Maharashtra Seamless Ltd (NSE: MAHSEAMLES) Q1 2026 Earnings Call dated Jul. 31, 2025
Corporate Participants:
Kaushal Bengani — Deputy General Manager, Investor Relations & Finance
Analysts:
Gaurav Mehta — Analyst
Chetan Doshi — Analyst
Ankur Shaurya — Analyst
Saket Kapoor — Analyst
Vikas — Analyst
Radha Agarwalla — Analyst
Mohamed Farouk — Analyst
Amol Rao — Analyst
Tanmay Roy — Analyst
Unidentified Participant
Shaurya Shah — Analyst
Shriram — Analyst
Venkatesa — a
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Maharashtra Seamless Q1 FY ’26 Earnings Conference Call hosted by PhillipCapital India 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 this conference call, please signal an operator by pressing star 10 0 on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Gaurav Mehta from PhillipCapital India Private Limited. Thank you, and over to you, sir.
Gaurav Mehta — Analyst
Thank you, operator. Good afternoon, everyone. Welcome to Maharashtra Seamless Q1 FY ’26 conference call. From the management side, we have with us Mr Koshal Bangwani, Deputy General Manager, Investor Relations and Finance. So without taking much time, I hand it over to Mr Koshal for his opening remarks. Over to you, sir.
Kaushal Bengani — Deputy General Manager, Investor Relations & Finance
Thank you, Gaurav. Good afternoon, shareholders and thank you for joining our earnings call. During Q1 FY ’26, we have been able to dispatch almost 1,300 tons of seamless pipe. However, we have seen a marked slowdown in order booking which started in the previous quarter but has continued for a longer period than anticipated. This has had a direct impact on the performance in the June quarter of the company. The slowdown in order booking is attributed primarily to Chinese dumping and reduced expenditure in oil and gas sector. Our margins and EBITDA per ton have also declined and consequent to the increased Chinese dumping and slowdown of expenditure in oil and gas sector, there has been a decline in sales realizations. Whilst revival in order book is expected, it appears that September quarter is likely to be muted on margin front. I will briefly summarize key financial points. Our Q1 FY ’26 performance versus Q4 FY ’25 had a revenue decline of 11% to INR1,303 crores. EBITDA Declined by 41% to INR165 crores. PAT declined by 4% to INR234 crores and EPS was INR17 per share. Whilst decline in EBITDA was 41%, the decline in PAT was much lower because of performance of our treasury, which contributed an amount of INR160 crores booked in other income. Apart from financials, there are three key points which I would like to draw attention to. The first is our treasury. It is at INR2,919 crores as on 30th June 2025. It is being judiciously managed with engagement and inputs at highest-level. The second is our order book, which is at INR1,149 crores. We have seen a slight improvement in the export segment, but it is not enough to offset the slowdown in the other segments. The third point is a reputation of our credit rating, which was upgraded from AA to AA plus in the previous calendar year. The reason for the repetition is that is the highest credit rating which the company has received and it sends a strong message to all stakeholders about our strength and expertise despite difficult market conditions. That is the entire brief. I would now request Gaurav to kindly open for 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 the 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. The first question is from the line of Chetan Doshi from TM Financial. Please go-ahead.
Chetan Doshi
Yeah, thank you for giving me this opportunity. I have two questions. One is, there is a sudden drop-in EBITDA. So we are not able to get good pricing from the market because orders are collected much ahead of miss execution, it takes time. So when orders were taken, that time the pricing at which the orders were taken were low. And second thing is that we have INR2900 crores cash and you have shown that we intend to modernize our plant and INR852 crores are to be sold. So when the lean period is going on, why the — there is no action on this subject.
Kaushal Bengani
The reason for decline in margins is attributed to fall in realization. Reason for fall in realization is increased dumping from China and slowdown in oil and gas sector regarding the level of expenditure that is taking place. On the cash deployment front, we are continuing with our finishing line project in Telangana and the drawn project in Maharashtra. On the Telangana project, we have issued purchase orders of INR80 crores and expensed around INR46 crores till now and we expect that the project will get completed within the allocated budget of INR184 crores. On the cold drawn project front, we have received the machines which we had ordered and we are installing one of the machines in August and the second machine should also get installed by September and we should see an improvement in the quantity of cold drawn pipes dispatched from December quarter onwards.
