Mishra Dhatu Nigam Ltd (NSE: MIDHANI) Q1 2026 Earnings Call dated Aug. 18, 2025
Corporate Participants:
Unidentified Speaker
S. V. S. Narayana Murty — Chairman & Managing Director
Madhubala Kallur — Director (Finance)
Analysts:
Unidentified Participant
Mohit Lohia — Analyst
Sucrit Patil — Analyst
Henil Bagadia — Analyst
Abhishek Jain — Analyst
Venkatesh Subramanian — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1 FY26 earnings call of Maidani hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions once the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star and zero on your touchstone phones. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Mohit Nuhiyaf from ICICI Securities. Thank you. And over to you sir.
Mohit Lohia — Analyst
Hi Elric. Thank you and good afternoon everyone. Thank you for joining us today for quarter one FY26 earnings call of Milani. First of all I would like to thank management for providing us the opportunity. To host the call. From the management side we have Dr. SVS Narayan Murthy, Chairman and Managing Director. Mrs. Madhubala Kaluri, Director Finance. So without further delay I would now hand over the call to Dr. Murthy for the opening remarks. Thank you. And over to you sir.
S. V. S. Narayana Murty — Chairman & Managing Director
Thank you. Good afternoon to all the participants in the conference call. It’s my pleasure to welcome all of you to this investors conference call of Mishra Datu Nigam Limited. Present with me today for the conference call is Mrs. Madhubala Kaluri, Director of Finance and Mr. Babu, General Manager PS is incidentally DPM designate and Mr. Paul Anthony, Company Secretary. The detailed financial results for Q1 of FY2526 have already been disclosed and they are all available with you. However, I would like to take few minutes to highlight some of the key figures from the results that were achieved during Q1 of FY 2526.
To begin with, I am pleased to report that during the quarter ending 30 June 2025 Mehrani has achieved a turnover of 170.5 crores marking a growth of 4.31% compared to 163.45 crore recorded in the corresponding quarter of the previous year. Importantly, the value of production to date 1241.29 crore reflecting a healthy growth of 14.47% over 210.79 crore in Q1 of previous financial year. In terms of profitability, the EBITDA of the quarter stood at 41.28 crore, a growth of 32.86% over the previous year. 31.07 crore. The profit before tax reached 19 crore registering a growth of 112.05% over 8.96 crore.
In Q1 of the previous year, profit after tax was 12.8 crore reflecting a growth of 150.49% compared with 5.11 crore recorded in the same quarter last year. Additionally, our order book position remains robust at18.27 crore as on 1st July 2025. And this gives good visibility for FY 2526. To conclude, I reiterate that Mizani, we remain committed to supporting the strategic sectors of the nation while also enhancing shareholder value. I look forward to your questions and hope to addressing them and the queries you may have. So thank you with these few opening remarks. I welcome all of you to the further discussions.
Questions and Answers:
operator
Thank you, sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Amit Dixit from Goldman Sach. Please go ahead.
Unidentified Participant
Yeah, hi, good afternoon everyone and thanks for the opportunity. A few questions from my side, sir. The first one is regarding the utilization of your titanium term mill. So as I understand we send recently, I think couple of quarters back, we commissioned 500 ton per annum mill. So just wanted to understand the orders that you have currently and the current utilization of this mill. That is the first question.
S. V. S. Narayana Murty
Okay, so just to answer your question, we have orders for titanium. Yeah, we have order book value for 440 crores plus. So currently we are fully utilizing our facilities and we are ready to execute orders already in hand. And we are also expecting a few more orders from other customers.
Unidentified Participant
So this order book is executable over how much period?
S. V. S. Narayana Murty
It is about one and a half months. One and a half years. One and a half years.
Unidentified Participant
Got it, sir. Got it. The second question is on essentially the. If I look at. This is a. I mean a viable strategic question. So if you look at the government of India and just taking cues from the Prime Minister’s speech on Independence Day wherein we said that the domestic fighter jet should have domestic engines. So what kind of opportunity we see for Madhani in the, in this respect given the fact that we have already been developing few components for Cauvery and indigenizing the other components also for engine. If you can give a wider strategic framework that how we are collaborating for you know, maybe development of engine for Mark 2 and maybe for AMCA if anything has started.
So. Yeah, so that would be very helpful.
S. V. S. Narayana Murty
Okay, so thank you for this question. Actually, you know, any fighter jet program or any, in fact any aero engine program. Basically it uses three kinds of strategic materials. So it uses very high strength steels, some precipitate Northern Bull steels, very high, very ultra high strength steels in fact. And it uses extensively super alloys because the temperatures that go into during operation will be will demand the utilization of super alloys and of course titanium alloys because of its superior specific strength strength to density ratio. So keeping in view of these three things, these are the three main materials for Midani.
