Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Shilchar Technologies Ltd (NSE: SHILCTECH) Q4 2026 Earnings Call dated May. 05, 2026
Corporate Participants:
Aashay Shah — Director
Analysts:
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to The Silchar Technologies Q4 FY26 earnings call hosted by Evender Spark. 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 presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Stars and zero on a Touchstone phone. I now hand the conference over to Mr. Ale Jaisha, chairman and Managing Director from Silcha Technologies.
Thank you and over to you sir.
Aashay Shah — Director
Good evening everyone and thank you for joining us today. Before we open the floor for questions, I would like to walk you through our performance for Q4 and the full year FY23 and share some update on our operational and financial performance for the full year 26 Shilcha Technologies delivered revenue from operation of rupees 652 crores, reflecting around 5% growth year on year with EBITDA of rupees 190 crores and an EBITDA margin of 29%. Profit after tax for the year stood at rupees one hundred and fifty eight crores, up 8% on year on year basis with an EPF of rupees one hundred and thirty eight.
This number, while healthy in absolute term, could have been notably better as the year closed with a weaker than expected Q4 driven by two distinct and external factor that I will address shortly on a five year basis. HR’s compounding story remains strong with revenue, EBITDA and fat growing at CAGRs of 38%, 77% and 83% respectively. Turning to Q4 specifically, revenue from operation came in at 152 crores with EBITDA margin at 21% and PAT at rupees 28 crores. Two developments weighted on Q4 dispatches.
First, the uncertainty around US tariff policy in the preceding quarter moderated order intake from US customers, specifically in Q3. While order inflows recovered through Q4 dispatches remained slow given the lower order intake in preceding quarter and the interim policy uncertainty at the time. With subsequent US Tariff Policy amendments and a firm demand outlook from US Customers, both order intake and deliveries have picked up notably in Q1 financial year 27. Second, a significant volume of shipments scheduled for delivery to Middle east customers in March 26 could not be dispatched due to the crisis in West Asia and the resulting logistics disruptions.
These shipments have been deferred and not cancelled. Dispatches to the region resumed in April and the situation has improved considerably since then. Both of These factors were temporarily in nature and we expect Shicha to resume its growth trajectory from the coming quarter. This will be supported by the structured demand across power transmission, distribution and renewable energy. On the domestic front, demand has remained firm. India commissioned 55 gigawatts of renewable energy capacity in year 26, a record high and this sustained momentum continues to underpin strong order inflows in our domestic renewable transformer business coming to our balance sheet.
Shilcha remains debt free with cash and cash equivalents of rupees 246 crore at the end of financial year 26, a part of which will be used to financing our ongoing capex. Operating cash flow for the year stood at rupees 192 crores on our capex project. Our Gavasad expansion number three, which will add 6,500 MBA and take our total installed capacity to 14,000 MBA, remains on track for commissioning in April 27. Seagull foundation work for the site is completed, EEB erection and utility infrastructure work is currently in progress and all major production equipment has been ordered.
The capital expenditure of approximately 120 crore is being funded entirely through internal accruals. For financial year 27 we expect to run our existing 7,500 MBA capacity at almost full utilization and the new facility will drive the next leg of growth from financial year 2728 onwards. Our business outlook remains strong with order visibility for financial year 27 of approximately rupees 800 crore supported by robust inquiries from both domestic and export customers, the global transformer demand remains favorable.
Domestically, investments in grid infrastructure, TND capacity and the ongoing bid of renewable provides strong visibility. With this remark I would now like to open the floor for the questions.
Operator
Thank you very much. We will now begin the question answer session. Anyone who wishes to ask a question may press star n1 on your touch on telephone. If you wish to remove yourself from the question queue you may press star N2. Participants are requested to use handset for asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all the participants. Please restrict yourself to two per question. We have first question from the line of Ayushd from Service Capital.
Please go ahead sir. Yeah, hi. Thank you for the opportunity. Just trying to understand on the gross margin compression. Could you just throw some light in terms of which aspect of our RN basket has taken a hit? Because clearly we had gross margin compression and just trying to understand which part of the RM market has taken.
