Schneider Electric Infrastructure Limited (NSE: SCHNEIDER) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Udai Singh — Managing Director
Omkar Prasad — Chief Financial Officer
Analysts:
Harshit Kapadia — Analyst
Mahesh Bendre — Analyst
Anirudh — Analyst
Parimal Mithani — Analyst
Sanjay — Analyst
Viraj Mithani — Analyst
Piyush — Analyst
Gunal Bansal — Analyst
Pratik Dharamshi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q3FY26 earnings conference call of Snider Electric Infrastructure Limited hosted by LRS Securities India. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Harshit Kapadia from LRR Securities. Thank you. And over to you sir.
Harshit Kapadia — Analyst
Thank you. Alright. Good morning everyone. On behalf of LR securities we welcome you all for the Q3FY26 and nine month FY26 conference call of Schneider Electric Infrastructure. I take this opportunity to welcome the management of Schneider Electric Infrastructure represented by Uday Singh, Managing Director Omgal Prasad, Chief Financial Officer Mohit Agarwal, Head Investor Relation. We will begin the call with a brief overview by the management followed by Q and A session. I will now hand over the call to Uday sir for his opening remarks.
Udai Singh — Managing Director
Over to you sir. Thank you Arshit and very good morning all of you. I would like to take your company’s performance in few slides which I am sure you got a chance to have a look. The one which we shared yesterday but pull out the number and the slide and go on the slide 2 which states what your company vision and mission is. I just want to reiterate for better clarity. Your company will lead the new digitalized energy world by offering our customers and partners alike the innovated connected products and solutions which should be ready for the emerging power distribution.
Elevate expectations at any point in time in future. Now how we do this? The vision is that we do this through our balanced business models maintaining consistent superior quality and a very efficient supply chain which will keep the growth and profitability resilient and sustainable. Now what? At this point in time I would also like to share about our mission. We now are your energy technology partner for all our customers and partners. What it means is this. We electrify, we automate, we digitalize and every industry, business and homes aimed at driving efficiency and sustainability for all.
This is the mission which we would be now working at with the above vision which I just stated. Now I just want you and request you to go on the next slide which actually just stipulates and showcases our awareness about the company with the customers and stakeholders and what is it actually leading it? I just have few pictures on this to get shared. The first picture which you see on the left is a Suicon picture which is a SQORN event which was held in this quarter after a gap of 10 years. And this is by far a flagship event conducted by EMA where your company represented very well and the right 400 odd people corporations participated in this and had an active display of what your company does and this was a grand success.
What we also do is keep on representing ourselves, our thought leadership, our supremacy in the market by participating in events of repeat. Like there are a couple of pictures which you see is a IFTI event and EU chambers event where we got a place to really speak about as to what your company does for Indian customers and Indian stakeholders. On the right is a picture which is by Mr. Sriram Singh. There is a small video and I encourage to actually see on our website. This is a two minutes video which actually just establishes as to what the company has done in state of Bihar, especially in Patna in terms of really digitalizing the city by providing the most efficient systems which the company has in terms of maximizing the uptime of the DISCOM which runs south Bihar.
I would now take you on a slide which is a bit heavy slide I’m sure you would have seen is a market outlook. What your company sees and the headline message which I would like to communicate here is that the government is pushing growth despite the global or geopolitical uncertainties or headwinds which we face. Just to elaborate on this further, the GDP forecast for next year is supposed to be anywhere in the range of 6.8 to 7.2 which is consistent. What is also being done by government is to infuse more capex. We are expected to end the year revised estimate close to 11 lakh crores and the next year CAPEX is slated to be about 11% more at about 12.2 lakh crores which means that government is really trying to push demand.
And this is also coming out by various initiatives or policy decisions which have been taken by the government in last few quarters. Like the continuous repo rate cut. We are now sitting at 1.25% cut over what we were in December 24th. The tax release which has been given the GSE rationalization which has come up is all a booster for domestic demand. When the demand goes up, the supply also has a rightful reflection and there’s a reason why we see that this is good for the company. We also heard our Honorable Finance Minister say on the 1st of this month is infrastructure risk guarantee bond.
