Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Mallcom (India) Ltd. (NSE: MALLCOM) Q3 2026 Earnings Call dated Jan. 22, 2026
Corporate Participants:
Rohit Mall — Associate Vice President
Shyam Sundar Agrawal — Chief Financial Officer
Analysts:
Vikram Suryavanshi — Analyst
Aditya — Analyst
Rishabh Shah — Analyst
Viraj Kacharia — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The Malcolm India Limited Q3FY26 earnings conference call hosted by Philip Capital India Private Limited. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and the expectations of the company as on the date of this call. These statements are not guarantee of future performance and involve risks and uncertainties that are difficult to predict. 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 then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vikram Suryamanshi from Philip Capital. Thank you. And over to you sir.
Vikram Suryavanshi — Analyst
Thank you, Shubham. Good afternoon and very warm welcome to everyone. On behalf of Philip Capital, I am pleased to welcome you all on the earnings call of Malcolm India Limited. We are happy to have the management with us here today for question and answer session with the investment community. Management is represented by Mr. Rohit Mall, Associate Vice President and Mr. Shyam Sundar Agarwal, Chief Financial Officer. We’ll begin the call with opening remarks from the management followed by interactive question and answer session.
With this, I hand over the call to Mr. Rohit. Over to you, sir.
Rohit Mall — Associate Vice President
Good evening everyone. It’s a pleasure to welcome you all to our earnings conference call for the third quarter and nine months of the financial year 2026. I’d like to begin by extending our sincere thanks to Philip Capital for hosting today’s call. Let me start by sharing a few operational highlights for the quarter under review before handing it over to our CFO Mr. Shyam Agarwal who will take you through the financial performance. We are pleased to report a strong improvement in profitability with EBITDA witnessing a significant increase in Q3 FY26.
This improvement was driven by better realizations across key product categories, movement towards value added products and continued cost optimization initiatives across manufacturing and operating expenses. As highlighted earlier, the company had undertaken substantial capital expenditure to strengthen its manufacturing footprint. Both our Sanand facility in Gujarat and the industrial shoe unit at Chandipur, West Bengal are now fully operational. While this phase of investment has resulted in higher depreciation and finance costs during the period, we believe these facilities will be key enablers of volume led growth and revenue expansion in the coming years.
With enhanced capacity and integrated manufacturing capabilities, we are well positioned to support rising domestic demand and scale. Our export presence over the nine month period, our domestic sales have grown at a faster pace than exports compared to last year reflecting our increased focus on the domestic market. We also witnessed an improvement in market share across all our branded market segments. This was supported by sustained participation in domestic and international trade fairs which helped deepen customer engagement and expanded our reach across geographies.
In addition, our annual dealers meet held in December saw strong enthusiasm and participation from stakeholders. Also, recent GST rate rationalization on select PPE categories has improved affordability at the customer level which aided purchase decisions, particularly in price sensitive segments and replacement driven demand. Our focus on driving higher sales is centered on expanding business with existing customers through larger order size, higher value contract and cross selling across multiple categories.
During the quarter, we further expanded our product portfolio with new launches in the safety, shoes and helmet segment. These initiatives are aligned with our focus on innovation, customer centricity and addressing evolving safety requirements across industries. Our targeted push in high growth and core sectors continues to support a volume expansion. With that, I’ll now hand over to Mr. Shyama Agarwal, our CFO who will walk us through the financial performance. Over to you, sir.
Shyam Sundar Agrawal — Chief Financial Officer
Thank you Rohit. Good evening everyone. I would like to provide an overview of the financial performance for the third quarter and ninth month of the financial year 2026 on a consolidated basis. For the third quarter of of financial year 2026 our operating revenue stood at INR 131 crores reflecting a growth of 11.5% year on year. Vita for the quarter came at rupees 19 crores. A growth of 27% year on year with EBITA margin of 14.7% and increase of 100 basis point on year on year. The net profit for the period was Rupee 10 crores, a growth of 13% year on year with PET margin of 7.8%.
Over a nine month period our operating revenue stood at Rupees 393 crores delivering approximately 13% year on year increase. EBITDA for the period was Rupees 47 crores representing a 3% year on year growth with EBITDA margin contracting by 109 basis points to 11.9%. Paid for the period stood at Rupees 24 crores resulting in weight margin of 6%. Thank you. With this we can now begin the question answer session.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone phone. If you wish to remove yourself from the question queue you may press star and Q participants are requested to use the handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Aditya from Securities Investment Management. Please go ahead.
Aditya
Yeah, hi sir. Thanks for the opportunity and congratulations on a good recovery in margins. So my first question is on exports. So our growth in exports has not been that great in the first nine months. I know you have mentioned Europe is a little slow, but if you look at the size, we are a minuscule player compared to the size of European markets. So even if the markets are slow, shouldn’t we be able to still grow considering our size, the new capacities we have added and the China plus one opportunity, which we used to talk about earlier?
