Salzer Electronics Limited (NSE: SALZERELEC) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Vineet Agarwal — Investor Relations
Rajeshkumar Doraiswamy — Joint Managing Director, Chief Financial Officer & Whole Time Director
Savli Mangle — Investor Relations
Analysts:
Unidentified Participant
Sudarshan Nachimutu — Analyst
Darshil Jhaveri — Analyst
Rabindra Nath Nayak — Analyst
Girish Mathrubootham — Analyst
Ankit Kapoor — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Salsa Electronics Limited Q3 and 9M F earnings conference call. As a reminder, all participant lines will be in 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 Star then zero on your touchstone phone. I now hand the conference over to Mr. Vineet Agarwal from Alcibulla Capital.
Vineet Agarwal — Investor Relations
Thank you Karthik. Good morning everyone. On behalf of IEEE Money I welcome.
Vineet Agarwal — Investor Relations
You all to the Q3 and 9.
Vineet Agarwal — Investor Relations
Months FY26 post earnings conference call of Salsa Electronics Limited.
Vineet Agarwal — Investor Relations
This conference call may contain forward looking statements which are based on the beliefs.
Vineet Agarwal — Investor Relations
Opinions and expectations of the company as.
Vineet Agarwal — Investor Relations
Of the date of this call.
Vineet Agarwal — Investor Relations
These statements are are not guarantee of future performance and involve risk and uncertainties that are difficult to predict.
Vineet Agarwal — Investor Relations
I now invite Ms. Savli Mangli for the opening remarks to be followed by.
Vineet Agarwal — Investor Relations
A question and answer session.
Vineet Agarwal — Investor Relations
Over to you Ma’.
Vineet Agarwal — Investor Relations
Am.
Savli Mangle — Investor Relations
Thank you Vinny Good morning everyone and thank you for joining us today to discuss the unaudited financial performance for the third quarter and nine months ended 12-31-2025. I have with me Mr. Rajesh Jiraiswamy Joint Managing Director Mr. P. Sivakumar, Assistant Vice President Marketing Mrs. R. Menka, General Manager Accounts Mr. K. M. Murugesh, Company Secretary and Mr. Jeetendra Vikhariya, Non Executive Director KC Industries. I shall now take you through the consolidated financial performance for the quarter and nine months ended December 2025. During the quarter our revenues increased by 24% year on year to rupees 424 crores from rupees 341 crores in the previous corresponding period.
This growth was mainly driven by higher demand for industrial switchgear and wire and cable businesses particularly in products like three phase tri tight transformers, wire harness relays and new products like contactors et cetera. The EBITDA excluding other income was rupees 37 crores a year on year growth of 4%. The EBITDA margin for the quarter stood at 9% while the tax was rupees 13 crores in Q3FY26. Coming to our nine month financial performance in the nine months ended 12-31-2025 the net revenue was rupees 1284 crores a year on year growth Of 23%. This was largely driven by higher demand in both industrial switch care businesses as well as wires and cables.
The EBITDA excluding other income stood at 116 crores as against 105 crores in nine months. FY25 a year on year growth of 11% while the margin stood at 9%. The PAT was rupees 43 crores a.
Savli Mangle — Investor Relations
Year on year growth of 4%.
Savli Mangle — Investor Relations
Coming through to our business division, the industrial switchcare division contributed to 56% of the total revenues in this quarter and 58% in nine months. The business grew by 12% year on year in Q3 and 22% year on year in nine months while the margin in both Q3 as well as nine months the EBITDA margin stood at 12%. Coming to wires and cables, this business Contributed to nearly 39% this quarter and 37% in nine months. There is an increase in 49% year on year during the quarter and 26% in nine months. FY26 the EBITDA margin for this business in both Q3 and nine months stood at 5%.
The last business, the building products contributed to 5% to our revenues in this quarter as well as nine months and witnessed 8% year on year growth in nine months. FY26 Coming to exports for the quarter and nine months, the export revenue stood nearly at 21% in Q3 and 23% in FY26. Nine months. FY26 with this I would like to now hand over to Rajesh to take us through the business development and the way ahead. Thank you and over to you.
Rajeshkumar Doraiswamy — Joint Managing Director, Chief Financial Officer & Whole Time Director
Thank you Savli. Good morning everyone and a very Warm welcome to Sals Electronics earnings conference call for the third quarter and nine months ended 31 December 2025. Thank you all for taking time to join us today. We have already shared our results, update presentation and media release. I hope you all have received and gone through the same. I would like to share some key highlights and recent developments and our outlook for the future before we open the floor for questions. Before I discuss our quarterly performance, I want to highlight rare convergence of policy tailwinds we are witnessing at present.
Just this past week two significant developments have improved the operating environment for Indian businesses and particularly electrical equipment manufacturers. First, the US India Interim Trade Agreement announced on 6th of February has reduced the tariff on Indian goods from 50 to 18%. This restores our export competitiveness and that 18% India is now more favorably positioned than many of our other countries. As you know, we had flagged U.S. tariff exposure in our previous calls. Approximately 7% direct export and 3 to 4% indirect export. That overhang is now substantially lifted and we’re already seeing renewed inquiry levels from US based customers.
