Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
KRN Heat Exchanger and Refrigeration Ltd (NSE: KRN) Q4 2026 Earnings Call dated May. 15, 2026
Corporate Participants:
Komal — Whole Time Director
Santosh Kumar Yadav — Chairman and Managing Director
Analysts:
Hiral Parekh — Analyst
Tej Patel — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the KRN Heat Exchanger and Refrigeration Limited Q4 and 12 month FY26 earnings conference call hosted by Daulat Capital Markets Private Limited. 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 Star then zero on your touchtone phone. I now hand the conference over to Ms.
Hiral Parekh from Dolat Capital. Thank you. And over to you ma’. Am.
Hiral Parekh — Analyst
Thank you, Shailendra. Good afternoon ladies and gentlemen. On behalf of Dollar Capital, I’m pleased to invite all of you to the Q4FY26 earnings conference call with the management of KRN Heat Exchanger and Refrigeration Limited. The management is represented by Mr. Santosh Kumariadav, the Chairman and MD Mr. Pawan, the CFO, Mr. Jitendra Sharma, the Company Secretary and Ms. Komal, Whole Time Director KRN HVAC Private Limited. With that I’ll hand over the call to Komal ma’ am, for the opening remarks.
Over to you Komal.
Komal — Whole Time Director
Good afternoon everyone and thank you for joining us. FY26 has been an important year for us in many ways. This is the year where the groundwork we have been putting in over the last few years has started reflecting in our numbers and overall business momentum. If I look at the year, what stands out is not just growth but how the business is shaping up. We are seeing better traction across segments, stronger engagement with customers and more consistency in execution. The new H Vac facility and we commissioned during the year as it started contributing and while it is still in the ramp up phase, the response from customers has been encouraging.
We are also seeing our business becoming more balanced. Earlier a large part of our focus was on four heat exchanger products. But now we are gradually moving towards a more integrated offering. Our presence today spans across H Vac data centers, industrial cooling, transport applications and refrigeration. This diversification is helping us build stability in the business. Exports is another area where we are seeing steady progress. Markets like UAE and US continue to do well for us and we are also seeing initial traction coming from Europe.
It is still early but the direction is positive and and gives us confidence for the coming years. During the year we also entered the Bus AC segment. This is a strategic move for us. It allows us to go beyond being just a component supplier and participate in system level opportunities. We believe this will open up A meaningful growth avenue over the next few years. On the operation side, we have stayed focused on execution. Whether it is managing raw material volatility, improving efficiency, or working on backward integration, the effort has been to keep the business steady while scaling up.
As the new plant ramps up further, we expect operating leverage to start playing clearly. Coming to our financial performance for FY2026, our stand alone total income grew by 57.36% year on year to 68. 9.95 crore, while EBITDA increased by 19.41% to 84.79 crore and net profit rose by 42.11% to 71.31 crore. On a consolidated basis, total income stood at 609.81 crore, up 38.06 year on year, with EBITDA growing by 59.52% to 112.48 crore and net profit increasing by 44.62% to 76.47 crore. For Q4 2026, FY stand alone total income grew by 55.06% year on year to 204.93 crore, with net profit rising by 22.69% to 16.87 crore.
On the consolidated side, total income came in at 181.40 crore up 33.5% year on year, while EBITDA increased by 77.56% to 33.55 crore and net profit rose by 57.14% to 23.36 crore. Overall, the environment remains supportive with demand across sectors such as data centers, infrastructure and mobility. With the capabilities and scale we have built, we believe we are well positioned to capture these opportunities. With that, we would be happy to take your questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch on telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from Anuj Arya from Interglobe Services. Please go ahead.
Tej Patel
Hi. My question is more around the data center front where a lot of the new AI data centers, they require a lot of liquid cooling and not a lot of air cooling. So in the new facility that we are setting up or are there any new products that we are developing that can assist with the liquid cooling? Data centers. AI data centers.
Santosh Kumar Yadav
Yeah, good Afternoon to all. So basically data center there is two segments. One is the audio side and another is the ideal side. So ideal side is changing like in liquid cooling. But still I think it’s early phase in India. So outside like as a chiller or maybe dry cooler our product still will remain same fin and tube type and other one may be possible to change in future like micro channel mchx. So we already working on micro channel and by end of this year or early next, early next year we will have this product in our portfolio.
Other than this ideal side, ideal side fin and tube will replace maybe to like cdu. So there will be the plate and plate IT exchanger. So we also started the working on this IT exchanger. So once our study will complete so maybe we can add in coming next year in our portfolio. This is tax engineer as well. So as of now we are receiving order phenomenal from all our H Vac data center component in India. So CDU is very less for this year. Yeah,
Tej Patel
Got it. My next question on the the new capacity that’s coming up in in this that’s FY27 can we expect in the near 70% utilization for the new capacity that’s coming up.