Rohit Mall
Yeah. So with regards to European markets, even when the market situation is such where people are just wanting to spend on the mandatory requirements and they are, you know, looking to minimize spends, they’re not looking to put a lot of effort on, you know, vendor development and changes. It’s a cost for a lot of the categories. For some categories. Yeah, definitely. Just.
Rishabh Shah
Yeah.
Operator
Just a moment.
Rishabh Shah
Sam.
Rohit Mall
Yeah, I think it’s good now.
Aditya
Yeah.
Rishabh Shah
Yeah.
Rohit Mall
Am I audible?
Rishabh Shah
Yes.
Aditya
Yes, sir.
Rohit Mall
Okay. Yeah. So, so yeah, it’s difficult to, you know, convince, you know, people to, let’s say make a visit to us and you know, get, get into product development and things like that when the economy is, well, that’s number one and number two. Yeah, we are, you know, small as compared to the market. However, the competition is still there. And especially when markets go bad, you know, the competitions also realize and international competitions also, they start also lowering their prices and some people are okay with lower margins as well and some people aren’t.
So it’s just because we are smaller in respect to the market does not necessarily mean that every time we will grow. So it works. Definitely. We’re trying to gain market share from other European, other competition because in Europe in general, the growth of the market isn’t as much. So whatever growth, extra growth we are getting is by gaining market share from some other competition. So that’s the overview with respect to exports into Europe. And also in this time, even if you are able to get somebody else’s market share, you also have to ensure that your own customers are still growing if they are reducing volumes.
So even after getting newer customers, you are still overall not posting growth. So that also happens.
Aditya
Generally in such a situation. Do our customers generally prefer these are bigger suppliers and they tend to give lower orders to the smaller suppliers, does that kind of situation also play out?
Rohit Mall
It’s not. I don’t think any customer is looking like a bigger supplier and you know, give them more volume or smaller supplier. A, they definitely have multiple suppliers for similar product lines, most of the cases B, when they don’t have enough volumes then yes, sometimes they would like to consolidate to get better prices. But I don’t think with our customers or with any customer per se, it’s such that they would like to place some orders with just the big supplier, some with small suppliers or anything like that.
Aditya
And now it’s recent talks of eu, India, fta. So I just wanted to understand how could that be beneficial for maritime going forward?
Rohit Mall
No, that could be really beneficial because our sectors and our industry and our HS codes are usually the ones which are included in the free trade or any sort of trade agreements. That’s what we’ve seen in the past. So we expect, you know, good results coming from it and to you know, open big markets and at least for us have a level playing market from as compared to Pakistan, Bangladesh and other countries, you know, sometimes enjoy duty free export to European Union. So I think that definitely will help us and you know, to increase volumes from Europe.
Aditya
And sir, just to understand what is the current duty which we are facing for our products versus the duty which other players like from Pakistan and other Southeast Asian countries would be facing.
Rohit Mall
So it depends, something like leather gloves, it can be anywhere between 7 to 9% but Pakistan can be zero because you know of their status for garments, you know it can be around 12, 15%. And Bangladesh enjoy is duty free. So it depends from HS code to HS code and it depends on country to country. Some countries do enjoy duty free. We do not enjoy for any of our product codes duty free in two years. Europe, I, I not China also I think. But yeah, some other country do enjoy some duty free exports to the European Union.
Aditya
And sir, if I look at other export markets also for the first nine months, so aside from South America, other markets are more or less flattish. So for us, you know, to grow in double digit in export markets, would we be dependent on, you know, recovery in Europe or there are other markets as well where we can see good growth in exports going forward.
Rohit Mall
See in exports more than 50% of our revenue comes out of Europe. So we definitely need our European markets to perform well. And the second largest market is South America for us and then followed by North America and other markets. And North America also, as we all know hasn’t been doing so well. So you know, the first, the biggest market and the third biggest market are not doing well for us at the moment. So and honestly, the volumes are coming from these markets only. Right. Other markets are there, but there isn’t enough volumes for our white label business from these markets.
However, we have been exploring other markets like you know, Russia and Argentina and other places as well. But it’s a start. And the volumes are still very small.
Aditya
And also coming to domestic markets now. So we have seen very strong growth this quarter. So was this partly due to restocking by our dealers who might have delayed their purchases in Q2 due to drop in GST rates? And in Q4 we should be back to a 19, 20% growth rate which we used to do earlier.
Rohit Mall
Some of it might be because of, you know, GST which has impacted in Q3, but I don’t think all of the growth is because of that. We are, you know, expecting. Yeah, overall if you’re able to, you know, do a 19, 20%, you know, it should be good. But we are aiming for higher also in Q Q4. So one part is definitely GST, but I don’t think all the parts because with the dealers also, not all of them have the capacity to hold on to a lot of stocks and not all of them have. Most of them will not have the space or the cash flow for that to happen.
So they would like to keep rotating their stocks. So we hope to see similar kind of growth coming in Q4 as well.
