hello, Good evening, sir. B here. Good evening. So little more understanding now this solar pool phase 2 high pressure molding, that which we were expecting to start in this quarter. So what is the status and when we will start commercial production out of that foundry?
R. V. Gumaste
Sir, we have already started the commercial production. We have reached the level of 1,200 tons per month. Old Foundry is producing and selling 3,000 tonnes and New Foundry is producing and selling 1200. And our effort is to reach a level of 5,000 tons per month from 4,200 tons per month in next three months and go to maybe higher numbers within the next six months.
So already ramp up has started. We have some keeping challenges but we are trying to work on them and realize the capacity utilization.
Bharat Sheth
Second sir, any color on these two parts foundry where say very high volume. I mean we casting any movement on that front or any update
R. V. Gumaste
No, in between i t went little slow once again last year. Few weeks, last six weeks. We have been pushing the project people to progress and the cash flows also slow down sometimes. But now I think it should go ahead and within next one year we should at least start commissioning the first phase of two part foundry.
Bharat Sheth
And that that is capacity will be 10,000 ton. Correct? Is that fair? I’m just telling you
R. V. Gumaste
No capacity would be around 12 to 15,000 ton.
Bharat Sheth
Okay. And so again.
operator
But I may request you rejoin the last question.
Bharat Sheth
Last question. Okay. Hello. Yes, sir.
R. V. Gumaste
Yes.
R. V. Gumaste
See last year we booked incentive of around 13 crore. How much do we expect incentive in this year? This is for Mr. Srivatsan.
R. S. Srivatsan
Yes. Yes sir. I expect as of now what is confirmed is coming around 15 crores.
Bharat Sheth
For the full year?
R. S. Srivatsan
Yes, for the full year.
Bharat Sheth
Okay, thank you. And all the rest.
operator
Thank you. The next question is from the line of Prolin B Nandu from Edelweiss Public Alternatives. Please go ahead.
Prolin B. Nandu
Yeah. Hi. Namaste sir. Thank you for taking my question. You partially answered my question on the new customer. Right now I’m just looking at the slide and if I look at the number of customers, it’s the same right at 26. While you mentioned that you have added two new customers. So you know, is that, that you have to let go of some customer and these are new customer that you have added. But the larger question sir is that, you know, in the past we had mentioned that, you know, there were some teasing issues in terms of getting the new product approval.
It takes time. Oliver also was, you know, production had to be stabilized. And you also mentioned that in, in terms of the fourth order, you are taking it slow. Right. So I just wanted to understand that in terms of our ability to cater to new customers, new product, are we now lot more confident than we were, let’s say six months back or a quarter back? And this cautious approach on Ford is just how the, you know, how things ramp up in a typical foundry. Or is it that something at our end also needs to be taken care of in terms of our ability to cater to orders of this kind of complexity? So, so more the question is more on, you know, how is our internal capability to deal with new customers and new products for the same customers as well.
R. V. Gumaste
Yeah. Thank you very much sir. First of all, on the Number of customers. Sometimes we get confused with this but two customers did not go out but their projects got cancelled. Those they decided to drop the project. So we got whatever like money spent but project did not go. Hence we removed those customers from the list but they are still there hopeful of getting some somebody stop manufacturing in India that kind of thing to customers. But we added two customers so it remains 26 again. With respect to Ford ramp up we are looking forward to ramp up quickly.
We have finished all the processes of development approvals, testing, validation. Everything is done all Ford Corporation also in the approval process but all done and we have now entered into the serial production and and I’m hopeful that we can reach the levels those volumes may not go like what we thought earlier. Full 200,000 per annum but current level is 140,000. 140,000 numbers per annum and I expect that at least we reach 8 to 10,000 numbers per month in next six months. Sure.
Prolin B. Nandu
Again the question remains that are we very confident on our ability to meet any such new orders in the future as well as complicated as 4 or. We need to probably, you know work on our capabilities and including this integration of some of the boundaries that we have probably acquired. So how. How are we feeling in terms of. Our ability to meet some of the. New customer requirements and catering to new customers as well?
R. S. Srivatsan
It is quite common, quite natural. Sometimes feeling nervous about our capabilities unless we fully acquire the capabilities. If you ask me whether we are very very confident. We are never very very confident. Every project is a challenge to us. We want to handle it carefully. We want to take the challenge, we want to survive the difficulties and successfully pass the test of the every project. These are like either the import substitution or deal exports and the customers new products are difficult ones to do and Ford is also one of them. And as far as my team again I’m in Solarpur reviewing that team is confident but whether they will very quickly ramp it up to full capacity.
