Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Manaksia Coated Metals & Industries Ltd (NSE: MANAKCOAT) Q4 2026 Earnings Call dated May. 07, 2026
Corporate Participants:
Sana Kapoor — Investor Relations
Karan Agrawal — Whole Time Director
Tushar Agrawal — Senior Vice President
Analysts:
Unidentified Participant
Nishita — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4FY26 earnings conference call for Manaksia Coated Metals and Industries Limited hosted by Go India Advisors. 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, 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 Ms. Sana Kapoor from Go India Advisors. Thank you. And over to you, Ma’. Am.
Sana Kapoor — Investor Relations
Thanks Darwin. Good afternoon everyone and welcome to Manaxia Coated Metals and Industries Limited earnings caller to discuss Q4 and FY26 financial performance. Today we are joined by Mr. Karan Agrawal, Whole Time Director, Mr. Mahendra Bagh, Chief Financial Officer and Mr. Tushar Agrawal, Senior Vice President. We must remind you that the discussion on today’s call may include certain forward looking statements and must be therefore viewed in conjunction with the risks that the company faces. May I now request Mr.
Karan Agarwal to take us through the company’s business outlook and financial highlights. Subsequent to which we will open the floor for Q and A. Thank you. And over to you, sir.
Karan Agrawal — Whole Time Director
Thank you, Sana. Good afternoon everyone. A very warm welcome to the Q4 and FY26 earnings call of Manaksia Coated Metals and Industries Limited. I am Karan Agrawal, full time Director of the company and I’m delighted to host you today. Our valued analysts, investors and stakeholders who have taken the time to join us today. We will walk you through our financial and operational performance for the quarter ended 31st March 2026 as well as for the full financial year FY26. Following my opening remarks, we will open the floor for a Q and A session.
Our financial results and highlights are available on our website www.manaksiacourtmetals.com as well as on the stock exchange portals. Before we dive into the numbers, I want to take a moment to set the context for the year that was FY26. It was in many respects a year defined by two parallel stories. One of remarkable strategic progress and financial strength and one of unprecedented external disruptions. That tested our operational resilience. The macro environment, particularly the escalating conflict in the Middle east, created significant headwinds across global supply chains, logistics, energy markets and commodity costs.
Freight rates surged by nearly 100% quarter on quarter. Industrial fuels such as propane and LPG witnessed an unprecedented shortage with prices spiking by almost 200% within a fortnight. Key raw materials and consumables, many of which are petrochemical byproducts, saw cost escalations in the range of 50 to 75%. Metal prices including aluminium and zinc climbed to five year highs. Supply of critical imports was severely disrupted delaying the execution of high value export orders. These are not excuses, they are the reality of global operating environment that every participant in our industry had to navigate.
And I am pleased to say that our company navigated these headwinds with discipline, agility and a clear strategic focus. Our full year’s numbers bear the testimony to that. Let me begin with the headline financial year 2026 has been our strongest year on record across virtually every financial and operating metric. Revenue for the full year on a consolidated basis grew by 13.5% year on year crossing rupees 896 crore. This marks a significant milestone as we move towards the rupees 1000 crore revenue.
Landmark price realization per tonne improved meaningfully to Rs. 82,193 per tonne in FY26 compared to rupees 73,622 per tonne in FY25 reflecting our deliberate shift towards higher value added products and better product mix. Our EBITDA for the full year stood at rupees 92.21 crore, a strong increase of 49.21% year on year. EBITDA margin for the year expanded by 246 basis points to 10.29% reflecting our improved operational efficiency and product premiumization. EBITDA per ton touched rupees 8,838 per ton growing 43.54% year on year, a clear measure of value we are adding per unit of production at the bottom line.
Our profit after tax for FY26 grew by an exceptional 164% year on year touching rupees 40.69 crore at margin expanded by 259 basis points to 4.54% for the full year. Our earnings per share registered an increase of 211% year on year touching rupees 4.32 per share for FY26. Equally significant is the improvement in our balance sheet strength. Our interest coverage ratio touched 2.85x compared to 1.63x in FY25. The current ratio reached an all time high of 1.75x improving from 1.35x. Our debt equity ratio improved substantially to 1.13 times from a level of 1.81 in FY25.
Most importantly, we achieved our targeted net debt to ebitda ratio of 1.01x in FY26 a remarkable improvement from 1.93x in FY25. This demonstrates that we are not just growing profitably, we are growing with financial discipline and balance sheet rigor. I am pleased to share that our external credit rating was upgraded in FY26. Long term rating was upgraded to A from A and short term rating was upgraded to a 1 from a 2. This upgrade is a recognition by independent credit rating agencies of our strengthened financial position and improved debt management practices.