Questions and Answers:
Aashay Shah
Yes, so in Q4 basically our export is Considerably less main reason for that is that we could not ship out the transformers in March due to this, you know, Middle east crisis and that has, you know, reduced our export compared to the domestic and that has changed the ratio of our raw material consumption. And secondly, I mean all the raw material prices have gone up but in month of March specifically we were hit by the increase in oil price. So these are the two main factors which has created problem in I mean which has increased the consumption of raw material.
Operator
Understood sir. And just a follow up sir, given the nature of the inflation in our RM market as well, are we taking any price hikes? And have you had any dialogue with your customers in terms of accepting these price hikes? Just to give us an understanding of what is going on up front.
Aashay Shah
Yes. So we have approached to almost all customers for the price increase revision in price and active, you know, dialogues are going on. I mean some of the customers have already agreed for the price increase and with some customers we are still under discussion. So. And the good thing is that this price increase is known to each and everyone. Even our customer understands the, you know, the increase in raw material cost. So I think slowly, slowly we are able to get the price increase from all our customers.
Operator
And also. So when do you see? Mr. Is sorry for the interruption.
Aashay Shah
So
Operator
Sorry for the interruption. Please rejoin the queue for more for follow up question.
Unidentified Participant
Sure, please
Operator
Rejoin. Okay, we have next question from the line of Silic Mehta from Indo Elves Wealth GM pH. Please go ahead sir.
Unidentified Participant
Am I audible?
Operator
I just wanted to understand a little bit about how the first quarter of the current year will fare. So broadly speaking, we have lost 8090 crores of sales in the quarter four because of this middle Eastern crisis. What proportion of this would be added additionally to the Q1 or Q2 sales expected? Yes,
Aashay Shah
Like I said in my opening remark, the shipping has already resumed and we have already started shipping out transformers which we were not able to ship in month of March. And slowly, slowly that situation is becoming normal and we have a very strong order book as of now we have an order book of almost 452. Yes, we are discussing with all our customers regarding the price revision. So once that is settled, the normal operation will take place and we are feeling quite confident about the Q1.
Operator
So any guidance say for the first half or the second, for the full financial year FY27, are you targeting 800 crore sales or more or less?
Aashay Shah
No. So our target for the entire year is 800 crores and that we are very confident to achieve.
Operator
And any Clues on the first half that will be majority. I wonder
Aashay Shah
I won’t be able to you know give you the exact figure but it will be a normal quarter.
Operator
Okay, thank you.
Aashay Shah
Thank you.
Operator
We have next question from the line of Pankaj from Axis Cap. Sir, please go ahead.
Unidentified Participant
Thank you for giving me this opportunity. A quick question I have is when you explained the Middle
Operator
East price has actually impacted your Q4. So can we get at least some numbers for the actuals for the month of April this year? April 26th. And how did, how do they compare it to April 23rd?
Aashay Shah
So as far as the export is concerned I think we’ll do pretty much same as previous quarter. It will be a normal quarter as far as the export is concerned. The local domestic shipments will also be in, you know, quite a healthy way. Except that you know there might be some time taken for you know discussing about the price revision. But otherwise we don’t, you know anticipate any major issues in quarter one.
Operator
Is it possible for you to give the actual numbers for April, sir?
Aashay Shah
No, unfortunately I won’t be able to give you the number.
Operator
Okay, thank you. Thank you. We have next question from the line of Akash from NV Alpha Fund. Sir, please go ahead. Yeah. Sir, just wanted to understand, I believe in terms of margins both on the gross and Eida margins we have almost taken a 7 to 8% kind of a hit. So. And one of the reasons that you stated is that our exports and March were halted due to the Middle east war to the amount of 70 to 80 crore. But then even if we would have done that, would our margins be similar to what we have, we have achieved in the past like in the last quarter and a year before.
