TD Power Systems Limited (NSE: TDPOWERSYS) Q3 2025 Earnings Call dated Feb. 07, 2025
Corporate Participants:
Nikhil Kumar — Managing Director & Executive Director
Vinay Hegde — Head of Sales & Marketing
Analysts:
Unidentified Participant
Ganeshram Rajagopalan — Analyst
Anand Trivedi — Analyst
Piyush Sevaldasani — Analyst
Kunal Pawaskar — Analyst
Mihir Manohar — Analyst
Himanshu Upadhyay — Analyst
Rohit Balakrishnan — Analyst
Ajit Sethi — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the TD Power Systems Limited Q3 FY ’25 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on-date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
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 and zero on the touchstone phone. I now hand the conference over to Mr Nikhil Kumar, Managing Director for TD Power Systems Limited. Thank you, and over to you, sir.
Nikhil Kumar — Managing Director & Executive Director
Thank you thank you, everybody. Good afternoon. Thank you once again for joining us on our earnings call. I trust all of you would have received our results and investor presentation. Moving on to the financial performance for the nine months ended 31st December 2024. Consolidated, our total income on consol was $9.43 billion versus $7.48 billion in the same-period in the previous year, an increase of 26%. Profit-after-tax and other comprehensive income for the first-half of the year is $1.21 billion versus the profit of billion, an increase of 37%. We continue to maintain a strong cash position of $2 billion standalone.
Our total income on a standalone basis for nine months was $9.02 billion versus billion over the same-period in the previous year, an increase of 23%. EBITDA for nine months is 17.45%, including other income exclusive, excluding treasury income. Profit-after-tax and comprehensive income for nine months is $1.09 billion versus profit of $0.88 billion in the in the same-period previous year, an increase of 24%. The order book of manufacturing segment is $13.09 billion, which consists of 9.6 billion manufacturing business and 3.33 billion railway business as an aftermarket is 0.13 billion and 0.03 billion is Turkey business. Export and deemed export excluding railways orders is 66%. The order inflow for the quarter is 4.07 INR07 billion, INR highest-ever since the inception of the company.
Order inflow has increased 52% quarter-to-quarter and 40% on a nine-month and Nine-Month comparison basis. 71% of our quarterly order inflows exports, while 39% is domestic. We have seen some traction in the domestic order inflow during the quarter. Domestic order inflow for the last 3/4 has been percentage-wise, 28%, 27%, 32%, INR81 crores, INR96 crores and INR130 crores respectively. Order book, market situation and guidance. The order inflow continues to be very, very strong from export in our generator and motor business compared to the previous year. The order inflow is still mainly dominated by exports, but over the past three months, also seeing the domestic order inflow increase. So the increasing trend of domestic order inflows also part of Q4, which augurs well for steady growth in the domestic market.
The domestic market, order inflow in absolute numbers has been increasing gradually as mentioned before, 0.81 billion in Q1, 0.96 in Q2 and 1.36 billion in Q3. On a nine months and nine-month basis, the, the order inflow of domestic is still down 10% compared to last year, showing the overall situation is relatively weaker. However, one should look at the increasing trend we see the increase in trend continuing in Q4, so we are confident of domestic demand holding up for FY ’26, although TDPS for TDPS is exports that is the main backbone of the business. In international market, a Nine-Month to nine-month basis, the export order inflow has increased by billion from 4.01 billion to INR7.52 billion, which is an 88% growth.
We have extremely strong order growth in the order book and export business from gas turbines, gas engines and motors. Exports and lead exports inflow is 75% of the total order. This shows the overall strength of the company in all geographies over the world, presence in multiple sectors like gas, hydro, traction, clear energy like biomass, heat recovery, etc.
Most importantly, we’re cutting deeper into the market and winning greater market-share due to greater acceptance of our products. The gas engine and gas turbine business continues to be driven by demand from CHP with combined heat and power plants, AI, server farms and data centers, grid stabilization units and Ukraine demand is extremely high and future forecasts are extremely high for the next 18 to 24 months. This is important. We have received renew commitments from all our customers that the investments for AI in the next 18 to 24 months are intact and there will be no changes in the trajectory of power capacity addition in the US.
In fact, with the hold-on all wind projects in the US, more capacity addition is forecast to come from gas turbines, which will be positive for TDPS. We’re working around-the-clock at the moment. And once the new plant comes in, we will have some relief on capacity. We have received orders in the Turkish market which recently in Q4 for 0.46 billion for execution in FY ’26. This is the first large order after a long-time. There are more inquiries in the pipeline and we can expect steady business to come from Turkey in quarters to come.
All orders from Turkey are denominated in euros, so we stay immune to-high inflation from the local market. Motors, we have given some highlights of our motor orders in the investor presentation. These examples show that we are continuing to make inroads in the market with references in establishing our brand-name and credentials. These references will trigger larger orders in the future. We are at the foundational stage and increasing our footprint in India and worldwide. The motor business growth is going as per plan.
Once again, we would like to mention the approximately 0.5 billion order we got from Nuclear Power Corporation in Q4, which is a big breakthrough order for TDPS. In general, the export business is the key driver for our growth for generators and motors with demand coming in from multiple markets and multiple verticals. In particular, the gas segment, both gas turbines and gas engines are exceptionally high and will continue to be so for the next six to eight quarters. The future growth will be enhanced by traction motors, motors and other new products as and when they are introduced.
Guidance for this year, FY ’25 will continue to be $12.75 billion and initial guidance for FY ’26 will be $15 billion with upside potential based on the current order inflow rates. In conclusion, we are poised another round of growth, we see exciting opportunities in front of us and we’re gearing up to meet the demand with our new and existing factories. We have just a small fraction of the world market-share and our growth potential is huge. On-top of this, we are still bullish in the domestic market and we strongly believe that there will be growth coming after a shortfall. India is a severely power deficit country and the macro situation on power has not changed. All large industries need captive power plants.
This brings me to the end of my initial remarks. I’ll be now happy to address all the questions that you may have. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles the first question is from the line of Bobby Jay from Falcon. Please go-ahead.
Unidentified Participant
Yeah, hello. I wanted to know what would be the impact of the high storage.
Operator
You are not audible, sir.
Unidentified Participant
Hello, can you hear me?
Operator
Can you speak a bit louder maybe?
Unidentified Participant
Yeah.
Nikhil Kumar
Okay, I can hear you.
Unidentified Participant
Yeah, my question is, what will would be the impact of high storage battery systems on your generators because right now, some of your generators are used as backup supply, but if batteries do this job, then what would the impact be?
