Stallion India Fluorochemicals Limited (NSE: STALLION) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Shazad Rustomji — ceo
Analysts:
Parth Raorane — Analyst
Presentation:
operator
Ladies and gentlemen, good evening and welcome to stallion India Fluorochemical Ltd. Q3&9M FY25 26 earnings conference call. As a reminder, all the participants line will be in lesson mode only. There will be an opportunity for you to ask the question after the presentation concludes. Please note that this conference is being recorded. Before we begin, I would like to point out that this conference may contain forward looking statement about the company which are based upon the beliefs, opinions and expectations of the company. As of the date of the call. This statement do not guarantee the future performance of the company and it may involve risk and uncertainties that are difficult to predict.
I would now like to hand over the floor to Mr. Path from Confidely Partner. Thank you. And over to you Parth.
Parth Raorane — Analyst
Good evening ladies and gentlemen. Parth here from Confidely Partners. We represent the investor relations for Stallion India Fluorochemicals Limited. On behalf of Confidely Partners, I warmly welcome you all to Q3 and 9M FY2526 earnings conference call of Stallion India Fluorochemicals Limited. The company is represented by Mr. Shahzad Rustamji who’s the Managing Director and CEO at Stallion India Fluorochemicals limited. I would now like to hand over the call to Mr. Shahjadji for his opening remarks. Thank you. And over to you sir.
Shazad Rustomji — ceo
Thank you. Park. Good evening everyone and a warm welcome to stallion India Fluorochemicals Limited Q3 and 9 months FY26 earnings conference call.
We are pleased to report a strong performance for the quarter nine months ended December 31st, 2025 reflecting the continued execution of our integrated business model, expanding product portfolio and strengthening presence across reference specialty gases and high priority applications. Let me take you through the financial highlights for Q3 financial year 26. Company reported total revenue of 104.87 crores, registering a 23.2% year on year growth. EBITDA stood at 13.56 crores while PAT stood at 11.12 crores. Despite some quarterly volatility, profitability remains structurally stronger compared to earlier years supported by better product mix, higher contribution from aftermarket and value added gases and operating leverage.
For the nine months ended 526. Total revenue increased to 321.18 crores which is a 41.7% year on year growth. EBITDA grew to 43.69 crores which is up 48.6% and PAT surged to 72.8% year on year to 32 crores 32.9 crores earning per share for nine months, FY26 stood at 4.15 compared to 3.1 in the corresponding period last year. These numbers underline the strong operating momentum and scalability of our business model. From a strategic standpoint, we continue to make steady progress on our integration roadmap. We have received the environmental clearance for our 10,000 ton per annum R32 manufacturing facility at Bhilwara, Rajasthan which is a critical step towards backward integration and long term cost competitiveness.
With expected commissioning by August 2026, we are significantly expanding our industrial footprint throughout the upcoming HFO HFC blending and de bulking facility at Mamba to Andhra Pradesh which will strengthen our presence in the high growth a market in South India. In parallel, we are building a strong position in helium and advanced high purity gas solutions. During this period we entered into a strategic technology tie up with a Portuguese based company SIS advance for access to advanced helium recovery and helium liquefaction systems enabling us to address space defense, semiconductor and high precision industrial applications. Additionally, we have signed a long term strategic partnership with Sharpia Oxygen Dubai for technical collaboration and sourcing of liquid helium with supply originating from RAS gases and oil fields and Qatar.
Together these initiatives are helping us establish a resilient globally connected helium supply chain for India. With four operational facilities and two upcoming sites, a pan India distribution network over 40 gases and blends and more than 200 customers across 15 plus countries. Talion today is well positioned as a forward integrated platform spanning reference specialty gases and high priority industrial gases. Given our strong performance in the first nine months, we remain highly confident of achieving our FY26 revenue guidance of 430 crores. Revenue and PAT guidance of 40 crores and sustaining our target targeted 30 to 35% CAGR over the next three years supported by backward integration, higher value products and margin expansion of 3 to 4% over time.
With that I will now open the floor for questions. Thank you.
Questions and Answers:
operator
Participants are requested to raise their hands for the question. Also one can request the question in the Q A box. We have Mr. Sashank Jha so you may unmute and introduce yourself. Yes sir.
