Skipper Ltd (India) (NSE: SKIPPER) Q1 2026 Earnings Call dated Jul. 31, 2025
Corporate Participants:
Unidentified Speaker
Sharan Bansal — Executive Director
Shiv Shankar Gupta — Chief Financial Officer
Analysts:
Unidentified Participant
Naveen Sahadev — Analyst
Balasubramanian A — Analyst
Sheetal Sharma — Analyst
Hardik Dara — Analyst
Mehul Panjwani — Analyst
Abhijit Singh — Analyst
Manish Ostwal — Analyst
Ishan Verma — Analyst
Darsh Solanki — Analyst
Darshil Pandya — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the QN FY26 Earnings Conference Call of Scaper Limited organized by ICICI Securities Limited. 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 touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Naveen Sahadev from ICICI Securities. Thank you. And over to you, sir.
Naveen Sahadev — Analyst
Thank you. Thank you. Good evening everyone. On behalf of ICICI Securities, I welcome you all to the Q1FY26 earnings call of SCPR Limited. Today we have with us Mr. Sharan Bansal, Director Skipper and also the CFO Mr. Shiv Gupta. So without any further ado, hand over the call to the management for opening comments. Over to you, sir.
Shiv Shankar Gupta — Chief Financial Officer
Good evening everybody. This is Gupta, cfo. Yeah. Thank you, Naveen. Good afternoon everyone and welcome to Skipper Limited’s Quarter 1 FY26 earnings conference call. I would like to extend my gratitude to all our investors, analysts and stakeholders for your continued interest and support. Before we proceed, I would like to remind you that certain statements made during this call may be forward looking in nature and should be reviewed in conjunction with the risk and uncertainties associated with our industry and business. Some of the key operational and financial highlights in comparison to previous year quarter as follow.
I am pleased to inform you that we have delivered yet another good quarter and registered our best first quarter revenue. On back of strong execution in engineering and polymer segment. The net revenue for the quarter stood at 12539 million against 10917 million up by 15%. The segmental revenue breakup were as follows. Engineering 10248 million up by 24% over previous year quarter. Polymer 1272 million up by 34%. Infra segment 1019 million down by 39%. The company engineering export revenue grew 30% year on year to Rupees 3254 million in quarter one compared to 2508 million in the previous year.
Reflecting strong international demand momentum. Export share in overall engineering revenue stood at 32% in this quarter. Now moving on to our quarterly financial performance. Our reported EBITDA of Rupees 1 to 72 million was the highest ever for any quarter. Rose 22% in comparison to Rupees 1,047 million in previous year period. Consolidated EBITDA margins improved to 10.1% visa based 9.6% year on year driven by operating leverage and execution of higher quality TND contracts. The engineering segment EBITDA margins for the quarter stood at 11.3%. We have clocked the desired margin range of 11 to 12% now for past many quarters going forth also we will see a consistent margin performance from this business on back of better quality contracts, execution and benefits of operating leverage.
The management focus continues towards bottom line improvement. The standalone PVT increased by 41% to rupees 598 million and PVT margin improved to 4.8% of sales for the current year current quarter period against 4. 23 million and margins 3.9% of sales in previous year quarter. The standalone PAT also increased by 41% to rupees 447 million and PAT margin improved to 3.6% of sales for the current quarter period against 3,1,6 million and margin of 2.9% in previous year quarter. On the order front I am happy to inform you yet another good quarter for us. During the quarter company secured significant size domestic contracts from Power Grid Corporation of India limited and export markets in Middle east contributing to an in total inflow of over 19774.
The current quarter order inflow was up by 158% compared to the previous year quarter period. During the quarter we secured three prestigious 765kV transmission line projects from power grid in the states of Rajasthan and Andhra Pradesh strengthening our position in the high voltage segment and also secured a major tower testing and design order approval from the Middle east largest utility reflecting the growing acceptance of our in house design capabilities among global utilities. This has propelled our order book to an all time high level of 85,205 million-plus reinforcing strong education visibility. The tender pipeline remains deep with the current bidding pipeline at all time high of approximately 300,000 million reflecting strong opportunities in both domestic and international markets.
