KRN Heat Exchanger and Refrigeration Ltd (NSE: KRN) Q4 2025 Earnings Call dated May. 15, 2025
Corporate Participants:
Sonu Gupta — Chief Financial Officer
Santosh Kumar Yadav — Chairman and Managing Director
Analysts:
Yogesh Patil — Analyst
Nikhil Singhania — HNI Investor
Reet Ranawat — Analyst
Shivkumar Prajapati — Analyst
Saloni Jain — Analyst
Hiral Parekh — Analyst
Hardik Gandhi — Analyst
Heta Vora — Analyst
Soumya Shidhore — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the KRN Heat Exchanger and Refrigeration Limited Earnings Conference Call hosted by Dolat Capital Markets Private Limited. [Operator Instructions]
I now hand the conference over to Yogesh Patil, lead analyst from Dolat Capital. Thank you, and over to you, sir.
Yogesh Patil — Analyst
I would like to extend a very warm welcome to all the participants for taking the time out to be on this call and management for taking the time out to present us the scenario of Q4 FY ’25 and full year FY ’25. We have with us Mr. Santosh Kumar Yadav, Chairman and Managing Director; Mr. Sonu Gupta, Chief Financial Officer; and Mr. Jitendra Sharma, Company Secretary.
I want to hand over the call to management for initial remarks and then we will have questions and answers. Over to you, sir.
Sonu Gupta — Chief Financial Officer
Good evening, everybody. Myself Sonu Gupta. It’s a pleasure to welcome you all to KRN Heat Exchanger and Refrigerator Ltd. Q4 and FY ’25 Earnings Conference Call. Thank you for taking the time to join us today. As we close out FY ’25, I can confidently say this year marks a defining chapter in our journey, driving by the strong execution, expanded capabilities and strategic breakthrough. We are operating in a landscape marked by accelerating industrial electrification, growing demand for energy-efficient cooling solutions and a global supply chain shift. We’ve made significant progress on multiple strategic initiatives this year. Our HVAC business continues to see robust connection with capacity utilization, maintaining above 90%.
The refrigeration vertical is set to be the prototype market entry by May 2025, backed by the strong OEM and aftermarket interest. One of the biggest breakthrough this year has been our approval as a vendor by the Ministry of Indian Railways. Our wholly owned subsidiary, KRN HVAC Products Pvt. Ltd. has received official recognition from Ministry of Indian Railways for the supply of oil cooler radiators for converter transformer. We have already delivered a 10-unit prototype order to Banaras Locomotive Works, BLW.
We also incorporate Thermotech Research Laboratories Pvt. Ltd., a wholly owned subsidiary, focused on HVAC testing and training. This aligns with our strategies to push deeper into R&D.
Operator
Please hold, ladies and gentlemen. The line for management has disconnected.
We have the management reconnected in the call.
Sonu Gupta — Chief Financial Officer
Ma’ am Can you. Can you tell from this point last is recorded
Operator
So when you got disconnected.
Sonu Gupta — Chief Financial Officer
Okay. So, I will make a quick financial. One of the biggest breakthrough this year has been our approval as a vendor by the Ministry of Indian Railways. Our wholly owned subsidiary, KRN HVAC Products Pvt. Ltd. has received official recognition from the Ministry of Indian Railways for the supply of oil cooler radiators for converter transformer.
We have already delivered a 10-unit prototype order to Banaras Locomotive Works, BLW. We also incorporate Thermotech Research Laboratory Private Limited, a wholly owned subsidiary, focused on HVAC&R testing and training. This aligns with our strategies to push deeper into R&D and testing lead innovation. Our capacity expansion through Private Limited is progressing well. With civil work nearly completion, we will start commercial production soon. We also successfully implemented, as per HANA Cloud version, our SAP ERP system on April 1st for our internal operation, which will help us improve operational efficiency, enhance internal visibility, and strengthen process control as we speak.
Now, a quick look at our financials. For Q4 FY25, on consolidated basis, we delivered a strong performance with revenue of INR135.83 crores, marking a robsut year-on-year growth of 62.3%. EBITDA stood at INR18.89 crores, registering a 7.48% increase, while net profit rose to INR14.87 crores, reflecting a healthy growth of 23.44% compared to the same period last year.
For the full year FY25, our consolidated revenue reached INR441.71 crores, growing 40.79%. Year-on-year EBITDA came in at INR70.54 crores, up 20.63%, and net profit stood at INR52.88 crores, a growth of 34.25% over the previous year. On a standalone basis, Q4 revenue is INR132.16 crores, up 58.18% year-on-year EBITDA rose 13.07% to INR20.24 crores, and net profit increased by 10.98% to INR13.75 crores.