Parth Raorane
Actually I have multiple questions. First is regarding that you have sold your holding in two trenches. Okay. First you have sold with CHEMX promoters and prior to that two days ago you have again sold it. Okay, so my question is is this both money going to R32 plant? Yes. Basically we had during that period we had already tied up to go in for a preferential issue. The pricing at that time was approximately about 180, 170, 180. And we thought it would hold steady. So everything was tied up for the preferential issue. Everything was worked out.
But somehow the upward swing in the market, the volatility was such that every day there was upper circuit. And suddenly by the time before we could get down to any working, it had already crossed 250. So the preferential issue could not go through, meaning it became unviable to go through. So the volatility continued for a month plus where it became apparent that, you know, in this volatility we cannot go for a preferential. At that time, QIP was locked in. So the only other and we were not going in for a rights issue at that time, so basically bound us on the fundraising.
So in the short run what we did was I sold 2% of my shares. 2, 2% of my shares and we raised the funds. That funds all were put into the company interest free to kick start the R32 plant work. It’s a time bound project. We couldn’t wait. Okay, got it. And second is regarding the Mambatu and Khalapur plant. Like in last con call you told that it will be started by December and January. And I saw the Today presentation you told Q4Q FY26. So why this delay? Sir, there are multiple reasons for it. In terms of helium, like I said, the helium plant at Kalapur, operationally we completely changed.
In August, September, we completely changed it from a 200 bar system to a 300 bar system to be up to date to the latest, what is, whatever is available. So everything had to be changed. The entire piping, the all the cylinders, all the containers, all the, you know, the evaporators, everything has to be changed to meet the new pressure guideline. So the whole, whole thing got moved back by over three months. Second, a lot of the material is incoming from us. So there, there was a little delay. Everything currently the plant is fully operational. Meaning in the sense the work is all done for the plant.
Incoming imported material is awaited, which should come. We should have startup in March for Mumbai. When we started the R32 facility, suddenly it changed. Number one, it changed a lot of dynamics. In the sense now that we would be having captive R32, the blending is going to be on a very different scale and level than what we had originally planned. Originally was planned that okay, you do little for the country, etc. Now the potential opening up is for a huge export market also and for a huge volume. It’s not limited to the small volumes that we had originally.
Planned the plant itself is scaled up initially. The design of the plant etc it’s a five acre facility. So the design was basically half the plant was empty in the original design. Today the original design was five tanks. Today it is 10 tanks. We are also putting up the same semiconductor and helium facility that we have in Kalapur. We are putting up that also. We are putting up hydrocarbon facility also and additional tanks for the blending what we have planned. So all that you know the complete re engineering has to be done. Number one, change of plans and enhanced volume.
Meaning it’s almost like making two plants compared to what we had initially set out with. So that also it should become operational by March end or April. I agree. But communications would have been come earlier regarding these things that their delays are happening. Because from long time there were no proper communication. It was all it. See you have to understand one simple thing. It does not affect us operationally. It will enhance our operations. Number one. Number two. Communications have been amply given where we have stated in the last call and earlier also that or both the plants have had to be completely re engineered with the new changes that have come as we move along.
So there is no sense us wasting money and putting things on something which was planned two years ago when the current ground situation has completely changed. So it’s in line with that and information has been amply given.
Shazad Rustomji
Would request Mr. Shashank to join back the queue. Since we have limited time from the management. A kind reminder to all the participants. Please raise your hand to request your question. Also one can request the question in the Q A box. And one short reminder too that as we have restricted time from the management everybody is restricted to two questions. Next we have Mr. Aditya Singh. Sir, you may introduce yourself. Hi. This is Aditya Sen from Pindock. Sir, my first question is regarding the Bilwara plant. We were about to commission this in July. Both the phases.
And in the opening speech you mentioned. That we are pushing this to August.
Parth Raorane
So is this actually pushing the deadline or we are just taking some margin of safety? And if you are pushing then why are we doing the same First?
Shazad Rustomji
First thing is we have provided a projection of six months of production. That means technically I have given you production cycle starting the 1st of October not August. So whether I do it in September, whether I do it in July, whether I do it in June, it makes no difference. Because our projections, confirmation and timeline provided is for six months production in 26. Do we have a trial production also? Before we commence this facility for commercial. Purpose we would be having a trial production, we would be having a trial run, we would be having initial startup, debottle neckings and whatever. You know, the quality checks etc. So all that would be done. See basically we. If you’ve noticed how we operate, we always tend to provide whatever we say carefully and with lot of margin. So basically what we have projected is start from October. We plan. I have said. I have said we will come, we will complete everything by August. Our target is much earlier.