Santosh Kumar Yadav
So new capacity. If you see like including all products. So we call like our old facility to 6x. So if you see all product maybe some operators you’re not aware so maybe I can repeat. So there is new product what we added already. So it’s one is the in the appreciation side wot wire on tube condenser and second one is the roll bond evop also refrigerator Then storage free air also belongs to refrigerator. Then skin condenser also belongs to refrigerator. Then other one is the different type of bar and plate and then complete product dry air cooler.
Then a complete product is ammonia operator and then complete product bus air conditioning and also in heat exchanger. We increase our bandwidth in term of new geometry. So these are portfolio. So we expecting this year inclusive all products and new geometry we will achieve 50% of capacity utilization from new facility.
Tej Patel
Got it. And my final questions around the raw materials. Basically in the last six to nine months has been a huge hike in all the raw material prices. What percentage of the cost are we able to pass on through the customers.
Santosh Kumar Yadav
So in all color of course we always remind. So our price pattern is like that quarter on quarter basis we able to change to our customer or we have such contact we can pass almost 100 copper, LME and aluminium LME and USD to INR. All three factors we can able to change with our customer and our price pattern or agree term is like that only. So you can say quarter on quarter basis we can able to pass 100%.
Tej Patel
Got it. Thanks. Thank you so much.
Operator
Thank you. The next question is from Aditya Sharma from Haloni Ventures Capital fund. Please go ahead.
Tej Patel
First of all congratulations for your excellent set of numbers. Sir, what is the expected revenue contribution from the bus ac business and data center business
Operator
In the upcoming quarters? And what margin improvement does the management expect in bus AC segment due to backward integration.
Santosh Kumar Yadav
So in bus air conditioning if you see like all Indian manufacturers so we are adding on the top in term of backward integration including fin and tube type with exchanger and microgen we are going to add then tubing side and then FRP side. We have all in house. So you can say backward indication. We have compared to other manufacturers on the top. Last year we achieved around 10 crore from bus AC only. And this year whatever is the market size. So we are expecting at least 15% market share. We will achieve this running fine sleeve.
And sir for the data center business. So data center now is really growing. So we have some good order booking especially from data center. And long lead time like 1 of customer is already booked like 6 to 7 month also. So Q4 we achieve around 18.7% from data center only. So if you see quadrant quantities is increase around 2.7% especially on quarter. On quarter basis and year on year basis also I think is increased. So now we have a good order booking from data center Even if I like little on the export side.
So last year we achieved around 100 crore export and now we have two good customers from export side also from data center. So as of now we are order booking almost 120 Gold plus for export including data center order.
Operator
Okay sir, my second question is that could you please provide the further details regarding the export order of of approximately INR 55 crore received by the KR&H VAC Products Private Limited including the geography and end use industry of the customer.
Santosh Kumar Yadav
So total order. What I said. Last year we achieved around 100 crore from export side only. And this year we are planning to achieve almost double compared to last year. Including all geometry like all geography especially North America, Europe and uae. And that particular being a confidential order. We can’t say like particular industry size or geography. But total we have opening order is 120 crore including all geography, Europe, UAE and North America.
Operator
Sir, I am asking about the latest 55 crore order received by the Care and H Vac products.
Santosh Kumar Yadav
Actually specifically particular that order I think what detail we can able to share we already share on our stock exchange so behind that we unable to share.
Operator
Okay sir, my last question is that could you please provide the details of the recent QIP including the amount raised key investors and the proposed utilization of the proceeds
Santosh Kumar Yadav
And can you repeat again these are the confidential right now. Hello,
Tej Patel
Can you. Could you please provide the details of the recent QRP including the amount create and the proposed utilization of the proceeds and the key investor defender.
Santosh Kumar Yadav
Actually we just took the board approvals up to 500 of the pop size and rest information is still not concluding so once concluded or we can share after that only. Yeah,
Operator
Okay. Thank you very much sir. The best of luck for your upcoming quarters.
Santosh Kumar Yadav
Thank you. Thank you.
Operator
Thank you. The next question is from Vishad Khabra from Haroni Ventures Capital Fund. Please go ahead Mr. Vishad
Tej Patel
Hello. Yeah. Yes good afternoon
Operator
Sir. First of all I would like to congratulate for your financial year results so the question is. Management previously mentioned that the company has benefited from anti dumping duties imposed on Chinese products. If a favorable U.S. Chinese trade agreement reduces these duties or changes the competitive landscape what precautionary strategies is the company implementing to protect margins and market share? Additionally, how is the current geopolitical environment impacting your export business in terms of demand, pricing, supply chain and customer diversification?
Santosh Kumar Yadav
So I I got your second question but first I unable to understand you can you repeat on first question?