We are not fully aware about what these details of this fund would be. But this typically is aimed in mitigating the risk which a developer might see in putting up infrastructure projects which is again positive. And we are talking about the other investments which are in emerging segments like data centers, semiconductors and in the renewable space where there is a robust public investment plan. In 27, just to give you a sense, we are talking about close to 20,000 in data centers, maybe about 15 to 18,000 in semicon and maybe about an excess of upwards of 2 lakhs or 1.7 to 2 lakhs crore and renewables.
PLI scheme also stays because 3 4th of PLI is on the manufacturing II which is manufacturing cycle. And that is where people will put up more manufacturing setups and where we can supply our products. Now I also want to take about three, four minutes in terms of really telling you about the four pillars which are very pertinent to us and which would carve our future. And these, I would call them as energy transition which the country is witnessing. The huge growth which is anticipated in AI industrialization, the urbanization and therefore transportation. And of course last being the manufacturing resilience of the country.
Just to give you a sense as to what we are talking about five years down the line, we are talking about a renewable target of 500 gigahertz. We are talking about the EV penetration rate to go to 30%. This is what all we know despite the fact that we are still at 8ish now. And more importantly we are also talking about energy storage systems which are battery based just to make our grids more resilient and powerful. So is the case in data centers. We today as we speak we are at roughly about 1.7 gigawatts of it commission load which we see that in next five weeks this will go up to at least four times, if not more to about anywhere number seven to eight gigawatt.
Now this is important because the way data centers have been coming up, the way country needs it, the way population is using and leveraging the AI and digitalization, which is evident from the fact that we expect the distilled economy which today is roughly about 12, 13% will contribute to about 20% of GDP in 2030. You heard on the transportation about what is happening. We have actually come up from 17% when we got independent to about 41% urbanization which is slated to happen by 2030. And we heard the finance minister speak about the high speed rail corridors which are seven which are getting announced which will cover about 4,000 km.
The 16,000 crore investment and also an additional dedicated freight corridor which will be 2000km connecting Danpani to Surat. Manufacturing resilience stays as very important because we are driving Vixit Bharat at 47 and we are, we are witnessing the merit of these schemes which are getting launched by government. Especially the ECMS scheme which is where the investment has been doubled. We are talking about the dedicated rare earth corridors and two states which will sort of bring in lot of localization capabilities in making permanent magnets which will be required in you know, EV space and aerospace and industries like that and the law.
And the last is the Indian Semiconductor Mission 2.0 where another thousand crores have been allocated in the budget which will actually drive the semiconductor mission of the country. By becoming subsidiary now we the company, if you look at and you focus on the last line, we are getting ready for leveraging all these waves which the country will witness. And I would say at this point in time that we are at right inflection point to actually capture the growth coming in this industry. I’m also happy and proud to share a few of the wins which we did in this quarter which went by.
And speaking about the sunrise segments which is essentially data centers, renewables and semiconductors, we supplied entire end to end solution in one of the data centers in this Q3 where the order was taken for the entire value chain including power, including power transformers that this lies, AIs panels along with the subscriptive maintenance contract. We are talking about the breakers and the transformers which we keep on supplying in the segment of solar. And we are one of the largest orders we secured for transformers in 25 in this quarter. We stand by. And of course the last is the biggest order which we won from one of the leading semiconductor manufacturers putting up a front end FAB in state of Gujarat.
Continuing we also witnessed major wins in the core segments where we actually have been working for quite a while. And these are what we call as electro intensive segments typically being the metal mining and minerals, the mobility and also the power and grid which is nothing but the utilities we supplied here GIS panels. And this is one of the steel plants where we have supplied the high end high rated GIS panels. And so was another plant in central India where we supplied this connected panels which are for power distribution. And of course one of the large orders which came in from a north facility which is for the remaining units which are used for secondary distribution.
