Standard Glass Lining Technology Limited (NSE: SGLTL) Q1 2026 Earnings Call dated Aug. 04, 2025
Corporate Participants:
Unidentified Speaker
Nageswara Rao Kandula — Managing Director
Analysts:
Unidentified Participant
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Standard Glass Lining Tech Limited Q1FY26 earnings conference call hosted by Co India Advisors. 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 attached to phone. Please note that this conference isn’t recorded. I now hand the conference over to Ms. Vriya C. Patel from Go India Advisors. Thank you. And over to you ma’.
Am.
Unidentified Speaker
Thank you. Muskaan. Good evening everyone and welcome to Q1FY26 earning call of Standard Glass Lining Technology Limited. We have on the call Mr. Nageshwara Rao Kandola, Managing Director. Mr. Ramakrishna Kandola, Executive Director and Mr. Pathuri, Chief Financial Officer and Ms. Heema Priya, Company Secretary. We must remind you that the discussion on today’s call may include certain forward looking statements and must be therefore viewed in conjunction with the risks that the company faces in the. I will now request Mr. Rageshwara sir to take us through the financial and business updates. Subsequent to which we will open the floor for question and answer.
Thank you. And over to you sir.
Nageswara Rao Kandula — Managing Director
Good afternoon everyone. Thank you, Priyashi. A warm welcome to all our investors, analysts and stakeholders Joining us today on the QL FY26 earnings call of our company. It is always a pleasure to engage. With you and share our business progress. I’m happy to report that we have started FY26 with a strong quarter both financially and strategically. Let me begin off briefly highlighting our Q1 performance. Our total income was 178 crores growing 23.6% year on year growth. Our EBITDA was by 31.9% year on year to 35 crores with a margin of 19.5%. And as a result our first after tax came in at 21 crore of 37.6 crore year on year with a tax margin of 11.9%. These results reflect our execution strength, operational efficiency and strategic focus. Strategic Updates Heat Tech changes A major step forward. One of the most exciting developments this quarter is the domestic launch of our shell and tube heat exchanger.
This innovative parts meet the growing demand for corrosion resistance, particle free safety and compliance in the pharmaceutical and specialty chemical sectors. We have received strong initial orders from our key clients which validates our positioning as a provider of engineered solution, not just equipment. We are now investing further in these product lines, expanding manufacturing capacity, improving design and technology, educating customers about these products. We are confident that this business line will become a key key growth engine. For the our company. Expanding Southeast Asia reach through biocon Partnership Another important milestone was our agreement with the biocon Solutions PTE Singapore. Biocon is our exclusive agent for markets such as Indonesia, Malaysia, Thailand and Singapore. Together we are already seeing elite traction and inquiries from this region. This partnership strengthens our global presence and supports our strategy of geographic diversification and export lead growth. USDA Subsidiary Strategic Support to ITP As a part of our international expansion we have incorporated Standard Engineering Inc. Only one subsidiary in South Carolina USA. This subsidiary has a clear purpose that is to support IPP. As you know, IPP is our exclusive.
Dealer for USA and Europe. IPP is a highly respected industrial equipment dealer with one 68,000 client base in the world with deep customer relationships across key global markets. By having a local Standard Glass entity in the usa, we can support IPP with technical and engineering resources, ensure faster delivery, respond better to customer requirements, strengthen after sales service. This is a strategic move to increase our brand presence and build long term trust in the global markets. Looking ahead, India is the CDMO and specialty chemical sectors are growing at a rapid pace and the global market is increasingly turning into Indian companies for quality compliance and scalability.
Standard Glass is well positioned to capture these opportunities with with engineering excellence, customer first thinking, global ambition and end to end solution. In summary, Q1FX 2016 has been a quarter of high quality growth, strategic progress and strong execution. We will continue to expand high margin product lines, grow our international footprint, create sustainable value for all stakeholders. Thank you once again for your continued confidence and support. Now I would like to invite our CFO to walk you through the detailed financial performance. Thank you all. Please Andre Nagaru, please continue.
Unidentified Speaker
Thank you sir and good afternoon everyone. I am pleased to take you through the financial highlights of our company for the quarter ended 30 June 2025. The total income for Q1 stood at 178 crore marking a 23.6% year on year growth driven by strong execution and rising export volumes. EBITDA reached 35 crores showing 31.9% year on year growth with margin improvement to 19.5% due to favorable product mix and increased export contribution Profit before tax rose to 28 crore representing 39.6% year on year growth. Profit after tax was 21 crores reflecting 37.6% year on year growth.
Balance sheet strength, cash and cash refunds stand at 209 crores providing the significant financial flexibility. Working capital remains well managed at 173 days reflecting our disciplined control on receivables and inventory. Our focus on engineered products, high margin segment and global exports continues to support both top line growth and bottom line efficiency. We remain committed to financial discipline, strategic capital allocation, sustainable value creation for our stakeholders. Thank you. With this now I would request the moderator to open the floor for Q and A session.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star N1 on the touchdown telephone. If you wish to remove yourself from question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Kaushik Mohan from Ashika Stockbroking. Please go ahead.
