Salzer Electronics Limited (NSE: SALZERELEC) Q1 2026 Earnings Call dated Aug. 11, 2025
Corporate Participants:
Unidentified Speaker
Savli Mangle — Investor Relations, Adfactors PR Pvt. Ltd.
Rajeshkumar Doraiswamy — Joint Managing Director, Chief Financial Officer & Whole Time Director
Analysts:
Unidentified Participant
Vineet Agarwal — Analyst
Deepak Poddar — Analyst
Bhagwat Nayak — Analyst
Kunjal Trivedi — Analyst
Pranjal Mukhija — Analyst
Ankur Kumar — Analyst
Amansingh Sahajsinghani — Analyst
Pratik V.S. — Analyst
Kumar Divyanshu — Analyst
Harsh Saraswat — Analyst
Sahil Bagaria — Analyst
Mehboob Mehta — Analyst
Presentation:
operator
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 the conference call please signal an operator by pressing then zero on your touchstone phone. I now hand the conference over to Mr. Vineet Agarwal from Altibilla Capital.
Vineet Agarwal — Analyst
Thank you Karthik. Good afternoon everyone. On behalf of Aytabulla Maneem I welcome you all to the quarter one FY26 post earnings conference call of Salsa Electronics Limited. This conference call may contain forward looking. Statements which are based on beliefs, opinions. And expectations of the company as of the date of this call. These statements are not guarantee of future. Performance and involve risks and uncertainties that. Are difficult to predict. I now invite Ms. Salvi for opening remarks to be followed by question and answer session. Over to you Ma’. Am.
Savli Mangle — Investor Relations, Adfactors PR Pvt. Ltd.
Thank you Vineeth. Good afternoon everyone and thank you for joining us today to discuss the unaudit financial performance for the quarter ended 30 June 2025. I have with me Mr. Rajesh Jaraiswamy, Joint Managing Director Mr. P. Sivakumar, Assistant Vice President Marketing Mr. Pete Bellary, Assistant Vice President Business Development Mr. F. Venkatachalam, General Manager, Commercial Mrs. R. Menika, General Manager Account Mr. K. M. Murugesh, Company Secretary Mr. Jeetendra Vikariya Non Executive Director Casey Indachee and Mr. Raman, Executive Director Casey Industries. I shall now take you through the standalone financial performance for the quarter ended June 2025.
During the quarter our revenues increased by 25% year on year to Rs. 432 crores from rupees 347 crores in. The previous corresponding period. This growth was mainly driven by higher demand for industrial switchgear and wired cable business divisions mainly on account of high demand products like three phase drive type transformers, wire harnesses, relays and new products like contactors etc. The EBITDA excluding other income was rupees 41 crores a year on year growth of 32% mainly on account of increased sales in higher margin switchgear products and wires and cable business. EBITDA margin for the quarter stood at 10%. Profit after tax was at 18% a year on year growth of 33% while the PAT margin stood at 4% a year on year improvement of 25 basis points.
Moving on to breakup of the revenue as per business division, the industrial switch care business contributed to 55% of our. Total revenues this quarter. This business grew 31% year on year and 14% Q4Q in Q1 FY 26 the EBITDA margin in this business stood at 14% for the quarter. The wire and cables division contributed nearly 41% to our revenues this quarter translating to a 17% year on year and a 27% QoQ. In this division the EBITDA margin stood at 5%. The building product division contributed to the balance 5% of our revenues. Coming to the exports, we continue to see steady growth mainly due to higher sales in north and South America, Europe and Asian countries. During the quarter, exports to Europe grew 19%, Asian countries grew 20% year on year.
For the quarter the export share of our revenue was nearly 24%. The growth in revenue translated to 14% year on year and 20% quarter on quarter. Thank you and I now like to hand over to Rajesh to take us through our business development and the way ahead.
Rajeshkumar Doraiswamy — Joint Managing Director, Chief Financial Officer & Whole Time Director
Thank you Savli Good afternoon and thank you all for joining us today. A very warm welcome to everyone joining this conference call of Sals Electronics Limited for the first quarter ended 30 June 2025. I hope I am very much audible for all of you. I appreciate you all taking time to be with us today. Our results, update presentation and media release have been shared and Savli just shared the financial numbers to you and I trust you had the opportunity to review all of them. I would like to take you through some key updates on our recent developments and our outlook for the future.
We are operating in a very dynamic and rapidly evolving global landscape driven by accelerating infrastructure development, smart new technologies and electric mobility revolution. Indian electrical market is on a steady growth trajectory. As we have told in the last quarter, the market is valued at approximately 14 billion currently and is expected to reach close to 20 billion by 2031 implying a healthy CAGR of close to 6%. Similarly, the broader electrical equipment market is projected to grow at 15% CAGR from the current 95 billion to grow to 25 billion from 2025 to 2029. This surge is fueled by rapid urbanization, renewable energy integration and government backed Infrastructure act initiatives.
