Nelcast Limited (NSE: NELCAST) Q1 2026 Earnings Call dated Aug. 01, 2025
Corporate Participants:
Unidentified Speaker
P. Deepak — Managing Director and Chief Executive Officer
S. K. Sivakumar — Chief Financial Officer & Company Secretary
Analysts:
Unidentified Participant
Abhishek Bhatt — Analyst
Khush Nahar — Analyst
Vidit Shah — Analyst
Ajit Sethi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Nelcas Limited Q1FY26 earnings conference call hosted by EY. As a reminder, all participant lines will win the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing 100 on your Touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Abhishek Bhatt from EY Investment Ltd. Thank you. And over to you sir.
Abhishek Bhatt — Analyst
Thank you. Good morning everyone. On behalf of Nelcast Limited, I welcome all of you to quarter one FY26 earnings conference call. The results and investor presentation have already been shared and are also available on our website and through our filings with stock exchanges. Joining us today to discuss the company’s performance and outlook are Mr. PDPAK, Managing Director and Chief Executive Officer and Mr. S.K. shivakumar, Chief Financial Officer. Before we proceed, a standard disclaimer. Please note that anything said on this call during the course of interaction and in our collaterals which reflects the outlook towards the future or which should be construed as certain forward looking statement must be viewed in conjunction with with the risks the company faces and may not be updated from time to time.
More details are provided at the end of the investor presentation and other filings available on our website@www.nelcast.com. should you have any queries or require further information following this call, please feel free to reach out to us via the contact details provided in our investor materials.
With that, I now hand over the call to Mr. Deepak. Over to you sir.
P. Deepak — Managing Director and Chief Executive Officer
Thank you Abhishek Good morning everyone and thank you for joining us today. We’re pleased to report a strong start to FY26. Building on the momentum from Q4 of FY25, the tractor segment delivered strong growth which was supported by a favorable and early monsoon. While MNHCV and other segments continued to perform steadily despite early concerns around tariff related uncertainties in our key export markets, our Exports still grew 17% year over year to 115.4 crores. While this situation remains fluid, we remain focused on minimizing any unfavorable effects to the best of our ability. In terms of industry performance, we witnessed a healthy recovery in the tractor segment during Q1 of FY26 and we expect this momentum to continue throughout the year.
The tractor segment is projected to grow by approximately 7.5 to 8% in FY26. Commercial vehicle segment also started off strong in April and May. However, with the introduction of the new AC cabin norms by the government, this has led to some softness in demand since June, though we expect this to normalize gradually from October. FY26 is a strategic inflection point for Nelcast. Beyond the quarterly numbers, this year marks a critical phase of transformation. We are actively investing in new product development with a strong focus on the export market. These initiatives are not only expanding our product portfolio but are also driving higher utilization across our manufacturing footprint, especially in facilities that have been under leveraged.
I am proud to share that we have successfully developed the largest signal casting in our company’s history and weighing approximately 500 kgs which is being validated and submitted for customer approval. We also submitted samples of our first castings that go into an electric power steering. These milestones, along with several other new product samples currently in progress, will begin to bear fruit in FY27 and 28, significantly enhancing our return ratios and profitability. On the margin front, we have seen a substantial improvement with EBITDA per kg rising 24% year on year to 14.7 kg, reaffirming our progress towards our first goal that we have set of 15 rupees per kg.
Looking ahead, our focus remains firmly on executing the strategic initiatives laid out for FY26 which are designed to unlock significant value over the next two to three years. We are actively working on commercializing the new product portfolio with several components currently in the sampling and approval stage. These products are primarily targeted at the export market and we expect them to begin contributing meaningfully to revenue starting FY27 with full ramp up by FY28. As these products move into production, we anticipate a step change in utilization levels which will directly enhance operating leverage, capital efficiency and margin profile.
Additionally, we are strengthening our engineering and process capabilities to support the development of of these complex high value castings, positioning Nelcast as a preferred supplier to global OEMs. On the market front, we are seeing increased engagement from European customers and we expect to convert several RFQs into long term contracts in the next few quarters. The groundwork is being laid in FY26. It’s not just about growth, it’s about building resilience, scalability and global competitiveness. In summary, while FY25 was a year of consolidation, FY26 is about laying a foundation for scalable sustainable growth. We are confident the groundwork being laid today will translate into robust performance in the years ahead.