Unidentified Participant
Hello. Hi sir.
Nageswara Rao Kandula
Hi.
Unidentified Participant
I’m audible. Yes, I just wanted to understand on the. I just wanted to understand on the export side. Sir, we currently in this quarter we recorded around 4% on the export side in the total revenue. I just wanted to understand how much this 4% contribute to our EBITDA margin. 20, 25% I think. Exactly. We don’t care that but 25%. Okay. And what is our over the year? What is our expectation that we will be maintaining our export on the higher side? What numbers that we can.
Nageswara Rao Kandula
I think 12 to 15%.
Unidentified Participant
12 to 15 percentage. And in the EBITDA margin of 25 percentage. 20 to 25% you can assume.
Nageswara Rao Kandula
And the export we are not. We are not dealing with separate export but total company. We told earlier.
Unidentified Participant
Got it, got it. Thanks. So that’s one question.
operator
Thank you. A reminder to all participants. You may press Star in one to ask questions. The next question is from the line of cost of Shah from wall 4PMS. Please go ahead.
Unidentified Participant
Hello. Good evening sir. Thanks for the opportunity. So I had one question regarding. So we have been couple of acquisitions in the past now. I just wanted to understand though what synergies we have driven from these and any other no M and A or acquisition that are there in the pipeline for this financial year.
Nageswara Rao Kandula
Right now present we don’t have any plans but if the right opportunity comes we are definitely. We will consider and we will Proceed. But earlier whatever we acquired that companies like a CPK and standard Fora now we are pushing our culture and quality and that both subsidiaries now increase started increasing sales growth so any any further future opportunity come? Definitely we’ll consider that.
Unidentified Participant
Okay. Okay. Next thing was on the. Sir, no when we are providing the services for the corporates so out of that how much would be turnkey or high margin versus more standard product services that would be offering any application. EBITDA level All are same, sir. Okay. EBITDA level whether it is a small service or a large service contract everything will be the same, correct?
Nageswara Rao Kandula
Yes. Yes. Okay. And one more thing sir, on the segment side. I know. I just wanted to check one thing. The PTFE line equipment or the EBITDA margins are around about 8 and a half percent. Obviously last quarter was also 8.6% but then the last three quarters it was above 20 odd percent. So any. Any reason why it has come down and whether we should consider this as the standard margin for this segment? The mixing of the parts, customer mixing parts. Okay, that is the main reason. Yes.
Unidentified Participant
Okay. And lastly any plans for us to know expand our product portfolio into PT lined categories where the market growth is there High alloy segments.
Nageswara Rao Kandula
All product lines we are expanding because of now we are. We are. We are expanding we are mechanizing facilities the same facilities we are going to existing facilities we are going to do new capex with automation manufacturing so all capacities we are going to increase.
Unidentified Participant
Okay. Okay. And lastly sir, regarding the new facility which is coming up you had mentioned that you’ll also like to start the serving the oil and gases petrochemical chemical division. So what. What. How is the progress of that facility and are we seeing any interest from any of the customers of that segment?
Nageswara Rao Kandula
But the present is going to now just we got permission and the government area and everything so we are going to. It will take another 15 to 18 months facility completion. After that facility completion even we will get into that area.
Unidentified Participant
Okay, Great. Great. Sir, if there are any further questions, I’ll come back in the queue. Thanks. Thanks sir and all thanks. Thank you.
operator
Thank you. The next question is from the line of Krishna. You are an individual investor. Please go ahead.
Unidentified Participant
Yeah, so for the little clarification for the previous participant question. So you maintain 12% of revenue mix you’re going to expect from the international market, right? For this year?
Nageswara Rao Kandula
Yes.
Unidentified Participant
Three years down the line what kind of revenue mix you’re going to see from domestic and international. For a period of time next 10 years down the line our objective is to maintain 40%.
Nageswara Rao Kandula
From exports and 60% from domestic.
Unidentified Participant
Okay. 40% on export and domestic. Okay. So sir, how do you see right now in this year the order inflow. From the international marketplace is very good. This year and we are targeting this year.
Nageswara Rao Kandula
See see our results and our growth. Is showing our performance three years back. Our really our export is zero this year. This year we are going to reach 13 to 15% export. We are planning to expand our export coming five, six years at least to 30. 40%. 30%. 40%. And our port acceptance is day by day increasing. Adding international clients, many clients coming and seeing our facilities and they are very impressive. So future very bright. Once the export is increased again our. Profitability going to increase.
Unidentified Participant
To the same point. Actually you mentioned that 4% of revenue mix was there in the Q1 from the exports. So if you compare with the last year June quarter since we’re adding 4% extra from export market still the EBITDA margins are still same. So how do you see the overall defy country 6 what is the EBITDA margin you’re going to expect?
