KRN Heat Exchanger and Refrigeration Ltd (NSE: KRN) Q1 2026 Earnings Call dated Aug. 01, 2025
Corporate Participants:
Santosh Kumar Yadav — Chairman and Managing Director
Analysts:
Yogesh Patil — Analyst
Jai Chauhan — Analyst
Manish Ostwal — Analyst
Hiral Parekh — Analyst
Manik Narang — Analyst
Shivkumar Prajapati — Analyst
Sanjay Nandi — Analyst
Mohit — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the KRN Heat Exchanger and Refrigeration Q1FY26 earnings conference call hosted by Daulat Capital Markets Pvt. Ltd. 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 the conference call, please signal an operator by pressing then zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Yogesh Patil. Thank you. And over to you sir.
Yogesh Patil — Analyst
Thanks, Anushka. Good afternoon ladies and gentlemen. On behalf of Dholak Capital I have pleasure in inviting you all for Q1FY26 earnings conference call with the management of KRN Heat Exchanger and Refrigeration Limited. The management is represented by Mrs. Santosh Kumar Yadav, Chairman and Managing Director. Mr. Sonu Gupta, Chief Financial Officer and Mr. Jitendra Sharma, Company Secretary. Now without taking much time I hand over this call to Mr. Santosh Kumariado for the opening remark. And then we will have a question and answer. Over to you, Santosh sir.
Santosh Kumar Yadav — Chairman and Managing Director
Thank you, Yogesh. Good. Good evening everyone. I Jitenzu Kumar Sharma, Company Secretary of the Company. It’s my pleasure to welcome you all. KRN Heat Exchanger Q1FY26 Evening Call I would like to thank each one of you for joining us today and for your continued trust in our journey. Joining me on the call Today we have Mr. Santosh Kumariada, our Managing Director and Mr. Shonu Gupta, CFO of the company. We are pleased to report a Q1FY26 result. Our consolidated total income for the quarter stood at 118.86 crore driven by healthy domestic and export demand. We achieved an EBITDA of 17.59 crore representing a margin of 15.26% and delivered a net profit of 12.42 crore with a solid net profit margin of 10.545%. Our EPS for quarter stood at rupees two reflecting continued earnings visibility and operational resilience. From a standalone perspective our performance was equally encouraging. Total income stood at 117.14 crore up 18.65%. Year on year EBITDA came in at 19.79 crore marking at 16.02 growth with a healthy EBITDA margin of 17.30%. Net profit grew sharply by 34.85% to 15.69 crore with a net profit margin improving by 161 basis point to 13.39%. The EPS for the quarter stood at rupees 2.52. Our growth was supported by robust year on year segment revenue growth of 20.36% led by both domestic and international market. Domestic revenue contributed rupees 96.39 crore growing 17.27% y on y while our awardees revenue surged 39.04% y on y 2 rupees 18.89 crore. With strong traction from the UAE and Italy, our expanding global footprint including presence in Germany, Canada and France continues to serve as a key driver of growth. One of the major highlight of our quarter was successful commencement of commercial operation at our Nimrana Manufacturing facility under our Wholly owned subsidiary KRN H VAC Product Private Limited. This state ofad the art facility launched on May 31st, 2025 enhances our capacity to serve both domestic and global markets with high quality heat exchangers and H Vac products. In another significant development. Our subsidiary secured approval under the PLI scheme for white goods with sanctioned incentive of rupees 141.72 crore by IFCI Limited. This incentive will aid us in accelerating expense in depending integration and enhancing localization, all of which are integral to our strategy of building a cost efficient and self reliant manufacturing ecosystem. At arn, we remain deeply aligned with the structural tailwinds supporting the HVAR&R industry. From rising infrastructure development and sustainability focus to increasing adoption of energy efficient system. Our commitment to product innovation, operational excellence and strong client partnerships continues to fuel our momentum. Looking ahead, we are focused on expanding our market share, strengthening our global presence and executing our strategic roadmap with discipline and agility. With a growing portfolio, a strong order book and a highly capable team, we are confident of sustaining this positivity trajectory in the upcoming quarters. Thank you once again for your time and continued support. We now look forward to addressing your questions.
