Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
KP GREEN ENGINEERING LIMITED (NSE: KPGEL) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
Vinod Jain — Investor Relations
Monil Karwa — Whole Time Director
Salim Yaw — Chief Financial Officer
Harshad Jain — Unidentified Participant
Manaksha — Unidentified Participant
Analysts:
Harsh Patel — Analyst
Krishna Yoga — Analyst
Vaibhav Surya — Analyst
Pankaj — Analyst
Darshud Shah — Analyst
Suraj — Analyst
Shio — Analyst
Vinay — Analyst
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to the KP Green Engineering Limited Q4FY26 earnings conference call hosted by Share India Securities Limited as a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference call please signal for an operator by pressing STAR and then zero on your touch tone telephones. I now hand the conference over to Mr. Harsh Patel from Share India Securities Ltd.
Thank you. And over to you sir.
Harsh Patel — Analyst
Thank you and good morning everyone. I would like to congratulate management on a very good set of numbers of KP Green Engineering. On behalf of Securities, I welcome you all to X2FY26 earnings conference call of KP Green Engineering. We are pleased to have with us the management team represented by Mr. Moinul Khadwa the whole time Director Dr. Alok Das Group CEO Mr. Ashwag Khan Chief Accounts Officer Mr. Salim Yahoo Group CFO. We will have the opening remarks from the management and followed by question and answer session.
Thank you. And over to you Vinod.
Vinod Jain — Investor Relations
Okay, thank you. Good morning everyone. This side Vinod Jain from Investorization department. On behalf of management I would like to extend a very warm welcome to all the investors, analysts and other stakeholders for joining us today for earning call for quarter four and FY 2526 for KP Green Engineering. Joining on the call our whole time Director, Group CEO, Group CFO and Chief Account Officer. Please not let our full time director Mr. Monil Karva is joining from China so there might be some disturbance.
Please bear with us. FY25 26 has been a transformational year for the company marked by strong education, capacity expansion and significant financial growth. Our revenue grown by 78% to 1,250 crore, EBITDA by 117% to 249 crore and FED by 85% to 136 crore. Further order books remain strong at approximately 1831 crore as on 31st March 2026 providing healthy revenue visibility going forward. Company continues to extend its manufacturing ecosystem with commissioning of Asia’s largest hot dip colonizing plant at Matar.
During the year Company also received one of the prestigious certification from ROAD for Road careless barrier from Natrex. The company remains committed towards the sustainable manufacturing safety, excellence and technology led operation aligning itself with the India’s long term renewable and infrastructure growth story. With this I would like to hand over the call to whole time director Mr. Mohnel Karwa over to Mr. Moore.
Monil Karwa — Whole Time Director
Thank you Vinodji. Good morning to all our investors, analysts and stakeholders. It gives me immense pleasure to address you today at a time when cape Green Engineering Ltd. Is transforming rapidly into a diversified engineering powerhouse. Over the year we made several commitments to our investors regarding expansion, diversification, approval and execution capability. Today I am proud to say we are delivering choice to those commitments at ktzl, Every product vertical is not just a product, it is an independent industry with its own ecosystem, approval, execution cycle and market opportunity.
In this business, production alone is not enough. The real growth comes when your products are accepted and approved by state, utility, psu, national authority, private companies and global organization. I am pleased to share that we have achieved significant progress across most vertical and continue to aggressively expand our reach. Our transmission line tower vertical is now approved and active across 16 states in India while our Pole and lightning success division is rapidly expanding with approval from multiple state authority and municipal corporation.
In the solar structure vertical, we are proudly associated with almost all major renewable energy exhibiting organizations in India and are also approved by global tracker leaders Max Tracker and Game Changer Solar. In heavy engineering operations are progressing strongly and with the successful achievement of RDSO approval we are now strategically positioned for larger railway and infrastructure opportunities. In the pre engineering building segment, our in house design, engineering and project team have successfully executed two major industrial factories, one transformer manufacturing facility and one solar module manufacturing factory showcasing our end to end execution capability.
Another proud achievement has been becoming the first company in India to successfully complete all three crash test car bus trucks for both W Beam and Tribe Crash carrier in the very first attempt itself. One of the biggest milestones for the company has been operationalizing Asia’s largest galvanizing plant with capacity of 90,000 metric tons per annum and with a single dip capacity of 15 metric tons. This is major competitive advantage that will significantly improve our execution speed, quality and production efficiency.
The company is also strategically focused on strengthening it is business through backward integration in manufacturing capability and forward integration in execution business. This forward integration strategically strategy is already visible through our direct participant in railway crash barrier project and large scale BSNL Telecom project enabling us to move higher into the value chain. Further, our in house RND and engineering team is continuously working toward expansion into new vertical including onshore tubular tower container manufacturing, magnifars manufacturing, rolling mill, cable and conductor manufacturing and several other engineering products.
We remain committed to continuously expanding our product portfolio and strengthening our integrated manufacturing ecosystem. On the business front we have secured confirm order worth more than 1860 crore including a landmark 819 crore DSNL order marking our strategic re entry into the telecommunications sector. With long term annuity income visibly tq, O and M service today with expanding capacity, diversified vertical, strong approval and robust order visibility AP Green Engineering Limited is strongly positioned to sustain long term growth.
I would like to sincerely thank our respected CNB sir Dr. Parikh Patel sir along with all our investors, stakeholders, customers, bankers, suppliers, partners and every member of Team KPZL for their continuous trust and support. The foundation is strong, the exhibition is visible and the future opportunities are enormous. We remain fully committed toward creating sustainable growth and long term shareholder value. Thank you. Thank you very much.
Vinod Jain — Investor Relations
Yeah.
Krishna Yoga — Analyst
Should we open the floor?