Aditya
Okay, and now if you could just. Talk a little bit about the new products you have launched. So helmets unlitered and few gloves. So how’s the offtake been for these products and what kind of customer feedback you know, we have been receiving? And sir, also if I look at. Your LinkedIn page, I could see our post that Malcolm has launched Helmix but there wasn’t any mention of NITRE and new gloves being launched. So if you could just let us know if you started selling gloves in the market or not.
Rohit Mall
For gloves, yes, we have started selling PU gloves in the market. So we were always selling PU gloves in the market. It’s just that it was something that we were trading. Right. And now we are producing ourselves. And helmets. Yeah, we launched a new range of helmets like to cater to the mid tier segment and we also launched a very lightweight, sporty kind of safety shoe. And all of this happened in December and third week of December only. So with respect to our marketing and promotional efforts, we are still doing it.
We don’t want to put everything at once. So you’ll in the, if you’re following us on social media you’ll see it happening in the coming weeks and months. But yeah we have started selling these products and we started receiving interest and inquiries. So we are at a stage where we are sending out samples and getting more and more feedback.
Aditya
And just to understand this better, so I believe we have around 65 to 70 distributors in India. So just to understand. So are these new products being given to all the distributors? Have they been taking all these products or is it a step by step process where we are giving these products to the top 10 or top 15 distributors and then see how the offtake has been for us?
Rohit Mall
No, we don’t restrict it for anybody, any of our dealers. It is given to all, whoever depends on where their dealer is placed, what kind of industries they cater to, what kind of end user or reseller connect they have. Based on that they show us interest. And based on that we also know who we could target, which dealers we could target with what kind of products. Not all dealers will do all kinds of products but yeah, we don’t restrict it for any particular dealer
Aditya
And to understand this better. So out of the 60, how many of these distributors, how many of the distributors we can target and do we need to look for new distributors for these products?
Rohit Mall
We need to aim for new distributors in general, not specifically for these products. These products can go in the normal distribution channel that we have but in general we need to have more distributors as well. And for these specifics we launched helmets, we launched gumboot, we launched sports style lightweight safety shoe Pu. We are already doing so a lot of our dealers are already doing these products. It’s just a new addition. So about in all cases Nothing less than 50% of the dealers have asked for samples or inquiries and you know we are doing pricing and sampling and things like that with them.
Aditya
So next was yet set up two lines for our.
Operator
Sir, we request that you to return to the question queue for the follow up questions as there are several participants waiting. Thank you. The next question comes from the line of Rishabh Shah from Bugle Rock pms. Please go ahead.
Rishabh Shah
Hi, thanks. Am I audible?
Aditya
Yes,
Operator
Yes sir.
Rishabh Shah
So in the previous years we were one of the major suppliers in the oil and gas industry industry. But as you have said in the previous calls that you have not been present in industries like mining or other construction. So what is your progress on that front? Have you diversified into other industries or. We still cater asking major businesses from the oil and gas industry.
Rohit Mall
I’m not sure where this is coming from but we are not industry specific. Even you know, other industries we definitely do cater. Yeah there are some industries where like mining where we don’t have a lot of you know, products to offer to or they’re not buying a lot of you know the, in the price range that we offer, let’s say even in oil, gas, you know there are things that the more things we can explore. Something like even coveralls, inherent flame retardant coveralls and things like that. But we go to each and every industry and industrial town and target all sorts of end user.
If we have products matching for that industry or that end user there are specific requirements which we cannot cater to. But we do not restrict ourselves to any industry. We are making a portfolio of product which at least where some product goes into each of the industries because a lot of these, the usage of the product is in general handling which works in all the industries.
Rishabh Shah
Okay, so my next question is many companies are mostly served by the Chinese players. You say like 70% of them and there are these big billion dollar companies like vip, any such company. So just wanted to know what parameters are we fighting these huge players, are we going to gain market share from them? Is it the price or the quality? Because product quality would be at par with us.
Rohit Mall
Yeah, so a lot of these big players, they would sell only under their brand name across the world. Whereas we are happy to be a white label manufacturer for a lot of our customers who want to build their brands and compete with these brands also in their markets. So that’s one second a lot of them because of their brands have command a higher price and not everybody can afford that price. So we are able to beat them a lot of cases in the pricing as well. And then we allow, we have a multi, we are a manufacturer so we have the capability of customizing a lot of the items which these players most of the times don’t.
And then we are able to cater to smaller firms and smaller customers as well because we give them the opportunity to consolidate container with different, different items that we produce. So these are some of the benefits based on which you know we can, we can you know win the contract. And a lot of times it’s a question of you know, relation also you know we are able to you know, maintain good relations because we are into servicing the customers ourselves where you know we are talking to the promoters or owners or key decision makers in, within our customers and they are doing the same with us.
So the decision taking process, how fast we can move how nimble we are. That also helps, which may not be the case with larger organizations.
Rishabh Shah
Just a follow up on this one. As you say, you are happy in the white table segment of row. So sir, what has been our mix of banded versus private label? Because as I recall in 2020 like a two years back we were trying to build more on the branded sales making higher percentage of our revenue. So how have we progressed on those lines?