They will take time to ramp up to the capacity. Understanding is go to 8 to 10,000 in numbers per month in six months time. I think that more or less should happen. Something more can happen, something less can happen. But that is the way not only Ford, we have so many other customers other products also in the development stage and which can load the foundries keeping the capacity for Ford and that’s what we are working at and that is the the project progress plan for the coming months. Thank you very much sir. I hope I have answered your question.
Prolin B. Nandu
Yeah, thank you so much. That’s it from my side.
operator
Thank you. The next question is from the line of Siddhan Singh from Green Portfolio pms. Please go ahead.
Siddhant Singh
And congratulations on your year on year performance. So I had a question. You earlier mentioned 500600 crores of capex in FY26. So can you please bifurcate this further?
R. V. Gumaste
Yeah. Thank you very much. I think you all of you know it. One of the major area of spending is on green power. Now it would be like wind and solar. More of wind than more of solar. That’s one area. And the second is startup fee steel project and expenditure on that. We are also planning you know upgradation of some steps being taken on that. Some ongoing casting machining projects which will take shape. For example we are setting up a machine shop in Oliver as well. That’s another area where we are investing our money.
And as I mentioned earlier debottle making projects are still happening in steel and tube division including infrastructure development. These are the four, five major areas where we will be investing this 500 to 600 crores during this financial year.
Siddhant Singh
Thank you so much sir. And before in the earlier call you have mentioned MOEF clearance is secured for the new electric steel melting. So can you please give a concrete timeline for this project and the expected case allocation you have done like. Thank you very much.
R. V. Gumaste
This would be steel making or converting to steel blooms at Copal facility. This would be 3.6 lakh metric ton per annum. The capex would be 700 to 800 crores. And MoEF clearance and also consent to establish is in place will be shortly starting the project work on ground execution and we expect to complete in two and a half years.
Siddhant Singh
In two and a half years. Thank you so much sir. And one more thing. This will be my last question. Can you please tell me the decline in revenue despite the operational ramp up. We have done like we have increased the volumes but still the top line suffers.
R. V. Gumaste
No, I think it’s only the effect of commodity. I just mentioned some time back that pigger and prices have come down by 8%. Casting prices have come down by 1%. Tube prices have come down by 9%. Steel prices have come down by 6%. When we grow tensorflip.
Siddhant Singh
Yes sir.
R. V. Gumaste
78 goes in this. We have been handling this challenge here quite successfully. Especially figure and has come down by 38% over the last two years. Challenge to handle but we have to handle. We don’t have any other alternatives.
Siddhant Singh
Thank you so much sir and good luck on your future endeavors.
R. V. Gumaste
Thank you.
operator
Thank you. The next question Is from the line of Aman from Augmenta Asset Managers. Please go ahead.
Aman Madrecha
Yeah, hi sir, thanks for the opportunity again. Could you quickly highlight at this level of big iron prices would we be making around 19% EBITDA margins on this or like more.
R. V. Gumaste
Not at all. Not at all. I mentioned that both together and steel are struggling because of the drop in the commodity prices as well as competitiveness in the market. As you know I think there was some interesting analysis our people brought. You know the manufacturing has improved substantially. It has gone to 8 and a half million tons. Availability has improved, prices have come down and also import up together increased. We are importing from China. Sorry, not from China, it’s from Russia and so many places. No dumping restrictions so far. But we have been representing to government taking time.
So there is a community pressure still. I don’t know. Prices have not come down because of the shortages in Balari Hospital and even in other places because of the low grade export available. So I don’t know. Prices have not come down. Only the coal prices have come down. We are trying to manage the margins but there is tremendous pressure on margin.
Aman Madrecha
For bigger and sir, for our mind what could be our landed cost of iron ore and house.
R. V. Gumaste
The present one minute is at 50, 50% premium but it’s a small and low grade iron ore. We. I think we should get advantage of about 1500 rupees. If other landed cost is six and half thousand we get this at 5000.
Aman Madrecha
Okay. Okay. Under so far. Thank you. Thank you so much.
R. V. Gumaste
Thank you.
operator
Thank you ladies and gentlemen. We will take that as the last question for today. I would now like to hand the conference over to Mr. Ravi Gumaste for closing comments.
R. V. Gumaste
Thank you very much. I would like to thank all the participants in this call. Phenomenal questions, very deep analysis and understanding all my investors participants understand all the four businesses so well. What the period questions have got refined so well. Always pleasure for me to interact with all of you. It’s a learning for me. Thank you very much and look forward to seeing you again after one more quarter. Thank you.
operator
Thank you on behalf of antique stockbroking. That concludes this conference. Thank you for joining us and you may now disconnect your lines.