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 their touchstone 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. We take the first question from the line of Jai Chauhan from three Netra asset managers. Please proceed.
Jai Chauhan
Good afternoon and thank you for the opportunity. Am I audible? Yes. So sir, my question was like with the new Thermotech Research Lab, what is your approach to building intellectual property? Like do you have any patents filed or planned? Or how do you see IP contributing to your competitive mode?
Santosh Kumar Yadav
So actually this new lab we like make separately other than as a manufacturer lab. So it will be as a separate identity. Like Thermotech Research Laboratory however is the only one subsidiary. So we have already MoU with the AHRI. It will be like first lab in India who will be like approved by AHRI. So we already did the MoU with AHRI and even lab equipment already dispatched from China. So hopefully next week we are going to receive so another two months we have to like install. Installed our equipment and we able to start like from September and or early October and then two or three months we will have to meet like for all certification nationally and then European and American and UAE side. So by end of this year it will be completely ready for international, locally and as well as for us.
Jai Chauhan
Got it? Got it. So basically like my question was around like how do you see like what kind of thing you can. What kind of IP you can generate using this research lab. Like can this help you to develop competitive mode going forward? Like can you find patents for the same or something like that? Because I am just trying to gauge the industry at the moment.
Santosh Kumar Yadav
So actually IP we cannot get from lab but we can get on our products. So it will be work like that key. If I want to like some specific particular tube with different geometry, like internal geometry, maybe groove height or some finer type. So we can say like better efficiency tube. So first we have to contact with manufacturer of the tube. Then we can maybe have some sample. We can try in our sample and we can get approval from lab. And then we can file the IP address through this manufacturer on the cube side and in product side also if you have some like design specific which is not in market available, then we can first test.
And if we can get more efficiency compared to existing product, then also we can file. So it is slowly we can work on the IP site. But first we will start lab, we can get the certification all and then we can have like our product qualification, our product customer qualification. And then we will work on IP as well. It will be the parallel activity.
Jai Chauhan
Right? Right. Understood. Understood. And sir, currently if I’m not wrong, you operate 100 B2B with OEMs, right? Yes. So sir, like have you evaluated the aftermarket opportunity replacement part Opportunity? I think that typically offers higher margin, right?
Santosh Kumar Yadav
No, I think incorrect because in our product aftermarket is a very very thin margin. So that’s why we are not doing as of now. So when we started the business, we started with aftermarket only. So once you have that new product, so you want to set the machines or your QEMA system, your manpower training. And then of course we did aftermarket earlier when we started. But when we like moved in, move in OEM side. So then we feel the aftermarket price is compared to I’m very thin. So that’s why we are not doing as of now. But however in new products like for this roll bond and wire and tube condenser, we have some new products. So for these new product as of now we started with aftermarket only. So now we are settled down the things our market. Scene running and manpower training QMS system. So of course we are doing aftermarket with new product but not on our existing product.
Jai Chauhan
Right. That answers my question sir. Thank you. Thank you.
Operator
Thank you. The next question is from the land of Manish Oswal from Nirmal Bank Securities Private Limited. Please proceed.
Manish Ostwal
Yes sir. Thank you for the opportunity and decent set of numbers given the Metro conditions. So question on the first on the new facility which we have commenced in May 2025. So can you talk about in terms of how we are ramping up the facility, how we are adding the customers and especially export market side, domestic side, how many clients we added for the new facility so far? How many clients visited the facility? Can you talk about qualitatively that will be grateful for understanding the ramp up part of the new facility?
Santosh Kumar Yadav
Yes, so as I said before also in earlier calls, so we already started like in May. However we delayed like almost more than two months. But finally we started in my end or you can say so we did like only last one month from now you can say two months. So like machine already installed, all utility is ready and we started particle like back production or sample testing already in all components. But now we are working on QMS system, customer visit, quality approvals and of course training of manpower.
So as of now average like each week we are having sometime one or sometime two customer we who are visiting to our new facility as well as our existing or some new customer as well. So hopefully we assuming this quarter we will have all customer approvals, quality system, manpower training and all things on set. And from third quarter we will of course will ramp up in production and then third and fourth quarter we will have good numbers from new facility. But this running quarter of course we will have less number. But of course we have to do like other work as well like that QMS and then the training, manpower, machine settle down things and all things.