For for the full year. Standalone B recorded revenue of 438.47 crores reflects the 39.82% growth. EBITDA was 70.01 crores up 20.50% and net profit was 50.17 crores as increase of 25.79% year on year. Looking at the revenue mix, the domestic business contributed 362.4 crores accounting for approximately 84% of total revenue with a growth of 49%. Overseas revenue stood at the 67.5 crores driven by the strong performance in the UAE and Canada, our export grew nearly 49% year on year and now contribute 16% of consolidated revenue. Again lead by the transaction in the UAE and Canadian market we are aiming to increase this year to 30 to 35% by FY26. With product pricing 20 to 25% lower than EU Prius and faster development cycle enabled by our in house lab, we are strongly positioned for global expansion. While we did face some margin pressure during the quarter, we remain confident in our long term solar adoption, increased automation, backward integration and a rising export sales. These factors are expected to support sustainable margin extension. Our growth team stands now standard as around 480 continue to be the pillar of our execution and innovation capability. As we scale further the Rajasthan RIPS risk incentive and our application risk incentive Enough profitability looking ahead with the strong sectoral demand, a growing order pipeline…
Operator
Yes sir, please.
Sonu Gupta — Chief Financial Officer
New capability coming online, we are entering a very exciting phase of our journey.
In line with our long-term vision and commitment in the Make in India initiative, I am also pleased to share that our wholly-owned subsidiary KRN HVAC Products Private Limited. has received approval under the Government of India Products Linked Incentive PLI scheme for white goods. The approval comes with a sanctioned financial incentive of INR141.72 crores, which will play a vital role in supporting our backward integration strategy, development and localised component ecosystem and accelerating our business.
In closing, I would like to thank our team, customers and shareholders for their trust and support. We remain committed to building a high-growth, innovation-led and global competitive company.
With that, I now open the floor for Q&A. Thank you.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] The first question is from the line of Nikhil Singhania, HNI Investor. Please go ahead.
Nikhil Singhania
Thanks for the opportunity, sir. Sir, just two small questions. Sir, first is related to today’s filing about PLI scheme benefit of INR141.72 crores. Can you share some more details about it? And second question is related to the increase in material cost. How do you see it going forward?
Santosh Kumar Yadav
Good evening to all. I think that is good because today we received the PLI approvals around 11 o’clock today by mail. So, that same we updated it on both exchanges also. So, that actually is called product link incentive. So, whatever production we will make and we will sell, there is a top line percentage we will receive from government and like total they approved INR141 crores. So, there is a criteria like what maybe turnover we will do and what we will sell and then they will give us the percentage of total sale. So, other like rules and regulations we will receive in next one or two days. So, once we will have all rules and regulations, then I will let you know. But now conclusion is like that, earlier policy they have like that 6%, then 5% and then 4%. So, we can get the incentive in next three years in terms of these percentage for top line.
Your second question about little pressure on EBITDA. So, actually last quarter we have three things. I think we calculated that our EBITDA is down around 1.7% if we compare to last. So we received some seasonable sales like not regular sales. So some you can say, some increase in the sales. We received some order with less margin. Secondly, we sold some raw material actually to our OEMs. So, last actually I have quarter some pressure or this maybe issue with the BIS.
So, some OEMs have material shortage. Somehow we have scope. So, they ask us to sell the material. So, we have to sell because they are our original customer also for our product. So, that is raw material we cannot get the same percentage of margin. So, we sell in less margin. And secondly, we have some more employee for training which will transfer to HVAC products. So, that is our employee cost increase around 1%. So, if I club in three reasons, then around 1.7%. So, that is the main reason for EBITDA pressure.
Nikhil Singhania
Thank you, sir.
Operator
Thank you very much. The next question is from the line of Reet Ranawat from Aventus Capital. Please go ahead.
Reet Ranawat
First of all, I have two, three questions. So, in one of the analyst calls, you mentioned about the refrigeration facility. So, could you please clarify that KRN has already developed a refrigeration facility or are there any plans to establish one? So, could you give some information about that?
Santosh Kumar Yadav
No, I actually mistyped that word. What about you? Maybe can you come again for that?
Reet Ranawat
No, you mentioned about the refrigeration facility in one of the analyst calls. So, what was it about?
Santosh Kumar Yadav
This is a laboratory, right?
Reet Ranawat
No, you mentioned about the refrigeration facility.