While it is early to quantify the revenue impact, we view this as a structural positive for our export earnings. Second, the Union Budget 202627 continues with the government’s infrastructure push with 12.2 lakh crore in public capital expenditure, the highest ever allocation so far. Importantly, the RDSS allocation has been increased to Rupees eighteen thousand crores directly supporting smart metering deployment and DISCOM modernization where Salazar has a strategic positioning. The budget also introduces a national manufacturing mission with a focus on clean technology, solar EV batteries, motors, controllers and high voltage transmission equipment. Our core switchgear market continues to grow at 7 to 9%.
CAGR India has crossed 50% non fossil fuel installed capacity and EV charging market is projected to reach US dollars 1.6 to 1.9 billion billion by 2030. In summary, export competitiveness is restored, domestic investment is reinforced and our addressable markets validated. Salsa’s diversified portfolio across switch gears, wires and cables, smart meters, EV chargers positions us well to benefit from this environment. Now coming to our key updates on the recent and the recent developments, I am pleased to announce that the appointment of Mr. Raman Krishnamurthy as the Chief Financial Officer for Sals Electronics Limited with effect from 1st of April 2026.
His appointment reflects our continued focus on strengthening the leadership team as we prepare for our next phase of growth. With this extensive experience and strong financial acumen, we are confident that we will further enhance our financial governance and strategic planning capabilities. During the quarter we also witnessed an unprecedented increase in key input costs, particularly silver and copper, which had a marginal impact on the margins to the extent of approximately two basis points. While we continue to actively manage pricing in inventory and cost optimization initiatives such as sharp commodity movements in short term do create temporary pressure on our margins.
However, we remain confident in our ability to mitigate this volatility through calibrated procurement strategies and operational efficiencies. During the quarter, we strengthened our capital base across key associates and subsidiary entities to support the ongoing and the future expansions. Specifically, Etherium Private Limited and SPV floated specifically for executing Bengaluru Energy Saving Project. The project execution is going on as expected and we will start to see revenues coming in from September 2026. Saudi Arabia Ltd. Our 100% subsidiary in Saudi Arabia where we have started to install machinery and we are expecting to start commercial production from June 2026.
These investments align with our strategy of scaling both domestic execution capabilities and international operations for the long term growth on smart meters. We continue to execute our existing orders and engage actively with multiple AMISPs and DISCOMs. While we are yet to secure a large scale order, this is primarily due to industry factors such as stringent eligibility criteria linked to the past execution scale, evolving tender conditions and also aggressive pricing dynamics. Smart meter revenue for Q3 stood at 1.25 crore taking a 9 month FY26 revenues from smart meter to 25 crores. Our technology is validated, manufacturing capacity is ready and we remain well positioned to participate meaningfully.
As the rollout gathers, space and qualification barriers ease. Our subsidiary Casey Industries continues to perform well. Casey’s top line grew 22% year on year in Q3FY26 to Rs 14 crores from 12 crores in Q3FY25 and a 14% year on year in 9 month FY26 to 43 crores from 38 crores in 9 month FY25. EBITDA was at 2 crore and Pact was at Rupees 1 crore in Q3FY26 in 9 months EBITDA was Rupees 6 crores and Pact was at 4 crores. The LP margins at KC continue to contribute positively to our consolidated performance. I’m pleased to share that we have been granted a patent for high voltage disconnecting and upping device discovery.
Designed for the railways locomotive applications, this water switch offers enhanced safety features, reduced size and cost advantage compared to the conventional solution. The patent reinforces our commitment to innovation and import substitution on the temperature sensor product which is currently under validation with two tier two automotive OEMs. We are targeting commercial supplies by Q4FY26. This product has application across automotive H Vac, home appliance and medical equipments. This opens a new addressable market for SALSA on EV chargers. Through our partnership with Ultra Fast Chargers Ltd. We offer DC fast chargers ranging from 60 to 360 kilowatt as well as AC slow chargers.
We continue to build our presence in this market which as I mentioned is projected to grow at around 30% CAGR for the next two to three years. Looking ahead, we remain very confident in our growth trajectory. The policy environment with the US India trade deal restoring export competitiveness and the union budget reinforcing domestic infrastructure spend is highly supportive. Our diversified business model across switch gears, wires and cables, smart meters and EV chargers provides multiple growth levers for FY26. We retreat our guidance of 20% revenue growth with a gradual margin improvement as operating leverage plays out and higher margin segments like switchgear scales up.
Our focus area for the coming quarter include accelerating the Smart meter order execution and securing new orders. Commercializing our temperature sensor product. Scaling up EV charger sales. Progressing the Bangalore BBMT project and leveraging the improved US trade environment. Before I conclude I want to thank the entire team at Sals Electronics for the dedication and hard work. I also thank all our stakeholders, customers, suppliers, bankers and shareholders for their continued trust and support. This is all from our side for now. We can open the floor for questions. Thank you all once again.