Aashay Shah
So in you know, month of March export as well as you know, for the price increase of you know, all the commodities that has, you know, impacted the EBITDA margin. And yes, if this situation would not have been there we would have done similar margin as what we did in Q1, Q2 and Q3.
Operator
Understood. Just to follow up on that, I mean firstly, what kind of inventory levels do we work on? Secondly, if you could quantify the gap in margins that is the second to 8% delta that we have in this quarter as against the previous quarters. If you can split it and quantify the amount of it due to lack of us being able to export the transformers and the secondary that you mentioned, inflation, commodity prices. If you could just quantify that and these three things. Yeah,
Aashay Shah
Even you want to know the inventory we keep in terms of rupees in value. Yeah,
Operator
Sure. Yeah. Yeah. And in. In terms of months or days also we like both value and month.
Aashay Shah
No, so I mean as of year end March 31st we have in a total inventory of close to 100 crores. And I mean of course the export business has higher margin than the domestic business. And because of the less export in month of March our EBITDA has you know come down
Unidentified Participant
At any point of time. We have only around 10 to 15% of sales of inventory levels.
Operator
Mr. Akash, sorry for interruption. Please rejoin the follow question. We have next question from the line of ethosa from Dal Garoch. Please go ahead. Yeah, thank you for the opportunity. Firstly, what would be the export domestic mix for the quarter? Secondly, your guidance on the EBITDA margin front for FY27 and the quantum of dispatches that were delayed in March. If you could. Yeah, these are my questions.
Aashay Shah
Yeah. So in Q4 our total export was around 52 crores. And the domestic is around 100 crores. And export we could not ship in the tune of almost like 35, 40 crores in month of March.
Operator
Okay, fine. And sir, I mean you’ve already given the top line guidance for FY27. So on in terms of margins, would it be the same 29, 31.
Aashay Shah
Yeah, we’ll do our best to maintain the same margin or even increase the margin.
Operator
Okay, fine. And. And so Middle east exposure in FY25 would be what percentage of your revenue?
Aashay Shah
You mean the coming year?
Operator
No, FY25 and this year.
Aashay Shah
So for the total turnover we did almost 30% sales. I mean 30% revenue came from the export to Middle east in FY 2526.
Operator
Okay. And so previous year would be how much? So sorry for the interruption. Please join. Rejoin you for the follow up question. That was just a part of the question that I asked.
Aashay Shah
I think it was about same. I mean you can check the balance sheet.
Operator
A reminder to all the participants. Please restrict yourself two. Two per question we have next question from the line of Naman Pramar from Nimasia investment. Sir, please go ahead.
Unidentified Participant
Just wanted to know currently what is the percentage cost of the transformer in the overall transformer world?
Aashay Shah
I’m sorry, I didn’t understand your question. Can you repeat it please?
Operator
Yeah. The percentage cost of the transformer oil in the transformer.
Aashay Shah
Transformer oil. I think it depends on transformer because you know it varies from different rating of transformers to different application of transformers. But it is somewhere between 8% to 12%.
Operator
Okay, understood. And secondly on the lead time currently what you are seeing, the lead time specific for the higher KV plus transfer, specific for the power transformer.
Aashay Shah
It’s about so power transfer, whatever we make right now we are able to supply within you know, 12 to 16 weeks.
Operator
Okay, 12 to 16 weeks.
Aashay Shah
Yeah.
Operator
Okay, thank you. We have next question from the line of Mehta from Ingrid equities. Please go ahead.
Aashay Shah
Hello.
Operator
Yeah, hi sir, very good evening. So my first question is do you think we’ll be able to get back to historical ebitda margins of 30% now and will the price revision with the price discussion with the customers lead to similar margins that we used to make on the gross and EBITDA level?
Aashay Shah
Yes, like I said earlier, we will do our best to maintain the same similar margin what we have been doing in past few years.