Turning to Our quarterly performance, Q4 of FY26 was a quarter of strong sequential recovery even as the Middle east crisis created headwinds that temporarily weighed on margins. This quarter’s performance reflects the stabilization phase following the successful commissioning of the Aluzin technology upgrade. While steady production and quality have been achieved, the capacity utilization is being ramped up in a phased and incremental manner. Revenue for Q4FY26 stood at Rupees 228.74 crore registering a robust 20.45% growth quarter on quarter and a 9% growth year on year.
EBITDA for Q4FY26 stood at rupees 15.64 crore with an EBITDA margin of 6.84%. The year on year softness in Q4 margin was entirely attributable to the extraordinary cost escalation in energy and raw materials triggered by the Middle east conflict which compressed margins in the quarter. We want to be transparent. This was a one time shock that materially elevated our input costs and it is not reflective of the underlying earnings power of the business. The important fact that should be shared with you is that we are successfully able to pass through the entire impact of the incremental costs to our customers and we have strong visibility of EBITDA earnings for the quarters yet to unfold.
PAT for Q4FY26 was Rupees 5.37 crore registering a growth of 6.73% year on year with a PAT margin of 2.35%. I would now like to invite Mr. Tushar Agrawal Senior Vice President in the company to share insights about operational highlights for the full year of FY26 along with important updates on projects and investments in pipeline and future outlook.
Tushar Agrawal — Senior Vice President
Thank
Karan Agrawal — Whole Time Director
You very much. Over to you Tushas.
Tushar Agrawal — Senior Vice President
Good afternoon everyone.
Karan Agrawal — Whole Time Director
From an operational standpoint, FY26 has been a year of meaningful progress across all dimensions. Production of galvanized and aluminum coated steel reached 1 lakh 33 thousand and 36 metric tons for the full year, registering a growth of 2.21% year on year. Production of pre painted steel grew by an impressive 12.78% year on year to 83,594 metric tonnes for FY26. Perhaps the most important operational shift in FY26 is the sharp increase in in value added product mix. Pre painted Steel, our highest value product now constitutes 80% of total quantity sold in FY26 up from 74% in FY25.
This is a deliberate and consistent strategy of premiumization and we are pleased with this trajectory. On the exports front, FY26 was a watershed year. Export tonnage touched an all time high of 66,172 metric tons growing 110% year on year compared to 31,453 metric tonnes in FY25. The share of exports as a percentage of total revenue grew 68.21% to share of exports as a percentage of total revenue grew to 68.21% in FY26 from 39.21% in FY25, a growth of 97% year on year. This demonstrates both our global market acceptance and the competitive of our product quality.
I’d like to take you through some of our strategic projects in FY26. The year has been of significant strategic investments that will shape our growth trajectory for the years ahead. Let me briefly update you on each. The first is the ALU Zinc Coating Technology Upgrade, our most transformative project of the year. The aluminium zinc coating line was commissioned at the end of December 25. MCMIL has emerged as one of the few producers in India with 100% aluminium zinc coating capacity. This upgrade increases our capacity from one 32,000 metric ton to one 80,000 metric tons, a 36% increase and positions us as a premium coated steel segment offering superior corrosion resistance, enhanced surface finish and longer product life.
Customer acceptance has been excellent. All long term customers have appreciated the quality and pledged long Strong orders for H1FY27. Importantly, we are able to pass through 100% of the incremental cost to these customers and are seeing strong EBITDA per metric turn visibility on all new Alu Zinc sales. The second color coating line which is the phase two expansion. We’ve placed an order with Mass Roll Pro limited for our second color coding line which is in advanced stages of erection and commissioning with a targeted completion date of July 26th.
This line will add 150,000 metric tons of color coding capacity taking our total capacity from 86,000 tons to two 36,000 tons of 174% increase. This will significantly expand our ability to serve a larger and more diverse customer base and drive higher contribution margins. The 7 megawatt solar power plant in line with our commitment to green energy and ESG principles, we have issued a purchase order to Prozyl Green energy for a 7 megawatt captive solar power project in Gujarat. This project is also targeted for commissioning by July 26.
