Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Orient Electric Ltd (NSE: ORIENTELEC) Q4 2026 Earnings Call dated May. 08, 2026
Corporate Participants:
Ravindra Singh Negi — Managing Director & Chief Executive Officer
Analysts:
Dhruv Jain — Analyst
Aniruddha Joshi — Analyst
Unidentified Participant
Rachna Kukreja — Analyst
Natasha Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The Orient Electric Limited Q4FY26 earnings conference call hosted by Ambit Capital. 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Dhruv Jain from Ambit Capital. Thank you. And over to you sir.
Dhruv Jain — Analyst
Hello everyone. Welcome to Orient Electric’s 4QFY26 earnings call from the Management Today we have with us Mr. Ravindra Singh Neghi, Managing Director and Chief Executive Officer, Mr. Arvind Batts, Chief Financial Officer and Mr. Sambrap Jain, Head of Investor Relations. Thank you
Ravindra Singh Negi — Managing Director & Chief Executive Officer
And over to you sir for
Operator
Your
Ravindra Singh Negi — Managing Director & Chief Executive Officer
Opening remarks. Thank you Dhruv and a very good evening to everyone and a warm welcome to Orient Electric’s Q4 and full layer FY26 earnings conference call. Thank you for joining us today. I will begin by outlining the operating context for the quarter followed by our performance highlights and key actions that we executed during this period. During the quarter, industry’s operating environment was primarily affected by persistent commodity inflation, ongoing labor shortage and gas supply disruptions resulting from the West Asia crisis.
Additionally, a softness in demand emerged coinciding with the unseasonal rains leading to a slow start for cooling categories. Elevated channel inventory prompted dealers to approach replenishment with caution. These challenges are expected to remain important factors to monitor going forward. Amid this unprecedented situation, we delivered a double digit revenue growth in quarter four and further improving our EBITDA margins. Revenue from operations stood at 948 crores up 10% year on year supported by broad based momentum across our portfolio.
This performance reflects a disciplined execution of One Orient approach anchored in our three wall strategy that focuses on multiple growth avenues while extracting synergies from our established ecosystem underpinned by premiumization, innovation, diversification and operational discipline. Importantly, our diversification engines continue to scale improving the quality and resilience of growth across both lighting and ECD portfolios. Lighting and Switchgear remains a structural growth engine delivering 16% year on year revenue growth driven by distribution, expansion, portfolio premiumization and steady market share gains in Consumer Lighting the consumer lighting business witnessed a double digit growth with a meaningful improvement in volume to value conversion.
Our share of high value luminaries expanded to 68% versus 63% last year supported by strong traction in key premium categories. Professional luminaries were largely flat this quarter. However, we continue to see a strong project inquiry pipeline across street lighting and projects. Our emerging growth engines, switchgear and wires scaled well delivering high double digit growth. Wires doubled air on air while switches and switchgear sustained a good momentum as we accelerated our electrician engagement initiatives and leveraged our fans and lighting distribution ecosystem for attractive cross sell in the ECD segment.
Revenue grew 7.6% year on year despite softness across the industry. Growth was led by a strong on ground execution in our DTM states driving deeper penetration and market share gains. Fans delivered a high single digit growth outperforming peers driven by our distribution strategies and continued focus on premiumization and product development. Our BLDC portfolio grew over 50% year on year and now contributes 25% of domestic ceiling fans revenue while our overall premium mix increased to approximately 35% of domestic fan revenue up from 30% in the previous quarter.
Premiumization and innovation led launches remain a core pillar of our growth. A key highlight of the quarter was introduction of Aero O2, India’s first oxygen enriching sealing fan powered by advanced Bioxy Plasma Ion technology. This breakthrough innovation goes beyond air circulation to deliver fresher, healthier air across all seasons. The SAMVAS platform launched earlier this year has further improved service delivery experience by enabling deeper consumer insights and faster issue resolutions.
This also demonstrates our commitment to consumer centricity, ensuring that customers receive prompt and personalized support at every touch point. Our appliances portfolio sustained its upward trajectory with strong traction and heating and garment care appliances and delivered high double digit growth on our E Com platform. Our overall E. Com business scaled with market share gains delivering high double digit growth supported by a strong assortment of effective digital engagement and healthy consumer traction.