We are participating in a wide range of high value tenders across domestic Middle East, Latam, Asia Pacific, North America and African markets, many of which are significantly larger in size. The vibrant domestic TND environment aligns with its keepers commitment to leverage India’s transmission sector growth with the government’s focus on scaling renewable grid infrastructure and improving electrification. Kipper is poised to support this growth. Our qualification to undertake EPC projects at the highest voltage level of 765kV and 800kV gives us a strong advantage. We are among the very few companies in the country with the capabilities to execute these high voltage projects Backed by years of expertise and experience.
Strategic highlights we also made meaningful progress on several strategic front. Few of the updates are as follows. Our 75,000 million tonnes per annum new capacity is now fully installed and commercially operational. This is a strategic enabler that now allows us to target fast track export orders and short cycle demand segments where we faced constraints last year. In addition, we have embarked on another 75,000 million tonnes per annum capacity expansion with a bold vision to become the world’s largest transmission tower manufacturer with 6 lakhs million tonnes capacity by FY28 end in the polymer business achieved 40% year on year growth in volume terms.
We have increased focus on plumbing segment to improve profitability and enhancing our retail distribution network and are gaining momentum with product diversification. Number of distributors billed and increased by 39% year on year monthly build retail outlets grew by 23% strengthening last mile reach. Further, Company board has approved formation of subsidiaries in three key international regions to accelerate export growth and deepen global market penetration. In conclusion, Skipper limited continues to deliver strong operational and financial performance driven by our focus on execution, excellent strategic initiatives and prudent financial management. We remain optimistic about the future and are confident in our ability to create long term value for our stakeholders.
Thank you and I’m happy to take questions now. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question by Press Star and one on the Touchton telephone. If you wish to remove yourself from the question queue you may Press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from the line of Bala Subramaniam from Ariant Capital. Please go ahead.
Balasubramanian A
Good evening sir. Exports have witnessed around 30% growth in this quarter. I think our major focus in North America and Middle east and we are also getting a lot of orders from there. But it seems that approval approvals are slow. So what is the realistic timeline for scaling to or like especially and to 10% of exports. And I just want to understand the cost structure between US and Chinese competitors in bids for markets like Africa and Latin America side.
Sharan Bansal
Yes, you are right that exports has seen a significant growth this quarter in terms of revenue execution this year. Overall we have a target to double our export order inflow from previous year approximately 7 to 800 crores. We feel that we can take a target to double it to about 1500-1600 crores of new order inflows which should Definitely have a positive effect on execution. And as mentioned by Shivji in the opening remarks, because till last year we were facing a capacity constraint. Now we don’t have a capacity constraint with a new capacity coming online and further new capacity getting added.
So we will be able to pick up short term orders in the export market as well. With regard to the approval process, Approval process is going in a steady manner. We have been obtaining new approvals in various utilities at a good pace. And recently we also secured a strong engineering order from Middle east largest utility. So I would say that overall export, we are happy with the export progress. However, regarding to our competitiveness again, of course the Chinese threat always remains and Chinese players from time to time are very aggressive in the market. But with the strength of our engineering and with the strength of our backboard integration, we are able to match, we are able to compete with the Chinese players also quite well.
Balasubramanian A
Okay sir, with polymer segment side we have seen a lot of order declines in SELJIV and missense whether this retail and distribution growth can completely offset this order declining side. And we are just shifting to from being said around 50% kind of mix which is higher margins. Just want to understand what’s the long term target for non government revenue share.
Sharan Bansal
Yes, absolutely. So you see despite the Jaljeepan projects not being there so much, we have reported a significant improvement in polymer revenue. The polymer revenue has grown by 34%. Feel that a similar trend will be seen in the remaining quarters also where we will see greater business coming from upcoming segment which will be better margin for the company also. So I think polymer segment is also in the right direction.
Balasubramanian A
So my last question, around 75,000 like metric tons capacities right now operational. What is the utilization level right now? And we also planned additional 75,000 and tense probably next few years. And how this CapEx, whatever timeline we are going to execute on this.
Sharan Bansal
Yeah. So the recent 75,000 which we have commissioned in quarter one right now, you know we are, we are, you know we are developing and we are, we are getting the output of that. I think we should be able to get full output from that very soon within quarter two and quarter three itself. And further capacity expansion plan is taken on for another 75,000 which we hope to commission by end of this financial year.