Parth Raorane
Fair enough.
Shazad Rustomji
In fact this was the only reason. Why I was asking asking this because. In the last call also you mentioned. That you achieved the goals on time. And here we were pushing it. So I thought I just confirmed this that if you are postponing. We are not postponing anything. It is absolutely from day one what I’ve been speaking is there. If you see from day one six months ago also when we have spoken of this, I have always given six months production cycle for 26. So six months is October to March.
operator
All right. And the second question is. Mr. One question. May sir please join the queue. We have restricted time from the management. We’ll allow you the next time. Next we have Mr. Arindam Datta sir. So you may unmute and introduce yourself.
Parth Raorane
Yeah. Hello. Thank you for giving me opportunity. Sir, I have a couple of questions. One question is like as we know that we have only distributed license from. Honeywell for HFO blend.
Shazad Rustomji
And I guess Navin has the production license. So does that mean like whatever we sell HFO that R32 which is used for the HFO we cannot use our own production R32. We have to always get it from Naveen or because. Why I’m asking this question. Because of our aggressive expanding of R32 production. We have a 10,000 metric of anyways coming from Bilwara plant as well as we are planning for Ukalia plan for another 10,000 metric turn. If I am correct. So just wanted to understand where is.
Parth Raorane
That so much demand you are seeing what you said?
Shazad Rustomji
Firstly, I think there’s a little confusion with you in regards to your question. You said. See basically we do not like speaking about another company number one. So I don’t want to comment on that. You said Naveen has a license to produce HFO. Then where is the link up with the R32? With that there is no link up is the one of the main constituent of HFOs. No, no it is not. HFO does not use R32. HFO blends use R32. Naveen does contract manufacturing For Honeywell. For one of the products. Number one, we have no.
We cannot speak on what contract some other company has. Or what is the dealing another company has. We can speak about our company. So ask me what you want about our company. Yeah. So R32 like we are expanding it to 20000 metric ton, right? No, no. We are expanding into 10000 metric tons. Okalia is in Bhilwara is the same plant. You mean it’s the same. It’s the same plant only. Okalia is the industrial area. Ukalia is the name of the village. And Bilwara is the district. I got it. Okay. So in that case like why do we have then like it was probably 230 crore initially.
Whatever. Whatever I have heard about.
Parth Raorane
Right.
Shazad Rustomji
So it was a. It was a 5,000 ton plant originally planned which we have expanded to 10,000 tons. It was planned in two phases. First 5,000 tons and then the follow up 5,000 tons. We decided to go in for 10,000 tons together. For economies of scale. So like the capex what we had communicated last con call. So that was probably like 200 or somewhat crore, right? Right now it is another 362 crore that you have. Basically the total funds being raised at 364 crores. Number one, that is for twice the capacity.
Parth Raorane
Okay.
Shazad Rustomji
And so how much will be from the preference or whatever this right issue. Everything will be from the rights issue. And like what you have given to the loan to the company for interest. Fee that also included into this 362. Or no, that is included in this. And what I have given into the company will come back will be reissued in the rights to me. Okay. I will be subscribing for the rights issue also. Sure. Yeah, yeah. Just them. Sir, to please join the queue.
Parth Raorane
Sure. Thank you.
Shazad Rustomji
Thank you. Participants are requested to raise their hands for the question. Also one can request the question in the Q A box. Next we have Mr. J. Mehta. So you may unmute and introduce yourself. Hello. Sir, I have two questions. Firstly on the land side basically for the Bilwala plan in the draft of there is mentioned like you have a. You have like got approval for two lines out of three. You have like proposed. And so my major question is for the 1000010 plan. Do you require that all the three lines or is it like just one line and you need.
And you like fall back up. You are buying clean plots?
Parth Raorane
No, it’s basically. See in a. In a. How to say in a chemical process plant you need to have all your Plans. Whatever you’re going to do from start to end, you need to be very clear. You cannot, you know, you cannot say that today I’ll make this plant and then unplanned. Tomorrow say I want to put something else. Everything has to be planned from day one to the last day, whatever you want to do. So whatever you are going to be making has got to be a integrated design of how. Now I’ll give a simple example.