Nikhil Kumar
Batteries are — batteries are forming a part of the overall power installation but the overall demand for power is still so high that batteries are still a very, very small percentage of this mix. Batteries also tend to be more expensive. So we don’t see the battery — the battery business at least for the next six to eight quarters impacting our business at all. Okay, I understand. Thank you. And just to continue that batteries can — batteries can only store power and you know, deliver power for short periods of time as backup, whereas if you want to have backup power for longer periods of time or you anticipate that there could be a peaking demand and things like that the batteries is not the ideal solution. You need to have a regular power generation from gas. And so there are increasing — increasing number of critical applications where you cannot risk having limited capacity from a battery, you need to have the backup from gas. And so we are seeing that the demand for our products is not really impacted at all from this battery solution. Battery is just the battery to some extent of the market is going over there, but it’s not coming in for the large-scale power generation that we are involved in.
Operator
Thank you. Ladies and gentlemen, to ask a question, you may press star and one. The next question is from the line of Ganesh Ram from Unifi Capital. Please go-ahead.
Ganeshram Rajagopalan
Congratulations on your performance. Great set of results. I have two questions, please. The first one is broadly on the guidance that you provided to us, right? Typically, Q4 tends to be a stronger quarter than Q3. So if I extrapolate it, then I think that INR1,275 crore number sort of you know, we can easily achieve it or we can slightly exceed that. But is there something that I’m missing? That’s the first part.
And the same on the guidance that you’ve given for FY ’26, right? So if my understanding is right, the new capacity can churn about INR400 crores in revenue. So in — if it comes in second-half next year, that’s 200 just from the new facility and about INR1,300 from the existing facility. So basically, the execution needs to be on spot, so it’s able to run at 100% capacity from the day it’s commissioned or you have to build-in inventory, right? So which — which way — how are you going to basically ensure that we’ll be able to achieve the guidance that you sort of set-out?
Nikhil Kumar
Yeah. Thanks a lot,. Thanks. Good point. So we hold-on to this year’s guidance of 12 75. We have — we’re running flat-out, but we have certain limitations on how much more we can produce. But we’re holding on to the guidance for this year. For next year, the INR15 billion is an initial guidance for and we are looking at the way things are going, we’re definitely going to do much, much better than that. And we will upgrade the guidance in the upcoming quarters. But looking at the way the order inflow is continuing to be, looking at the demand for the products, there is — it’s going to be a most likely scenario. So we will start commissioning our plant, new plant around middle — stage wise around middle of Q1 and then it will be fully in-line with Q2.
So we start seeing increased increases in our production in Q1. We’ll see increasing in our numbers. In Q1, we’ll see the further increases taking place in Q2. So execution is critical. We have to — we have to complete everything on-time. The orders are there, customers are demanding the products are going to be delivered on-time. So we are under pressure and we are working around-the-clock, not only in our factory right now, but also working around-the-clock to make sure the new plant will be commissioned on-time. So we have to make things happen.
Ganeshram Rajagopalan
Okay, sir. Maybe we’ll connect offline just with a few more details on that. And just broadly a second question, if you don’t mind, is the order book inflow, I read in the presentation, you mentioned the current inflow of about 400 per quarter would be sufficient for us to deliver on guidance, which I’m on the same page as you. What I’m trying to understand is, would I be right in saying that you continue to expect a larger part of this INR1,600 crores annualized would come from exports, some moderate growth from domestic. Then you have the railway, some portion of it running out, but I can see you won something in Germany, right? So how should we think about it as a whole? If you had to sort of mentally break-down the INR1,600 crores, where would you see that split be land actually?
Nikhil Kumar
Yeah. So right now, we are still — okay, let’s 400 is the current order inflow. So if you analyze it, yes, INR1,600. But let’s say we’re talking about INR1,500, which is the current guidance. From that, while current guidance, the railway business will still be only INR100 crore INR120 crores, which is the current order or current order for the e-local project in India. So the export jobs will — although they will start by Q3 FY ’26, they will start. I mean, the volume production will start. We’ll not see significant numbers coming in from this business in the next financial year. So we are not factoring that in. There will be — we have to start, but it will not be in-full swing.
The full swing will start early in FY ’26, both for the German market as well as for the US market so those numbers will then go into ’26. So the — the product — the other products that means the motor and generator business will then have to deliver something like INR1,400 crores to achieve the — to achieve the initial guidance of INR1,500. And looking at the current inflow rate of INR400 crores per quarter, which is excluding traction, I think we are — you’re right, we — and I also said we will definitely upgrade the guidance. All right. Thank you. I’ll come back-in the queue for more questions. We have a sufficient. We have a lot of margins we have a lot that we — we don’t have a problem. We don’t want to have a problem with numbers. We have to get our plant in-place and start producing more.
Ganeshram Rajagopalan
Understood. Understood. Thank you. I’ll come back-in the queue for questions.
Operator
Thank you. Participants who wishes to ask a question may press star and one. Next question is from the line of Anand Trivedi from Capital. Please go-ahead.
Anand Trivedi
Yeah, hi, congrats on a good set of numbers. The first question I had is, are you all at all exposed to the US and if so, are these tariffs, do you expect them to impact you?
Nikhil Kumar
Or expos to the US will be something like 8% of our overall turnover. And the products that we are exporting to the US to our OE to the gas turbine manufacturers over there are have been — it’s a two-year qualification which is required for any other generative manufacturer to, let’s say, replace us in the event that duties do come in. We’ve been talking to our customers about this and right now, all waiting to see whether the Trump tariff will also apply to India or not, it may or may not, we don’t know. So there could be a — if there is a tariff coming in, then for the short-term, that will have to be passed on to the market. It will have to get passed on to the market.
In the longer-term, we will have to see where we can manufacture where the duties will not apply and — but essentially, our customers with us and we don’t expect the disruption of the business to take place. So they’re with us, okay. And they also cannot afford to requalify a new product. It takes a lot of time, they make a huge investment for it. So for the machines, for the turbines, which we are qualified for, for the moment, I think that the customer is going to run with us short-term, if they have to pay duties, they’ll pay duties, but medium-term, we will have to be with customer and TD still have to find solutions.
Anand Trivedi
Got it. You also mentioned that 70% of the order book is export and domestic has been relatively slow. Can you just talk about why that is the case given there’s so much opportunity for power in India?