There is growing adoption of smart switchgear equipped with real time monitoring, analytics and automation that enables safer, very efficient power distribution especially in the smart city environments. Smart Meter is also seeing significant traction with technology enabling more efficient energy management, predictive maintenance and grid optimization. On the EV charging market also is growing at a breakneck speed. India alone is set to grow from US dollars 92 million in 2024 to US dollars 750 million by 2030, nearly 43% CAGR in the next six seven years, while globally it is heading towards US$76 billion by 2032. OEMs and fuel retailers across the country are expanding aggressively and Tamil Nadu is emerging as a manufacturing hub with major investments from leading players.
From a trade perspective, I think the latest development is the US Tariffs. Post our results we have seen what has happened. While the higher US Tariffs present a near term advent for exports to usa, industry experts believe India’s robust infrastructure, pipeline and manufacturing led growth will will help cushion the impact over the medium term. For Salzer we have a 7% direct physical exports to USA which will have an impact in the short term. Apart from this we also see an impact of approximately 3% to 4% in the indirect business. However, our diversified market percents and product spread will help us to navigate these shifts effectively and sustain our growth trajectory.
Now coming to our key updates on the recent developments, I would like to start on the smart meters in our smart meter business. We remain encouraged by the progress following the rupees 50 crore order that we secured in Q4 of last financial year. While execution in Q1 was limited to approximately 2 and a half crores due to the customer’s readiness for field installation, the product is fully prepared for delivery and the customer has reaffirmed their commitment to clear the entire order in Q2 of this financial year. We expect the next set of 50 crore order to come through anytime in this year, this quarter or in the early next quarter.
That said, I would also like to address the expectations openly. When we had earlier guided towards the possibility of 900,000 crore revenue in smart meter sales, it was based on the then available visibility of tender awards, demand, supply gap and planned deployments by our customers. However, as we entered this business and as the year unfolded it has become clear that the industry wide field level challenges including installation readiness coordination with governments and DISCOMS infrastructure preparedness are impacting actual rollouts for all the players across the sector. You all must have seen various news reports in the previous months about the actual deployment of smart meters being less than 10% of the total demand.
As a result, we revised our revenue estimates for FY26 which has drawn a lot of criticism in the market. We want to emphasize that this is not a reflection of our execution capabilities or market position. Our technology, our capacity, capability and the product readiness remain intact and competitive. Our smart meters have been tested and passed for the highest quality levels in business. In real world, execution often has dependencies beyond our direct control and this is a classic example. We continue to work very closely with various AMSPs and other stakeholders to support faster deployments and we are very confident that the strong underlying demand for this product will translate into substantial growth over over the medium term.
Our commitment to being a leading and trusted smart meter partner remains unchanged. I say that further guidance on this business will be given by us as things evolve over the next quarters on EV Charges as you all know, our initial joint venture in this space didn’t take off as planned, but we didn’t step away. We quickly reworked our approach and have now successfully entered the business on our own terms and we can see the results now. In Q26 we have sold close to 50 charges in Indian market and we are also in talks with large Indian multinationals and other entities for long term partnership for this product.
With the market momentum and our new model of business, we see strong potential to make EV Chargers a meaningful part of our growth story along with our partner company Ultra Fast Chargers Limited Further to entry into speed sensors five years ago. We are pleased to announce now the development of a new temperature sensor tailored for the automotive industry, making another milestone in our product innovation journey. This sensor is currently undergoing validation with two leading tire two automotive OEMs and we are encouraged by the progress so far. We anticipate commencing commercial supplies from Q4 of this financial year which will open up an additional and promising revenue stream for Salter, further strengthening our position not just in the automotive solution space but but also in the H Vac home appliance and medical equipment space, furthering the 192 crore energy efficiency project awarded by Bangalore Corporation last quarter.
We are pleased to share that Salzer, through our only owned subsidiary Salzer EV Infra Private Limited has partnered with our conversational Energy Equipments to form an SPV called Aphelium Private Limited. On May 31st, 2025 this SPV will execute this Bangalore Corporation project which includes implementing our in house developed energy management system and replacing conventional street lights with energy efficient LED lights across parts of Bangalore. Thereby reinforcing our commitment to smart city initiatives and national energy efficiency goals. As far as our subsidiary KC Industries is concerned, KC’s top line grew 10% year on year in Q1FY26 to rupees 14 crores from rupees 13 crores last year first quarter EBITDA was at rupees 2 crore in Q1FY26 and Pact was at rupees 1 crore in Q1FY26.
The EBITDA and PAT margins are healthy for KC. With a strong balance sheet, growing market and operational efficiencies. Salsa Electronics aims to deliver sustainable, profitable growth while capturing emerging opportunities in energy efficiency, electrification and smart infrastructure. I sincerely thank entire Salsa Electronics team for their unwavering dedication and hard work and express my deep gratitude to all our stakeholders for their steadfast trust and support in the company’s journey. This is all from our side for now. I would like to thank you all very much for your time and attention. We can take questions now.