Operator
Basically the question is Management previously mentioned that the company has benefit from anti dumping duties imposed on Chinese products If a favorable US Chinese trade deal agreement reduces the duties or changes the competitive landscape what precautionary strategy is the company implementing to protect margins and market share?
Santosh Kumar Yadav
So I think I unable to understand full question but maybe what I understand I can able to reply. So basically we are not competing with Chinese till now because our own products is customization and special industry because we are not in bulk and mass production. So I think Chinese can able to compete only if you have numbers is huge and one product like. Like catalog item. So we are on that not not that industry. So still we are competing with in Europe with European supplier and North America with North American supplier and of course we are directly supplying.
So I think this discussion I think long we are not competing with Chinese so there is no need to make the strategy on that second one geographical tension of course there is a continual issue on being like especially UAE so in March month we were not able to dispatch our disposit on UAE customers But now our dispatch Is already started. Our freight cost is increasing so we able to take increase from our customer as well. And North America and Europe as of now we don’t have any issues. So we’re able to dispatch easily whatever we are providing to our customer.
Other than this of course some slightly freight cost is increased especially due to the container some issue or maybe vessel issue. So that also we able to pass on our customer quarter on quarter basis. And that’s why little we increase our inventory also that is the one reason also we little because we have import metal like copper and aluminum is long lead item. So due to that tension we little increase our inventory as well. Yes
Operator
Got it sir. So my second question is could you please share the utilized capacity and install capacity of the new Nirmara plant And what capacity utilization levels does the management expect over the upcoming quarters and in the coming years.
Santosh Kumar Yadav
So I think this last year we able to utilize our full capacity and for H. Vac we able to I think applies around 15, 15% only. But this year our planning to achieve 50% from new facility as well and care unit will remain same.
Tej Patel
Okay sir thank you and wish you all the best for the upcoming quarter.
Santosh Kumar Yadav
Yeah, thank you.
Operator
Thank you. The next question is from Sagar Tanna from Alchemy. Please go ahead Mrs. Sagar.
Tej Patel
Hi Sandraji. We have raised resolution to raise funds. Yeah. Why are we raising these funds? What is the end use? If you can just explain this
Santosh Kumar Yadav
Actually objective is still not concluded. So I think very soon we will conclude the objective and then we will let you know what broadly mandigin will be one of the working capital.
Tej Patel
Okay so this is just an enabling resolution up to 500 crores. We may not actually do the full standard crore fundraise. Is my understanding correct?
Santosh Kumar Yadav
Yes, yes.
Tej Patel
Got it. Thank you.
Operator
Thank you. The next question is from Shashikanth from Brighter Mind Equity Advisors. Please go ahead.
Unidentified Participant
Hello.
Tej Patel
Yes, hello.
Unidentified Participant
Yeah, thank you for giving me the opportunity. So I have few questions. The first one is how is the demand scenario panning out after you know IMD and climate new you know guidance on the monsoon getting erratic this year. And so demand scenarios and inventory level in the market from our end customers.
Santosh Kumar Yadav
So this question I think belong to RoomBC industry but actually we are not seasonable company. So on us there is of course no impact on weather or season. But we have as a like commercial or running business. So you can see our each quarter will be on the like year on year or quarter on quarter basis will be on the top. So we have of course demand and we are able to utilize what we are saying 50% in this year. So of course you can see quarter on quarter basis growth will be there. So we have good enough order booking.
And of course we are working on same. And you will able to see so room AC side. We are not aware of course inventory size. And I think this year what I heard from industry season is not good. But still we are waiting to improve this.
Unidentified Participant
Okay so my next question is. So a lot of data center you know happening in North America approximately around size of 100 gigawatts. So what is the term for considering liquid cooling is being preferred alternative for the local market here.
Santosh Kumar Yadav
So in India of course everybody is talking about liquid cooling. And what I have some input like AI data center they will use liquid cooling as indoor side. And of course outdoors are chiller or dry code will be there. But it’s still in commercialization. Maybe it’s not started yet. Whatever like some piece they are using. Maybe Indian manufacturers they are importing complete CB unit and I think they are supplying so manufacturing not studied yet. So as of now honestly our customer also not so much career.
But what order they are booking is without liquid cooling till now or some maybe with with liquid pulling. So I saw my personal open. It will be. I think after one year some clarity will be there. And then maybe we can able to update you.
Unidentified Participant
So how we are looking at the export market in data centers. I mean you us is one of our. You know prominent export markets. So how is the demand panning out for us?
Santosh Kumar Yadav
So especially data center we already started export to two big customer particular to data center and three customer. We have pipeline under like development as a sample. So we are opposite. I think what I said key this year we are planning to achieve almost double export compared to last year. So there will be the one reason this we have like able to see good demand from data center as well from export side.
Unidentified Participant
Okay sir thank you. Thanks a lot. That’s all from all
Tej Patel
The place.