And as I said we are highly technologically advanced people and there’s a reason we prescribed in the TBCB tenders. And we actually got 765kv modernization and distillation win where we are supplying the control and relay panel and substation automation scadas. And the distal journey continues where we are supplying full SCADA system and one of the leading metro network in western India. You know I would also be very happy and proud to share as to what your company has been trying to do on the CSR angle where we actually the core underlying principle remains as how do we build skill around us? How do we, you know give something which is the basics necessity, you know.
And also how do we earn trust as a good corporate citizen. Now if you look at under these three buckets the skill development, we actually have established 10 skill centers in government. It is and we tell these students as to what they should be doing and how they can actually flourish and make their careers out of, you know, the contemporary technologies which India is witnessing. We are talking about community electrification. We electrify what we call as community health centers, the public health centers and few with solar energy and solar LED power systems. We in fact have been also trying to provide and reach out to about two and a half thousand underprivileged families in remote and slum areas by providing them portable lighting and charging solutions.
And therefore we actually have been recognized by Ficci and by FE Green Saathi award is something which we took in this quarter which went by now just continuing as to what we have been trying to do in the manufacturing plants which we have in the company. And the pictures which you see here on this slide which is slide number 10 is the work which has been done by us and our plants in Barova where we are now attempting to really see as to how do we measure and optimize the scope 1 and 2 which is a very primary fundamental basic of being more sustainable.
We have installed an on site 1 megawatt capacity at both Baroda plants. And just to tell you and give you a perspective, 1/4 of the power which we do is actually source out of renewable resources in our manufacturing site. If I speak about water management which we are very conscious about. We have been taking measures to reduce water consumption 30% and few examples. If you see the picture I am sure you would have seen there is a pond which you see which is the rain harvesting pond. And we actually leverage this which we have made for using 30% of water consumption in plant in Baroda.
We actually have also installed the liquid zero liquid discharge at all the plants and all the right usage by using treated Water for our washroom, etc. Is what we have implemented in the plants. Now we have kept safety at top of our radar and there’s a reason where we have sort of bettered our rooftop safety. And there are many things which we have done in terms of foolproofing our manufacturing operations by using solutions which are deeply engaging AI detection systems in terms of safeguarding our operators and people who actually are running operations. Now I’m also very happy to announce and declare that we have launched and I would urge you to go to page 12 which speaks about the latest in the block which is gmset which is a primary distribution gas based equipment which is made fully in India.
It has got all the global technologies of Schneider electric sitting inside and this is absolutely modular and distance what we have done. Now the key benefits is that you get being modular and distilled. It is more safer and reliable. It is displayed. It can give you all those elements of maintenance whether it’s predictive or condition based. It is, it has got better life because you can always predict what is going wrong in the asset. And of course because it is all indigenously made, localized in India, it is faster in delivery in terms of addressing the growing and agile needs of the country.
End markets for this are plentiful but to name a few are the power and grid which we are calling as utilities, the transportation which is metro network, airports, buildings which are high rise buildings, commercial buildings or office spaces. And of course the data centers which are going to be booming in times to come. Now at this point in time I would request my CFO Mr. Onka Prashad to share with you the financial performance. But I am also happy and I encourage you to go on the site where first time we have issued a press release for the performance of the last quarter which is available in on NSE, BSE and also at our own site.
Over to you Mr. Omkar.
Omkar Prasad — Chief Financial Officer
Thank you sir and good morning everyone and I really want to thank everyone to taking our time to join this earning call. I just want to give you the update on the financials performance of the quarter and nine months. I urge you just go to slide number 14 where we have a highlights of nine month and Q3. So this quarter I have to tell you that is the first time a quarter we crossed 1000 crore. It’s a steady performance that in one quarter we are crossing 11000 crore. And this has come with very good news with a strong order backlog.
So if you see in the slide we have order backlog growth around more than 50%. And we have order backlog for 1700 crore. You know in our company we also I just reiterate that what we have explained in the earlier quarter that our focus continue to have a you know more efficient order executions and focus on profitability. So this will remain continue and we are continue to make sure that we execute very efficiently going forward as well. In brief for nine months our order booking if you look at 37% growth and now we have order for nine months is 2657 crore.