Rohit Mall
So I would say the progress has been good. I think even you know, from the beginning of this year to now the progress has been good as well. We are almost closing on 5050 ratio. Two years ago we would have been something like 65, 35 ratio if I’m not wrong. So the growth in branded has definitely been higher and as expected than the growth in our white label business.
Rishabh Shah
Just to understand on the total market side side, out of the total market of PT, India share is only 8 to 7% and our share in that was less than about 2% if I remember correctly. So my question is whether the increasing various product categories like we’ve introduced boots and helmets and also helmet is a completely new category. Have we increased our share in the whole because in the PBT also you’ve mentioned that you’ve increased market share for banded and local market segments. Just wanted to know in the whole segment we were less than 2%.
So have we increased our share in the whole India TP market?
Rohit Mall
I would assume so because we don’t get a lot of this data to study. So I would assume that, that we are growing at a faster rate than the growth of the industry because I don’t think the industry in India is growing at, you know, the percent of growth that we are posting. So that would ideally mean us gaining market share from others as well. So yeah, I would assume that we have improved on our market share in the Indian market.
Rishabh Shah
Next question is since certification is one of the major differentiation between let’s say nice and other unorganized players. So my question is how difficult is it to get a certification for an organized player? And especially which category would it be more difficult across all the categories?
Rohit Mall
See for the domestic market if you really want to get a certification and be a bis, you know, certified player. So in a lot of the categories the requirement is to have a lab and you know, that is the first impediment for people to have, you know, having a lab where they can test the product and then continuously submit details to the BIS authorities that you are selling these BIS certified products. So but in Each category, once you have the lab, it’s a lot of the categories don’t have a BIS certification.
So that those categories are very easy for somebody to enter, but with which in the categories that you have, once you have the lab, the entry level is, I would say, easy to pass because you know, you have, you have enough players in the market to study the samples and the products and get a certified product. But it gets tougher and tougher as you get into more complicated products or if you go into more value added products in the same category. So that’s where the segregation starts. And then obviously it’s not just getting the BIS, but also maintaining it and ensuring that each product which comes out is a certified product.
Rishabh Shah
Okay, okay. So what type of, let’s say in a product category you are saying more of let’s say complicated products. So could you please expand on that? What more complications so you have in categories?
Rohit Mall
Yeah. So for example, let me take the example of a safety shoe. Right. So safety shoe has two classes. There’s a class one, class two or a type one. Type two. Right. Type one will have something which is a occupational shoe. It will not, it will not have the protection required like a safety shoe, but it still be classified under the safety shoe category. So that’s basic. Then you have a safety S1 category, we call it. And then there’s S1P, there’s S2, there’s S3, three. So these are different, different categories based on if you want a toe protection, if you want a nail protection, if you want a water resistant shoe.
And then comes the Class 2, which is a complete waterproof gum boot, things like that. So there also do you want it with the metal protection in your feet or not? Things like that. So as and as you get into, and then whether you want a anti static shoe or electrical shoe or you know, these are the differences which start creating. And most of the people are good in the basic ones and the, you know, first level of certification, but when it goes becomes more and more stringent or more, you know, more protection to be provided, that’s where you get fined lesser and lesser number of players.
That’s how it differs.
Rishabh Shah
Fine. So thank you all.
Operator
Thank you. A request to all participants. Please requ your questions to two per participant. For more questions, please rejoin the queue. The next question comes from the line of Dani Desai from Turtle Capital. Please go ahead.
Rishabh Shah
Hi, good afternoon everyone and congratulations for a good set of numbers. So my first question is, you know, if I look at the margin, you know, gross Margin, I think it’s probably one of the highest or close to one of the highest in our square quarter. And you know, last quarter was probably on a much lower side. So if you can, you know, help us understand if there is any one off in this margin or is it just a product mix. And second part to this question is that our EBITDA margin is close to 15% away, significantly higher than what we have done in last two quarters.
And the ramp up from the new products and new plant is yet to happen. So should we expect this kind of a margin to sustain both at a gross level and EBITDA level?
Shyam Sundar Agrawal
Shamji, I think you can take the. Hello? Yeah, yeah. Will you please repeat the question? Yeah,
Rishabh Shah
So my question is that, you know, this quarter our gross margin is improved significantly even from our historical average of 38, 39%. While the last quarter we had one off because of RM&FX issues. So is there any one off? And if not, then our EBITDA margins is close to 15% which is again at a higher end compared to last few quarters, despite our new plants and new products yet to scale up to optimal level. So should we expect this kind of margins to continue going forward?
Shyam Sundar Agrawal
Yeah, definitely. So I would say the last quarter was one off. And you will see that. Or, you know, last year, last three, four years, we have been having EBITDA margin in the range of 13 to 15%. And this is what we have done this quarter also. And definitely, you know, with the new facilities coming up and investment we have done definitely we have some additional cost in the range of interest and you know, some employee cost also because we have had new employees and you know, depreciation also gone up.