Questions and Answers:
operator
Thank you very much sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask question may press star and one on a touchstone telephone. If you wish to remove yourself from the question queue you may press star and one Again. Participants are requested to use handsets while asking a question. We will wait for a moment while the question queue assembles. Ladies and gentlemen, to ask the question please press star and one on a touchstone telephone. We have a first question coming from line of Deepak Podak from Sapphire Capital.
Please go ahead.
Deepak Poddar
Am I audible sir?
Rajeshkumar Doraiswamy
Yes, very much, Mr. Deepak.
Deepak Poddar
Thank you very much for this opportunity. So just wanted to understand first upon your two businesses on smart meter as well as your DC chargers. Now given the delay you have mentioned and I think we are expecting more orders. But I mean as of now our order book still remains at around 50 crores. So how do we see, I mean this entire year we were looking at some 500 crores kind of execution. So now how should we see it? I mean I will be willing to revise it downwards and so what sort of range one should look at now?
Rajeshkumar Doraiswamy
I think whatever is the guidance that we have given in the last quarter remains in. So we are working to see how we can get to that level of around 400 crores is what we guided last quarter. So we remain there and we are pushing to See how we can get that order. And the recent development is also the Tamil Nadu tender is out and people are going to win those bits. So that will be an additional pipeline for the AMASPs. And we being a local player of manufacturer, we should be having an advantage over the rest of the smart meter manufacturers.
So that’s another thing that is a new development that has happened.
Deepak Poddar
And how big is this the Tamil Nadu one?
Rajeshkumar Doraiswamy
Tamil Nadu, the total tender is around 3 crore meters. Okay. Okay. So there are many, many participants as of now. But we will have to wait and see who wins the big for how many packages. And then.
Deepak Poddar
So won’t you take time? I mean, I mean do you expect Tamil Nadu revenue can come this quarter, this year itself?
Rajeshkumar Doraiswamy
No, I think orders will come in this year, but revenues will start next year because the implementation will start next year. Okay.
Deepak Poddar
Yeah, so that’s what I wanted to understand in terms of if you want, still want to, I mean maintain that 400 crores kind of execution in smart metabolism. But in terms of visibility still the visibility remains.
Rajeshkumar Doraiswamy
Yes, visibility still seems not there today. But we are hopeful of having some visibility in the coming quarters. Okay. Okay.
Deepak Poddar
So what sort of pipeline one can expect, I mean in terms of order pipeline from this 50 crores. Currently we have, I think the call.
Rajeshkumar Doraiswamy
I mentioned that we are expecting the next set of 50 crore order from the same customer anytime this quarter. So once it comes then we will have more visibility from the customer on how he is going to place the order for the rest of the year.
Deepak Poddar
Okay, fair enough. And what sort of EBITDA margins one can look at in the smart meter business?
Rajeshkumar Doraiswamy
We are looking at around 12 to 13% EBITDA margin in the business.
Deepak Poddar
12 to 13%. Okay. Okay. And my second question is on your DC chargers we have sold around 40. So what sort of ASP we see per DC charger and are we still targeting thousand DC DC chargers selling this year?
Rajeshkumar Doraiswamy
Yeah, I think the value per charger is between 6 and 12, 13 lakhs. I think that’s the range that we sell for DC part chargers. And we are also selling AC chargers which is lakh or less per charger. So that’s the value that we are looking at on thousand chargers. I think we are talking to various large entities for a long term partnership. So we expect once that partnerships are understood, the understanding with the companies come through then we will receive volume orders from them. I think that’s where our confidence of selling this volume comes up.
Deepak Poddar
Okay, but this thousand remain intact.
Rajeshkumar Doraiswamy
Yes.
Deepak Poddar
And what sort of margins one should look at in this business. EBITDA margins.
Rajeshkumar Doraiswamy
Ebitda. I think the operating margin here will be close to again around 12 to 15%. But the initial volumes, I think we will not be able to expect that margin because the threshold volumes have to be reached. So it is still a new business, new entity. So we will have to wait. But on a steady long term basis it should be between 12 and 13% again. Yeah.
Deepak Poddar
And this margin at what volume level we can see this kind of margin? I mean currently the scale would be small rate.
Rajeshkumar Doraiswamy
Yeah, I think when we reach a scale of around 60, 70 charges a month, I think they should be able to see this much.
Deepak Poddar
No, no, come again sir. I, I missed that.
Rajeshkumar Doraiswamy
60 to 70 charges a month manufacturing.
Deepak Poddar
60 to 70 charges a month. So this year only we are targeting thousand.
Rajeshkumar Doraiswamy
Right? So we have to reach that. We have to reach that. So until then. Yeah.
Deepak Poddar
Okay. And just my final question is on your tariff side. So. So now have we started seeing the impact of tariff? I think, I mean what sort of impact we are seeing? So can you throw some more like. That would be very helpful.