Balasubramanian A
Got it sir.
operator
Thank you. Thank you. The next question is from the line of Sheetal Sharma, an individual investor. Please go ahead. Sheetal ma’. Am. Please go ahead. As Sheetal ma’ am has left the queue, we will take the next question the next question is from the line of Hardik Dara from sp. Dara, please go ahead.
Hardik Dara
Hi sir. I just wanted to understand what is the macro outlook of the sector going ahead for the next four, five years? I mean is there a long term tailwind that we are expecting?
Sharan Bansal
Yes, the macro position looks extremely good. There is a strong pipeline, you know and strong tailwinds in our sector. With government investment of total 9 lakh crores in the power transmission sector up till 2032. And some reports I have read recently where the investment might be higher than 15 lakh crores or so after 2035. So I think we are looking at a long growth period for the power transmission business in India. And even in global markets we are seeing good amount of demand in a number of markets. So I think as more and more countries are transitioning towards renewable power grid investments are definitely we are seeing more and more of that.
So I would say macro. Certainly there are strong tailwinds in our sector.
Hardik Dara
Thank you.
operator
Thank you. The next question is from the line of mihul panjuan from 40 cents. Please go ahead.
Mehul Panjwani
Hello sir. Thank you so much for the opportunity. Sir, I would like to know what is the revenue breakup between engineering, infrastructure and polymer segments?
Sharan Bansal
If you’re asking about quarter one, in quarter one it is 82% is coming from engineering segment and about 10% is coming from polymer segment and 8% is coming from infrastructure. Right, sir.
Mehul Panjwani
So sir, what has led to a. Little bit of subdued quarter compared to quarter four? Which segment has.
Sharan Bansal
No. In general. In general we have always maintained that our H1 revenue is 40% of the year and H2 revenue is always 60% of the year. Okay. As it is a. It is the normal trend which we have seen over last several years. You may compare the previous numbers also. If you compare our this year’s quarter one performance to last year’s quarter one, which is the correct comparison, you will find close to about 24% growth. Sorry 15% growth over last year’s quarter one. So I think certainly you know, overall we are quite confident and we have given a guidance also that the company is on Track to deliver 25% overall revenue growth in this full financial year over last financial year.
Mehul Panjwani
Right. Sir, my second question is regarding the Middle east order. So is it a first of kind order for us from the Middle east or. We have been doing work in Middle east before as well.
Sharan Bansal
We have been doing work in Middle East. However, this is Middle east largest utility, Saudi Electric company. They have recently given us an engineering order. So that is the first from us because they are the most significant utility in Middle East. So that is. That is why we have reported it separately. Otherwise we have been working in various other utilities in the Middle east for last several years.
Mehul Panjwani
So can you please briefly summarize what is the design about for this company? What we are designing.
Sharan Bansal
We are designing and testing transmission towers for them.
Mehul Panjwani
Okay. Okay. And how be how large is. If you can share, it’s about 25 crores. 25. What is the timeline for completion?
Sharan Bansal
About 8 months. 8 months to 10 months.
Mehul Panjwani
Okay sir, thank you so much and wish you very best for the time continuous.
operator
Thank you. The next question is from the line of Abhijit Singh from Systematics. Please go ahead.
Abhijit Singh
Yeah. Am I audible?
operator
Yes, please go ahead.
Abhijit Singh
Yes sir. Thank you for the opportunity and good to see a very strong set of results both operationally and the work that you have done. On interest cost front, that is really hard to see. And the first question is on the domestic TND business.
Sharan Bansal
Mr. Abhijit, you’re not audible. Can you please repeat your question?
Abhijit Singh
Is it better now? Yeah, I can just repeat the question. Yeah, yeah. The first question on the domestic DND business, I mean we all have talked about a very strong long term outlook on the macro front which is also talked about in the nep. But in terms of the last three, four months, what has been the momentum in terms of the tendering from our end customers like pgcil, other players. So have we seen some change in the momentum of tendering from these players? That’s the first question.
Sharan Bansal
No, the tendering is quite consistent and tenders are coming out at a good pace. And we are also participating in our order bid. Pipeline has also been growing. So as this quarter itself we have secured about 1900 crores of orders which is quite significant, you know. And so I would say that both the bidding pipeline, new tenders, etc. Are coming out in a very consistent manner.