So definitely we need to catch up on the productivity side of these new units. But overall, as you have seen, that margin remains because nature of business and you know, the product which we are manufacturing, the margin, overall margin would be in the range of 13 to 15% only. And this quarter also, you know, the realization has been better because of the increase in exchange rate also. And the prices were raw material prices are also stable. So, yeah, so we could do 15%. And definitely going forward we should be working this range only.
Rishabh Shah
Okay. Okay, Rohit, second question is, you know, from a two, three year perspective, I think our aspiration is to grow top line at 20% at least. Now, if I understand correctly, currently we are at, you know, 55, 45 or you know, 50, 50, kind of a domestic versus export. So, you know, in order to get to that 20, the domestic piece has to grow at 25 because from all the commentary that, you know, we are hearing from you guys for last few quarters, export has been a bit soft on the growth side of it.
So how do you guys look at it in terms of how do you, what is the playbook to get to that 20% plus kind of a growth over next two, three years?
Rohit Mall
So when we made this projections, obviously, you know, one part of it was also that, you know, some, you know, policies to work in our favor as well. So we are pretty confident about the branded and the domestic growth and growth coming out of, let’s say Middle east and Africa because we can see and control that market. And the policies are also in favor. However, when it comes to our export and white label, we expect that hopefully the worst is behind. If the world seems stable and will be stable, I think we can expect better growth from our export market.
Also, like we were discussing earlier that if this trade deal with Europe is to be signed, there could be great positive ramifications from us. You know, even with Russia, we’ve been able to, you know, get a breakthrough in the market. We are also expecting that with the US there will be some, you know, better deals coming as compared to now. So we are definitely expecting more growth out of our white label business. And yeah, with, for our branded, Definitely, you know, 20% or plus is growth something that we can target.
So that, that was our idea of, of, you know, getting to the target. And we are still confident that we would be able to, you know, get, get there. Maybe we, we’ve been set back a little bit with, you know, things which we can’t control. But we are still hopeful and confident that, you know, once things settle down, it should, we should be back on track.
Rishabh Shah
Okay, got it. More questions. I’ll come back.
Operator
Thank you. The next question comes from the line of Viraj from Simpl. Please go ahead.
Viraj Kacharia
Yeah, hi. Thank you for the opportunity. Just a couple of questions. First is on export. I think you said somewhere in the call that, you know, there’s a pricing pressure and customers are not really looking for an alternative supplier. But, you know, we have also seen some new additions. One is if you want us to understand the cost structure of, you know, competition from other countries, I understand there’s a duty part, but if one has to understand the pricing at the cost structure, visa visas, you know, how would that compare and you know, what kind of a profitability they would still be making at the low, you know, reduced prices, that is one.
And second is what kind of initiatives you are taking in in major markets like Europe and Nata. So if you can just talk something on the qualitative part, you know, what kind of initiatives you’re taking and what kind of a flow the new products, you know, new business we are seeing there.
Rohit Mall
Right. So cost structure wise, again depends on product category to product category, how we are placed as compared to the world. Something like leather. Yes, we have placed very well as compared to, you know, other players. The, the competition comes largely from Pakistan. When we talk about textile. So one is the technical textile, one is the regular cottons, Folic cottons. So again cotton, poly cottons, something that we compete mostly with Pakistan or the Southeast Asian country. But when it comes to technical textile, that’s largely against China that we compete against.
So I would say the pricing is okay. Sometimes we are, you know, cheap and sometimes expensive when it comes to polymers and synthetics. Synthetics, there’s not a lot of ecosystem in India, so we’re trying to build that and a lot of times we are expensive. But in polymers I think that’s something that we can also do as comparable to any leading player in the world. This is all obviously leaving aside the duty part. So price wise, yes, we have a right to win in some of the markets and the efforts that we are taking is see all these markets, it mostly works on relationship building, trust building, showing your product development capability, showing your capacities.
So we continuously participate in trade fairs or we make visits to potential customers and regular customers. We showcase them all our new launches, we invite them to visit our facilities. We keep our facilities compliant with the latest audit, you know, standards and regulations. So these are some of the efforts that we keep taking and doing on a continuous basis to, you know, just keep knocking and showing them that we are around what we are doing. Any developments that can, you know, be interesting for them.
These are the kind of marketing activities that we undertake for these markets.
Viraj Kacharia
And in terms of value added products, you know, what will be their share of revenue now? How’s the traction happening?
Rohit Mall
Product wise differs. So in footwear, you know, we’ve started doing, you know, value added work. We have invested in newer machineries, newer setup in newer materials to do more value added work. And it’s been going on good, you know, we are doing hardly 5, 7% or maybe not that, not even that. And now we’ve increased to at least I would say 15, 20% workwear also. That’s an area where we are developing a lot of our vendors and doing a lot of backend integration to ensure we go More towards technical textiles.