Rajeshkumar Doraiswamy
Right now I think we are seeing a knee jerk reaction by all the customers because a 50% tariff is way too high for anybody to absorb in the market. So right now I think some customers are taking action of making the shipments quickly before the tariff kicks in. Some customers are postponing their shipments, asking us to hold. So there are multiple things. One, secondly, there is a confusion that prevails among the customers itself not knowing how this is going to impact or how long this is going to last. So as of now I think there is no clear indication on how this is going to be dealt with.
But I am sure, I think on an immediate short term I think customers will find. Find a way to see how they will be able to overcome this tariffs. But having said that, I think we will have to expect a minor impact on the revenues to us. If the 50% remains and any margin.
Deepak Poddar
Impact also we anticipate because of this.
Rajeshkumar Doraiswamy
No, I think because the revenue to US is just 5% of our total sales. So we won’t see a major impact for us because we will be able to offset that with the growth that we are seeing in the current year. That should not be a problem. But I think as a country we will have a lot of indirect impact on the business and the economy that might impact the growth of not just Salzar but the growth of all other companies. Now that is the more worrying factor than the direct Exports that we do.
Deepak Poddar
I got it. I understood. That’s it. From my side all the way. Best to you. Thank you. Thank you.
operator
Thank you. The next question is from the line of Mr. Sengal Kumar N from Joinre Capital Services Limited. Please go ahead. Mr. Sengul Kumar, your line is unmuted. Please go ahead with your question. Sir. There seems to be no response. We have the next question from the line of Mr. Bhagwat N from Prosperity Wealth Management Private Limited. Please go ahead with your question, sir.
Bhagwat Nayak
Thank you for the opportunity and congratulations on the strong quarterly performance. My question is with regards to the new temperature sensor product for the automotive industry. Could you please provide an update on the market size, potential revenue target for Sajr and estimated margin from the business?
Rajeshkumar Doraiswamy
Sir, I think this is a very new business. We are just targeting this business to see where we can position ourselves. So before I commit on the revenue projections I think we need to first get the product approved from our customer and get a forecast from them before we really give any commitment. I think it is just an initial announcement of our product development team. What they have done is what we have now given. So I would request you to wait until this quarter and before the next quarter starts I think we will have a full real update on this product.
Bhagwat Nayak
And this product is going to contribute from Q3 onwards. As it’s mentioned. Q4 of this year.
Rajeshkumar Doraiswamy
Yes. Yes.
Bhagwat Nayak
Okay. Okay. My second question.
Rajeshkumar Doraiswamy
I can give a sense of the global market size for this particular product which we are looking at. I think it is close to around 7 billion. The global market size for this temperature sensor and the sectors that the product can be used is our automotive, consumer electronics, H VAC and healthcare. These are some of the larger sectors that uses these type of temperature sensors. Okay. Okay.
Bhagwat Nayak
My second question is with regards to the smart meter segment. As you can see the publicly available data with regard to smart meter installation that seems to. That seems like a optic in terms of installation like around 1.4 core smart meter that was installed in FY25. And we can see around 1.1 crore smart meter has been installed till this year as of this four months. So this seems like uptick. So how should we see in that in terms of Salzer like going ahead for this year?
Rajeshkumar Doraiswamy
I think as I mentioned in my call, there are multiple challenges for our AMI customers also. And as a new entrant we are also seeing multiple challenges. So I think we are trying to overcome these things. And that’s why I think I’m not giving a guidance because we gave a guidance and we had to scale it back and that is not good. So that’s why I’m waiting to see. We will come back and announce as the order and order book is full for us and we have a good forecast and commitment from our customer, as you know that definitely there is an underlying demand of 25 crore meters out of which 2 crores or 2.5 crores have been installed.
So still there is a large gap going on and still there are a lot of states that are coming out with the tenders and awarding the tenders. So there’s a big market still available for us to tap. So we can expect that the next four, five years this business is going to grow at a good speed.
Bhagwat Nayak
Sure, definitely. But with regards to the short term like the for current year FY26, are we still hopeful of achieving the 500 crore to.
Rajeshkumar Doraiswamy
No, I think we, I think we scaled it down long back in the last quarter itself. So we.500 is a very optimistic figure. Yes, I think we should be close to close to that number if everything goes well in the second quarter. Okay, okay. And by the end of the second. Quarter we will have a more clarity on our order book and how this is going to go.
Bhagwat Nayak
Great. Understood. So just my last question from my end if possible. So we have done really well in. Our core switchgr segment. So could you please comment how does it look for the next three quarters?
Rajeshkumar Doraiswamy
I think on the, on the core business, as we have seen, I think we have grown close to 20% year on year and sequentially also we have grown close to 20%. We expect that this momentum should continue if there is no surprises in the global market in the geopolitics. Even if something happens like that, I think we will still continue to grow at around 15 to 18%. If not, I think we should grow at least 18 to 20, 22% in the next three quarters. Our standard legacy business is now seeing a lot of demand inside the country and we are also exploring new markets outside of India.