Operator
Thank you. The next question is from me Manoar from Trust mutual fund. Please go ahead.
Tej Patel
Yeah, thanks for giving the opportunity. So the numbers in the P are very good and you know very strong growth. Even Adida margins have also held up well on y basis. Just on the working capital side sir we have accumulated a lot of inventory almost 3x versus last year. And receivables have also gone up 2x versus last year. Some color around that. I understand that we are expecting large revenue big ramp up next year. But how to see normalized inventory levels and should one worry on the receivable side because there is some accumulations receivables also.
Santosh Kumar Yadav
So actually inventory side of course we are also seeing case increase and there is the some of reason I can may be able to try to explain. So first one is actually we booked like order book from UAE I think one order was it’s 120 crore and additional order also. So once March we have almost able to Dispatch like around 15 to 20 crore but we unable to dispatch due to that that work condition. So that material added in inventory in FG or raw material. Because raw material we already arranged for that other one is in inventory I think around 8 corrode 8 crore value.
We already dispatched in March but not able to convert it in BL so that is also covered in inventory. So that article will be add export in this quarter. Because from our 30 we already discussed in March only But audit are not considered in sales because deal was alternative. Other one is because new business what we added especially wot roll bond pro3 then skin condenser bar and place dryer cooler ammonia, bus air conditioning and new geometry. So we have to build minimum level stock up for this all new businesses.
So that is the one of the reason Also. Other one is still the is issuing in India. So now in this month also like 20th of May is the last week of the for inner guru tube. So that will maybe government again take the reopen the BIS or maybe approval which will take two, three months. So that also we have to build the inventory for at least one and a month before due to the BI system. Another one is the customer side pending. Because now a new customer is continue going to add in new business especially bus air conditioning.
So that’s why also this amount is improving. So hopefully you can be able to improvement in this times layer. Of course we will now put in some user net cash flow tools in our system. So within this running five years you’ll be able to see.
Tej Patel
Sure. So I mean should we see normalization of inventory to happen? I mean dispatches dispatches and normalization of inventory to happen in the next six months. 20 days
Santosh Kumar Yadav
Next six months like each quarter on quarterbase you will see the improvement. So I think things in maybe as per norms or normalization is still little. I can’t comment because inner guru tube is still not started in India either before like six months. Also we have news from manufacturing we can able to start including and also they are not decided yet. They supposed to start before one year. So still we are depend on imports and Then government is also want to stop the import due to the this BIS tool.
So still I think it will minimum. It will take six months to normalize the things, so. Sure,
Tej Patel
Sure. Understood. Yeah. That’s it for myself. Thank you.
Operator
Thank you. The next question is from Vignesh a year from Sequent Investments. Please go ahead.
Tej Patel
Hello. Am I audible, sir?
Operator
Yes, you are audible.
Tej Patel
Yes. Yeah,
Santosh Kumar Yadav
Yeah. Is it. Is it okay now?
Tej Patel
Yes.
Santosh Kumar Yadav
Yeah. Thank you. Thank you for the opportunity, sir. So my first question is. So I heard you earlier when you said that we can pass on the cost escalation, you know, on the raw material side or be it on other freight side to our customer. So wanted to understand if I. If I you know understood it right, there would be a quarter on quarter lag. Right before the price is passed
Tej Patel
On. Right. So for the first quarter we have to take the hit on our books, right?
Santosh Kumar Yadav
Yes. Because quadrant quarterbase also you can see it’s not increased like of course my since last six months. There is just some issue because it’s sometime increased sharply and then also sometime decrease. But however our pattern is like that the last three months not last three months last quarter, last quarter average of the. There is the. Our post pattern have one RM seed also we call raw seeds. So r see a factor like we. We have one separate table that belongs to LME for copper for like 3 month and then co LME for aluminium and then USD to INR and same seed we have some other ad also like including logistic cost, including freight cost.
So that is the full transparency to be customer. And once this like changed. So we always able to pass on to our customer.
Tej Patel
Okay, so but what is the usual number of days of inventory that we maintain? Months or days. Anything would do in months or days. Okay.
Santosh Kumar Yadav
Now it’s around two and a half month I think. Oh, okay.
Tej Patel
Okay. And
Santosh Kumar Yadav
Sir, when it. When it comes to execution, I heard you that you. You’re trying to achieve 50% of utilization
Tej Patel
For the new plant in FY27 in addition to our old plant. Right. And so what would be the. What would be the number look like for 28 and 29?
Santosh Kumar Yadav
So first number I can’t describe. I mean not in.
Tej Patel
Yeah, in terms of utilization. Sorry.
Santosh Kumar Yadav
So this year we are able to achieve like our old facility is full utilized and new facility. This year we are able to achieve 50% and next year 80%.
