Shankara Building Products Ltd (NSE: SHANKARA) Q1 2026 Earnings Call dated Jul. 29, 2025
Corporate Participants:
Unidentified Speaker
Sukumar Srinivas — Executive Director
Analysts:
Unidentified Participant
Sayam Pokharna — Analyst
Kushal Kasliwal — Analyst
Ankit Shah — Analyst
Nishant Bhatt — Analyst
Deepak Prakash — Analyst
Chetan Damania — Analyst
Love Gupta — Analyst
Ankur Kumar — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Shankara Building Products Limited Q1FY26 earnings conference call. 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 0 on your Touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Sahyam Bokharna from TIL Advices. Thank you. And over to you sir.
Sayam Pokharna — Analyst
Thank you Aviras. Good morning everyone and thank you for taking out the time to join US in this Q1FY26 earnings conference call of Shankara Building Products Limited. The investor presentation and press release has already been uploaded on the stock exchange and on the company website. If you wish to be added to our mailing list please feel free to write to us. To take us through today’s results we have with us from the management team Mr. Sweet Srinivas, Managing Director, Mr. Dhananjay Nirlai Srinivas, Executive Director and Mr. Alex Varghese, Chief Financial Officer. We will begin with a brief overview of the quarter from Mr.
Dhananjay Mirlay Srinivas followed by a Q and a session. Please note that any forward looking statement made during this call should be considered in conjunction with the risks and uncertainties that we face. These risks and uncertainties have been detailed in our annual report. With that I would now like to hand over the call to Mr. Srinivas. Over to you sir.
Sukumar Srinivas — Executive Director
Good morning and thank you for joining us today for the Q1FY26 earnings call of Shankara Building Products Ltd. As we start this new financial year I am pleased to present an overview of our recent performance and highlight the key developments of the quarter. We are happy to report that we have continued our robust volume growth in in the steel business. This quarter we achieved a significant milestone by delivering 2.38 lakh tonnes in steel volume. This represents a 35% year on year growth and stands at our highest ever Q1 volume setting a strong tone for FY26.
Our non steel business recorded a 5% growth year on year EBITDA margins improved to 3.58% in Q1 FY26 compared to 3.2% in Q4 FY25 and Q1 of FY25. As a result, EBITDA rose to rupees 59 crores reflecting a 43% year on year growth. Despite our expanding scale, we maintained strict control over working capital which averaged 29 days this quarter versus 30 days in FY25. This working capital discipline also allowed us to keep our finance cost in check. As a result, net profit for the quarter stood at rupees 32 crores marking a 102% 102% year on year increase.
We remain the clear market leader in South India across both retail and non retail verticals. Retail growth was healthy as our same store sales growth reached 22% in Q1FY26 up from 14% in FY25. The first quarter saw subdued demand for steel and building materials. There was an early onset of monsoons in May in many parts of the country and infrastructure and construction activities witnessed a slower than anticipated recovery. In spite of these challenging conditions, Changar recorded a double digit growth in both volume and value coming in at 35% and 27% respectively. All our SPU segments saw good growth led by flat forests at 65%, roofing at 35%, pipes in tubes at 32%.
All year on year our non steel segment faced headwinds and recorded only a 5% growth year on year led by our plumbing product at a 15% growth and relatively flat sales in the other segments consisting of tiles, fittings etc. On the operational front, we have inaugurated two new procurement centers, one in Jabarpur NP further cementing our presence in Central India and two in Ganavaram near Vijayawada, strengthening logistics and service capacity in that region. We continue to follow our approach to establish a strong steel foundation first before expanding to non steel operations. Another notable development this quarter was a margin improvement in both non retail and manufacturing operations which had faced headwinds in the previous year.