And we remain committed to creating long term value for our stakeholders. In terms of our financial the Total income for Q1 was 336 crores compared to 302.3 crores in Q1 of FY25 which is a growth of 11.1%. Exports for Q1 FY26 stood at 115.4 crores compared to 106.5 crores in Q1 of FY 25. And our EBITDA stood at 32.4 crores in Q1 of FY26 compared to 22.4 crores in Q1of FY25 which is a growth of 44.3% year over year. Profit after tax during Q1 was at 12.5 crores versus 8 crores in Q1 of FY20 5 which is an increase of 57.2% year over year.
We can now open the floor for any questions and address your queries. 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 touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Kanika Kothari from Kothari Securities. Please go ahead. Hello.
Unidentified Participant
Thank you for the opportunity. Sir. My first question is what are the sampling which you are currently doing and where is this applicable?
P. Deepak
So the specific product that I was referring to, the 500kg product, is actually not one product. It’s a family of products that go into that program. So these go into the heavy duty tractors that are sold in the western markets. Typically these would be the tractors ranging from about 600 to 800 horsepower range. And this is us specifically, these are the track type of tractors as well.
Unidentified Participant
And which are the export market that this will cater to.
P. Deepak
So this particular program will be catering to the US market. That’s where the manufacturing of this particular tractor takes place. I believe most of the extra large tractors take place only in the US market.
Unidentified Participant
Okay, thank you. And also so you mentioned that you’re laying the foundation and the results will be seen in FY27 and 28. So can you kind of elaborate on the groundwork which your team is doing. And kind of how aggressive are the VT efforts from your end?
P. Deepak
Yeah, so I mean a lot of this new product development activities that we are taking on. I think what we’re doing today in terms of developing products for customers is undoubtedly the most that we have ever undertaken. I think it’s a very ambitious goal that we have undertaken and we are meeting our targets as well. So that’s quite exciting. I look at it in terms of the picture. It’s a lot of these type of products that we are doing which are, I would say first for us, including these products that I said that go into the tractor and off highway segment for the North American and European requirements.
And then in addition to that, there are also. I think one of the things I also alluded to in my speech was you also made some components which are smaller in size, but then those go into the first electric power steering parts that we have done. So we are expanding our horizons even in terms of the sectors that we are working with.
Unidentified Participant
Right, thank you. That was really helpful. That’s it from my side.
operator
Thank you, ma’. Am. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Ankur Kumar from Alpha Capital. Please go ahead.
Unidentified Participant
For a good set of numbers. Sir, my first question is. Is on our. This EBITDA per kilogram guidance to we. Yes. Earlier we were saying we expect this in FY27, but now we are saying in FY26. So what gives us this confidence? Is it like the export order or how. But you also said CV is expected to be little softly. So can you comment on that please?
P. Deepak
Yeah, I think why we’re trying to target this for FY26. I think one, we’ve got a good start to the year and that driven by. I think the first quarter was driven by a good tractor demand, healthy tractor demand. And the forecast seems to be a growth of about 7.5% to 8%. Of course, we’ll have to wait until the festive season to get more clarity in terms of where that comes out. I think in terms of exports, we are seeing fairly good traction. Overall, we are a little bit uncertain right now because there is some forecast of a slowdown in the truck market in US because of the aluminum and steel tariffs, that 50% the cost of the vehicles is going up and therefore there seems to be some drop and demand that might come through with tariffs.
The way that they stand, what was there yesterday and what is there tomorrow seem to be two different things. So I think we’ve got to wait and watch. And we do not see that there’s a real possibility that the entire market would collapse because I think the US government would not allow that and would step in and come up with some sort of clawbacks or something like that to prevent that from happening. So we feel reasonably confident about the year. Obviously there’s a lot of uncertainty that is there currently, especially given the announcements from a couple of days ago.
But we don’t believe that that’s really going to be a significant thing when we look back at it. So we’re reasonably confident of a fairly good year this year. And we are also, I think some of the new product development activities, we are hopeful that they will might even come into production into Q4, if not at least in Q1 of next year. So as the new products that come in with better margin profiles and all of that, I think we do expect to see that we will be able to improve on our margins. But in the short term, again given the uncertainty around the us little harder to project perhaps for the current quarter, but we remain very confident for what the next few quarters and next two, three years look like.