Vinod Jain — Investor Relations
No, I think Mr. Salim Yaw, our group CFO he will address on the operational on the financial part. So over to Mr. Salim Yaw to give the overview on the financial performance of the company. Thank
Salim Yaw — Chief Financial Officer
You Mr. Jain. Good morning everybody. Good morning. Esteem investors, analysts, stakeholders, participants joining us today for the KPG Engineering earning call for the half year H2 and for the full year FY26 on behalf of the company I, Salim Yahoo Group CFO take immense pleasure to present the financial and operational highlights for H2 and FY26 along with the insight into our strategic direction and growth trajectory going forward. For the past five years the company has scaled its business and continued its growth momentum.
During this period our compounded annual growth has been remarkable with 100% CAGR in the revenue and 136% CAGR in net profit adding consistently to shareholders value. Speaking about the financial performance, the second half of FY26 and full current financial year has seen another landmark achievement for KP Green Engineering. The team has once again delivered record breaking all time high performance in financial parameters like revenue, profitability, EPS and other parameters. Our strong resilient business model supported by focused execution strategy continue to drive the consistent growth.
For FY26 full year our total income stood at rupees 1250 crores as compared to 702 crores in FY25 registering a growth of 78% year on year. It is first time that the company has crossed four digit mark in the income from operations earning before interest, tax and Depreciation increased to rupees 249 crore as compared to 115 crore in FY25 reflecting a strong growth of 117%. EBITDA margin also expanded from 16% last year to 20% during the current year Profit after tax stood at rupees 136 crore as compared to 73 crores in FY25 registering growth of 85% YoY.
For H2FY26, our consolidated total income stood at 714 crore marking an impressive 64% year on year growth compared to 436 crore in H2FY25. Our EBITDA grew at 108% reaching 147 crore. While our profit after tax surged 68% year on year to 77 crore backed by a strong operational efficiency and economies of scale that continue to enhance our margins. Speaking about the business overview on the operation front, our current manufacturing capacity has now reached 4,500metric ton per annum. The company’s robust order book stands at 1,800 plus for FY26.
During the year we have been empaneled with major PSUs ranging from power transmission, telecommunication, roads, highways, public infrastructure and railways. This shows our diversification in the various sectors that we serve. The company has a steady expansion in domestic market presence with increased activity in a number of states during the same period. So to conclude, I would like to express my heartfelt gratitude to our CMD Sir Dr. Farooq sir for his guidance and motivation as always and also to all our investors, shareholders, employees and partners for their continued trust and confidence in the company and I sure to maintain the growth trajectory in the coming years.
I now request the moderator to open the floor for question and answer.
Questions and Answers:
Operator
Thank you very much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may enter STAR and one on the touch tone telephones. If you wish to remove yourself from the question queue, you may enter Star and 2. Participants are requested to please use only handsets while asking a question. We will wait for a moment while the question queue assembles. The first question is from the line of Vaibhav Surya from cfm. Please go ahead.
Vaibhav Surya
Hi. Thanks for the opportunity. I wanted to understand what is the unexecuted order book as of now? Like There was another 500 crores order which you received recently. So like it is 1800 plus 500, right?
Salim Yaw
So this is total including this 500 orders also 1800 as well.
Vaibhav Surya
Okay, understood. And what is the execution time frame for the same?
Salim Yaw
I said this entire FY26 27 this year will be executing the entire order.
Vaibhav Surya
Got it. So can we expect 100 growth this year compared to last year?
Salim Yaw
See, I will not commit on anything. But I mean what we have commented last time we have given more than that. So this year also I hope that we’ll be able to fulfill your expectation this time also.
Vaibhav Surya
Understood. And I wanted to understand when is the second phase of CapEx? What is the planning for the second phase of CapEx? Because as of FY27 if we consider 50 to 60% growth as well it will be a huge revenue. Then FY28 I think almost maximum utilization will be there for the current capacity. So when is the next phase of CAPEX starting and what is the planning for that?
Salim Yaw
Frankly speaking we will be continuing the CAPEX during the year for which the fruits will be visible in the next year. And it takes a little bit dedication time. So the next phase operational activity will happen in FY27. Most of the CAPEX will be a backward integration to improve further into our margins. And you know availability of materials will help us for that. So if you see maybe rolling mills or something which will be our from till kind of a test that’s major CAPEX that will be going.
Vaibhav Surya
Okay. Okay. Thank you for answering my questions.
Salim Yaw
Yeah,
Operator
Thank you. The next question is from the line of Pankaj from Access Capital. Please go ahead.
Pankaj
Hi. Firstly thanks for the opportunity. Secondly lots of congratulations to the entire team for fantastic results. I think it’s great to see 100% CAGR for last 5 years on all 4 financial key parameters. So big, big congratulations for that. My quick questions are. One is on you mentioned 4 lakh MTPA capacity. So what is the capacity utilization we had in FY26 and what is the outlook for FY27? Second I think you answered that recently. But I’m just re clarifying. You mentioned that 1800 odd crore order book is likely to get completed all in FY27 is my understanding.
Right. And the last question is we achieved a better margin of around 20 odd percent in FY26. What is the guidance we have for FY27? Thank you.
Salim Yaw
Okay, I’ll answer your first question that the capacity utilization. So out of the 4 lakh 500 plus metric tons that the entire capacity this year the utilization was 1,24,500 metric tons. Fine. So what was your second question was about?
Pankaj
Within this what is the guidance we have for FY27?
Salim Yaw
FY27. I mean see we have the capability in hand. So I don’t think you know but growth trajectory we have already given that. We know 40 to 50% year on year growth in all the CP Group companies. We have given it. Our CMD sir has given that. We. So we are looking towards that. That is the minimum that will be at the maximum is no limit. I mean if you are able to do utilize the capacity we’ll be able to do next for your expectation which is way beyond that for 40 to 50%.
Pankaj
Okay, great. My second question was more of a confirmatory one which I believe you answered. That 1800 odd crore book is likely to get completed all in FY27. Is that right?
Salim Yaw
Yes. Yes. Okay.
Pankaj
And the last question was about the ebitda margins. In FY26 we achieved 20%. So what is the guidance for FY27?