Nageswara Rao Kandula
Yeah, we will continue to. We see, we will continue to maintain. The same EBITDA margin and we’ll put our honest and best efforts to continue the same ETA margins in the future as well.
Unidentified Participant
Okay, that is not it sir, because we in this quarter we already having 4% of exports. Right. But if you see there is not much, much improvement if you compare with the last year year June quarter. So in the June quarter there is zero exports. But this year we have 4% export. But if you see. No even in. June quarter also there is exports. Export is there last year.
Nageswara Rao Kandula
Yes, yes.
Unidentified Participant
Okay. Okay. Yeah, got it.
operator
Thank you. The next question is from the line of Saurabh Saragi from ncml. Please go ahead. Thank you for the opportunity. And it’s actually Surbhi Sarogi. So my question is in your earlier calls you had guided for 20 to 25% of revenue growth. So are we still maintaining that guidance? And if yes, then what will be the driver for that growth?
Nageswara Rao Kandula
Yes, yes, we are exploring to 20, 25% growth on the already we reach the same this quarter and coming years also we are going to maintain the same growth.
Unidentified Participant
Okay. And sir, if you can explain the. Drivers behind this growth. Sorry, what will be the Drivers for this 25% revenue growth?
Nageswara Rao Kandula
All ports export and all ports for claims.
Unidentified Participant
Okay. Okay sir. Thank you.
operator
Thank you. The next question is from the line of J. Purvi from Inboard Resorts. Please go ahead.
Unidentified Participant
Yeah, am I audible yes. Yeah. So thank you for this opportunity. So my first question is this 123 basis points expansion in EBITDA margin was seen majorly by which of the triggers like for by better pricing, cost optimizations or only by export?
Nageswara Rao Kandula
Answer. All aspects we are focusing on the manufacturing cost decreasing and we are increasing export and increasing price, product price and all aspects this results.
Unidentified Participant
Okay and by the end of the year how much we want to take this export. That is we are trying to export to total top line may be 13 to 15% export. Okay. And do you see? Do you feel any tariff pressure will affect this Export is not going to. Much effect sir we analyzed compared to our cost that is I think we are going to face 2018 to 20% impact. This is. But still we are cheaper compared to US manufacturing cost. Okay, so you don’t think any margin pressure could come.
Nageswara Rao Kandula
But we are that we are discussing with our distributor ipp. They are not raising any questions till date but we’ll see. But I. I’m confident this this is not going to impact anything.
Unidentified Participant
Okay and so what is the CAPEX plan over next say two, three years and could you give us split of how much has already been deployed and in what areas for security expansion, automation. Just in second things we are coming.
Nageswara Rao Kandula
One one year, one and a half year we are going to invest another 40 to 50 crores and the automation and robots building and everything And a new greenfield project we started already this is progressing, started progressing but that we are going to invest another 150, 280 crores. That is complete higher end fabrication heavy engineering purpose. We are building that facilities almost 7 lakh square feet and we are going that is 100 mm fabrication, fabrication thickness and crane capacity. We are creating that facility.
Unidentified Participant
Okay, thank you so much sir. I will join that.
operator
Thank you. The next question is from the line of Kaushik Mohan from Ashika Stockbroking. Please go ahead.
Unidentified Participant
Hi sir. Sir, I just wanted to understand what is our current capacity utilization and with our new facility coming in what will be post that with current numbers what will be our utilization?
Nageswara Rao Kandula
Currently we are using blast learning 50% and our metal divisions also almost 60 70. But the thing is now we are going to add challenge to the heat excavial facility. A new facility we are building that is also and existing facility we are modifying for shalom to glass existing shalom tube glass facility. And also we are. We are bringing automation, manufacturing mechanism, mechanization in the all equipment, fabrication, polishing, welding, everything so capacity going to three fold whatever capacity present. Now we are going to another 40, 50 crores. Then happily we can increase threefold. Existing present is with a three fold manufacturing capacity.
Unidentified Participant
So that means that can we assume that top line can be 2000 crores with the. With the kind of capacities that we are coming up with.
Nageswara Rao Kandula
Yes, yes. Yes.
Unidentified Participant
Okay. And so what about the new facility which is coming up our new facility totally including that facility and existing facility. What can be the total at a peak utilizations. What can be the kind of revenues can be seen.
Nageswara Rao Kandula
That facilities we are going to. We are expecting whatever existing facility, all existing facilities equivalent to that new facility. So almost double the revenue.
Unidentified Participant
Okay, so almost all around 4000 crores. Something can be with new facility under current existing facility or top line can be there. Got it. Got it. Thanks sir. I’ll get back in. Thank you.
operator
Thank you. The next question is from the line of Abhijit K from CCL Products India. Please go ahead.
Unidentified Participant
Yeah. Hi. Good evening. I see. I want to understand. I just saw. I just heard Kaushik’s question. So I wanted to clarify some. Want some clarification on that. You mentioned that the Capacity utilization is 50 to 60%. Is that correct?