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 questions may press Star and one on the 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. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question comes from the line of Arun, an individual investor. Please go ahead.
Unidentified Participant
Can you hear me sir? So my question is regarding the bias and cables division. So we have, we are like working towards 5, 6% EBITDA margin. So I just want to understand how much of the bank facilities we are using for this particular business out of our entire borrowings. I just want to understand whether we are throwing some pat level in this particular division or we are still pat.
Rajeshkumar Doraiswamy
Negative.
Rajeshkumar Doraiswamy
On the wires and cables. We are still back positive though. The margins are at 5%. I think there here the volumes are. It’s a volume game. So that’s why I think the margins are down. But irrespective of that I think the margins still have to be a little bit higher on the borrowings. We use close to 50% of our borrowings for the wires and cables. Another point also I want to add we have to see the pricing of the copper. I think that’s also another reason you see a lower EBITDA margin. Because the copper price used to be at around 800 rupees a kilo and now it’s around 1300 a kilo.
So this additional difference is why the margins have come down as a percentage.
Unidentified Participant
But do you think that we can scale the widened cables margin to like 10, 12% EBITDA?
Rajeshkumar Doraiswamy
No, I don’t think we will be able to reach 10%. I think we will be able to improve this by around one and a half percent or 2% over the next one, one and a half years.
Rajeshkumar Doraiswamy
So 6, 6.5% or more than that.
Rajeshkumar Doraiswamy
Around 6.5% at this price level.
Rajeshkumar Doraiswamy
So yeah, if you are using 200, 250 crore of your borrowings for Your wides and cable division. So interest itself you are paying like 50, 25 crores for this particular division. And so what kind of percentage do you expect from this division? Because. Because today our market cap is 1200 crore and our sales are around 14001450 crore. So I don’t think it’s not. It’s creating any shareholder value at the PAT level. It’s just throwing the revenue and bumping up the numbers. But it’s not bringing any value to the earnings.
Rajeshkumar Doraiswamy
I agree partly to an extent. I think we have to scale up the volume of the wire and cable business. So to see a better PAT margins and EBITDA margins in that.
Rajeshkumar Doraiswamy
And regarding all the smart meters noise since last one month and a half here. So almost we are talking about smart meters from October September 2024 and in last 15, 16 months. Everybody see that data. Everyone know that how much revenue I.
Rajeshkumar Doraiswamy
Have made in smart meters.
Rajeshkumar Doraiswamy
And something do you feel that we have misguided investor in the smart meter trend? Because we have. We have made a thousand crore then 700, then 500. Now we are not even able to make 100 crore. And everybody knows that it’s. It’s all about smart meter implementation by the government.
Rajeshkumar Doraiswamy
So.
Unidentified Participant
So do you think that you have actually misleaded investors with very big guidances on the smart media division?
Rajeshkumar Doraiswamy
Okay. It was unfortunate for us also because we expected that things will roll out in a specific manner which is not happening. So to say that we are misguided. I don’t agree with that because we have invested and we have set up a facility, created a capacity of 4 million meters which is. Which is live here. And we are in discussion with various MSPs who have all visited our factories and seen what facilities we have. And we have also got approvals from various discoms. And getting an approval from discom for the meter is not an easy job which we have done from Gujarat, from Maharashtra, from Madhya Pradesh, from Tamil Nadu and Karnataka.
These are some of the states that this comps you have taken. So the expectation that we had also has been. Has not. Not happened. So that that is the reason that we’re not able to execute.
Rajeshkumar Doraiswamy
But even in the last you were talking. Yeah, even in last con call in Q3 ConAll you were telling that even 300, 400 crore is a. There is a visibility particular year this financial year and I think we have missed it by a big margin. And if you. If you remember from the last four con con calls. No. No analyst is interested about our wires and Ca other businesses. Everybody is talking only about smart meters in the our investor calls which clearly indicates that our investor community is more enthusiastic about smart meters because that was actually that entire episode was created by management.
They’re completely. Because no, nobody is interested about the existing business which are doing 2025. Everybody are interested that what are going to do in the smart meters because that’s what that was the area where you pushed up all the investors and share prices have crossed crashed from 1600 to 600 and the investors like me who are sitting in your share price.
Rajeshkumar Doraiswamy
On last two years.
Rajeshkumar Doraiswamy
We are completely destroyed.
Rajeshkumar Doraiswamy
I don’t want to speculate on the share price. I think that’s something that we don’t talk about in the con call on the business as we think what is the futuristic business. We are trying to enter all those futuristic businesses and we try to give guidance based on the market. Most of the times we are right. Sometimes we are unable to achieve what we commit. I think there are multiple reasons at the ground level. So that’s all I can say. Yes, I think different con calls, we have given different projections. We have scaled down on the smart meter projections which I have agreed there are difficulties in securing large scale orders which is again what I mentioned in the con call little bit earlier.
But we continue to work, we continue to see how we can scale up in every business that we have invested.
Unidentified Participant
So do you think that we can.
operator
Sorry to interrupt you, could you please join back the queue?