Operator
And sir, just a little broader picture on how the competitive landscape in the overseas and maybe some light on how are we going to expand beyond the 6,500 MBA capacity that will come next year. So anything that we have planned, let’s say for over a three year view, what is it that you know, Silchar wants to achieve? If you can throw some light on that. Not, not numbers this basic sense on. Yeah,
Aashay Shah
Yeah. So once this you know, expansion takes place and once we start fully utilizing this new facility we can do a turnover of around 1500 crores. And of course we have a plan for further expansion. So we will not wait for this new facility to be utilized 100%. I’m sure that we’ll do some, you know, further expansion. We’ll plan it and we will announce it in future.
Operator
And do you the major driver being USA in this, in the United crore or Middle East?
Aashay Shah
No, it will be combination of everything, domestic and export.
Operator
Okay. And in domestic how is the pricing? Mr. Kunal Mehta please. Sorry for interrupting. Please rejoin the queue for a follow up question. Okay, yeah, thanks. Thank you. We have next question from the line of Nikuj Banushali from Walford ems Please go ahead.
Unidentified Participant
Hi, thank you for the opportunity. Am I audible?
Aashay Shah
Yes, please go ahead.
Operator
Yeah. The first question is what is the current scenario in terms of transformer oil pricing and what how much is the hike in the commodity raw material?
Aashay Shah
So oil prices have become almost double than what we used to buy, you know, in month of February. So February till today it has double, you know, increased to almost 100% and all other commodity has increased in range of you know, 10% to 25%
Operator
And that is still there. I mean none of this has subsided in the current months.
Aashay Shah
No. No. Nothing.
Operator
Okay. Okay. And my second question is with the new facility coming up do we have any plans to move up the higher voltage class? I think up till now we just make transformers till 132kv class. So yeah.
Aashay Shah
The new facility, what we are making will have a capacity to make transformers up to 160 mega 220kV plus.
Operator
Okay. Okay. And do we have any plans to get the PG CIL approval for that?
Aashay Shah
Of course. Yeah. Once the facility is ready we will be going for all the different approvals.
Operator
Okay. Okay. Yeah. That’s it. From the side. Thank you. Thank you. We have next question from the line of CA Garvit Goyal from Enox Capital Venture Private limited. Please go ahead.
Unidentified Participant
Hi, I’m audible.
Aashay Shah
Yes, please go ahead.
Unidentified Participant
Thanks for the opportunity. First question is on the margins front. Considering the capacities in India right now. Do you really think domestic customers will agree to to pass on the price hike? Sir?
Aashay Shah
Yes. Because everybody is demanding price rise. And everybody knows that the prices have gone up drastically. So if they don’t accept, I don’t think anybody will supply them any transform. Because nobody will do business in Lord.
Unidentified Participant
Okay. And so far any domestic has agreed to it.
Aashay Shah
We have already received a couple of price revision. And we have already resumed supply to them.
Unidentified Participant
Understood. And second question is on the guidance. Guidance for ever 27. I remember in last phone call you people were speaking about 850 to 900 cr for ever 27. Right. And now we are speaking about 800. Considering that you. You have mentioned initially like things are getting normalized now and we are having the capacity to do that 850 900cr then why we are not looking for that target.
Aashay Shah
We are looking for that target. I mean it will be 800 to 850cr. Just conservatively I am saying 800. But of course we will try
Unidentified Participant
900 then 850 then. Now we are spinning out 800. So that’s the reason I want to understand, sir.
Aashay Shah
It can reach to 900 also. I mean it’s not that we are not targeting but we have to take a conservative approach. When we, you know say any figures and if you look at our past track record, I mean whatever figure we have said we have always done more. So we will try and do whatever best possible. Whatever maximum is possible.
Unidentified Participant
Got it sir. Thank you, sir. Thank you very much. And all the best for the future.
Operator
Thank. Thank you. Reminder to all the participants. Please exclude yourself to two per question. We have next question from the line of Abjit Singh From Systematic. Please go ahead.