Unidentified Participant
Okay. And what would the margins look like for 2017?
Santosh Kumar Yadav
What is currently. You see we can able to increase because now we will in earlier calls also I Told you we will have two incentive. One is the central government is PLI. So we’ll able to receive this year 5% from PLI particular on heat exchanger production. And very soon we will have RIPS approval as well. Within this month can be possible so that we have approval from state governments for reaps approval then we can have for next 10 year we can have at least 1.56% of the top line for new facility.
And other than this our export is this year we are able to I think achieve around double compared to last year. So we will have some good margin compared to domestic and export. And other than this we will able to save some money from solar like electricity as well. Because we have now plant is fully operational and we have 8 megawatt solar facility. So if I love all these things. So we can of course we can able to slightly increase other side we will have depreciation is quite high and the overhead is now increasing.
Unidentified Participant
Okay sir. Got it. Got it sir. Thank you for your detailed answer. I’ll get back in the queue.
Santosh Kumar Yadav
Thank you.
Operator
Thank you. Ladies and gentlemen please limit your questions to one per participant so that management can address more questions. Should you have a follow up question we will request you to rejoin the queue. The next question is from Hita Vora from Monarch aif. Please go ahead.
Unidentified Participant
Hi, good afternoon. Congratulations on meeting set of numbers. Because I wanted to Understand from our Q4 Revenue what percentage is from products other than front and tube.
Santosh Kumar Yadav
So honestly that number is not prepared. But it’s roughly I think honestly I don’t have these data. So if you maybe you can maybe another entering queue. So next meanwhile our CFOs will bring that answer. So we’ll answer the next question.
Unidentified Participant
Sure, sure. So we were. We were considering entering. You know railways and marine segment as well. You know we were trying to get tenders in those segments. Is there any progress in that
Santosh Kumar Yadav
For railway now we are eligible for this bar and plate it exchanger. So there is process of including six month field trial. So now we are approved by this including 6 months 6 month fill trial. So now whatever tender is coming. So we are passionate on the same. Even last week also we passwording three tender and we all three we are on L1. So I think this week we were able to receive orders from the relay. So bar and fleet we already entered. Other than this marine. We are supplying fin and tube only marine for a marine application.
But complete attack system in for Indian railway we will we will enter. So that procedure is. I think from now is almost eight months. So we already hired the team and I think team will join soon. So once they will join particular that business they will start the things for documentation and plant approval. So it will take at least from now six to eight months and then we will once we will approve by railway then we can start the business. So this financial year I think we will not much expectation from this business but next year for sure we will have some numbers
Unidentified Participant
That
Santosh Kumar Yadav
Earlier one now we have now so 95 from finance tube and 5% from other business only.
Unidentified Participant
Okay, understood. All right. Thank you.
Operator
Thank you. The next question is from a Surya from Nimisha. Please go ahead.
Tej Patel
Thanks for the Am I audible?
Operator
Yes yes
Tej Patel
Sister wanted to understand first thing on the customer concentration on the data center business because on the commercial AC I guess one of the large OEM contributes significant portion of the revenue. So if you can maybe help us understand the customer concentration on the data center segment who are the top customers and how are they contributing in percentage. And second thing on this regarding the recent onboarding of new data center customers like I mean leaders like maybe Vertebr. So how are we on the approval process with these major thermal management players like Verto or any other player and with such players like already onboarded like Schneider and Clima, Vitech and Shell.
So are we also plugging into their localized Indian operations or is it just like we have to supply the cooling components to their global supply chain
Santosh Kumar Yadav
For data center we are only supplying like fin and tube right Heat exchanger also if need customer like sub assembly as well maybe with sheet metal that also we are able to supply so with some of customers are supplying. So your first question I I can see in top 10 customer we have the last times here we have three from data center only and what like whoever making that maybe component for the the data center. So almost all customer is our customer we are able to supply to all still like what team we now have vendor code opened our quality audit already happen and now we are approved by their QA system.
But it’s still like business maybe in billing will need to start so incoming weeks or coming months we can able to supply to what is as well other than this whatever customer Main like top 5 customer for data center. So we are supplying to all in India and export side also one customer we have from Europe and two or three customers from we have North America. So one customer is already we started supply to North America as well. So this year I think number for sure will like multi folding especially for data center business.
So we are good at it. Cruise and the motor booking also very good from the present question.
Tej Patel
Understood. And so next question is on like basically we are targeting a significant ramp up of the new facility. So if you can maybe help us understand like obviously commercial AC we have a good share of revenue but the incremental revenue which is going to drive. So maybe if you can help us understand that like how much will data center contribute, how much will bus AC contribute and also the railway one and also similarly in between those segment how much will be export and domestic.