Unidentified Participant
Okay, thank you.
operator
Thank you.
operator
Next question comes from the line of Sudarshan Nachimutu from Prosperity Wealth Management. Please go ahead.
Sudarshan Nachimutu
Hi sir. Am I audible?
operator
Yes sir.
Sudarshan Nachimutu
Yeah, thank you for the opportunity. Coming back again to the smart meters part. So if you can provide an update because we were waiting on the tangent core tender and that was a very large chunk. So what is the current status on that and are we seeing any delay because of the upcoming assembly elections in the state?
Rajeshkumar Doraiswamy
So far there is no news about the tender. I think tender has been invited for people have bid for it and I think that’s where it stands. So after that there is no news. So I expect this not to move because the elections are around the corner. So most probably this will be retended after the election is what I think.
Sudarshan Nachimutu
Understood. And regarding smart meter order book, what are our expectations of order book in Q4 and what do you envision for FY27EXOF Tamil Nadu? What are the combination between.
Rajeshkumar Doraiswamy
I think that’s exactly the conversation I think I was having before with one of Our other investors right now I think it’s very difficult to give a guidance on smart meters. At this point of time though we are working to see how we can fill our capacity. So as things evolve, I think we will keep informing the shareholders. But right now we are trying to secure large scale orders from different AMSPs and DISCOMs.
Sudarshan Nachimutu
At this point in time. Yes, you are understood and not on the guidance part. So with your conversation with the players, what do you see is the difficulty in getting those large scale orders in your conversation? Monthly executions are at 30 level.
Rajeshkumar Doraiswamy
I know one is the. Of course the execution by the MSPS are also slow. Second, I think there’s stringent eligibility criteria because of the new entrant that we are. And also the tender conditions are evolving from state to state. These are some of the issues that we face at the new entrant when we get into the market which we are working with the MSPS and trying to address the concerns of those amsts.
Sudarshan Nachimutu
Okay, and we did receive a initial order from one of the players. And is there any follow on orders from the same player? How is the feedback so on. And you didn’t mention the feedback is good.
Rajeshkumar Doraiswamy
Feedback from the customer has been good so far and we still have a pending order from the same customer though there’s no clearance for the dispatch. So we are ready with the products and we are waiting for a clearance for dispatch. Once this is done, I think we expect further orders to come from them.
Sudarshan Nachimutu
Thank you. And the second part is on your wire and cable division. Actually just following on the previous participants question, these margins and ROE fulfill are lower and drying down the consolidated ROE numbers down. So when you move forward FA2720 Is there any particular action plan wherein you would like to increase is the ROE ROC metrics margin metrics for the division or else is there any other products and divisions in play wherein your entire consolidated ROE is increased? Because our ROE is anywhere around 19%. So is there any plans to do it because your wire and cables is pulling down the entire consolidated roe?
Rajeshkumar Doraiswamy
Yes, I think that that is true. The, the EBITDA margins are pulling down for the R E. We are trying to see how we can increase the margins on the wire and cable division and increase the volumes also in the wiring cable division? Definitely that’s, that’s a, that’s a constant work and continuous work that we are, we are working in.
Sudarshan Nachimutu
Okay. And in terms of guidance, if you want to put a number to it, are you targeting anything internally in terms of roe?
Rajeshkumar Doraiswamy
No, I’M I’m not. There’s no. I mean guidance. I am giving an ROE but on the EBITDA levels, we are looking at around 6 and a half percent from the current levels for the wire and cable division.
Sudarshan Nachimutu
Okay. Okay. And so that’s it from my end.
Sudarshan Nachimutu
Thank you. Always.
operator
Thank you. Next question comes from the line of D. Javeri from Crown Capital. Please go ahead.
Darshil Jhaveri
Good afternoon. Thank you so much for taking my question. So sorry sir, again just hopping a bit about smart treatment received in 50 crore order, right? And even that in one quarter because of the customer you are able to just execute just one cr in Q3, right? So even if you are trying to hunt for a larger order, what is the guarantee that like the execution is also not going. The execution is going to be fast, right? Because even if after receiving a 50cr order, we are not being able to execute it. Not maybe because of any fault of ours, but it’s still the market condition, right? So sir, your thoughts on that? So even if we get a big order, what’s the likelihood of execution being able to execute that big order?
Rajeshkumar Doraiswamy
Sir, there’s no question of execution capability not existing with us. I think we do have the capability to execute. I think we have received the order, executed half of it. I’m coming there. I’m coming there. Yeah, I’m coming. I’m coming there. I understand what you asked for. We received a 50 crore order. We have executed half of it. We don’t have a clearance for ex. Supplying the material for the rest of. That’s where we are waiting. So executing is what we. We are here to manufacture and supply the product which we are ready. The customer has not given a clearance for us to supply the material for the second portion of it.
Rajeshkumar Doraiswamy
No, that’s where I was getting. I saw that. I didn’t mean execution on our end. Like even if we get an order, if the customer himself is not ready to be able to, you know, put it up or for whatever reason that their delay is happening.