Chetan Doshi
That is great news., one more thing. See, as far as this hot mill upgrade is there and where we plan to do an expenditure of around INR350 crores. So have we placed order on somebody or still it is to be planned out?
Kaushal Bengani
We have not started that portion of the capital expenditure plan. Once the Telangana line is completed, then we will address that.
Chetan Doshi
Thank you. I’ll join the queue again.
Kaushal Bengani
Thanks.
Operator
Thank you. The next question is from the line of Ankur Shariya, an Individual investor. Please go ahead.
Ankur Shaurya
Good evening, sir. My question is regarding one of the products that you said that we were about to begin or developing in our R&D with one of the competitors were — has already developed. So what is the update on that sir?
Kaushal Bengani
You are referring to premium connection that process is continuing it is a very slow process. It’s continuing for more than two years now. You will find that hard to believe that launching a new product takes that much time but it involves a tie-up with a foreign partner and that process is exruciatingly time-consuming and that is why it is taking that much time. I cannot give you a definitive date even right now. But even today we have had an update on that project, which I cannot share right now. But rest assured, we are working on it. But unfortunately, I cannot give you a definite date because there are many factors which are beyond our control. And for our competitor also, when they had launched in 2022 or early 2023, they had been working on it from 2019 onwards.
Ankur Shaurya
Sir, my next question is regarding the other income. You also would agree that our other income has now become a major part of our total PAT. And I have no problem with that, but the only issue is that now when we have a quarterly or a yearly result, we for ourselves are not sure as to how would the company do out-of-the main operation or from the mutual funds or the other investment that you have. So one of the — if you — and we also see that the management is not willing to distribute the money to the shareholders in the quantum that they have by their good management they have earned, but you are not willing to give that to the shareholders as well because the — I have been a shareholder in the company for last five years and for last three years, we have seen that your capex has been the same, the projected capex, but nothing is being happening on-the-ground. And also one of the thing is that you are well-covered because even if in case in the worst-case scenario, I feel that INR600 crores is something that we will yearly earn even everything goes. So when you are well-covered and I think a business like yours is in a maturity state, wherein either you want to grow or you want to distribute this profits that you are gaining to the shareholders. As a shareholder, I think that your company is one of the most valuable company that I have come across a market cap of INR9,000 crores, you have INR3,000 crores in cash or cash equivalents. But as a shareholder, I want to be a part of it. But at the same point of time, I don’t see what the management is trying to do with what they are accruing.
Kaushal Bengani
Your points are well noted, mister Ankur and And we had put out the capital expenditure plan of INR852 crores against which we issued purchase orders for two projects which would be less than INR150 crores to the best of estimates. And on the dividend front, we have quadrupled the amount of dividend which was paid out in FY ’24 from the level that it was at in FY 2022. In FY ’25, despite a decline in profitability, we maintained the level of dividend which we had paid-in FY ’24. Your point is that despite these two points, there is still a comfortable level of cash with the company, which is a correct point. I had mentioned in one of the earlier calls that our plant and machinery is subject to the risk of obsolescence because it is very old plant and machinery. There is no problem right now and we are doing good in terms of the ability to produce based on the current plant and machinery that we have, but there will come a time in future when we have to replace the existing technology in entirety with new technology. And that is also one of the reasons why we are conserving the cash. The third point which I would like to make is that we are still trying for inorganic opportunities, but in our assessment, we have not found any opportunity, which makes sense as per our method of doing business right now.