Nikhil Kumar
The power, the demand for power in India is extremely high, but it depends on the investment climate. Everything depends on the investment climate, right? So if investments are taking place, then the power capacity addition will take place. Our business in India is relatively narrowly focused to the steam turbine business and is — in the steam turbine business is mainly for captive power plants for large industries. So it is — in that sense, it is dependent on investment. So if that investment slows down or whatever — for whatever reasons, then this business in India for us also will slow-down. So that is — but we are — but what I said is we are not — we’re not seeing this business is collapsed or something like that.
We’re just seeing the businesses tapering off from a higher-level of growth to a more moderate level of growth, but nevertheless, it is growing. And we’re seeing that in our order inflow quarter-on-quarter from Q1 to Q3, the absolute numbers have been increasing. So we do not — we’re not worried about the domestic market. We’re just factoring in the lower-growth level. And we believe that — I think that having a steady 8%, 10% growth level for a longer period of time is actually healthy for the market.
Anand Trivedi
Got it. And last question from my side, as the exports mix in your business grows, do you see margins also going up from the current 17% or you think margins are healthy where they are?
Nikhil Kumar
The margins — export business, of course, margins will be where they are. One of the things that we have to also — which we are, we are very heavily exposed to the euro. We have a lot of sales in euros. So currently, the euro is relatively weak against the dollar. It’s like at 1.03, 1.04, it was 1.1, 1.12 just six months ago. So although we have hedged currency forward the relative weakness of the euro does affect margins. So with the with the forward covers and everything, we are going to be in-line with whatever margin projections we have made. We have the third plant coming up. We have been already hiring for the third plant. So you will see that some of the costs associated with that are now already being booked by the company.
We have been hiring, we’ve been training people, we’ve been — so these also — some of the things I would have put a cap on the EBITDA margin. So I would say factoring something like 17.5% or taking to say between 17% and 18%, I think would be where we’re going to be for this financial year. Next financial year, of course, once we have — once things are running at full pace and we absorb all these costs and we’re going at full capacity, I think the margins will once again improve, but let’s talk about that towards the end of ’26 and ’27, but for now, I think 17.5% is a realistic margin.
Anand Trivedi
Thank you. Thank you.
Operator
Thank you. Participants who wishes to ask a question may press star and one. The next question is from the line of Piyush Selwad Sani from Alternates. Please go-ahead.
Piyush Sevaldasani
Yeah, hi, sir. Thank you for the opportunity and congrats for a great set of numbers. Sir, my first question is on the gross margins. They have slightly come off this quarter to, I think 33%. Can you help me understand is this because of the ForEx which you are mentioning?
Nikhil Kumar
No, I think there is — there are a number of reasons. There is a small shift in the gross contribution level. I feel that it is not possible to when you have a varying product mix and some quarters we may have more aftermarket business, some quarters a little bit less. So we have a quarter-on-quarter to be delivering exactly the same cross contribution is difficult. But overall, we look at our performance for over a six-month period or a 12-month period and there we have given the guidance for gross contribution. It will be what it is. So please quarter-on-quarter is due to these fluctuation in-product mix, currencies or et-cetera, et-cetera.
Piyush Sevaldasani
Sir, also we had talked about in the large con-call that we would be hiring a lot of junior level employees in the first-quarter, but ramp-up of the capacity will happen in 3rd-quarter. So would be a margin to be impacted for the next year? Anything if you can help us understand?
Nikhil Kumar
No, not as I said, I just — I just spoke to Anand and said that we will — we will — you can please expect something between 17% — 17% to 18% EBITDA margin 17.5% would be realistic to put in for next year considering all the costs that we’re going to have, considering the ramp-up, considering the product mix and everything. So should not be just on a quarter-on-quarter basis. I think looking at the first snapshot at the end of H1, we — would give a good idea. We do have top-line. We have — we have strong order inflows from all sides. We have big pending orders. We have top-line, so we have to execute. And with the top-line will come operating leverage and growth. So I am not at all worried at this point. We have to execute number-one, we have to deliver to our customers and we have put our plants in-place, get our quality right. So there’s a lot that we have on our plate right now and margins will — margins will follow.
Piyush Sevaldasani
Yeah, sure, sir. My last question is on the domestic order inflow. I think it has seen good recovery this quarter. If you can help me understand what are the sectors you think are driving the recovery? And what do you think about domestic for the next year?
Nikhil Kumar
I just said these sectors are steel cement, the normal steel particularly continues to be strong with lot of order ordering taking place in steel for waste-heat recovery, also for basic power generation. And 8%, 10% domestic growth — domestic market growth is what we have factored into the plan. If it accelerates, well and good, we’ll be happy.
Piyush Sevaldasani
Thank you, sir. Thank you.
Operator
Thank you. The next question is from the line of Rahil Shah, Individual Investor. Please go-ahead.
Unidentified Participant
Thanks for the opportunity and congratulations, sir, for the great set of numbers. Thanks. I have three questions. One, starting with for last past few quarters, we have been reporting a strong order inflows. Can we assume that the existing run-rate of this INR400 crores per quarter is the new base for the next four to six quarters?
Nikhil Kumar
We can — we can certainly say that would be the average new normal of the average order inflow for the next few quarters. In some quarters, we could have greater than 400 in some quarters it could be a little bit less because it because we are present in multiple sectors, multiple geographies, multiple products. We win some large orders and in those quarters, you would see a spike, yeah, it’s — it’s going to be the new normal, INR400 could be taken as being the new normal. We do expect this to be the average order booking considering, let’s say two, three — say three, four-quarter average.
Unidentified Participant
Understood, sir. Understood. Sir, my second question is around given the rate of the order flows that we have, it is very much possible that the upcoming third factory will get fully utilized by mid-FY ’27 level. Are we planning to add the fourth facility in FY ’27 itself and what will be the amount of capex involved if we don’t show.
Nikhil Kumar
No, we are not going to be putting a fourth facility. In fact, we have identified a huge potential for us to use our existing facilities in a more efficient way, using you know using Japanese methods like Kaizen and lean manufacturing a single piece flow, there’s a lot that we can do further automation because there’s a lot that we can do to get more out of these existing assets after we finish this investment this year or this calendar year. I personally believe that at least up to maybe 2,300 or so, we will not need a fourth plant. So any decisions which will be — which will be — which have to be taken will have to be taken only after ’28, which is quite a way from now. And after we put in this investment, the focus immediately is going to be on getting this investment up and running.
And parallelly, the plans are already going on and how do we improve throughput, how do we reduce cycle time, how do we reduce inventories, how do we become implement lean manufacturing, how do we increase automation and manufacturing excellence is going to be the theme on how to get — how do we get more from the existing assets. And that obviously will lead to a better EBITDA margins, operational leverage, better financial performance and that’s the direction they’re going to be taking after this investment is over. We’re not going to rush into the fourth plant until we completely flog these assets.