Darshil Jhaveri
So we.
Darshil Jhaveri
What is the use of us as a company getting an order where we have all the capability. We are live with everything. But because of customers.
Rajeshkumar Doraiswamy
I won’t be able to answer. No sir. Because the customers, different customers have different issues. So we can’t say that everybody will.
Rajeshkumar Doraiswamy
Have the same issue.
Rajeshkumar Doraiswamy
We are waiting for it and we have to wait and see how it works out.
Darshil Jhaveri
But then because even like I think.
operator
Your voice is not very clear, sir, I’m not able to hear you properly.
Darshil Jhaveri
Hello.
Darshil Jhaveri
Is it.
Darshil Jhaveri
Is it better Sir?
Rajeshkumar Doraiswamy
Yeah, hello.
Darshil Jhaveri
Yeah, I’m just trying to get. Yeah, what I’m trying to get, sir, is that it’s a ground level reality in terms of, you know, smart meter, you know, being just being put in household. I think a lot of people are finding it difficult to, you know, execute the, you know, order. So I’m just trying to understand that, sir, even if we are hunting for a large order, will it be executed in the same space? Because you being on there in the ground level, that is the installation happening fast. That’s where I’m just coming because things.
Rajeshkumar Doraiswamy
Are definitely improving so certain.
Rajeshkumar Doraiswamy
FY27, will we be able to.
Darshil Jhaveri
I’m not even asking for a guidance like will we be able to see orders coming in, right? Like what is our, you know, qualitatively thinking that in terms of orders for. Is there a pipeline that we have right now like that we could comment on? You know, we’ve been waiting for, you know, this much tenders or something like that. Or are we partnering up with someone that can help us get more orders?
Rajeshkumar Doraiswamy
The, the addressable market is quite huge. Definitely. I think this we have been telling in the, in the con call, previous con calls, many con calls out of the 25 crore meters. The addressable market is still close to 20 crores for the next two, three or four years. So that’s that as well market that we are looking at and targeting. And as for your question of execution, yes, the market execution people are finding it difficult. There are different challenges. However, I think this getting cleared and people are solving those challenges and trying to execute.
Darshil Jhaveri
Okay, okay, fair enough, sir. And sir, with regards to our other business that we are very bullish on the charging business, could you, you know, just help us understand what’s the, you know, outlook for that for the next year? Like I understand this year we’ve partnered up and we are, you know, trying to scale the, you know, revenue out there. But like any color on is the business profitable yet? Is it, you know, what’s the outlook that you know, we can expect next year? Maybe even if you don’t want to give a firm number. I understand but sir, any, like what’s the vision for us next? Because EV adoption is increasing.
So just wanted to get your thoughts like how do we increase our sale of charges?
Rajeshkumar Doraiswamy
Sir, the guidance for, for current year, whatever we have given is around 20. I think we are continuing to grow at around 20, 22% and for the next year, two, I think we will continue to grow at the same level.
Rajeshkumar Doraiswamy
Chargers. DC chargers, sir.
Rajeshkumar Doraiswamy
DC Chargers. Yes, I think we are partnering with this ultra fast chargers and the market is growing. I think so far in this nine months we have sold close to around 100 chargers in the market. And we are trying to tie up with large charge point operators to see how we can scale up that business and increase the volumes. Okay.
Darshil Jhaveri
Okay, fair enough. That’s it from my side. So thank you.
operator
Thank you. Next question comes from the line of Rabindranath Nayak from Sunidi Securities.
operator
Please go ahead.
Rabindra Nath Nayak
Hello.
Rabindra Nath Nayak
Hello. Good morning, sir.
Rabindra Nath Nayak
Good morning, sir. Am I audible?
Rajeshkumar Doraiswamy
Yes, sir. Okay.
Rabindra Nath Nayak
Thank you for the opportunity, sir. Sir, my question regarding your. You mentioned that the copper prices have gone up by 62% in a variable basis. But if I see the quarterly numbers, the price of the revenue has gone away 51%. So does it indicate that we are having some lower volume this year?
Rajeshkumar Doraiswamy
If you look at our wire and cable business, on a year, on year or a quarter on quarter, even sequential quarter, we have grown at around 25%. And this quarter, year on year we have grown at around 50%. So if you look at year on year figure, if you look at on the 50% value we have volume, volume wise we have grown by around 20%. Okay.
Rajeshkumar Doraiswamy
And because you mentioned that copper prices have gone up by 62%. So that is what 62.
Rajeshkumar Doraiswamy
I just gave a number. But it has been gradually increasing from 800. Today it is around 1300. Every month there is a jump. So it is not a 64 jump from last quarter to this quarter.
Rajeshkumar Doraiswamy
Okay.
Rabindra Nath Nayak
And secondly, if you see that the. Your geographical means, you know, it is quite possible that the America business due to tariff issue has been muted and Europe is actually contributing. But your Asian market particularly has actually sunk. Can you please give some reason for this?