Ankur Shaurya
So your point is well taken for us. Even I run a business, I have a factory and you would agree with me that in no point in time, the entire machinery is out-of-date until unless a new technology comes in and the — our technology is obsolete. You are also agreeing that you already are increasing your manufacturing limits by the capex that you are going to do. So they you will get ample opportunity if in case you don’t have enough orders or let’s say that your order doubles, you have enough time to — you are increasing your capacity. You can also do is you can use that capacity and improve this capacity. But I don’t see that the requirement would be next three to five years. So when you know that you do not have immediate requirement for next three, five years in replacing the entire technology that you have, why would you like to keep so much amount of money with you and sir, it is not necessary for a company to grow. If in case you feel that you’re comfortable, you are earning good amount of money, it is good to enjoy that and share that with the shareholders. But never will be a time when you will feel in your entire life that either you will get an opportunity, you will not get an opportunity. If in case you get an opportunity to come out with the right issue will be more than happy to share money with you but for last three years since Board has been kind that your investment has reaped benefit again and again from INR400 crores, you have come to INR3,000 crores. And it is very good that God has been with you and the market has reaped benefit either divide the company in two-parts. One should be a holding company, one should be a seamless company. Maybe I don’t want to be a part of your holding company, I want to be a part of your seamless company. But now you have merged two big things together and the picture is not clear, sir. Don’t mind my saying it, but the management should take a big decision and again and again shareholders have raised this question with you and you have repeatedly given the same answer, but the answer doesn’t satisfy me. I’m sorry to say
Kaushal Bengani
Okay, I don’t have anything to add.
Ankur Shaurya
Thank you
Operator
Next question is from the line of Saket Kapoor from Kapoor; Company. Please go-ahead.
Saket Kapoor
And thank you for this opportunity. Am I audible, sir?
Kaushal Bengani
Yes. Yes, yes. Thank you.
Operator
Yes. Sir you’re audible.
Saket Kapoor
Thank you, sir. Sir, firstly, the EBITDA per ton is now in the range of closer to INR13,000. And earlier in your earlier conversation, we were looking for a bracket of say INR15,000 to INR18,000 to be very precise. So with this kind of order booking and the slow intake in the orders, what should be positioning in for the current year in terms of the plan for your EBITDA per ton?
Kaushal Bengani
Current year would be difficult to guide, but I think we are one month into the second-quarter and the order book does not look encouraging. So I don’t think the margins would be higher than what they are in the September quarter.
Saket Kapoor
So the band will be closer to where we are today. That should be the very likelihood.
Kaushal Bengani
Yes.
Saket Kapoor
And for the tonnage part, sir, last year, we did INR42 for the seamless segment and with the commissioning of the new lines for Telangana in the December quarter and if these business environment continue, what should be the — that tonnages for the similar segment that we may expect or anticipate for the entire year?
Kaushal Bengani
As of now, I think you should expect similar level of tonnage that was achieved last year when the Telangana line is operational then we will see if we have to revise it at that point in time.
Saket Kapoor
Sir, you mentioned about the Chinese product dumping. I think so in your earlier interaction, you did mention that there were some specific product hello.
Kaushal Bengani
Yes.
Saket Kapoor
Yes, there were some specific product lines which were not included in the anti-dumping, which was introduced in 2022, I think so. So now we have also put forward the revision for the same. So where are we in terms of the hearing and process Chalway, this may anti-dumping major request earlier?
Kaushal Bengani
The duty will be up for renewal in October 2026. So data selection process has started and we want to include as many products as we can. The key product in which we have noticed dumping from China which is one of our value addition products is cylinder pipe and we want to address that issue so that we can sell more tonnage of seamless pi of cylinder pipes and sell them at a better margin.
Saket Kapoor
So we have been predominantly of companies being a proxy to what and Oil India capex has been. And whatever we have heard in the public domain from the interaction with ONGC and Oil India all have put forward the capex amount higher than what have been for the March ’25 closing balance or whatever the interaction had been for the last con-call. So taking that into account and the annual capex is that much — that has to go through in terms of the budget, there has been this the sense that the capex from these PSUs are not happening the way that it should be and they should have this — I think so sir, scheduled is our quarterly capex concern. So what are we hearing from them, sir, in this in this context,
Kaushal Bengani
Sir, tender issuance is on a slower side, whilst we would have expected that tender issuance would have improved, but they have not improved. So the fall in order book is attributed only to two factors. Number-one, decline in expenditure in oil and gas sector; and number two, Chinese dumping. I think both these factors are equally responsible For the decline in our order book. And I think a similar trend should be seen in — for the other participants in the industry.