Nageswara Rao Kandula
Yes sir. Glass lining facility 50 60%. And metal diesels and PTFE lines and other business others are. We are retaining 65 to 70%. Same facilities. Yes, same facilities. What we are doing one more facility we are converting earlier we are manufacturing glass lining reactors. That facility we are converting to shuttle to be glass running heat exchangers. And existing facilities we are going to totally adding robots, automatic polishing machines, automatic welding machines. Many many things. We are going to another 40, 50 crores capex. We are going to do that in existing facilities. Based on that this existing facilities we can produce three fold man. We are increasing three fold manufacturing capacity. That is.
Unidentified Participant
I said okay. And is this shell and tube heat exchanger. Is this the product that you had mentioned Is solely. You are one of the few people in the world who has access to this technology.
Nageswara Rao Kandula
We are only one Japanese company have this innovation. And we launched this product in first quarter this year. Three, four, three months back. But we got some 220 orders this year. And we installed one of biggest kids client in SRF Dahit plant. And they are very happy and repeat hours Also we received and the customer response is very high. And this is a complete solution for the Karoji area challenge heat exchanger failure. Because particularly pharma is facing graphite exchanger particle issues, color change issues and many some clients we don’t have entry Also due to this part we are getting entries.
They don’t have choice, they don’t alternate. We are approaching directly. They are requesting to supply. But at the present we don’t have capacity to January, February we are going to produce 300 heat exchanges per month. That is going to key drive growth.
Unidentified Participant
For our product lines for 2026, 26 January, February onwards. Okay.
Nageswara Rao Kandula
So 300 next 26 first quarter is full. We are going to full fridge sales top line. This is going to touch this challenge it exchanges.
Unidentified Participant
Okay, great. And I wanted to understand what is the export mix EBITDA margin. If you can share that. Export is. I can. You can 25% EBITDA. Okay.
Nageswara Rao Kandula
Slightly compared to domestically export margins always better.
Unidentified Participant
Okay. And one last question. With regards to US tariffs I know you have signed a partnership with. Company. In the US So the situation at the moment. Has your partner told you anything about this uncertainty? Because I think the tariff rates are changing drastically and there is no clarity on it. So if you can give some light on that.
Nageswara Rao Kandula
And at 25 30% up to this is not going to impact us because of we are still cheaper street there my distributor also selling our price workers their selling price almost double sometimes three times also. But whatever existing. Whatever existing orders are there existing all all existing orders they are not discussing anything. And maybe future maybe they will discuss that time. But that is not going to impact that much. I’m I’m believing because of. Yes don’t have equipment much manufacturers. But manufacturers are there. They don’t have. They have only limited capacities. But still they are selling compared to Indian price they are pricing is three, four.
Unidentified Participant
Okay. And one last thing. Are you guys going to disclose any order books or what is your order book? What is the position of the company existing? Is that something with the company philosophy? We are not doing sir because of. But. But we are this year we are completely almost all full. Okay. All right. Thank you so much.
Nageswara Rao Kandula
Thank you.
operator
Thank you. The next question is from the line of Swati from Zen securities. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Nageswara Rao Kandula
Yes.
Unidentified Participant
Yeah. Thank you. Sir, I wanted to know about this chemical specialty and fine chemical segment. I mean if we compare year on year this segment was relatively lower in terms of revenue share. So is it because the pharma got increased higher or is there any issues that are happening in fragility and fine chem industry?
Nageswara Rao Kandula
We said the pharma Pharma is compared to chemical Pharma is increasing the capital investment increasing. But the recent last particularly last two months we are receiving many agro chemicals and specialty chemicals inquiries and CAPEX requirements, big requirements. We received some orders also good orders also this last one month.
Unidentified Participant
Okay sir, one more thing is like. Since there is lot of like CDMO companies are expected to do well especially on the domestic front. Like is there any inquiries that we are seeing on that part and how is that happening?
Nageswara Rao Kandula
All top CDMO companies, all almost 90% companies are working with standard glass.
Unidentified Participant
So how are the.
Nageswara Rao Kandula
Enterprise always flow? Is there Madam, Whatever expansions, whatever projects they have, we are the preferable lenders. Because of last 10 years we made a very good relationship. We are all, all CDMO some particularly whatever. We have some, I think 25 clients, very top clients are with us CDMO CL and almost all that is four five. Four five clients called me and discussed their CAPEX plans and everything. And we are, we are also. That’s the reason we are. We are going to. We are also increasing our product lines capacities and everything. This is a CDMO always, sometimes capex, sometimes existing capacity increasing, sometimes replace agreements.
All inquiries we are continually receiving madam.
Unidentified Participant
Okay. Yeah. Thank you so much.
Nageswara Rao Kandula
Thank you. Thank you very much.
operator
Thank you. The next question is from the line of Anupam Gupta from IIFL Capital. Please go ahead.