Like I think as Sabli mentioned, our UAE and Asian markets have grown faster this quarter and we are also seeing Australia, New Zealand as a new market that we have got. So things are looking good. Existing business will continue to grow at this speed.
Bhagwat Nayak
Okay, thank you. Thank you so much.
operator
Thank you. The next question comes from the line of Kunjal Trivedi from Bana Property. Please go ahead with your question.
Kunjal Trivedi
Sir. Thank you for the opportunity and congratulations for the good set of numbers. So my question is also related to the Smart meta order so as we are facing delay or we are anticipating daily orders now since we have already stopped the inventories for the smart metal manufacturing will it have any major impact on the margins on the on the yield in coming quarters? Number one and number sir, my second and my second question on our Saudi unit. So as you had said in the last call that will be allocated land in the coming quarters.
So what is update on the same.
Rajeshkumar Doraiswamy
On the smart meter inventory and margins? I don’t think we are seeing any impact because whatever is our Q1 I think we have shown the results of Q1 which is after taking the impact of whatever we have done in the last two to three quarters including the smart meters. So I don’t see a major impact because of the delay in the smart meter business on Saudi. I think we are close to identifying a place and we should be starting our operations from Q3 onwards this year.
Kunjal Trivedi
Okay sir. So as you said that we have already taken the margin impact on the the same in the last quarter so we will not be facing the margin or unit compression in the smart meter. That’s great for us and yeah, that’s about it sir, thank you so much for the answer. Thank you, thank you.
operator
Thank you. The next question coming from the line of Pranjal Mukija from Growthspear Ventures llp. Please go ahead.
Pranjal Mukhija
Hi sir. Am I audible?
Rajeshkumar Doraiswamy
Yes sir, you’re audible.
Pranjal Mukhija
Thank you for giving me this opportunity. And I again like have a question on the smart meter side. Sir, our commentary seems quite. Our commentary and numbers seems quite contrary to that given by the other companies that are present in this market right now and generally with the way execution has been happening on ground. So I just wanted to understand sir, with the production capacity that India currently has around 6 to 7 crore kind of a meters and new tenders going to come out soon like especially with the Tamil Nadu one which has just recently come out at 3 kilometer.
So I just wanted to understand that I mean what is the right to win any order in this market? Because I mean all the other bigger players, I mean they have a much better experience, much better track record and again this is a product which you have to sort of maintain for the next 20 for a longer period of time, like 10 years. So I just wanted to understand like what will be a right to win here?
Rajeshkumar Doraiswamy
Actually there’s a little bit of confusion in this whole business. I think we are not into tendering, we are into manufacturing and supplying of meters as a product.
Pranjal Mukhija
No, I said I agree to that but I’M saying why would the AMI speak procure products from us? Is it just the price element? Because I mean you like you mentioned that our meters are going to make a margin of 12 to 13% whereas the industry currently is making anywhere between 18 or 19% EBITDA margins. So are we selling them the meters cheaply which is the only reason why they’re coming to us or is there some other.
Rajeshkumar Doraiswamy
You are comparing some of the very well established long term players who have been in the field for years together and who have had the volumes and some of those players also are into the tendering business. So a direct comparison may not be very when put across rightly.
Pranjal Mukhija
Not just with the AMI speeds but I’m also talking about other unlisted manufacturers, even some listed ones that are getting listed now, they have much higher margins.
Rajeshkumar Doraiswamy
My only confidence is that there is a huge demand supply gap and I don’t think there is a 6, 7 crore capacity right now. I think the capacity in my opinion is around 3 crore meters a year all players put together is what I look at it. And there is a huge demand supply gap. And if, if, if the installation, because the tenders have been give awarded almost one and a half two years ago and if the installation was happening at that speed, that it has to happen. The, the central government in the last month would not have extended two more years for implementing this project.
So they instead of 27 months I think they have extended it by another 24 months. So that shows that what are the difficulties in the field? How the infrastructure is not really capable of taking this at this speed is what is understood. So that’s what we are seeing in the market and that’s what our customers are telling us from the field. And I’m not saying that it is not being done. It is being done, it is slowly picking up and we expect that it will definitely go at a speed it has to go in the coming quarters.
I’m only trying to justify that. I’m not against the views of the general market. I am along with market views.
Pranjal Mukhija
So I just wanted some clarity on are we only sort of going at this market because of the demand supply gap or do we also like there’s some differentiating factor with us as an organization.
Rajeshkumar Doraiswamy
Of course we should have a lot of differentiation, lot of technical, technical upgrades we have done. There’s so many new features that we have added which is why I think some of the customers are looking at our meters. One second. I think as a new entrant we have our own Difficulty to go and pitch and get this order done. So that’s also a part of the delay.
Pranjal Mukhija
So could you share some of those, some of the examples of the features that we have which is different on the market.
Rajeshkumar Doraiswamy
I won’t be able to do it right here in the call because of various reasons.
Pranjal Mukhija
All right, sir. Thank you. Yeah.
operator
Thank you. The next question comes from the line of Ankur Kumar from Alpha Capital. Please go ahead.