Unidentified Participant
Understood. My last question is, the company has been — has recently-announced few orders in traction motors. How big can the traction motor business become for TDPS in next three to four years? Can we expect the traction motor segment make a big inroad in the international market similar to what we have achieved in gas engine, turbines and hydro segment?
Nikhil Kumar
Short-term, yes, we have an upcoming order from the European market, we have an upcoming order from the — we have an order from the US market and we also supplying to CIS countries. So we would like to stabilize this production and the moment we — the moment we stabilize the production and we’re delivering high-quality, these businesses within these — with these customers itself will increase. So we have — we have a good scope to — even up to even talking about, let’s say, doubling this what we have — what we have projected to the market.
We have that scope potentially if we do a good job. So the focus of the company is going to be to deliver high-quality products to the existing — to the new customers and then we have the potential to ramp-up the business even further. Look, it’s around INR1 billion, 1.2 billion right now. It could be potentially three times the size.
Unidentified Participant
Understood, sir. Understood. I’ll get into the queue for the next set of questions.
Operator
Thank you. The next question is from the line of Chauhan from Anand Rathi. Please go-ahead.
Kunal Pawaskar
Yeah, congratulations on good set of numbers and appreciate it on the — and appreciate it on the good numbers as well. My question is regarding — you told — regarding the Turkey order inflows, as you mentioned. I just wanted to know that is it more sustainable and how the demand is looking from the Turkey? So it started once again, the business has started once again from Turkey.
Nikhil Kumar
So after a long-time, we have picked-up this one order, it’s around EUR3 million, so somewhere around billion. And there are a number of other inquiries in the pipeline. I feel that the market is going to quite slowly revive and slowly come back. As to what new normal, I think early days for me to give a strong prediction, but there is action once again in the market and that we will be happy to report more order inflows.
We’re active once again in the market. We’re well-established. We’re still the only manufacturer in that country making large generators so whatever business comes from that country where they need turkey machines will come to us. So and let’s wait. I hope — hope the market recovers further. But it looks like looking at the inquiry level that the pipeline is again filling up.
Kunal Pawaskar
Understood. And with the new capacity coming in-line, so when can we expect the full utilization in which quarter we can expect?
Nikhil Kumar
Sorry, could you repeat the question?
Kunal Pawaskar
And sir, capacity is coming online in next year financial year.
Nikhil Kumar
So the new capacity will be partly — it will be partly in Q1, partly and the rest will happen in Q2 and next financial year.
Kunal Pawaskar
Okay. So peak utilization would be in Q2 of next financial year, right?
Nikhil Kumar
The full — the plant will be fully ready by end of Q2 and we will see the full impact of the capacities in H2 next year. So it’s next year. Yes. Thank you. We partially — we partially commissioned one part of the plant in Q1, and the rest in Q2 and then the ramp-up will take place and you can see the full impact will be felt in H2.
Kunal Pawaskar
Okay, okay. Got it, got it. Thank you.
Operator
Thank you. The next question is from the line of Ankit Soni from. Please go-ahead.
Unidentified Participant
Sir, good evening. Congratulations on the set of numbers. So just wanted to understand on the one thing, do we have any further update on the domestic traction motors orders which we were expecting?
Nikhil Kumar
No. No updates no updates. Sorry, no updates.
Unidentified Participant
Okay. Fine.
Nikhil Kumar
And sir, we but we have been asking, but unfortunately, we have nothing new to report. Okay. But also conversely, we’re not depending on that for our — any growth or any replacement of what might happen after ’28 when the existing order runs out, we’re not — we’re not waiting for that to happen. We have made alternative plans and if that — when that stops, something else will — all the things we’re doing right now will take-over that and we have three businesses, one to Europe, one to US, one to CIS. So the Indian repeat order comes, great, if it doesn’t come, it’s okay.
Unidentified Participant
Okay, understood. Sir, just wanted to — another question on to the on this nuclear plan. What would be the strategy domestically with recent announcement in the budget for nuclear plants and all, what would be our strategy? What would be the target addressable market and what would be the total bond for the particular plant?
Nikhil Kumar
Okay. That’s the — look, I think that announcement — nuclear power plants have a long gestation time. So it could take even one decade to build a new nuclear power plant. So we — the only thing what we can say is that this will be a long sustainable cycle for nuclear in India for maybe decades to come. For us, we are focusing — right now, we are focusing more on the existing nuclear power plants that means the machines which are — which need to be replaced and there’s a lot of old Russian equipment in the existing nuclear power plants and the business that they’re getting right now are basically replacing existing equipment and there’s a lot that can be done in this part of the market.
And gradually we are moving from out of dome and now the attempt is to get into under inside the dome once we get qualified — now we are fully qualified outside dome getting into the qualification for inside dome, then we get automatically approved for the new power plants also. And all I can say is that nuclear power plant business for India motor business will be a steady business that we’re going to get year-on-year. It’s going to be part of our overall portfolio. But it’s going to be a long-cycle and for us, it’s important to be one of the key suppliers, motor suppliers to NPC.
Unidentified Participant
Sure. Thank you, sir. That answers my question. All the best.
Nikhil Kumar
Thank you. Okay.
Operator
Thank you. The next question is from the line of Mihir Manohal from Carnell In Asset Management. Please go-ahead.
Mihir Manohar
Yeah, hi, thanks for giving the opportunity and congratulations on a good set of numbers. Sir, lastly, wanted to understand on the motor side, I mean, INR120 crores of order book which is there on the railway side. So how should one see the execution from this piece over the next three years? And what could be the incremental order flow that can come from this division the.
Nikhil Kumar
I think I just answered that. But I mean we — we have a order from the European market, we have a order from the US market. We have an order from the CIS market for traction motors these three are going to be the main focus of our production and sales for the next two years at least and there is a scope to — there’s a scope as I said for us to if everything goes well and we achieve the full potential to be around INR2.5 billion to INR3 billion and that’s the goal of the company to take it to that level.
Mihir Manohar
Sure. Understood. And second question was slightly question. When we see the advancement which is happening on the Gen AI side, I mean, given this now deep-seek, I understand this is every day, but do you see any impact on what data center side of the demand which you are getting.