Manish Ostwal
Sure. The second thing sir, if I look at our quarterly number, so we have our growth in revenues, 20% of gross profit increase very similar rate. But EBITDA is down and I understand that expenditure with respect to new plant we are incurring and because of that EBITDA performance is weak. Can you call out specific cost with respect to new plant in the current quarter number so that we can understand the comparison from a y o y basis?
Santosh Kumar Yadav
Yes, actually standalone I think number is in. Good. But however console have some issues. So there is some depreciation we booked for one month. So it’s around the 1.25 crore. And then we like have some loan from Care exchanger. So we charge some interest as well. Because we have agreement like that once production will start then interest will charge by care and IT exchanger. And then of course employee cost also around 1.5 crore. And then we did some sample testing or machine trial. So there is the RM also consumed but of course we not sell the product. So that’s why. So RM consumption and then consumables like gas and electricity and then employee cost and then interest cost and then depreciation which include all I think around almost 4 crore.
Manish Ostwal
And sir, last question on the export side. So currently we have exports here of 16.4% of our consolidated sale. 18.89 crores for the quarter. And it has been steadily improving for last three, four years. And now with the new facility, if you just see when you talk about six to seven times of revenue, what will be the share of the export and in export business what is the margin differential at a gross profit level compared to the domestic margin.
Santosh Kumar Yadav
So of course I said before also like new facility we plan such a way we want to improve our export only because as of now we have congested facility or you can say optimized facility with very large space. So that’s why we build almost 600,000 square feet covered area. And it’s the need for big numbers especially for export because the need facility must be good. So we targeting in next three years we’re able to achieve at least 50% of export from our own existing product.
Of course from not new. And the margins are slightly I think 3 to 4%. We can get better compared to domestic if like in average but it’s not fixed. Actually depend on product, company profile, business volume and of course application.
Manish Ostwal
Okay sir, thank you. Thank you very much.
Operator
Thank you. The next question is from the line of Hiral Parekh from Dollar Capital. Please proceed.
Hiral Parekh
Hello sir. Thank you for taking my question. So I just wanted to understand, can you help us understand what is the current status of approvals under the RIP scheme And when do you expect the margin or P and L benefit to start reflecting. And secondly sir, I just want to understand what would you call out to be the key triggers for next three to six months?
Santosh Kumar Yadav
Okay, so for reefs actually we need some certification like especially for pollution for cto. So we’re expecting in next week we are going to. Going to get this CTO and then we can apply for rips. Other documents are ready. So after apply I think it will take around six to seven weeks from government side. So hopefully we will get within this quarter from DIPS approval. And then we can get like incentive. We can start from third of quarter of this year. And what was the second question figures like? Can you repeat? Actually I forgot.
Hiral Parekh
Yes, sure. I wanted to understand what would be the key triggers for revenue in the next three to six months in terms of order inflows, utilization.
Santosh Kumar Yadav
Okay. So as I said before like now we are working on customer visit QMS approval from customer existing as well as from new. And like settle down the machines and then giving the training of a new manpower with existing manpower. So these things will be settled down I think in next two months from now. And then production ramp up will start from third of quarter. And then third and fourth we will have good numbers compared to existing. So what we said before, I think we can achieve by end of this year.
Hiral Parekh
Thank you sir.
Operator
Thank you. The next question is from the line of Manik Narayan from SSPL Securities. Please proceed.
Manik Narang
Thanks for taking up my question. I have three questions actually. The first one is as you have mentioned earlier that the plant will operate at 25% capacity in the first year. Okay. So can you guide us in which quarter we can expect it to reach at 25%.
Santosh Kumar Yadav
Well just said I think same question. However I can maybe reply again. Is start from third of this quarter like third and fourth of this year. So Q3 you can get.
Manik Narang
Okay. So from Q3 and Q4 we can expect it it will operate at 25%, right?
Santosh Kumar Yadav
Yes. Yes.