Quick Commerce now contributes 10% of our digital channel. During the quarter we scaled our presence on BigBasket and now covering all major Quitcom platforms. Our exports business also grew at a double digit rate, expanding our international presence across key markets. However, we are closely monitoring the geopolitical tensions in West Asia to manage any potential implications proactively. Operational discipline remains central to our approach. In the context of commodity inflation and the star rating transition, we implemented calibrated price actions of Approximately upward of 4% in Q4.
Our Sanchez program continued to deliver tangible benefits translating into 68 crores of cost savings during FY26 and supporting margin resilience. Gross margin for the quarter stood at 31% impacted by commodity inflation. Despite this, EBITDA margin improved to 8.2 and absolute EBITDA at 77 crores up 15.8% year on year. PAT stood at 40 crores, up 28.9% year on year reflecting benefits of operating leverage for the full year. Revenue grew to 3,326 crores, up 7.5% year on year. EBITDA increased to 229 crores, up 12.4% year on year and PVT before exceptional items stood at about 139 crores, up 24.2% year on year.
Overall, our FY26 performance validates a long term strategy centered around premiumization, innovation led differentiation and a structured structurally strong go to market and service ecosystem supported by sustained investments in brand building and an accelerated digital first approach. As we enter FY27, our priorities remain consistent around the three world strategy which focuses on scaling our diversification engines, accelerate premiumization and innovation, deepen distribution and service capabilities and drive disciplined execution to strengthen profitability.
We will continue to drive mix improvement, cost discipline and execution rigor while staying agile to commodity pressures and regulatory developments. We expect the demand to improve in Q1 supported by a forecast of a hotter and more prolonged summer which could drive a late season surge in demand across fan and cooling categories. We implemented a calibrated pricing actions early in the Q1 quarter to address commodity price inflation and we will continue to evaluate further steps to offset the impact of recent global disruptions.
While cost recovery remains a priority, but we are conscious of preserving competitiveness, our approach will therefore remain measured and responsive to market conditions focused on protecting margins while retaining and gaining share. With these remarks, I would like to open the floor for your 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 the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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. Our first question comes from the line of Aniruddh Dajoshi from ICICI Securities. Please go ahead.
Aniruddha Joshi
Yeah, thanks for the opportunity and congrats for good set of numbers
Operator
Amid. So the price hike of 4% in fans seems to be very low given the inflation in input prices plus the be non change. So how much more price hike is required to pass on the entire incremental cost burden? Question number one. And secondly you have mentioned about market share gains in France in the presentation. So if you can give more color on that means whether the market Share gains are in like the ceiling plants or BLDC or Innovate TPW and or overall and any region wise color also if you can give either the direct market whether we have gained or other markets we have gained.
So that will be helpful. Yeah, thanks.
Ravindra Singh Negi
Thanks Anarud for your question and let me just step back and tell you about the 4% that I spoke about is something that we took about 2.53% in January, then we took another one 1.5% in March and in April we’ve taken about close to 6% price increase. So that’s how we’ve staggered it. So the 4% or little upward of 4% that I spoke about is only for quarter four and if you look at it while star ratcheting and other things had its impact but it’s for us the incremental impact was slightly lesser than the industry because our products were slightly sped well and a part of our portfolio didn’t have to go much of a change.
So that’s where I would give the first part of the question. And I’ve already explained that 6% is something that we’ve taken as an industry. I don’t think so because the situation is so volatile the price close watch on the price and commodity price inflation is being kept and if there are any further actions that needs to be taken we will take that. In terms of market share gain we’ve gained about 3040 basis points and this is all a third party report that we all subscribe to. The gain has been slightly secular for us if you look at it in our portfolio and efforts.
It’s not that we’ve just driven BLDC in seeding plan and we’ve not upgraded our portfolio on exhaust or tpw. So it’s been slightly secular across different channels, across different markets. There’s been some up and down in the regions that you would say but I would say by and large it’s a very consumer confidence which is coming across different channels and different whether it’s digital or offline channel that we’ve seen. As we move further we’re launching some more products which are going to be industry first like the arrow 02 that we’ve done and this will give us further gains as we move forward in market share trust.
That answers your question, Anuradha.
Operator
Yeah, this is very helpful. Many thanks.
Ravindra Singh Negi
Thanks.