Nikhil Kumar
No, actually I — so there is — there is no change. In fact, just this morning there’s a headlines article — headline article from the Financial Times newspaper where they — all the big large tech companies have reaffirmed their capex commitments for AI, notwithstanding the fact that Deep Seek is there and they feel that as the costs keep coming down for AI, there’s going to be a wider and larger implementation base. So it becomes more accessible as it becomes cheaper. The overall power demand as forecasted and the investments that they forecasted are going to — no one is backing off. And that’s from the End-User side, the actual IT company, the tech companies.
Our customers the gas engine, gas turbine guys, they have clearly told us that there is no change in the demand situation for the next 18 to 24 months and whatever forecasts that are there are in-place to have the capacities ready and they are saying that the thing is that most of them have got long-term commitments, they have advances, non-refundable advances, they have — they have these contracts locked-in. And since there is no let-up of the investment from the tech company side, which is confirmed for the newspaper article today from the Financial Times, we believe that there’s going to be no change in the situation for us also going-forward.
Mihir Manohar
Understood. Sure. That’s it from my side. Thank you very much.
Operator
Thank you. The next question is from the line of Himanshu from PMS. Please go-ahead.
Himanshu Upadhyay
Yeah, hi, good afternoon. The order which we got in Turkey is after the quarter-end. Is that the right understanding?
Nikhil Kumar
Yeah, just going to come into Q4 Himanshu.
Himanshu Upadhyay
And we had to restart that our plant at Turkey means. So have we started the process and will it start working in now will deliver?
Nikhil Kumar
Yeah, we have to — we have an order to deliver, we have already restarted the process. It’s not difficult, Himanshu.
Himanshu Upadhyay
Okay. And just a color, in the — besides railway business, in terms of hydro, gas and steam, how balanced is the portfolio in terms of product profile wise or — and is that the right metrics you would like to look at the business or it would be more of a customers or OEMs whom you look at as that a better mix of understanding the diversity of business some thoughts on better geography. So how are you looking at the thing? So my question was on.
Nikhil Kumar
How do you want me to answer this?
Himanshu Upadhyay
No means how balanced would be on the fuels side means? Will it be now at one point of time, steam was a predominant business, okay. But will it be that equal share of these three businesses, hydro, gas.
Nikhil Kumar
So,, you are there on this call, right? Can you please answer this question? Yes. Obviously the balancing of these — of these segments.
Vinay Hegde
So in the coming years, I think the steam and gas segment are going to be the dominating segments, followed by hydro segment. And we had a very-high hopes of hydro, okay. Yeah. But we had a very-high hope. This year. Yeah, yeah. So this year we’ll be doing the highest turnover in hydro, but hydro is a long you know cycle project because from the you know, DPR to implementation, it takes much, much longer time than the other segments like steam or gas and it’s also a cyclic business. And we are not seeing a big growth in the next year, but definitely we are going to grow in double-digit in hydro. And there are also many refurbishment jobs that we are bid for and in couple of jobs, we have already become L1. But as I said, these type of jobs take much, much longer time as compared to the steam or gas segments and one just to add the.
Nikhil Kumar
Just to add, the hydro business, as said, is a long-cycle business. Growth is there, but it’s not at the same rate as what we’re seeing in the gas business. So if we’re talking about growth, number-one, growth is coming from the gas side. Number two, growth is coming from this team to provide. Number three growth coming from the hydro side, okay. And then, of course, traction, the traction businesses and motor businesses are relatively new businesses for us coming from a small base. There, of course, the growth is for the company percentage-wise is at the highest-level percentage-wise. So in terms of growth, I think hydro would be towards — in the company’s portfolio, it will be towards the lower-end. So when it talks to double-digit, say, 10%, 15% growth, that would be at the lower-end compared to all the other product categories where of course growth is much, much higher.
Himanshu Upadhyay
And in domestic market, it would be still majorly steam only or there also you are seeing some traction on gas side generators. I’m talking about domestic normal.
Vinay Hegde
Domestic is mainly — domestic is mainly steam as of now, but gas is — we have some small jobs of gas engine generators, but the gas business is almost negligible, but there are many hydro power plants coming in India, small hydro below 25 megawatt. We have already received three projects and these are good value projects and there are a number of projects in the pipeline, like all the northeastern states, now they are opening up for the hydro. Otherwise, as on today, the main dominating segment for us in the domestic market is the steam turbine market.
Himanshu Upadhyay
Okay. Thank you my sir.
Nikhil Kumar
Thank you. Thank you.
Operator
Thank you. And the next question is from the line of Ganesh Shram from Unifi Capital. Please go-ahead.
Ganeshram Rajagopalan
Thank you. I just want to follow-up on what I was sort of going with. On the margins front, right, so my understanding was at some point that procuring steel was getting a bit difficult and we were building up the inventory. So as things stand right now, how much of — I mean, how much of our top-line would sort of be secured in terms of inventory? That’s the first part. And then the second part is on the staff cost, right? So we have about crores in this quarter. So as in FY ’26 Q1, you start adding more staff and gradually ramp-up that plant, how will the staff cost sort of evolve and what would be the associated depreciation impact we should expect? Like when would the depreciation on the new plant sort of start hitting our financial statements. That’s just the first part of the question and I’ll come back for the second.
Nikhil Kumar
Okay, I need to get into — I don’t have the project-specific details, the tip of my fingers. I think we will take this conversation and we can have another call, but here basically the investment you can — up to now we have spent around 0.4 billion on the project and we still have — the majority of the money is going to be spent another say, EUR1 billion is going to be spent starting from, let’s say, part of it’s going to be this year, let’s say 0.2 and 0.8 is going to go to next year. And so we’ll see the full depreciation. So it’s going to be — we can say, 30% of the depreciation will start taking place. This year, not even sure we can do that because we’re not commissioning anything. Most of the depreciation will start kicking-in next year.
Okay. Once we had a commission before we can claim depreciation. And the investments taking place so-far even this 0.4 billion is mainly land investments taking place already in-construction and those you cannot take depreciation immediately. So we will see the full depreciation impact coming next year. The manpower hiring has already started and so we already have some costs associated with that in our existing balance sheet and existing P&L, but we — I don’t have the exact numbers on how the wrap-up is going to take place right now in front of me.
Ganeshram Rajagopalan
Okay. Okay. No problem. I’ll take that question offline, Red, probably would be better. And then just one more, if you don’t mind. I just — this is more of a clarification. So my understanding is our existing plant can go up to INR1,300 crores. The new plant can take us to INR400 crores. But then with efficiency improvements, you’re saying you can bridge the gap from INR1,700 crore to INR2,300 crores. Would that be the right interpretation or have a —
Nikhil Kumar
Yes. 1250 crores is existing capacity, 1,800 crore is the planned capacity and say we are expecting something like another 20% output more from around the — 20% 25% more approximately from efficiency improvements.