Unidentified Participant
Sir, in terms of volume, what your expectation for this year? Is it like a 1 lakh metric? Tony?
P. Deepak
Yeah, so that’s what we are targeting. We’re targeting about 1 lakh metric tons for the year and we think it’s quite possible, barring some crazy shocks, but that’s what we are working towards and we believe we will be able to achieve this year.
Unidentified Participant
And sir, on US side, what percentage of export revenue comes from us?
P. Deepak
The US is actually our biggest chunk of our exports is coming out of the US so I would say about 80% of our overall export is coming out of the US market. And despite all of these talks about tariff and all of that, we have not really impacted anything in terms of share of business or anything like that because we don’t believe the capacity for these kind of products exists in the US anymore. So we also believe that whatever the tariff might be at the end of the day will largely get passed on to the customer itself.
Unidentified Participant
And last question would be, you Talked about good RFQs from European side also. So what percentage of our next year or say even FY27 28 revenues or EBITDA we expect from those new products.
P. Deepak
So I think yeah, we do have actually a very healthy pipeline of RFQs. And you know, many of these have progressed well to the point where the customers are actually visiting our plant, conducting the necessary audits and the plant approval process that is required in order for them to release orders onto us. So we believe that most of these activities of the plant approval and technical discussions and all of that will largely be completed within this calendar year. So we would hope that in terms of order wins, we’d start to see that pickup in the next calendar year.
In 2026 and potentially 2027 and 28, we will hope to see a good amount of growth from that. From what we can see, it’s hard to put a projection right now, but certainly if you look at it, about 20%, a little under 20% of our export revenue is coming from Europe. So we expect that, know that to certainly double or triple in the next couple of years.
Unidentified Participant
Sure, sir. Thank you, Nobles.
operator
Thank you, sir. The next question is from the line of Priyam Shah from Value Equity. Please go ahead.
Unidentified Participant
Hello. Hello. Thanks. Yeah, so thanks for the opportunity. So this is just an extension of the previous participants. Also, we have recently done this new product sampling of which includes the casting of 500kg. So I just wanted to understand what is the competitive advantage that we have in this product and how difficult it is for competition to replicate this product. And if we can just highlight the applications of this product and profitability.
P. Deepak
Okay, so this particular product that we’re Talking about at 500kg, I believe if you look out in the world, you know, there are two possible ways that this product can be manufactured. The larger castings are typically manufactured in a process called no big casting, where we use chemically bonded resins to make molds with the sand. Right. So this is a more expensive process. And the process that we use is a process called green sand, where we use clay and mechanical compression to make the molds.
So this, when you compare the two, there is an inherent cost advantage that is there in the green sand process. So we are producing this part in the green sand process. Whereas historically this part has been produced in, I believe this part has been produced in China and the Nobek process historically. So if you look globally, I would say there are probably maybe five or six casting companies in the world that can even make this product in the green sand process.
And therefore, I think that helps us in terms of our competitive position as well as the long term sustainability of the business. And of course, because we are competing against the no bake process and only a handful of people who can do this in the greenstand process, Margin profile is also higher. I can’t elaborate on exact margin profiles on exact product, but certainly from a selling price standpoint, we do have a better Margin which we would expected the bendable amount for this.
Unidentified Participant
Okay, thankful. And is it possible at this juncture to let us know what would be the expected contribution from this product? If it is possible.
P. Deepak
Not this product specifically. So this is a program. This product is used, I think I mentioned earlier, this is used in a tractor. So these are these very large tractors that instead of using wheels, they use tracks. So it’s a very specialized thing. And along with this part there are a few others that go into that assembly. And at the moment our forecast on this program is something these type of parts and this family of parts is between 10 and 15 million dollars a year.
Unidentified Participant
Okay. Okay. And so my last question, if you can highlight how would we ramping up the utilization of Peda Korea facility in the coming two years?
P. Deepak
Yeah, so that is actually looking very solid right now. These products that I just mentioned are, will be produced in the Pedrapariya facility. We are looking at bigger castings, heavier castings, more complex castings that like I mentioned there are only a half a dozen foundries in the world that can make these parts. And that is starting to fill out quite nicely. And we are getting more and more inquiries and orders as we speak onto that line. So we are quite confident that currently from what is about 25% or so capacity utilization, somewhere between 25 to 30% capacity utilization that we have in Kadapariya plant. We are actually very, very confident that that number could be close to 60% within the next, you know, two to three years.