In regards to our B merger process, all matters as required by MCLT have been provided. The matter is in front of the Honorable Tribunal and the next hearing is scheduled for end August 25th where we anticipate receiving the final LCNT order on the scheme of the demerger. All requisite actions from our side are complete and upon receipt of the NCIP order we will promptly move forward with ROC filings and related processes. Consequently, we now anticipate concluding the demerger in Q3FY26. We are confident of continuing our growth story in ensuing quarters and are on track for achieving our target of 1 million tonnes for FY26.
The company is working hard to achieve the targeted non steel numbers in the coming quarters. RBI’s recent policy measures including rate cuts and liquidity infusions should provide some impetus to the construction realty and building material industry. Samkara continues to be a unique marketplace in the building material industry with a strong presence in steel and a growing non steel business. Shankara has 126 fulfillment centers which includes 93 operational stores spread across 1.3 million square feet in 10 states and one Union Territory of India. Shankara has strong logistics network ensuring seamless access for our customers. Our operations have penetrated at a grassroots level with a strong Presence in Tier 1 and Tier 2 and Tier 2 and Tier 3 Towns and cities apart from key metros and capitals in our geography.
We are truly an omnichannel marketplace representing multi brands across multiple verticals giving our customers last mile service. Shankara is a trusted leader in the building material sector committed to quality, affordability and customer satisfaction. Thank you all for your attention. We are now ready to open the floor for any questions you may have.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star in one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press Star and do participants are requested to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue as. The. First question is from the line of Netics from NV Alpha Fund. Please go ahead.
Unidentified Participant
Hi sir. A good set of numbers. My first question is sir, we have seen margins improve significantly in our enterprise segment. So just wanted to understand are these margins sustainable in the enterprise segment or are there any one offs in this?
Sukumar Srinivas
Yeah, the enterprise business. Yes. I think one of the key factors that has happened in Q1 is there’s not been a very subserved system in let’s say a huge inventory drop as such. So that has certainly helped us in sustaining margins in the quarter one. So I believe that if the overall looking at the current conditions I do believe that enterprise margins are sustainable.
Unidentified Participant
Right. So the 2.2.5% margins are sustainable in the enterprise segment because we have not seen such margins in the past seven, eight quarters. That’s the reason I ask.
Sukumar Srinivas
Yes, yes, yes.
Unidentified Participant
Right. And so my second question is, you know, despite you know, such high growth in Enterprise channel which, which I assume would majorly be steel and less growth in the non steel retail business. Our working capital has, you know stayed very much in control. So is it safe to assume that you know the non steel retail segment is more working capital intensive for steel business?
Sukumar Srinivas
Definitely. I think non steel we do have a little bit more of inventory holding because of how we cater to customers, branching over multiple verticals and SKUs. So there’s a limited amount of increase you would say in working capital for non steel.
Unidentified Participant
So what is the difference in the working capital? So if I may ask between non steel and steel?
Sukumar Srinivas
Yeah, non steel approximately around 40 days of network viability is there. As Mr. Vinid said, inventory will be on the higher side. We’ll be giving more inventory over there.
Unidentified Participant
Sorry sir, I did not get the number you mentioned.
Sukumar Srinivas
One non steel will be around 40 days of working capital because inventory is a bit higher.
Unidentified Participant
Right, got it sir. That’s it from us. Thank you.
Sukumar Srinivas
Thank you.
operator
Thank you. The next question is from the line of Kushal Kasival from Invert research. Please go ahead.
Kushal Kasliwal
Yeah, hi sir, thanks for taking my question. Sir, just a long term perspective on the company and pardon me if this is a repetitive question because I started looking at your company very recently sir, what has changed for the company in the last two, three years? Because previously we were not growing as ambitiously and our same store sales growth also seems to be very high versus some of the other peers which have also reported their numbers. So what has been a key differentiator for the company over the last two, three years?
Sukumar Srinivas
I think the key differentiator the company has really has started focusing on growth in this competitive environment. In the past there was a little greater focus particularly the pre Covid and around the COVID times where we were a little more focused on the margin and the bottom line only then I think the key change was if you miss the bus in growth I think the company stands to lose overall in the long term perspective I think that would be the key change that has happened over the last four to five years.