You’re going to make a water treatment plant. You’re going to be making a treatment plant for hazardous waste, etc. Every expansion you do, you’re not going to start making a separate plant for that you’re not going to duplicate. So you’ll have a bigger one area and in your entire entirety in your design, you will already have taken in that. This is the common area where this will come. This is the common area where the water will be. From here the water treatment will go. This is the raw material storage. So the common raw material storage for all your processes.
What would be there? So basically your, your design has to be complete. So you cannot, you know, bank that Tomorrow I’ll buy land and I’ll expand. It has to be either you have it and you have the whole plan together. You do your work in phases. So currently first we’ll be setting up the 32 plant. Next we’ll be setting up a plant for the byproduct commercialization and the chemical process. All your byproducts, the company that manages to commercialize its byproducts become successful. So basically the next step would be by commercializing all the byproducts or waste products that come out in each of the manufacturing process.
Third is we’ve already declared our plans for HFO plant next. So in a series it’s all going to be there. Currently for the current operations we need the two plots critically. The third plot also is there as part of the expansion for whatever else we have got planned. We’ve got series of things planned, we’ve got series of plants, everything in mind and planned. Why we are not putting it up. We don’t want it being construed as leading the market or like you know, trying to inflate what we’re trying to do etc. So we are being little reserved in whatever we are releasing.
But our plans are for the next four years. We’ll be continuously expanding and growing the number of plants that we have and the products that we have.
operator
So for clean clean land parcel you are the estimated CAPEX is 12 or the folder 2 of them is the 12.
Shazad Rustomji
What is it all fall tree. See, it’s under. It’s with a MOU signed with the government of Rajasthan. Land provided is highly subsidized and allocation is done on the specific mou. When you sign a. When you sign a MOU with the government, it’s not a. You know, it’s not a small thing. It’s meaning it has its responsibilities and it has its benefits also.
Parth Raorane
Second question, sir, I had was request Mr. J. S please. Sir, can you join the queue or as we have limited time from the management. Okay. Yeah. Participants are requested to raise their question. To raise their hands for the question. Also one can request the question in the Q A box. Next we have Mr. CK Nathani. Sir, you may unmute and introduce yourself.
Shazad Rustomji
Yeah. Hi.
Parth Raorane
Can you hear me?
Shazad Rustomji
Yes. Yeah. I just want to know one question. This is regarding the pricing power of Stallion. So you say that if R32 gas is produced and it is reached at the good purity level the customer would be indifferent. So what’s the Stallion’s pricing power if you want to retain the customer? I have not really understood the question you mean. See, once you go into manufacturing my pricing power will be same as what is Naveen’s or SRFs or anyone else’s or any other manufacturer. So suddenly what happens is our price parity. Okay. There may be little difference in.
In further backward integration or something. But that’s very marginal. So basically we get the same advantage as any other manufacturer. So how you retain the customer. Like you must be having a customer retention. Like would you lower your margin or how competitive in that sense? Let me put it this way. Currently we don’t manufacture and we still retain the customer. In spite of global multinationals. Global giants over 10 times the size of the local company and against the local manufacturer. So tomorrow when we become a manufacturer ourselves, what gives you the impression we will not have strength to retain or keep the market that we have or grow it without being a manufacturer we are managing.
So if you have a manufacturer with double the strength, why do you have doubt that it won’t be more strength? And second part of the question is that your statement is that the company’s Future target is 35% CAGR for next three years. So how is your underlying data on this? Like you are saying 35% for three years. So is there any roadmap on this to be for the three next three years? Yes. First thing is currently our turnover targets given is 430 crores. I think with. With our nine months performance. If this was a cricket match, five day match or something, it would already be declared.
So we’ve achieved. We will achieve whatever we have projected. So this year is 430 crores. Next year we would be having the start of the Mumbadu facility. Would be having the start of the helium facilities. That itself would provide additional growth. Number one. So safely to say that 50 crore more should not be an issue. And most importantly you’ll be having six months of R32 production. So safely taken that should be about 275 crores. So 675 crores is there. The next year you’ll be having the 12 months production of R32. So even without any other growth you will still be from 675.
And at 275 plus 950 crores would be your growth next year. And then the following year you would be coming out with the hfo. Okay. Okay. Understood. Thank you sir. And there’s not even. This is not. This is not even counting the natural growth of the company in the current field. That is, it is in. Without that also it is pretty much clear that the growth factor would be there. Okay, understood. Thank you. We’ll join the queue for the questions. Thank you.