Unidentified Participant
Yeah, a couple of questions. Firstly, the US investment that we are doing in Carolina. Is there a CAPEX that we are doing for that facility or what is the plan there?
Nageswara Rao Kandula
Initially we are going to maintain the equipment stock and service only. We are not going to much amount on that.
Unidentified Participant
Okay, but is there a plan in the longer term that you would want to invest or because of this tariff changes do you think this plan will change over time? Present.
Nageswara Rao Kandula
Sorry, present we don’t have any plan to invest in Coron South Carol facility. But present we are. We started that subsidy only start point schm. License issues and it’s common start point and service provide to service and support to IPP sales.
Unidentified Participant
That is our main object, understand. Okay. And secondly in the 4% export share that we have reported for this quarter is that. Does that include any supply gone to IPP so far or is it still the older exports which. Which are still paying out exports. So when will it be supplies?
Nageswara Rao Kandula
The second quarter is going to ITP export is there already we have planned.
Unidentified Participant
Okay, understand. And just lastly you said that you have installed one shovel and tube heat exchanger in Dahit for SRF170.
Nageswara Rao Kandula
We have order in hand sir. Right now some of it exchangers we. Installed first installed in the srs the Hayes facility. Within two weeks we received second order Also from.
Unidentified Participant
Okay. And these were manufactured with where sir? Because it is not done in India.
Nageswara Rao Kandula
Then there was manufactured to manufacture in Japan complete import. January onward we are going to assembly in India.
Unidentified Participant
So basically so this quarter obviously given that these were manufactured in Japan the margin contribution would not have been very big. But once let’s say the India manufacturing starts what sort of margins do you expect on the 17Q heat exchanger for yourself?
Nageswara Rao Kandula
I’m expecting good margins. We are also. I’m also customer focused driven company. This we are going to reduce some heat exchanger prices also now today we are importing from Japan. Once we started assembly in India with prices also we are going to reduce but margins going to slightly increase. Once heat exchangers we added into our product line our total margin is going to slightly going to increase. I am expecting.
Unidentified Participant
Sure. Okay. Okay. And this one clarification. The what you said earlier in the call was that the heavy engineering which you are trying to do for the oil and gas and. And other segments that is still a year away at least, right?
Nageswara Rao Kandula
It will take another 18 months.
Unidentified Participant
Okay, that’s all for my. Thank you.
Nageswara Rao Kandula
Thank you.
operator
Thank you. The next question is from the line of Rupesh from Intersense Capital. Please go ahead.
Unidentified Participant
Hello sir. Thank you for the opportunity and congratulations on fantastic set of numbers. Yeah, I’m a little bit new to the company so just before starting questions I want clarification. ANFD filters and heat exchanger in. In our segmental revenue which. Which segment do we report them in? Do we report them in glass lined equipment or metal equipment?
Nageswara Rao Kandula
Metal big Compared to our glass drain the metal diesel is bigger.
Unidentified Participant
No, no, no no no. So ANFD sir. ANFB filter. That new shape filter and dryer. NFD filter and dryer that is reported into which segment?
Nageswara Rao Kandula
Metal region.
Unidentified Participant
Okay. And heat exchanger is also reported in metal division.
Nageswara Rao Kandula
Both are there shallow heat exchangers. Recently we launched it but majority metal division also manufacturing is stainless steel and after all.
Unidentified Participant
Okay, okay. So it is recorded in metal division. Okay okay. So sir, my first. First question is. We have seen a significant increase in the grass line division, right? If I see Q1 of last year it was 41 crore roughly and now it is 67 crore. And so what is happening on the ground level? Do you. Do you see this kind of trend continuing? Which of. Yeah but cdm. So pharmacy dmo you have already said that pharmacy DMO is doing capex. But. But can you give some idea about how it will grow this year? How it will grow next year.
So that is question number one.
Nageswara Rao Kandula
Pharma particularly pharma and CDM of business enquiries are increasing last four months. That is. That’s reason this growth. And also this year almost 90% of our order book is filled and coming. We are expecting next 10 years. This growth is there because of our product baskets. And we are providing end to end solutions to clients. Not only equipment sellers, independent 2 millisecond sellers. We are the complete solution provider for two clients.
Unidentified Participant
So this. This run rate for glass line equipment. Can we. Can we expect to continue for next maybe eight quarters. Six to eight quarters.
Nageswara Rao Kandula
Definitely. Sir. Glass lining is again business going to a maybe increasing much more. Because of shall and tube glass lining heat exchanger. Every reactor is required two heat exchangers.
Unidentified Participant
But heat exchanger. You said you. You. You report in metal division, right? Sir, I am. I am asking about blast line equipment.
Nageswara Rao Kandula
Sir please. I am clarifying. Please listen.
Unidentified Participant
Sir.