The project will offset 50 to 55% of grid power dependency, significantly reducing our per unit power cost and lowering our carbon footprint, all of which contribute to long term competitiveness and sustainability. On our technology and customer management front, we have finalized Salesforce as our preferred CRM platform. This will give us 360 degree customer visibility, strengthen our sales pipeline management, improve demand forecasting and build stronger data backed customer relationships as we scale our business.
The outlook for H1FY27 and beyond Looking ahead, we enter FY27 with strong operational momentum, improved financial health and significant capacity additions coming on stream. The ramp up of our Alu Zinc line, the upcoming commissioning of our second color coding line and the solar power plant are all expected to meaningfully contribute to revenue margins and profitability from H1FY27 onwards. Customer feedback on our new Aluzinc and pre painted Alu Zinc products has been very encouraging. Order visibility for H1FY27 is strong from both domestic and export markets.
We expect the demand environment to remain robust and with the normalization of energy and raw material costs, assuming no further escalation in global conflicts, our margin recovery in H1 27 should be meaningful. We remain committed to our stated strategy of premiumization, export growth, capacity expansion and balance sheet deleveraging. Every action we have taken in FY26 from alluzinc upgrade to credit rating improvement to reduction in net debt to EBITDA is in service of building a stronger, more resilient and more profitable MCM imaging.
In closing, I want to express my sincere gratitude to our Board of Directors for their guidance and governance. Our employees and teams at every level of their hard work and commitment, our customers for their trust in mcmil products and partnerships and our investors and analysts for your continued confidence and support. FY26 was a year we can be proud of. Not just for the numbers, but for what they represent. A company executing on its strategy, strengthening its fundamentals and investing in its future even in the face of significant global adversity.
We look forward to sharing even stronger results in the quarters ahead. With that, let me hand over to the moderator to open the floor for 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 their touchtone telephone. If you wish to remove yourself from the question queue you may press Star and two participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Once again, that’s Star and one to ask a question. Our first question comes from the line of Jayram Bidawat from yes, securities.
Please go ahead.
Karan Agrawal
Hello. Firstly
Operator
Congratulations for a great set of numbers and really liked your detailed presentation. Couple of questions from my end. Firstly can you please help me with what is the total capex outlier planned till FY28 and how will it be funded?
Karan Agrawal
Hi, good afternoon Mr. Jayaram. Thank you for your question. Well I think the project wise capital outlay that we have for the current projects in pipeline are for the second color coating line which is going to commission in Q2 of FY27 is roughly about 65 crore rupees and the solar captive power plant which is also going to Commission in the Q2 of FY27. The capital outlay is Rupees 30 crore and both these projects have been funded by a healthy mix of debt and equity where the proceeds from the last fundraise have been used for the contribution of equity and you know debt has been taken from PSU banks in India.
Operator
Okay. The company is aggressively expanding capacity 2 to 3x in across segments. So what gives the confidence that demand will keep pace especially in export markets where the 80% of the order book is concentrated.
Karan Agrawal
So I think what gives us confidence is that we have achieved 80% export rate while climbing from lows of 2025% which was three years four years back. So every year we have been seeing an incremental growth in our order book, in our export Numbers, in our Q1Q performance where we have reached from a level of 20 25% export revenue to today level where we are touching 70% export revenue. And this has been a very, you know, consistent curve of growth. It has not been erratic, it has not been seasonal, it has not been one time.
And this gives us the confidence that the way we are trying to penetrate the market and build long term relations with OEMs in the overseas markets with long term MOUs, obviously we are satisfying their commercial and quality needs and service needs. It’s giving us the confidence that we can maintain growth of the export business. The rate of growth will definitely not be the same where from FY25 to FY26 we have doubled our exports. We have grown at 100% year on year. The growth rate will definitely slow down because it’s not practical to expect 100% growth each year.
But I can assure you that we are quite confident of growth in the units of the revenue that export contributes as well as the tonnage of exports that we are achieving.
Operator
Okay, and like with the shift from galvanized to alluzinc, what is the sustainable EBITDA upside and is it driven by pricing power or cost efficiency?
Karan Agrawal
I think the sustainable level of EBITDA that Alu Zinc can contribute to our business on a long term basis would definitely be superior to what we have been earning while selling galvanized, while producing and selling galvanized and pre printed galvanized. Now the question is how much of a premium. Now that can be answered by many aspects that are fewer within our control and few are not in our control. The ones that are in our control is our costs, is our efficiency, is our yield, is our capacity utilization, and the ones that are not in our control are external factors like geopolitical environment, demand, competition, etc.