Santosh Kumar Yadav
So in new facility you see we have nine, almost eight to nine new products other than fin and tube type. So this business business already started now in billing to many OEMs or including domestic some other OEM. So that is the main reason we will have revenue from new products as well as from fin and tube on existing customer growth and also new customer growth. Of course infinity especially we will have expecting I think more than, more than I think 80 or 90% on growth from especially from data center only.
So so like I can able to maybe new products including complete bus air conditioning and then existing customer growth and plus new customer growth and of course export. What I said we are going to achieve almost double within this year.
Tej Patel
That’s it. Thank you.
Operator
Thank you. The next question is from Kamrish Bagmar from Lotus Asset Managers. Please go ahead Mr. Kamlesh.
Tej Patel
Yeah, thanks. Thanks for the opportunity. So this that revenue target of like say 2250 to 2850. So are we targeting this by like say FY28 or it may perform to FY29 as well. And secondly on the working general side, like say I believe that at 2250 crore of revenue, at the lower range of the revenue we would be requiring roughly around 600 crore of working capital. So and I believe that given the fact that we are targeting such a huge growth and based on your numbers like say at 2250 crore revenue, we may be generating roughly around 300 of cash profit by the time we achieve that particular revenue target.
So is there really a requirement of like say to raise the money through equity raise? Because given our capacity which is already commissioned up and running and we are targeting such a huge growth and we can literally manage it through our own internal resources. So why capital raise is on the card?
Santosh Kumar Yadav
Actually of course you see the growth is quite fast and of course we already invested the money. So if you see, I think our balance is what we receive from ipo. So but we invested more than receipt of the IPO in current facility and now we are seeing we will have some that may be shortage on particularly on working capital side. So that’s why we decided in our board key we can maybe have some money through five people especially for working capital. But other objective also under condition. So that is still not concluded yet.
So of course we will have in coming weeks we will able to answer on that question also. You are also right. We can have through bank also. But that is completely decision by board only. So we can have maybe consider your suggestion also so we can see what will be happening.
Tej Patel
So lastly our entire capex is now over. So the capacity like the 6x existing capacity. So all that is done now not on the capex side.
Santosh Kumar Yadav
No like capacity we already done by building land or building and office. And everything is ready like utilization we are ready but to maintain to make the like line balancing so slightly we have to invest on existing facility also because we plan such a vehicle utility side we completed buildings are completed. But particular because we spent especially now industry growth. Especially to industry Industry we can’t imagine what will happen. Because once we like design our facility before two year that time we don’t know.
Okay. That doesn’t grow such way. So data center geometry and our system slightly depends. So once our existing capacity will full particularly geometry belongs to data center then we have to add another one also. So small investment would be there but not huge on existing. So
Tej Patel
For next two years how much capex we are planning? Sir,
Santosh Kumar Yadav
So still like paper is not my in in front of me. But roughly you can see I think maybe 30 to 44 will be there roughly
Tej Patel
In both years in next or year later and yeah okay. And that will help us to achieve our revenue target of 2250 to 2850.
Santosh Kumar Yadav
That numbers of course I can’t answer but capacity what I said 50 and 80% we able to achieve for sure.
Tej Patel
Okay, sure. Excellent. Thanks a lot.
Operator
Thank you. The next question is from Pratik Giri from Shublab Research. Please go ahead.
Tej Patel
Hi Yadavji. Greetings. I hope I’m audible. Thank you. My first question is on the execution this quarter. I’ll just try to explain where I am coming from. Because we probably commissioned this facility new facility in May of last year. We already had around a good 2/4 for this to ramp up. So I was expecting you know a substantially better numbers this quarter from December 25th quarter Q3 of 26. Whereas the incrementally we have hardly done around 1516 crore. So I just wanted to understand is this understanding correct that the ramp up Is happening.
But it’s happening at a very slow pace for the new facility. That’s the first question.
Santosh Kumar Yadav
Yes. So actually what happened? We started commission of production in May 2020. You are right. But it was like facility not fully commissioned in term of like our office was not ready and some construction is going on parallel. So we started what commission only install. So we no Grace did our dispatch on 11th of of March only. This. This like last month before two month only. So now we say last week only within the facility. So now you can check now it’s fully commissioned and ready. Other than this what?
Because the new facility we added new products. Almost eight new products. So for eight new products there is the procedure to customer approval side. So first we have to approach to customer for our plant visit. Then their QMS audit. Then sample approval. So. So that process almost now completed. Even in bar and plate detection there is a process of the eight month. But in my Indian they will be for approval. So that also we completed in February only. So now you can see in coming quarters what is your like.
Christian, you. You will have by default answer from our side. Quarter on quarter basis. Now capacity utilization will be much faster compared to last three quarter.
Tej Patel
Got it. And the last 45 days we are already on 15th of May now. So last 45 days the way ramp up has happened. That also gives you confidence that probably Q1, Q2, Q3 of 27 will be substantially better directionally.