Nageswara Rao Kandula
Challenging glass and heat exchanger. We already started selling slowly. That is complete import and selling in Indian market. And January next, the 26th of January onwards we are going to assembly in India. And that is the challenge to glass heat exchangers coming to glass division. And shallow tube shapeless steel and high alloy heat exchanger coming under metal division.
Unidentified Participant
I see. I see. It’s. It’s clear now. So it’s. It’s clear now and. Okay. Okay. So you’re saying this division here, this run rate we can expect. Okay. So he exchangers. My. My understanding is that there are already existing companies in India. I mean the market leader I think has the product. Then there is another listed company which acquired another company Kinam that has a product. So what is. What is different this Japanese product and how. How is it, you know opening doors for us. I mean what is the differentiating factor?
Nageswara Rao Kandula
Please understand the technical. Sir. What I’m saying K is manifesting. Yes. India have almost 200 manufacturers. Are there not only one company. We are also met our metal division also producing shallow tube stainless steel heat exchangers and high al heat exchangers. That is our metal division. But coming to gas division. We are manufacturing shalom tube glass heat exchanger through AG Japan license. This part no one have in India even the world also we are going to pay. That’s the reason. We are going to pay royalty. 4% domestic sales and 7% export sales. They are only one company.
You please understand. Differentiate whatever Stainless steel heat exchangers are separate. That means non corrosion heat exchangers shell and to glass and heat exchangers are separate.
Unidentified Participant
Okay. So glass line heat exchanger is the New product. Okay.
Nageswara Rao Kandula
And sir, one more. Please understand one more important point. Glass line is shell and proof heated. Yes. We are only one company in the mantra.
Unidentified Participant
So even the market leader GMM foddler also doesn’t have this product in India. Is. Is that a clear correct understanding market?
Nageswara Rao Kandula
I don’t know, sir.
Unidentified Participant
Who is market leader this area?
Nageswara Rao Kandula
I don’t know. I’m sorry to say.
Unidentified Participant
No, in this. In this even. Even GMM fodder doesn’t have glass line heat and shell exchanger. Is that a correct understanding?
Nageswara Rao Kandula
Yes, correct.
Unidentified Participant
Okay. Okay. Okay, sir. And then sir, you. You are saying that even with the imports currently you are just importing and selling in India. And still. Still the margins are same as coming level. But then once you start assembling in India. So I think what you said in the last call is the 80% manufacturing will still happen in Japan. But the assembling will happen in India. So when this happens in India, you are saying you will reduce the prices little bit. But still this division will have margins higher than company average. Is that a fair understanding?
Nageswara Rao Kandula
That’s correct. You are right, Clyde. Once we launch this part through per month 300 heat exchanger. What philosophy we are going to manifest in 300 heat exchangers here Every month we are present. We are manufacturing 150 reactors. 150 reactors. Each reactor is required to heat exchangers. That’s the reason we are going to manufacturing 300 heat exchanges once the heat exchangers launched. Preface. Our margins are going to increase. That is my strength. Still I am standing on that.
Unidentified Participant
Okay. Okay. And. And. And for what is the. So this I understand the application area from what you are mentioning is into corrosive chemistry. Is that correct?
Nageswara Rao Kandula
That’s correct.
Unidentified Participant
So what is the market demand in India? Total or in annual. What is that? What would be the annual demand of this glass line the shell and heat. Shell and tube heat exchanger in India? Correct.
Nageswara Rao Kandula
Every year 2000 crores demand every year. But existing lot of. Suppose for. Suppose this is all huge figures. For example, I expect our estimate is 1 lakh reactors in running that almost all 2 except 2% reactor. 98% reactors are having graphite exchanges. That existing replacement market also huge. Already one of client recently indicated they want to 600 heat exchangers coming years because of first phase they are going to change clean room heat exchangers clean room. They are getting particles and they are getting particles product color. Color. Lot of issues are there. This is silent glass and with a chamber is going to complete solution for pharma particularly.
And Chemical also. Chemical area also. That’s the reason this is going to be a very blockbuster product.
Unidentified Participant
Okay, okay. So even, even the. Sorry to interrupt, sir. Hello. Yeah, just a clarification. This is just a clarification of the existing question. I am not asking a new question. Can I please continue? Yeah, yeah. So. So just to clarify, so there are 1 lakh reactors, only 2% have this brass line exchanger.
Nageswara Rao Kandula
That have only high aligned heat exchangers.
Unidentified Participant
High align.
Nageswara Rao Kandula
They are using balance all graphite exchanges are using.
Unidentified Participant
So what you are saying is essentially graphite heat exchangers now from industry point of view are obsolete and any upgradation will involve ordering of glass lined heat exchangers. Is that a fair statement to make?
Nageswara Rao Kandula
Okay, okay, okay.
Unidentified Participant
I have more questions that I’ll come back. Thank you. Thank you for these answers.
operator
Thank you. The next question is from the line of Yogesh Bhatti from Sequence Investments. Please go ahead.
Unidentified Participant
Yeah, am I audible, sir?
