Standard Glass Lining Technology Limited (NSE: SGLTL) Q4 2025 Earnings Call dated May. 23, 2025
Corporate Participants:
Nageswara Rao Kandula — Managing Director
Analysts:
Monali Jain — Analyst
Mudit Bhandari — Analyst
Prayan Sharma — Investor
Manish — Analyst
Garvita Jain — Analyst
Rishi Kothari — Analyst
Hemant Soni — Investor
Yash — Analyst
Romil Jain — Analyst
Satyam Badera — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Standard Glass Lining Technology Limited Earnings Conference Call hosted by Go India Advisors. [Operator Instructions]
I now hand the conference over to Ms. Monali Jain from Go India Advisors. Thank you and over to you, ma’am.
Monali Jain — Analyst
Thank you, Sagar. Good evening, everyone, and welcome to Q4 and FY ’25 earnings call of Standard Glass Lining Technology Limited. We have on the call Mr. Nageswara Rao Kandula, Managing Director; Mr. Ramakrishna Kandula, Executive Director; Mr. Venkata Mohan Rao Katragadda, Executive Director; and Mr. Anjaneyulu Pathuri, Chief Financial Officer.
We must remind you that a 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.
I will now request Mr. Kandula to take us through the financials and the business updates, subsequent to which we will open the floor for questions and answers. Thank you and over to you, sir.
Nageswara Rao Kandula — Managing Director
Good evening, everyone. Thank you, Monali. It is with immense pride and gratitude that I welcome you all to this landmark investor gathering. FY ’25 has been a truly defining year for Standard Glass Lining Technology Limited, a year where we not only crossed critical milestones but also set the stage for a bold and transformative future. This was our first full year as a listed entity, and I must begin by thanking all of you, our investors, customers, partners, and team members, for the trust you have placed on us. Your belief fuels our ambition and your support powers our execution, robust performance and strong fundamentals.
Let me start with our financial performance. We delivered strong results in FY ’25. Revenue growth 14% year-on-year, INR626 crores, a clear indicator of value expansion and more value-added product mix. EBITDA stood at INR120 crores, with a robust EBITDA margin of 19.1%, reflecting operational discipline and cost optimization. PAT increased to INR69 crores, maintaining a healthy PAT margin at 11.0% at a growth of 14.4% in PAT.
We are proud to say that we are now net debt-free, with a solid cash reserve of INR266 crores, underscoring the financial strength and sustainability of our business. Q4 FY ’25 in particular was a strong close to the year, with revenue INR171 crores, 20% growth quarter-on-quarter. EBITDA at INR28 crores, with 16.6% margin. PAT at INR16 crores, growth 4% quarter-on-quarter. Despite deferred export orders, we maintained the consistent double-digit growth, proof of our core of resilience, scalability, strategic growth and technological leadership.
FY ’25 was not just about numbers, it was about bold strategy and future readiness. We are thrilled to announce a 20-year global strategic partnership with the AGI Group and GL HAKKO Japan. Through this exclusive collaboration, Standard Glass became the first company outside Japan to manufacture Shell and tube glass-lining heat exchangers, a highly specialized and high-performance product.
We have exclusive global supply rights, excluding Japan, and initial production capacity of 200 units a month, going along in Q4 FY ’26. Already secured 150 advance domestic orders, a strong validation of demand and trust, tapping to an addressable market INR2,000 crores in India and $2 billion globally. This partnership is a game-changer, not just for us, but for the entire pharma and chemical heat exchanger industry. It places Standard Glass on a global technology map. Operational excellence, world-class infrastructure. In line with our growth strategies, we successfully commissioned Unit 5, a state-of-the-art, 100,000 square feet facility, and fully consolidated operations from Unit 2. This has enhanced productivity, improved cost efficiency and created a scalable manufacturing backbone for the future global footprint, trusted Indian engineering.
We are proud to share that our wholly-owned subsidiary, S2 Engineering, has entered into a long-term exclusive supply agreement with Gale Process Solutions LLC, USA. This gives a direct access to the international market for stainless steel, carbon steel, and nickel-alloy-based process equipment, further boosting our global credibility and revenue streams.