Ankur Kumar
Hello, sir. Comrades. What a good set of numbers. Sir, my first question is on our margin. So we have come back to 10% or type margin this quarter having having some cost related issues in the last quarter. So can we expect this 10% type to continue or how should we look at it?
Rajeshkumar Doraiswamy
Yes, I think we, we want, I think we expect definitely this, this margin percentage will continue. And we also hope that we would like to increase this by at least another half a percentage point in the. In the next few quarters. Got it, sir.
Ankur Kumar
And sir, in our press release we are talking about 50 crore of transfer smart meter order to go into Q2. So has it already gone or, and what kind of margin can we expect on that 50 crore?
Rajeshkumar Doraiswamy
Sir, I already mentioned that we have a 12 to 13% EBITDA on smart meters and Q2. We will be trying all, all that that we can to see that this balance order of the 50 crore is being executed in this Q4.
Ankur Kumar
So 12 to 13% that can happen with this type of run rate or it will require much higher run rate.
Rajeshkumar Doraiswamy
In terms it would require a higher run rate.
Ankur Kumar
So for this 50 crore we can expect company level 10% type or can we expect that or not?
Rajeshkumar Doraiswamy
Yes, yes, yes. That you can expect. Yeah, correct. Got it, sir.
Ankur Kumar
And sir, on, on the base business you talked about some US related issues. But you also talked about some good demand. 18, 20% type growth. So what exactly is helping us? As in given US uncertainties, can other geographies take its space?
Rajeshkumar Doraiswamy
No, I think other geographies are actually doing well. I’m not seeing any, not seeing any issues in other geographies. Whatever happened in the US is a very new and latest development. So still a lot of our customers are assessing what’s going to happen, how this is going to evolve. As I mentioned, there is a direct 5% export that we do which will be impacted if this 50% tariff continues. Apart from that I am seeing a major impact in the domestic market if this tariff continues with a lot of other industries who are exporting to us, which will get impacted and which might indirectly impact the Indian economy.
And there I think our businesses might also be impacted. But at the worst case, I would say it’s another 5% of our revenue. So that’s the worst case scenario. So 10% of our revenue which will be impacted which will be close to around 100 to 150 crores annually. But having said that, I think the way that our existing businesses are growing and with the new businesses pitching in, we are confident of achieving 1600 crores of revenue in this financial year without the smart meters. Sorry sir, I missed that.
Ankur Kumar
You said 1600 crore without smart meters.
Rajeshkumar Doraiswamy
Yeah.
Ankur Kumar
And around say 300, 400 from smart meters. Hopefully. Yes, that’s great to know, sir. Thank you. And all the way.
operator
Thank you. The next question comes from the line of Aman Singh Sahat Singhani from Profit Gate. Please go ahead.
Amansingh Sahajsinghani
Hello. So am I audible?
Rajeshkumar Doraiswamy
Yes, sir.
Amansingh Sahajsinghani
So my first question is regarding the DC charger business. So the 40 DC chargers that we have delivered in this quarter are from the JV or the Ultra Fast investment.
Rajeshkumar Doraiswamy
I think that it’s partnership. Now this business is from Ultra Fast Charges. So we have I think this 40 charges we deliver directly. But going forward it will be through Ultra Fast charges. Okay.
Amansingh Sahajsinghani
And any further plans to increase, take in Ultra Fast any new funding round that you will be participating in
Rajeshkumar Doraiswamy
As and when it’s required, as and when the development happens, we will definitely be doing it. But right now there is no plan on that.
Ankur Kumar
And sir, on smart meters, can you please help me understand the timelines that we have for smart meters Starting from tendering process at state level to revenue booking in our book. So for Tamil Nadu example, the tender came in March. And when will be the installations happening and when will we be recording the revenue? If we get some orders from there.
Rajeshkumar Doraiswamy
If we get the orders, I think the revenues will start coming from next year. Q2.
Amansingh Sahajsinghani
Okay. So —
Rajeshkumar Doraiswamy
Normally the tendering process. From tender opening to execution is close to around eight months.
Amansingh Sahajsinghani
Close to eight months.
Rajeshkumar Doraiswamy
Eight months.
Amansingh Sahajsinghani
Okay. Thank you so much.
operator
Thank you. Anyone who wishes to ask question may press Star and one on the Touchstone telephone. We have the next question coming from the line of Pratik Vs. An individual investor. Please go ahead.
Pratik V.S.
Yeah, hi. Congratulations on good set of numbers. Thank you, sir. Go ahead. I would like to know if we. Are planning any stake increase or any FIS or diis are actively involved in investment in the company. Thank you.
Rajeshkumar Doraiswamy
No, I think we are not looking at any capital structure alteration as of now.
Pratik V.S.
Okay, thank you.
operator
Thank you. Next question comes from the line of Kumar Divyanshu an indigenous investor.
Kumar Divyanshu
Hello. Hello. Yes sir, go ahead.