Kushal Kasliwal
Some of our peers are actually calling out decline in steel business and talking about the pan India decline on yoy basis. But we have seen 22% same store sales growth. So any, any reason why we have like a very different kind of result versus the overall market. Are we taking market share or what is happening?
Sukumar Srinivas
I think two things are happening. One is certainly we would have taken some market share. Second thing is we did. If you see in our results in the steel segment we have grown quite substantially in the flat products where we also had a slightly lower base we have been talking about in the last year, year and a half we’ve been saying that the company’s focus is going to be greater in the flat products area. So I think that has also yielded better results and resulting in good growth.
Kushal Kasliwal
Thank you. Thanks.
operator
Thank you. The next question is from the line of Ankit Shah from Fusion Capital. Please go ahead.
Ankit Shah
Yeah, hi, I’m audible right. Hello.
Sukumar Srinivas
Yes, yes.
Ankit Shah
Yeah, Congress on a great set of number and continuing the growth momentum. My question was on our NCLT case. So I was going through the case details in the last two months. Like on 26 May and 27 June there were two hearings subject on the final hearing. So what happened on that key Every time it is one month delay. So is there any confusion on that day?
Sukumar Srinivas
There is no confusion. I would not like to take this answer on a public. So to be very honest, there’s absolutely no confusion. I think it is just, I mean procedural or I don’t know what been delays. That’s all I can say as of now as far as we go, whatever has been formalities, everything has been fulfilled well, well, well in advance.
Ankit Shah
Okay, so we are confident of completing the entire demerger and testing in Q3FY26, right?
Sukumar Srinivas
We were very confident to close it in H1 itself. But I mean, you know, the honorable courts a little bit, we are at the mercy of the courts so we can’t really predict as to exactly how they would react. If there’s a leave of a judge in the bench on a particular date, things could get delayed. But yes, we do hope and we anticipate that we should get it done because once the entry process is over, I think a lot of it then comes back onto the company where the next bit of the procedures have to be, you know, fulfilled.
It’s a lot of formalities after that, but which is more in our control.
Ankit Shah
But yeah, thank you.
operator
Thank you. The next question is from the line of Nishant Bhatt from Equity Works Ltd. Please go ahead.
Nishant Bhatt
Am I audible, sir?
Sukumar Srinivas
Yes.
Nishant Bhatt
Yeah. My question, first of all, you know, congratulations on a great set of numbers and on the margin expansion after a long time, you know, there has been a margin expansion in the company. My question was regarding two things. First is the Fotia ceramics, right. How has that, you know, part been building out? What are the like, you know, consumer feedback you are getting from that build out?
Sukumar Srinivas
So when it comes to pocha, we’ve got great feedback from customers in terms of quality and uprising. I think we’re doing well in that segment. But as you know, overall the ceramic segment has been a bit down for the last six months in the market. So we’re also facing a bit of a slowdown there. But we are confident that we can stick to our growth plans and continue building the brand.
Nishant Bhatt
Okay, and my next, next question was regarding the same thing. See the ceramic segment, I think overall, you know, the market was subpar for. The past, you know, three, three to. Four years because of, you know, no. Exports from the MODI region currently, I. Think because the UK FTA has been announced. And do you think because of this, you know, some exports can happen and you know, it will, you know, help in easing out for the domestic, you know, branded players?
Sukumar Srinivas
I think it’s too early days to, you know, understand the entire FDA agreement. But yes, positively looking at it, it could help us to a small extent.
Nishant Bhatt
Oh, thank you. That’s all, that’s all from my side.
Sukumar Srinivas
Thank you.
operator
Thank you. Participants who wish to ask questions may please press chart in one at this time. The next question is from the line of Dhanil Desai from Total Capital. Please go ahead.