Looking ahead, the future is bright. FY ’25 is a milestone. FY ’26 will be a launchpad. With strategic partnerships, advanced product line, world-class infrastructure, and a healthy balance sheet, we are entering a transformational phase. We are expected to achieve 20% to 25% revenue growth, maintain the EBITDA margin at 18% to 20%, continue to launch new high-performance products, and expand deeper into regulated global markets. Our vision is clear to be a global benchmark in a glass line and high alloy equipment and metal equipment performance engineering solution.
Dear investors, this journey is not just ours. It is yours too. You have believed in us, and we are committed to rewarding your trust with performance, innovation, and integrity. Let me leave you with one last thought. We are not just building equipment, we are building India’s engineering legacy in a global canvas. Thank you all.
Questions and Answers:
Operator
[Operator Instructions] Our first question comes from the line of Mudit Bhandari from IIFL. Please go ahead.
Mudit Bhandari
Hi, sir. In terms of the glass-line equipment divisions, we have seen very good growth, both in terms of revenue and margin. So what are the end segments driving those, particularly within pharma and chemicals? Has there been any increased order booking or has there been any increased execution in terms of…
Nageswara Rao Kandula
Sir, your voice is very low, sir. Can you speak loudly?
Mudit Bhandari
Am I audible?
Nageswara Rao Kandula
Can you — question also, can you repeat?
Mudit Bhandari
Yes, am I audible now?
Nageswara Rao Kandula
Yes, loudly you can speak sir, please, kindly.
Mudit Bhandari
Yes, sure. Sir, in terms of glass lining division, we have seen a good execution particularly in terms of fourth quarter. So what are the end segments which have driven this particularly within the pharma? If there are any specific equipment or any specific sectors. And secondly, in terms of the new products that we have launched over the last four months. So any improvement, any demand side trajectory from that side would be helpful.
Nageswara Rao Kandula
The industry is still — pharma industry is still growing single digit, but we did double digit. All areas we covered. It’s not a particular one product, and we covered all areas and all products. Chemical is still a bit challenge, but we received some chemical areas of good orders from some clients, and that’s the reason this growth is now possible.
Mudit Bhandari
And sir, any indication of order booking, increased order booking, or any trajectory in terms of particularly glass lining?
Nageswara Rao Kandula
Coming year, almost all, or 80% we booked coming year, because our delivery is very, very faster delivery, that is our strength, very fast deliveries. So order booking, sir, we’re not, because of our deliveries and our equipment is very fast delivery. But a good, very good order book we have. And also — and pipeline discussions also very positive. Next year, we are expecting very good growth.
Mudit Bhandari
Got it, sir. And in terms of new products like glass-lined heat exchangers and others that you were talking about, so any update in terms of those, in terms of number of orders or in terms of increased customer interaction?
Nageswara Rao Kandula
Yes. This is shell and tube heat exchangers. Last one year, we worked background with GL HAKKO and AGI, and now, we are going to, exclusive unit also, we are going to start in ’25 December in India. And also, at the same time we are expanding in Japan also, Japan facility, GL HAKKO facility also, capacity enhancing. So just we opened within 15 days we received almost 150 heat exchangers. Same, that encouragement, we are going to launch through GL HAKKO conductivity glass.
Now, whatever, worldwide, all glass-lining equipment manufacturers are producing, non-conductivity glass lining reactors. Coming two months, three months, we are discussing with some government institutes in the approval of the glass and certification of the glass. Once we are going, we hope we are going to complete within two months this glass certification. Once the certification is complete, we are going to launch this. This is not a, this glass, conductivity glass is going to again game-changer, because we are not a business point of view. This is going to increase the safety of the pharma and chemical equipment. So this is also we are in the pipeline. And one or two, three products, we are discussing with many global companies. That is also, chances are there this year. And also, we are discussing with tie ups and things are going on. Many, many things are encouraging and very positive.
Mudit Bhandari
Got it, sir. I fall back in queue. Thank you.
Nageswara Rao Kandula
Thank you.
Operator
[Operator Instructions] Our next question comes from the line of Prayan Sharma [Phonetic], an investor. Please go ahead.
Prayan Sharma
Hello? Am I audible sir?
Operator
Yes. Audible, sir, please…
Prayan Sharma
Good evening, sir. So, congratulations for good results.