Unidentified Participant
Thank you for the opportunity, sir. Sorry to half of the question again. Just want to
Operator
Understand the gross margin impact for this quarter. There is a severe impact on a Q1, Q&Y and Y basis, sir. And as far as I understand there are a couple of forces acting. And one of them is of course the commodity price. And there’s also, you know, some of the imports that we do and the depreciation in rupees also impacting the increased costs. Since the extent of increase for some of the commodities like oil is double in a month or two months. So what percentage of it is something that we can pass on to the end customer?
Because I am sure there will be a limit to the absorption of the end customer as well. So how does this gross margin look like going forward in Q1 and Q2? Because I believe some of these forces will sustain even in the quarters going ahead. So what is our position within this entire situation? To pass on the increased cost of input and all the other costs.
Aashay Shah
So I mean frankly speaking, whatever orders we have on hand, you know, it will be. I mean we will have to convince our customer to, you know, absorb the price increase and be will be. I mean we’ll have to accommodate our customers request also. But going forward, this is a temporary situation. Going forward, whatever new inquiries we get, of course we’ll be quoting, you know, higher price considering the present raw material cost. So then there will be no impact on the, you know, margin.
Operator
Right. But the existing order book that we have. So as. As long as we execute the existing order book that impact might remain.
Aashay Shah
Not really. Because the customer has placed an order within, you know, delivery in say Q2 or Q3. I mean they will have to give us the price raise.
Operator
Okay. So you can also there’s a possibility to negotiate on the existing contracts.
Aashay Shah
Of course. Yes.
Operator
Right. Sir, thanks a lot for answering. That’s it. For a reminder to all the participants, please restitute. Sir, two. Two per question we have next question from the line of Koshan Sharma from Inox Capital Venture Private Limited. Please go ahead.
Unidentified Participant
Hi sir. Very good evening. And audible.
Operator
Yes, please go ahead.
Unidentified Participant
My question is on your Q4 sales. Like you said
Operator
That our Q4 has been impacted due to export and 30 to 35 crores of revenue. As we stress to the next part. So if we add this 30 to 35 crores in our Q4 numbers that it comes to be around the 192. It is still less than the Q4 25 number 231. So the the big growth in the revenues is you think that there is some over capacity in the transformer or the policy or the competition intensive in this lower chemical increasing. That is the reason of this.
Aashay Shah
I would not look at it that way. I mean you have to look at the, you know, do the comparison on year to year basis. So if we would have added about you know, 35 crores of export in March, then our growth from 623 it would have been to, you know, almost close to 700 crores. So that is higher than the previous year’s turnover.
Operator
Look, it is less than the Q4 25 number, 31 crores of revenue in the last quarter of the previous year.
Aashay Shah
I mean it is, it’s very, you know, difficult to compare from quarter to quarter. I mean it all depends on the, you know, other position. So you know, if you, if you have done in previous quarter, say higher turnover, that does not mean that you end up doing, you know, more turnover in the next quarter. And we are running almost at full capacity. Almost so.
Operator
Much.
Aashay Shah
Sorry, please can you repeat again?
Operator
Quite less and there is no situation of over chemistry as of now.
Aashay Shah
Yeah, demand is very good and the order position is also very good. And we anticipate that new more and more demand is going to come for the market segment what we are catering.
Operator
Thank you very much. Thank you. We
Aashay Shah
Have
Operator
Next question from the line of. Yes, Gupta from Asif Kotecha family office. Please go ahead sir. Good evening sir. Sir, if we take the revenue of 650 crore for FY26 and 75 crores of the revenue that we are not able to book due to supply issue so that add up to 725 and for next year we are targeting 800 crores. Out of that 75 crores will come from this current month revenue. So do you think we are not projecting any growth for FY27?
Aashay Shah
We are projecting growth. Like I said, the growth will not be very substantial and this has been discussed in previous investor meets also because we are running almost at the full capacity and once the new capacity which will be added in year 2728 then we will see a multiple growth.
Operator
Okay, if you look at like from 7,500 to 14,000 MVA we are going to do in next year while our all the major players are also doing adding up the capacity, how confident we are in the industry that demand will be absorbed from the supply.