So I think it will be wrong for me to give a round figure or a number to you. I can only tell you that the product per se which is Alu zinc and pre painted Alu Zinc is definitely a product that is a more profitable product both in terms of costs and price realization. The extent of premium achieved or EBITDA per ton margin achieved is a whole contribution of many factors, internal and external.
Operator
Okay, okay. And last question from my end, like what is the progress on setting up the CRM complex and will the capacity make you 100% captive for HRC?
Karan Agrawal
Okay, so we do have ambitions to do backward integration and set up a cold rolling complex which basically reduces our dependability on the current raw material which is cold rolled steel. It will definitely open our access to many, many more flexible options of buying raw material from domestic and international sources and it will improve the efficiency of our inventory management and raw material flexibility. Now we have not yet fixed any date to this project. We do want to do this within FY28.
That is our, you know, that is a blueprint that we have decided upon. We are yet to work on the nitty gritties of financial tie up, supplier selection and the, you know, all the other needs of the project. So I can say that we definitely have the ambition to do it and to do it within FY28. And I think as soon as we complete the projects on hand, which is the second color coating line, the solar power plant, this would be the next on our list to embark upon.
Operator
Okay. Okay. Thank you so much for a detailed answer. Thank you. All the best.
Karan Agrawal
Thank you.
Operator
Thank you. Ladies and gentlemen, to ask a question you may press Star and one, that is Star and one to ask a question. Our next question comes on the line of Jatindamania from Swan Investments. Please go ahead.
Tushar Agrawal
Good afternoon sir. Thank you for the opportunity. So just wanted to understand your breakup in terms of your capex that we are doing. So once we complete our entire CAPEX by FY28, what sorts of potential revenue one can expect from the facility that we’ll be having at the peak utilization?
Karan Agrawal
Good afternoon. Thank you for your question. So if you’re talking about FY28, I’m assuming that you are asking after the, you know, the anticipated projects of cold rolling mill and the second Aluzin Klein,
Tushar Agrawal
Right?
Karan Agrawal
Am I right?
Tushar Agrawal
Right. Right.
Karan Agrawal
Yes. So if these projects are actually started and completed within FY28 we will have installed capacity of 3 60,000 ton for cold rolling followed by 3 60,000 ton of Alu zinc followed by 2 36,000 tonnes of pre painted Alu zinc. So we have to assume a certain capacity utilization. It cannot be at 100% capacity utilization. So assuming that a 3 lakh 60,000 ton unit is producing is having a capacity utilization of roughly about let’s say 80, 85% which is normal in our industry. Which means production and sale of between 3 to 3.2 lakh ton which has the potential to generate a revenue of anywhere in the range of 2,500 to 2,700 crore.
Yes,
Tushar Agrawal
Yes, indicated. Now probably we will be starting our green focusing on green power and a 7 megawatt of facilities likely to come in FY27. So what sorts of incremental benefit one can estimate from the power saving for the full year?
Karan Agrawal
The captive solar power plant of 7 megawatt that we are investing in will give us access to renewable power which will replace roughly about 50 to 55% of our energy dependency on the grid. In terms of monetary savings, it has the potential to basically generate savings of between seven to seven and a half crore rupees per annum just in terms of power cost.
Tushar Agrawal
So that will be start reflecting from Q2 of financial year 27. Right.
Karan Agrawal
The project is currently in a phase where we are expecting it to get commissioned within Q2. Now it all depends which period of Q2 it actually starts giving the contribution. Whether it’s the first month, second month or third month of Q2. That is yet to be, you know, really, I cannot tell you the exact day and date, but at least partial impact will be felt in Q2 and full impact will be felt in Q3. For sure.
Tushar Agrawal
Okay, for
Karan Agrawal
Sure.
Tushar Agrawal
Full 7 crores benefit shall get reflected in FY28 and probably FY 2010. We’ll see a part benefit of that.
Karan Agrawal
Yes, we can see a half of the benefit in FY27. Yes.
Tushar Agrawal
And with the completion of all the project and the revenue of 2500 crores that you indicated, what sorts of ROC you guys are work, I mean, what types of ROC one should assume on the company level and if you can break up your IRR or ROC breaker for the CRL and the new coding line, that will be great.
Karan Agrawal
That will be the ROCE that you are asking for. FY28 is based on a lot of assumptions and projections which are all hypothetical. So I can only tell you that we are aspiring to do projects and invest in projects that are having high ROCE rates which are, you know, definitely above 20%. So I mean for me to tell you what will be the ROCE of the project is, you know, very difficult at this point of time because we have still not put in the money for the project. Right. We are just. These are all Excel sheet workings at the moment and based on projections and numbers that are hypothetical.