Unidentified Participant
Hi, good morning everyone. Am I audible?
Sukumar Srinivas
Yes.
Unidentified Participant
So first question is on the printing product side, the non steel business, you know, the entire industry has been operating in a very challenging environment since last two, three years. But we have been able to grow at a very decent pace. Probably this is the first quarter where we are seeing very significant moderation in growth. So one is something which has changed or now going forward, should we assume that because of the higher base now feel kind of more be aligned with the growth that is happening in the industry. How should we look at the growth going forward?
Sukumar Srinivas
So I think what has also happened is compared to one is we had a lower base and we are growing rapidly. We’ve also seen the last three months there has been more of a hit in the two big southern states. We operate in big Karnataka and Andha Telangana. So I think that is also with a bit of a slowdown in Kerala as well in cash flows. I think that’s kind of what has hit many players in this industry. And since our launch period is government to south, we also did face a brunt in that. I think going forward we are looking to still keep up to our guidance numbers, still push our growth.
I think the company is working hard towards that and I think it’s too early to say whether it will be muted for the whole year, but we are definitely looking to get back on that. Growth, momentum.
Unidentified Participant
Okay, second question on the steel side. Since we are not adding more 12 footage and the number of stores, a large part of our growth has to come from sss, as you also indicated in the presentation. So generally, sir, our understanding is that in retail business to sustain this kind of SSFC is very, very difficult. So what are we doing to ensure that we are currently at 20% plus kind of SSFC that we sustain this number?
Unidentified Speaker
I think one of the things which I have been, I mean I mentioned even about a year earlier is that the first objective is to try and sweat out our existing retail stores and our fulfillment centers to the maximum possible. I think that’s something we have been working very, very, very hard to keep pushing our existing stores to the maximum level possible. And though we have added two stores this quarter, I think that you will find that in the ensuing the second half of the year we will be adding two, three more stores. So it is not that we are not going to be adding new outlets at all.
We have been definitely very slow at adding outlets in the last two, three years. But that will slowly but steadily gain momentum over the next few years. We are also completely aware that to sustain such high SSGs are going to be difficult without opening stores in the future. So we have been, our simple strategy in the last three years has been sweat it out, push and see that we get the maximum out of our existing stores. So I think, yes, like you correctly mentioned, I think the, you know, it is going that kind of a momentum on SSG going forward will be tougher without adding, you know, newer opportunities and adding newer centers.
So I think that is something we are very much working at.
Unidentified Participant
And one follow up on this. So I think we did very well on the flat side and I think so. Is this also one of the reasons why our FFG has been high? Because the flat steel products have been added and it has grown much faster because of the low waves?
Unidentified Speaker
Very much, very much.
Unidentified Participant
Okay. And that you think that on flat, you know, higher than company growth is possible given the load as a much larger market?
Unidentified Speaker
Definitely.
Unidentified Participant
Okay, got it. Thank you.
operator
Thank you. The next question is from the line of Deepak Pradash from Sapphire Capital. Please go ahead.
Deepak Prakash
Hello. Hello.
Sukumar Srinivas
Yeah, hi.
Deepak Prakash
Yeah, hi sir. Am I audible?
Sukumar Srinivas
Very much.
Deepak Prakash
Okay. Okay. Yeah. Thank you very much sir for this opportunity and many congratulations on, for a great set of numbers. So just first up, I mean do we have any kind of inventory gain in this quarter as you indicated in the last quarter? I think we have some steep prices increase in Month of March and April. And so some inventory gain was expected this quarter.
Sukumar Srinivas
Yeah, there are some inventory gain in. This quarter Approximately around the 5 crores inventory gain we got.5 crore inventory.
Deepak Prakash
And how has the prices, I mean in the coming quarters we expect, I mean any kind of inventory gain or loss some indication and that would be helpful.