We are very strong in all these things. And as you mentioned in Cauvery engine program also Midani was closely associated with GTRE and we have developed a number of grades, successfully qualified, type tested and they have been used. Now coming to the future one, the question regarding amca, we are really expecting orders already. We are having good number of orders from HAL and we expect significant number of orders for this upcoming project also.
Unidentified Participant
Got it. The third question is essentially if I look at the margins, they have improved. I mean they were at one point in time they went all the way down to 40,0%. Now we are seeing a trajectory where margins are between 22, 22%. The only thing lagging is revenue growth which remains quite, you know, subdued in single digits I would say for this quarter. So just two key points here. One is that on revenue, what kind of growth can we expect this year? And MARGINS Is this 22 to 20 to 25% odd range sustainable?
S. V. S. Narayana Murty
Yeah. With respect to the margins we can expect like in Q1, if you look at it, EBITDA margin is 24%, 24.22%. So we are expecting that even for Q2, Q3 the whole year that the EBITDA margins will be at the Same range between 23 to 25. We can expect. That’s what we’re looking at it. And with respect to the revenue growth and all, yes, as is already mentioned, that we are having a good order book. And last year we have achieved 1074 crores turnover. And this year we are planning to achieve around 1300 crores in minimum.
But however we Have a target of 1500. We are aiming for 1500. But internally we are confident that we will definitely be crossing 1300 and we will be aiming at 1500 also.
Unidentified Participant
That’s great sir. Wonderful. Another question that I have and this is the last question from my side before I move back in the queue. So it is only on the order book itself. So if you can break this into various segments. You know how much it is from defense, how much it is, it is from railways etc that would be very helpful.
S. V. S. Narayana Murty
Okay. Percentage you you are looking for or anything will do.
Unidentified Participant
I mean if you provide percentage I can convert it to numbers. That’s fine.
S. V. S. Narayana Murty
Yeah. Out of 801827 is the order book. On that the arrow is around. Arrow is 761 crores. 761. Aero sector and army is also around 156. And the next is we have navel also we are having under 422. Around 420 crores like that. So presently we are having around 80% from defense only. That’s related to all Aero, army, naval, everything. Remaining 20% only now presently. Actually we already finalized the order with the space that may come maybe in a year, in a month or two. So then the space will go otherwise in the presently it is 80.
2080 is a defense related 20. Space, energy and other including exports.
Unidentified Participant
Thank you for very patiently answering my question. I will get back into queue. Thank you and all the best.
S. V. S. Narayana Murty
Thank you.
operator
Thank you. The next question comes from Sucrit Patil with Eyesight Fin Trade Private limited. Please go ahead.
Sucrit Patil
Good afternoon to the Midani team. I have two questions. First for Mr. Murthy and the second is for Mr. Madhubala. So good afternoon to Mr. Murthy. So my question is as Madani strengthens its role in strategic sectors like defense and aerospace how are you planning the evolution of your product product portfolio Especially in terms of proprietary alloys, addictive additive manufacturing and export grade certifications. Is there any plan of action to. Transition from project based execution to a platform led innovation that could position the company as a global supplier of these critical materials? Yes sir. Thank you.
S. V. S. Narayana Murty
Okay, so thank you Mr. Pateri. So first of all your first question is. See we are a company with maybe 52 years of existence and more than 40 years of production. And our core strength is our new alloy development. Basically we have in our portfolio about 500 types of allies which have been exclusively designed for strategic sectors like defense, space and nuclear. Out of which about 100 grades are exclusively for aeronautical grade that is used in aircraft and regarding proprietary. Yes, Midani developed many grades and we have number of proprietary grades either coming from TOTS or internally developed.
So our core strength is ally development. With respect to your LD manufacturing question. Yes, we have idea of entering it. In fact, we wanted to go for powder manufacturing. So already we are in the process of establishing powder manufacturing facility. Because AME is coming up in a big way and we expect some of the powders. Many of the powders are imported strategical life powders. Some powders are available, but still country imports large number large quantities of powder specific because AM within the country is also growing up significantly. So visualizing this about a year or so back.
We have already we have put orders for some of the equipment. And soon we will be establishing facility for manufacture of strategic powder. That is with respect to AM and export grades. Large number of our products are getting exported to more than 20 countries. We export. And your question on project based to platform based. See currently majority of the products we our customers are our strategic departments of space, Defense and nuclear. And they depending on the project approvals they give us order and platform based. Okay. Depends on their their priorities. Okay. So we are ready to work on any mode.
We are ready to take up any kind of challenging work. So we are looking forward whenever there is a new platform that is going to be introduced or I mean any new project that get approval. We are ready to work with the stakeholders and develop new grades or existing grades. We are ready to supply. So Midani is fully prepared and our core strength will be utilized in satisfying the needs of all our customers.