Abhijit Singh
Right. So I mean given the momentum and expectation for the rest of nine months of this fiscal, we can expect a. Double digit kind of growth in order inflows. That is what it looks like right now.
Sharan Bansal
Yes, absolutely. We expect that our total order inflow for this year should be in the range of 6,500 to 7,000 crores.
Abhijit Singh
All right, sir, and you mentioned in the press release across three geographies. Could you. What is the objective here? Are we planning to set up manufacturing also abroad or how will this work? You can elaborate a little bit on this.
Sharan Bansal
See, currently we have only obtained board approval for setting up of these subsidiaries. And now the management shall evaluate the feasibility of setting up the subsidiaries and eventually if manufacturing facilities, if possible, I would say that manufacturing facilities probably there are no plans in the short to medium term. Long term there may be such plans, but however, our objective right now is just to be closer to the market and to be able to service our customers better as because we are looking at good growth in the international order inflows in the years to come and the opportunity is also quite strong.
Abhijit Singh
Right. So no substantial investment in the needed firm in these geographies.
Sharan Bansal
No immediate plans. Right now. Right now the objective is just to be closer to the customer and to be able to service the customer better.
Abhijit Singh
Got it. And we can also talk about the impact of tariffs. They are held at the current level of 25% penalty. So I mean versus last quarter, how has the outlook changed for exports to us?
Sharan Bansal
Sure. So the. I would say that the US market makes up less than 1% of our order book. So it’s not very significant for us. The impact of tariffs has to be seen, you know, because the situation is I would believe quite dynamic, you know, where the tariff numbers keep changing very fast. Sometimes it’s 10%, sometimes it’s 25%, sometimes it’s 50%. So honestly we will have to wait for some clarity to emerge from this. However, net net, you know, the company Germany has opportunities in several other markets apart from the US also. So I would say that we would adopt a wait and watch policy to see how the situation finally emerges in the U.S.
Abhijit Singh
Right. So sir, I mean currently I think if I’m not wrong, export contribution revenue is about 20% or in that range. So what is the major geography in Europe that is already that we are doing business in?
Sharan Bansal
Yeah, so the export revenue in this quarter was about 30% of engineering or 30% of engineering products. And I think overall it was about I think 20, 25%, maybe 20% on an overall basis. So the majority, the major geographies where currently we are executing projects are Middle east and a little bit in the Africa and Latam region. That’s, that’s where the major orders are going right now.
Abhijit Singh
Right, right. So I mean I think 30 crore on revenue we have booked in exports in Q1. And so let’s say, I mean even. If you do about 2000 crore or. 1500 crores of order inflow, still there’s lot of scope to stand only in Middle east because Middle east itself supposedly is a big market.
Sharan Bansal
Of course, look, we are present in more than 70 countries worldwide. So of course Middle east is a very promising market. But we are seeing good opportunities in other markets also.
Abhijit Singh
Right. And then lastly any guidance for FY26 in terms of revenue and profit growth?
Sharan Bansal
Yes, I think in terms of revenue we are quite confident that looking at our order book strength we are confident of delivering our 25% plus revenue growth for FY26. And in terms of margins we have seen some margin improvement in this quarter also as because now in the execution it is more TND contracts compared to non TND and better quality contracts are also coming. So we are quite confident that we should be able to deliver at least a 50 basis point improvement in EBITDA margins over last year.
Abhijit Singh
Got it sir. Thanks a lot for answering the questions.
Sharan Bansal
Thank you.
operator
Thank you. The next question is from the line of Manish Ostwar from Nirmal Bank. Please go ahead. Yes sir.
Manish Ostwal
Thank you for the opportunity. In terms of the current non TND business. So what kind of operating margin we are generating? Non DND is about roughly 14% of our order book right now. I would not be able to pinpoint an exact margin but typically historically non TND has been about 2% lower margin compared to to TND business. Okay. The second thing sir, we have seen good improvement in our interest. Expense is a percentage of revenue reduction in this quarter. And you commented in the presentation it will further reduce. So any indicative number we can hit by exit of F26. Yes, I think our target is that we should be close to 4%. That is what our we think it’s we can reasonably achieve by the end of FY20. And lastly sir, in terms of domestic market whatever orders we have got during this quarter against the bid. So what is the bid percentage we are having and or whether we have increased some markets here also? Can you talk about that thing?
Sharan Bansal
We have been maintaining about 20 to 25% hit rate from our order book.