Nageswara Rao Kandula
Thank you.
Prayan Sharma
Sir, I wanted to ask firstly that our initial guidance was that we were about to do like INR80 crores to INR82 crores of PAT in FY ’25 and INR650 crores of revenue. So, what has actually gone wrong in achieving those guidance? And also, can you share something about export share this year?
Nageswara Rao Kandula
Sir, the thing is, unfortunately, one consignment, we announced that also in the result. One consignment unable to export due to non-receipt of export confirmations. Due to that, there is slight impact in revenue and same time in PAT also. That is going to be covered in coming first quarter.
Prayan Sharma
Okay. So we will see the effects of those like sales and revenue, PAT in the Q1 of FY ’26.
Nageswara Rao Kandula
Yes.
Prayan Sharma
Okay. And sir, what kind of response we have got from the new products like glass lined shell and tube exchangers and conductive glasses? As per the announcement from the company, production would be started from — production should start from Q4 FY ’26, right? So, what kind of revenues will be able to achieve from operating them at full capacity, like new products, 200 [Phonetic] per month or so?
Nageswara Rao Kandula
Just we opened announcement, shell and tube exchangers order booking one month back. And immediately within month, we received 150 [Phonetic] numbers. But unfortunately, Japanese plant don’t have any capacity to produce. They are producing only monthly 2020 [Phonetic] numbers. And now we need to expand that Japan facility also. So we are expecting that facility expansion going to complete in Calendar year ’25 December. January onwards, we are planning to produce 200 heat exchangers per month. We are planning. And same time, Indian facility also we are — assembly center. This is almost 80% to 85% manufacturing going to complete in Japan. And we balance 15% we are going to assembly in India, manufacturing going to India. That is we are building in exclusivity one more unit for this heat exchangers, and we are at 150 [Phonetic] number. Now today, we are booking heat exchangers 24 weeks, 28 weeks delivery period based on. Because of already we are complete coming nine months, we fully booked for heat exchanger business. We hope that particularly glass lining business, heat exchanger going to add at least 30% to 40% growth.
Prayan Sharma
Okay. So — and sir, how about the reactors, sir, glass line reactors?
Nageswara Rao Kandula
Glass lining is good. We are doing good. We launched it recently without gas jet reactors. That is smart seal we patented. And without C-clamp reactors, we launched it. No one have this type. And conductivity of the glass also coming in 2 months. Already trials are completed. And some clients are using. But we are approaching some institutes, Indian certification of the conductivity glass authentication. Once that certification complete, we are coming 2 months, we are going to launch this product also. Based on that, this is going to big game changer, sir. Because of many plants, many agents happening due to static electricity. Once this reactor enter and plant going to fully safety, customer going to full benefit. So, this is glass lining reactor. So, conductivity glass, particularly I am talking about. Conductivity glass reactor is going to big game changer. And also, we are launching with reasonable price. Already we are discussing with Japanese partner. And lot of — after 2 years, they agreed to supply reasonable price with conductivity glass. So, we are bringing with reasonable price with higher end product.
Prayan Sharma
Okay, sir. One of the last questions from my side. Are there any potential products coming from Standard Glass, linked with semiconductor industry? Because glasses, reactive glasses, conductive glasses, I think they have some applications in semiconductor industry also. So, are we planning or do we have something in pipeline?
Nageswara Rao Kandula
Yes. Here, we are — semiconductor industry requires high-purity chemicals, that is it, and leaching levels. Now, whatever pharma companies are using, glass leveling, leaching level is, PPM level. And conductivity glass lining, conductivity glass chemicals required PPB, PPT, low leaching, high corrosion-resistant glass is required. That glass also, we are going to launch. Already we are discussing with one client, going to start this electromagnetic chemicals. That pilot plant, they are going to start. We already submitted our proposal also. This glass, this MIZ, we are calling low leaching, high conductive, high corrosive glass, we are launching coming months. And also…
Prayan Sharma
Yes.
Nageswara Rao Kandula
Now, we are only — we are in API, chemicals and…
Prayan Sharma
Nuclear.
Nageswara Rao Kandula
Chemicals area only, we are doing. Now, coming months, I am going to — good news, Standard Glass going to enter formulation equipment and injectables area we are also looking for opportunities. Already we have started discussions. And we will — coming months, we will announce good news.