Manik Narang
Okay. Okay, fine sir. And one more question is that like in this quarter how much of the revenue came from the new plant? That is April. From April to June. As I can see there is not much of difference in consolidated and standalone features in terms of revenue. And plant has started to operate from May 31st, 2025. So how much of the revenue came from the new plant during that period? April to June
Santosh Kumar Yadav
Revenue is not much. But however we did some production. But actually we don’t have approvals of new plant from customers. So we cannot dispatch from new facility. So some part we made in Hveki. But how will be transferred in heat. And then we can build towards months so less number. But because once we start then we have to first set the machine all we have to train the manpower. We have to complete our. System by OEMs so not much billing. But however sampling and trial run that is going on is still some small lot. Also we started so small dispatch. You can see we started
Manik Narang
As you said earlier like during this meeting itself that customers are visiting regularly. Like did you secure any order that. So you can be confident that sales might be coming from. From the third quarter or fourth quarter.
Santosh Kumar Yadav
No customer like regularly. So they are. They will not check the products actually but once we want to start from new facilities so they have to approve new facility in their system. So they have to visit, they have to send their QMS audit or they are maybe quality person they will visit and they do the audit and then we can start. But we can make as of now. But we cannot build from new facility to them till the their approval. So because we started one month or two months back from now. So one month you can think we have to run first sample or then pilot load and then mass production. So now some more part. We already started in mass production but product will not approve by customer for sure. But facility will be approved by customer.
Manik Narang
Okay, that’s it from my side. Thank you.
Operator
Thank you. The next question is from the line of Shiv Kumar Prajapati from Ambit Investment Advisors. Please proceed.
Shivkumar Prajapati
Yeah hi sir, thanks for having my question. My first question is will you be able to you know throw some light on the customer expansion or their capex plan for the next two to three years to whom we supply? Also if you could you know mention the names which is possible like which are possible for you.
Santosh Kumar Yadav
No customer name. I of course I cannot disclose but however like just average I can give you as of now our average is like that like on existing product around five product per day. We are adding in our soft floor from including all customer and average for new customers is still two new customer per month. We are going to add. But especially now you can see some big booms coming in data center pooling. So if you maybe heard today news from Google’s they are going to invest around 50,000 crown in India for data center.
Similar way we are good at numbers we can expect from data center and then as well as commercial other sites like hit pump then acid size deposition side.
Shivkumar Prajapati
Okay. And sir we are also expecting demand from you know hydrogen steel and renewable linked vertical. So what portion of FY26 and 27 order pipeline we are expecting from these segments?
Santosh Kumar Yadav
No hydrogen. As of now we are not working. But if particular some OEMs they are maybe working on hydrogen and they are using our detection that we are not aware yet. So this segment we are not very aware and we are not supplying.
Shivkumar Prajapati
Okay, sir. And sir, this new subsidiary that we have formed is having some conventional tax rate of 15%. So at what utilization levels we expect, expect our overall console tax rate to go down to say 20% or you know, 18. Like what, what would be the timeline for this?
Santosh Kumar Yadav
Can you repeat? I didn’t get it again
Shivkumar Prajapati
Sir, this new subsidiary that we have set up, it is having a tax rate of around 15, I mean the consumption tax rate. Right. So right now on console basis we have 30, 30, 28 to 30% of tax rate. So I’m just trying to understand at what level, I mean at what capacity utilization levels or say in period, period terms when can we see our console tax rate going down towards 20% or below it.
Santosh Kumar Yadav
So it’s I think tenure I cannot confirm. But it will work like that. Now he will not move further because it’s already full. So now whatever growth will come from H. Vac only. So H Vac have new tax rate and he have old tax rate. So now whatever growth will come is from new facility only. So once we have number. So of course HVAC will be the going up always and then heat up almost steady, was slightly down.
Shivkumar Prajapati
Understood. And so is there any criteria that we look before accepting any order? Is it the value or profitability?
Santosh Kumar Yadav
Of course, like small customer or like one or two number we cannot provide. And first once we have new RFQ so we see the customer profiles, it’s long term or short term, or they will buy continue or one time order. And then based on that we offer like our price to them. And once they will agree on price, then we can move forward for development.