Parth Raorane
Participants are requested to raise their hands for the question. Also one can request the question in the Q and A box. Just a quick reminder as we have limited time from the management. Everybody is restricted to two questions. Next we have Mr. Ramesh sir, so you can unmute and introduce yourself. Mr. Ramesh Shah, so you can unmute and introduce yourself. I am unmuted. Am I audible? Yes.
Shazad Rustomji
Yes. Okay.
Parth Raorane
I wanted to ask you about Kalapur and Mambato plant. Just two, three things that all the equipments that we are importing, have they been shipped? If they have been shipped, when will they reach the Indian port? And once it reaches the Indian port, in how much time the commissioning can happen. That’s one thing. And the second question is somebody just asked earlier about the rights issue. So I’m guessing that you sold some steak so that will be reissued to you. In terms of your rights shares, will.
Shazad Rustomji
You be putting more money?
operator
Apart from that, these are the only two questions I have. Thank you.
Parth Raorane
First thing is for the Kalapur and Mumbai has mostly Indian supplies. Because even the imported material that we are purchasing like the compressors, pumps, the, the flow meters, etc. They have the. The. The MNCs have their branches or companies in India so that everything will come from India itself, number one. And most of the Stuff is ready. Meaning we don’t have to wait. It’s now the engineering is going on and the construction work is going on in terms of the helium plant. Everything is completed. Every plant and machinery is at site and it. I think the plant should be fully operational and ready by this month end.
The last few items, critical items that are not manufactured here and are coming from us. They’ve already been shipped out. They should be coming by I think march first week they should arrive. That is for which plant? Helium plant. And the rights thing. Rights issue, whatever. I have number one sold. Definitely I would be whatever I’ve given to the company. Meaning it’s on interest free. So that will come out and come back into the rights and come and whatever else. Definitely I would look at subscribing as best I could. Thank you.
Shazad Rustomji
Participants are requested to raise their hands for the question. Also one can request the question in the Q A box. Next we have Mr. Santos Singh. Sir, you may unmute and introduce yourself. Hello. Good evening Rustamji. Am I audible? Yes sir. Good evening sir. My first question is since we have made these changes to the plant and now my. Our capacity is a double. So when. When would we achieve the maximum capacity basically or when next expansion will be needed? That’s the. My first question. Let me put you the second question as well. You have also made changes to our product basically. So is margin different as I think one of the c. I mean participant asked about the similar thing. Whether the customer will be different set of the customer would be there or how.
How the margin would be there in this new product. Yeah, that’s my two question I think. Sorry, can you just. Your first question is what related to the double of expansion? Right. We have been changing to the plant, right. The. The expansion we have doubled the. We had originally planned for 5,000 ton manufacturing and the reason we had planned for 5,000 ton manufacturing is that we noticed that all the manufacturers in India usually started out with that capacity and then expanded. So basically in our think tank in our planning section there was a school of thought that maybe there’s a learning curve or you know, maybe why do we want to reinvent the wheel? Why don’t we follow what everyone have done.
So start off with that size. But afterwards as we went through the whole design engineering and the planning and everything, we realized that there’s nothing difference between 5,000 or 10,000. It’s just a scale of what you know, at what they wanted to start off with. So then we decided to. Because you know it’s Very difficult once you have a running plant to expand and double the capacity. So then we decided that like Mamba Tour rather than do it in phases where you have an existing plant needing shutdowns, you might as well complete everything at one shot.
So the capacities were doubled. Your second question is the product remains the same 32 new product like yeah, yeah. Even helium. Right. How would the margin would be in these products and customers are different. All the. All the new products that we are getting into and all the new business that we are getting into all will be having a margin ranging from 16 to 24% pat it will enhance our path. Currently that is at 10%. We’re looking at enhancing it to 24%. Okay.
Parth Raorane
Okay.
operator
Got it. Yeah. So thank you so much for answering my questions. All the best for.
Parth Raorane
Participants are requested to raise their hands for the Q Org for the questions. Also one can request the question in the Q A box. Next we have Mr. Ashish Soni. So you may unmute and introduce yourself.