Sukumar Srinivas
Sir, the steel prices did go up in April and then it sort of plateaued in May and it has come down in June and July too. So we are more or less where we started in March is where we are pretty much back there as far as July goes. But the good news is that it is sort of plateauing out and it’s at least with what we anticipate in the next two months. Certainly I think it will be a sort of a steady pricing rather than downward pricing which we saw over the whole of last year.
So I think it’s sort of plateauing up. Yes.
Deepak Prakash
Ideally in the coming quarters we should not be expecting any kind of, I mean any major in entry gain or loss. I mean it largely, I mean will be flattish.
Sukumar Srinivas
Yes, yes, okay, okay, fair enough.
Deepak Prakash
I, I got that. And now if I have to bifurcate this, I mean demerger that that is expected. Now if you want to bifurcate the whatever interest expense, how should one look at, I mean this 12 crores per quarter of interest and depreciation 4 crores of per quarter. So how should one look at individually for manufacturing as and the marketplace business that you can provide.
Sukumar Srinivas
So first quarter we are saying 9 crores is towards marketplace and around 3. Crores is towards manufacturing.
Deepak Prakash
So your voice was muffled. Can you just repeat please?
Sukumar Srinivas
Out of 12 crores around 9 crores is towards marketplace and 3 crosses towards manufacturing.
Deepak Prakash
Okay, okay. That’s interest. And what about depreciation?
Sukumar Srinivas
Depreciation will be almost similar around the 4 crores.
Deepak Prakash
So, so interest cost 9 crores is for marketplace in the first quarter and depreciation about 2 crores.
Sukumar Srinivas
Correct, correct.
Deepak Prakash
And then how would that debt bifurcation be? I mean what would be current debt and how will the individual business be allocated that debt?
Sukumar Srinivas
Now current debt is around 550 crores including acceptance in that around 125 crores is manufacturing and the balance is the marketplace.
Deepak Prakash
So 125 crores is manufacturing and balance would be. That’s very clear. And sir, in terms of your margins aspiration in your marketplace. So currently this quarter it was around 3%. So how should one look at, I mean if you have to see next two years what sort of aspiration we can have in the marketplace. EBITDA margins.
Sukumar Srinivas
Yeah, we are looking at building up in the next couple of years. We should move up to closer to.
Deepak Prakash
4% in next two years. 4% which was close to about 3.3%. Right in this quarter
Sukumar Srinivas
from the current level.
Deepak Prakash
And just one final query from my side on a consolidated basis. If I adjust for this 5 crores of inventory gain. So your adjusted EBITDA margin is close to 3.3% as compared to your reported EBITDA margin of 3.6%. So can one take that as a base, 3.3% as a base going forward or how should one look at overall on the margin strength?
Sukumar Srinivas
I think you can take that as a conservative base
Deepak Prakash
on 3.3%.
Sukumar Srinivas
Yeah. Yeah.
Deepak Prakash
Okay. Fair enough. That would be from my side. All the best. You. Thank you so much.
Sukumar Srinivas
Thank you.
operator
The next question is from the line of Chetan Damania from Swan Investments. Please go ahead.
Chetan Damania
Good morning, sir. Thank you for the opportunity. Am I audible?
Sukumar Srinivas
Not so clearly. If you could just be a little upper, please.
Chetan Damania
So just wanted to check. In terms of our store expansion, as you indicated that we are cementing ourselves more stronger in the central market with the opening of a store in Devalpur. So for FY26, in terms of our roadmap or layout, you can help us understand the new stores that will be. That will be. Will be opening up.
Sukumar Srinivas
I think there will be a mix. I think it won’t just be central. There will also be certain territories in the south and all the parts of the west. If you are looking to expand our stores. But definitely the focus is western and central India.
Chetan Damania
But in terms of the numbers of stores, can we assume that you’ll be opening a five to six stores or it will be lower than that.
Unidentified Speaker
It should be around 4.