Unidentified Participant
So thanks for the detailed answer and I wish you all the best. Thank you so much once again.
operator
Thank you sir. The next question is from the line of Aditya Agarwal from Old Bridge Mutual Fund. Please go ahead.
Unidentified Participant
Hello. Am I audible?
P. Deepak
Yes.
Unidentified Participant
Thank you for the opportunity and congratulations on a really healthy set of numbers. So my first question was on the export side. So on exports we have done reasonably well this quarter despite. Despite the volumes that are coming up from the markets of US and Europe being pretty big. So can you just elaborate like where is this growth coming from and what are the major segments that we cater to in the export market?
P. Deepak
Yeah, so if you look at the export market, the biggest portion of our export market is coming from North America which is majorly US and some Mexico as well. And if you look at within that a big chunk comes out of our Class 8 truck segment and some of it actually even comes out of the light and medium duty truck segment as well. So on the light and medium duty truck one I would say program that seems to be going still quite strong is the midsize pickup truck for which we supply components to the US market and even the medium duty truck.
In fact, the Ford Super Duty seems to be going great guns without showing too many signs of slowing down. So they’re very positive in terms of their numbers. In terms of Class 8, we started to see that slowdown over the last couple of weeks. Some degree of slowdown driven more by I think the tariffs on aluminum and steel which is impacting overall price of the railroad. So we will need to watch that a little closer because that’s the biggest chunk of what we do for the North American market.
Unidentified Participant
So in terms of North American sales, how much so majorly you said it is seen is correct. Then in that seat, how much would be the heavy Duty Class 8 trucks? What would be a broad percentage in the revenue?
P. Deepak
I would say of the US numbers about 60% will be not just class 8 because some of the products go both into the, let’s say class six and class seven as well. But class six to eight, if I was to take, I would say about 60% goes into that
Unidentified Participant
and rest would. Be the low light duty trucks.
P. Deepak
Yeah, yeah.
Unidentified Participant
So my second question would be, so this, the volumes that have come up for export, is it, is it coming up from the newer products that we have introduced or a new program that I’ve ramped up or is it coming up from the older programs only what is contributing? Because volumes in the US seems to be degrowing much at a much sharper rate.
P. Deepak
Yeah, it’s a mix of both. I think in the last quarter, I would say in terms of Q1, there was a fairly, you know, the Class 8 actually the production number, while their order intake numbers had dropped, their production numbers were still, I would say, reasonably strong. And I think there was some concern about these tariffs and all of that as well. So they might have done a few, a little bit more pull forward on production. We are seeing some slowdown that’s happening right now in terms of Class 8 and some forecast from research agencies as well showing a significant slowdown expected in the second half of the year.
But that’s of course the reasoning that’s been given is because of a lot of these tariffs, especially the steel tariffs, they believe is going to have a significant impact on price of the vehicle. So there is, you know, and I think in the U.S. also there’s a lot of marketing happening around. You know, please buy the vehicles today before, you know, prices go up due to tariffs and all kinds of marketing schemes are going on. So that might have also helped a little bit in terms of people taking earlier deliveries of vehicles, all of that.
But I think your point is right, that on the plastic segment there is certainly a lot of information out there right now saying because of the order intake being low over the last few months that there is likely to be a slowdown now.
Unidentified Participant
So what would be your outlook on the US Volume for the whole year? How should we look at it?
P. Deepak
So at this point it’s just too fluid for us to have a clear outlook. I think it’s more about being flexible. So overall there are reports suggesting that the industry itself, maybe in the US might be down 30%. But that being said, we have some new products also that are getting, that are under testing and will get launched. So we don’t think we’ll see as big of a hit on the same product year on year.
Unidentified Participant
All right, and then last question would be on the new product that is getting, that will get introduced, the 500kg product. So in this product, how would be the realization different from the average realization that we do? So how much would be the realization higher or the profitability would be much higher for this product?
P. Deepak
Yeah, so I mean, I can’t talk about profitability or realization of one specific product. But certainly if you look at the competitive landscape that’s there, this would be a better realization product for sure in comparison to what would be an average product that is made and that’s largely driven by lower degrees of competition both in India and across the world.