Santosh Kumar Yadav
So, for refrigeration, we are already in like, actually, I am unable to get your right question. But, however, for refrigeration, like we are making completely refrigeration machine, like for indoor units, we are already making for Daikin India. So, Daikin India, whatever selling for indoor, for refrigeration, this cold storage, we are already making. And for heat exchanger also, we are making for refrigeration industry. So, that is my answer.
Reet Ranawat
Sorry? You mentioned around INR450 crores of revenue from that facility. So, what was it about like?
Santosh Kumar Yadav
Okay, this is for refrigerator, not refrigeration. Now, I understood. So, actually, for refrigerator, we are making three products. So, one is called roll boundary operator, second is the fin tube and third is the wire on tube condenser. So, three products belong to component for refrigerator industry. So, that top line, what you said, we can achieve in next three years. So, now, we receive all machines under installation and we receive some small order also from aftermarket. And for OEMs, since last three months, we are under discussion. So, we receive the RFQ with many OEMs also. Even Havells near to us, they will also make refrigerator. It is from our factory to, I think, our distance is around 11 kilometers. So, they will also start mass production from September. So, we are discussing with Havells also. So, this facility, we will start soon, including our existing facility. So, that top line, what you said, we can achieve in next three years. But slowly, capacity will increase. We will receive revenue also and you can see the end result also, incoming results.
Reet Ranawat
So, this is under the new subsidiary, right? HVAC subsidiary?
Santosh Kumar Yadav
Yes, it is in new subsidiary.
Reet Ranawat
Okay. So, another question that I had was, so now our main end user industry is HVAC industry. So, with the theoretical capex, so can we see a factorial shift in the end user industry or like our focus will remain on the HVAC industry only?
Santosh Kumar Yadav
Sorry, actually your voice is not clear to me. Hello?
Reet Ranawat
Yes. So, right now our main end user industry is HVAC. So, coming with the theoretical capex, so do we see a factorial shift in the coming years or HVAC remains our focus?
Santosh Kumar Yadav
As of now, all products are related to HVAC are only like heating, ventilation, air conditioning and refrigeration only. However, we can like add a similar other complete product as well for, but industry will remain same as of now.
Reet Ranawat
Okay. And one last question is that, so how will the new R&D facility contribute to KRN revenue?
Santosh Kumar Yadav
Yes, that is a good question. So, actually this facility will be made like as a separate. So, there is a separate plot number, separate building and we invest in separately and even name is also not linked to KRN. So, its name is Thermotech Research Laboratory and we did MoU with AHRI also. So, AHRI is our agency from North America and is the maybe biggest agency for certification and these maybe quality standard for our industry. So, there is no laboratory as of now for — like which is approved by AHRI. So, this will be the first laboratory. They already we have MOU with AHRI and we will do as a third party, other testing also for complete the industry. They can come and they can test based on like international, Asian, American and of course Asian.
What we will do for our product? So, as of now we are making based on customer input or based on software, we can design the product and then we can offer to customers. So, then customer have to test by themselves only. So, then they have if sometime issue then they come again and then it is like taking that too much time. So, now what we will do? We will do –we will based on their input, we will make the product and then we can test by ourselves for performance, for air flow and then pressure drop. So, we will have certification from our laboratory. Laboratory of course is the independent laboratory and third party based on international standard. So, they can believe this product is — they can use on their product directly without test. Secondly, what we will do? Like as of now all OEMs, they are busy with on their new development or new coming projects. But existing what they already approved, they are not doing want to change. Because if I want to some offer some savings, because when maybe 10 years back to design what that small tube diameter is not there in the market. So, once they start maybe from half inch and now you can see we have almost 5 geometry belong to 5 inch tube diameter also.
So, what we will do? We will take their old model, we will test them with original condition and then we will propose with our product. And we will do all test and then once complete the testing and then we can come to — maybe we will go to the customer. And then we can offer this is your product and you can save that money because of if you can change the heat exchanger. So, that mainly European and USA they have very less resources in terms of R&D and less manpower. So, that is we are thinking we will convert faster our market for both European and for North America.
Reet Ranawat
Okay. So do you have a number in mind for that revenue share?
Santosh Kumar Yadav
Revenue will be remain same because revenue will come from HVAC only from facility. But customer will believe if you have laboratory and you can have testing facility. So, they can believe on your product and they can value addition. So, they can offer us some like a slightly up margin as well.
Reet Ranawat
Thank you so much.
Operator
Thank you very much. The next question is from line of Shivkumar Prajapati from Ambit Investment Advisors. Please go ahead.