For quarter we have a 60% growth which is 909 crore sales. We are at 12.3% growth around 2300 crore. And quarter we have 1000 plus which is 20 plus you know movement from the last same year. Profitability I’m just calling it out before exceptional expense. I will clarify you what is the exceptional expense in the next slide. But profitability for nine months we have crossed to 281 crore which is 8.2 crore YoY growth. And quarter 155 crore close to 20% IOI growth. If I move to the next slide number 15 where you can see the P and L it is already published today.
But I give a little bit detailed analysis that sales we grew around 12%. As you know we continue to leverage our fixed cost which is employee cost other expense and depreciation. If you look at. We have actually if you look at percentages to sell has reduced from the like like last year nine months in in in finance cost also if you look at in terms of the percentage is low and we have a good cash in the company. You must have seen the balance sheet in September and that also we are earning now certain you know income in the finance.
You know on the FDR exceptional item important to call out this nine month we have a gratuity impact due to the labor code change. The impact one time impact which is cumulative impact till December it’s coming close to 25 crore is what you see in exceptional item. And this is. You know every company is making a provision in the December last year if you look at we had an income here and if you recall that we explained that last year there was a litigation direct tax litigations where we opted the Viva Sevy Swas scheme of the government of India tax scheme where we opted and filed the settlement.
And because of that there was a provisions done in previous year got reversed. So we we had an income in the last year and then expense due to the labor code change. We have an expense and that’s why look at the Y to Y delta, it’s making a negative in the PVD label. There’s only one off. Otherwise our profitability before exceptional item we have grown 8.2% other tax expense and other comprehension numbers as normal. Nothing to specify here. If I take you to quarter performance in the slide number 16 again here the quarter sales is 20% growth, you know in all the overheads like employee cost, other expense and depreciation and finance cost as normal but be able to leverage it because of the very good sales growth.
And again all the exceptional item, what we call out just in the previous slide, it’s actually impacted the same, you know this quarter. And also the income was interest on reversal of DT litigation on Bivas Biswas. It happened exactly in the same quarter in previous year. So this also come in the quarter movement. And that’s why we have a normal tax expense and we have grown the profit again before exceptional even for quarter it’s around 15% before exceptional expense. Now I hand over to our moderator to get your questions to respond back to you. Thank you.
Questions and Answers:
operator
Thank you sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star in one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press Star in two. Participants are requested to use handsets while asking a question and also restrict themselves to two questions. For any more questions they may rejoin the queue. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Mahesh Bendre from LIC Mutual Fund. Please go ahead.
Mahesh Bendre
Hi sir, thank you so much for the opportunity. Great set of numbers, execution and order booking. Sir. I mean very, very impressive order booking. I mean we have booked around 900 crores of order this quarter. So how the order pipeline looks going forward, is it as strong as what we have witnessed in this current quarter?
Udai Singh
So Mahesh, thank you for the appreciation. And we are sitting at 1700 crores is a order book which we have currently which has grown upwards of 50% y and y. And you know these orders, you know we also grew 60% as you appreciated.
We see going forward these schemes which have been getting rolled out will boost the requirements because government is pursuing that there has to be a demand push coming and which we see that we will be able to maintain a healthy, I would say order intake in coming times as well.
Mahesh Bendre
Okay sir, in presentation you mentioned that we have launched a GM set modular and the digital switchgear. So is This a unique product for a data center is a unique product but not limited to data centers. It can apply wherever you need to distribute power at 33kV in the most compact and highly digitalized way.
Udai Singh
So just to give you a brief about this Mr. Mahesh, you know these are embedded with sensors which are really state of the art and can give you the entire health of the asset. You know also those type of health which were conventionally in the past was never available. So you know I don’t want to get into technicals but this is something which is really out of the class. So we’ll be the only company offering this product in India. I would not like to make a comment on it. People are trying to do something in their own ways but from our side this is very unique.