So you know if I look at our bidding pipeline right now is about 30,000 crores. Which is why we are quite confident that 6,500 to 7,000 crores should be quite possible for us to get as an order inflow against this bidding pipeline. And sir, your comment of 25% growth for the full year. So in terms of domestic business versus export business the trajectory will be very similar or export will have much larger share in coming quarters and years. See exports in terms of order book is only 10% for us right now. Because as. Because last year we did not really have capacity spare capacity available.
So we Were conservative in picking up the export orders. However, now I would say that now we have sufficient amount of capacity available and we’re going for a new capacity expansion also. So I think we will have the greater ability to pick up short term export orders also. So we will have to see what the final export execution revenue will be. But I am quite confident that in terms of order inflow of export we will definitely see a significant improvement. You know, we have been on an average taking 700 to 800 crores of export orders every year.
That we should double to 1500 crores this year for sure. And margin profile in export order versus domestic business, what is the difference? Exports typically come with about 2% 1 to 2% better margins across geographies.
Manish Ostwal
Okay sir, thank you very much for answering my question. All the best. Thank you.
operator
Thank you. The next question is from the line of Ishan Verma from incurred equities. Please go ahead.
Ishan Verma
Good afternoon. I wanted to understand like what is our view on the infra product segment wherein we see that for past, like 3/4 we are seeing a deep growth in that segment. So how are we focusing on what are. What would be the guidance for this full year on that segment and is it the case that it is lower market margin that is why we are not focusing on that?
Sharan Bansal
Yeah, it’s actually it depends on contract execution. So see certain infra is completely dependent on the contracts that are due to be executed and there may be variances across quarters. However, despite that we are confident that even an infra segment over the full year basis we will be able to deliver 20 to 25% growth in the infra segment. Also in line with our company’s revenue growth aspiration.
Ishan Verma
Okay, so and we won a subscription EPC order in last quarter. So is there any other order that we are bidding for? Like.
Sharan Bansal
I’m not able to hear you very clearly. Could you just repeat?
Ishan Verma
Yeah. So we won a substation EPC order in last quarter when we entered substation segment. So what kind of opportunity we see going forward in this segment because this is a better margin for those type.
Sharan Bansal
Substation is obviously a very significant opportunity. We out of the total 9 lakh crores that is to be invested in transmission sector, we expect that the split will be 50. 50. 50% in transmission lines which is our traditional addressable segment and 50% in subscription which is a new segment for us. So I would say yes, there are very significant opportunities. However, we are a new player in the segment. So it will take time for us to ramp up our Order inflow and revenue in this segment. But I would say that we have started in a positive note and we have secured good contract.
And yes, we are expecting more contracts to come in that segment in this year also.
Ishan Verma
One more thing. So in the engineering products usually when orders from PGCL are going forward, other players is concerned that in the market wherein ordering is happening, rendering is happening on TGCB base. So PGCL is orders is being reduced to 50% and 50% tenders are being run by private places. Is there any impact on our business due to lower ordering or order billing for some pgcl?
Sharan Bansal
No, not at all. I would say that you know pgcil, it’s not that we are only getting orders from pgcis. We have been working actively with the private developers also and number of private developers, Xrlite, Adani, the new developers like gr, Infra, dra, ipl. We are working with pretty much all players across the segment. Of course our major business comes from PGCIL and PGCIL has the largest market share in the transmission segment compared to all the private players also. So I would say that really we are agnostic between which developer gets the business. We will be actively supporting all the developers as EPC and manufacturers.
Ishan Verma
One last question. What were our volumes for the polymer segment?
Sharan Bansal
What are. Sorry once again
Ishan Verma
volumes for polymer segment in this quarter.
Sharan Bansal
In terms of volume. So we have achieved about 10,600 metric tons in this quarter. 1. Yes.
Ishan Verma
10,600. And so due to higher realization of higher mix of sales in that do you see any head on realization in this segment? And like is there a scope of margin improvement? Because this is not industries higher margins compared to us. Right?
Sharan Bansal
Yes. I think as we have maintained earlier also that see we as our revenue grows and as our contribution of plumbing segment grows in this business, we certainly intend to target double digit margins. Right now we are at a low single digit margin in this business and we expect that. Okay. Now we have started the journey with good revenue growth and I think certainly the target will be aspiration will be to get to double digit margin soon.