Saket Kapoor
Right, sir. Sir, last point on the last two points, specially on the modernization
Operator
Sorry to interupt you sir
Saket Kapoor
Okay, ma’am, I will come again. Yes, sir. I will join the queue
Kaushal Bengani
Moderator, please allow him to finish, please.
Operator
Okay, okay, sir. Sorry.
Kaushal Bengani
There is no.
Operator
Saket Sir, you can go-ahead.
Saket Kapoor
Yeah, yeah. Sorry, sir. Yeah, no, not in. Sir, as you were mentioning about weak creating a surplus for modernization of our plants and machinery as and when the time comes for the refurbishing the same. So taking into account the work which homework which people must-have done, what should be the replacement cost that we are strengthening in that may be required, say, six, seven years down the line for which you are working from today in order to not to be in a — in a corner when the time comes and not to be in the borrowers list rather than to be a cash company till then. So you must-have worked out your numbers for the same, sir in a ballpark number if you could say?
Kaushal Bengani
There isn’t a definitive number. There are really broad estimations and the cost of new machinery five, six, seven, eight, 10 years down the line is difficult to estimate, but the idea is that if we want to grow the operational capability of the company, then we want to grow in a cost-conscious manner. All the capital expenditure that we have done whenever we have added mills, we have purchased those equipment at 15% 20% of replacement cost at that point in time and that is one of the big reasons why we have been a cash-rich company at all times and a market-leader at all-time. So I cannot give you a number right now, but there is a certain basis for our kind of management and it has protected our position in the market and the combined wealth of shareholders on a longer-term basis, which other competitors in our industry have not experienced. And whilst the other competitors have taken aggressive position and we have taken less aggressive positions at that point in time, over a longer-term we have been greater beneficiary of our decision. So I think we will stick to that style of decision-making where we have been able to demonstrate sustainability and profitability over a longer-term basis.
Saket Kapoor
Right. I’ll join the queue for two more follow-ups. Thank you.
Operator
Thank you, sir. The next question is from the line of Vikas from ICICI Securities. Please go-ahead.
Vikas
Good evening,. Kaushal.
Kaushal Bengani
Good evening, Vikas.
Vikas
Yeah. Just one question to start with ONGC, they have a minimum order quantity usually for every year. Can you just tell us that what percentage of that minimum order quantity they have already placed in the tender or
Kaushal Bengani
Very little percentage because we have seen a significant decline in our order book on a quarter-on-quarter basis, there has been a decline of INR400 crores which has not been seen for the past at least 12 quarters on a quarter-on-quarter basis. So new tenders are in the process of being issued and some tenders have been concluded and are in the process of negotiation, but the actual ordering is much slower than we had seen at this time in the previous calendar year.
Vikas
Noted. So there is a hope of second-half some orders would come in. Yes. And the large order from ONGC that we had received in the earlier part of the year, we have dispatched most of it. No, sir so in case of — given our order book, the revenue visibility is very less. In case of this, these orders are further delayed, is there any contingency plan or the other segment in terms of exports or other product mix, which we can actually shell out at least to get the fixed-cost covered up. So if you could give us some insight regarding the
Kaushal Bengani
So obviously, if we reduce our prices by INR3,000 to INR4,000 rupees per ton further and which would mean a decline in EBITDA by an additional INR3,000 to INR4,000 rupees per ton, then we can easily run our plant and machinery. There is no problem on that front, but we want to maximize profitability and then that trade-off has led to a decline in order book
Vikas
Understood. And secondly, if you could tell us the impact presence of this 1 lakh ton plant is there any further delay or now it is on-track.
Kaushal Bengani
I think we will start by January, we will at least start some production by January 2026. If not the entire line in its entirety, then something will definitely start by January 2026.