Therefore, I can tell you that any project that the company invests in will definitely be under an assumed targeted ROCE of upwards of 20%.
Tushar Agrawal
Okay, Thank you, sir. That’s all from my side.
Karan Agrawal
Thank you. Thank you, sir.
Operator
Thank you. Participants who wish to ask questions may press Star and one. You may press Star and one to ask a question. Our next question comes from the line of Dipesh Tanchetti with many of finance. Please go ahead. Hi. Am I audible?
Karan Agrawal
Yes.
Operator
Yeah. Do you expect this elevated cost environment, the raw material to persist for Q1 and FY27 as well as for the Going quarters ahead. If yes, then can you quantify the likely impact on margins and EBITDA per ton?
Karan Agrawal
Yeah, good question Dipeshi. See, as we stand today, it is already the second month of the quarter that you are asking the question for and the situation with the geopolitical environment and the conflict is known to all. The cost of crude oil, the situation of the rupee against the dollar is again known to all. And the, you know, the costs of all petroleum by products, you know, metals like aluminium and zinc remain at an elevated level. Therefore, I can tell you that the cost structure of inputs, of raw materials, of consumables, etc.
As we speak today remain consistent at a high level which we have experienced since the start of the conflict. However, the good part is that in the last month or so, let’s say since the beginning of April, all the new orders and the new contracts that the company has been entering into with long term customers, both domestic and international, we have been able to pass through the entire impact of the incremental costs, whether it’s on the energy side, raw material side, consumable side, freight side, everything to the customers in the new pricing and the new costing that we’re doing.
So the impact on the margins will not be negative. Rather, I would say that we have kept a good buffer in our costings and in our calculations because the situation is so dynamic and unpredictable that we feel that our margin situation should be drastically better than what we experienced in Q4 of FY26.
Operator
Right. And with net debt to equity at 1.12, how much leverage increase is expected during the capex cycle? And do you have any threshold as to how much debt to equity ratio want to maintain or you want to go at max?
Karan Agrawal
Well, as of now, due to the equity fundraise that we did last year, as well as the earnings that the company has enjoyed in FY26, we have been able to take impact of both these infusions and earnings into our debt equity ratio for a favorable outcome and we have achieved 1.13 times. I feel that even in the situation of having capex incoming in the upcoming quarters and upcoming years, we definitely want to be conservative on the leverage front and I cannot tell you what will the ratio be going forward, but I can definitely tell you that the company does not have any plans to go aggressive for leverage and we will definitely not breach a level of 2x.
I mean that is also extremely high in my view. But we will definitely not breach a level of 2x and we’ll strive to actually be anywhere in the range of between 1 to 1.5x.
Operator
Okay, just want to understand, you know, how quickly are you able to pass on the cost pressures as well as any cost benefits. Now let’s say if the crude comes down and things, you know, become normal as they work, how fast will the cost reductions will take place and you know, what will be our. Will that affect our EBITDA margins in the positive way since there will be a lag in passing on the cost?
Karan Agrawal
Absolutely. I think, you know, you have rightly said that. Just like how we face a shock when the conflict began, where we had to absorb a shock of increased costs in Q4 after the war started, you know, in late February, in the same manner, in case we have to assume a situation where all the costs of energy, freights, everything starts plummeting and going down. We will definitely have a window of opportunity where we will be experiencing a lower cost environment in terms of our production and shipments.
But we will be enjoying prices that we have concluded beforehand, which are of the higher cost kind of costing structure. But I think overall these are very short lived periods and windows, these are not consistent. We cannot enjoy arbitrage period beyond a month because that is not sustainable, number one. And number two, it is not fair for the seller or the buyer. So I think these kind of impacts in our business are short lived. I would say anywhere between one month to two months is the maximum period where one would want to.
One would need to absorb any shock or, you know, enjoy the benefits of a lower cost environment. It would become equilibrium. Post that
Operator
Max 1/4 it will get affected. That is what I can. I mean, is it safe to assume?
Karan Agrawal
I think that would be pretty much a good way to summarize it. Yes.
Operator
Yeah. And what is the company having any particular target of Roe? Because we maintain that around 14% which is decent. But if you see the historic ROE has been always lower. So are we able to be able to maintain this ROE going forward also?