Operator
Thank you. The next question is from the line of Manoj Ghori with Equidistance Capital. Please go ahead.
Dhruv Jain
Yeah. Good evening sir. Thank you for the opportunity. So my question is on the direct distribution model where we have replaced super distributors or the massive distributors and we are aligning our distribution model into those respective states, how the progress has been during the year if you can quantify with few examples for a couple of states, how the growth has been versus earlier and probably if you can highlight if the entire benefit has been seen or we expect some more benefit to kick during FY27 also from this market.
This is my first question.
Ravindra Singh Negi
All right, so Manoj, let me just take that question and as we said, you know DTM or amd, these are two go to market models that we have and unlike any other company we have the sole advantage of toggling between any of the two models which works well for that particular market. What are we wanting to deliver? We are wanting to deliver a deeper distribution. We are wanting to deliver a better connect with the retailers. We are wanting to do premiumization. We are wanting to establish better consumer service and authenticity resulting in a volume value and a market share gain.
So wherever we are seeing this we take a model and that works well there, we continue with it. So it’s never going to be either a DTM or an md. It’s going to be a balance of both provided either of the model delivers what the expectation on these few parameters that I spoke about. Last year we did a Pune and Vidarbha belt. So that market has been doing well and now as we enter into the season we’ll see the real benefits of our DTM there. Otherwise for all the markets that we’ve gone and done DTM we’re seeing traction and I said they’ve grown well in quarter four.
Also we don’t disclose market by market growth but by and large I can tell you that these are the markets where we’re getting market share gains and we’re growing faster than the industry.
Dhruv Jain
Okay, the second question is so even if you look at our discussion has been revolving around fans, lighting which have been our core product categories and historically we have entered into many new categories like air coolers or even wires or even appliances like mixers, water heaters and all. If we look at relatively I am sure like even you would agree to that, that the progress has been relatively been slow as compared to the traction that we have built in fans and lighting. So what are the plans ahead and probably this will be the categories which will be driving faster growth for the company.
So what is the thought process over there and how we are targeting to scale up these settings?
Ravindra Singh Negi
You know, I don’t know whether we’ve met and I’ve spoken to you in person or not. We’ve always now said there is a three wall strategy, diversified portfolio approach. We are dialing up all parts of our business and looking at either the specifier or stroke or go to market for that specifier which could be a contractor, electrician or architect or interior designer or end consumers. So we are looking at all three parts of the business. We start scaling up switch gears, switches and wires and we’re seeing a large traction there.
We’ve spoken about high double digit growth that we’ve seen for us. We’ve simplified our portfolio in appliances and we’re very much focused on appliances which gel with our electrical trade. So we’ve grown by a very high double digit gained market share across different channels in water heaters, in heating categories and some of the garment care categories. So while we look at appliances at an overall value and then pass our judgment on it. But these are parts of those that we are driving well.
So from an overall perspective we are taking not just one approach of driving fans only or one demonstrated success that we’ve shown in lighting which they’re saying different parts of our businesses will be driven because the end consumer or the link to the end consumer is different. And that’s how we’ve been driving. So maybe one of the conversations next time we meet, I’ll explain to you in detail about our three vault strategy.
Dhruv Jain
Thank you and all the best.
Ravindra Singh Negi
Thank you, Anuj.
Operator
Thank you. Ladies and gentlemen, to ask a question, you may please press star and one. Our next question is from the line of love Gupta with Countercyclical Investments. Please go ahead. Hello
Unidentified Participant
Sir. Thank
Operator
You for the opportunity. So firstly I wanted to understand why our working capital days have increased. It’s gone up to over 30 days from 23 days last year. So what was the reason for the same? And secondly, you know, we had guided for double digit margins over the next six to eight quarters but we have been unable to achieve the same. So what was the reason for the same and when can we expect to reach double digit margins?
Ravindra Singh Negi
So let me just tell you about the working capital. If you look at it, there’s been a little bit of inventory that we’ve built up and our payables have gone up a little bit. So overall, if you look at it, that’s where the reason for our working capital days going up largely from perspective that we were building up. We saw the disruptions in supply and that’s why we were building up a little bit of inventory for us. So that’s on the working capital. The other is in terms of. Sorry, can you just comment, repeat the question.