Vikas
Noted. Any other opportunities which you have came across your segments basically since you are this cash
Kaushal Bengani
We have not us.
Saket Kapoor
Just one last question they ask about the cash, but right now, given the current market conditions, are we keeping major portion of our cash-in mutual funds or with the banks because mutual fund will be market fluctuation, we run the risk of getting some losses there, there. So just wanted to understand this INR7,900 crores, how it is divided in this or bank
Kaushal Bengani
Given a breakup on Slide 11 of the presentation, wherein INR514 crores is in bonds, INR20 crores is corporate deposits. Mutual funds is INR2,339 crores, fixed deposits is INR4 crores. Cash as on 30th June 2025 was INR42 crores and the investments in mutual funds are in equity bond funds, gold, silver and liquid mutual funds and also target maturity funding
Vikas
Okay. No, that’s all from my side. If I have further question, I’ll join back-in queue.
Kaushal Bengani
Okay.
Operator
Thank you. The next question is from the line of Radha from B&K Securities. Please go-ahead.
Radha Agarwalla
Hello, sir. Thank you for the opportunity. Sir, from April onwards, the seamless and ERW pipes had been put under the and pour. So what has been the impact of this in 1Q FY ’26?
Kaushal Bengani
There hasn’t been much of an impact for us because our order book has declined by almost INR400 crores.
Radha Agarwalla
Okay and sir in ERW we have seen a slowdown for last 6-7 quarters for the industry. So specific to ERW, when do you expect the demand to rival in this segment?
Kaushal Bengani
Pipes in ERW segment are used in water and oil sector. So in the oil sector, there is a slowdown in expenditures which has impacted the ordering for touch pipes. And in-the-water sector, there is slowdown on the Mission side, so which has also impacted the water price segment.
Radha Agarwalla
Okay. Thanks and all the best.
Kaushal Bengani
Thank you.
Operator
Thank you. Our next question is from the line of Faro from Pearl Capital. Please go-ahead.
Mohamed Farouk
Yes, good afternoon, sir. I would like to hear the management’s long-term strategic vision for the company. I have three questions that where do you see the company over the next five years in terms of capacity expansion, revenue growth and market position, both domestically and internationally? The second one is what are the key tailwinds supporting this vision and what — what’s headwinds or structural challenges do you foresee? The third one is, taking all of this into account, how does the management define success for the company by 2030? Thank.
Kaushal Bengani
On the expansion of capacity for the company going-forward, the capital expenditure plan has been put out in slide 14 of the earnings presentation wherein we have given line-wise breakup of various items adding up to INR852 crores. That is the only capital expenditure plans that we have right now. And as and when these things are completed, then we will come out with a new plan. On the second point, we is regarding where we see ourselves by 2030, I think we see ourselves as a market-leader because we have not known any other situation for the past 35 years. There have been other competitors in the same industry who have come after us and who have left the industry in the past 35 years. And our method of doing business is different from what we have seen our competitors adopt, which could also be a reason why all of our competitors have either been bankrupted or gone to corporate debt restructuring or gone to bankruptcy courts and then somehow manage to eat their way out. But we have always remained cash-rich and financially strong. And those are the core characteristics of our organization, which we would like to preserve apart from the fact that we will continue to remain a market-leader.,
Mohamed Farouk
Sir is there any — as you mentioned now, if some of the competitors have gone bankrupt, is there any opportunity for acquisitions, one of them. And second, is any of your competitors adding any capacity as of now?
Kaushal Bengani
Yes, to both questions. We acquired United Seamless Tribular Private Limited from the IBC process in 2020 and amalgamated that entity with our company. So that was one competitor which we had taken over. There aren’t any other opportunities right now in India. On the capacity expansion front, like the way we are going ahead with capacity expansion. One of our competitors also doing.
Mohamed Farouk
Can you please quantify that like how much is that adding capacity? Any idea?
Kaushal Bengani
It is available in public domain.
Mohamed Farouk
Okay, sir. Thank you.
Operator
Thank you. Our next question is from the line of Amol Rao from Financial Consultants. Please go-ahead.