Sucrit Patil
Okay, great. Thank you very much. My second question is to Mrs. Is the ma’. Am.
S. V. S. Narayana Murty
Yeah, please go ahead. She is here. Yeah.
Sucrit Patil
Yeah. Okay. So I just want to understand from a finance point of view, how do you internally internally prioritized capital between capacity, capacity expansion, R D and certification led market access. Is there any framework that balances near term execution with long term global competitiveness? I just want to understand your point. Of view in this.
Madhubala Kallur
The question is relating to how to differentiate between CAPEX long term and short term. We have plans for day to day things. We are going with our internal resources in case of long term relating to company goals. Also we have major projects which we are detailed analysis and based on the market potential and demand for the products. We are point head with after thorough review of projects.
Sucrit Patil
Okay. Okay, fine. Thank you very much for your guidance.
operator
Thank you. The next question comes from Deepen Wakil from Philip Capital. Please go ahead.
Unidentified Participant
Thank you for the opportunity, sir. So on looking at your order book. So we are seeing that we have a current order book of cluster on 1800 crores and this year we are targeting some 1300 crores. So which implies that majority of our order book would be depleted in this year. So can you give us some thoughts in terms of what are the new orders expected in this year specifically from the domestic side and also if you can throw some light on the defense, sorry, demand scenario from on the international front Also since we are exporting to more than 20 countries, so what kind of opportunities are we seeing from the export region as well? That is my first question.
S. V. S. Narayana Murty
Yeah, thank you. Thank you very much. The expected order, what is the order in hand? 1827 crore. We are expecting in Q2 orders worth of 701 crores already where we are under different stages of negotiations and all. So we are expecting in Q2 about 700 crores of order.
Unidentified Participant
Can you throw some light on the demand scenario, domestic as well as export as to what are the opportunities that we are seeing and because almost every countries are now increasing the defense spending. So what kind of opportunities that we metani also plans to target and what kind of inquiries that they are also witnessing?
S. V. S. Narayana Murty
Yeah, there are significant number of orders in pipeline, particularly aerospace, space, energy, missiles, naval export. I mean from every sector we are having good number of orders, particularly from space we are expecting a significant order of high value aero and missile sector. Also we are expecting significant order in this quarter. So hopefully they will be coming. And export scenario also is very good because of the geopolitical seasons elsewhere people are approaching. So hopefully we’ll be able to get some good orders for exports also.
Unidentified Participant
So out of the 1800 crores, what would be the quantum of export orders?
S. V. S. Narayana Murty
Exports are for 35 crore out of 1800 crore.
Unidentified Participant
Got it. And what would be the key geographies for your export clientele?
S. V. S. Narayana Murty
Okay, there are around 22 countries. Are there European origin mostly.
Unidentified Participant
Got it sir, thank you so much for answering my questions and all the best.
S. V. S. Narayana Murty
Thank you.
operator
Thank you. The next question comes from Hennel Bagadia from Equicorp. Please go ahead.
Henil Bagadia
Thank you for the opportunity, sir. So I hope I’m audible, audible. I have one question, so I’ve got a few questions. So the first is related to the white plate mill. So the white plate mill, what is the current utilization and the fixed overheads? So I’m going forward as you said that as you see the ramp up in utilization, you’ll also see better margins. So I mean right now we are riding for 20 to 25% EBITDA margins and I think after it reaches optimum it should be between 25 to 30%. So two part there. So one, what are the kind of white plate are we concentrating on? Is it more towards aluminium or is it more towards titanium? Then what is the competitive scenario there? Because globally China is the largest in aluminum and it’s very price competitive there.
But titanium is more strategic and as our current titanium capacity is almost fully utilized. So if you ramp up the white plate mill you’d need more titanium. So. So I mean where would you go on the capex side for titanium and some more clarity of that.
S. V. S. Narayana Murty
Okay, thank you Mr. Bagadia. It’s a good question actually our current WPM utilization is about 40%. Okay, so there is a good spare capacity. We are in discussion with many of our customers to convert some of the products into plates. Because one unique thing about our Y plate mill is this is one mill having a width up to 3.2 meters and we can roll very hard. This steels like margin steel. Not only that, we have recently started using it for rolling of super alloys and titanium alloys. So certainly it has got some place where it can take more load with respect to aluminum.
It is not in the main portfolio of Midani but we have been. There have been inquiries from many people who are looking for using our white plate mill. And we are are also keen on taking up because of our spare capacity. So if something works out in the near future we’ll also be reporting some rolling of aluminium. But definitely we are looking at titanium and super alloy plates. Wherever possible we are interested to take up and we are taking up also currently.
Henil Bagadia
So on the titanium part since we are, I mean at optimum utilization already. So I. You would have to do more capex on the capacity side. So any clarity there as to when you plan to allocate funds and when the new titanium blast furnace will be operational?