Ganeshram Rajagopalan
All right. Very clear. Thank you, Nika.
Operator
Thank you. The next question is from the line of D from Table Tree Capital. Please go-ahead.
Unidentified Participant
Thank you for the opportunity. Very heartening to know, because this was four years back, I remember still remember the con-call where you said we don’t have Nine-Month visibility. Now we have 24. So fantastic progress. Thank you so much. And Nikhil, I have a more strategic question. In terms of synchronous motors and induction motors, right?
So now that we’ve cracked the gas engine and steam and hydro and various other segments. The next big focus, at least in my mind at least is induction and Motors, which is a multiples of this gas engine opportunity in terms of market size. So how do you see us scaling? I know we won some marquee orders, I did read the investor presentation, but how do you see in your own mind, can this be a INR500 crore, INR700 crore revenue business in the next, what about two, three years or will it take much longer to reach that kind of scale how does the business stack-up from now to then essentially?
Nikhil Kumar
The plan is to take it to that level in not five, six years, but not about two, three years, but three, four years for sure.
Unidentified Participant
Got it. Got it, got it, got it. I mean, do we — are these orders, the marquee orders that you put in the investor presentation, are these like the base orders on which we’re going to win major business.
Nikhil Kumar
You see when you — when you want to get into a large compressor market or a large pump market or something to that, first question customer will say all the business in the oil and gas industry where you supply motors to API qualification, API standard, hazardous locations. See, we’re going after a lot of these very specialized applications. We’re going after motors where there’s a lot of engineering involved and where the specification is hard, obviously prices are a little bit better because we want to go after that higher-margin business.
So question people always ask is where’s your reference and then — and although we may have a lot of references in generative people want to see actual motors also working. So if you look at our list of orders that we have got and we need to — and we have delivered — all of delivering some of these machines, then we’ll have the references. Once you have the references, then it opens up the order book. Then for all the new inquiries that come, new plants, replacement, et-cetera, it just opens up or completely — it opens up the whole business potential for that particular segment, for that particular application.
So we will see a increase in the motor business once these — once these are commissioned, once we successfully commissioned and we have the references in — and all the sites that we’re putting in these motors are all really high-profile marquee customers, high-profile customers. So we can use this and we will use the reference list extensively to build to get more business. So what we have done, the orders that we have got in the motor business are, it’s really exciting and we are really — it’s going to have a big potential.
Unidentified Participant
And I’m presuming these are slightly higher-margin than our existing business,.
Nikhil Kumar
Yeah, it won’t be good margin business, I would say. And I really hope that we — and I know that we will once we crack this market and get larger volumes, it will — it will overall improve the margin profile of the company because these are highly-specialized products
Unidentified Participant
Got it. because last question for Mike and Nikhil, we are hearing all the other manufacturing companies who are in the exports business, especially to the US exports that they need to set-up something in Mexico, something in the US, some facility in the US. So A, point number a, out-of-the INR1,500 crore revenue will eventually reach in FY ’26, what percentage of revenue would be from the US? And point number B question is, have you heard any of our clients talk about setting up that all setting up that facility in the US so that they can procure it easier, better, make in US and all of stuff.
Nikhil Kumar
So I mentioned earlier in the call that for FY ’26, something like 8% of exposure will be US 8% to 10%. So we — we obviously we are in — we are in close contact with our turbine customers in the US about any potential duties that may come, they are also fully aware of it. But you know, if it is 10%, I don’t think it’s going to be any change. If there’s 20%, then we may look at options. We also have a plant in Turkey. So we — there are ways that we can we can — we have options. I think putting a plant in the US will be the last option because how long will the tariffs last and putting a plant in the US or making things the US is really expensive.
Maybe it’s — even if there is a duty of 20%, maybe even still more expensive to make in the US, even though you have a 30%, this will be cheaper to make in India and pay the 20% duty. So let’s see how it works out. Let’s see what comes. I’m — we are in close contact with our customers. We are watching the situation very carefully. We’re not going to lose the business even if the duties come. So as I said earlier, short-term customers will pay and they will pass-through that.
Unidentified Participant
Makes sense,. Thank you so much. Thank you.
Operator
Thank you. Participants are requested to kindly limit their questions to two per participant. The next question is from the line of Rohit from IThought PMS. Please go-ahead.
Rohit Balakrishnan
Good afternoon, Nitin. Congrats on really good numbers. So, just one question. Just one question, Nitin, I just wanted to hear your views on the geothermal market that we were going after, especially in that context, US, anything happening there? So that is something that I wanted to understand.
Nikhil Kumar
No progress in terms of new orders. We are actively bidding for new projects in the US and they are under finalization stages. We are in the race. We are in that final list of approved vendors and we are hoping that we will win. We are very well-placed and we’re hoping we will be able to probably announce something in Q1, hopefully.
Rohit Balakrishnan
Okay, okay. Got it.
Nikhil Kumar
And large projects coming up in the US and so in the bigger volume kind of — in the bigger category kind of projects coming up in the US. So when you’re saying 8% for the next year, what you — what you have in your mind factoring anything, not factoring any new volumes in the US government?
Rohit Balakrishnan
Understood. Understood. Okay. That’s it from my side.
Nikhil Kumar
If those orders come, then we will revise our guidance for that.
Rohit Balakrishnan
Understood. Understood. Thank you. Thank you very much and again, congrats on phenomenal numbers.
Nikhil Kumar
Thank you.
Operator
Thank you. The next question is from the line of Anand Trivedi from Capital. Please go-ahead.
Anand Trivedi
Yeah, hi,. As a follow-up, just wanted to see if the data center space, you spoke about that but is there any sense to how big that opportunity can be in the next three to four years?
Nikhil Kumar
Yeah, there is the sense, I mean we know that the overall power demand now up to 2030 for the US market is going to be around 100 gigawatts. So that’s the number which is in the market. And the current share of gas business in the US is something like 48% to 50%. So now is this new 100 megawatts there is a lot of discussion as to which fuel is going to take the primary role or primary — primary amount of business from this.
And so there are — the different scenarios being worked out. There was a big — so now that wind projects have been more or less put on-hold by the Trump administration, there is thought that the gas business is going to dominate this 100 gigawatts. And to what extent we don’t know, but it will be at least, my opinion, more than the existing share that gas has in the overall power mix for the US, which is more than 50%. So that’s a lot of additional business only from the US market. And this will keep everybody busy for a long-time.