Chetan Damania
Will be around 4. So a store every quarter that probably we can probably look at in FY26.
Sukumar Srinivas
Yes, yes.
Unidentified Speaker
Not every quarter. I’m talking about the
Chetan Damania
same set from second quarter. Yeah, yeah. And sir, on the working capital, definitely we have seen some improvement, marginal improvement in working capital compared to FY25. But going ahead with the marketplace and the demo just in place, how shall one look at your working capital cycle for 2027?
Sukumar Srinivas
No, we will continue with that 30 days of networking cycle.
Chetan Damania
Okay. Okay. That’s all from my side. Thank you.
Sukumar Srinivas
Thank you.
operator
Thank you. The next question is from the line of Kunal to cars. So if we see. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Sukumar Srinivas
Yes.
Unidentified Participant
My question is about pipe. Did you Mention what the growth rate was in pipe?
Sukumar Srinivas
Yes, we did.
Unidentified Speaker
The growth rate around 30%. Is the growth rate in pipes.
Unidentified Participant
30%?
Sukumar Srinivas
Yes.
Unidentified Participant
And what do you expect? What does the outlook look like for five years particularly?
Unidentified Speaker
See perhaps I would say that this year if we sustain this, it may not hold on to the same because Q1 was a slightly lower base. I think if we can sustain and hold on to a 20% over the next three quarters and sustain that over the year, I think we should have done a pretty good job.
Unidentified Participant
All right, thank you very much. That was my only question.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press char and one to ask a question. The next question is from the line of Ankur Kumar Capital. Please go ahead.
Unidentified Participant
Hello sir. Congrats for a good set of numbers that I wanted to understand. Sir. I wanted to understand on this volume target of 1 million ton, our Q1 run rate of 2.38 is. Is lower than that number. And I think Q2 could have monsoon effect. So this number will it be lower in Q2? And how should we look at going into second half, sir?
Unidentified Speaker
See if you look at normally Q1 is generally starts fairly muted and quite often Q1 numbers are lower than Q4. This year we have vested Q4 by a small. That’s number one. Number two is this year the monsoon also started very early. Actually most of May and June have been very much like a very kind of a monsoon Y period. So and thirdly, it is always the second half that does much better starting from around November to March. And even if we take last year’s numbers, it would have been in sort of a 40, 60 kind of a ratio. So I think we are very confident despite 2.38 being about 24% for the whole year instead of, you know, bang on S25. I think we are very confident that we should be able to achieve targeted numbers.
Unidentified Participant
So can we expect like say 40, 45 in 1h and rest in second half?
Unidentified Speaker
Definitely.
Unidentified Participant
Got it. Sure. That’s it for my session. Thank you.
operator
Thank you. The next question is from the line of Apuro Bandis, an individual investor. Please go ahead.
Unidentified Participant
Thank you sir for the opportunity and congratulations for the good set of numbers. So my question is on the trade receivers, how much is it as of today? As of Q1 and like, if you can share the breakup between the manufacturing in the marketplace.
Sukumar Srinivas
Trade receivable is around 800 crores. That is coming around 37 days. Okay. When you are seeing the breakup in approximately around 38 days and around 17 days in manufacturing.
Unidentified Participant
Okay, answer, answer. My question is on the growth in the vehicle like in the Froni 5 we will be revenue of around 5267 crore. Right. So like how much good can we expect in the in the marketplace business?
Sukumar Srinivas
We’re guiding that are what we’ve said in the beginning here. That is 2025 growth for the marketplace.
Unidentified Participant
Okay, okay. And like from where it will be coming, like from adding new stores or something else also would be there.
Sukumar Srinivas
So I think as we talked about our product mix push and growth in central and western India as well as consolidation and more growth in the southern states as well. With growth coming from other flat products in steel and from non steel.
Unidentified Participant
Okay, thank you sir. Thank you all.
operator
Thank you. The next question is from the line of Love Gupta from Countercyclic Investments. Please go ahead.