Shivkumar Prajapati
Yeah. Hi sir. Good evening. Thanks for having my question. Sorry if I am repeating the question but my call got disconnected. The first question is on margins. So, I need some clarity that our pricing is like whatever the prices are going on for the last quarter. We average it and we price our product for the next quarter. So, what led to the fall in our margins for this quarter?
Santosh Kumar Yadav
So, for this quarter, like, our EBITDA maybe you can say down around 1.7%. So, there is the three reasons which I already told. However, I can repeat again. So first we received some seasonable sales in the last quarter. So the seasonable sales we received less margin. Secondly, we sold some RM only to our OEMs. So, RM we have less margin compared to our existing product. And third one, our employee cost increased because we hired some employee in KRN Heat and they are going to trend in KRN Heat and then they will transfer to HVAC. So, that three impact is total is around 1.7%.
Shivkumar Prajapati
Okay. So — but if we see on YoY basis in Q4, FY ’24, our margins were above 21%. So, it’s a big fall around 7%, 700 bps?
Santosh Kumar Yadav
No, that is not correct.
Sonu Gupta
7% is EBITDA. 7.4% is increase, not decrease.
Shivkumar Prajapati
No, sir. I’m talking about the EBITDA margins and not absolute value. The EBITDA margins?
Sonu Gupta
No, I am talking also in terms of percentage. See that our EBITDA stood at INR18.89 crores. 17.48% as this was last year.
Shivkumar Prajapati
INR17.6 crores last year. Same period, yes. And the margins were around 21.4% for Q4, FY ’24, that is last year. And for this year, like the recent quarter, it is 14.4%. So, there is a gap of around 7 point something percentage. So, I am just trying to understand this huge gap?
Sonu Gupta
No, I think you are like maybe compared with that Q4 ’24 to Q4’25, right?
Shivkumar Prajapati
Right, exactly.
Santosh Kumar Yadav
Okay, that I think compared, we don’t have.
Shivkumar Prajapati
Okay.
Santosh Kumar Yadav
If you want to give me maybe, okay, maybe we can separately we will reply because that data we don’t have in front. Maybe I am discussing for Q3 to Q4 actually.
Sonu Gupta
Maybe we can separately give a reply because that data we don’t have in front we are. Maybe I am Q3 to Q4 actually.
Shivkumar Prajapati
Okay, okay, sir. We will connect for this. And sir, my next question is on this UK FTA deal with India. So, is there any favorable thing for us? And also, please, can you throw some light on this tariff impact by the tariffs which have been imposed by the US and also the trade talks between China and US. So, will these things impact our business?
Santosh Kumar Yadav
So, UK, actually we have some customer, like a small customer already we have in our portfolio. However, one big customer we are going for discussion. So, of course, they will have some maybe advantage if they will take from us. But before that also, they are discussing with us on serious note. So, as of now, we don’t see the big impact on us from UK. But however, backside they will have some benefit.
Second question about USA tariff. So, actually USA earlier they are buying from maybe locally or from European or maybe from China. So, as of now, no customer wrote us on the tariff. And whatever we are discussing is continued. As of now, maybe they are thinking what will be the result on end. So, they also don’t know and we also don’t know. But however, as of now, we don’t have any impact.
Third question about China and US trade deal. So, as per our personal opinion, I think whatever percentage they will decide, I think it will be compared to India. I think it will be maybe more compared to India. So, I think we will have benefit. And even this scenario, other side also manufacturer from USA side. So, I feel at least they have one other supplier from other than China. So, China plus one policy is maybe North America of course in Europe. Because they don’t know what will happen after four years because of this tariff issue.
Shivkumar Prajapati
So it seems that Phase 2 is on track. And did we start with the sample production that we were about to start in May?
Santosh Kumar Yadav
So this before next call, for sure we will start. Actually, we have to commission of the production. So first, we can cut like now machine is under installation, some machine under trial. So maybe next two, three weeks we will be able to declare production date. So we need actually two, three weeks to conclude the things. But for sure, before quarter, for sure we will start.
Shivkumar Prajapati
So, sir, will this impact our commercial production that we were about to start from H2 FY ’26? What is the expected date?
Santosh Kumar Yadav
From Q2, like, you can see on the top line for sure. And slightly we will start from this quarter end or early next week, early next quarter.
Shivkumar Prajapati
Okay, sir. And sir, like our run rate is around two to three new client additions per quarter. So did we have any new clients on our list for the quarter?
Santosh Kumar Yadav
Yes, sir. That run rate remains same as of now also.
Shivkumar Prajapati
Okay, sir. And would you like to share the volume growth for the full year or say for the quarter as well?