Anand Trivedi
Okay, it’s clearly a big opportunity for you.
Nikhil Kumar
It’s a big opportunity, a very big opportunity. So not just us. I mean, if you look at all the large power companies like Siemens Energy and they all have — they all booked out for the next three, four years on this A4A business. G. Varona, energy, they are really doing well.
Anand Trivedi
Got it. So last question from my side. You talked about using these Japanese techniques to sweat your assets more and become more efficient. But your current inventory days are around 14015. Do you see that coming down?
Nikhil Kumar
The part of it is due to the large stocking of steel and copper, not due to manufacturing efficiencies, but we will bring it down even if we are going to stock. So we will look at cycle time reduction, it will come down. So the goal is to bring it down, but whether we can do without shopping of inventory, of steel and copper, that will once again depend on the supply situation and if there is stability in the supply situation, then I would love to stop buying and holding the material because that is free-up so much in cash for us.
Anand Trivedi
Sure. Okay, that’s it. Thank you.
Operator
Thank you. The next question is from the line of Rahil Shah, an Individual Investor. Please go-ahead.
Unidentified Participant
Hi, thanks for the opportunity again. My first question is, what is the update on the existing supplies of traction motors to Alstorm for the 12,000 HP locomotives. Would this order get renewed after FY ’29? Similarly? Hello?
Nikhil Kumar
Yeah. Sorry, I said you was going to ask you something else. No. As of now, we have no — as of now we have no information on any renewal.
Unidentified Participant
Okay. Okay. Okay. And my next question is, we have been giving the regular orders in the motor segment. How big is the global market for customized motors, what are indicative global market-share and which geographies are we supplying? Can the motor business of — can motor business exceed the generator business in next five to six years?
Nikhil Kumar
I gave a number, something I mean, I said that we’re going to grow it to $6 billion, $7 billion in the next three, four years time. So potentially it has a — the market is very large. It is 10 15 exercise in the generative market. So it’s potentially it has — we can make it as large as a generative business for us. That is the goal of the company. Higher-growth is going to come from the motor business for us compared to the generative business over a period of time.. And right now, our market-share is just not even not even in the percentage decimal point percentage in the world in a worst-case. So we are nobody in the motor business right now. We have a lot of scope to grow.
Unidentified Participant
No understood, sir. Understood. Sir, my last question is, we haven’t spoken about the wind turbine generators for the last few years. Is there any possibility of getting large orders in the near-future or has this — or we have completely given up the segment.
Nikhil Kumar
We’re not completely given up. I think completely given up would be but we — now and then we get certain inquiries and we follow-up on that and we come to the stages for negotiation and contract negotiation and unfortunately, we have not been able to close those contracts because once again, we come to the liability clauses, which makes me uncomfortable and puts the company under a big risk. So if those — if we are able to get a customer who is not willing to — who is willing to — who is willing to sign something which is better for us, then we will close those contracts. But looking at the nature of the wind business and the nature of the contract which are over there, I think it’s unlikely that we will make big growth into the business. So I’m not banking on the wind business for our growth, although we have now and then we have inquiries. We’re talking to big people in the market, but we don’t see — I don’t see this in my plan into the near-future.
Unidentified Participant
Understood, sir. Sir, in the data centers and AI, are we supplying gas engine generators or gas turbine generator to them and to which OEMs we are supplying this?
Nikhil Kumar
So we are currently supplying to a large US-based OEM and I don’t want to mention the name, but it’s large US-based OEM and this is gas turbines because large data centers, large AI, they require large-scale power generation. So the machines tend to be 15 to 20 megawatts with the process of getting us machines qualified for 50 megawatt sized machine which we’re delivering by the end of, let’s say, it was Q3. And once we qualified for the 50 megawatt, our business will again — I would say there’s a big potential for us to even double our business in the AI sector in ’26 and ’27. We are putting a lot of effort and to see how we can advance the qualification of the 50 megawatt product and but we have good forecast from this customer once we’re qualified. There’s a lot of things in the pipeline and 100 gigawatts that I talked about earlier is a huge market and we want to grab a larger portion of it and we will.
Unidentified Participant
Understood sure. So just last question. What’s our role in geothermal generators in the data centers?
Nikhil Kumar
So earlier there was a question about geothermal. So as I said, geothermal, large geothermal plants are coming up in the US, gigawatt size, 1,000, 2,000 megawatt size and these are mainly they have TPAs mainly with large IT companies. So we expect that the business — geothermal will continue for us and will be a large part of our — will be a large part of our but as I said, we have to win that business, right? We have to win that business and it’s not — it’s not it’s not right now at the point when I can say, okay, we have won this business. That market is there.
Unidentified Participant
Thanks a lot for the opportunity.
Operator
Thank you. The next question is from the line of Viraj Jain, an Individual Investor. Please go-ahead.
Unidentified Participant
Hi, thanks for the opportunity, sir, and congrats on a great set of numbers. I just had one question. That off-late we have been hearing a lot about small and medium-sized gas turbines that are being run on a mix of hydrogen and LNG gases. I mean, are we capable and approved to supply generators for hydrogen-based turbine?
Nikhil Kumar
Yeah, we are in the — our gas turbine customers are progressively making turbines with hydrogen mixed with natural gas and we are — we have our products in the pipeline, which are going to — which will run with this fuel mix. So they are all getting ready for the hydrogen future and we are also getting ready for the hydrogen future if and when hydrogen becomes cheap enough to be used as a fuel for power generation.
Unidentified Participant
Understood, sir. Thank you so much, sir. Thank you.
Operator
Thank you. The next question is from the line of Ajit from Quantum Solutions. Please go-ahead.
Ajit Sethi
Thanks for the opportunity. Sir, can we assume we can do INR2,400 crore revenue in FY ’27?
Nikhil Kumar
No.
Ajit Sethi
So any sort of revenue guidance for FY ’27.
Nikhil Kumar
We have projected something like a compounded 20% growth in the and we will upgrade the performance as and when we see the — and once we come closer to the dates, but right now we will commit that we can do as definite 20% compounded growth year-on-year.
Ajit Sethi
Okay. Okay. My last question is, what will be our capacity after the expansion.
Nikhil Kumar
18 billion.
Ajit Sethi
18 billion okay and EBITDA margin what we can do?
Nikhil Kumar
Around 18%.
Ajit Sethi
Okay. Thank you.
Operator
Thank you. The next question is from the line of Bobby Jay from Falcon. Please go-ahead.