Shivkumar Prajapati
Understood. And sir, are there any opportunities for cross selling and upselling in case the SKUs that we provide to our end users.
Santosh Kumar Yadav
No, I didn’t get it. Can you repeat again?
Shivkumar Prajapati
Suppose we are, you know, supplying an SKU. Suppose it’s 500 rupees worth. So if, suppose we develop any advanced SKU. So did, did we pitch the customers? Okay, we have developed something really efficient. So would you be interested in buying or something like that? I mean do we try to cross sell and upsell?
Santosh Kumar Yadav
Yes, yes. This way actually for doing this way actually this work we putting our laboratory, this thermotech research laboratory. Actually what happen if some of customer have their own laboratory or some they don’t have. So what happens they if somebody or OEMs they have laboratory. So they are busy in new development only but they are not working on existing product or all product. So what we will do like we will go to the customer or we will offer to them. Okay we can develop new series or new energy efficient or new higher efficient product for you. So we can take a complete product from them and we can have our laboratory, we can test on their existing product and then we can have data for their existing heat exchanger. Then we can have software so we can like do the simulation. Then we can design new heat exchanger energy efficient, cost efficient. And then we will test in our laboratory and then we will go to again customer and then we can have our test certificate and then we can offer to them some saving and some saving we can also retain this way. We already started work with OEMs. We have already some team for them work. And once we have lab so we will start this work also.
Shivkumar Prajapati
Got it. And sir would you be able to you know provide us the breakdown margin profiles across end sectors. Say oil and gas or chemicals or others. I mean just trying to understand which sector offers the highest margin.
Santosh Kumar Yadav
This as of now we are not doing and I unable to answer if we can give or not. So let me check with my team and if we can give we can provide you separately.
Shivkumar Prajapati
Last question. Any guidance for the top line and margins for the full year FY26.
Santosh Kumar Yadav
So it’s like that. Like this last you can say last quarter and this quarter is still we will be in some pressure because of H Vac have you can say income is less but of course we have expense. But from third quarter we will start to ramp them and then till 4th quarter we able to achieve on existing margin and then good numbers you can expect from next month layer. Because this RIPS policy we will able to get I think from third quarter and this pli also from next year. So this too will maybe will give you the more benefit on these margins. And however our export also will start from third quarter.
So these number six will add then of course margin will start for sure from next year and this next running quarter we will have pressure but third quarter you can maybe you can expect of similar ways.
Shivkumar Prajapati
Great. Thank you so much.
Operator
Thank you. Before we proceed with the next question I would like to remind participants that you may press star in one to ask a question. The next question is from the line of Sanjay Nandi from VT Capital. Please proceed.
Sanjay Nandi
Hello. Good evening, sir. Thank you for the opportunity. Yeah. So just to guide it like 18% has been our total exports roughly 45, 25 exit. And we are planning to ramp it up to 50%. Right? Is the understanding right?
Santosh Kumar Yadav
Yes.
Sanjay Nandi
If we plan to ramp it up to 50% of our total sales then what could be our incremental overall margins? Like if you can get skip some ballpark numbers in next two to three years on the line. So can you explain something like 18, 20 kind of what you used to do earlier?
Santosh Kumar Yadav
No, actually there is like some maybe I can maybe again on some product lines. As of now we are doing fin and tube it exchanger. Okay. So fin and tube we are expecting same margin till this year and next year of course it will be able to increase because of export, because of pli, because of REAPS and of course because of solar these things. But other side we are going to add some new product as well. So some new product like from representative side we will have in margin compared to our existing product.
However we have bar and plate have good margin compared to our existing product. So if we average out all things. So this year we are going to achieve one similar way and maybe slightly down because of this H Vac pressure. But from next year we will able to increase 1 or 2% on existing due to these PLI and then reaps and then new income tax scheme and these things. But however other side we will have overhead is more compared to adjusting. And then we have depreciation also is more compared to existing. So if I club teams so we can maybe slightly 1 or 2% we can able to achieve more if I club all things.
Sanjay Nandi
Got it, Got it. And like if we presume like everything will be like in production from the next year beginning onwards 27 onwards. So what kind of total sales can we just expect in next two to three years on the line like from 450 odd crores currently. What kind of thing we can expect in next three years or if you can give some like visibility for us.