Rajeshkumar Doraiswamy
Overall I think the export, export has been down in this quarter because of various reasons. I think the American market is one. And I think we have grown, of course in Europe we have grown. And Asian market, I think sequentially we have grown year on year. We are little flat. But otherwise sequentially Asian market is doing well. Middle east also is doing well. Our supplies are down. And that’s what I said. There’s an indirect export that we have been doing. So that is down because of the tariff reasons. Okay.
Rajeshkumar Doraiswamy
No, I am just from your presentation. It is asia excluding India, 13% last year in Q3 it has come down to 5.3% this year. So whether the reason you are citing that the supply to the ECGs is low. That is why the, you know, the revenue is down.
Rajeshkumar Doraiswamy
Looking at the percentage as a percentage to the revenue you’re saying. Yeah, but if you look at the growth figures on the absolute numbers. That’s what I was talking about. We are. We have grown in the Asia year on year, close to 20%.
Darshil Jhaveri
Okay.
Rabindra Nath Nayak
So sir, regarding your guidance, even saying that the copper has contributed significantly to this year your turnover largely because of price increase you have taken. So you are saying that next year you will grow 20% means which segment you are looking at. The growth would come whether smart fit or the other subsegment which are having. You are seeing the growth. Can you please highlight something on that?
Rajeshkumar Doraiswamy
The major growth for us is now coming from the industrial switchgear market. Particularly the transformers and the control gears that we are making. We are seeing good demand coming in from these products. And that is where we are seeing the growth coming in. Look at our share over the last few quarters from around 50. 50%. 50. 50 from wire and cable and the industrial switch gears. Currently we are standing at around close to 60% revenue coming from the switchgear and around 35, 37% coming from the wire and cables. So that means more as we go forward we will see the growth.
More higher growth coming from the switchgear market.
Rabindra Nath Nayak
But you know in presentation it is 55.7% sir, in Q3 is against 60% last year.
Rajeshkumar Doraiswamy
Yes, 55, I think nine months. If you see we are at around 57 and wire and cable is around 37%.
Rabindra Nath Nayak
So you mean to say this industrial switch gear will grow because it is some copper also copper must be contributing something to the growth of Swiss industrial.
Rajeshkumar Doraiswamy
Switch gear also I am talking about.
Rabindra Nath Nayak
Volume growth sir, not copper price growth.
Rajeshkumar Doraiswamy
Okay, so you mean to say the industrial switch gear is going to grow. That is the growth here. Based upon that you are giving guidance of around 20%.
Rajeshkumar Doraiswamy
Correct.
Rajeshkumar Doraiswamy
So this 20% guidance you are giving in the volume or it is.
Rajeshkumar Doraiswamy
Revenue growth. But we are definitely seeing volume growth also coming to the same level.
Rabindra Nath Nayak
Okay, 20%. So what did that. And also again I’m just one question on this market smart meter side. What is the expectation for next year for smart meter? Can you please. And which are the states you are looking at and where. What is the potential? Can you give some light? I. I understand that this year may be a little bit disappointing. But next year what is the guidance you are looking at? What is the guidance you are looking to see?
Rajeshkumar Doraiswamy
Sir, I. I would like to refrain from giving a number for the smart meters guidance because that’s where I think a Lot of issues have happened in the past because.
Rajeshkumar Doraiswamy
No, no, I am just. No, no, I am coming to you.
Rajeshkumar Doraiswamy
I already said several times that we have created a very good capacity, very good facility to produce a complete, complete meter in house which I think only top players in the country as a facility like that one. Secondly, on which states we are looking at, I think we are. We are Talking to various AMISPs who have taken orders from Maharashtra, Andhra Pradesh, Gujarat, Punjab, Madhya Pradesh. These are some of the large states that we are talking to including UP also to some extent. So these are the states that we are looking at. These are the customers we are talking to.
Rajeshkumar Doraiswamy
But sir, your competitor, if you sense they are doing well in this, you know, business. But what is the gap we you are according to you for which we are not able to grow? Because in energy solutions they have already done a very good execution. But so far what is the gap with we are finding according to you? Candidly you can say that, that we can understand that how to see this business in the future.
Rajeshkumar Doraiswamy
It’s only. It’s a problem for the new entrant. I think that is where we are seeing the issue because the HPL you mentioned and genus also we see, I think they are all very old companies in the meter business. They have been in the meter sector for many, many years and they are continuing to do the business for us. We are a new entrant in this business and we are seeing all the difficulties and challenges any new entrant will face in a government linked product. Product where the tender conditions are different, the customers are different.
So we are facing those challenges and we are trying to solve them.
Rabindra Nath Nayak
Okay, so is there any difficulty in marketing? So that kind of sales or marketing we are facing because it is over capacity right now in the meter so far as the meter is concerned. So how will you save through this? Because we have already invested around close to 25, 26 crores in this business. You know, how would we address the gap going ahead?
Rajeshkumar Doraiswamy
I mean how would you address. I think we are doing whatever is possible by us to see how we can fill our capacity. I think that’s what we are doing. So there are several things that we are doing. We are hiring domain experts, we are having marketing people, we are visiting customers. There are different issues for each customer that we are having and we are solving them. How will you do it? I think we are confident that we will do it. That’s, that’s how at this moment, all.