Prayan Sharma
Sir, one last question from my side that what exports sir can we expect in FY ’26?
Nageswara Rao Kandula
This is — today, but today, almost all, one minute. Very good, very good growth, sir. I can — today, we have almost all, our coming year revenue 15% going to participate in export. And maybe, now, today projections are showing 15%, maybe more.
Prayan Sharma
If FY ’25 is 15%, then FY ’26 would be more. Am I getting…
Nageswara Rao Kandula
No, FY ’25 is less. One consignment stop, sir. I have not calculated. I want — I need to take details. But FY ’26 I am talking about. Now, as per order booking, this may be 15%, now, today. And maybe more going to increase FY ’26 delivery.
Prayan Sharma
Thank you so much, sir. Thank you so much for answering my questions. That’s all from my side.
Operator
Thank you. Our next question comes from the line of Manish [Phonetic] from B&K Securities. Please go ahead.
Manish
Thanks for the opportunity, sir. I have just one question. So, like, sir, how are you planning to build a distribution of the service capabilities in the international market? Especially like the outside India and Japan, where you have the exclusive supply rights for a new heat exchanger technology?
Nageswara Rao Kandula
Sir, already we have signed with IPP USA. They have worldwide service centers. They are going to manage our products. That’s the reason we exclusively tie up with IPP. And Singapore, Thailand, Malaysia, we signed with Biocon Solutions. They already, they are in the field. They have full service setups and storage facilities.
Manish
Okay, that’s helpful, sir. Thank you so much.
Nageswara Rao Kandula
Thank you.
Operator
[Operator Instructions] Our next question comes from the line of Garvita from Seven Islands PMS. Please go ahead.
Garvita Jain
Hello?
Operator
Yes, madam, please.
Garvita Jain
Yes. So my first question is if you could elaborate a little bit more on the glass-lined shell and tube heat exchangers which we are about to start production for?
Nageswara Rao Kandula
Madam, say again, madam. Please, question. Repeat the question, madam.
Garvita Jain
Sir, can you please elaborate a little bit more upon glass-lined heat exchangers?
Nageswara Rao Kandula
Okay. Glass-lined shell and tube heat exchanger is first line. Japanese company GL HAKKO invented and they are manufacturing for last 15 years. But they don’t want to disclose to technology or they don’t want to sell outside. Then we approached and we convinced their management and later we got 20 years license. We are going to assemble in India. We are going to sell in India. This is a unique product. Because now our pharma, chemical companies are using graphite heat exchangers. Graphite heat exchangers always release the particles and also high alloy equipment, sometimes hydrochloric acid, whenever 50 degrees above, high alloy equipment will get damaged. Industry is facing a lot of challenges, black particles, mechanical failures. And this is shell and tube heat exchanger is going to be a game changer for, particularly the corrosive area heat exchangers. This is, we have launched, customers are very happy. Just within 15 days we got 150 numbers order. Now we stopped order bookings also. We are telling to clients, if you want a heat exchanger, we will supply after 24 weeks. That is demand. We are announcing the addressable market INR2 trillion crores in India and globally $2 billion market globally. And the coming existing reactor, if you calculate the, almost all India running glass-fibre reactors, almost above 1 lakh reactors are current running, that all reactors require this heat exchanger replacement. Market is huge. But we announced only addressable market, current market. Whatever we got, 150 [Phonetic] numbers, that is all existing reactors, they want to replace the heat exchangers.
Garvita Jain
And so there’s 150 like 200 units of capacity which we have Is the annual capacity or monthly capacity
Nageswara Rao Kandula
Present. We are going to start January 2727 hours. 200 numbers.
Garvita Jain
Once the expansion is ready, we’ll have a capacity of 200 units, right?
Nageswara Rao Kandula
Yes, ma’ am.
Garvita Jain
And is that the annual manufacturing capacity or the monthly capacity? I’m asking sir.
Nageswara Rao Kandula
Monthly madam. This is 280 XM. It is monthly just startup and based on requirement we can increase the capacity. That is our plan. GL appointments standard plus plan.
Garvita Jain
So for the current order which we have for 150 units that will be delivered within one month after the expansion, right?