Santosh Kumar Yadav
So numbers exactly I cannot share but however this year we are expecting 20 to 25% of capacity util from new facility. And the next year it’s around 50% and then three year from now you can see almost say 80% we can utilize from new facility. And our existing facility is almost full.
Sanjay Nandi
What is the current debt profile in our books as we talk.
Santosh Kumar Yadav
Sorry, can you repeat again?
Sanjay Nandi
Yeah, what is the current debt profile like the net if you can help us with the numbers.
Santosh Kumar Yadav
No, I think voice is correct.
Sanjay Nandi
Yeah, I just wanted to get the figure for the Netflix as on date,
Santosh Kumar Yadav
Actually. Sorry. And your voice is blur actually so maybe somebody able to understand.
Sanjay Nandi
I can. You can hear me?
Santosh Kumar Yadav
Yeah, I can hear you but once you. This word is blur actually can you repeat.
Sanjay Nandi
I would like to get the figure for the net date
Santosh Kumar Yadav
Net debt. Okay. Yeah. So as of now like this term we are very less around 22 cross and we are working capital only so it’s because we have some equity. So as of now you can see we are in position almost zero as of now.
Sanjay Nandi
Okay. Yeah got it. And so just to mention that like today’s new some data center cooling capex is coming up 50,000 odd crores. So what would be the quantum of our PI in that entire cape?
Santosh Kumar Yadav
No it’s. I don’t have exact number but today I only in some news Google’s announced they are going to invest 50000 crore in data center cooling in India. So I’m expecting I think 10% of HVAC system. That is not. I don’t have any data. I’m just assuming my own experience. So I think it actually can be 10% of HVAC system. So maybe it’s the roughly 1000 crore. I think only this project.
Sanjay Nandi
1000 crore for the heat exchange basis segment, right?
Santosh Kumar Yadav
Yes, yes.
Sanjay Nandi
That’s the ballpark number I wanted. And so what is the industry size as of now as we talk
Santosh Kumar Yadav
That that question actually I recall I remind because heat exchanger have like room ac also have heat exchanger and other industry also heat exchanger. So it’s the same product fin and tube type. So industry size is I think more than 4,4000 crore. If I club all but if in commercial sides I don’t have exact numbers because it’s the mix actually
Sanjay Nandi
No issues, no issues. I’ll come back in a queue sir. Thank you so much for your time sir.
Santosh Kumar Yadav
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Mohit from Shublab research. Please proceed.
Mohit
Hi sir, just to follow up on a previous participant question since we are planning a utilization of 25% this year from the new capacity and the peak revenue from our capacity is 2,400 crores. So can we do a 600 crore revenue this year?
Santosh Kumar Yadav
No, I think numbers I never said 2400 crores. So it’s maybe we went we have like 300 crore that time we said it’s the six times so similar way. So we are expecting from that way 20 to 25% this year
Mohit
Source it calculates around 1-800crores. So 1,800crore 25% will be around 450crores this year.
Santosh Kumar Yadav
So numbers I need to calculate. So maybe I can reply you personally or maybe. Or you can share the contact detail with the Yogis. Then we can let you know.
Mohit
Okay. Sure sir. We will take this off now. My question is like you mentioned in earlier comments that we have installed all the machinery in new plants. So what amount of capitalization are we seeing this year?
Santosh Kumar Yadav
For balance sheet, right?
Mohit
Yes, for balance sheet.
Santosh Kumar Yadav
So you like you are asking numbers or value Like
Mohit
A ballpark number. Yes, a ballpark amount.
Santosh Kumar Yadav
So that I don’t have as of now. So this also I can maybe refer you later because I need to check.
Mohit
Okay.
Santosh Kumar Yadav
So some still balance is not ready for this. Because after that also we received some machine after quarterly result. So that also we let you know separately.
Mohit
Sure sir. We can take this next time. And since the US tariff has been implemented. So after its implementation don’t we expect any downside in demand from us or we will see the same demand as earlier.