Okay,
Operator
Yeah,
Ravindra Singh Negi
Sorry. On the double digit ebitda. So look, we’ve always given a guidance of saying look, 32 to 34% should be our gross margin. Given the sudden impact of West Asia conflict, given the sudden supply disruption and immediate commodity price increase we couldn’t, none of us in the industry could take a price increase and all of the calibrated increases happened in the month of April. So it’s impacted our gross margin I would say about 150 basis points. Overall if you look at it, there’s been a lot of effect on our cost measures that we’ve taken.
Our operating EBITDA has improved by almost 40 basis points to 8.2 and hence we are committed towards our path to 10 double digit margin. So that’s what I can tell you. It’s been a very challenging environment. But yet in that challenging environment we’ve improved our EBITDA margins.
Operator
So can we expect to reach those levels once the situation starts to normalize and supply chain is efficient again
Ravindra Singh Negi
Given the commodity inflations to subside and supply the substance to go from structural perspective we are trending towards a double digit margin and our actions are cost discipline, our execution trigger, our multi engine wrote all that is sinking in. Well to take us there provided some of these unprecedented unanticipated surprises don’t come in hit the industry the way it has hit the industry now. But given that also you know we’ve improved our EBITDA margins by about 40 basis points.
Operator
Answer could you quantify what is the price hike taken this quarter across our portfolio and if there are any further price hikes planned.
Ravindra Singh Negi
So I just said, I responded back to Anirudh and we’ve taken about approximately 6% price increase in fans, about 6%, little over 6% in lighting. So by and large even in Switzgaz we’ve taken about 6% is literally almost every 15 days, three weeks that we’ve been taking price increase. So we are very conscious of the fact that beyond a certain point there has to be commodity price inflation that needs to be passed on and we’ve done it in a calibrated way.
Dhruv Jain
Ankur,
Ravindra Singh Negi
Lastly, sorry to
Operator
Interrupt. We request you to please rejoin the queue if you have any further questions. Thank you. Our next question is from the line of Somil Mehta with Kotak Asset Management company. Please go ahead.
Aniruddha Joshi
Yeah, thanks for the opportunity and congrats on a good set of numbers. Mr. Neghi A few questions from my side in terms of the project Sanchay. Obviously we’ve seen significant cost benefits over the last two years. This year also it’s about 68 crores. Do you believe the large part of the cost efficiency is behind us? And within that 68, can you broadly classify how much is material and how much is outside of material in terms of cost savings?
Ravindra Singh Negi
So so many banks, you know, we started this Sanchez program about three, four years back and the first year and the second year we thought we’ve juiced it, maxed it out. But every time we look at it there are opportunities that we find. This year we’ve done about 16 and there are multiple levels that we look at. There are VAVs that we do in the product, there are renegotiations that we do and there are process re engineering that we do. So I can’t disclose what is contributing work but there is a summation of all that that gets quantified at 68 crores.
But as we move on, this is a continuous, so it’s not a destination but it’s a continuous journey that we are on. Commodity prices go up, you look at different alternate materials. So that’s in a way Sanchez keeps us committed to that double digit EBITDA journey and keeps us on our toes. So that’s a very structured program reviewed at the highest level across the organization. There are people who are committed to deliver this.
Aniruddha Joshi
Okay. Okay. My second question is with respect to the ecd, would the contribution of fans in the overall ECD would have gone up state flat? I am asking on a y y basis from FY26 to FY25
Ravindra Singh Negi
Would be by and large in the same range for ECB in Japan.
Aniruddha Joshi
Okay. And would it be possible?
Ravindra Singh Negi
So we’re dialing up the water heaters, we’re dialing up government care, we’re dialing up rooms and quarter four, little bit of extended winters also helped in that case.
Aniruddha Joshi
And would it be fair to assume that there would be a mid single digit volume growth in fans as well or the number could be even higher to that extent.
Ravindra Singh Negi
Yeah, there is, there is volume value, both that we got it and largely if you look at it, a lot of our efforts in terms of new product development, which now contributes almost 24% of our PAMs revenue and a real focus on premiumization that’s helping us get a volume value synergized output.
Aniruddha Joshi
Sure. And my last question, in terms of the new series of fan which we have launched, what would be the broad range pricing point Starting pricing point and which all key markets is where we have introduced as of now that would be my last question.