Mahesh Bendre
Sure. Thank you. Thank you so much sir.
operator
Thank you. The next question comes from the line of Nisarg from Valuequest. Please go ahead.
Anirudh
Yeah, hi, this is Anirudh from ValueQuest and congratulations on a strong quarter. First question was to understand the gross margins this quarter. So there seems to be a contraction in our gross margin in this quarter. So how should we look at it? Is it due to what are the factors that led to it and how. Should we look at the margin trajectory ahead?
Omkar Prasad
Thanks Aniruddh for questions. When is the cross margin? Yes, if you look at in terms of the percentage there’s a dilution but what we have the sales growth it’s coming the larger the impact of the mix. So as you know that we have a multiple segment in terms of the transactional where we offer standard product, we have services, then we have a projects and equipment and IGN So it is just the margin dilution. What you see the pair the last nine months versus this nine month and quarter to quarter mix has only changed the margin mix in the gross margin.
Nothing unusual I will say but that’s only a mix impact.
Anirudh
Great. So any impact of this commodity cost inflation that we’re seeing on our margins going ahead and how are the contracts structured in terms of price variation clauses etc.
Omkar Prasad
For commodity inflections is not impacted in this quarter largely because generally our projects, you know tenure to execute its, you know, three to six months. So we had a RM already on hand and process was in in WIP stage. So that’s why you don’t see the much impact of commodity in this quarter for sure. But yeah, obviously as different industry getting impacted we also foresee such impact may come.
Anirudh
And how do we hedge against that sir? Going ahead, I mean Are we able to secure some back to back contracts or commodity or is the position open?
Omkar Prasad
Yeah, but if you look at in the P and L in the last line, other comprehensive income, this include the hedging unrealized gain of commodity. So yes, we do hedge not 100%, but we do hedge the commodity some key component.
Anirudh
Understood, sir. So final question was on the data center opportunity, how large a component in our order inflows now, would data centers be contributing?
Udai Singh
Data centers till date has been roughly about 10ish. And we are trying to see as to going forward. How will this contribute more for your business?
Anirudh
Got it, got it. Thanks. And all the rest.
operator
Thank you. The next question comes from the line of Parimal Mithani from Credential Investments. Please go ahead.
Parimal Mithani
Hello, Good morning, can you hear me?
operator
No Parimal, please be a little louder. Thank you.
Parimal Mithani
Can you hear me now?
operator
Yes, much better.
Parimal Mithani
Yeah, so just I wanted a clarification in your opening remarks with reference to slide number one minutes, slide number four, you mentioned here you are an inflection point. Okay, can you tell what do you meant by in terms of opportunity for us? And second question is any time frame of coming to dividend distribution, sir, for the shareholders.
Udai Singh
I can take the first question. My. My colleague will take the second question. See why? Why? Mr. Perimal, I said we are at inflection point because today, you know, we do things which are around energy and energy management. Now for us, the energy stays as electricity and all this. What you see is on the slide four are the drivers of electricity demand, you know, coupled with it, as you generate more and more electricity or energy which is either from fossil or non fossil. You are also going to witness very strongly the management of this energy.
The multidirectional flow of this energy and the manufacturing in India will boost the demand of CAPEX equipment which the company makes. So all in all, because there is a thirst coming in which is getting witnessed and supported and reinforced by government policies, we see a pretty stable and strong chair for the company. As a reason why I said it is more of an inflection because everything seems to be moving in almost the right direction.
Parimal Mithani
So any can you quantify the addressable market size for us in terms of. I know the budget figure is quite high, but what is the addressable market size for us in this?
Udai Singh
Very difficult to answer, sir, because these are all different basis of segments and basis many other variables which come in picture. But you know, typically speaking, like for example, if you pick up power generation, it is something else. If we speak about distribution is something that you come to data centers. It really depends on you know where the data center being put up, what are the voltage class, the distribute, the mirroring, the redundancy mode of data centers and many things. So you know it will be highly correct of me if I can give you a ballpark number which actually as percentage of investment being done by the developer in saying this is the addressable market size.