Santosh Kumar Yadav
So honestly we have as of 1 or 2 customer only who is regularly. So their their side we don’t have any negative feedback. And some customer is already approved stage. So from that side also we don’t have any negative remarks. Because this product. If they want to develop from other source then also they have to take some time. And if they buy from locally, of course the price is much higher compared to us. If they add the duty as well. Or if they will buy to other country like China.
I think China also have more duty compared to us. So as of now we are expecting there will be no much impact on us. But how we are still from my personal opinion, it is I think from this. And we. I think everybody now give when we can change. We also don’t know. So we are working only like our way. So we are not considering what will be the tariff in next or what will be they come. So let’s see what will happen. But as of now there is no impact on us.
Mohit
Okay sir.
Unidentified Participant
Hi Mr. Yadav, this is Pratik this side from same team. Mr. Yadav, we have been reading about this district cooling centers. You know, which probably is a probable alternative to H Vac Where a small part of the entire city is refrigerator. You know, is cooled or other chilled or other refrigerated with the help of distinct cooling center. I just wanted to get your opinion on does it also require. You know the evaporator.
Unidentified Participant
And the condensers or is the infra similar to what is the current systems are. And our product will still go if you know district cooling centers are built because probably there’s one big tender in Amravati which has been you know won by some Dubai based conglomerate if I’m not wrong.
Santosh Kumar Yadav
Okay so this is good question for me. So what happened like as of now maybe in the middle of city in like big city like Delhi or maybe Bombay. So everybody have their own heat tax like over air conditioning maybe split or maybe window. So of course heat is also going outside and maybe if nearby some other building. So there is the maybe suffocation also in between the both building. And of course energy wise also is wasting. So this I heard maybe I think few years back four to five years. So government is planning like that they are making one hvac system maybe combined for all society.
Or maybe they can club maybe 1,000 or 2,000 home and then they will cool like they will supply as a like gas supply what we are getting from outside as of now.
Unidentified Participant
Yes.
Santosh Kumar Yadav
So yeah and they will match and put the meter as well. So for us is good this cooling need heat exchanger and that’s we are making only commercially. We called commercially texting there so room ac. Actually as of now we are not supplying. So our market share in room case is almost zero. But this cooling our share will be almost more than 60 or 70% because we are the expert of the bigger heat exchanger or maybe commercially exchanger.
So our e taxenger for sure we will use. They will use on that methodology or new technology and room AC our market which is not there. So for us is the I think good.
Unidentified Participant
Understood, Understood. So you mean even if DC cooling center comes the evaporator and the condensers you know are going to go nowhere. They will require it in fact even in bigger sizes probably.
Santosh Kumar Yadav
Yes, yes. Because heat exchanger for sure they need and they will put like water cooled or maybe air cooled chiller. So as of now air cooled chiller is our big market. As still because it’s similar we like data center. So our product for sure will use even room AC our product because we are not supplying to rumacy. So Romec finance is there but not is our market. But this is our market. Yes.
Unidentified Participant
Understood. Understood. This is. This is. This was you know very helpful Mr. This just you know reminds me of one follow up if I may. So Mr. We are seeing in the high end residential projects, you know these days builders are now giving a central AC sort of arrangement in the entire apartment. So they’re also in case, you know, the split ACs or the window ACs are not there. And the entire building is when I mean air controlled with a central AC system. So there also market share, I mean TAM for us will increase, right? Is that fair understanding?
Santosh Kumar Yadav
Yes. The same what we discussed. Because the central cooling also is same process they use. There’s two or three way like they. They put the chiller. Maybe this chiller can be air cooled. Chiller can be water cooled. And then they have air handling unit. And there they have fan coil unit. So it’s the complex like complete system. So it means our coil as well. Ahu. As well. And water cooled chiller as well. Air cooled chiller as well.
Unidentified Participant
Yes, understood. Those are our questions. We just request you know reply back on 25% capacity utilization and commensurate revenue for FY26 from the new plant. If your team can reach back that will be very helpful.
Santosh Kumar Yadav
Yes, yes, for sure. Sure.
Unidentified Participant
Thank you Mr. Good luck for the entire year ahead.
Santosh Kumar Yadav
Thank you sir. Thank you.