Karan Agrawal
So I think when we did raise external capital last year and we did all these investments in the aluzine technology upgrade, the second color coating line, the solar power plant, etc. These were all basically to elevate the ROEs and ROCEs which were at a lower kind of level, which we were not happy with. And I think now that the fundraise is actually being put to use and the revenue generation has started from the start of this calendar year, or let’s say the true realization or the incremental impact on ROE and ROCE will be felt in FY27 when all these investments are going to start churning revenue and giving contributions to the EBITDA earnings.
And as far as the percentage is concerned, you are seeing it at 14% today. I think with the contributions of the upcoming projects of the second color coating line of the solar power plant and the better capacity utilization of the Aluzin Klein, I think in my view things should rather improve further.
Operator
Okay. And we don’t have any further fundraising plans as of now. Right. Since you’re not doing any capex.
Karan Agrawal
The capex that we intend to do after these projects that are getting commissioned in Q2 of FY27, like I said before to one of the participants, is that the backward integration project of the cold rolling mill would be the next project that we would like to embark upon. However, it is too early to comment whether we will be, you know, wanting to raise any fund from the market or not for this project.
Operator
Right. Thank you so much.
Karan Agrawal
Thank you.
Operator
Thank you. Ladies and gentlemen, to ask a question, you may press Star and one, that is Star and one to join the question queue. Our next question comes from the line of Yashpur Bhey with Inved Research. Please go ahead. Sir, you are not clearly audible. Your volume is very low. If you could please change the mode on your device.
Karan Agrawal
Hello, Is it audible right now?
Operator
Yes, this is much better. So please go ahead.
Karan Agrawal
I just wanted to ask like we have a vision. Sorry
Operator
To interrupt Yash, but your line is very bad in clarity. Hello. Yes,
Unidentified Participant
Go ahead.
Operator
Yeah, so I just wanted to ask like what is the roadmap to achieve the vision of FY 29 of 3x growth and what are the key drivers behind that?
Karan Agrawal
The vision. Thank you for your question. Yes, the vision for our growth up to FY29, having, you know, the ambition to become 3x in revenue and profitability are mainly driven by our ambitions to increase capacity to 0.36 million ton and having backward integration of pole rolling as well as horizontal capacity expansion in the alum zinc production capacity. So I think if we are able to successfully achieve all these ambitions, we will achieve our vision of having a 3x PNL and balance sheet by FY29.
Operator
And sir, what do you think could be the key challenges in achieving this?
Karan Agrawal
Challenges in achieving this vision? Well, I mean again this would be a very theoretical answer, but anything to do with government policies, external geopolitical conditions, GDP of the country, demand of the country, public sector and private sector projects in the country, all of these would define how much investment is being done for the growth of the country in critical projects in infrastructure building and our ability to fund the projects on time at lower cost. I think all of these factors would be quite crucial to determine the success of these investments.
Operator
Okay, and sir, my last question would be what would be the sustainable EBITDA margin for the medium term and what could be the peak EBITDA margins we can expect going forward? All your projects are live
Karan Agrawal
At the moment. For FY26, we have achieved an EBITDA margin of double digits. We have crossed 10% in terms of our EBITDA margins. And for the foreseeable future, with the new product, with the upgraded technology, with the ramp up of exports, we feel that an EBITDA margin of anywhere between 10 to 12% is possible and sustainable.
Operator
Okay,
Tushar Agrawal
Thank you.
Karan Agrawal
Thank you.
Operator
Thank you. Participants wish to ask questions. You may press Star and one on your touchstone telephones. That is a Star and one to ask a question. Ladies and gentlemen, our next question comes from the line of J. Mehta with Navkar Capital. Please go ahead.
Unidentified Participant
Hello. Thank you for the opportunity. I just wanted to congratulate on a great set of number despite, you know, recent macro changes in the global scenario. Sir, I wanted to ask about the losing client. I just want to understand whether any new export market is opening up for us since we are opening this value added product. Thank you.
Karan Agrawal
Thank you for your question. I think, yeah, it’s a very relevant question and this is something that we are working on every day. There are several markets in the world that have a preference for an Alu zinc product over a conventional galvanized product. I can tell you that in the Americas, which is North America, South America, Central America, Caribbean all, this entire region is having a very good dominance and preference of allusing product for their preferred as their preferred choice of product for roofing, construction, building material rather than conventional galvanized seal.