S. V. S. Narayana Murty
No, already we have. Yeah we have already invested in titanium. We have established titanium processing facility. One dedicated titanium vacuum arc re melting facility has been established with 50 crore investment. And yes we are already fully utilizing of titanium side. We have orders in hand as well. Well as we are still utilizing it.
Henil Bagadia
So for future orders of. I am for the utilization of capacity. You’ll need more titanium capacity. So would you import it or would you source it in house?
S. V. S. Narayana Murty
No, no, no we don’t import. Everything is. I mean. You mean raw materials or you mean the titanium ingots? No, no we don’t import. We make. We make from raw materials. We make. We melt the Alloy and we supply to different customers in buying different formats, plates, sheets and bar product as well as even up to wire. We can make it of different sizes. So we don’t import. We have been making and we make these titanium products in house within minani.
Henil Bagadia
Okay so secondly on the Aeros engines and the aerospace side, so we developed a new alloy about 2/4 back the 718 nickel alloy. So right now there has been a lot of traction in the aero engine and the aerospace markets. I mean there have been good order buildup of CFN G, Pratt and Whitney and Rolls Royce, the four main companies. And we are empaneled on all four companies as a supply chain partner. So what is our rank on their supply? Because it’s about a two or three, it’s a three or a four player market in terms of vendor sourcing.
So I mean what rank do we have there? How is the orders shaping up from these companies? So also connected question is on the MRO side. So Safran Hyderabad MRO is just going to get completed by this year and so are you empanelled also with Safran. In terms of supply? Because this happens to be for I mean the leap engine as well as they might extend it to the Rafale aero engine MRO supplies to. Hello.
operator
So please go ahead with your with the answer.
S. V. S. Narayana Murty
718 is a. Is one of the most important superlight in the in this kind of category for high temperature applications. It’s used extensively where materials are required to be used up to 650 degrees Celsius. And Megani is leader in this class of material. So we make this super alloys and we supply to right from ISRO drdo many many customers. We supply this material and you mentioned saffron and all. There are many foreign customers who come and ask for audit of our plant and we work with them closely and we are expecting exports from these very niche customers.
And because they are in touch with us to give orders and hopefully in a quarter or two we’ll be able to close the deal with some of these customers. Foreign customers.
Henil Bagadia
We empaneled with all the four engine makers. The top four engine makers.
S. V. S. Narayana Murty
No, we are having. We are in discussion with them and some of the people already we are supplying also.
Henil Bagadia
Okay, one more so this is the last question before I get in the queue. So regarding the ultra high megawatt power plant. So we had some products for supplies. So I mean right now the government is give as I think they have released funds and they are pretty active in getting the Plants. So are we seeing orders there? Because we’ve got a certain super allies which is there which is being used for the super advanced supercritical application. So if you could just value. I mean are the orders flowing in or do we. Do you see more time for the orders to come in?
S. V. S. Narayana Murty
See we with respect to ultra high temperature UHSC we already we have developed one actually one named Indian high Temperature like we are already done. We have already developed in collaboration with nfc, IG Karkalpakam and NTPC and we already developed some few products for this particular thing. It is called 740H. So technologically we are ready, we are expecting order anytime.
Henil Bagadia
Is it similar to the alloy that IIT Bombay is recently developed and they’re claiming 50% efficiency on the boiler side is having a different product and we have a different product.
S. V. S. Narayana Murty
No, I do not know the ally you are talking about but this we are working with our UHDC people and these are the products that are going to be used. There may be many new developments of improved efficiency and all but this being a very important thing we already have discussion with Indira Gandhi center and Nuclear fuel Complex for extrusion. So we have already developed these materials for that which has been frozen in the design and we hope to get orders in soon from them.
Henil Bagadia
Just a clarification. So on the ultra.
operator
Could you please rejoin the queue for more.
Henil Bagadia
This is just a clarification with respect to what sir said. So regarding the clarification. Is these products just used in the advanced super high critical boilers or is it also used in the other boilers that goes into it? Because I mean the overall boiler as a portfolio is about 30 to 35% of the power project cost. I was just trying to estimate the kind of bill of material we will supply to the BALE and other vendors which in turn will supply to the power projects.
S. V. S. Narayana Murty
Yes, these are exclusively for ultra high temperature super ultra supercritical project. And these are very niche application. I mean niche products. Okay. Demanding very high specifications and these specifically go into this whatever I mentioned.
operator
Thank you. The next question comes from the line of Abhishek Jain from Alpha Accurate. Please go ahead.
Abhishek Jain
Thanks for opportunity and congratulations for strong set of numbers. As you mentioned that you are confident of around 30.
operator
Abhishek, could you please speak on the handset mode? You’re not quite audible.