Nageswara Rao Kandula
No madam, this 150 we are going to deliver in coming four months we are importing this retailers. We are importing from Japan and we are delivering now.
Garvita Jain
Okay. So if I’m reading it right we are importing them and we are assembling them here. We are not manufacturing here in India, right?
Nageswara Rao Kandula
Yes, ma’ am.
Garvita Jain
Okay. And so one more question. If you could tell me how much of the impact we can see on the revenue from this tie up with Japan company And with the new product which we are coming with
Nageswara Rao Kandula
This challenge exchanger going to increase our adding to the particular glass line division. I’m not talking about the total revenue glass line division. We are expecting 30 40% revenue from particularly shallow cubic center.
Garvita Jain
Okay. Glass line contribution will increase by 30 to 40%. Right? One more question I have sir. If I can just quiz in how much of the contribution do we have from non pharmaceutical business segments?
Nageswara Rao Kandula
No madam, our major business is 85% coming from pharma. 15% only aggregators. That is also now focusing our chemicals and agrochemicals area. We are going to increase our business.
Garvita Jain
I’m sorry sir, if you could repeat. 15% share is coming from
Nageswara Rao Kandula
Chemicals, madam. Chemical and agrochemicals.
Garvita Jain
Chemical. All right. And can you name a few clients which we have from chemical and agribusiness?
Nageswara Rao Kandula
I can’t disclose my client list, madam. Please don’t mind.
Garvita Jain
Okay, not an issue, sir. Thank you so much. That’s all.
Nageswara Rao Kandula
Thank you.
Operator
[Operator Instructions] The next question comes from the line of Rishi Kothari from Eitware investments. Please go ahead.
Rishi Kothari
Yeah. Thank you so much for the opportunity. I had just one question to ask. That is. Hello.
Nageswara Rao Kandula
Yeah. Hi sir. Tell me. Tell me sir.
Rishi Kothari
So given that we now are net debt free with cash balance of around 260 odd crores. How do we plan to deploy that capital? Are we looking at Capex R and D investments or do we want to return that money to the shield to buy to the source? How exactly are we looking at?
Nageswara Rao Kandula
Already we announced we have land 36 acres from Telangana government. And we are going to build 5 and a half lakh square feet. One plant, one room. Current our plant capacity is 60 mm thick. 60 ton crane capacity plant we have. And we are going to build 100mm thickness and 100 ton crane capacity plant. We are. We are going to construction. We are expecting 18 to 24 months. We are going to complete this project. Once this project is complete we are going to enter in the petrochemicals, heavy engineering divisions. This is. We are budgeted almost 130 crores. We are going to invest on this facility.
Rishi Kothari
All would be investment in terms of capex and nothing in terms of other deployment.
Nageswara Rao Kandula
But present we are focusing on cap. We are going to do CAPEX 130crores on this facility. Any good opportunities, any future acquisition opportunities we are all time open.
Rishi Kothari
Okay. Yeah. Pretty clear. Okay. Thank you. Thank you so much for talking. I’ll turn back to Q.
Nageswara Rao Kandula
Thank you.
Operator
Thank you again. If you wish to register for a question please press star then one. Our next question comes from the line of Hemant Soni an investor. Please go ahead.
Hemant Soni
So thank you for providing me the opportunity. So I had couple of questions. First I wanted to ask is we had earlier guided that we wanted to sell around SIR50 to 100 hit exchanges in Q1 of FY26. And gradually it will ramp up to 200 hit exchanges by Q3 of the current financial year. That is FY26. So I mean I. I’m new to the company and I think that the production will take some time for it exchanges. So are we going to import it and assemble it here? And if that is so then when will the production of the heat exchange start?
Nageswara Rao Kandula
Sir, once again I will explain just last call also explained one month back we. started booking this heat exchangers we booked within 15 days. We got 150 heat exchanges numbers. This all 150 heat exchangers we are going to complete within 16 to 20 weeks deliveries. We are importing from Japan and we are. We are some additional parts. We are manufacturing and we are doing future. We are talking about the decent. January 27th onwards last quarter we are going to Planning to produce 200 heat exchanges per month. But slowly this is going to 50, 60 or 100 numbers like that the next fourth quarter is going to revenue growth is maybe good due to the heat exchanger. But whatever we have 150 numbers are. We are. We are going to complete within three to four months.