Nageswara Rao Kandula
Yes, please.
Unidentified Participant
Yes, I just wanted to understand on the part of, are we seeing any slowdown in the key customer segments like in especially light of global macroeconomics, you know, uncertainties out there. So are we seeing any slowdown?
Nageswara Rao Kandula
But last six months not expected this much growth Pharma clients inquiries and the last two months too much increasing and very slow.
Unidentified Participant
So we are not expecting any, we.
Nageswara Rao Kandula
Are not expecting CDMO usually main trade.
Unidentified Participant
Right. Another thing is I wanted to understand, I mean I just needed one more clarification on the thing that we said that there’s a 2000 crores of top line with an investment of 200 crores. Can you specify the timeline for the same.
Nageswara Rao Kandula
Year? On year we can grow steady within 20, 25% growth plus based on that you can calculate.
Unidentified Participant
All right. And also just one more last question. Considering our international exposures increasing, how are we managing our forex volatility? And you know, I mean there’s a cross border sales that’s happening. So how are we managing that. Or. Managing, can you elaborate your question?
Nageswara Rao Kandula
Like there’s a lot of forex volatility that we might be having since we have a cross border sale. So are we, do we have any plans to manage that?
Unidentified Participant
Are you talking about the forex? I mean so we are having a lot of like cross border sales, right? Like increasing there will be certain, you know, the forex volatility that’s going to happen as well. So do you have any plans to manage that?
Nageswara Rao Kandula
Generally we also do the imports from US and other countries as well. Generally automatically it will become the natural hitch. So and we don’t have any product exposure as well.
Unidentified Participant
Thank you for the answers.
operator
Thank you. The next question is from the line of Meet Neta from Persian Exponentials. Please go ahead.
Unidentified Participant
All my question has been answered. Just one thing that the technology that you are saying, you are getting it from jam. So what is the sizing differentiation from the traditional that is sold and.
Nageswara Rao Kandula
Your voice is not understanding. Sir, your voice is not audible.
operator
Sir, can I just request you to use handsets please.
Unidentified Participant
Yeah. Am I audible?
operator
Your voice is not clear properly.
Unidentified Participant
Hello. Am I audible now?
operator
Yes.
Unidentified Participant
Yeah. So one question that what is the pricing differentiation that you are importing from Japan’s technology compared to the traditional GLE that is selling in the market?
Nageswara Rao Kandula
What is the next elaborate Was your question not understandable? Graphite vs Shell and Tube glass and texting.
Unidentified Participant
The price always higher. Price always, always higher. Okay. And do you see any market share. Increase because of this. Market? Just we started blaspheming shell and exchanger. This going to a full fledged impact next January onwards. And full fledged maybe 26 first quarter onwards. Partially it will start.
operator
Hello, Mr. Mehta.
Unidentified Participant
Yes, understood. Thank you. That’s it.
operator
Thank you. The next question is from the line of Abhiji from CCL product India. Please go ahead.
Unidentified Participant
Yeah. Hi. Thanks for the opportunity again. I wanted some clarification with regards to the Sheldon Tube eight exchanger. What can be the approximate price? If you guys are producing it here in India and if you are importing it, will the product be cheaper? I mean I know the manufacturing cost and etc. Should be cheaper. But tentatively when you sell the product, will that affect the turnover? Because you will be adjusting it as per the price.
Nageswara Rao Kandula
We are telling now to monthly. Two things, sir. That by time is selling 300. So turnover how it will affect nothing going. It is going to increase.
Unidentified Participant
No, the price. I am saying the price of the shell and two heat exchange.
Nageswara Rao Kandula
Once we assemble start India we are comfortable. That’s the reason we are. We are already clients. Also we are going to decrease price. Okay.
Unidentified Participant
Okay. Okay. Okay. Then thank you.
operator
Thank you. The next question is from the line of. Yes, from IIFL capital. Please go ahead.
Unidentified Participant
Yes. Am I audible? Yes, please. Yes. Thanks for the opportunity, sir. The S2 unit 5 was commissioned recently which was supposed to integrate other facilities. Which were earlier separate. What is the current capacity utilization? And by when do you plan on achieving full utilization?
Nageswara Rao Kandula
This unified facility we are utilizing 60. 60. 60%.
Unidentified Participant
Okay.
Nageswara Rao Kandula
And by when do you plan on achieving full utilization? This is. We are focusing on that. We are also. We Are adding automation that area also.
Unidentified Participant
Okay and like have you purchased any robots like already for the same like.
Nageswara Rao Kandula
Have you encouraged current Currently we have seven and and total seven robos and we added also some another coming one year we are going to at least we are going to add 46 robos in this segments.
Unidentified Participant
Okay. Okay sir.
Nageswara Rao Kandula
And and what is like the potential cost savings like because of this plant because you have integrated all the facilities. So potential manufacturing cost we are going to save. And also thing is our contingency of quality and faster deliveries.