Ishan Verma
So when can we expect that to be happening? This year? Next year?
Sharan Bansal
Probably not this year, but yes, next year would be a reasonable expectation.
Ishan Verma
Okay, thank you. Those are my questions.
operator
Thank you. The next question is from the line of Darshan from Access securities. Please go ahead.
Darsh Solanki
Yeah, thank you sir for the opportunity. My first question is. So in our previous conference world our guidance was that we are targeting a 20 to 25% revenue growth for the next two to three years. So in FY26 also we have guided for 25% growth. I just wanted to understand with our capacity expansion and target increase as well are we sticking to the 25% for FY27 as well or will there be an upside to that?
Sharan Bansal
Yeah, we are sticking to the 25 revenue guidance because as. Because now last year in FY25 we have more or less achieved full capacity utilization. So till FY25 we were not at full capacity utilization and now we have achieved more or less full capacity utilization. So I believe that now from here on largely the revenue growth will be driven by our capacity expansion. So which is why 25% is what the reasonable you can expect from the company over the next two to three years.
Darsh Solanki
And so in regard to the capacity, so like you had guided that capex amount over the span of next four years would be close to 800. And the presentation says that the capacity expansion capex would be 250. So I just wanted to understand is that 250 crore included in that guidance or is it over and above the.
Sharan Bansal
Previous it’s included in that guidance? Actually the 250 crores include our regular maintenance capex of 40 to 50 crores also.
Darsh Solanki
Thank you sir. That’s it. So much. Thank you.
operator
Thank you. The next question is from the line of Chira Kala from New Asset Management. Please go ahead.
Unidentified Participant
Yeah. Hi. So looking at your order pipeline, so what has been your hit ratio historically and do you expect it to remain in the same range or could it increase?
Sharan Bansal
As I was answering earlier that historically our ratio has been in the range of 20 to 25%. We hope to maintain that ratio going forward also. However, we are entering a lot of new geographies and a lot of new markets. So maybe our hit ratio might be lower but which is okay. As long as our order inflows are growing in line with our capacity expansion and our revenue growth targets, we are happy. So you know like I mentioned that even for our order inflow we are targeting a 25% plus order inflow this year in the range of 6,500 to 7,000 compared to last year.
Unidentified Participant
So if you look at your order target of 6500 crores also. So in the first quarter there was around 2000 crores of per order inflow which leaves you around 4500 crores for next nine months. How does that compare with the nine month of last year?
Sharan Bansal
See last year. See actually order inflow is not consistent across quarters. So if you look at last year quarter one was very weak it was only around 765 crores. Whereas this year quarter one is 1900 crores. So you know it is difficult to put up quarter wise target for order inflow because that can be. It’s a function of when the project gets finalized. And you know several projects have a long gestation time before from RFQ to finalization stage. So I would say I would prefer to look at order inflow targets on an annual basis. It is much better to look at it from that lens.
Unidentified Participant
In terms of backward integration. How. How much is. In terms of overall, how much are you in a backward integration?
Sharan Bansal
We are completely backward integrated. So our products we are. We have almost 90% of our raw materials are sourced internally. So we have quite a strong backward integration.
Shiv Shankar Gupta
We have all towers, conductors, port, everything. All our manufacturers is in house.
Sharan Bansal
No, we are talking about the main products which is towers and parcels. So that is something which we produce in house.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question is from the line of Naveen Sarde from ICICI Securities Ltd. Please go ahead.
Naveen Sahadev
Yeah. Good evening sir and thank you for the opportunity. Sir, I think this is the first time in the quarter that we have mentioned our CAPEX plan in the sense now that we want to increase the capacity further to 6 lakhs NTPA by FY28. Of course you also mentioned 75. NTPA is already commissioned and balance 75 will come up by end of this year. So I just wanted to understand what is the CAPEX that one can attribute from a CAPEX cash output perspective for FY26, 27 and 28 towards this expansion.
Sharan Bansal
Sir, anything between 200 to 250 would. Be reasonable for each block of 75,000. So as we mentioned before, 800 crores is what we expect to invest over four years. Out of which the first leg last year has already taken place. And now over the next three years we expect to invest another 600 crores. This is apart from the routine maintenance capex.