Salim Yaw
The EBITDA margin is somewhere depend upon lot of other factors also. You know, your material prices though we try to hedge them. We try to have the clauses in our, you know, agreement. But this margin will try to maintain. This margin we’ll try to maintain in the range of 16 to 20%. We’ll write. We always see to it that whenever we take any, you know, orders or anything we have focus on the margins. We don’t want to compromise on the margin.
Pankaj
Okay, thank you. And any impact we have seen from this Middle east crisis. But what whatever we are going at currently.
Salim Yaw
Yes, the impact on the fuel is there because you know manufacturing requires lot of fuel which is coal, which is a gas. Yes. There’s a galvanizing plant and also there is an impact. But this year, you know we can say fortunately we are able to pull the thing next year also we are trying to see that, you know, if it is a major disruption in the geopolitical condition then we might. But also to highlight over here that we are powering our galvanizing plant along with lpg. We are powering with green hydrogen which is one of its kind.
So that will also help us because it gives more power. So we are trying to see that how we can maneuver between the geopolitical hurdles and achieve our target which we have committed.
Pankaj
Okay, thank you and congrats again.
Operator
Thank you. The next question is from the line of Sparsh Akar from Ekamnya Capital. Please go ahead.
Vaibhav Surya
Hi, good morning. Am I audible?
Operator
Yes, sir. Please go ahead.
Vaibhav Surya
Yes, congratulations on the great numbers. So I have a list of two, three questions you know that I would like to go ahead with. The first one is with respect to the inventory days, right. They’ve increased sharply from around 96 days to 195 days as per some data reports. So I wanted to understand that what exactly drove this increase and how should we think about normalized working capital and inventory levels going ahead.
Salim Yaw
If you see the total order book that I have is 1800 and we are getting furthermore orders. So when we have such a big order book, my inventory, you know, compared to that order book is not substantial. So we need to have these in hand because of the geopolitical conditions. We need to stock up, pile up the inventory so that we don’t have impact on the margins, we don’t have impact on the availability of the raw material. And that’s the reason we have stock up inventory this time. That’s why you have seen the inverted days going little high.
Vaibhav Surya
Understood. So it’s, it’s like a hedging strategy. You can say, you know, basically back up for. Yes, yeah, it’s
Salim Yaw
A hedging strategy towards the pricing and also toward the availability because the condition goes. Yeah,
Vaibhav Surya
Understood. Now the next question is with regards to cash and cash equivalents, I saw that they’ve declined significantly from 162cr to 19cr. Just wanted to understand that there was this cash actually deployed and how can we expect the operating cash flows to improve meaningfully? Because I also saw that the debt increased as well in the current year, you know, the past one. So just wanted to understand the deployment.
Salim Yaw
If you see, you know there is a classification which has happened on the balance sheet so there are other financial assets which have been added on the asset sides and also on that. So those are the cash and cash equivalent have been bifurcated into other financial assets. And long term I have been put into the financial asset. That’s why it has just gone from up to the fixed asset kind of a test as per the India calculation.
Vaibhav Surya
Okay. Okay, got it. So this is majorly the, you know, the book calculation. Yes, it’s
Salim Yaw
A classification
Vaibhav Surya
Classification. Okay. And. And the last question from my end is that any concrete updates on the company’s defense entry plans? I. I’d heard that you know the company had plans to enter into the defense sector basically manufacturing for the defense. So any updates on that?
Salim Yaw
We have been, I mean I cannot disclose all the things but we have been, you know, trying to get into this different sectors. We are looking at various standards, we are looking at various regions where you know, so as soon as something comes and willfully discloses on the BSE and se, but at present, I mean we are at a discussion stages at various, you know, in various tenders and various orders.
Vaibhav Surya
Understood, Understood. And you just mentioned something about green hydrogen powering the galvanization plant. Any, you know, I just wanted an idea. How much does it power right now and what’s the stage, you know, what’s the Scale of expansion for green hydrogen covering the plant.
Salim Yaw
As per the regulations we can blend 20 to 25% green hydrogen into the LPD. So we are following that rule and what happens is that it reduces the cost to a small extent only. But it is a uniqueness that you know that give us, you know that utilization of green hydrogen to some extent it helps me on the ESG compliances also that I’m utilizing green hydrogen. So and it also, you know gives me a, you know, a little bit, you know the upper hand compared to all the competitor because this is one of its kind.
Not no other company has utilized, you know, green hydrogen for powering the galvanizing plant. And we are doing and as you are aware that you know green hydrogen has more power compared to other gases and galvanizing plant requires a lot of heat for. So it will help me getting the work done faster. That is also a part.
Vaibhav Surya
Understood, Understood. Thank you so much for your time and answering the questions. Thank you.
Salim Yaw
Thank
Operator
You. Our next question is from the line of Darshud Shah from Nirvana Capital. Please go ahead.
Darshud Shah
Hi sir. Thanks for the opportunity. Sir, you said around 1800 crore is the order book that we have. Can you also share what kind of orders do we expect in FY20 and what’s our bidding pipeline looking like currently?
Salim Yaw
As I had told in my opening remark also no, we are into various segments. We are into telecommunication, we are into power and transmission. We are into highways, public infrastructure and railway. So you know the company, what we say the profile of the product profile has been diversified substantially. So we bid for all kind of tenders wherever it is available. You need to understand that you know our company has a uniqueness that we as Asia’s biggest galvanizing plant, we have biggest facility that we can execute all bigger heavy engineering kind of work.
So that’s the reason, you know, if you see we might get orders from all the bigger plant like we also have, you know, order from Chennai Metro that we have built a real, you know, Metro bridge also. So be assured that you know we’ll have some different. And it is a very plus point of the company that if any sector has any problem we can ship to other sectors. And one of the plus point of the company at present what we have in 8 1800, their biggest order is the BSNL. You know telecommunication towers which is all across India.
They’re supplying. So they might. It might come from road, it might come from highways, it might come on public infrastructure, it might come from renewable energy. It’s power and transmission Companies also
Darshud Shah
Any ballpark figures you can say, I mean how much we have bidded or what the bidding pipeline looking like.