Aashay Shah
So like I said, it’s not. I mean everybody is expanding right now and but at the same time if you look at the numbers. And if you look at the, you know, demand being generated, I think there is enough, you know, orders in the market, you know, which everybody can, you know, cater to. So I don’t think because there is a strong demand in the market, the expansion will not be, I mean, very difficult for us to get the new orders. We are very confident that we’ll be able to, you know, get the orders and start the production and utilize the capacity to its fullest.
Operator
Okay, sure. Thank you. Thank you. Thank you. We have next question from the line of Kinma Diani from Satwa Ventures. Please go ahead.
Unidentified Participant
Yeah, I wanted to understand what kind of commodity inflation we are facing. So what are the items which are getting expensive and how much it is. And I wanted to link it to suppose if there’s a 10 to 15% kind of increase in the cost of commodities itself then from a 650700 base to 18 to an 800 days with just the pricing increase for almost say 8, 10%. So can you throw some light on the commodity price thing and individual commodities also into this?
Aashay Shah
So I mean I can tell you that right now the commodity prices have gone up by 10 to 25% depending on the, you know, raw material and oil is specifically gone up by 100%. What will happen in coming months? We have no idea. If suppose the situation improves and if there the crisis gets over in Middle east, the prices may come down to the original level. So it’s very difficult to, you know, calculate based on the inflation. I mean nobody can predict that.
Unidentified Participant
Okay, so indirectly do you have any scope for any kind of volume growth in the coming year? Even a 5%
Aashay Shah
In terms of MBA? We will be growing for financial year 26271
Unidentified Participant
Can you give how much have you done for FY26?
Aashay Shah
Sorry?
Unidentified Participant
How much was the FY26 MBA?
Aashay Shah
It is
Operator
Almost 6,000 MBA.
Unidentified Participant
Okay, so out of 7,500 capacity we have done only 6,000
Operator
M. Mr. K. Sorry for the interruption. Please rejoin the queue for the follow up question.
Unidentified Participant
Just a combination of that. If you can reply on the capacity utilization part.
Operator
Hello, we take the next question. Next question from the line of ethics. You are st from. Please go ahead. Hello. Yes sir, My question is on the capacity utilization. Sir, on FY25 our capacity utilization was 77%. In SY26 the capacity utilization was 79%. Now if you’re saying that the demand has been so strong, my first question is why the utilization has gone up by only 2 percentage points.
Aashay Shah
I think I already explained that you know, because of Q4, this crisis of shipping and logistics we were not able to ship out any transformers. And that is why the, you know, the sales have gone down.
Operator
Just one clarification.
Aashay Shah
The capacity utilization that has been given on the presentation is on the basis of dispatches. We have obviously produced more and we are carrying that as closing stock as of 21st March which will be dispatched in the coming year. So the utilization in terms of production is higher. We are not at liberty to share that. But it is higher than 79%. So 79 or almost 6,000 MBA is the dispatches that we have done in 26.
Operator
Okay, got it. Yes. Actually that is very important point to be clarified in presentations. Otherwise it is very confusing. And so thank you, thank you again for the confirmation. Now my second question is that now we are saying in FY27 we are going to increase that 200%. Now first my first question is is it even practically possible? Are there no downtimes, are there no maintenance windows?
Aashay Shah
So I have, I mean we have never said that we will be utilizing 100% but we would be, you know trying our best to reach to our that goal. Like I said, demand is strong and we will, you know do our best to you know, get more and more orders executed.
Operator
Okay. But then if I look at your implied realization, if I do the math, if I look at your implied realization you will actually have to use around 9500% utilization to reach your 800 crore.
Unidentified Participant
Because your
Operator
Implied realization today is around 11 lakh per NBA. And now given you know you, you have to use around 27.00 into 11. That gets you to around 845 crore. Which means that. I understand
Aashay Shah
Your point but that is a you know, hum rule calculation. We are not sure what is going to be the commodity price, what will be the costing for mba, you know going forward. So that figure may change. You know, I mean if suppose that copper aluminum price goes down, the calculation will change. If it goes up beyond today’s level again it the, you know the entire calculation will change.