Operator
Thank you. The next question is from the line of Yogesh Patil from Dollar Capital. Please proceed.
Yogesh Patil
Thanks a lot for the opportunity. Sir. Quick map. I have done as you mentioned. Q2 will again take a little bit time to ramp up on the new facility. So our revenues will be largely in line with the the current quarter. Correct me if I’m wrong. And secondly I have done small math. Suppose in a second half of FY26 if the facility ramp ups with the 25% utilization then can we expect a 200 crore kind of a revenue from the overall consolidated side per quarter? Is that a correct understanding? So that FY26 overall calculations comes around a 600 crore or 620 crore kind of a total revenue. If you could throw some light on these numbers if possible.
Santosh Kumar Yadav
So honestly exact number I cannot comment. But however that is for sure the main ramp up on production side will start from third of this year, third quarter from this year and then fourth of course it will increase much compared to now or maybe third quarter. So we are expecting it compared to like full year is 20 to 25% of utilization from new facility. Yes, that is for sure.
Yogesh Patil
Okay, fair enough. Secondly, can you provide some details on the order book for the next few months which are in our hand. How much time it will take to deliver any any broader picture you can give us.
Santosh Kumar Yadav
So I think that question is the repetition of the last call. Also because we don’t have business like that key project work. We are not doing so customer we have like they developed us and then they have open order for only one month. Because based on their requirements then it’s rolling actually so each customer we have open order for maybe next one month only. And then once we will like have new month then we they have some even they can share the forecast. Cost on mail. Okay, this will be done once we are able to like ready to material for dispatch and they share the pure. Something like that. So we don’t have order books. Something like that we can share because of we don’t do like project work or long live time we don’t have. So we have just rolling actually each month.
Yogesh Patil
Thanks a lot sir. I will come back in for questions.
Santosh Kumar Yadav
Thank you.
Operator
Thank you. The next question is from the line of Hiral Parek some dollar capital. Please proceed. I would request Ms. Hiral to unmute herself and then speak.
Hiral Parekh
Yeah, most of my questions have been answered. Thank you.
Operator
Thank you. The next question is from the line of Rakesh Khosla from Dhansin Technical Investments. Please proceed. I would like to request Mr. Rakesh. So that is out of the queue. I’ll proceed with the next question. The next question is from the line of Shivkumar Prajapati from Ambit Investment Advisors. Please proceed.
Shivkumar Prajapati
Yeah. Hi sir. So sir, I just want to understand about the other expenses. So would you please be able to you know make us understand what the other expenses include and what part is fixed and what part is the variable.
Santosh Kumar Yadav
So as of now for further expansion we are thinking to get like in our portfolio complete product. Actually because backward indication we already did. So as of now we have complete heat exchanger range. Even we are the only one who have like 21 geometry in India market for the fin and tube type heat exchanger. And then we have completely sheet metal range including laser and third punch press. So we can make like big part and a small part as well. And then we have many fold site like tubing we have completely.
So now we are thinking to make complete assembly like completely commercial side. So it’s like railway air conditioning or you can something like that. So we can assemble and there will be almost very negligible investment and we can start the production immediately. So that way we are thinking. But however in next one or two months something conclude and then we will let you know the market.
Shivkumar Prajapati
No sir, actually I was looking for that other expenses part on the profit and loss statement.
Santosh Kumar Yadav
So other expense. I think I need other expense because as of now this data also I don’t have in front of me and vcfo. So maybe. Maybe we can share separately, right?
Shivkumar Prajapati
Sure, sir. Sure sir. Thank you.
Santosh Kumar Yadav
I thought we asked for.
Operator
Thank you. There are no further questions from the participants. I would now like to hand the conference over to the management for closing comments.
Santosh Kumar Yadav
So thank you everyone for like I received some good question and I really appreciate for who joined us for today call and we are working on I think on what we promise as of now to market and surely we will achieve what we said earlier and what we said now. So market is good and we have some good on track order as well in pipeline. So customer is also appreciating our new facility. So hopefully everything will be well in coming quarter or coming years and we will achieve what we said. Thank you
Operator
On behalf of Daulat Capital Markets Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.