Unidentified Participant
Okay sir. Okay sir. So like this is going to help with the working capital days like the requirement or something.
Nageswara Rao Kandula
Working capital days coming also I tell. We are trying to bring down to 150 days more than that we fast because of your we are doing many other areas also end to end solution. Providing faster deliveries, customizing equipment and lot of things are there our product lines nature is like that is we requ. 150 working capital days based on our business nature.
Unidentified Participant
Okay sir. Thank you sir. Thank you.
Nageswara Rao Kandula
Thank.
operator
Thank you. The next question is from the line of Rupesh from Inter Capital. Please go ahead.
Unidentified Participant
Yeah. Thank you. Thank you for the opportunity again sir. So I am. I am referring to slide number 11 on your presentation and in the segmental I see that in the Q1 of FY26 the plant engineering and services is almost 25% of the revenue which was 10 11% before. So my question is are we executing. So this is. This is to me it looks like little bit like the EPC business at least. So you can correct my understanding or you can tell me what do you do in this segment and are we executing some large large order for some pharma clients.
Nageswara Rao Kandula
This is not. We are not in the EPC area. We are in the company solution provider area.
Unidentified Participant
What do you do sir? What I mean can you give me some examples of what do you do in this segment?
Nageswara Rao Kandula
This is what is the difference. EPC companies, you know all source. They will source equipment and they will execute. Here is our equipment. We are manufacturing equipment. We are integrating our equipment to the client place. That is our top key solution. End to end solution basis.
Unidentified Participant
So you. You will take your equipment and you will. You will do installation also and create. Create a line. That is what you’re doing in this segment. Yes. Yes.
Nageswara Rao Kandula
Create a line up to trial.
Unidentified Participant
Okay. Okay. And but we don’t do this with third party equipment. This is done only with our equipment.
Nageswara Rao Kandula
90% our equipment. Maybe we will.
Unidentified Participant
Okay. Okay. And and so this this quarter it seems like then we did installation for some large client and that is why that revenue is 25%. Whenever there is an installation at client side the revenue will be higher. That is the correct understanding.
Nageswara Rao Kandula
Once the customer is purchasing equipment that means they are going to install, they are going to not keep that they are going to install equipment.
Unidentified Participant
Okay. Our services we are extending, we are offering such solution.
Unidentified Participant
Okay. Okay. And then sir my last question is that one of the GLP semaglutide so CDMO side you have talked about but one of the GLP semaglutide is going generic. The patents will start expiring from January 26th in many markets and over next 3, 4 years we will see large API capacities coming up in India for semaglutide hopefully. So can you give some idea about say a client is doing 500 crore capex. How much will be reactors, how much will be filters? If you can give some idea about that. To understand the opportunity size from semaglutide generics.
Nageswara Rao Kandula
Already expanded. I know a lot of flakes are already expanded. They are ready to produce some of your picture simulated tactics.
Unidentified Participant
So you are saying some things is already done but what is the opportunity sir? One, one plant. I mean let’s say somebody some generic player says I want to do finder corrode API for semi voted. What is the opportunity in reactors in filter Is it 100 crore, 300 crore? What is the opportunity? Opportunity?
Nageswara Rao Kandula
We are supermarket sir. Everything is available. Today’s standard glass is supermarket for pharma and chemicals if they want to, whatever they want. We are manufacturing that producing including fermenters everything.
Unidentified Participant
Okay, okay. And the normal, normal sir, that ABC reactor you have listed those are only used in peptide synthesis or are you, are there some microwave peptide synthesizers needed? I mean do we, do we have products that can be used in synthesizing GLP or there are different products that clients need to import.
Nageswara Rao Kandula
Too much technical questions I can’t ask. This is all my client information I can’t disclose.
Unidentified Participant
Okay. Okay. Thank you. Thank you for answering my question.
Nageswara Rao Kandula
I can’t talk.
Unidentified Participant
Okay, okay.
Unidentified Participant
But you, you do supply some product. I mean you have products which can be used in these plants. At least that much you can confirm.
Nageswara Rao Kandula
We are, we are end to end solution provider. We are the top company in India now today that supermarket. I said that one single word.
Unidentified Participant
Okay. Okay sir, thank you for answering my questions. Yeah.
operator
Thank you. A reminder to all the participants you may press star in one to ask question. The next question is from the line of wench Jain an individual investor. Please go ahead.
Unidentified Participant
So just one small question. What would be your market share in glass lining equipment?
Nageswara Rao Kandula
30%.
Unidentified Participant
Sorry? 30%. Okay, sir. Thank you.
operator
Thank you. No further questions from the participants. I hand the conference over to the management for the closing comments. Over to you, sir. Yes, sir. Over to you for the closing comments.
Nageswara Rao Kandula
Thank you. Thank you for all.
operator
Thank you. On behalf of COINDIA Advisors. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Unidentified Participant
Thank you.
operator
Thank you. It.