Santosh Kumar Yadav
Number I cannot share. But however, you can see like quarter-to-quarter, of course. And then honestly, this PLI if you had, so that is good news for us that we received today only. So, it will also help us.
Shivkumar Prajapati
And sir, this BHEL post securing that trial orders, what is the expected business size from them for the next two to three years?
Santosh Kumar Yadav
Actually, this BLW have, I think, total 3,000 orders. And if you roughly like four, so I think INR1,200 crores total in term of, but there is seven to eight players. So it’s a tender based business. So who will be like L1 that have maybe more business. So it will start maybe after six months because now we have to submit our two proto for trial purpose in the next couple of weeks. And then they will run on their loco on running actual conditions. It may be five to six months and then they will give us the approval for bulk tendering. Other than BLW, we are under discussing with other OEM also for same product. So even we received some sample order also from other OEMs and we will like target to export also. So there is a possibility from other OEMs some good numbers.
Shivkumar Prajapati
Okay sir. Thank you sir. I’ll wait in the queue.
Santosh Kumar Yadav
Thank you.
Operator
Thank you so much. The next question is from the line of Saloni Jain from Nirmal Bang PMS. Please go ahead.
Saloni Jain
Hi sir. Am I audible?
Santosh Kumar Yadav
Yes.
Saloni Jain
So I have a couple of questions. So, first is, since we are expected to begin commercial production from June this year, what kind of capacity utilization are we looking at in FY ’26 given the soft commitments we have from clients and the ruling order book? And what is the order size of tendering expected from Ministry of Railways?
Santosh Kumar Yadav
No, order like from this BLW as of now we received only 10 numbers like as a purchase order. But after that there is a tender around total 70 piece. So I think two or three tenders. So, that also we like quote our price and we receive L1 confirmation. So whatever they will convert in POS, we will have almost 70 piece as of now. But bulk tender will come maybe after June or July. But once we have approved for bulk tendering, then we can enter around for bulk tendering. So it will take two, six to seven months like for BLW. But we can supply to other OEMs like local OEMs so that we can supply.
And what was your first question? I missed actually.
Saloni Jain
It was on the capacity utilization.
Santosh Kumar Yadav
Capacity. So capacity what we told like before also in other calls. So, this year we are targeting around 20% to 25% of utilization from new facility.
Saloni Jain
Okay. And so, could you give a break-up of revenue with respect to commercial, automotive and data center in FY ’24 and ’25? And how do we expect this mix to shift in next three years?
Santosh Kumar Yadav
So this automotive and data center. So we not actually calculated based on industry. So, that data maybe I can provide maybe later. But the growth is there for sure. So we already wrote down. So these two data we will share. But data center of course growth is there almost 60% to 70% from OEMs, existing OEMs. So it will continue.
Saloni Jain
Okay. So can you tell me if we expect. So right now majority of our revenue is coming from HVAC. So, that are we expecting that from commercial to data center there will be a shift?
Santosh Kumar Yadav
Data center also we called HVAC. Of course it is the same process. So, we not calculated based on that. But if you like maybe change the maybe industry size then of course they can convert. But we are considering HVAC and our only data center.
Saloni Jain
Okay. And sir, based on the previous participant’s question also, are we aggressively trying to target US market now after the tariff war that we have seen between US and China? And it is a common understanding that China will definitely have a higher tariff than India. So are we aggressively targeting that market as well?
Santosh Kumar Yadav
Yes. Actually we like some of geometry we added for North America also. So, our position on the same. And even we did not receive any like feedback or reply from our customers or like future customers like if they have some issue with traffic because they are understood. It will happen maybe when they want to you can change. But like development and RFQ there is no change. So still we are on the same condition.
Saloni Jain
All right. So, and if you allow me for the last question, are there any further plans of expansion that we are looking at in FY ’26 and ’27?
Santosh Kumar Yadav
So, this year…
Saloni Jain
Have you decided on the capex?
Santosh Kumar Yadav
No. As of now we have not decided. But first we will like conclude this our manufacturing start and then next quarter we will see and we will declare. As of now under discussion many things, but we cannot declare.
Saloni Jain
All right, thank you, sir.
Operator
Thank you very much. The next question is from the line of Hiral Parekh from Dolat Capital. Please go ahead.
Hiral Parekh
Sir, my question is regarding the oil cooler radiators that will be supplying to Indian Railways. Could you help us with the margins on the same? I understand from prior guidance that they are higher than the other orders that we have.
Operator
Ladies and gentlemen, the line from the management has been disconnected. Please wait a moment till I connect them again. Ladies and gentlemen, we have the management back in the call with us. So please go ahead.