Same is the case with you know, our synthetic gloves as well. The move has been from very, very commoditized items to more value added items. And leather gloves still largely is non value added. But yeah, there also we are increasing our share of value added products which is giving us better margins as well.
Viraj Kacharia
Okay, last question was on the utilization. This last question, can you just give some color on the capacity utilization?
Shyam Sundar Agrawal
Yeah, yeah. So in case of you know, regular products we are almost operating at 80, 90% but definitely for the newer units like the safety sewage unit which we have set up in West Bengal age of now we are doing almost in the range of 40, 50% only. And we target that by March it should be working again in the range of 80 to 90%. And same for Sanand also. So they are maybe again in the range of 40, 50% age of now. So definitely we are adding a percentage also and the existing capacity utilization should also should be improving in this quarter.
Viraj Kacharia
Thank you.
Operator
Thank you. The next question comes from the line of Krishna Satiga from Smart Sync Services. Please go ahead.
Unidentified Participant
Am I audible? Sir,
Operator
Yes sir.
Unidentified Participant
Okay, thank you for the opportunity sir. Like focusing on some numbers. Like the finance costs have increased significantly year on year basis and I guess it’s mostly for the working capital basis. Is that right?
Shyam Sundar Agrawal
Yeah, yeah, it is completely for working capital funding only. Right? Yeah, yes. So as you see it has gone up because of two reasons. As you know that the CapEx which we have done over last two, three years is solely funded by us. And second thing is that, yeah, the cost of funding has also, you know, gone up because of government removing subvention which they were providing earlier for exports and to msme. And but after a long gap, almost one year, they have again introduced this but with some cap.
So we will be benefiting with this. But you know, but there is a cap of 50 lakhs per annum and which is maximum one can enjoy for a particular fancier. Otherwise it is the level of borrowing remains same age last year and this year. And it is solely for working capital funding. Right.
Unidentified Participant
Okay. So like for the working capital are we planning any thing to optimize that cost?
Shyam Sundar Agrawal
No. How is that possible? See if you are borrowing then there has to be minimum cost. So as it is, it is a, we are into piety sector lending and you know, know the cost is at the lower side. So we are paying in the range of six and half percent on you know, working capital funding and then definitely there can be, you know, some mention available so that Depends upon the government. When it is provided then you will have lower cost. And the ultimate thing would be that you don’t borrow. But you know this can happen in due course, but not now.
So whatever cash we were, we had generated, we have invested in, you know, we had, we have invested into our new facility. And definitely going forward the borrowings would come down further.
Unidentified Participant
Okay, thank you sir. Next question. Like I’m just. Two more questions. Like I just wanted to know that data dates like they have increased or decreased for the cash flow transitions.
Shyam Sundar Agrawal
Yes. See it depends. Most of the data days are you know, related to our export business. So in India we are, you know, branded sales. We are hardly giving any kid and few of the customers definitely the bigger customers get some small amount of K. But the majorly it is, you know, for exports and it depends in which market you are selling. So if you are selling to you know, the far markets like South America or America then definitely customer, customer ask for the bigger gate because they would like to make the payment only once the goods reached to their destination.
So you know it can vary. So if it is Europe then the Kate can be up to 30 to 60 days and even you know, I guess shipment. But in case of you know like Latin American countries or America, you need to give them kids to maybe 90 days also. So number of days data can vary depending on which market you are selling.
Unidentified Participant
Okay, thank you. And just last question. Like we see that the institutions have been cautious about the investment. So is management planning anything to like attract the institution investments and liquidity.
Shyam Sundar Agrawal
So this is what we are doing. We are, we are concentrating on our performance and work. So that is there to see and that’s why this is what we are discussing. So yeah, definitely we have already stated what, what would be our, you know, target and at what level we would like to, you know, to operate and how the things are going on. So everything is on public platform and it is there to see.
Rishabh Shah
Okay.
Shyam Sundar Agrawal
Okay sir.
Operator
Thank you. The next question comes from the line of Nishita from Safar Capital. Please go ahead.
Unidentified Participant
Yes, hello. So I just had a few questions. One is on the revenue growth. So with the quarterly run rate and with the Q4 growth rate that you’ve given of 20, we don’t see us reaching 20 growth year on year in FY26. So like can you give a color on where you see us ending on revenue front in FY26 as a whole?
Shyam Sundar Agrawal
Yeah. So as Rohit mentioned, this was a challenging year. So definitely on export front, you know, you Know international market conditions and a lot of tariffs and lot of, you know, slow down in Europe. So definitely export is something where we are struggling and the market can be quite big, but not at the moment. So we grew almost by 8% this year till nine months. Definitely the domestic market is better and almost, almost 20% we have grown overall. By March 26, we target that we should be growing at least in double digit figures.
Let us see how much we can reach.
Unidentified Participant
Okay. Okay. And also on fat margin. So because of the new facility that we’ve had and the increasing depreciations and finance cost, where do we see the path margin stabilizing and what will be the sustainable margin? Is it going to be in the 7 to 8% range?