Salim Yaw
In the bidding pipeline might go about 3000 crores also. Now it is only depending upon the success ratio that we might see or the pricing at which the bidding closes. Because we don’t want compromise on our margins also. So we are comfortable at present we have the entire full years also. And we can push the other orders also. Not an issue,
Darshud Shah
Sir. On the new products line. No. You mentioned probably venturing into rolling mill and cables and wires and other products. So if you can throw some more light on what new products we are looking at. And secondly on that front, what would be the product mix? Currently we are more of solar vertical heavy compared to other products. So what that ratio would look like.
Salim Yaw
Speaking about the new product, let me first be that rolling mill will be a kind of a backward integration. It will also be a little bit raw material for my other products. Okay. But we are moving to a lot of other products. If you have seen our quarterly presentations or the half yearly presentation. We are getting into container manufacturing. We are getting into aluminum extrusions, onshore tubular towers, fasteners then offshore tubular towers and cables and conductors. So we are getting into all these different products also at the same time.
And the component of the proportion you can see they depend upon. Sorry, let me complete the proportion of, you know the ratio of different product or mix that is depend upon the order book. So it might be, you know, this year if I am doing 800 crores of BSNL telecommunition tower. So my telecommunication component will be higher in this year, next year. I mean depending upon the way we get the order book. Because we have diversified into different products. So the mix is something which we can tell once we get the orders in hand.
Darshud Shah
And to the group company exposure would be what? How much going
Salim Yaw
This year out of 1800 crores, 20 to 25% is only group company restaurant is outside.
Darshud Shah
All right. Even going ahead this ratio would be relatively lower compared to what we had this year and earlier years.
Salim Yaw
The cautiously little bit lower only. But sometime what happens the group company requirement are urgent. So at that time we have to change this mix for the
Monil Karwa
Time period. But believe me, whenever we change this thing there is an enough order other outside orders also. But you know, accommodate the group company’s requirements. They
Salim Yaw
Have projects or CODs which are lined up for that purpose. We might keep on changing the mix.
Darshud Shah
Hello.
Salim Yaw
Hello. That’s. I think my last question is. Yeah,
Darshud Shah
Yeah, yeah, yeah. My last Question is on the royalty friends. Are we continuing to charge 2% royalty?
Salim Yaw
Yes. I mean see if you look at the SEBI has given guidance for 5% of royalty as per SEBI guideline. But we are only giving 2%. And believe me there is no you know intra company which is reduced from this royalty portions top line. So any intra company everything has reduced from this. And the top line is only taken which is pure. You know, top line which has been done by the company. That is taken into consideration and which is only 2% of the top line of all the company. Let me explain also that, that this royalty is not something which is a best.
If you see lot of. Lot of expenses. Branding expenses for the KP Group brand are directly done by Dr. Farooq Patel. Just like if you have seen Delhi Capital. And all these expenses are directly built to the promoter. So promoter does these expenses. Whatever payment he gets, he does expenses and every everything for the creating the brand, for creating value into the brand is being done directly by the promoter. And that’s the reason if you see it is justifiable that the royalty goes towards so that he can you know further build the brand.
Darshud Shah
I got your point from an investor point of view. No, that’s one of the major kind of drawback if you look at not. I mean you can do all the brandings internally through the companies though. I mean that can be obviously worked out. Rather than taking I mean royalties from all the companies. I mean on 2% that’s okay. But on absolute number that would be like Tomorrow we do 3000 crores.
Salim Yaw
Yeah. There are a lot of other companies, big listed companies which have taken loyalty. There are some are taking 5% are taking. So anything that is built over a period of time you need to have you know a lot of expenses that needs to be catered to which you know, if I close.
Darshud Shah
Sorry sir, but most of them are B2C companies what you’re talking about. Yeah,
Salim Yaw
But how can, how can you build either brand? Brand is in the name of Dr. Farid Patel. He is the owner of the brand. He has created the brand. I cannot do the expenses for that brand in the companies. No. How it will look on my book that I am building the brand which is owned by somebody. So it has to go through that route only.
Darshud Shah
Got it? No point. This was just one point I wanted to make.
Salim Yaw
It’s good you asked. It helps me to give clarification to all the stakeholders that any excellence that is done loyalty it is towards the building the brand further strong. You Know, strengthening the brand. And for that purpose this loyalty is one of the factor. And since it is owned by Dr. Farooq Patel it is, you know, the expenses has to go through his books only. It cannot go through the books of the company.
Darshud Shah
Sure, sir. Thank you so much for the clarification.
Operator
Thank you. The next question is from the line of Suraj from Punya Varta Capital Ventures. Please go ahead.
Suraj
Good morning. Congratulations for the excellent result. Thank you. I want to ask 2, 3 question. Now we are going in the cable and conductor sector. We are going.
Salim Yaw
Hello. Hello. I couldn’t understand your question because of operator. Can you mute others so that.
Suraj
Hello.
Salim Yaw
Yeah. Can you repeat the question? Yeah.
Suraj
Yeah. Now we are going into cable and conductor sector. Okay. What drives you to go into that sector? And what’s our revenue generation target from that sector? Okay. And we are going into cable and conductor just to cater the KP group only or we are expecting some revenue from other client also.
Salim Yaw
The first of all, any business that I start, it is not with the mindset that I want to cater to. See, KP Green Engineering is a standalone company. There is no cross holding. It is owned by the promoter. It is a separate company. In fact, it was the first company which Dr. Farooq sir started his, you know, entrepreneurship. So
Shio
Anything
Salim Yaw
That is, we start as a product. It is looked at the broader picture where the. How the big the industry is. We do a study that what are the requirement industry. And then we look at our capability that are we capable of executing this. And if it is related to any of the product that we do so for example cable conductors, it is related to renewable energy. It is related to power and transmission companies related to a lot of factors. So from that point of view, it is not that, you know, we keep in mind that group company needs it and we are manufacturing.