Ravindra Singh Negi
So there’s a series I’ll preempt a little bit because some of this has already hit the market. We’ve done series of India’s first innovation that we’ve done.
Aniruddha Joshi
So
Ravindra Singh Negi
Our arrow O2 which is oxygen enriching is in the range of about 16,000. That’s gone to key metros and key tier one towns and that’s a high price product. Then there is Aero Siren which is India’s most or India’s quietest fan which is under 50dB of that’s going to be across as we speak. It’s getting rolled out across the country. That’s in the range of about 8,000 mop. And the third is also what we’ve done which is a great innovative and coming from a deep consumer insights and understanding is India’s first inverter stroke, a battery backup ceiling fan.
It can give you a battery backup of almost 6 hours car at a certain speed. So that also is getting rolled out. So some of this plus we’ve got into PLDC and tpw. There’s a huge range which is coming and everything will be at a different price range. But what we’ve done is that we spent a lot of time solving for consumer problems, solving for consumer need and I think that’s what is going to reflect not only our product but also in the touch, feel and the form factor that you’ll see in our products.
So overall the design language is premium. Overall the consumer benefits stemming from the consumer insight. So huge amount of effort which has gone in fans and in lighting also. And the similar thing that you’ll see in switches and switchgear also coming in a similar approach that you’ll see in some of the products that we’ll roll out in say our water heaters or a room heater category. So you’ll see a consistent grand synergy or a language design language, an approach that will start coming in all our products.
Aniruddha Joshi
Perfect, perfect. Thank you so much. And all the best for subsequent quarters.
Ravindra Singh Negi
Thank you so much.
Operator
Thank you. The next question is from the line of Rachana Kukreja from simpl. Please go ahead.
Rachna Kukreja
Thank you for the opportunity. I have few questions but my first question is our ambition was to improve the mix of premium products as a percentage of domestic fan mix from 30 to 40% over a few years. And in FY26 premium products contribute 35% though the premium mix has improved by 5% our gross margins have remained stable in FY26 despite taking price hikes to offset inflation. So if you could provide what have restricted our gross profit margins improving despite the benefit from better product mix and price increases.
Ravindra Singh Negi
Yeah, a good question. You know I said it, you know I said it earlier also right now that the pricing or the calibrated price increases that we’ve taken, not only us but for the industry that has taken it is not offsetting the commodity or overall inflation that’s hitting. So while commodity becomes the headline inflation, but there are so many other inflation or a cost increase that starts to come in. Shortage of labor resulting into low productivity is a cost inflation. You know, gas going up or the commercial LPP unavailability and the price going up is a commodity with cost inflation.
And then some of the other things that which impact the industry. A lot of our for the industry, the supply ecosystem is in the north. Haryana increased the minimum wages by 35% up followed by 24%. That’s the cost inflation that comes in. So while we keep looking at commodity and say oh commodity equal to commodity, the cost cost of running the business or cost of production across categories across the industries has really gone up while we’ve taken calibrated increases. All of it by the industry has not passed on to it.
And if you look at some of the peer results and all while operating or it has dropped, it is actions like focus on premiumization which is helping us improve our EBITDA given the fact that we still have gap between the cost increase and what we’ve taken from the consumer.
Rachna Kukreja
Okay, my second question would be if you could provide some color on the Hyderabad plant and its current utilization levels, has it reduced delivery time and cover up any inventory constraints in south and western markets? And also Hyderabad plant had an idea of doing the export business which has grown as per the investor presentation. And within export, how has the growth for TPW fans been? And has the mix of TPW fans improved for us? And correspondingly, has any growth in exports contributed to our gross margins?
Ravindra Singh Negi
Okay, so too many questions rolled into one, but let me just try and answer. So largely Hyderabad is now seeing traction in the utilization because a large bit of our production of PBW is in Hyderabad. Currently it’s split between Kolkata and Hyderabad. We’re seeing our PPW production going up. We’re seeing early signs of PPW traction coming in South. South has good showing green shoots of good summer. So too early to say, too early to conclude, but that’s where we are seeing the traction happening exports have done well.
We’ve grown by double digit on exports. PPW is a significant part of exports but exports is also a large part on ceiling fan. So and we do both from Hyderabad moving forward it will be a good hub for us continue to produce for export markets. So overall we’re seeing benefits of Hyderabad being there. The factory being in Hyderabad. It also solves for a large part of our logistics, cost and speed to market much faster than having a factory either at Farida Bath supplying or Kolkata supplying to South.