And we are working towards developing such markets. One of them, like I said, is the Americas region, North and south and central. And of course in our existing markets of Europe, Africa, Middle east also with the introduction of Aluzinc, we are able to approach, you know, more quality conscious customers who want higher value added product, better quality, higher consistency, better life, better performance. We are able to make inroads to these customers and you know, gradually increase our foothold and market share in such customers who are used to buying and using product rather than conventional galvanized product.
So definitely it is helping us in growing our footprint in the export markets.
Unidentified Participant
So since you mentioned the US market, so from the US market you will get higher revenue per ton for your products. So can you in the percentage term be able to tell, you know, how much extra it would be compared to your existing market?
Karan Agrawal
I think when I what I tried to tell you is the regions of the world which have a preference or a dominance for Alu Zinc. Our intention is not to immediately approach the US market for our exports. Currently we do not have any exposure to the US market and I think it has been a blessing for us that we did not have any exposure to US markets because of whatever happened after the Trump administration took over. Right now in the Americas region, the market that could be our likely destination that we want to work on would be South America, Central America region.
And it would definitely command slight premium over our existing markets that we’re exporting to because of the nature of Aluzinc and because you know, that particular region already is offering such kind of price levels.
Unidentified Participant
That’s great sir, thank you so much and all the best.
Karan Agrawal
My pleasure. Thank you.
Operator
Thank you. Participants, you may press Star and one to ask a question. That is Star and one to ask a question. Our next question is from the line of Disha from Sapphire. Please go ahead.
Nishita
Hello.
Operator
You are audible?
Nishita
Yes. Thank you so much for this. Yeah, thank you so much for this opportunity. So firstly on this pre painted steel capacity, this additional 1,050,000 metric tons that’ll be coming online by Q2. What will be the peak revenue from this at optimal utilization?
Karan Agrawal
Hi, thank you for your question. So the new color coding line which is coming of one 50,000 ton capacity, we feel that over and above the existing revenue that we are already generating with the installed capacities, assuming that, you know, it would take some time to stabilize the line and achieve a decent capacity utilization. We feel that in FY27 we can anticipate anywhere between, let’s say anywhere between 300 to 500 crore. In that range of incremental revenue from the new capacity being installed.
It’s a big range between 300 to 500 crore. That is because it’s difficult for me to predict the rate of increase in capacity utilization. It will be a gradual phenomenon
Nishita
And
Karan Agrawal
We will definitely aim to do our best.
Nishita
Right. And this, the new Aluzinc line that we have currently 1 lakh 80,000 that is installed, we can expect to reach 8085 sort of utilization. But in FR27, will that be a fair assumption?
Karan Agrawal
Absolutely, definitely within FY27 I cannot tell you at what point in FY27 because we are still in very early stages of the new line getting commissioned. It has just been three months. So I think usually such large and complex lines take a fair share of time to stabilize. And for the production team, the operations team, the quality team to get the confidence of ramping up the line speed, the production rate, etc. So I think you can. It’s safe to assume that the second half of the year would definitely see a much higher rate of capacity utilization as compared to the first half of the year.
Nishita
As you mentioned this 3 lakhs. You mentioned this 3 lakhs. 60,000. The total capacity will have a peak revenue for around 2500-2700cr, right?
Karan Agrawal
Yes. Hypothetically. Yes.
Nishita
Yeah. So if we take say 1100, 1200 from Alu Zinc and you mentioned 300, 500, so anywhere can we look at 300 to 600 revenues for FY27?
Karan Agrawal
I’m sorry, you were not very clear in the second part of your question.
Nishita
Yeah, so I mentioned you May. So around 1100 to 1200 cr from al using and 300 to 500 from the new color coding line. So can we do revenues of around 1500-1600 cr for FR27? Would that be a fair assessment?
Karan Agrawal
Look, like I said that the new color coating line would be the only capacity that would. That would give us the incremental revenue in FY27 along with the higher capacity utilization of the alluzing client. Now these two aspects combined. I have already answered your question. That one can expect an incremental revenue of anywhere between 300 to 500 crores over what we have done in FY26. I think you can do the math and potentially come to a conclusion on that. Yeah.
Nishita
All right. All right. Okay. Okay. That’s. That’s very clear. Okay, thank you so much. That’s it from my side.
Karan Agrawal
Thank you very much.
Operator
Thank you. Participants, you may press Star and one to ask a question. We have our next question from the line of Rushank Shah with Ramesh Wealth Private limited. Please go ahead. Prushank Shah, your line has been unmuted. You may proceed with your question. As there is no response from the current participant, we will proceed to the next question which will be from the line of Sameer Amida, an individual investor. Please go ahead.