So it’s really is different for different segments.
Parimal Mithani
Okay sir, and the second question, can you answer?
Omkar Prasad
Yeah, your question on dividend, you know your company has a dividend policy is there in our website and rest assured that the company is taking up the necessary step to take care of the board of directors considering all operational and you know, strategical strategy. And then accordingly we’ll come up and you know, you will let you know in in coming time. So rest assured and we know that these questions are coming from the last couple of times. So it’s there in the policies and we will work it on that.
Parimal Mithani
Okay, thank you.
operator
Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Sanjay from Goldstone Capital. Please go ahead.
Sanjay
Congratulations on very nice quarter, very successful quarter going forward. Could you share what sort of capex we have planned for the next for the remainder of this financial year and the next financial year.
Udai Singh
Thank you. Unkar, you take this question.
Omkar Prasad
Yes. So you know as per I think Sebi whenever we take a capex budget anyway it will get announced publicly I think last time what we have announced somewhere in mid of last year 2025 and updates are there in the balance in September and accordingly we’ll have the update status also in the March. So definitely if anything get approved internally you will come to know, you know to the announcement.
Sanjay
Okay, so this quarter being the strongest quarter seasonally going forward, are we to see some sort of smoothening out of the seasonality now in the business now that there is quite a bit of diversification across different applications, different end users.
Udai Singh
So I wish I could have answered you this very with certainty. But you know we are hopeful, we are hopeful for infusion which is being done by the private sector and also by the government sector in terms of really infusing and putting up capital. So we are hopeful that you know it will become more stable, slightly more predictable than what it was, you know.
But then I when I say this, I say this, the situation which we see today and as all of us will appreciate that you know, because of the geopolitical situations, things do, things may go slightly off track. But then you know what we are trying to do is how do we mitigate and you know post correct ourselves in case that those things happen.
Sanjay
So the strong order. Yes one would imagine because the strong order inflow that you got would give you quite a bit of visibility now going forward for the next year or two. And you know how this is going to be spread over the quarters and thereby you know, get a little more evenly spread.
Udai Singh
We could secure certain high value orders, few of them. And there’s a reason why you see a 60% growth in the quarter or 900 crores in number. You know, it really depends now the way these and these manufacturing requirements are going to be coming up and being seen by us. We are trying to, the company is trying to see as to how can we release this together a solution and adopt a solution approach so that we can maximize. And there’s a reason why I said we are hopeful that perhaps we will be able to see a stable growth in times to come in terms of orders.
Sanjay
My second question is on item in the other expenses basically do we have scope to leverage the fixed element of warranty expenses and management support expenses because these are fairly significant items going forward are we going to see some operating leverage around these expenditures to you know, so basically see them go down as a percentage.
Udai Singh
See warranty expense. It’s not a fixed component. Warranty expense depends on the value and yes, territory allocations, another cost which are there obviously we’ll see deliveries for sure.
Sanjay
Right. Okay. Thank you. Thank you and excellent work. Thank you.
Udai Singh
Thank you.
operator
The next question comes from the line of Viraj Mithani from Jupiter Financial. Please go ahead.
Viraj Mithani
And conversation outstanding numbers. So my question is we had a product called E House and I think that something like that is being used massively in data centers. So do we still have this product or.
Udai Singh
Viratji. Of course we have this. You know we are one of the pioneers who establish this technology in the country and we continue to have this and it’s going strong. And this is just to clarify. This is has got multiple usage not limited to data centers. It is, it is primary a solution which is where you are killing speed. And you don’t want to get into a civil construction of a substation where you box it up in a steel enclosure and put everything and thereby making it mobile at times.
And this is seen by lot many people including power and grid data centers. Of course do they have this at times? Because success in data centers in India is how quickly can one make an infrastructure for hosting data? It does use it. What it also use, just to elaborate is something which is not in E house but is a skid. And skid is where you put everything on a platform, make it one composite structure. You know, you install it as one composite structure and it actually gives you a plug and play advantage. So there are many things which are evolving and let me assure you that we are on top of all of them.