Abhishek Jain
Are you able to hear me now? Yes. Yeah. So sir as you mentioned that you are confident of around 1300 crores. Again this your annual T4 and a 1500 course kind of the number that means in the coming quarter rent will be 300 to 5 to 380 crores. So just wanted to understand how would be the quarterly progress in the turnover and the order book or most of the orders will be executed in the second half. Orders. Yeah. So see already we are having 1827 crore worth of orders. We are expecting around 701 crore of orders in Q2.
So put together we are having enough orders in hand. So we are having the all the facilities running. We should be able to make it. So we are confident as on today we have we have no other issues with respect to meeting the demands of the customers with respect to time schedules. So how would the executions for most of the executions will be in the second half only or it will start to ramp up from the second quarters onwards?
S. V. S. Narayana Murty
No, it will be staggered. No, it’s. I see deliveries are. I mean alloy making is a time taking thing.
Depending on the product we have to melt and do the downstream operations. So sometimes it takes longer time. Like for example you have sheet products and two products, wire products, it will take longer time compared to bar product. So the. It depends on the product shape basically on how long it will take and it will be staggered up to Q4.
Abhishek Jain
Okay. And in this quarter the gross margin expansion was significant. Is it because of the change in the versus staff composition or fall in the raw material prices?
Unidentified Speaker
Yeah, there are multiple ways. Definitely there there is efficiency in the raw material cost. That raw material cost has reduced and also as we discussed, the production has increased. See when the production has increased, obviously the overheads, the burden per ton, but the button per the unit will come down. Right. So that is how. That is one compound, that is one factor and the second is that raw material utilization. Even the prices also when compared with the previous last year’s Q1, the prices have come down raw material prices. So the last year we are actually it’s at very high rate. So that is also second component and also on top of it that as we are already mentioning always that we are now using virgin and scrap mixer wherever there is a possibility. And of course with the confirmation from the customers. So that is also giving us some savings with respect to the raw material cost.
So these are the things which are contributing for the good margins
Abhishek Jain
compared to the previous few. One. Yeah. So as you. So.
operator
You’Re not audible at all. Your. Your audio is not clear. No, no, you’re not.
S. V. S. Narayana Murty
Your voice is breaking.
Abhishek Jain
Are you able to hear me now?
S. V. S. Narayana Murty
Yeah.
Abhishek Jain
So my question was on the scrap inventory. So are you exploring any Plans for dedicated scrap processing body settling plan to improve and
S. V. S. Narayana Murty
Sorry, actually your voice is again breaking. We are not able to take.
Abhishek Jain
Hello? Hello. Are you able to hear me now? Is it fine?
S. V. S. Narayana Murty
Sometimes yes. Again Otherwise again after you start then the voice is breaking.
Abhishek Jain
Okay then my question was on high scrap inventory. So just wanted to understand. Are you exploring any plans for dedicated scrap processing or recycling plant to improve cost efficiency?
S. V. S. Narayana Murty
No, presently the broader means that’s what that returns generated in those things.
We have a method of segregating means. Again alloy wise, grade wise and we able to make use it. So there is no any separate scrap processing like any maybe separate only people who is dealing scrap they may need such type of the gear. Whenever we are manufacturing batch, when we are taking up one alloy we’ll be continuing with that. And separately we are keeping it and tracking. And again we are using it in wherever required. The cleaning part that we are taking care. There is no separate scrap processing unit is required.
Abhishek Jain
Okay, and my last question on the your orders with the hal.
Can you throw some more light on the size and the durations and the potential for the repeat order?
S. V. S. Narayana Murty
Okay, so we are currently having our orders with HLR for super allies basically steels and super allies and titanium allies. So we are in the process of executing and once the orders are completed there is a possibility. So depending on the orders they get from their indenters, whenever they are getting for more aircraft or anything similarly they will put orders with us because these are all the regular grades of Mirani, they come back to us. So it depends on how many orders they get basically.
Abhishek Jain
And what is the size with of the current orders?
S. V. S. Narayana Murty
With the HAL total it will be around 750 crore total. 750. Yeah.
Abhishek Jain
Okay. Thank you sir. That’s all from me. Thank you. Thank you.
operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from Venkatesh from logictree consultant. Please go ahead.
Venkatesh Subramanian
Good afternoon. Thank you for the opportunity. So I have two questions. Question one is you indicated the order book, present order book and the possible orders you’ll get in Q2. But mine is a slightly long term vision. So considering the big opportunity across sectors both on the domestic and export side. If I have to take a three. To five year view on Medani, what is the kind of internal vision that you have? So what is a broad number that we can look at as a company if you want to stay invested for three to five years.