Rajeshkumar Doraiswamy
You’re audible.
Kumar Divyanshu
Audible, sir. First of all for the very good number, my question is regarding the order book. Could you please tell that what is the current order book status and second is the executed order book as of quarter one.
Rajeshkumar Doraiswamy
So we are seeing we don’t operate on a large order book business because our electrical component manufacturing and supply we at the max maintain four to six weeks of delivery time. So our order book is at the max a month or two months. But having said that, we have a very good forecast from across our customers and OEMs.
But I think I also have to give an eye light here that because of the latest development these forecasts might change in the coming days. But until now the forecasts are good. We are seeing healthy order inflows. We expect the Q2 also will be as good as Q1.
Kumar Divyanshu
Okay. So it will be better if you could provide some approximate number that what is the order book right now?
Rajeshkumar Doraiswamy
As I mentioned I think I gave a guidance of around 18 20% growth compared to last year. So I think we still stick to that and we should be able to grow at that level.
Kumar Divyanshu
Okay. And my second question is that new sensitive temperature which I have mentioned right now. Could you please suggest me that from which part of the revenue will be. Start coming from this particular segment?
Rajeshkumar Doraiswamy
I think I mentioned that the product has been just developed and given for validation. So we expect to see some revenues coming from this product from Q4 of this year.
Kumar Divyanshu
Okay. And in the last quarter, sir, last quarter for earning call you have mentioned that we are exposing this amisp. So is there any update regarding it? What? What is that?
Rajeshkumar Doraiswamy
I didn’t understand your question.
Kumar Divyanshu
In the last quarter you have mentioned that we are. We are on the sale that we are going to sell to the many of the more amisp.
Okay. So could you provide me the update regarding.
Rajeshkumar Doraiswamy
I think that is the update I’ve been giving across for all the Smart meter answers. So amisps are our Smart Meter customers.
Kumar Divyanshu
Okay. Okay. Thank you so much.
operator
Thank you. The next question comes from Laina Sindhu Kumar N from Joint Ray Capital Services Ltd. Please go ahead. Mr. Sindhu Kumar, your line is unmuted. Please go ahead with your question. So there is no response from his line. The next question comes from Harsh Saraswat from Elegant Family Office.
Harsh Saraswat
So can you throw some light on. The debt situation in the company and the working capital cycle going forward and does Smart meter will be extending our working capital days going forward?
Rajeshkumar Doraiswamy
Smart Meter business won’t Increase our working capital cycle if at the full revenue level. I think Smart meter will actually help reduce our working capital cycle. That’s what we expect on the debt levels. We are at around 400 crores of debt working capital and there’s no change in the term loan status compared to March, the project loan status.
Harsh Saraswat
And when do we expect this debt starting coming down? Like in the next year or the next to next year?
Rajeshkumar Doraiswamy
I don’t expect this to come down drastically because I think we are expecting the growth in the coming years at a speed that we will not be able to manage without the working capital debt. But we are conscious to see that we will restrict our debt to approximately 20, 25% of our revenue. Not, not beyond that.
Harsh Saraswat
Okay, thank you so much. Thank you.
operator
Thank you. Sir, the next question comes from the line of Sahil Bagharia from Mindful Investing. Please go ahead.
Sahil Bagaria
Hi sir. Am I audible?
Rajeshkumar Doraiswamy
Yes sir, very much.
Sahil Bagaria
Thanks for the opportunity. Sir, my first question is out of the total revenue FY25, how much was. It from smart meters? So we, I think we were at 1364. So how much was smart meters out of it?
Rajeshkumar Doraiswamy
You’re talking about last financial year.
Sahil Bagaria
Last financial year, that’s right.
Rajeshkumar Doraiswamy
Yeah, last financial year. I think we already gave an update on this. If I’m not wrong, we had a 5 crore revenue of smart meters last year. I’m not very sure but this update has already been given in the last quarter. Okay sir.
Sahil Bagaria
And so the growth which we are expecting on this year, so you said about 1600 crores. So despite of the US tariffs and you know all the situation right now, we are still expecting to hit the 1600 crore.
Rajeshkumar Doraiswamy
Considering the current situation, I think 1600 crores was our projection when we started the year which is what we updated to you all in the market. Also I think the current situation needs a little bit more time and evaluation if this will impact our revenue and if at all it is to what extent needs to be evaluated. And right now there is a lot of confusion in the global markets. So we are not giving any comments based on that. So we are holding on to our projection as of now and we will see how the markets react and evolve, how our customers react.
And I think a better clarity will emerge maybe by end of this month. And as I already mentioned, the total impact that I expect at the worst case is 10% of our revenue which is around 150 crores which I think we’ll still be able to. It’s the worst case that becomes. That means all my US business becomes zero which I’m not expecting. So that’s only the sense that we are able to still confidently say that we will be able to reach our original target of 1600 crores.
Sahil Bagaria
So my last question is. So for the charger business we are expecting about thousand charges this year, right? And so what is this? What is the split we are expecting. Between DC and AC? Out of the housing charges.