The line has been disconnected. Once again, please hold it. We have the management back with us. So please go ahead.
Santosh Kumar Yadav
Hello?
Operator
Yes sir. Please go ahead.
Santosh Kumar Yadav
Maybe last question. I unable to hear. So can somebody ask? I will.
Operator
Yeah. You can repeat your question.
Hiral Parekh
Yes, sir. My question was regarding the oil cooler radiators that we are supplying to Indian Railways. What would be the margins for the same? I understand from prior guidance that they are higher than the other orders that we have?
Santosh Kumar Yadav
Yes. So, it’s almost double compared to our existing product. But however, this is a tender business. So, sometimes it can be lesser because if you want to get the more order, then you have to reduce the price. But based on current price, it’s almost double compared to our existing.
Hiral Parekh
And sir, in this year, how much of the order book do we expect to realize?
Santosh Kumar Yadav
So, for oil cooler?
Hiral Parekh
Yes, for oil cooler.
Santosh Kumar Yadav
As of now, we have firm order around INR50 lakhs and around INR1.5 crores, we have received L1 position. So, as of now, we supply clubs around INR2 crore as of now. But some new tender is in coming month also. In 1st of July also, one tender around 70 piece. And rest of Indian Railway, we are under discussion with other OEMs also. So, as of now, we receive sample order only. So, once we will supply the sample, we will check, then they will open for new order. So, that is the current situation.
Hiral Parekh
All right sir. Thank you.
Operator
Thank you very much. The next question is from the line of Hardik Gandhi from HPMG Shares and Securities Private Limited. Please go ahead.
Hardik Gandhi
Hello sir. Thank you for taking my question. Am I audible?
Santosh Kumar Yadav
Yes.
Hardik Gandhi
Sir, just wanted to know a few basic things. First is what would be our existing or like overall margin for the year expected because given that there is a steep drop in the EBITDA margins and we are starting a production in Q2, there will be a lot of fixed costs coming our way for which we might not able to break even or something like that. So, just wanted to know on a year-on-year basis where we can expect our margins to land.
Sonu Gupta
There is a two favorable situation. One is the risk will start and the second one is the PLI will be received today, approval from the Government of India. So, this will be definitely adding our EBITDA margin that new facility will start in the second half and it will be a faster path so diluting our fixed expenses after coming this mass production of the this undergoing new facility.
Hardik Gandhi
Yeah, so I’m just. I just wanted to know what would be a good number like just 14% would be a good stable margin which we can maintain. Or do you think it will dip more in the near future and then it will stabilize? Hello. Hello.
Operator
Yes sir, please. Yes. So Mr. Yogesh, please unmute yourself from your side. The line for the management has been disconnected. Please hold while I it. we have the management back with us.
Santosh Kumar Yadav
Sorry for this. I don’t know what happened but so that question. So it’s now that if we talk about standalone so this our margin will remain famous slightly up if you compare to this last quarter and about console of course this again three to like one or two quarter will be some more pressure because of initial cost will be high like overhead and production will be less from like quarter third really on the same condition as our standalone.
Hardik Gandhi
So we can expect roughly 14% as a stable EBITDA margin.
Sonu Gupta
We are looking at the number
Santosh Kumar Yadav
Now if. like PLI itself we can get like 5% so that we receive today only. So that will be much more
Hardik Gandhi
PLI. A production being thing. But for the new phase or is it for the existing phase and the new phase
Santosh Kumar Yadav
For. It’s for new only for H Vac products for new facility. So we’ll have 5% now PLI and then 1.5% or 1.5% from RIPS. So you can see 6.5% is there.
Hardik Gandhi
And how long will this go till? Unless. Until we realize 143. 140.
Santosh Kumar Yadav
This PLI for next three year and RIPS for 10. Next 10 years.
Hardik Gandhi
10 lakh units or 10 lakh.
Santosh Kumar Yadav
Yeah, 10 year whatever. Like PLI is for next three years.
Hardik Gandhi
Okay.
Santosh Kumar Yadav
And for next 10 years
Hardik Gandhi
Any production we do we get 1.5% from the. Understood?
Santosh Kumar Yadav
Yeah. Yes. Yeah.
Hardik Gandhi
That’s it. From my side.
Operator
Thank you so much. Thank you very much. Next question is from the line of Shivkumar Prajapati from Ambit Investment Advisors. Please go ahead.
Shivkumar Prajapati
Yeah. Hi sir. Thanks for having my question again. The first question is we are supplying samples to our customers. So could you please share what’s the pipeline for our customers and what’s the conversion ratio.