S. V. S. Narayana Murty
Yeah, thank you for your question. Actually. Okay, this internally we Usually discuss. So we are having both short term targets as well as long term targets both with respect to Capex as well as the production. So we are expecting in a time period of about five years our targets will be around 2000 crores. That is the target we are looking at from the current 1100 crore approximately we want to go to 2000 crore in 5 years.
Venkatesh Subramanian
2000 crore top line. 5 years, don’t you think? Is that not considering the kind of opportunity you have sir? Is that not a. Not a very ambitious number or is a very less low, low number, isn’t it?
S. V. S. Narayana Murty
Wouldn’t you say that see with the existing facilities see it’s a different kind of market altogether. Okay so these, these are exclusively. These are strategic materials and with the available facilities including some of the new facilities that we are going to augment in three to five year time I am giving these figures. These are not. I mean these are. See in strategic sector what happens is the quantities are small and the numbers are large. See the. It is a different thing. It is not that we are producing like a steel plant, a regular steel plant here.
Number of grades will be like in an aircraft number of grades will be lot too many and quantities are small and the required quality is very very high. So these things put us in this bracket. I think 2000 is what we are looking for. If, if it is more I do not know we can. This is the current achievable target. That is what we feel.
Venkatesh Subramanian
Okay sir, great. Second question sir, in your annual report of last year as well as this year one of the key words that you use is global supply chain linkages and which is both required for bringing in as well as taking it out. Do you see a possible. Is that your greatest challenge which is getting the global supply chain linkages? Can you elaborate on that please?
S. V. S. Narayana Murty
Yeah, this is one important challenge because many of the raw materials that we use for making their lives are important and because of the global chain disruption sometimes it happens that some of these raw materials that go into production of materials alloys are not available in time. So it becomes. It will put stress on us sometimes. So suppose say for example some materials are some master alloys are not available or some pure elements which we use in this manufacturing of these nickel based super alloys they are even one element is not there like typically a super like consists of six to seven elements.
Any one of the absence of any one of the elements is going to be a critical, critical thing. And one of our objectives is also to develop some domestic market but it takes time it’s not. It will not happen immediately. Because these are all long. I mean very heavy investments are required for making these elements. Okay. Whatever we import if you want to make it within the country takes time. So short term. Yes, we want to meet the targets. And long term we want to have some collaborations. And all are how to recover maybe some of these alloying elements.
If they are possible to recycle and use that are also. That also we are looking. So supply chain is a very very important thing in our. In our type of production where we depend on external. External countries for resources.
Venkatesh Subramanian
Okay sir. Okay sir. And the current order book of 1800 crore plus what you are indicating in terms of orders coming in this and next quarter. What would be the execution time frame for this? If I stay for the thousand eight hundred plus six hundred that you’re projecting.
S. V. S. Narayana Murty
Yeah, something like one and a half years. It will take one and a half years is execution time sir.
Venkatesh Subramanian
Which means. I’m trying to corroborate my study though which is 1800 plus 700. If you are able to execute even it in two years maybe we will reach our ambition faster. Isn’t it sir?
S. V. S. Narayana Murty
Yeah, it is possible. But it all depends on. See some of one problem is we should have smooth supply of raw materials. So if we are able to get it should be possible. As you told, good number of orders in hand. So. So your statement will be correct provided there will not be any hindrance. Because sometimes we are finding it difficult to get import certain critical raw materials. That’s why we are we have told like that.
Venkatesh Subramanian
Got it sir. Got it sir. One last question sir. The previous MD Mr. Jha had pointed out in one of the con calls saying that the potential for Maidani’s use in our country now Midani’s role in our country is so huge across so many programs that India needs five Midanis. That’s the kind of capacity that is needed. Can you take it forward, sir? Do you think that is the kind of potential that we foresee for the next 510 years?
S. V. S. Narayana Murty
Sir, my predecessor is 100% true. His words are absolute. See the thing is even today if you look at the EXIM data there are steel super alloys and titanium alloys are imported. 8,000 crores worth of these steels which are in the portfolio of Milani are being imported every year. So just when he. When he told this I think probably this is what was in his mind. If you keep it 5 million means 5 into maybe 1100 crore. It is even less than even we cannot meet. So There are large number of these greats are getting imported because due to multiple reasons.
So absolutely is correct. Yes. We need to strengthen, we need to expand, we need to become big, we need to cater. And already government of India’s idea is to have everything done within the country under atmanirbar. So we are sure that we are going to expand in due course of time. And we are. That is why we gave in about five years we are going to do at least 2000 crores. We should be able to make it. And this, the materials, whatever we are supplying, these strategic materials are required more and more in numbers because you know the kind of things know that the many orders are there from defense.
So it is expanding overall, the kind of product that Melanie is making is expanding and country needs more such companies. Yes.