So that is clear. They can be cable and conductor. If you look at as I told you, these are, these are, you know, the same industry is required, is requiring like power and transmission company requires cable and conductor. So I want to get into similar kind of product which are there and it has the same. I mean if you look at cables, conductors somewhere, you know, it’s a manufacturing capability that what they require is what we have at present also. So to increase our product line helps us to diversify.
It helps us to, you know, mitigate the risk of that. If any industry goes down, how will I survive? So that all those factors are taken into consideration. A deep study is done. And only after that we get into new products.
Suraj
All right. So the. This, this cable and conductor expansion is not only for our backward integration but we are expecting some revenue out of it.
Salim Yaw
Yes, yes, yes, it will be. First idea is to get a revenue out of it. And also if it is required by the group, companies will supply this.
Suraj
Okay, okay, okay. And now second question is that now KPG and overall KP group are expanding aggressively. So what’s our revenue target for. For KPGL in 2030? You can say
Salim Yaw
2030. See, our honorable CMD. Sir has already given 40 to 50 growth year on year till 2030.
Monil Karwa
But
Salim Yaw
This year we have grown substantially. Okay, almost 100. Yeah, we have grown. I mean close to that. So year on year we will grow with a minimum target of 40 to 50% till 2030. If we are capable, we’ll do more also.
Suraj
All right. All right. And what’s the order book in pipeline for KPJL right now apart from this 18 current order book.
Salim Yaw
Current order book that we have no. And other things are in pipeline where the orders are not confirmed. But as I told you, there’s more than 2000, 3000 crore of pipeline where we are at discussion stages. Various discussions.
Suraj
Okay. Okay. Okay. Thank you. Thank you sir.
Salim Yaw
Thank you.
Operator
Thank you. The next question is from the line of Aniket Panda, an individual investor. Please go ahead.
Vaibhav Surya
Hello sir. Good morning. My question is regarding like KPDL, the top line which was reported the H1 was comparatively better year on year and then the H2. So was there a problem like utilization problem or the war impact because of which it happened and like what is the company’s plan to, you know, future plans to extend the utilization? Is there any plans for that?
Salim Yaw
See, there has been impact, as I told earlier in my answer that you know, there has been fuel impact which we have to, you know, cater for this. But if you look at, you know, the Overall growth for H2 is also substantial. It’s not that it is that but sometimes what happens is the order book that we are executing, some are at various stages and we are able to build only in the second quarter. Sometimes, you know, even the companies say that, you know, because of, you know, trying to maintain their cash flow for GSE payments and everything.
So they say that, you know, bill me in the second half or bill me in the first half or during the September or something. So that kind of. But from exhibition point of view, there was a little bit, you know, hurdle because of the pure or you can say the gas for the galvanizing and all those that we had faced A little bit.
Vaibhav Surya
Okay. And like the future plan to expand the capacity. Is there any plan? And like will the company diluting the equity or like taking the debt? Because the depth also has, you know, the commerce cost has increased very much this year, like 400% as per I have done the research.
Salim Yaw
Okay. See first of all, the future plan, as I already explained, we might get into a little bit backward integration like rolling mills or something which is still, I mean at a discussion stage internally. As far as the debt is concerned, if you see long term debt has not increased. It’s only short term because the top line has increased, working capital requirements have increased and to, you know, to stock up because of the geopolitical condition, we have taken limits so that we can stock up the stock.
That was a reason because of which that, you know, the cost to maintain that, you know, profitability and everything. We have stock up and we have taken working capital. But as far as expansion is concerned, I have, I feel, I mean if you look at long term debt to equity is way low compared to any other competitors in the
Vaibhav Surya
Plan. Sir, would you like to enlighten us
Salim Yaw
Planned about the expansion? As I told you know, we might get into rolling wheels or something which is a backward integration where it will be a raw metal for the existing products and everything. So we might get into that. But still it is at an agent stage.
Vaibhav Surya
Okay. Okay. Thank you so much, sir. Thank you.
Salim Yaw
Thank you.
Operator
Thank you. Participants with questions may please enter star and one on your touchstone telephones. Our next question is from the line of Shio from Tech Fund Advisors. Please go ahead.
Shio
Sir, can you hear me?
Operator
Yes, please go ahead.
Shio
Yeah. Hare Krishna to all of you. Sir. So my first question is that we heard that we are sponsoring the cricket team. Who is spending that money? Is Mr. Is the promoter. Mr. Pateli is spending that money.
Salim Yaw
Yeah. See, we are not sponsoring the team. We are. We have taken an associate sponsorship by which, you know, our name will be on their helmets and everything that is clearly mentioned. And this is directly because it is a brand which is getting sponsored that KP Group is doing at different. It’s not any one company. So the brand sponsorship and everything is directly, you know, expensed out by the promoter himself because he is the owner of the brand. Is the owner of the KB Group brand.
Shio
Sure. So Mr. Patel is spending that money. Right. Okay, sir, other question is I know that we are a growing company, but any plan to make this company as a debt free company and by when
Salim Yaw
You need to understand that making it a debt free we are at an expansion, we are at a growing phase. Okay. Now as we know that you know, debt is, you know, very easily available and it is compared to less costlier compared to equity. So for becoming debt free I need to dilute. And also at present we are not because we are growing substantially. We have good credibility in the market. We get that easily. So I would not at present do anything that is, you know, if there are plans of getting into that we’ll let you know as and when we decide on that present.
There is no such plan of becoming a debt free. We are very going very fast and we need capital so that we can expand ourselves take more market share in this kind of products that we are.
Shio
Okay sir, good luck sir. Thank you very much.
Salim Yaw
Thank you.
Operator
Thank you. The next question is from the line of Krishna Yoga from family fund. Please go ahead.
Salim Yaw
Yes, yes, please go ahead.
Krishna Yoga
Yeah. First of all congrats for the great set of numbers clarification on the wedding pipeline. You said 3,000 is a pipeline. So what is our success winning ratio in that
Salim Yaw
You are seeing the pipeline that tenders As I told, you know, success ratio depends upon a lot of factors. But at present we have around 60 to 70% of success ratio in our tender business.