Amol Rao
A very quick question on the rig. It comes into operation, as you mentioned in the presentation in Q3. Anything that you could mention about what the day rates could be or what — if you could just give us some color on that
Kaushal Bengani
The rig will be deployed by general drilling with ONGC at $35,000 per day, the rate payable by general drilling to Maharashtra Seamless would be around $17,000 to $18,000 per day, but that is subject to approval of shareholders, which they will obtain in their upcoming Annual General Meeting.
Amol Rao
Got it. And ji, the capex, how much is — how much are we spending on that if that detail could be?
Kaushal Bengani
On the Telangana
Amol Rao
Refurbishment on a refurbishment of the rig — of the rig.
Kaushal Bengani
Repurbishment of the rig. We are not yet sharing that.
Amol Rao
Okay, okay. Okay. No. Thank you so much, sir. Thank you so much and wish you all the best, sir.
Kaushal Bengani
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Chetan Doshi from TM Financial. Please go-ahead.
Chetan Doshi
Thank you for giving me the opportunity. Sir, as far as the presentation is concerned and as far as your stake, you’re increasing your stake in the company. So that shows that you are serious as far as the operations are concerned and — but the presentation doesn’t highlight as to where we want to put this company in because the last couple of presentations you see the growth plans also — for example, couple of months back, we developed an import substitute and that product was going to this oil drink, but after that no big orders received on those — these are all value-added products. There is no mention of that product at all-in this current presentation. And what happened to this government’s Gargar,, we were expecting a lot of orders from that also.
Kaushal Bengani
If you are tracking the company, then I think you should also track where the company’s products are used. 70% of our dispatches are in the oil and gas sector, which I have pointedly mentioned in almost every earning call. So the is not so much relevant to us.
Chetan Doshi
There were seamless sites in that now?
Kaushal Bengani
No, you don’t use seamless pipes for household tap water connections.
Chetan Doshi
Okay.
Kaushal Bengani
And on the — and on the value addition product, please tell me which value addition product you are referring to, I’ll give you an update.
Chetan Doshi
The only other products which we developed which was an import substitute which was going-in this the drilling of which
Kaushal Bengani
Drill pipes drill pipe, we have an order of INR27 crores. We’ve mentioned that in our order book.
Chetan Doshi
Yeah, but I’m expecting that what growth we are doing on quarter-on-quarter basis on that?
Kaushal Bengani
Sir, I mentioned in my opening statement that there is a slowdown in oil and gas sector expenditure. No matter how much I want to grow, I cannot sell if someone doesn’t want to buy.
Chetan Doshi
Okay. So when we expect to improve on this?
Kaushal Bengani
Sir, the expenditure in the oil and gas sector is expected to improve, but I think the expenditure in the September quarter is also not as much as we would expect because we want to keep an order book of at least INR1,500 crores. So for the order book to go back to INR1,500 crore level and assuming we sell INR500 crores worth of pipes every month, then in the next two months, we should expect orders of at least another INR1,000 crores. If that does not happen, then it will be difficult to go back to the current level of order book. And in fact to maintain INR1,500 crores of order book as on 30th September, we did orders right now of INR1,500 crores. So in the market are impacting all participants and we are not above what happens in the market.
Chetan Doshi
Okay. Any active tender which is going on and which is expected in next is August or September?
Kaushal Bengani
There are tenders in-process. We cannot give you specific details, but definitely there are tenders in-process.
Chetan Doshi
Something is expected in next month or maybe month-after that, right?
Kaushal Bengani
I don’t know.
Chetan Doshi
We may not get it, but see something will happen see, some company will be getting because if tender opening is already completed, only finalization is left off
Kaushal Bengani
Yes, but that finalisation may take two months it can also take 15 days. We don’t know. So to commit to a timeline is difficult.
Chetan Doshi
So these are from ONBC and Oil India and companies related to oil companies.
Kaushal Bengani
Sir, all tenders are from PSU sectors mainly.
Chetan Doshi
Okay. Thank you.