Shyam Sundar Agrawal
Yeah, so ideally it should be in the range of 8 to 9% PET margin. But as we have already mentioned that we have done, we have just completed the major CAPEX cycle for us and definitely these facilities will take some time
Rishabh Shah
To start
Shyam Sundar Agrawal
Contributing revenue. So and profit margin. So for the time being, definitely there is, you know, a little bit of, I would say that additional cost coming within these few categories. But still as I mentioned that we would like to maintain the overall margin in the range of EBITDA should be in the range of 13 to 15%.
Unidentified Participant
Okay. Okay, thank you so much.
Operator
Thank you. The next question comes from the line of Dipesh Sancheti from many of finance. Please go ahead.
Unidentified Participant
Hi, am I audible?
Operator
Yes, sir.
Unidentified Participant
Yeah. Okay, so this is regarding the previous question which was asked that how the performance of Q3 has been vis a vis Q2 in terms of margins. With last quarter we had, you know, single digit margins and this quarter we’re having amazing margins. Can you tell me and can you quantify what changes has happened? Because the CFO mentioned that, you know, there was a changes in depreciation, in interest and I can see that in the financials everything is almost the same. So what actually changed? Whether it was a product mix and going forward, do we expect that to remain?
Shyam Sundar Agrawal
Yeah, yes. So we see two fronts. Basically we had better relations during this quarter and definitely the prices, raw material prices, has been stable and so no additional cost there. And better realization because of in exports we could realize, you know, even though you see that the currency has been depreciating. So yeah, there we could realize some additional money also. And we have some savings on account of manufacturing other expenses as well as other expenses, operating other expenses. So these all, you know, basically contributed into increased EBITDA margin.
Unidentified Participant
Can you mention which raw materials were prices have reduced
Shyam Sundar Agrawal
Across the, across the. Board, you know, whatever raw material we are using. So prices have been. Been on the softer side. Not we did not have to pay much on, you know, higher prices there.
Unidentified Participant
Okay. And the product mix was the same or there was any change in the product mix.
Shyam Sundar Agrawal
So we sold more of safety suits and that is also one of our top margin products. So yeah, for the quarter we had more revenue from, you know, domestic market and more of, you know, safety suit sales.
Unidentified Participant
So Rohit, how does the order book look like right now? Because we are going to have an expansion of Sanand as well as the other factory. Do you think the order book is enough for us to have a 20% year on year growth going forward in FY27? On FY28.
Rohit Mall
See in our case, usually the domestic market, the branded, it does not work like on an order book. It’s mostly stock and sell. But yeah, there is definitely interest in the market and we see growing interest with our product expansion as well. And for our white label business, usually the order book is, you know, we have projections with some of our customers. But largely the order book is three months, three to four months in advance. And that is something that we are, you know, starting to see as well.
And hopefully it can get better in, in the future. Our take is that, you know, the worst is, you know, we are in the worst or worse is behind us and it should get better. So if we are able to post this year with a, you know, double digit digit or a higher double digit number, I think we would have done a good job. And then the next year definitely should be better than this year.
Unidentified Participant
Can you contact the order book right now which you have, which is just four months in advance and quantify that.
Rohit Mall
So for our export market it will be anything, you know, if we. Anything like 80, 80 cr.
Unidentified Participant
8,085 years. And for the domestic market,
Rohit Mall
Like I. Said, in domestic we do not work on order book basis because it’s mostly stock and sell model that we are doing.
Unidentified Participant
Okay. There’s
Rohit Mall
No order book per se.
Unidentified Participant
If I can know how much of the exposed exports which are done in this quarter.
Rohit Mall
Sorry,
Unidentified Participant
How much was the export done in this quarter?
Shyam Sundar Agrawal
It was around 65 cr.
Unidentified Participant
65 cr. So in this 66 year the exchange rate as well as the realizations was so high that we could go with these kind of margins as you mentioned.
Shyam Sundar Agrawal
Yeah, yeah, definitely. And we had, as we discussed, we had the, you know, major sources also.
Unidentified Participant
All the very best. Hope you export more and you get better realizations. Thank you so much.
Operator
Thank you. The next question comes from the line of Aditya from Securities Investment Management. Please go ahead.
Aditya
Yeah, thanks for the follow up. So we had set up two lines for gloves. So if you just help us understand when can we see full utilization for these two lines and we were supposed to order more lines. So what is the status on the same.
Rohit Mall
So we are already running at with one of the line almost 50% and the other line even higher, 60 to 70%. We are running and the new lines have also been ordered and we are expecting it to get delivered and installed by Q1 of next year.
Aditya
And is it correct that these two lines would give us around 50 crores of revenue?
Rohit Mall
These two lines can give us. Yes, 50 crores of revenue.
Aditya
Understood. And how many more lines are we planning to order in total?
Rohit Mall
See if things go well, at least six to seven lines.
Aditya
Got it. Understood. And now sir, these two new capacities in Sanand and Katapur which we have commissioned. So at current utilization are we breaking even on these new capacities or we are still making losses.