Rajeshkumar Doraiswamy
Value wise 90% will be DC because that’s a high value product. Value wise 10% will be AC charges. Got it.
Sahil Bagaria
That is my. That’s it from my end. Thank you so much.
operator
Thank you. The next question comes from the line of Mehrabo Meta and individual investor.
Mehboob Mehta
Hi sir, I’m RD1.
Rajeshkumar Doraiswamy
Yes sir.
Mehboob Mehta
My first question is regarding smart meters. So what from the last year again the guidance is reducing by n quarter and quarter. So how is the smart meter business is going on at present? And you know what and you last got last in the last quarter you have mentioned that we are not going to bid any. We are not bidding any. You are not in taking participant in the biddings. So what about the current order position sir and any at of 500 to 600 crores. You have mentioned the last quarter for this financial year how it’s going sir.
Rajeshkumar Doraiswamy
So I think there have been lot of anxiety and questions on smart meters. I would again like to put forth that this is a business that is completely dependent on the discoms in the government. And as I mentioned our customers are facing a lot of challenges in implementation. And there’s a lot of, what do you call actions being taken to overcome those difficulties. So we are working along with our customers to secure orders and see how we can implement this one. Secondly as I already mentioned in this call also we are a new entrant in the business.
So the original guidance, revenue guidance was given based on the demand and at the speed that we expected that it will be implemented. But as we entered the business we understood that it’s not as we thought. It is not as straightforward as it looks. So it is taking time. And that’s why we have been revising our guidance quarter on quarter and we have come to a reality. So we definitely see there is a huge underlying demand for this product. And we are positioned very well with our product, our technology and the features that we have in our product.
And I expect that this business will definitely pick up at the speed at the revenue guidance that we have given. Maybe we are a little early to project that level of revenue but definitely we are going to achieve that as I already mentioned I think maybe we shouldn’t give a guidance of before we really assess the market. So that’s an understanding and the learning that we have got. So to put the anxiety of all the investors down I think we are there in that business. We are confident that we will be getting triple digit revenues or four digit revenues quite soon in this business and more clarity will emerge post this Q2 when our customers give us more commitment on the business.
Mehboob Mehta
Okay, so my second question is can you give a information regarding BI certifications that is that clear? And you mentioned that you are all repeated customers. No, we are waiting for a big huge order from our repeated customers. So any update on that?
Rajeshkumar Doraiswamy
Sir, what is the certification you mentioned? I didn’t get your question properly.
Mehboob Mehta
Certification that you have mentioned last. Last year quarter also regarding.
Rajeshkumar Doraiswamy
Yes, certified. Certified with bis.
Mehboob Mehta
Yes, that’s fine. One more question is sir, is there any capex lex for smart meters? Are the present present capacities enough for the market opportunities?
Rajeshkumar Doraiswamy
Present capacity is enough and all the capex has been done and then we are continuing to invest the what you call to a maintenance. I wouldn’t say maintenance capex but to make the line lean whatever is required that small capex that we are doing and we are also establishing an in house electronic manufacturing facility for the smart meters so it’s completely becoming self sufficient on smart meters.
Mehboob Mehta
Okay, so can you give a note on Saudi Arabia’s capex which was announced last.
Rajeshkumar Doraiswamy
We haven’t started any capex. As I mentioned earlier in this call we are close to finding a a place to operate on a rental basis. Once that is done I think the capex will start and we expect that it will happen from Q3 of this financial year.
Mehboob Mehta
And again I’m asking sir any margin guidance for the coming entire year.
Rajeshkumar Doraiswamy
We expect the Q1 results will continue for the coming quarters.
Mehboob Mehta
That’s it for my sir, thank you very much. I wish you all the very best for your future.
Rajeshkumar Doraiswamy
Thank you sir. Thank you sir.
operator
Thank you. Next we have a follow up question from line of Bhagwat n from Prosperity Wealth Management Private Limited Please go ahead sir, thank you.
Bhagwat Nayak
For the follow up opportunity is there any plan by promoters to increase their stake in the company beyond the current 37.5%?
Rajeshkumar Doraiswamy
I think the last two, three years promoters have increased the stake and I being one of the part of the promoter we have gone up from 33 to 37 and we have no plans immediately but we will definitely let you know as and when we have any idea of doing that. Okay. Thank you so much.
Bhagwat Nayak
Thank you.
operator
As there are no further questions from the participants, I now hand the conference over to Mr. Rajesh Toraswamy, Joint Managing Director, Salsa Electronics Limited for closing comments.
Rajeshkumar Doraiswamy
Once again, thank you all very much for your interest and support from all of you all these years. And from Salzer, I think, from Salsa’s team. I promise that we will continue to add value for all the stakeholders in the coming years. We will work towards that. Thank you very much. Until we talk again next quarter.
operator
Thank you, sir. On behalf of Alte Bilamani, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Rajeshkumar Doraiswamy
Thank you.