Operator
Thank you. The next question is from the line of Tanmay Roy from an Individual Investor. Please go-ahead.
Tanmay Roy
Hello. Hi, good evening. I have only two questions. One was like the order book which telling that actually slow-down, but you said that if you go down on our EBITDA per ton, you might be able to get more order. That’s what I’m understanding or am I wrong?
Kaushal Bengani
I did not say that. I said that performance in the second-quarter is also expected to be muted because we are already one month into the second-quarter and our order book is at INR1,149 crores. So we don’t expect significant upward movement in EBITDA per ton for the second-quarter.
Tanmay Roy
Okay, and there is no signs as of now for improvement in any order books, but there are tenders ongoing. That’s what?
Kaushal Bengani
Yes, correct.
Tanmay Roy
Okay. Okay. Sure. Thank you so much.
Kaushal Bengani
Thanks.
Operator
Thank you. The next question is from the line of Sakshi Shah from Hathaway Investments Private Limited. Please go-ahead.
Unidentified Participant
Yeah. This is from. Just wanted one clarification. Last year there was a plant shutdown. This year in this quarter, there was no such plant shutdown, right?
Kaushal Bengani
Correct.
Unidentified Participant
Secondly, how have the raw-material prices moved in this quarter compared to say the quarter before.
Kaushal Bengani
Raw-material prices have declined by 2.5 to INR4,000 rupees per tonne.
Unidentified Participant
But that would have also impacted your realization?
Kaushal Bengani
Yes, that has also impacted our realization depending on the type of product.
Unidentified Participant
Okay. Okay. And lastly on this order book where you have got the order book from ONG and oil — oil and gas sector reduced. Is there any competition which has come in or is it that overall there is a slowdown what you have been mentioning?
Kaushal Bengani
Overall, there is a slowdown.
Unidentified Participant
There is no competition which is taking away shape.
Kaushal Bengani
No.
Unidentified Participant
Okay. Thanks a lot.
Operator
Thank you. Our next question is from the line of Shariya Shah from Equirus Securities Private Limited. Please go-ahead.
Shaurya Shah
Yeah, hello, sir. So I’m new to the company, so apologies if I’m missing out on something, but wanted to know that see many of our peers are planning to expand operations and grow exports to the Middle-East. So are we also having some discussion regarding you know exports to the Middle-East?
Kaushal Bengani
Our peers are not exporting seamless pipes to the Middle-East. They are exporting EI pipes and pipes to the Middle-East
Shaurya Shah
And yeah and the other thing is that where do we see our ERW segment placed in the overall scheme of things after we complete all our capex. So in terms of revenue contribution, where do we see our ERW segment mix?
Kaushal Bengani
ERW segment is a small segment. It contributes 7% to 8% of total EBITDA. We are not growing in the ERW segment because the seamless segment is more profitable.
Shaurya Shah
Okay, okay, understood, sir. Those are the two questions. Thank you.
Kaushal Bengani
Thank you.
Operator
Thank you. The next question is from the line of Ankur Sharia, an Individual investor. Please go-ahead.
Ankur Shaurya
Good evening once again, sir. I have one more question regarding the other income. So our other income — sorry, our neutral for investment has increased from, let’s say, INR500 crores to INR3,000 crores. Am I correct in assuming that if in case some of — it would have been from the profit that we earned every quarter and the amount increase would have also been because we have managed it so well that the amount increased. Would it be safe to say that if in case we sell all the mutual funds today, there would be about INR200 crores of profits in the books as well.
Kaushal Bengani
No the mutual fund investments are restated on quarter-end, every quarter. So the mutual fund value of INR2,339 crores includes the notional profits that we have accrued.
Ankur Shaurya
But if in case you don’t sell it, you cannot take the profit in the books. Am I correct? Let’s say, I invested in INR500 crores five years back and today it is INR3,000 crores. And until unless I sell my mutual funds, I cannot book the profit. Am I correct?