Unidentified Participant
Okay. All right, thank you.
operator
Thank you. Sir, the next question is from the line of Kush Nahar from Electrum pms. Please go ahead.
Khush Nahar
Yeah, hi sir, thank you for the opportunity. So the first question was do we expect any pre buying happening in the US and the European region and calendar year, second half, calendar year 25 and 26? Because I think there are some norms which will come into effect from January 27, I think the CHG norm 3. So does that help us in terms of industry recovery and consequently, what kind of growth are we targeting for our company considering the new product launches that we have for the next three years?
P. Deepak
So I’ll address the first part which is on the emission, emission change happening in the US right now. There is still a lot of question marks as to whether given the current administration’s agenda in the US as well as whether they might postpone that from 2027. As of now, I don’t believe that happened. I believe that the emission change will happen in January 2027, there is a significant impact to the cost of the vehicle post that date. So I believe that that’s still on. But there are a lot of expectations within the industry that this might actually get pushed out by President Trump or the administration.
So we don’t know yet to forecast that. You know, a year ago the expectation that was there and the buzz that was there in the industry was that this cost impact is significant enough that the entire 2026 calendar year will be full and will be a record year. And in fact they will not be able to meet the demand in 2026. And so some of that pre buy effect will even come into 2025. This was what a lot of customers were telling us about a year ago. Today we are not hearing any of that. And so instead we are hearing that there is a possibility that there might be a postponement of the norms.
So very difficult to predict it at this point. But if it does remain, then I think the other question mark that’s there is also in terms of the steel tariffs because trucks do use a significant amount of steel. So is there an expectation that this might reduce or this might increase? And so we don’t really know at this point, but it’s very hard to figure out. And there is significant chatter going around that this might get postponed. In terms of your second question that you had, I think in terms of the kind of growth that we expect to see, I think a couple of quarters ago, I put the number of new business that we are working on that we expect to win at a number that would be somewhere between 20 and 60 million dollars a year going forward.
I think right now we believe that that number is probably closer to the 60 than it is to the 20 in terms of growth that we would expect to see out of our new businesses that we are winning, that number would be somewhere close to that higher end of that range that we had talked about six months ago.
Khush Nahar
This will reach the ramp up stage by which year the new.
P. Deepak
I would say probably we’re talking about FY28 time frames. And in fact we do have some programs that we’re working on right now that would even which would reach full maturity in FY29 as well. So one of the parts I mentioned briefly in my speech was the electric power steering. And so this is a program that will launch in early 2028. And so we really see the impact of that even in FY29. But I think overall things are quite positive on other fronts.
Khush Nahar
Right, sir, thank you. So Much. Yeah,
operator
thank you sir. The next question is from the line of Vidit Shah from Spark Capital. Please go ahead.
Vidit Shah
Hi, thanks for taking my question and. Congratulations on a good set of numbers. Just one question on me. In terms of, you know, the CapEx plan, so if we are on cost to do about 1 lakh tonnes this year we get to about 62 or 63% utilization. Any plans that we are looking at setting up additional capacities and if so when do we start money and when do we expect this to come?
P. Deepak
So yeah, so we will be at about, you know, we’re still targeting and we still believe we can achieve that number of 1 lakh tonnes this year. I think, you know, with our existing capacities that are there, I think as I mentioned a lakh in 25, a lakh in 30 as well is very much in the feasible range. I think we’ll have to do a little bit of debottlenecking, automate a few things, things like that. So no major in terms of whether it’s Greenfield or Brownfield that we are anticipating that is required to meet our growth for the next two years, I would say maybe we might start, if the growth opportunities continue the way that going, we would start thinking about it in about a year and maybe you know, because it would take about a year and a half or so to actually execute.
So I think we’ve got, we still have significant headroom including the fact that, you know, we can add additional furnaces in our existing plants and increase our capacities by another, produce another, you know, 40,000 tons or so. So we should be in quite good shape that way.
Vidit Shah
Okay, understood. And the additional 40,000 tonnes, what sort of CAPEX would that require?
P. Deepak
So again it would be a little bit more product specific depending on exactly the kind of products that are there. So there will be, you know, so depending on that there might be some specific equipment that’s required but in general, you know, it would only for the extra 40,000 tonnes or so it would only be about this point, you think it’s 50 crores or less.