Shazad Rustomji
Yes sir. So I think are you sufficiently funded for this Bilvada plant or do you think some more funds only after rights issue? Because if at all things goes wrong, what’s your backup plan? Because I heard initially you sold off S earlier then your challenges in preferential qip. So I just want to understand the current status in terms of how much you have and how much you’re planning. I just want to get a clear clarity on that front. We don’t have any issues with funds or anything. Meaning basically see how what we are looking at is currently we are debt free status.
If we want to go for project loan under the MoU that we have signed or on auto basis we would end up getting Project Finance. Also the banks are already tied up into the MoUs with the government of Rajasthan. So number one, secondly it’s a greenfield manufacturing facility. The company is listed. So if we wanted to raise Project Finance meaning we absolutely have no issue on that it would happen in 20 days, 25 days. So in terms of funding that way in terms of internal accruals and funding also in. In case of anything we. We see no challenge or any issue.
Meaning we are not stressed on funds or anything. Number one. Number two, a reason for going for rights and expansion. See this would probably be the last dilution. We don’t see onwards the requirement for any further dilution because the cash flow would pay and any further expansion would be a mix of debt and meaning debentures or something. But I don’t see further any requirement of any dilution so basically how we saw it is at the current market volatility in the current global turmoil that we see all around, we wanted to ensure that the company is on a debt free status only.
We didn’t want to at this stage take on any debt. So technically we have absolutely no issue. Second, I’m happy to say that in spite of the volatility in the market, the general market conditions coming down, etc. Shareholder base has grown from 40 to 50,000 shareholders. And we see that as a very strong indicator that there are a lot of people who would be interested and we see no challenge in the rights issue at all. And second question, I think you did sort of tech transfer or JV or whatever for the helium thing for hfo.
Is there anything planned and how are you planning manpower for this, all these plants? Because earlier your mode of operations or the way of the working was different compared to a manufacturer. Right. So just throw some light on this as well. See, it’s basically when you sign for technology transfer, when you sign for design engineering. Now obviously we are not sitting and designing this plant. There is a professional company contracted for doing that work. Even the setting up of the plant, we are not doing anything. There’s a professional EPC contractor specializing in this job who are setting it up.
So as part of the process they also have to get the manpower, they also have to train the manpower and they also have to ensure smooth running for two years. But what about HFO Blend? Do you think you require some sort of trans tech transfer? Something from any other company, foreign company even for this we have taken tech transfer. No, we have paid for the technology transfer. We purchased the technology pack and we have gone ahead. The same would be the process there also. Okay, it will be like how much.
Parth Raorane
Would request Ashish sir to please join the queue. Apologies for the same. Next we have Mr. Ms. Sanchita Sood. Ma’, am, you may unmute and introduce yourself. Hi. Thank you for the opportunity. So my question was that if we talk about our current capacity, that is excluding Kala, Pur, Mambattu and Vilbara, what kind of revenues can we do at peak utilization and what is our current capacity utilization as of now? And. And my second question would be that. Could you please repeat for this Bilwara plant, what was the capex amount and how much revenue can we do from 10,000 metric tons capacity?
Shazad Rustomji
Ma’, am, can you ask the first question? I’ve forgotten what you asked. Yes, I was asking that on our current capacity, that is excluding Khalapur, Mambattu, and Bulwara. What kind of revenues can we do at peak utilization?
Parth Raorane
Okay, let me answer that first. The current turnover that we are seeing is excluding this three new facilities. So we’ve done 430. Meaning we had given a projection of 430 and we have done 430 in March we’ll give the projection of what we’ll do in the coming year. And basically we would be meeting that there would be growth in that itself. Even in the existing business though like when we are speaking we don’t give forward statements or we don’t give forward projections. You know highly raising it up and all. But definitely it there would be a growth in that.
The reason now you’ll ask meaning where the confidence comes from. All the current HFCs all are at 5, 6, $7. All the HFOs at 25 and $30. All the HFCs are slowly changing over to HFCs. So the normal growth that we would see would definitely have a growth in the business itself.
operator
Okay. All right. And so my second question was from the R32 plant from 10,000 metric tons capacity what was our capex amount and how much revenue can we expect from this facility?
Shazad Rustomji
CAPEX amount. See we are raising 330, 364 crores we are raising for this R32 plant. In the first year we expect 50 production. I’ve given a target of six months production. So October to March we expect to have about 275 crores. And the path is at the least expected meaning 24%. So it would be 66 crores PAT. In the next year 27 it would be 550 crores revenue and 132 crore PAT. Combined with our current business and the new two facilities starting up. So it should your path would be in the vicinity of like between 180 and 200.