Rohit Mall
At Sanand right now. No. Yeah, yeah, please.
Shyam Sundar Agrawal
Yeah, yeah. This is, that is the target. You know basically this is what we have just started. Definitely we are making money in you know the SU facility in Kolkata. But at Sanand. Yeah, we are trying to, you know, not immediately but we are trying to break even very soon.
Aditya
So if you could just reiterate, you know the revenue potential which Malcolm can do from now existing Capex and the new Capex in Sanand and for utilization.
Shyam Sundar Agrawal
So in Sanand we are targeting 104 crore revenue with you know, existing, you know and immediate plant capex.
Aditya
Hello.
Shyam Sundar Agrawal
Hello.
Rishabh Shah
Yes sir, you’re.
Shyam Sundar Agrawal
Hello. So
Aditya
What did you. Yes, how much did you mention? Sir?
Shyam Sundar Agrawal
So for Sanand we are targeting 100 crore revenue with the all the capacities which we have planned. Like as always mentioned, six to seven machines should be there. Then we should be reaching this, you know, target turnover.
Rohit Mall
And also mind you in Sanand it’s like gloves is one. We are doing other products like helmets and other products as well.
Aditya
Yeah. So I. So I believe we were also looking for a phase tool. The 100 crores was from phase one.
Shyam Sundar Agrawal
Yes, yes, yes. Phase one only under the the existing capacity only we need to put up more machinery. As age of now we have two dipping lines only we are targeting six lines. And then the turnover we are projecting is not only from these, you know, synthetic gloves. There would be some other range of like helmet and some knitted gloves. So they are all together we target under crore turnover at full capacity.
Aditya
And sir, was there any impact of new labor code in our financials?
Shyam Sundar Agrawal
No, no, no, no. We are almost compliant here. So not nothing and anything. If a small impact we will account for only in fourth quarter but hardly anything we have reviewed and it is almost we are fully compliant there.
Aditya
Got it sir. So thanks for answering my questions.
Operator
Thank you. The next question comes from the line of Umesh marker from Sushil Financial Services. Please go ahead.
Rishabh Shah
Yes, thank you for the opportunity. We would like to understand the you are looking into, you are looking into Middle East Latam countries. So just want to understand where are we in this terms like in terms of penetration levels. Have we just begin where where we are and how much we would like to increase our presence in these areas.
Rohit Mall
So as far as Latam is concerned we have been operating in that market for almost more than 10 years now. So we have decent customer base in Chile, Peru, Colombia and we have been also marketing in Argentinian market. However, when we talk about Middle east, that’s something that we started putting efforts into in the last three to four years, let’s say. And our belief is we just you know touched the tip of the iceberg and there’s a lot to explore in those markets specifically in UAE, Saudi, Qatar, Oman, Kuwait, etc.
Rishabh Shah
Right. So how has been the response in those regions? So are you seeing demand which is which is equal to the domestic market or there is some competition in those areas from other regions as well?
Rohit Mall
No, there’s definitely competition in all markets even including Middle east or Latin American market from everywhere in the world. China, India and other Southeast Asian countries also and some local manufacturers as well. But the market is in Middle East? Yeah, the market is pretty big especially because of their oil and gas and infrastructure construction projects. So it’s. I would say it’s a pretty big market and in some products very high paying market as well. Latin America, I wouldn’t necessarily say that it’s as big as the Indian market.
But yeah, definitely the, you know it’s, it’s a more stable, more mature market and then the Indian market I would say.
Rishabh Shah
Okay. And in terms of payment means other receiver days. How has been in these areas, especially in Middle east have we faced any issues on that front?
Rohit Mall
So currently whatever we do, we do it on cash basis or advanced basis.
Rishabh Shah
Okay, that’s fine. And last question sir, if you can give us a breakup of commodities as well as the value added products and going forward as you mentioned that the value added products would increase so the pricing will also go up from here on, I believe.
Rohit Mall
Yeah, that’s what the target is. That’s what we, what we aim to do. But depends on the market situation. Depends on which market we want to enter, which is a new market, which is an established market. So it depends on those things also. But the idea is to get more and more into value added products.
Rishabh Shah
Yeah, right. So if I can get the current breakup of commodities versus evaluated products, that would be great.
Shyam Sundar Agrawal
It should be Rohit. It should be. The range of commodity would be in the range of 40. And the value it would be 60 around here.
Rishabh Shah
Okay, thank you very much and wish. You all the best.
Rohit Mall
Thank
Operator
You. Ladies and gentlemen. That was the last question for today. And now hand the conference over to management for closing comments. Thank you. And over to you, sir.
Rohit Mall
Thank you all for participating in the earnings conference call. I hope we were able to answer your questions satisfactorily and at the same time offer insights into our business. If you have any further questions or would like to know more about the company, please feel free to reach out to our investor relations manager at Valorum Advisor. Thank you and wishing you all a great day ahead.
Operator
Thank you. On behalf of Philip Capital India limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.