Vidit Shah
Okay, understood. So we continue with you know, the maintenance capex of about 30 crores for the foreseeable future with potentially some people debottle making investments.
P. Deepak
Yeah, yeah. If I am coming back at this point and telling that investing in a new facility it means that undoubtedly going to be a huge businessman. That’s okay.
Vidit Shah
Thank you so much for these answers.
operator
Thank you sir. The next question is from the line of Ajit Sethi from Eco Content Solutions. Please go ahead.
Ajit Sethi
Thanks for the Opportunity, sir, previously we had given a guidance of EBITDA per kg of 15 in FY27 and we have achieved 14.7 in FY26. And going forward we have new products in our pipeline which will come in Q4 or Q1 and FY26 and which are of better margin. So what kind of EBITDA margin improvement we can expect?
P. Deepak
So I mean, so like I think we’ve been talking about getting to 15 for the last three years or so. Right. I think we want to get there and sustain it. But at the same time, with a lot of these new products that are coming in, we do expect that the initial days will be a lot more challenging because these are very complex products that we are producing for the first time. So there are going to be manufacturing challenges that we will have to overcome in the short term once these products launch. But going beyond, I think we would like to push that number forward.
So what does that mean exactly? Would we want to push 15 up to 18 or 20? Absolutely, that’s what we would want to do. But we don’t have a specific time frame that we would put in front of that.
Ajit Sethi
Okay, helpful. And sir, in the previous call we have guided 80% capacity utilization in FY 2627. Sorry. And we are staying with that guidance, right?
P. Deepak
No, I don’t think we said for FY27, 80%. I don’t believe that we. Yeah, so I think what we’ve said is what we can achieve is about 190% of our overall capacity. So without any Capex, we would be able to get to about a lakh and 30,000 tonnes or so approximately, other than, you know, the regular maintenance Capex and some automation Capex and all of that. So. But I don’t believe that we did that for FY27.
Ajit Sethi
So just to confirm, we can do 1 lakh 30,000 volume in FY27. Right.
P. Deepak
I mean maximum possible is that? Right? Maximum possible is that. But I think that’s overly aggressive to say that that’s what you would expect to do. I don’t think that that’s the. That’s a fair expectation.
Ajit Sethi
Okay, interesting.
operator
Thank you, sir. Ladies and gentlemen, to ask a question, please press star and 1. Now, participants who wish to ask questions may please press star and 1. At this time. The next question is from the line of Kush Nahar from Electrum pms. Please go ahead.
Khush Nahar
Yeah, thank you for the opportunity. Again, how much would be our machining percentage in our product basket and is. There any target to increase that.
P. Deepak
So if you look at our machining, we actually outsource all of most of our machining. I would say probably about 90% of our machining is outsourced and about 70% or so of our overall products are supplied to our customers in a machine condition.
Khush Nahar
Right sir. Thank you.
operator
Thank you sir. The next question is from the line of Saket Kapoor from Kapoor company. Please go ahead.
Unidentified Participant
Namaskar Deepak. Namaskar Shivasar. And thank you for this opportunity. And thank you for walking the talk also and for a detailed conversation. Am I audible, sir?
P. Deepak
Yes, I can see.
Unidentified Participant
No, thank you sir. Firstly, when you mentioned about the tariff implementation to be the total, it will be a pass on to your customers. So as a value proposition what percentage do casting forms to the total cost of the vehicle? Sir.
P. Deepak
I mean if you look at what we are doing, let’s say for example the components that we are doing that are going into the vehicle, you know, that would, you know, let’s say on a big class A truck that’s probably selling at about $200,000. You know we are talking about maybe $300 or something in that range. 300 to $400 range.
Unidentified Participant
Okay for 25%. Yeah. So 25% would be making it from say 300 to 375. So that would not be a very major shift. That is why the reason that gives you the confidence that it will be a pass on incomplete.
P. Deepak
So I mean the pass on I think has a lot more to do with competitive dynamics. Right. So if you look at, you know, I believe that if you were to look at a US supplier of these products and say what is the cost difference between us and them today I believe that number would be in excess of 25%. The other part of it is if you were to look at the capacity that’s available for somebody to say okay now I want to start making this in the US that capacity is not available there. And I do not see anybody investing in this capacity.