Unidentified Participant
Hello. Good afternoon, sir. Am I audible?
Operator
You are audible, ma’. Am. You may proceed.
Unidentified Participant
Sir. I have few questions. First one is since for past two, three months we have been seeing this global tensions and increased freight costs and everything. So are our existing customers refraining from placing new orders or the pipeline is still robust.
Karan Agrawal
Thank you for your question. Despite the tensions and the uncertain environment in the global markets, we are quite proud to be in a situation where we have long term confidence of our customers, our long term customers. And we do enjoy a situation where our current order book is in the range of between 350 to 400 crores. And this is all from largely from export customers. So I think it would be wrong to assume that our customers are not inclined to place orders in the current situation. Rather, I would say that in order to build buffer and to tide over the uncertainty that the current situation has created, our long term customers are rather being cautious and ordering more in advance or potentially a little bit of a higher quantity to ensure that their bare minimum requirements are met in time and met adequately.
So I think that yes, there are benefits and upsides and downsides to the situation. We have already seen the downside with the elevated costs and the freight and energy situation. But now we have seen some of the benefits where we are able to enjoy a good order pipeline and at a healthy price realization.
Unidentified Participant
Okay, so that was helpful answer. Another question is how much premium does this, this new product Alu zinc enjoy as compared to the previous galvanized steel?
Karan Agrawal
The premium of Alu zinc over galvanized steel is basically dependent on multiple factors such as the demand situation in the market, such as the the specification of the product that you’re talking about, whether it’s a thinner gauge product, a thicker gauge product, the grammage of the coating versus the grammars of the coating in galvanized. But I think to broadly answer your question, as a layman, I would say it’s fair to assume that a premium of between three to five thousand rupees a ton is ballpark.
That one can say is a fair premium over galvanized steel.
Unidentified Participant
So this figure that you are mentioning, it is the price realization, right?
Karan Agrawal
Correct.
Unidentified Participant
Okay.
Karan Agrawal
The premium, the premium and the price realization.
Unidentified Participant
Okay. And answer my another question is I remember that in. In your previous calls you mentioned that that our existing customers also use this, this new product. So what do you think? Will our entire capacity would be used to cater our existing customers or we will have to find new customers?
Karan Agrawal
I think ma’, am, finding new customers and new markets is a constant exercise that we keep doing. It does not stop at any point of time. I think there has not been a single quarter in the last four or five years where we would have not added a new customer. So I think the fattest share of the business and the revenues comes from regular and long term customers which would be upwards of 70% but in the balance 25, 30% revenue, there is a churn of new customers being added and some customers not giving business.
So that is I think the nature of business and what we are happy about is that the lion’s share of revenue is coming from repeat customers and long term customers.
Unidentified Participant
No sir, actually I was asking regarding since we have transitioned to this new product, so that is why I was asking that our entire capacity, will that be used to serve the existing customers or because it is a new product now
Karan Agrawal
I understand your question. I think on that front I can tell you that most of our domestic and export customers that we had while we were producing galvanized and pre painted galvanized team, most of them were already having some exposure, some small, some large, to aliasing. Now we are fortunate that we were able to transition to aliasing very smoothly. And as on date we are already using upwards of 60%, 65% capacity utilization on the new aliasing line and most of it is going to existing customers.
So the need to add new customers would be only proportionate to the increase in capacity utilization that we are going to do in future. For which yes, we will definitely need to add new customers to sell that extra amount of tonnage that we are going to produce. And I do not see any challenge in achieving that kind of new customer growth or penetration in the export markets and domestic market. There is enough opportunity and market to cater to.
Unidentified Participant
Alright sir, thank you for the insightful answers and wish you all the best.
Karan Agrawal
My pleasure. Thank you.
Operator
Thank you. We have no further questions. Ladies and gentlemen, I would now like to hand the conference over to the management for closing comments. Over to you.
Karan Agrawal
Thank you very much to the analysts, to the investors and stakeholders who have joined the call and given their precious time to hear us out. I want to express my sincere gratitude to the board of directors, to our employees and the teams that are working very hard and giving all their commitment and energy to achieve organizational goals. I want to thank our customers for their trust in our products and I want to thank our investors and analysts for the continued confidence and support. We look forward to interacting with all of you regularly and also to welcome you in our next earnings call very soon.
Thank you very much.
Operator
Thank you on behalf of Go India Advisors. That concludes this conference. Thank you all for joining us. You may now disconnect your lines.