Rachna Kukreja
Okay, one last question. Sorry to interrupt
Operator
Ma’. Am. We request you to please rejoin the queue if you have any further questions. Thank you. Our next question comes from the line of Natasha Jain from Philip Capital. Please go ahead.
Natasha Jain
Thank you for the opportunity and congratulations sir on a good set of numbers given an extreme volatile market. So three quick questions. One I wanted to understand so fans is not as much a seasonal product as say a room ac. So on that lines could you help us understand what is the broader revenue strength split for fans on a four calendar quarter basis?
Ravindra Singh Negi
Okay. So you know if you look at it and you could look at this data from absolute consumer angle first and I think that’s where we need to look at it and not from a primary perspective because those two could have a different cycle. From a consumer angle, about 45% of the offtake happens between first March to the end of June. That’s the consumer cycle. 55% of it happens in the balance of the year and it could vary from region to region. If you look at it from a fourth quarter it is not a very uniform from a primary perspective because when you mirror the cycle of production, mirror the cycle of trade loaded.
So those may not be the ideal comparisons to do in between around the worry time you get a little bump in consumer optic again. But otherwise depending on whether you’re doing a first time buy or you’re looking at the economy, economy gets little skewed related to season. But when you look at premium and into some of the categories like bldc, they are far more linear, they’re far more consumer offtake happens because of upgrades and renovation. So that is far more linear. But from a consumer angle 45% happens between March to June.
Natasha Jain
That’s helpful. So thank you. Second question, could you also throw some light on the channel inventory for cooling products given that summer has actually picked up only from say mid of April are primaries as fast as the secondaries.
Ravindra Singh Negi
So for me to give you a real live quarter one update but quarter four obviously you know, the buildup happens. So there is a build up that happened, but I don’t think so. The buildup happened dramatically higher than any normal year. So quarter four, the buildup wasn’t abnormal, it was a normal buildup. Quarter one, as we speak, there were a period of good two weeks where there were extreme heat in the north and the south as we speak there is south which is going through heat. Partial west which is going on for few last few days.
North is a little cooler than what it is expected. But you know, I won’t comment on here and now data on primary and secondaries right now but whatever we can read about Super El Nino, this could see a little late surge in summers also and a little more prolonged summer that we could see. So keeping our fingers crossed. So hopefully should be a good summer.
Natasha Jain
Got it. And so one last question. I mean given almost all industries are facing abnormal cost headwinds and some are also, you know, it was half there, half not there. Sometimes it rained and sometimes it didn’t. So is it fair to say that at least calendar 26 will be a year of say protecting margins rather than improving? And on that Note, we closed FY26 at 6.9. Consolidated EBITDA and any kind of guidance that you could give us for 27 as well. Thank you.
Ravindra Singh Negi
I would put, you know, FY26 in two halves. The H1 was a real washout. Okay. I don’t think so. The summers have been as weak as what it was last year. When I Look at my H2 and my exit, I’ve exited H2 with an improvement on EBITDA margins. Yes, the challenges on commodities stay there. But all of us are putting our efforts to navigate these headwinds. Our entire focus is to make sure that we are in the premium category where the consumer is slightly more cocooned to the inflation and is and is willing to pay you if you provide it.
You give him a value and a unique and an innovative product. And that’s the entire effort for us this year. And as I said, we are dialing up all parts of our looking at the three wall strategy. Delivering growth from all factors and not just one category. And that’s the portfolio approach which will help us.
Natasha Jain
Understood, sir. This is extremely helpful. Thank you. And all the very best.
Ravindra Singh Negi
Thank you.
Operator
Thank you. Our next question is from the line of Rahul Agarwal from Ikigai Asset. Please go ahead.
Unidentified Participant
Hi, good evening, Mr. Nirvi. It’s been about. My question essentially is a bit long. Is longish. It’s been about two years. You’ve taken over at Orient Electric. I’m sure you have done a lot of changes. We’ve noticed across new product launches, channels, go to market, manufacturing, stuff like that. Looking at 27, I think it’s obviously challenging, everybody knows that. But if we take a three year view, right, Inflation missing in this industry. Right. This question is more on industry and Orient as well that given that pricing is now coming back though driven by inflation and whatever happens from the input cost perspective, a lot of other costs you highlighted already, ultimately this pricing increase helps to absorb fixed cost.