And honestly nobody has really invested in any capacity to produce iron castings in the US in any significant way in the last 30 years. So I don’t see. I believe that the tariff will also change that significantly.
Unidentified Participant
Sir, we did export for the first quarter valued at 115 crore. So taking into account what was the peak number sir, in terms of the value of export and for a year as a whole with our tenants closer to 1 lakh. What should be, what should be eyeing. What should we be eyeing in terms of this number to shape up
P. Deepak
So. I think the highest that we have done in a quarter in terms of export is about 126crores. I believe that’s the highest that we’ve done in terms of the year. Like I said, this year the challenge is going to be with all these tariffs as well as some of the forecasts that we are seeing. Sorry, 129 crores was the highest export that we’ve done in a quarter. But we are a little uncertain. Right. We think there’s going to be a lot volatile. I think we’ll see some very. We might see a four quarter, that we might see a significant bounce back the following quarter. So we don’t really this year is going to be a lot more harder to predict just given the amount of uncertainties that are there.
Unidentified Participant
But still we have the visibility for reaching the tennis to for 1 lakh. That is including domestic and the export mix that that is what we should be emphasizing the same.
P. Deepak
That is exactly what we’re.
Unidentified Participant
Okay. And and then lastly on this part. Just a second sir. If you could give me just a number for the damages sir, for this, this quarter quarter F. FY26 the comparable number for FY25 and the last quarter numbers in that manner please. And what are we expecting in terms of tonnages for the current quarter? We are already one month into it.
P. Deepak
Yeah. So our production and sales quantity for the last quarter was actually 22,000 ton.
Unidentified Participant
Okay. And the comparable number?
P. Deepak
Yeah, oh, first quarter. 2313 production and dispatch 2131 6.
Unidentified Participant
Okay. And what are we expecting for the current. Yeah,
Unidentified Participant
first quarter.
P. Deepak
First quarter of last year production quantity was 18,994 and sales quantity was 1999.
Unidentified Participant
And taking into account all the factors, what how is the current quarter shaping up in terms of tonnages? In terms of 22,000 some number which we did for Q1. What is the likelihood?
P. Deepak
I think given that tractor demand at the moment at least looks strong. We’re about a third of the way through the quarter. We expect it to be fairly similar but the mix will be a little different. I think we’ll see a stronger quarter tractor percentage happening in this quarter and probably a slightly lower FNHCV as well as export percentage in this quarter. And then I think in Q3 then we will see probably the reverse of that happening.
Unidentified Participant
Okay. And lastly on the efficiency part, so for this quarter, the other expenses line item as a percentage of sales have shown have shown a good downward trend. So are these the effect of the efficiencies which we were talking earlier and how is the power and fuel mix going to be and what type of gains or efficiencies we should build in going ahead.
P. Deepak
So I think there’s a couple of things. One, I think it’s been a pretty good year in terms of generation on renewable energy. In terms of power and fuel, I think we will see this year will probably be our highest percentage of renewable energy. We have some new investments also that are coming online in the wind and solar space that will help us with this. I think overall other expenses were better controlled. I think. I think it’s more of. Yeah, more of a
S. K. Sivakumar
product mixing and.
Unidentified Participant
Yeah, yeah. And last point is against on the class eight part and I joined the queue. So if you could just explain what were you trying to conclude from the Class 8, the tariff on aluminium and copper? I just mixed it up, sir. If you could just explain in this an understanding and how it was going to impact us, sir.
P. Deepak
Yeah. So originally on aluminium and steel, they put a 25% tariff, I believe, and then at one of the rallies, then Trump has increased that number to 50% tariff on imported aluminum and steel. And the US doesn’t yet have enough capacity to produce all of the steel that it requires. So because of that, there is an increase in the steel prices that’s there in the US market. And because steel is more expensive, obviously the cost of making steel products is more expensive and therefore the cost of the truck, which uses a lot of steel products, is more expensive.
So as a result of all of these, the cost of the trucks have gone up and some of this, majority of this is getting passed on into the pricing of the truck. So if the price of the truck goes up, obviously it impacts the demand. And so that’s. We are seeing that there are. There are forecasts out there that show fairly significant drop in orders as well as a forecast for future orders on trucks because of the increase in the truck price. So we will have to wait and watch and see exactly how it materializes because these are fairly cyclical commercial vehicles.