Santosh Kumar Yadav
Yeah. This quarter you will see. Even I can say next eight quarter all quarter will be the ever highest hour. So this quarter also. But number. Number I can’t disclose.
Tej Patel
No, no. Certainly, certainly. Certainly. One thing in the presentation I could notice that you are quite confident of achieving 150 crore revenue from bus segment segment. So I was just wondering is this confidence backed by order book or. We are still convincing OEMs to place orders with us. Do you already have one 54 order book?
Santosh Kumar Yadav
We already cracked the 2, 3 OEM and our regular supply is already starting. And we are the in line on the 15% of the market utilization.
Tej Patel
Great, Great. That is. That is very encouraging. So that is the confidence of 150 crore which we have written in the presentation. My last question, Yadavji. You know I’m sure a lot of people have asked you about the fundraise. But you know fundraise in India have increased many fold in last few quarters. And what it leads to is different return ratios for some time which sometimes troubles the shareholders return. And I’m sure your team must have given you the Calculation. So this was just in suggestion that if it happens a little late after the ramp up is, you know, gunning all blame.
That will help us a lot in absorbing the incremental capital on the balance sheet. You know, as a shareholder, equity shareholder. But I’m sure whatever decision we’ll take will be certainly in full interest of, you know, minority shareholders. That is I am certain. So that was a small suggestion. Just one more thing. Yeah. Please. Sorry. Sorry.
Santosh Kumar Yadav
Completely. Yes.
Tej Patel
Yeah. So our inventory has gone up substantially this quarter. I understand we are in ramping up phase. Was there a unbilled revenue also? I mean because of this geopolitical uncertainties, any shipment issues, etc. That is why inventory has gone up or we have stocked up the raw material for faster execution.
Santosh Kumar Yadav
So your first first question answer of course whatever decision we will take of course is the must be interest of the overseer sharehold. For sure we will consider that. And second question. There is a multiple reason. But one of the reason this war is also like whatever crash is going on. So especially actually if you see we declare one UAE order I think for last quarter only. So that is actually we are in the material. But somehow in March dispatch is not happen. So we will have raw material and including finished good in our stock around worth of 15 to 20 crore.
And second one in March last week we export around 8 crore of the value of the export. But is not considered in balance sheet due to the bill is not generated. So that is also considered in inventory. And third one is of course we have to increase a minimum level stock of the four new products. So new businesses. So now we have eight new businesses. So that’s also we have to build the inventory other one last quarter we have to slightly make to up the inventory. Because RAC season is going on the particular that quarter and our vendor delivery time is goes up compared to last two quarters.
So that’s why slightly we step aside with the clean green. And of course one is the reason bis notification also from government the last date is 20th of May. So we have to build inventory before that only. So this some some reason of course we we feel inventory is quite high. But in coming quarters or maybe maximum from now 23 quarter you can able to see the under control.
Tej Patel
Understood. And so you see around 28 crore of finished good is lying in this inventory number 25 to 38.8cr
Santosh Kumar Yadav
We already dispensed. But of course they consider in inventory. And of course this now for for this UAE order we not converted completely in fg. So you can say half is raw material and half is as a finished code.
Tej Patel
Got it. Thank you.
Santosh Kumar Yadav
This month UAE dispatch is already started. So now you can see good things in this quarter running quarter.
Tej Patel
Got it. Got it. Very helpful. Thanks a lot for the opportunity. And I’m sure you know any capital allocation decision will, you know always happen in our interest. Thanks a lot. Good luck.
Santosh Kumar Yadav
Yes, thank you.
Operator
The next question is from Teach Patel from Nimisha. Please go ahead.
Tej Patel
Hello. Am I audible? Yes,
Santosh Kumar Yadav
Yes, yes. Thank
Tej Patel
You so much for the opportunity. Sir, I think just you know provide the data center share in this financial revenue.
Santosh Kumar Yadav
So complete finance layer. We have around 16% of revenue from data center.
Tej Patel
Okay, got it. Got it. And then answer. I get it. You know you have a rolling order book so probably you don’t generally provide the order book number. But you know since the lead time for data center are high. You were saying I’m sure there will be some order book in the data center which we would be having right now. So is it possible to provide that number? What is our outstanding order book for data center right now?
Santosh Kumar Yadav
So I’ve been not divided in total order booking in the data center. Especially because a data center Indian customer is our running customers. So they just give the one month firm order and then it’s rolling. But the export side we have a total order booking is around 120 crore including data center.
Tej Patel
Perfect. Enter the 16% revenue which you were speaking of. It’s majorly from exports, right? The data center
Santosh Kumar Yadav
This both domestic and export both.
Tej Patel
Okay. Okay. It’s the same customer both in domestic and export. The same two customers.