Hemant Soni
So sir, I mean then the fourth quarter will start the production of heat and stages
Nageswara Rao Kandula
Production means that is also partial production, full production, 80% still 80% production going to happen in Japan.
Hemant Soni
Okay. Okay. Okay. And sir, the greenfield project which we were talking about. The 9 lakh square feet that says we are planning.
Nageswara Rao Kandula
Sir, 5, 5 and up, 9 and up.
Hemant Soni
And the phase one consists of 3 lakh square feet, right?
Nageswara Rao Kandula
No, sir, total we are. We are based on industry demand and international clients approach and everything based on that anchorage would be. Management is decided to construct 5ft at a time.
Hemant Soni
When will it go live? Sir?
Nageswara Rao Kandula
Sorry?
Hemant Soni
When will it go live?
Nageswara Rao Kandula
We are. We are. We are expecting this project to complete within 18 to 24 months.
Hemant Soni
18 to 24 months. Okay. Sir, answer my one more question regarding the revenue guidance. Ms. Was has already been answered. We just wanted to ask you one thing. That export consignment has been referred to Q1, right? So can we expect some better numbers in Q1?
Nageswara Rao Kandula
Yes, definitely.
Hemant Soni
So there should be a Q and Q growth, right?
Nageswara Rao Kandula
Yes, yes. Q1 is going good.
Hemant Soni
And sir, one more thing is. We have guided for 20 to 25% revenue growth in F26, correct?
Nageswara Rao Kandula
Yes, possibilities
Hemant Soni
22, 25% revenue growth. And sir, what was the EBITDA margin?
Nageswara Rao Kandula
Good, sir. Compared to this year also next year coming 10 years is very very good. Company growth is there, sir.
Hemant Soni
Okay, sir. Okay. Okay, sir. Thank you. Thank you.
Nageswara Rao Kandula
Thank you.
Operator
[Operator Instructions] Your next question comes from the line of Yash from BNP Pariba. Please go ahead.
Yash
Hi. Thank you for providing the opportunity. I just had one question regarding the like how exactly are you planning to build the distribution and service capabilities across globe? Like in international markets. Specifically outside India or Japan. Like where do we have exclusive supply rights for the new heat exchanger technology? Like if you could throw some light on that.
Nageswara Rao Kandula
Japan Already we have investor and partner GL Airco going to handle our products. That is directly. They are already networked. They are the world’s largest all glass equipment manufacturer and a leading glass equipment manufacturing Japan. So they have own sales network and everything. India we have own sales network. Network network. We know from and particularly US and Europe. IPP International Process Plant New Jersey, USA they have all the 1,056,000 clients. And Europe and the USA and Romania they have already service center and start points. They are going to manage our business there. There is sole seller for our products. We are already signed for them for agreement. They are going to manage our business. And the second is biocon Solutions recently designed. They are going to manage Indonesia, Thailand and Singapore and Malaysia that regions. They are already they have service setups and sales setups. They are going to handle these products. So almost all 80% we cover with IPP and Biocon solutions and GL Haco and rest of 20% like a middle east and other areas. We are directly. We are going to handle that business.
Yash
Okay, thanks.
Nageswara Rao Kandula
Thank you sir.
Operator
Thank you. Next question comes from the line of from IFL Capital. Please go ahead.
Mudit Bhandari
Hi sir. In terms of your EBIT margin. So glass line shows strong improvement. If you see from third quarter to fourth quarter and metal equipment divisions saw some decline around 17% in third quarter to 11% in fourth quarter. So any particular reason or one of
Nageswara Rao Kandula
Product mix? Product mix. Due to product mix this is happening. But only you can look into the year on year growth.
Mudit Bhandari
Got it sir. So within metal forms metal equipment division, which are our products which are of lower margin. Okay then. But this is a strong diverse from 17% to 11% in metal equipment division only because of product mix. Please. In third quarter 17% EBIT margin and in fourth quarter 1311 margin is only because of product mix. Right?