Naveen Sahadev
So thank you. And will it be at the existing location or are we looking at it at any other location? Is it a brownfield expansion?
Sharan Bansal
We are exploring other greenfield locations as well. So far the expansion has been done in existing locations but we are exploring greenfield locations now.
Naveen Sahadev
Understood? Understood. So this 6 lakhs of capacity that existing location or does it also include a potential new site is what I’m ask.
Sharan Bansal
Yeah. This lack include potential news, right? Not all of it will come in the existing site.
Naveen Sahadev
Understood? Understood. Thank you. And my second question sir was on the order inflow. So of course you have surprised I would say on maintaining such a healthy order inflow trend that to quarter on quarter. But just a couple of days back one of the very large peers did mention on the earnings call of a reduction in the project awards or like, you know, sluggish like of project award as a reason of which their TND order book had seen a slowdown and in an earnings call they acknowledged the fact. So my question to you is, are we seeing any kind of slowdown trend towards project award at a macro level or that could be more very company specific.
We are just going. Great conversation.
Sharan Bansal
I would say that no in terms. Of order inflows, etc. Because we are present in a lot of global markets also. So again for us when we look at our bidding pipeline, we look at all across the world and like I mentioned, out of our total order inflow a significant amount of that is targeted to come from export markets also. And if at all we see any slowdown. So far we have not witnessed a slowdown in any domestic ordering. But if at all we see that then we do have the ability to get more orders from the international markets to compensate for the domestic sluggishness.
So I would say that with the diversified bidding pipeline that we have, we are at no risk of missing our order inflow target.
Naveen Sahadev
Is it possible to break up the order inflow trend? Of course we have given the breakup for the overall order book. But I’m saying from an order inflow trend, is it possible to break up how much is domestic TND out of IT and total TND, non TND in terms of inflow.
Sharan Bansal
See, we are targeting only TND and non TND will be less than 5% of the overall inflow. Sorry. What?
Naveen Sahadev
Sorry sir, I was sorry to cut you. I was only saying between domestic TND and exports ordering flow, I expect exports.
Sharan Bansal
To be close to about 25%. About 1500 to 1600 crores. And the balance 75% to come from domestic. That’s the expectation. But of course look, this could change. Change, you know, based on which orders get finalized first.
Naveen Sahadev
Sure. I was asking more specific to Q1. This 1977 crore of order inflows already booked and received in that domestic PND will be. How much is it still? 70, 75.
Sharan Bansal
I believe it’s a similar number. But I don’t see a breakup. But it. I believe it would be a similar.
Naveen Sahadev
Yes, that’s. That’s helpful. Thank you sir.
operator
Thank you. The next question is from the line of Darishripanya from Fin interest capital. Please go ahead.
Darshil Pandya
Hi sir, good evening. Am I audible? Yes, yes. My question is around the capacity that we added. So have we for the 75,000 tons of capacity how much have we invested? Was it 200 crores?
Sharan Bansal
Correct. Correct.
Darshil Pandya
And with this new capacity am I if I’m understanding it right we will be able to you know get additional thousand or crores of revenue. Is this understanding right?
Sharan Bansal
Yes, approximately correct.
Darshil Pandya
Got it. And with regards to this, the additional 75,000 tons how are we going to you know fund this and you know how, what, what will be the structure for this?
Sharan Bansal
It will be a mix of internal accruals and term loans. So company has again ld cash flows and we don’t have a lot of long term debt. So I would say that it will be lasting year also. The capex that was done was through a mix of both internal approvals and long term loans. But still it’s any ballpark number.
Darshil Pandya
What, what, what are we targeting internally? A ballpark number of investment or debt. Or debt and you know internal approvals. Maybe 50, 50 or 40, 60.
Sharan Bansal
I would say it would probably be. Close to about maybe because last year was we didn’t take, we only took a debt of about 75 crores. So maybe this year could be maybe 60% debt and 40% internal accrual.
Darshil Pandya
All right, thank you so much. These are my questions. All the best.
operator
Thank you. The next question is from the line of Arjuna, Karma and individual investor. Please go ahead.
Unidentified Participant
Hello. Congratulations on the decent of numbers and thanks for this opportunity. I just want to know regarding the this NEP plan and it will been projected till 2030. So I just want to know your view that till when can we expect this growth in the transmission sector for means for another two, three years or four, five years. So I just want to know your view on this.