Viraj Mithani
Okay, so what is the scope? Can you give some market numbers on the house or is it possible?
Udai Singh
You know, there is a very thin line. I would not be able to give you some numbers. But you know, there’s something which goes as E house and a power substation or a compact substation. These are usually a mirror term which is used and you know, the E house or stroke, the CSS or PSS market if I may say, if my sense is about 1400 crores in the country and we directly or through our partners are at a rightful share in this.
Viraj Mithani
And sir, when you slide you refer to the word digital. Does it. Are you referring to ecostrux?
Udai Singh
Yes, of course. So ecostruxure stays as the core, the basic fundamental. And if you, you know, thank you for reminding us of Ecostruxure that if you remember, there’s something which we call as connected and there’s something which we call a edge and there’s something which we call as analytics and the connected is the one which is the destination and sensorivation because you provide these sensors which give input to a simulator or an accumulator which therefore is topped by a layer of software which give you far more insights into anything which you would like to seek.
So yes, distill is the basic backbone of Ecostrux. How the revenue shared in the interruptive.
operator
Raj, I would request you to rejoin the queue. Thank you. The next question comes from the line of Piyush from Batliwala and Karani Capital. Please go ahead.
Piyush
Congratulations on a very great set of numbers. I wanted to understand currently, what is the percentage of exports that we have and will any of these free trade agreements that have been signed in particular the EU FTA have any benefit to us?
Omkar Prasad
Okay, so if you look at exports today, in nine months, if I give you the number it close to 11 to 12%. Okay. And we also have a certain recharges. So that’s a mix we have in exports.
Udai Singh
And just to add. Just to add to what? Sorry, just what Mr. Said, you know, these are very positive movements which we are trying to Do a free trade agreement with EU which we all saw. We are still trying to see as to what additional business will it translate for us because it is not yet out in great details as to what will facilitate. But overall there is a positivity between, you know, India and Ethiopian nations.
Piyush
Okay. And my second question is, do you have any kind of guidance that you can give for, you know, Q4 generally being the strongest quarter.
Is that something that we can, you know, continue to think of in this FY as well,
Udai Singh
You know, I cannot be, I cannot be telling you any numbers, but we would be rest assured that your company is trying to do the best we can under the given confines of operations which we have.
Piyush
All right, thank you.
operator
Thank you. Participants please press time one to ask a question. The next question comes from the line of Gunal Bansal from NBG Investments. Please go ahead.
Gunal Bansal
Yeah, good afternoon. And my question is to Mr. Uday Singh. We heard your opening remark which talks about a very strong footing of the company and it is well supported by your financial number. So my question is what. What are the challenges or concerns which you see which makes you worried?
Udai Singh
Mr. Bansal, thank you for asking this. You know, today, if you really ask me, the topmost priority of us is how do we have a profitable growth which means that we have to pick up the right strategic contracts. Two, as I think just few minutes ago, there was another gentleman asking how do we mitigate and the risk of raw material impact which we might see in times to come and what at this point in time I want to say that while there can be an impact, but the actions, internal actions taken by us is how do we mitigate that impact to the least.
So if you really ask me today, Mr. Bansal, we are trying to see as to in this geopolitical situation, in this absolutely volatile raw material scenario, in the growing demand which is challenging capacities of manufacturer number one, how do we pick the right contract number two, how do we execute it profitably mitigating the risk and volatility of raw material which those contracts might offer.
Gunal Bansal
Yeah, thank you. I think this is helpful.
operator
Thank you. The next question comes from the line of Pratik Dharamshi from Union Mutual Fund. Please go ahead.
Pratik Dharamshi
Yeah, thanks for giving me a chance to ask a question. Many congratulation team for a splendid set of numbers. A couple of questions from my side. One is which are the sectors which you are seeing good growth or positive tailwinds currently and from next couple of year point of view. And the second question is we have A lot of our products in the distribution capex side as well. So what. What are you. What’s. What’s your understanding in terms of potential discom related opportunities going ahead for our products?