Parth Raorane
Okay. All right, thank you so much. Next we have Mr. J. Maitham so you may unmute and ask your question. Sir, I had a query regarding in the latest the quarterly update you have given. That is you’re from what meaning organization or this? Sir, I am from Ilios. Okay, sorry. Yeah. Sir, my query is running the IPO proceeds you there is like a huge chunk of money which is still unutilized on the books in the December finances. Basically which we can see like for Kalapur it is close to 47%. For number two it’s a plugs 80 percentage unutilized.
Shazad Rustomji
So we have one. See we’ve got a total of about I think 26 crores unutilized. The reason is number one, the major in Mumbai, the construction work is going on. The way we work is we never pay in advance. We pay after the work is completed. So basically work is undergoing. So why would we pay them in advance? Okay. We don’t pay for any of the works that we have done. Like even for the plant and machinery etc. We don’t pay advance only for critical equipment. We will pay 30% advance. Rest is against delivery. So most of the things like that have four months delivery period or six months delivery period.
It will get paid when the material arrives here. Only the advance is paid out. And for regular Indian suppliers or contractors, like any contract work that is being done on the site etc. They have to complete the work. They’ll get a small tranche in between. But the bulk of payments will only be done on completion of work. Okay.
Parth Raorane
Second thing about. I’d say the okay talking about only the helium plants basically for the Kalapul and Mumba too. So what is the like the I I let like there is a huge upgradation happen. Basically there must be some higher capex required as well. From earlier. 50 crores out of IPO business. There will be higher capex involved. What was the amount and what is the like the revenue potential? Now given that all the lesson has been taken.
Shazad Rustomji
The helium facility in Kalapur. That work has been concluded. Meaning that work is getting concluded. We are also expanding to Mamba too with helium facility to give us reach in the south. Now all that comes from the internal accruals of the company. Yes. But what amount. It would be, meaning it would end up being about 15. 20 crores and revenue potential. You see, you have to understand how the business evolves. If you have one setup in say Maharashtra when you’re supplying the bulk of your like you know the 60, 60, 70% of your profitability comes from the liquid helium, not from the gas. So when 70% of your profitability comes from the liquidity you have to be within 500km of your target customer. That’s the maximum you’ll be able to reach profitably. So what happens is if you’re think, thinking you’ll sit here and you’ll service someone 1400 kilometers away is you’re not really going to be a player.
So whoever’s there will have the chunk of the business. Secondly, you will always be a marginal player. You will not be a bigger player. Like what makes Lindea Lindy and they’re spread all over. So when you have the facilities in Each regional side. India is a, you know, big country, land bread. So technically within 500 kilometer radius. When you have like in the south, you have in the west, you have in the north. No, not. We already have land. We’ve got a facility in Gilotte. The next facility would come up there. So it is important that you have, you follow the norms of the business and what makes economic sense.
When you’re targeting helium as a totality and you want to be a player, at least a 20 player in the market, 25 player, you will need to have multiple plants in each of the regions. Meaning you won’t, you won’t be able to get that 20, 25 market share having one facility in India, even though that facility may be able to provide that by capacity. But you won’t get, you won’t get that volume of share.
Parth Raorane
Okay sir, but again you must be targeting some something, right?
Shazad Rustomji
A long term target is. Meaning long term means within five years. Our target is 200 crores for helium. Helium and specialty gases.
Parth Raorane
Okay, thank you Mr. J. Mehta. Now we would like to hand over the floor to the management for the closing remarks.
Shazad Rustomji
Thank you. It’s been a real volatile time for all investors. Basically with the markets, you know being volatile happenings globally with us especially, especially. Etc so it’s been with metals going up, down. It’s been a highly volatile time for all investors. Basically what we look forward to is that with this upcoming facility within 6 months, this facility is a normal company would take 18 months to set up this facility. So basically what we’re doing is it, it would be establishing a sort of a record for a chemical process plant. If we conclude and make it in the time that we have said, once that facility comes about, we believe that the company will hold a very different value.
It will also hold a very different stability in respect to its marketplace etc. And that should work out very well for all the investors who have trusted and have been there with us. We would be having a rights issue shortly. We would be coming out with all the announcements etc for it and we look forward to all our investors participating in that also. Thank you.
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