Venkatesh Subramanian
Excellent, sir. Thank you so much. In fact, me and my friends went through some parliamentary notes also and your company is being mentioned as the company of strategic national importance. You know, there’s a lot of people talking about it. I wish you the best. Thank you.
S. V. S. Narayana Murty
Thank you so much. Thank you.
operator
Thank you. The next question comes from the line of Amit Dixit from Goldman Sach. Please go ahead. Yeah, you’re not audible. You’re not quite clear.
Unidentified Participant
Is it better now?
operator
Yes.
Unidentified Participant
Hello from my side. The first one is on the Bhotak armor factory. If you can mention the capacity utilization there and what kind of revenue can we expect from this facility in next couple of years. Also a related one on this is that now LCH order has been given to hal.
S. V. S. Narayana Murty
Okay, see with respect to. Yeah, you are done.
Unidentified Participant
Yeah, yeah. That is the first question.
S. V. S. Narayana Murty
Yeah. So with respect to the Rota case, we are. But we are having two products from Rohtak basically vehicle armoring and body armoring. So with respect to vehicle armoring, we are having good number of orders. Okay. We are having that bulletproofing of vehicles. So we are having good orders from respective police departments, state police departments as well as central police forces. And with respect to body armoring. Yes, we are. We are having some of the orders. We are already. Yeah. So we are having a TOD technology transfer from Baba Kavach. That is one. And we are also looking at Abed. Okay. Another T O T. So orders are expected. We are. Recently we got an order for bulletproof jackets from one of the stale police departments. So we have to expand. There is still.
It is not up to the mark, but still we are looking for some expansion in that and getting orders to execute. And with respect to LCH order to hal so we are, we are ready to get some good orders in this area. Does that answer your question?
Unidentified Participant
Yeah. The second question is on the. So if you can let us know imported content in that value of production and what kind, what kind of steps are we taking to bring it down? And so you know this imported products, I know there are a lot of things not within your control because some of these materials are not produced in India.
S. V. S. Narayana Murty
Yeah, it all depends on their. I mean the end user has to give us opportunity to work on that because many of these products that are imported are all in the portfolio of Midani. So whether it is steel super alloy or Titan mli. So it depends on the type, their timelines and what is their promises to their customers. So accordingly we are expecting some orders. We are yet to get any feedback from them.
Unidentified Participant
Okay sir, thank you so much and all the best.
S. V. S. Narayana Murty
Thank you. Thank you.
operator
Thank you. The next question comes from the line of depend wakeel from Philip Capital. Please go ahead. Please go ahead with your question and unmute yourself in case if you’re on mute.
Unidentified Participant
Yeah. Hi. Thank you for the follow up opportunity sir. So my question is on the lines of your supply chain. So you mentioned that a lot. So what would be the raw materials that you’re currently importing and also the raw materials which are easily available from the domestic region. So can you throw some light on that?
S. V. S. Narayana Murty
Yes, some of the, some of the. Some something like 75 to 80% of the raw materials we import because these raw materials India is not having the mineral resources to produce the kind of material that we are using for making super allies like for example nickel, cobalt, Molly, tungsten, these things we import. So maybe 75 to 80%. But there are alloys which I mean there are materials which he use domestically also. So. But significant part of it is coming from import pure elements.
Unidentified Participant
Got it. Thank you so much.
S. V. S. Narayana Murty
Thank you.
operator
The next question comes from the line of Gopi Krishnan, an individual investor. Please go ahead.
Unidentified Participant
Yeah. Am I audible?
S. V. S. Narayana Murty
Yeah, yeah. Audible. Please go ahead.
Unidentified Participant
Yeah, okay. Yeah. I have only, I have only one question. The revenue sales is 168 crores. So I would like to know what is the production charge against this value of production charge against the sale of 168 crores.
S. V. S. Narayana Murty
240. No, no. The value of revenues for cube. Sorry, yeah, sorry. Please go ahead. Please go ahead.
Madhubala Kallur
Actually total, I understand what is the total value of production for the quarter but what is the value of production charged against 168 crores? Just to approximate figure invoicing okay, so.
S. V. S. Narayana Murty
That is 100 and around. Just a minute. So yeah, we are 110 crores. So 110 crores of production has generated for you. 168 crores. 110 crores is the raw materials that have been used. And this 110 crores consists of. Yeah. Virgin raw materials which we have used and also some scrap. We use it. Right. So this is the margin. Raw materials, 110 crores.
Unidentified Participant
No, my question is specific not regarding material. I’m talking about Your mentioned that 241crore is your value production. So what is the value of. What is the value of Production? Charge against 168 crores input. When you invoice 168 crores to the client, how much is the value of production against that.
S. V. S. Narayana Murty
168 where the 168 has come? You. Are you talking about revenue?
Unidentified Participant
Revenue. Revenue.
S. V. S. Narayana Murty
Okay. 170. Okay. Okay.