Sharan Bansal
In our view the NEP plan predicts a 9 lakh crore investment till 2032. So I would say the growth momentum should continue till another seven years at least. And even beyond that we are more certain that more and more renewable capacity will have to be integrated. Just to put it in context, currently this 9 lakh crore is only expected to integrate about 500 gigawatts of renewable energy into the grid. However if you look at China, China has added nearly about 500 gigawatt just last one year its itself of renewable capacity. So you know if as and when India continues in its growth journey we also expect that the amount of renewable capacity coming onto the grid will increase rapidly.
So you know as that happens, I would say there would be more and more demand being generated for grid investment. So again, it’s hard to say that okay, how long it will continue, but for the next six, seven years we definitely don’t see any slowdown and our expectation it should continue much beyond that Also.
Unidentified Participant
Thank you for the detailed answer and just a follow up in this. So what are the challenges? Are there any challenges that we are facing that we are facing in the domestic transmission sector like ROW challenges or weather conditions means? I just want to know that are there any challenges you are facing in domestic T and D sector?
Sharan Bansal
Yeah, the prime challenges I would say. Of course ROW is always a challenge. ROW is generally in the scope of the developer which is our customer. But yes, ROW does have the potential to delay certain projects from time to time. The major challenge being faced today is the availability of skilled manpower. Because this is a technical job and because of the large inflow of orders into the segment, currently there is a critical shortage of manpower execution manpower on the ground. So we are d. We are all, all the companies are, you know, adopting their own methods of recruiting and training people to bridge this gap.
Unidentified Participant
Okay, so just one more question I want to ask that. Are we seeing any. Because there’s like a lot of fear. Lot of you and lot of your peers are also into expanding their capacity for tower manufacturing. So are we witnessing any overcapacity or how is the industry dynamics regarding the poles and towers, the hard material that we supply? So how is the industry dynamics in that front?
Sharan Bansal
See again, you know, because our capacity is differentiated two, three reasons because you know of our strong engineering skills, our availability of a very, very big design, engineering and testing team and also our backward integrated capacity which gives us significant cost advantages over our peers. I would say that for a non. For a player who is not that cost competitive. Yes, they would find it difficult. They might find it difficult in order to get margins but where we are concerned on the strength, you know, where there is a substantial differentiated offering that we give to the market along with a cost economical structure, there we will not face any problem of demand.
Unidentified Participant
Okay, thank you. Thank you. This was from my side. Thank you for the detailed answer sir.
Sharan Bansal
Thank you.
operator
Thank you. The next question is from the line of shma. An individual investor. Please go ahead.
Unidentified Participant
Hello sir.
Sharan Bansal
Yes sir.
Unidentified Participant
My question is are you implementing any automation robotics for AI in manufacturing process?
Sharan Bansal
Yes, certainly digital transformation is high on the priority of the company. We are currently in the process of implementing SAP S4 HANA rise. So that is something which we are doing implementing across the company. At the same time we are also now doing a lot of R and D and seeing how various AI agents can be adopted in various processes like procurement, selling, manufacturing. So all of that constant. We have dedicated digital transformation teams who are working on making sure that we adopt the latest industry practices and continue the company onto the journey of Industry 4.0.
Unidentified Participant
Thank you sir. I have one more question. What is the current Domestic Order Book 5 and its execution timeline?
Sharan Bansal
The execution timeline is anything between average two to two and a half years.
Unidentified Participant
Okay sir, thank you.
operator
Thank you. That was the last question for today. I would now like to hand the conference over to the management for closing comments.
Sharan Bansal
Thank you everyone. We are confident of delivering profitable revenue growth with a consistent margin in the current year and expect to crop revenue growth growth in excess of 25% for the current financial year on back of pending engineering and infra contracts and improvement in polymer segment performance. Our diversification into international markets and sectors will help us to pick choose higher margin orders coming our way and provide us an opportunity to be foiled for choices across the sector aiding to continue better margin performance, improved bottom line profitability and capital return ratios in the coming quarters. The Company’s efforts towards sustainable business practices will help to achieve its goal by making meaningful contributions to the national and global infrastructure.
We appreciate your continued support and look forward to interact with you again in next quarter. Thank you.
operator
On behalf of ICI Share securities limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.