Udai Singh
See this RDSS scheme is a booster and you know I can rattle out many views on segment wise but for us what stays important is the power and grid. And you rightfully mentioned in terms of how do we. How do we maximize our presence in the distribution sector of power and grid. There are many states which are. Which are augmenting their infrastructure, modernizing their infrastructure not not only tangibly by putting up the capex equipment which we offer and supply but parallel there is a lot of push which actually has been happening in terms of how do they modernize the localized and the national grid.
Now just to give you some insight even the Ministry of Power has been actually advocating extensive usage of AI and ML for making the grids more resilient and transparent. So we see this as a major booster. We see the mass rapid transport in the country is going up. We are talking about airports being made, new ones. We are talking about metro networks being getting established besides the the four metros to other cities. We know that data centers will see a spike which will again fuel the power demand. So all in all we. If you ask me is there are many segments which are really clicking and hopefully if everything is going right as planned it will give us a stable environment to operate in times to.
Pratik Dharamshi
Sure. And just a follow up on that. Considering a lot of levers for growth for our company there are scope for also operating leverage to kick into our business. So are you happy with the current margin band or over time do you see there is opportunity to get better on the margin side as well?
Omkar Prasad
As I said sir, we are trying to do business profitability. So we are always in constant search for which areas do we optimize the cost, which areas can we get better prices? So there’s a continuous rigor which we have in the organization. So the leverage of volume will certainly come because as you know is there on our website the capex which we’re infusing in all our three plants in terms of getting ready for the future is those volumes. Certainly there will be some advantage and some leverage will come on the profitability.
Pratik Dharamshi
Got it. Thanks a lot. Thanks a lot and wish you all the best.
Udai Singh
Thank you.
operator
Thank you. The next question comes from the line of Sanjay Kohli from Goldstone Capital. Please go ahead.
Sanjay
Thank you. So do we provide the breakup between our central government deals and the state government Deals the percentage. For instance this Bihar, South Bihar Sapatna Discom case study which you’ve highlighted in the presentation is this, I mean it’s a related question. Is this a recent relationship and going forward it would probably extend to number of years and how significant in particular would I mean if you can give some, some sense of some kind of number to this sort of thing and the division between the center and the state. Elaboration of this sort of. This case study.
Yes. So Sanjay, I’ll try to answer this and I, I hope that I’ll be able to clarify. Now I have not greatly understood the split which you are seeking between center and state. But if there’s any distribution company which is government run seeks funding they have two options. Option is it, is it is done by the state and as you rightly said ops it is funded partially or fully by center and there are two nodal agencies which were REC and PFC who used to do that which are getting merged by the way. Now that really doesn’t matter to us as to who’s the funding agency.
Eventually we need to have clear right of way. We need to have clarity in what we need to supply. We need to have clear support from the state coming in to implement our solutions and handover if that is there. To answer your question we don’t have the, we don’t track as to how much is state and central funded. Now two, you’re asking about Bihar. There’s something which we have actually commissioned to the last mile some time ago and recently. But what we are trying to showcase is that there is certain cities which have ambitions to become smarter And a very important piece of this is how do you make the basic necessities available 247 and this is just a showcase of that which you know Patna has done where you know if you.
I do not know whether you got a chance to visit Patna 25 years ago and what you see Patna now in terms of availability of R and the support which this form is able to give it has been getting possibly because of the solution. Yeah, huge, huge, huge difference. Obviously.
Udai Singh
Hello.
Sanjay
Thank you so much sir. Thank you. Thank you. Thank you.
operator
Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to the management for the closing remarks.
Udai Singh
Thank you so much. And I really would like to extend thanks and for the appreciation which you have given to the team here along with me I have Mr. Mohit and Mr. Omkar who has joined for this and I wish you a great day and loss of health and wealth in coming times. Thank you so much. God bless you all.
operator
Thank you, sir. Ladies and gentlemen, on behalf of LR securities, that concludes this conference call. Thank you for joining us. And you may now disconnect your lines.