Love Gupta
Hi. Thank you for the opportunity. I want to understand what products will be manufacturing in the manufacturing segment and what would be the margin profile for the segment?
Sukumar Srinivas
Currently the manufacturing we do precision tubes, steel tubes which are used largely in automobile and bus building and so on. We also make color coated profiles and we make other steel sections in like Z Perlin, C Perlins etc. So this is broadly what we do in the manufacturing side. We also do a small quantity of cold rolled sheets etc. So this is mostly goes into industry and some amount in infrastructure area. So these are the products that we manufacture.
Love Gupta
And what would be the margin profile for this segment?
Sukumar Srinivas
At an EBITDA level we are really not producing on capacity. We barely use about 50% of our capacity. So currently we are at a very muted ebitda of around 2.5%. So which is something we hope to work on and improve post the merger demerger.
Love Gupta
Okay. And what would be the steel volume growth we can expect for FY26?
Sukumar Srinivas
Sorry, I didn’t get that question.
Love Gupta
What would be the steel volume growth we can expect for FY26?
Sukumar Srinivas
We can expect in the range of around 20% average. We’ve done about 35 in the first quarter. But conservatively we can take it at around 20% for the whole year.
Love Gupta
Thank you.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press Star and one to ask a question. The next question is from the line of Raj Shah, an individual investor. Please go ahead.
Unidentified Participant
Yeah. Congratulations. And we have won the paid level like even more than Q4. So what’s the guidance on the paid level for the coming quarters and for this financial event.
Sukumar Srinivas
That level will be around 500 to 558 crores.
Unidentified Participant
Thank. Can you repeat again like your voice is muffled.
Sukumar Srinivas
No, the question getting repeated again.
Unidentified Participant
Yeah, actually I was asking about the D guidance date level guidance for this financial year and upcoming parts.
Sukumar Srinivas
So debt level will be approximately around 100 crores.
Unidentified Participant
Okay. But we have sworn like 32 crores this quarter. So can you expect around 120 crores or 100 crores here?
Sukumar Srinivas
What I said the debt level is other than that the acceptance are there altogether approximately around 500 crores will be the total debt level.
Unidentified Participant
Okay. Okay.
operator
Thank you. The next question is from the line of Ankur Kumar from Alpha Capital. Please go ahead.
Ankur Kumar
Thank you sir for taking my question. Sir, I wanted to understand. You said we have taken. We have 5 crore of inventory gain in this quarter. But if I look at Indian steel future prices they seem to be coming down in April, May and June. So can you comment what exactly helped us in that?
Sukumar Srinivas
So I think as we said steel prices did have a gain in April. It came down, I think steadied in May and did come down in June. So I think April was I think where we would have a little bit of inventory gain.
Unidentified Speaker
Actually the price drop has not been that significant in the months of May and June. I think July is where there has been a significant drop. So we were able to gain in the last quarter.
Ankur Kumar
And sir, on the volume side what should be the steel volume we can expect in Q2 given this is Monsoon quarter.
Unidentified Speaker
I think if we are able to sustain our last quarter. I mean July is. I mean if we are able to sustain what we have done in quarter one. I think we should be on a very good.
Ankur Kumar
In July. You said steel prices have come down. Can you comment how much percentage roughly.
Unidentified Speaker
It. We know the exact pricing by the end of the month but we know it would be. I mean there is a down in this month because normally the pricing there will be an announcement and then we get to know the exact numbers towards the month.
Ankur Kumar
Sure sir. Thank you.
operator
Thank you. As there are no further questions I would now like to hand the conference over to Mr. Sukumar Srinivas for closing comments.
Sukumar Srinivas
I thank all the participants of this conference for having taken out time on a working morning and listening to us patiently. So thank you very much and we look forward to hearing from you in the next quarter. Thank you so much.
operator
Thank you. On behalf of Shankara Building Products Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.