These classic trucks are fairly cyclical, have pretty big peaks and valleys. But at the moment, you know, the forecast doesn’t look very positive on the sales numbers. Right. And as I mentioned, I’m not concerned about us losing any business in terms of our share of business, but I do have some concerns in terms of what the overall market itself might degrow significantly. So that’s something that we’re watching closely.
Unidentified Participant
Right. Right, sir. Thank you, sir, for all the elaborate answers and congratulations on Delivering the same. And all the best for the AGM scheduled today afternoon. Thank you and all the best to the team. If Shiva sir can give me any any change in the net debt number. Sir. And what are the current maturity that. Could be
P. Deepak
currently repayment would be about 39 crores. Net debt as on 30th June it’s about 250 crores.
Unidentified Participant
Any plan to reduce it now with the improved cash flow or we will keep that a buffer for working capital requirement.
P. Deepak
Yeah.
Unidentified Participant
Thank you sir. And all the best.
operator
Thank you sir. Before we take the next question we would like to remind participants that you may press Star and one to ask a question. The next question is from the line of Ajit Sethi from Eco Quantum Solutions. Please go ahead.
Ajit Sethi
Thanks for the opportunity again. So we will be doing 1 lakh 10 volume in FY26. So what kind of volume growth we are expecting in FY27? 26. 27.
P. Deepak
Yeah. I think it’s a little early to estimate that given you know we’re still developing a lot of the products that will come into production and still little uncertain in terms of how the markets look. I think our goal would be to target at least a 15% growth if not more. But like I said this is a very forward looking statement in terms of what we would want to do.
Ajit Sethi
Okay.
operator
Thank you sir. The next question is from the line of Vinay Mota from an individual investor. Please go ahead.
Unidentified Participant
Sir, with this duty of 25% will. It impact our margins in Q2?
P. Deepak
So we believe that all of this will get passed on to the customer. That is what we expect to see. I think I did mention earlier that there might be some impact in terms of overall volumes as I mentioned. But I don’t believe this will impact our share of the market or it will impact in terms of the margins of the specific product. There might be a small time lag of a month or two between the tariffs and getting notified versus when we get compensated. But we don’t think that also we think is very unlikely.
Unidentified Participant
Okay, thank you.
operator
Thank you sir. The next question is from the line of Shubham from RV Investments. Please go ahead.
Unidentified Participant
Hello sir. Am I audible?
P. Deepak
Yeah Shubham, you are audible.
Unidentified Participant
So what are your projections for the. Revenue in terms of monetary numbers? Like you have said 1 lakh volume. But can I get the numbers?
P. Deepak
So I think if you look at it from a revenue perspective, you know I think we are averaging at about 150 rupees per kilogram. So you know 1 lakh tons will roughly translate to about 1500 crores or so.
Unidentified Participant
And what about the order book we have in our hand?
P. Deepak
We don’t really talk about order book because it changes really from month to month as our customer schedules change. So typically they give us an open purchase order and then, you know, every month based on their production plan, their sales plan and their product mix, we get the order for the specific part. So this is not a specific order book number that we normally refer to.
Unidentified Participant
And then out of this 1 lakh Tony projects how much will be from exports in US.
P. Deepak
So I think if you look at the number last year in terms of from a revenue perspective, it was about 36% was our overall export revenue. We think we hope it will stay something in that ballpark this year. Next year we think it will have a fairly big jump. But this year I think it will be probably in a similar kind of a ballpark.
Unidentified Participant
Thank you.
operator
Thank you, sir. Ladies and gentlemen, to ask a question, please press and one now. Participants who wish to ask questions may please press star and one at this time. That was the last question for today. I now hand the conference over to Deepak sir for closing comments.
P. Deepak
Thank you, Palav. Thank you everyone for joining us today. We appreciate your continued trust in Nalcast. We remain focused on executing our strategy with discipline, driving innovation and expanding our exports, as well as improving our operational leverage. FY26 is about building a strong foundation and we’re confident that the groundwork late this year will translate into robust growth and value creation in the years ahead. Thank you all very much.
operator
Thank you, sir. On behalf of Nelcas Limited, that concludes this conference call. Thank you for joining us. And you may now disconnect your lines.