Operator
Got it, got it. Okay. My second question is on the your 220kV. Now there is I think known thing that in the industry that there is a shortage of bushing, you going to face that. What is your take on that and who are your suppliers for this?
Aashay Shah
So right now our supplier is, you know, yes, high voltage. They are also based in Baroda and we have a good business relation with them and we even plan to import also from China. So.
Operator
Okay, thank You. So you won’t say shortage to make the transfer?
Aashay Shah
Yeah, it is not a shortage. I think the lead time is quite long and if we maintain some inventory then I think we should be okay.
Operator
Okay. Okay. Okay. Thank you.
Aashay Shah
Thank you.
Operator
We
Aashay Shah
Have next question from the lineup. Madhu Agrawal from family office. Please go ahead.
Unidentified Participant
Hi Mr. Shah. So looking forward to the new facility that we’re introducing. Can you give us some indication as to by when we expect it to be fully ramped up on utilization.
Aashay Shah
So the production will start from April 27 onwards. And of course, I mean, you know, the approval for the higher transformer will take some time because once the facility is ready we’ll have to, you know, apply. We’ll have to do registration. Our customer will come and do the, you know, audit of our facility and then the actual production will start. But meanwhile we will not, you know, leave the production facility ideal. We will, you know, start taking more and more orders for the solar and wind project and start manufacturing in that facility.
And once we, you know, we start getting approvals and orders for the power transformer we will reduce the solar and wind transformers in that facility and start making power transformers.
Unidentified Participant
Understood. So in your experience could we then expect to see the full impact of the new facility and say FY29?
Aashay Shah
I would say yeah. FY 2930. Yes, you can say that. FY
Unidentified Participant
2930. Thank you. And then for the 450 crore order book that we have right now, what percentage of that is exports?
Aashay Shah
Almost, I would say around 30%. 30, 32%.
Unidentified Participant
Got it. And just to follow up on that, in the previous calls we talked about how US customers are currently or at least back in Q2 they were willing to absorb the impact of the tariffs. Are we still finding that they are willing to absorb it or is there more pushback on that front?
Aashay Shah
No, sir. Right now there is no tariff Now I mean whatever tariff is there, it is applicable to, you know, each and every country. So we are back in business now. We are competing with our competitors, you know, very easily. And we have already started getting orders from US customers.
Unidentified Participant
So then what would you attribute the lower export mix? Because this is much lower than our order book historically. The export component
Aashay Shah
Because of the Middle east dispatch.
Unidentified Participant
Okay. Just because of dispatch. And that’s affecting the order flow as well. Okay.
Operator
Yeah.
Unidentified Participant
Okay. That’s all for me. Thank you so much.
Operator
Thank you. We have next question from the line of Mr. Sum tr from Peral per Captor Advisors. Please go ahead. Hi.
Unidentified Participant
Thank you for the opportunity. Am I audible
Aashay Shah
Yes, please go ahead.
Operator
I wanted to know your guidance in terms of volumes. So you mentioned we did around 6,000 MB in FY26. What kind of numbers are you targeting for FY27?
Aashay Shah
Around 7,000 MB. Okay,
Operator
And my second question is. So our effective utilization in FY26 was 79%. So what is the optimum number that we can go up to? I mean that 100% won’t be practically possible but at what level we can catch it up to.
Aashay Shah
So you know if like I said earlier, if we would have been able to ship out the transformers to Middle east in month of March, that utilization would have gone up, you know, to maybe 80 to 83%. And ideally, you know, in any facility up to 90, 95%. They are considered to be a good utilization and we plan to do that for this coming year.
Operator
Okay. Okay, that’s it. Thank you so much.
Aashay Shah
Thank you. We have next question from the line of Reshma Jain from VVD Asset Manager. Please go ahead.