Santosh Kumar Yadav
Our industry is not like that. We are supplying sample and if they will reject then they stop the conversion. It’s not like that. We like supplying sample. If there are some issue then of course they will ask again. So ratio is like that. If you want to do business so conversion will be 100. But if you are not not matching their price or maybe some delivery or technical. Of course. Then how to stop earlier also during feasibility study. So if you are supplying sample then sometime they will to go like six months, some three months or some one year. But business will be there.
Shivkumar Prajapati
Okay. So is it safe to assume that if yes, we haveapproval cycle started to supply samples then 100% will be supplying to them. Maybe after their approval cycle.
Santosh Kumar Yadav
Yes. But sometime like different of geometry or the conc.
Shivkumar Prajapati
Okay sir, next question is on the realization part. So can you explain what’s the realization difference per unit of our old products versus the new products?
Santosh Kumar Yadav
I didn’t get your question actually.
Shivkumar Prajapati
So what would be the selling price range the old products that we are supplying earlier? And also the new products that we are about to supply in the coming years.
Santosh Kumar Yadav
So it will actually like different product to product. Actually so now in our E Taxenger we are selling like single piece, maybe 500 rupees. And I think around 15 lakh. You can see the like range 500 to 15 lakh. And new product like our existing product of course will remain same. And parent plate also I think 20,000 to 5 lakh or 6 lakh. And then this refrigeration is the last. So it’s one piece, around five to six hundred rupees only. Because the commodities will be
Shivkumar Prajapati
Okay sir. And sir, we were also planning to set up some warehouses in Europe.
Operator
Ladies and gentlemen, please wait. The line for the management has been disconnected. Please wait till we reconnect them again. We have the management back with us, sir, Please go ahead.
Santosh Kumar Yadav
I think last question. I already replied, so maybe no question.
Shivkumar Prajapati
Yes, sir. Am I audible?
Santosh Kumar Yadav
Yes.
Shivkumar Prajapati
So, sir, we had plans to set up warehouses in Europe and us to cater their markets. So can you share some updates on the same
Santosh Kumar Yadav
So that Europe we are under 1st3pl like 3rd party logistics. And for USA we are looking but still we are not concluding. So first year we are going to like conclude a salesperson for us. So we had already improved for 5 to 6% from North America and from Indian Bay also. So in next couple of weeks I think we will conclude for and then we are out. So by end of this year I think complete both. Okay. And sir we supply to Schneider and we do around 50 odd crores of business with them. I think these figures are outdated. I mean for the last year. So for this year any. Any numbers that you have like what’s the business size deal with Schneider for this year Schneider like we are doing our sales around 90 to 95% of the total business. So growth is will not break out customer wide till now. So once we then I will share.
Shivkumar Prajapati
Okay. And sir we also got the approvals for their Europe Europe market as well from Schneider. So did we start to supply?
Santosh Kumar Yadav
Yes, before three weeks their quality team and their quality expert they visit us and they audit us for I think three days continue and then they send the report like as approved. So now pilot route is already complete. We will supply maybe next week. So once pilot load will they will use they will open for mass production.
Shivkumar Prajapati
And sir what’s your guidance for this year? Like the what would be the exports revenue? Any ballpark numbers.
Santosh Kumar Yadav
So this from adjusting facility it will remain same. Because we are on almost on 100% of utilization. And for new facility we will going to add new customer and increased capacity from existing customer. We will serve like we will supply from new facility. Top cost export will be growth will be there. But like in term of percentage I cannot clear now. However next call we can we can be clear.
Shivkumar Prajapati
And sir one last question. What are what’s our expectations from this railway versus a metro segment for the next two years.
Santosh Kumar Yadav
So as of now we are supplying it exchanger only. So growth is there. But we are expecting maybe 10 to 15% growth on existing business. Not much because they are not much percentage of our total business to that segment. But like some tender if they will go to our existing customer. Of course by automatically we will receive. So as of now on same percentage of 10 to 15% we are going to them.
Shivkumar Prajapati
This is the last one. It is regarding liquid pooling. So our heat exchanges get used in these segments as well. For this data center and all
Santosh Kumar Yadav
Liquid cooling direct there is no use but backside as well. Yes.
Shivkumar Prajapati
Okay sir. Thank you so much sir. Best of luck.
Santosh Kumar Yadav
Thank you.
Operator
Thank you very much. The next question is from the line of Heta from Monarch AIs. Please go ahead.