Unidentified Participant
Hi, could you talk a bit about what is driving that growth in — for European gas turbines? Is it lack of supply or is it demand? Because the economies aren’t growing really. So what’s really driving that?
Nikhil Kumar
In the European market, the demand is for grid stabilization units, CHP combined heat and power, power plants and also there is a data center market also in smaller sizes where you need — it’s not gas turbines, but it’s gas engines in the European market, especially Ireland is a big center for data centers. We have been getting steady business and increasing our business in Ireland for data centers. So the market is quite — the dynamics of the market is quite different from the US market, but demand is high based on these factors and grid stabilization units have a big requirement. For example, this year, we’re supplying 100 machines of 5 megawatt of the UK market only with the stabilization.
As more as more-and-more countries have a larger proportion of their power mix coming from renewables they will need more-and-more of these grid stabilization units. So this is a fundamental change taking place in the market and the irony is that the more you have, more renewables you have, the more grid stabilization power you need to have. Because when the sun doesn’t shine or the wind doesn’t blow, you will have hundreds of megawatts coming off the grid instantly. You need to start these engines within five, 10 seconds and pump in these hundreds of megawatts into the grid and then run them for a few hours, push them off in the production of windows will picked-up once again.
So this demand is structural, it’s going to keep changing. It’s going to — it’s going to keep improving and we see this as a long-term requirement. So this — so the factors driving the European market are quite different from the US market. The US market, the power demand is coming out of AI.
Unidentified Participant
Understand, but in Europe, don’t they have their own local suppliers for the generators?
Nikhil Kumar
They do. The — how are we able to compete with them because they do but we compete against them and we are winning business.
Unidentified Participant
So it’s all tender-based. You don’t get repeat orders from the same customers. You had to win each tender for each business.
Nikhil Kumar
No, so our business is to the prime mover companies like engines or turbines and they in-turn bid with the generator for projects but let’s say it’s a large utility or it’s a large data center company you know so those will be repeat orders but they may a utility may say buy, let’s say, 100 machines grid stabilization units. This year, you may not buy it again next year, but you may buy the following year. So that’s how the business runs.
Unidentified Participant
Right. So you have a. You have a direct relationship with the prime movers. You don’t have to bid for tenders with that.
Operator
Ladies and gentlemen, please stay connected.
Nikhil Kumar
So it’s really a global market for us. We were not dependent on a single-country as a couple of that. So different countries have their coming up at different points of time and we have a.
Unidentified Participant
I know what I specifically wanted to know was, do you have to bid through tenders with the prime movers or are they — or do you just continually get repeat business?
Nikhil Kumar
We get right.
Unidentified Participant
And the prime movers have to bid for tenders right with the utility. That’s great, thank you.
Operator
Thank you. The next question is from the line of Vimuk Shah from Sintech Private Limited. Please go-ahead.
Unidentified Participant
Yeah. Thank you for the opportunity. So regarding the international market, can you provide a more specific details about the types of project driving the increased demand for the gas turbine and the gas engine? Like is it what is the growth attributed to like packing data center or the AI?
Nikhil Kumar
Sorry, can you repeat the question, I could not hear you clearly. There was some problem with the line.
Unidentified Participant
Okay. So can you provide more specific details about the types of project which drives the increased demand for the gas turbine and the gas engine.
Nikhil Kumar
I don’t know-how to give more specific information so there could be a data a data center which requires 100 megawatts or 150 megawatts from one large tech company and they need five units or 10 units or 15 megawatts and then they will buy it from our customer with our generator can you hear me? Yeah. So that’s how that’s all I can say in terms of specific information and there could be utility who wants to buy this stabilization unit 100 — I don’t remember what that’s how the business goes. I don’t know-how to give you more specific information. And I can’t give you customer names and things like that right now. So we’re not allowed to share confidential information.
Unidentified Participant
Okay. Okay. So what are the typical margins for the geothermal projects compared to the hydro?
Nikhil Kumar
Geothermal projects have better gross contribution that is again project-to-project, it varies, but they have better cross contribution compared to our regular gross contribution.
Unidentified Participant
Okay. Okay. And just last one is like, what is expected revenue potential at the peak utilization for this new facility which is coming in after Q2.
Nikhil Kumar
So we have a capacity — we have capacity which will be INR1.18 billion next which we put up by which should be ready by end of H1 and then we have given initial guidance for 15 billion. So 15 by-18 would be the capacity utilization that we will have. So once I increase the guidance beyond 15, then it will — that could be the number that we will have to calculate. And as we increase the capacity with some 1,800, we said we can go to 2,300, then we will see then the capacity obviously will go up.
We see. We have already experienced in doing this. If you remember, we have increased our capacity from INR700 crore INR800 crores to INR1,200 crores of automation and other improvements in the factory. So we have really — we have experience in doing this and how to push the envelope and how to push the assets and we will do it once again.
Unidentified Participant
Okay. Okay. Got it. Yeah. Thank you and all the best.
Operator
Thank you. The next question is from the line of Raj from investors. Please go-ahead.
Unidentified Participant
Sir, congratulations on good sets of numbers. So my question is for the raw-material prices movement as we already know that we have topped up our raw-material for FY ’26. So how is raw-material prices moving forward?
Nikhil Kumar
So we see a stable raw-material environment for us for next financial year. And if the prices go up or down, then we will have to — we have to then see the situation for the following year. But FY ’26, that’s the clear.
Unidentified Participant
Yeah. Okay, sir. And I’m kind of liking like a shareholder that we are seeing already in investor presentation the highest PAT, highest revenue, highest EBITDA, highest order inflow. So are we on-track to post another highest quarter in this quarter?.
Nikhil Kumar
Can you just speak a little slowly because I’m not able to understand what you’re saying?
Unidentified Participant
Yeah, sir, I’m asking, sir, our investor presentation from last two, three times, I’m kind of liking this commentary like highest EBITDA, highest revenue, highest PAT, highest order inflow. So are we on-track to deliver again highest quarter like Q4 FY ’25?
Nikhil Kumar
In Q4, yes. Yeah.
Unidentified Participant
Thank you very much, sir.
Nikhil Kumar
Thank you very much. Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for closing comments.
Nikhil Kumar
Thank you. Thank you everybody for joining us today on the conference call and presenting us with a number of detailed questions and interesting questions. We will look-forward to interacting with you at the end of next quarter or we’ll be happy to meet up with you next few months during some investor conference. Thank you very much. Thank you.
Operator
Thank you. Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.