Rabindra Nath Nayak
The best for that. But conservatively, how much time you can give for next year, ultra conservative, whether two time sales or three times sales, what you can expect for next year.
Rajeshkumar Doraiswamy
As and when we get there. I think as and when we have the orders and we execute it, we will definitely inform the market. Right now I refrain from giving any guidance.
Rabindra Nath Nayak
Okay, thank you. All the best.
Rajeshkumar Doraiswamy
Thank you.
operator
Thank you. The next question comes from the line of Girish. Yes, an indigenous investor. Please go ahead.
Girish Mathrubootham
Hello.
Girish Mathrubootham
Thanks for the opportunity. Yes sir, I have a couple of questions. One is have you taken any price hikes across any of our products? So that’s my first.
Rajeshkumar Doraiswamy
Yes. Price hike we have done, I think we have done a very small price hike in the month of November. However, I think in February we are going in for a major price hike because of particularly the silver price. I think silver also is the major contributor for our switchgear business. So the price of the silver as we all know has gone up by close to 3x from where it was. So that has impacted our switchgear margins also close to around 2bps, 2 percentage points. So we are going in for price increase in the month of February and March.
Girish Mathrubootham
My second question is related to the data center, you know, market that will be coming up is already coming up in India. Do any of our products find its way into these data data centers, especially hyperscale data center?
Rajeshkumar Doraiswamy
Yes, I think some of our products are not directly going to the center, but indirectly we are supplying to customers who are making products for data centers. The transformers, inductors and filters that we make and wire harnesses. So these are some of the products that find market in the data center business.
Girish Mathrubootham
Okay.
Rajeshkumar Doraiswamy
And we see that that’s a major market. That’s a good growing market. Where we see good demand coming in from data centers is one and also the renewables.
Girish Mathrubootham
Okay.
Girish Mathrubootham
That was actually going to be my next question that looking forward to this market which is expected to be quite huge. You know, how are we. Have you made any plans on the drawing board of how we are going to place ourselves for this big order that is big market that is going to unfold?
Rajeshkumar Doraiswamy
No, I think we have already identified data centers and renewables as a major growth market. I think in our last call or even a call before last quarter we mentioned about this. We have already seen the outlook for the entire digital infrastructure growing at a very fast pace. And we are all set and ready to take advantage of this growth for whatever products that we have that can address this market, particularly the three fixed transformers and wire harness I mentioned.
Girish Mathrubootham
I’ll just put the Same question in a different form. Like if you’re currently looking at the hyper scale data centers that are growing in US there is a big, there is a shortage of components and products the way they are expanding. So I was trying to figure out are we able to understand that how we are going to place so that we should not have any issues regarding our supply chain whenever those orders come in. Like you know. So yeah, I, I think you have answered all the very best. That’s all from my side. Thank you very much.
Vineet Agarwal
Yeah, I would also add a little bit more. I think the US data center market was actually growing at a very I speed a few quarters away ago but in the last few quarters actually they have slowed down a little bit I would say. But I think now maybe post April we can see the demand coming up again. But right now the US data center market business is a little slow for us.
Rajeshkumar Doraiswamy
Yeah, that’s what I’m trying to. Is it slow because of the supply chain disruption? Is what I’ve understood. It’s become, the market has become a bit slow because of the supply chain.
Rajeshkumar Doraiswamy
Disruption.
Rajeshkumar Doraiswamy
Or I don’t know whether it’s.
Rajeshkumar Doraiswamy
Because of the new orders that are coming in.
Girish Mathrubootham
Okay, okay. I mean that, that’s something that we, I don’t know but overall it slowed down a bit and we expect this to get back again.
Girish Mathrubootham
Thank you sir. Thank you very much for the opportunity once again and all the very best.
Girish Mathrubootham
Thank you sir. Thank you.
operator
Thank you. We have the next question from the line of Ankit Kapoor, an individual investor. Please go ahead.
Ankit Kapoor
Thank you sir. Am I, am I audible?
Rajeshkumar Doraiswamy
Yes sir.
Ankit Kapoor
Actually most of my questions have already you answered regarding smart meters and other products division. So my concern is only regarding the increase in debt as I already asked that question in last phone call if you remember that. When are we planning to reduce our debt? Because it’s increasing quarter after quarter and impacting our bottom line. So my concern is increasing short term debt that’s impacting our balance sheet.
Rajeshkumar Doraiswamy
So if you look at our debt I think we have been, we have been stable from March, not much of an increase whatever. The short term working capital that we have increased is only for our working capital and particularly because of the smart meter. I think the increase in the debt is because of that. So once the smart meter starts running at a run rate that we expect things will be normal and we will start reducing the debt from there.
Rajeshkumar Doraiswamy
This quarter. Also interest expenses as if you see compared to last quarter and from last year also interest expenses increased significantly.
Ankit Kapoor
Yes, but if you look at the sequential quarter. We are at the same level, sir, compared to last year. Yes, it is definitely up.