Heta Vora
Yeah. Hi sir. So I just have two quick questions. Firstly, I. With respect to your revenues from the US market I believe your 9 month FY25 presentation stated that the US revenues are around 6 crores. Whereas when we see the full year FY25 presentation it says the revenue is less than 1 crore. Could you help me understand the same?
Santosh Kumar Yadav
No, I don’t understand. Can you repeat again your question?
Heta Vora
Yes. So when I see the geographical revenue split. So for 9 months FY25 the revenue from US is stated as 6 crores. Whereas when I see for the entire entire year FY25 the revenue is stated as less than 1 crore.
Santosh Kumar Yadav
So maybe there is some correct. Some need. I think I need to check. But we added one customer from like Canada as well. So we received some good business. However this data I think need to check. I’m not sure.
Heta Vora
Okay. So it’s there in your audited financials as well in the geographical split.
Santosh Kumar Yadav
So maybe we have to check and then come back to you again. Okay.
Heta Vora
And so second thing. Could you help me understand how the networking capital will flow in FY26?
Santosh Kumar Yadav
Sorry,
Heta Vora
The networking capital. The number of days.
Santosh Kumar Yadav
First question. I think there is some because we have American. Like first is our 865. Like 8 crore 65 lakh is from American. And then USA they return 85 lakh. Like right?
Heta Vora
Yes.
Santosh Kumar Yadav
Actually USA also consider. So they actually they consider that maybe one customer as per their invoice. Maybe that another one so that both maybe need to club or don’t mess with that is the conf only. I think you. Right.
Heta Vora
Right. Okay. Sure sir.
Santosh Kumar Yadav
And your next question.
Heta Vora
The next next question is how would the networking app key cycle be for FY26.
Santosh Kumar Yadav
So this actually now some manufacturer already started. But still we are unable to take from them because of quality or maybe their prices or their delivery. So still we are importing and our government like BIS also implemented in last quarter so there is difficulty. So that’s why we able to increase our inventory. So I think in next six months once their manufacturer able to supply from locally then it will change. Otherwise in coming next six months it will remain same.
Heta Vora
So the number of days would be around 115 to 120 days.
Santosh Kumar Yadav
Yes, as of now is around 100 plus.
Heta Vora
Thank you so much.
Operator
Thank you very much. The next question is from the line of Soumya from Insightful Investments. Please go ahead.
Soumya Shidhore
Hi sir, thank you for the opportunity. I just had to recheck something. So you spoke about PLI benefits and you said that for three years it will be 6%, 5% and 4%. Am I right?
Sonu Gupta
Yes.
Soumya Shidhore
And then after that you said for the next 10 years it will be 1.1.5%. Is that so?
Santosh Kumar Yadav
Yeah, it’s precisely 1.5, 1.6 1.56%.
Soumya Shidhore
Okay. Okay. And also another I just missed your point on the BMW product that you are currently sort of, you know supplying to them. So could you please just repeat that?
Santosh Kumar Yadav
Blw right?
Soumya Shidhore
Yeah.
Santosh Kumar Yadav
So BLW and like DLW there is like many other manufacturing also they use oil color so that our product is used mainly in electric local. So that is a tender based business and we receive tender and then we have to apply and then reverse option is there so 7 to 8 like vendor also there. So whatever business like as of now they are asking like in a year around 3,000 piece. So whatever we can get we can supply other than BLW we can able to supply to other OEMs like off road vehicles and heavy equipment so for lift trucks and compressor. So there is also multiple customers so we are under discussing with them. So this all things belong to this bar and plate it exchanger.
Soumya Shidhore
Okay. All right, thank you sir.
Operator
Thank you very much. The next question is from the line of Ritra Nawat from Aventus Capital. Please go ahead.
Reet Ranawat
Yeah, so I had again so are we looking for the fundraisers for the remaining 650 kilo of mou from the rips.
Santosh Kumar Yadav
So as of now we not decided. However we have some other thing also under discussion but not NetLife like to expand the business in some other geographical or some new business going to add. But this will we will decide in next couple of weeks and then we will able to answer that question.
Reet Ranawat
Okay.
Operator
Thank you very much. This is the last question. I now hand the conference over to management for closing comments.
Santosh Kumar Yadav
So thanks to all for attending this call and I think this compared to if our compared to last call to this call. So we have three things to I want to mention again. So one is the SAP because SAP is the one of the best software for the world to control our things like in term of inventory production of course and the transparency in the system. Second we got the approval from BLW and third one we received the PLI approval today only and of course not last but least like PRL we also going for investing in R and D to like expand our product worldwide and to like give the right quality and right price. So thank you.
Operator
[Operator Closing Remarks]