Nageswara Rao Kandula
Yes sir. Yes,
Mudit Bhandari
Got it. And what are our CapEx plan for our the expansion project? So in FY26 and FY27 the total amount that we will be spending including the maintenance and sustenance capex
Nageswara Rao Kandula
Existing facilities we are going to invest in almost all 40 crores on existing facility. Whatever we say in IPO IPO funds and new project we have new capex we are going to do 130 crores with 36 acres land 500 plus square feet we are going to build that is one big expansion.
Mudit Bhandari
This 130 will be done in current year FY26.
Nageswara Rao Kandula
We are expecting 18 to 24 months. That project is going to come is complete. Greenfield. Greenfield project.
Mudit Bhandari
Okay. Okay, got it sir. Thank you so much.
Operator
Thank you. Our next question comes from the line of Romul Jain from Electrum ems. Please go ahead.
Romil Jain
Hi, am I audible? Sir, yes sir please. Thanks for the opportunity. So firstly just to understand on this glass line heat exchanger business. So as you mentioned you are going to. So this is an outsourcing contract. Basically outsourcing of heat exchanger manufacturing from Japanese guys, right? AGI. So you will actually manufacture for them and sell it to them only, right? If I understand that correctly
Nageswara Rao Kandula
They are innovator. We got license are going to sell worldwide except Japan. Japan directly they will sell.
Romil Jain
Okay.
Nageswara Rao Kandula
India and rest of world.
Romil Jain
India and rest of the world you will sell with their technology with their license. So are we going to pay any royalty or any one time fee or anything like that? If you can clarify to the Japanese company
Nageswara Rao Kandula
Domestic loyalty we are going to pay 4% and global royalty we are going to play 7%.
Romil Jain
Okay. Okay, got it. And sir, when? So till 2027 January we will largely import from them and sell it. But later on when we manufacture on our own, will the margins start moving upwards in this?
Nageswara Rao Kandula
This is going to be one of good point.
Romil Jain
Okay. And sir you mentioned that you will. You will have a 200 units per month capacity. So. But. So let’s. Let’s assume that in A by 28 you will be fully utilized. So what is the game plan after that? Where can this capacity go?
Nageswara Rao Kandula
Capacity? No baseline demand. We can expand. We are planning to produce per month 600700 detectors. Also that plant. We are building like that future. Okay. We are going to see the market response. Market estimation. We are going to start first phase 200 detect changes to the 27th of January onwards.
Romil Jain
And the application for this will be largely pharma and chemicals. Is that right?
Nageswara Rao Kandula
Chemical petrochemicals.
Romil Jain
Okay. Okay. And lastly sir, just on this conductivity glass when it is going to start in terms of production and all. And can you just help us with what kind of revenues will this. You know contribute and what kind of margin implications it will have.
Nageswara Rao Kandula
Conductivity glass going to big claim game changer. Because of whatever current producing. Not India global players also they all are producing non conductivity gas line. And we are already our Japanese company sent this staff last three, four months. We trained our employees and the production staff. We have successfully demonstrated and completed. Now we are approaching proper institutes approved authentication certificate. Once that we got certification coming. We are hope we will get within two, three, two to three months. Once we got this certificate we will officially eat a connectivity glass lining going to be launching that how much we are growing we need to see. Sir. We are also launching with reasonable price. Because we don’t want to put higher price and customer can’t bear. Also my intention is. I. My. My business should be. This is. We are doing B2 business. B2B whatever we are selling that customer also going to get benefit. Once we sell started selling this connectivity glass line reactors customer plans also going to very same. And they can grow customer growth. We grow that and the revenue profitability. How much growth we need to see how what is the customer response. How much they are going to pay that we need to analysis. We need to wait something sometime.
Romil Jain
So we as we can see FY27 getting some revenues out of this.
Nageswara Rao Kandula
Yes. Our target is all reactors we are going to sell. That is that that we are planning. Then that of that customer is customer also going to act out because of now what happened. Customer is using tip Tantalon tip is the static discharge. But that is not sufficient. But government now instructed every reactor require because of earlier they don’t no one have conductivity glass mining. But once the conductivity glass launched government if you expect to use conductivity glass mining reactors then that is going to be a big game changer for gas any industry.
Romil Jain
Okay sir. Thank you so much. I’ll get back in the queue and all the best.
Nageswara Rao Kandula
Thank you sir. Thank you very much.