Ankit Kapoor
For the next financial year.
Girish Mathrubootham
Can we expect production in debt for.
Rajeshkumar Doraiswamy
FY27 next financial year? We will remain stable at this level. I think so. But once we start seeing the normal business continuing then we will start reducing it.
Ankit Kapoor
Okay. And sir, what’s the update on that? You received the patent for the disconnecting and earthing device for high voltage application. Any update on that product?
Rajeshkumar Doraiswamy
It’s a new innovative rotary switch that we have developed for more than thousand volt. Until now it was around 600 and 800 volts. So we have developed a switch that can withstand thousand thousand volts. And this is a specific application for the railways. So railways have been increasing the voltage levels from 600 to 800 now. Thousand. So we have adapted to a product that can withstand thousands volts. So this is the first time that somebody has done a single switch that can withstand thousand volt in the rotary switch market. And that’s why we have got the packet.
Okay.
Ankit Kapoor
And the last question is just from on behalf of minority shareholders that just to boost the sentiment can management consider some imperial dividend or a bonus issue to boost the minority shareholder sentiments? It’s a request from my side. Thank you.
Rajeshkumar Doraiswamy
Definitely consider. Sir. Thank you for giving the inputs from you.
Ankit Kapoor
Thank you.
operator
Thank you. The next question comes from the line of Kishore Dasotani, an individual investor. Please go ahead.
Unidentified Participant
Hello sir. Sir, I have two questions. One is regarding the LOI you talked about in the last quarter of the 30 crore alloy for smart meter. So what is the progress on that front? And another question is. Sir, you talked about 20% growth in some segments of our business. So sir, on a blended level can we maintain 20 growth without the smart meters? And what will be the implanted EBITDA margin on that in the next year?
Rajeshkumar Doraiswamy
In the FY27 all the growth projections that we are giving is excluding smart meters. So as a company we will definitely be growing at around 20% for the financial year FY27. So that’s the target that we have. And we are confident that we will be able to achieve a 20% growth at the company level excluding smart meters.
Unidentified Participant
And sir, blended EBITDA margin.
Unidentified Participant
Blended EBITDA margins. I think we are. We should be able to do close to around 9 and half 10% for. For FY27.
Unidentified Participant
And sir, the LOI of 30 crores. Sir, what happened to that?
Rajeshkumar Doraiswamy
The LOI still. I think the order is still there. And Loi also is still there. We are waiting for certain clearances from the customer and the discom to continue. Continue that execution.
Ankit Kapoor
Okay. And sir, when we talk to the like other players in the smart meters industry, I understand that you are a new player but HPL and others talked about things improving on the ground. So sir, can we expect like with quarter or two quarter slack things will improving. Things will start improving for us as well.
Rajeshkumar Doraiswamy
Because things I also mentioned, I also mentioned that things are improving, things are getting better. So we will definitely see some, some kind of a change and order inflow for this division for us.
Unidentified Participant
Okay sir. Thank you. All the best.
Unidentified Participant
Thank you sir.
operator
Thank you. The next question comes from the line of Namneep an indigenous. Please go ahead.
Unidentified Participant
Hi, my questions are answered so I.
Unidentified Participant
Have no further questions.
Unidentified Participant
Thanks. Thank you sir.
operator
Thank you.
operator
The next question comes from the line of Debashi Shara, an indigenous restaurant. Please go ahead.
Unidentified Participant
Hello sir, my name is.
Unidentified Participant
And I.
Unidentified Participant
Want to ask that what will be your full year of FY27 growth plan will be.
Rajeshkumar Doraiswamy
Can you repeat it sir, I couldn’t hear you properly. Once again please.
Unidentified Participant
I want to ask what will be your growth plan for FY27?
Rajeshkumar Doraiswamy
I think as I mentioned, I think the sectors, particularly the industrial switch gear sector is seeing a good demand and lot of products that we have in that segment is seeing good demand like three phase transformers, single phase transformers, wire harness and some control gears. So that’s why we are giving a guidance of around 20% growth for, for FY27 excluding smart meters.
Unidentified Participant
And sir, is innovating any new products or something.
Unidentified Participant
That that’s something that’s always on, on the table. We, we continue to develop new products, we continue to develop new technologies, enter into new technologies. So that that’s the constant process but nothing, nothing significant or immediate for us to tell to you right now. Okay, thank you.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Rajesh Duresan, Joint Managing Director, Salsa Electronics Limited for closing comments.
Rajeshkumar Doraiswamy
Thank you once again. Thank you all for your interest. I can understand the kind of information that you need from the company, particularly on the smart meters. I think that’s a concern that every investor and shareholder has. I think we are working once again, I would like to assure that we are working hard to see how we can scale up every business that we have invested in. So with that assurance I would like to thank you all once again for taking interest and joining us today. Look forward to talking to you again in the next quarter.
Thank you.
operator
Thank you, sir. On behalf of Aditya Birla Capital, that concludes this conference. Thank you for joining us. And you may now disconnect your line.