Krishna Yoga
Okay, can you give me a look at percentage terms in which sector we have more? Is it a PV or is it more solar?
Salim Yaw
Different sectors have different, you know, requirements. Like at present we are more inclined towards power and transmission. Okay, then if you see second in line will be the Telecommunication this year and then comes coming roads and highways and everything.
Krishna Yoga
Okay, just to understand because of the margin structure. So sir, Also in the X2 you have given a very good EBITDA margin. So are we going? I know you mentioned that 16 to 20. So it’s also depend upon the product mix. So the reason for asking because some products are having higher margin and some are having a lower margin, right? So in this current order book because we are have more for the bsml. So can we expect a good amount of margin in the FY27 since we have a good margin lucrative order book.
Salim Yaw
See as I told you know the margin depends upon the product piece. And as you are right that you know that majority of the order with this year getting exhibited is the BSNL which is the biggest order.
Krishna Yoga
We
Salim Yaw
Try to maintain our margin. We try to maintain because if you see our margin was one of the healthiest margin in the industry. And because of various customization, because of various economies of scale that we achieve because of various product diversification that we have done. So all this factor helped me to maintain the margin as far as as I told you the range will try to maintain the range of 16 to 20% what we have been done historically also.
Krishna Yoga
Okay. Okay. Got it sir. Yeah. Thank you so much.
Operator
Thank you. The next question is from the line of Sriram Shah from KPK Engineering. Please go ahead. Mr. Shah, your line is unmuted. Please ask your question. As there is no response from this line. We’ll move on to the next question. It’s a follow up from the line of Pankaj from Access Capital. Please go ahead.
Pankaj
Yeah, hi. I have just two follow up questions. One was on the deck which largely you have answered. What I understood is that you have taken working capital limits and I assume these are all from banks and not from venture debt kind of setups. So that is question number one.
Monil Karwa
Yes,
Salim Yaw
I’ll answer one by one. So we don’t take any high cost debt. My average cost of borrowing will be somewhere into 8.5 to 9%. So I don’t take any high cost debt. I don’t take from any venture capitalists. We have a very good credibility. We have a rating of A category. So all the banks are very keen to fund us. To fund our, you know, working capital. Yeah. Second. Perfect.
Pankaj
Perfect. Yeah. Thank you. Second, you just clarified to somebody that cash equivalents, you have done some kind of reclassification. Can you please explain? Explain that. And you mentioned that as per India S, we had, you had to do that. So can you just put a little more color on that?
Salim Yaw
So cash equivalent. You know earlier we used to classify all the MDs and everything into cash and cash flow. That is the current assets. Okay. Now what the classification has been done is that any FDs which are more than one year it will not be part of the current asset. It goes into other financial assets in the fixed asset part. So that’s why the bifurcation that you are seeing. I hope that understands. Right. Because it’s a long term fd so it has to be bifurcated into other sectors.
Pankaj
Okay. If I have to look into my equivalent of FY25 number. So what would that number would be for FY26?
Salim Yaw
If you look at other financial assets on in my balance sheet which is around 59. Right. So the other financial asset which is at around 59 crores which, which was earlier also the same application has been done in FY25. I see it is around 52 crore. So same amount of FDs were there earlier. Also the we have reassessed the classification in the previous year in this financials also.
Pankaj
Okay, so effectively the numbers which are coming as part of the outcome from cash flow is the real number. Right? So. So it’s not a classification issue. Net net. We actually generated 9 odd crores in this financial year. Right.
Salim Yaw
Cash flow. Just a second cash flow. I think we have a little bit more than that. Cash flow from operations.
Pankaj
155 from operations is one. Yeah,
Salim Yaw
It did not have impact in the cash flows because anyway it is a part of an operation which is. See balance sheet has a classification of more than one year and everything. Cash flow doesn’t have that.
Pankaj
Okay, got it. Thank you. Thanks for. Thanks for clarifying that.
Salim Yaw
Yeah,
Operator
Thank you. The next question is from the line of Vinay from Niche Capital Management. Please go ahead.
Vinay
Yeah, thanks for the opportunity. Can you hear me, sir?
Salim Yaw
Yes.
Vinay
Okay. Yeah, yeah, thank you. So this other. There’s other current liabilities in the balance sheet which is big part of a balance sheet as source of funding. Can you please comment on the broad composition of the same. And also like your working capital days like can you please clarify from the normalized working capitals in terms of inventory days. Delta doesn’t create is going. Right. Thank you.
Salim Yaw
Okay, so other current liabilities if you see it’s mostly you know, discounting facilities on trades and everything which is included. It’s a kind of a working capital extended up of working capital that we take and you know whereby you know my creditors and everything they go and get their bills discounted for a period and we pay that. So there’s a trades platform like ML Exchange and everything are part of this. The second question was on the
Vinay
Working capital
Salim Yaw
Working capital site or the day there is improvement in the debtors working capital days. It’s only the inventory. As I told you, the inventory has been. We have shocked up interview inventory because of the geopolitical conditions. So we have utilized all our, you know, working capital limits so that we can stock up inventory. So that my operation should not hamper. So that is. And my profitability should not hamper. So that’s the reason if you see the inventory days have increased substantially.
The others have improved compared to previous. Cycle is around 150 days which is, you know, as per the industry, you know you have two cycles, two to three, 2.5 cycles in such.
Vinay
Okay, thank you.
Operator
Thank you. The next question is from the line of Webhook Surya from cfm. Please go ahead.
Vaibhav Surya
Thanks for the opportunity again. So I wanted to understand certain things like what is that one thing that is unique in KPGL that is not in other manufacturing company. Like what is the competitive advantage we have over others?