Operator
Yeah, hi Reshaen here. So I have two questions. First is with respect to inventory we mentioned that you couldn’t do dispatches. But when I look at inventory of FY26 and versus FY25 it is almost similar, 92 odd crores. So if the dispatches might not have happened. So I was just wondering how should one look at it.
Aashay Shah
So I mean you need to consider even the work in progress inventory and which is also there. And of course you know when the in the beginning of shipping issue took place we had to stop the production. I mean we did not convert it into the finished goods because then storage and everything would be a problem. And once the situation became normal we already started dispatching in month of April.
Operator
Understood, Understood. Yeah. So the second question is with respect to your order book of 452 crore. So one is that I could see in the industry a lot of companies have a back to back kind of raw material hedging policy. So just wanted to understand your approach here. One is that you could ask customer to take as you mentioned in your comments. But the second is the contract itself which if the contract has price escalation kind of terms into it. And what is our heading policy.
Aashay Shah
So you know in the previous meet also we have said this that whenever we get an order we immediately book, you know either copper or aluminum and we don’t take any risk on that. But in this specific situation the prices have gone up suddenly and very drastically where all our suppliers are. Whatever orders we had placed, they are Also not able to get the raw material at lower price. And then they were demanding or they are demanding, you know, price rise. So this is a very, you know, unique situation.
It’s in a, you know, fourth major condition where everybody is demanding price rise even though, you know, the material is booked or the order is booked placed. And similar way, you know, we are approaching to our customer with same post major condition and asking for the price rise. We do have some orders right now which are based on the PV clause where we are not worried about anything because whatever the EMA PV says at the time of dispatch, we will, you know, charge accordingly to the customer.
But whatever orders are there at the fixed point, we are demanding price range.
Operator
Understood? So clear. Thank you so much and all the best. Thank you. We have next question from the lineup from MB Investment. Please go ahead. Hello. Hello. Hello. Yeah, my question is what percentage of cost is oil of the total cost? And just another clarification, once the war resumes in Hormuz or like the shipping situation gets better. So we already have the shipping, the goods that are to be shipped to them ready. Right. So that revenue can be realized soon thereafter. Right.
Aashay Shah
I think I already replied. Oil is depending on the transformer, but it is anywhere between 8% to 12% of the total transformer cost. And of course, you know, customers still want transformer very badly. It is only because of the shipping we are not able to dispatch. And the shipping has already, you know, somewhat become normal. So we have started dispatching customers in month of April.
Operator
Okay.
Aashay Shah
And pretty soon I think situation will become normal.
Operator
All right, thank you so much.
Aashay Shah
We have next question from the line of peace. Please go ahead.
Operator
My first question was that I wanted to know how much in this year have been done sale to us and how do you see the US transformer opportunity evolving over the next two to three years?
Aashay Shah
So we have done around 18, 19%. I mean 18, 19% of our revenue has come from the US export. And this year us was like up and down because you know, in August one year, US announced a tariff of 50% on Indian good, where we lost some orders. Now it has come down to, you know, 10%. So now we are able to compete and we have started getting orders from all our US customers. And the opportunities in next three more years is going to be great. And we are expecting, you know, quite a good growth in the US export.
Operator
And my second question is, sir, what would be the tam of inverted duty transformers in US as well as in India? Sorry, can you repeat that please? What would be the time of inverted duty transformers in US as well as in India.
Aashay Shah
I think is only in India and some of the Middle east countries and India you already have like government data where government is targeting almost 50 to 55 gigawatts of renewable energy so that is the market which India has. Okay thank you sir
Operator
Ladies and gentlemen due to shortage of time that was the last question I now hand the conference over to Mr. Al Ja chairman managing director from Switzer Technologies for closing comments.
Aashay Shah
So I thank you everybody to participate in this investor week and we are very confident for this coming year for the growth and profitability. Last year was in a turbulent year in terms of the US tariff and this Middle east crisis but we are hopeful that the situation will become normal in Middle east and things will become normal very thank you once again for the participation
Operator
Ladies and gentlemen on behalf of that conclude this conference thank you for joining us and you may not disting the line thank you.