Santosh Kumar Yadav
No, in the as a domestic we can say was the biggest is the Snyder electrical. But other customer now I can’t disclose.
Tej Patel
Okay. Okay. And sorry you were saying. You know in Versiv we are in north as well. I’m just trying to understand, you know where can we get the final approval from them and when you know when can you start seeing a dispatch.
Santosh Kumar Yadav
We, we. We have approvals now from Verti because their QMS also completed and we have results. So we passed in first go only. So now we receive the drawings. So we are preparing the drawings for customer approval. So once they will approve in maybe in coming week then we will. We will have like supply to proto to them. They will proto approval and then mass production will start. So it’s coming month. I think it will start.
Tej Patel
Great. And so just wanted to understand you said and of course you kind of. You said almost incremental growth from the tenant. You would come from Majority of any from data center. Right. I’m just trying to understand what what portion of revenue probably would the data center be in the next financial year.
Santosh Kumar Yadav
So this year like last quarter we will have around. I think we have around 19 from data center. So you can see I think quadrant quarterback is for sure it will increase. But total percentage I am able to convert now. So maybe we can have to calculate and then we will let you know.
Tej Patel
Are we replacing any customer for 13 or let’s say in either in for India business of China as is the sole supplier or probably we are a second supplier or you know one of the multiple suppliers.
Santosh Kumar Yadav
No, like our existing customer we have major share but their growth is. I think each customer now is almost more than 80 or 90%. So that is we are receiving same same pace our fin and tube is extended. Other than the likewise earlier we are not supplying. So now we are adding new one and of course export also we added three new customer from data center only. So export side you can say we will be there maybe as a replacement or maybe second vendor. And for India we will enter as a second or third vendor.
But other our customer like we are have maybe other one other last year maybe we’ll have 20. This year maybe we’ll have number of share percentage increase and their growth is also there. So if you club all
Tej Patel
Understood. Except for data center export business is it USA majorly or with geography.
Santosh Kumar Yadav
So we are exporting both Europe and North America.
Tej Patel
I mean is it equally. I’m just trying to understand is it like more of Europe or North America?
Santosh Kumar Yadav
North America is more and Europe is less.
Tej Patel
Got it, Got it. And yes, one more question sir. So when you say 50% utilization, you know you. You are. I mean of course if demand is so good, I’m just trying to understand why not more than 50 is like working capital a constant or is it like a you know, general nature of the business, the renting of time, ethics time. I’m just trying to understand why can’t we not go about the state if demand is so good. I mean of course I get it. You know working capital comes with it. I’m just trying to get your view on this.
Santosh Kumar Yadav
No. 50 means including all products and all geometry. So like refrigerator industry, refrigerator component, we have five to six so there is a different industry. So now we are have already 2,3 OEM on board and we are already able to start supply with them. But now we have to add another customer also like big oem. So that’s why this capacity will increase. Maybe in one or two year. Other than this bar and bed also now we recently approved by Indian railway. So for this year we will of course we will participate in all tender and we will have business.
So also that will take to increase business or new customer also as well this new business dryer cooler and ammonia also we will have to add new customers or new business bus air conditioning also same way. So this year we are able to like we have to open service center pan India base. We have to onboard all OEMs. So it will take time approvals and of course to stream the supply chain. And for fin geometry like especially for like our existing customer or data center. Of course we can maybe able to utilize 80 or 90% of the utilization.
But we will have total 20 geometry. So all geometry we will don’t have such order key. We can maybe convert immediately on the same year. So we have to develop new customer based on our new geometry or geography. So that is the voltage and if we look up so then we can say in total we can able to achieve 50%.
Tej Patel
Okay understood. And just wanted to get your viewpoint on in terms of gross margin can we expect it to improve? Because you know at this scale are we getting an advantage in terms of sourcing in terms of let’s say lower copper prices or something like that.
Santosh Kumar Yadav
Of course slightly improvement will be there. But honestly last two, three weeks or this. This copper and aluminium silver price is behind the expectation because they sharply increase and sharply. So of course once metal like market is settled down then for sure sure we will have some benefit on like our volume will increase and we of course we can able to negotiate with our vendors in term of payment term or margins.
Operator
Thank you ladies and gentlemen. We will take this as our last question. I now hand the conference over to management for closing comments.
Santosh Kumar Yadav
So thank you all for joining the course. And I think we hopefully we able to answer all question on the nice way. But still if somebody have some question pending maybe you can write to our CA and we can able to answer. And of course what I said key slightly you can say Kiwi what we like utilize our capacity. There is some maybe still gap is there. But this year for sure quarter on quarterbase what you will see in numbers which will be the really encouraging and we will achieve what we said. So really thanks for joining the call.
Thank you.
Operator
Thank you on behalf of the dollar capitals. That concludes this conference. Thank you for joining us and. And you may now disconnect your lines. Thank you.