Kaushal Bengani
So that is not correct. As per Indian accounting standard you have to do a mark-to-market at the end of every quarter-end. So whilst we have taken income, the income is notional income and we will not pay tax on it, which is why you will see that our current tax has not increased so much despite an increase in other income. Only a deferred tax liability provision has been made. When we sell the mutual funds, then we will get — then we will realize the profit and on that realized profit, we will pay tax and the deferred tax liability, which we had created earlier will get reversed.
Ankur Shaurya
So if in case what you are showing as other income of INR140 crores, it is the increase in your investments that we have made or from last quarter. So is that the correct way to understand that?
Kaushal Bengani
It is mostly that it also includes realized gain. So other income is realized gain plus unrealized gain.
Ankur Shaurya
Okay. I got it, sir. Thanks a lot.
Kaushal Bengani
However, we will only pay income tax right now on realized gain. We are not paying any income tax on unrealized gain.
Ankur Shaurya
Yeah, but in that case, there would be a time when you sell the mutual funds in that case, in that quarter, the income tax payable would be far more than the operational profit.
Kaushal Bengani
So we don’t know-how that quarter will work-out. What will happen is when we — when we sell the mutual fund at a profit, so then we will pay income tax on the realized profit and the deferred tax liability which we had created in earlier quarters will get reversed.
Ankur Shaurya
Okay, okay. Thank you, sir.
Kaushal Bengani
Okay. Thank you.
Operator
Thank you. Our next question is from the line of Shriram from an individual investor. Please go-ahead.
Shriram
You mentioned that there is an impact of Chinese jumping. So what is the difference between our cost and their landed cost? And do you think the pricing pressure will increase or it has bottomed up?
Kaushal Bengani
Will the anti-dumping duty was implemented in 2016 then it was done by way of a minimum import price in 2016 that minimum import price was prohibited however, when the first renewal happened in 2021 after five years, then the minimum import price was not increased. Because the minimum import price was not increased in 2021, in 2023 2024 2025 in That period, the minimum import price became less prohibitive or not prohibitive at all, which meant that products from China could be easily sold into India. The anti-dumping beauty is again up for renewal in October 2026 and we will definitely petition for a higher minimum import price and a larger coverage of the products that we manufacture.
Shriram
Okay. So but this should not impact the domestic oil and gas projects right because there is a preference given to domestic manufacturing.
Kaushal Bengani
Yes, it will not impact domestic project specifically, but if the domestic customer does not engage in oil and gas expenditure, then it will have an impact on us. Completely unrelated to Chinese dumping, it’s a separate factor.
Shriram
Okay. Okay. Got it, sir. Got it. Thank you.
Kaushal Bengani
Thank you.
Operator
Thank you. The next question is from the line of Ben Katesha, an individual research analyst. Please go-ahead.
Venkatesa
Hello, sir. My only one question what I have is, now if you look at the oil ministry saying, we are finding lot of probable oil wells, what they are looking at. So is there any possibility that we get a better order book from this oil you say well findings.
Kaushal Bengani
Possibility is definitely there because if you have the ability to explore and extract more oil indigenously, then ideally we should do that, but there must be some reason why that is not happening. I’ve also mentioned on slide 17 of my earnings presentation and I will read that short paragraph out, despite fresh discovery, tender issuance by the oil companies have reduced. This is primarily due to slowdown in oil and gas expenditure. Consequently, India’s crude oil and natural gas production has fallen, particularly from mature. Crude oil output dropped 2.5% year-on-year in 2024-’25 and natural gas production declined by 1%. The decline in domestic production has led to a higher import bill with India importing a significant portion of its crude oil, which is 88% and natural gas which is 51% I think that give you idea of what I have been trying to say the entire calling.
Venkatesa
Sir. Thank you, sir. I understood. Thank you.
Kaushal Bengani
Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I now hand over the conference to the management for closing comments. Thank you, and over to you, sir.
Kaushal Bengani
Thank you, shareholders for seeking time we have noted your feedback and as and when there is an update, we will ensure to communicate the same to you. Thank you.
Operator
Thank you. On behalf of PhillipCapital India Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect your line. Thank you