Operator
Thank you. Our next question comes from the line of Satyam from profit mark securities. Please go ahead.
Satyam Badera
Thank you for the opportunity. I had a couple of questions. Maybe you answered earlier. I joined bit late. As you said you expect a 20 to 25% revenue growth in FY26. What are the main reasons for the expected growth? And how much could this be affected by changes in economy or the industry?
Nageswara Rao Kandula
Now sir last 34 months if you see this Pharma also started. All pharma companies announced CAPEX and 23 my chemical companies also announced Capex. Enquiry flow is increased and order booking also increasing. And also same time we are launching Shell and two exchangers and metal division also we are launching two three products or two three variety of parts. With the solid solid growth. Chances are there coming years based on this all mixing.
Satyam Badera
Okay. And my second question is your EBITDA margins are strong at 19.1% and you are aiming to keep it between 18 to 20%. What steps are you taking to keep your margin strong while starting a new production and expanding your operations?
Nageswara Rao Kandula
This is a new production sir. We are cost saving and shalom to be tech change are launching and export. We are going to increasing this. All things going to help our EBITDA and pac.
Satyam Badera
Okay. Thank you.
Operator
Thank you. Our next question comes from the line of Heman Soni an investor. Please go ahead.
Hemant Soni
Thank you for providing me the opportunity again. I just wanted to ask one more thing like what will be the asset turned for 130 crore capex.
Nageswara Rao Kandula
130 crores. That is that once that expense is completed now gradualize is 130 crores. 130 crores. Today we are doing 6 to 7 times. And now we are investing another 40 crores on IPO funds on existing facilities. And that maybe 130 crores after completion we can reach easily total 260 crores. Grass blood. We can reach easily 7, 8, 9 times.
Hemant Soni
So around thousand crore something right?
Nageswara Rao Kandula
Of increment More sir More
Hemant Soni
More more around 1200 cr of incremental revenue. Correct.
Nageswara Rao Kandula
Ah. That is. I’m saying it up to 3000 crores we can reach this after this cap ex.
Hemant Soni
Up to 3,000 cr.
Nageswara Rao Kandula
Yes
Hemant Soni
Okay. And sir if I understood it correctly in the fourth quarter of the current financial year we will start a partial production of heat exchangers and in January 2027 we start a full production.
Nageswara Rao Kandula
Full production. April announced full production
Hemant Soni
And such that 5.5 lakh square feet greenfield project. The products will be heat exchanger and conductivity class.
Nageswara Rao Kandula
No sir that is. That is entirely different. This is immediately we are launching them Coming two months we are going to launch connectivity glass. Connectivity glass is only existing glass. We are replacing with the connectivity glass challenge two bit exchanger. We are building the one new special our separate unit
Hemant Soni
So that will be built under 5.5 lakh square feet or it will be
Nageswara Rao Kandula
Suffered project. That. That project we are building heavy engineering and petrochemicals area island gas downstream upstream. We are planning to manufacturing and also existing parts also any capacity required we can add that products also there. That is a multi multi plan that 5 1/2 square feet purpose we are building
Hemant Soni
So that. That excludes the heat exchangers.
Nageswara Rao Kandula
Heat exchanger is separate sir please Heat exchanger unity separate that we are going to finish within 34 months. That unit we are going to complete because of December onwards. Existing campus. Existing campus means our glass learning unit first to starting unit is there. That unit we are converting to SH glass
Hemant Soni
So we’ll be doing around 300,000 crores of capex. So sorry 3,000 cr of revenue from 130 crore capex. So we are currently
Nageswara Rao Kandula
130 and 140 total 170200 approximately we are going to invest coming months
Hemant Soni
170 floors will give a revenue of 3,000 crore on a consult basis right? Existing 130 is there NASA?
Nageswara Rao Kandula
Existing 130. The future is 1170 to 200 post we are going to invest on that completion we can happily we can reach 3,000 post revenue. That is my.
Hemant Soni
Okay. Okay sir over here. Thank you sir.
Operator
Thank you. Ladies and gentlemen, as there are no further questions I would now like to hand the conference over to the management for closing comments. Sir, please go ahead. So can you hear us? [Operator Closing Remrks]
Nageswara Rao Kandula
Thank you all. Thank you for participating. And good call.