Unidentified Participant
1. 170. Okay. Okay.
S. V. S. Narayana Murty
170 is the check.
Unidentified Participant
Yeah, yeah. It’s okay. Okay. Okay, fine, fine. So that around. That we contribute around 60%. 60%. 60% is the value of production.
S. V. S. Narayana Murty
Correct.
Unidentified Participant
So that means 40% you’re making. That means.
S. V. S. Narayana Murty
Yes. The other. Other things will be there. The other overheads will be there. Like, you know, consumables.
Unidentified Participant
Approximately are telling. 60% of 170 crores is charged against this.
S. V. S. Narayana Murty
Yes. Yes. Because on top of raw materials, there will. That is only the raw material consumption I talked about. Right. On top of it there will be a scrap consumption. There will be the like, you know, expenditures like, you know, employee expenses, other audits like consumables, power repairs. So many things will be there. All those finance cost will be the depreciation. So many things. Yeah.
Unidentified Participant
Okay. And also one more question. Is there any seasonality in production for Midani? Always. It’s quarter one is lower and quarter four is higher. Is there something like that? I’m talking about production.
Unidentified Speaker
There is. Yeah.
S. V. S. Narayana Murty
Yeah, there may be. Last quarter may be little more aggressive compared to other three quarters. Maybe if you look at the previous quarter results like that.
Unidentified Participant
But is there anything like that, you know, seasonality for production? Not sales. I’m talking.
S. V. S. Narayana Murty
No, nothing like that. Okay. Maybe more running in the last quarter to achieve the targets.
Unidentified Participant
Okay. Okay. Okay. That’s all. Okay. Thank you.
Unidentified Speaker
Thank you.
operator
Thank you. The next question comes from the line of Hanal Bagadia with Equi Co Op. Please go ahead.
Henil Bagadia
Thank you for the opportunity again. So I just got two quick questions. So one is since the raw material price have come down compared to last year. So is there any upward revision on the gross margin and EBITDA margin guidance you plan to make?
Unidentified Speaker
That’s what is already reflected. That is if you look at it the last year the EBITDA margins are only, you know, 19%. Q1 if you look at it because 31 crores EBITDA and 163 crores. The margin is EBITDA margin is 19. So that’s the 24 crores is Q1 of the current financial year. Right. And also it has the same impact cascade impact on the PBT. Last year it was 5.48 and it is 11.14 of the revenue. Same is the case of the PAT. So that is what is resulted the savings. It has. Yeah, it has contributed it.
Henil Bagadia
Fairly diversified in terms of procurement because I mean on. On cobalt. I think so. DRC has still extended their export ban. So are we fairly comfortable in terms of supplies?
Madhubala Kallur
We are going as for the orders available. That is a continuous process. We are keep on procuring raw material as per the requirement and considering the market trends also procurement is a continuous process. Okay, okay.
Henil Bagadia
And on the last question, sir, if you could also explain. So we’ve got a product for bulletproof jackets called Kavach. So what. How different is it from technical textile product which is manufactured by a few textile players which is also a bulletproof jacket that is used so because there was a large opportunity in terms of getting orders from state and central police departments. But I think so the ramp up of the number of orders that you received has not been in lines with the expectations.
S. V. S. Narayana Murty
Yeah, probably your statement will be true. See the normal textile and this thing is different because you are having bulletproof jackets have different layers of materials consisting of some polymeric materials and ceramic materials which will. Which will be resistant to firing bullets. So it’s a technology and you have to get it in the right form. The interface have to be good interface between the polymer and the ceramic. So the technology is available. It is called that coverage. So what you are referring is called a Baba Kavich. We have taken a T O T from BRC and we are working on that.
We are also in the process of taking a TOT from IIT Delhi. It is called Abed and we are working with them and we are doing the initial processing of some of the jackets and these are for higher stanak levels that is more intense. Bullets also can be stopped. So as you told. Yes, once these things are established we will be going and we should be getting orders in next few quarters once these are established.
Henil Bagadia
Thank you very much. All the best to the team.
S. V. S. Narayana Murty
Thank you so much.
operator
Thank you. Ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to the management for the closing remarks.
S. V. S. Narayana Murty
Thank you. It’s been a wonderful experience. Thank you once again for all our investors for joining today’s conference call and for all your continuous trust and support on Mizani. We are proud of what Bizani has accomplished in Q1 of FY 2526. And as we move to the next quarter I am confident that with our strong order book particularly the expected 701 crores from Q2, I think we can have a sustained growth. If you have any further questions, you can please call our company secretary. We wish you from Vidani side a pleasant day.
operator
Thank you, sir. Ladies and gentlemen, on behalf of ICICI Securities Limited that concludes this conference, thank you for joining us and you may now disconnect your lines.