Salim Yaw
So the USB of my company, it is engineering as I told you. You know it’s the product diversification is the different segment that we cater to. I have different product, different segments. This gives me an upper hand compared to. So if you look at other companies, either they are into telecommunication towers or they are into evacuation towers. They are your player of, you know, you can say that they, they sell the, you know kind of, they go on tunny and everything. We don’t go. We do customization, we do product diversification.
And that is the plus point and that is a plus one because of which we have this strong margin that we are you know we have in this financial year.
Vaibhav Surya
Okay, and so is there any plans to like venture into more of niche power equipment segment? Like there’s been a huge demand in the because of data centers and all of these power equipment. So what are the plans going forward for that?
Salim Yaw
As I told you in the future segments we are also into containers. So it will battery containers which are required for the data center. So we have kept our eye on these kind of segments which are also coming up and we’ll surely look that in any kind of product requirement over there. We’ll get into that and we’ll supply those kind of products also. So we have that in place.
Vaibhav Surya
Got it. And one more thing from my end the 3000 crores pipeline. So when is it expected to close? Like when can we expect orders from that?
Salim Yaw
Yeah, these are tenders but where we are putting all across different segments and sectors. So this depends upon by when you know the virus government institution where the individual private companies who will close the tenders but year on year if you see that, you know whenever we come for this year we have 1800 will throughout the year we’ll get an order book which will be part for this year year and there will be part again for the next year. So we build up our order in hand through these pipelines.
So most of them will come this year which will be executed partly this year and partly next.
Vaibhav Surya
Got it. And so one thing is there that the debt has substantially increased compared to revenue. Like the revenue has increased around 80% the debt has increased forex the interest first. So I assume that is this is due to the inventory build up. I understand that as well. But can we
Salim Yaw
Expect this
Vaibhav Surya
To like go down going forward or like is this the new normal compared to the revenue growth?
Salim Yaw
You know because of the geopolitical condition, inventory has been piled up. Once we have this condition, smoothen automatically, you know, we will not start piling up because you know, for me biggest concern is the uncertainty. It is not because we have credibility. We get debt in the market in absolute term it will be very less compared to the top line growth. But I can understand in percentage term it is bigger. But that is required because this is the need of the R that I need to stock up the inventory because I don’t want any disruption in my execution or the, you know, manufacturing facility.
Vaibhav Surya
Understood. So we can expect it to go below compared to revenue like going
Salim Yaw
Forward proportionately the, you know, your stock will automatically as the conditions smoothen, the geopolitical issues get resolved. We’ll surely, you know, can keep lower stock compared to what percentage at present we are at.
Vaibhav Surya
And the other income has Also like in H2, the other income has reduced from 4 crores to 0. So like what can we expect in the next financial year for this? Like
Salim Yaw
See last year if you see we had an IPO fund and because of which we had every interest of those IPO that was utilized for the capex purpose. And that’s why you see the FD interest has reduced what it was earlier.
Vaibhav Surya
Okay, thanks for answering my questions. All the best for the future.
Operator
Thank you. The next question is from the line of Darshan Mehta, an individual investor. Please go ahead.
Vaibhav Surya
Ali
Salim Yaw
Mainboard Kaju conditions Once agar conditions fulfill Hojati company condition complete Hogai. Then I think that criteria check.
Vaibhav Surya
Okay, thank you.
Operator
Thank you. The next question is from the line of Harshad Jain, individual investor. Please go ahead.
Harshad Jain
Yeah. Hi. First of all, congratulations for the good set of numbers. I just want to know that since you mentioned that you have lot of inventory piled up. So how are the things looking in the first half of the current financial year like for two months, April and May. Is this inventory moving out or is it still stuck?
Salim Yaw
Inventory is not something which I can assure you it is not a inventory which is kind of off the shelf. It might get stale or something. So it is a steel and everything. We might utilize it this quarter. Next order. As I told you, my major concern is the fuel. Fuel that is required to power the galvanizing plant that’s required for the machinery and everything that is more important because of the geopolitical decision. As we are aware that fuel is a big concern. So from that point of view we will try to maintain good execution.
But also I mean it depends upon the conditions around the factors which Are you know impacting the manufacturing facility that are to be seen at the same time industry which we are going to supply all the customers. They might also say that please hold on to my order for some time or something. Because there might be some discussion at his end also. So all these factors have to take into consideration.
Harshad Jain
Okay. Thank you.
Operator
Thank you. The next question is from the line of Manaksha. Please go ahead.
Manaksha
Hello. Yeah, hi. Actually our order book is of rupees eighteen hundred crores as shown in PPT uploaded by you as on 31st March 2026. And the order we received as on 1st May 2023 is of five hundred crores. So as per me the total order book is of 2300 crores as on today. And you just answered one guy that our order book of 1800 crores includes these 500 crores. Then can you please clarify on this?
Salim Yaw
There is a. There are various stages of order. Like you know when we win the order we might calculate that order. But after that there is an LOA which we receive after some time. Letter of award and everything. So sometimes you win the tender, sometimes you get the loa later on. So till we get don’t get the loa we don’t mention the BAC that we have received the order. But in our PPD we take that these are the orders which you have already won. It’s only the process that has to be completed. From that point of view there will be a little bit, you know what we say.
Differences between what you are thinking and what it is being shown in the PPTs.
Monil Karwa
Okay. Okay. Okay. Yeah. Good. Good. Thank you.
Operator
Thank you. The next question is from the line of Sparsh Akar from economy capital. Please go ahead.
Vaibhav Surya
Yes. So my follow up question is that how much of the 1800 crore order book is internal versus external? Like internal as in the KP group orders.
Salim Yaw
Yeah. So 22 to 23% is internal and rest all is external. Majority is the bsnl. You know, transition what we say Telecommunication towers.
Vaibhav Surya
Understood. Understood and right. Right now our capacity utilization is around what 30% or something. As you mentioned, you know the capacity.
Salim Yaw
Yes, it’s 30. 30 to 34% is my present capacity.
Vaibhav Surya
Understood. So I mean given the large order book we have can I get an idea, approximate idea of what the capacity utilization is going to look like in FY27.