Right. We have this Hyderabad plant sitting in the office as well here where we need to get better some more. Better export demand to utilize better and absorb those costs better. We have this pricing hike happening. Volume growth should pick up because of summer tailwinds last year. Some are bad this year. Summer looks okay. Does it look like an inflection point to you? And the question is more From a fiscal 20 or 29 perspective at 3,000 crores sales, 100 crores profits, do you think getting back this pricing in the industry is very positive for everybody and Orient and incrementally double digit growth with double digit margins is something we should now look at it much positively.
Maybe timing is uncertain, but maybe three years out, fiscal 2829 you actually achieve it purely because now you have pricing tailwinds. So just some context on this please. Thank you.
Ravindra Singh Negi
Thanks Rahul and I remember two years back when we met and you had a little bit of specialism and happy to hear a little bit of optimism coming about Orient from you and that’s helpful. Let me just reflect back of what you call as pricing power. I don’t see it as a pricing power. I think It’s a catch 22 situation that the industry has got into it. And I’m largely reflected from industry perspective right now. It’s a catch 22 situation. When the inflations go up, do you absorb? Do you don’t absorb?
If you don’t, what do you do? If you do, what is that the market can absorb? So I think it’s not a pricing power that is coming. It’s the pricing action that has been taken by the industry which I think is a good step. Whether it was forced, not forced, but it is, I think it was inevitable that nobody could absorb that. When I reflect back on what a real pricing power is, the real pricing power is when you understand consumers very deeply and you are able to give a value to the consumer for which he or she is willing to Pay you.
The effort in orient over the last few years has been to understand consumers become a part of far more consumer centric organization design develop products not just for basic functionality but satisfy the need of a consumer for either a design output which is taking care of the lifestyle need or solve for the tech need that the consumer has. So I think not just fans across all categories we’ve been able to do this. We should catch up and I should take you through are thinking on the three wall strategy and hence once you hear that maybe you’ll be far more optimistic about our journey towards 5000 crore and a double digit EBITDA there.
But we seem to be on the right trajectory but a lot more to do from a consumer expectations and fulfilling the consumer expectations and a lot of wide spaces to cover as I can say say this.
Unidentified Participant
Got it, Got it sir. And to clarify fiscal 27 margin, retaining or increasing margin is going to be a function of a lot of things which how things move forward. But currently the price that you’ve mentioned across categories are those enough to take care of the spot pricing of input and other material is that we should assume that
Ravindra Singh Negi
It is not. And I’ll be very honest with you, the industry has not been able to do. Industry has taken a very balanced view of saying don’t do anything which impacts the elasticity of demand because if demand goes down, to bring that up takes a huge amount of effort. So a huge amount of effort will go towards bringing cost discipline to offset that gap. And that’s what I think over the last look at our cost structures and cost movement you will see some bit of cost discipline coming in our numbers.
That’s what we’ll continue to do. But if the commodity continues to do this and we are forced to take a calibrated price increase, we will not shy away from it.
Unidentified Participant
Go ahead. Mr. Meagy, thank you so much for answering this question and wish you all the luck for the rest of the year. Thank you Raul.
Operator
Thank you. Our next question comes from the line of Love Gupta from Countercyclical Investments. Please go ahead.
Unidentified Participant
Hi sir, thank you for the opportunity again. I just wanted to share that you know we have completed our Hyderabad KPI
Operator
And you know, do we have any plans for a share buyback or something on those lines, you know, instill some
Ravindra Singh Negi
Confidence in the investor community. No, right now, nothing of that said. Once we, if we have anything, we’ll come back and. All right, thank you.
Operator
Thank you ladies and gentlemen. We will take that as our last question for today. I would now like to hand the conference over to the management for closing comments.
Ravindra Singh Negi
Thank you everyone. Thank you for taking your time out and joining us and your questions. Keep us sharp on the tools and also gives us food for thought. So thank you for this and look forward for for meeting some of you in person.
Operator
Thank you on behalf of Ambit Capital. That concludes this conference. Thank you all for joining us. You may now disconnect your lines.