Salim Yaw
If I look at, you know, at this order book. Okay. We might go up to 40, 55, 60% this year with the growth.
Vaibhav Surya
Okay, understood. Just a follow up question. A curious Question. I mean in such businesses, why do we have such large, you know, let’s say CapEx when our utilization is low already. I mean we can do the capex and increase the capacity utilization a little later on as well. You know, when we see the demand being forecasted in such a situation,
Salim Yaw
You have to understand that. Yeah, I understand. That’s the question, right? Why we did such a big capex. Okay,
Vaibhav Surya
Yes. Beforehand, I mean definitely we are going to grow later, but. Yeah, I
Salim Yaw
Understand.
Vaibhav Surya
Yeah,
Salim Yaw
Yeah. If you, if you, if you have, if you go a little back. We did CAPEX from What? From our IPO.
Vaibhav Surya
It was
Salim Yaw
The biggest IPO in the history of entire BSE SME till date it is 190 crores. We did IPO from the point of view that we have to go, I cannot come after two years that you know, again I will come up with some funds or something, I will come up with an IP or something. So when we do equity infusion or we do capex through equity fundraising at that time you have to take a long term vision because even the IPO investors will not see that why you are taking for one or two years after that what you do.
So you have to keep in mind that when we study that horizon of four to five years after that, you know, again we’ll look at it. But at the same time, small, small capex also if it is required some diversification, we do that. But whenever an equity infusion is done and it is done with a long term vision, it’s not with a short term result. So that is
Vaibhav Surya
Understood. Understood. Thank you so much.
Operator
Thank you. The next question is from the line of webhav Surya from cfm. Please go ahead.
Vaibhav Surya
Hi, thanks for the opportunity again. So you were talking about something related to data center. So like, can you please elaborate? Like what is the vision for KP Green in terms of data centers and all
Salim Yaw
The data center is, you know, I can say it’s the talk of the town. Data center requires power and everything. Green power is preferential by data centers. And for that our group companies, KPI Green Energy limited is also in discussion. KP Energy is also in discussion. Now whatever the material requirement for data centers, we are getting into that also for KP Green engineering. Just like you know, containers for battery cells and everything. So all those, you know, if we get into any particular segment, we want to see that we give end to end solution for the segment.
Anything that is required. So just like if I give an example, renewable energy, when we got into renewable energy we provide MMS structures, we provide, you know, the evacuation towers, we provide, we build substations. So all this end to end solution is provided. So that’s why we, whenever we look at a segment, we look at that I can give the maximum product for the segment and then only I can add value and I can demand a better margin.
Vaibhav Surya
Okay, okay, fair enough. And so can you please start supporting quarterly numbers from this financial year. It will be very helpful for us to understand about the business
Salim Yaw
See as per sebiga headlines or the BSC assembly lens we will have to do half yearly. But I mean we have you know, thought but I think shortly we’ll go into main board so I think we’ll start getting that also not an issue. But happily something which is compulsory, we do that.
Vaibhav Surya
Okay, correct. And so one more thing is there you mentioned that the utilization might range from 45 to 60% this year. So next I assume that that would be around 60 to 80%. So we will require next leg of big capex like previously done from a forex capacity like from 1 lakh Mexican to 4 lakh resistance.
Salim Yaw
Yeah, I see utilization this time was around 30 odd. Next year for this financial year we will have approximately 50 to 60%. Then next one more is post that, you know, and in the meantime we are adding small, small capacities. Wherever we see there’s some diversification will also add to the capacity. So nevertheless, I mean as we go forward we will take into consideration what is the additional business that might come and accordingly we’ll, you know, at this us our total capacity that we can.
Vaibhav Surya
Okay, okay. Thanks for answering the questions.
Operator
Thank you. The next question is from the line of Pratik Chaudhary sir from Samarthia Capital. Please go ahead.
Salim Yaw
Sir, I sorry for joining the call late but I just have one question. We’ve already clocked 20% EBITDA margins for FY26. Do you think this is, this will be a sustainable number going ahead as well
Vaibhav Surya
Despite all the cost pressure increases that we might be seeing due to war and other reasons.
Monil Karwa
Yeah, yeah,
Salim Yaw
So I said, I already said in my answer also that the margin is in the range of 16 to 20%. We’ll try to maintain that margin but looking at the situations and there might be other shocks which we have to, you know, bear going forward. You know, fuel cost, you know, availability cost and everything. So we will try to maintain but we cannot assure that, you know, whether the 20 will be maintained. But the range is something that we try to maintain and this is because the diversification of the products that we do, different segment that we cater to
Monil Karwa
And, and usually raw material costs are a complete pass through for you. Right? You completely pass them on.
Salim Yaw
See in a bigger contracts and everything clear cut raw material condition is that if there is any escalation more than 5% it is passed on to the customer. In other contracts where we don’t have, we already have, you know the filed up the inventories or we have taken inventory on our book so that we don’t have hit on the margin so we take all kind of steps or we hedge from all different ways so that you know we don’t get hit on the margin.
Vaibhav Surya
All right. And just a suggestion just as you know the previous participant said that
Salim Yaw
If, if from this year, this financial year, year itself, if it can go to quarterly financial results that we did really helpful because six months is a long time
Monil Karwa
And that will be really nice for us to you know prepare investors also for our listing for main board listing. So. So if that can happen by FY27 that will be really helpful sir.
Salim Yaw
Yeah. See we’ll look at the various compliance and everything whether we can do or not and we’ll surely take your suggestion and we’ll discuss this in the boardhouse.
Vaibhav Surya
Thank you sir.
Operator
Thank you ladies and gentlemen. That was the last question. I now hand the conference over to the management for closing comments.
Vinod Jain
I would like to thank to all the participants for their participation in this call. We hope that our replay was to your satisfaction and I would look forward to have you continued support and trust in the company and company’s operation. Thank you very much.
Operator
Thank you very much sir. On behalf of Share India securities limited that concludes this conference call. Thank you for joining and you may now disconnect your lines. Thank you.