Time Technoplast Limited (NSE: TIMETECHNO) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Bharat Vageria — Managing Director
Analysts:
Unidentified Participant
Ashish Poddar — Analyst
Shashi Ranjan — Analyst
Jatin Damania — Analyst
Deepak Poddar — Analyst
Ankur Sawariya — Analyst
Saloni Jain — Analyst
Rohit — Analyst
Ganesh Kumar — Analyst
Presentation:
operator
Ladies and gentlemen. Good day and welcome to Time Technoplast Q1FY26 earnings conference call hosted by Motilal Oswal Financial Services Ltd. As a reminder, all participants line will be in listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference has been recorded. I now hand over the conference to Mr. Ashish Podar from Motiral Oswal Financial Services Ltd. Thank you. And over to you sir.
Ashish Poddar — Analyst
Yeah. Thank you Pareev. Thank you all the participants who join us today for the Q1FY26 earnings conference call of Dime Technoplast. We have the senior management of the company available for the discussion on the financial results, business strategy and the growth outlook of the company. Now I hand over the call to Mr. Bharat Bagheria, Managing director of the company for his opening remarks post which we will open the forum for question and answer session. Over to you sir.
Bharat Vageria — Managing Director
Yeah. Thank you Ashish for introducing us. Good afternoon to esteemed investor respective colleagues and thank you to team of most for the kind introduction. It is both an honor and a pleasure to address you today as we present our financial and operational performance for Q1 FY 2026 along with our outlook for the remainder of the fiscal year. I am pleased to share that our positive momentum has continued into Q1 FY26 with the volume growth of 14% year on year and corresponding 10% increase in the revenue. The difference reflect on account of the lower the input cost which is approximately 4 to 5% which tempered revenue growth.
Nonetheless, the demonstrated strong operational resilience, maintaining healthy volume while optimizing revenue in dynamic market environment the composite product especially CNG segment emerge as a delivering good growth of 20% around playing a pivotal role in our overall performance. Together with the strong results from the other composite product we achieve an impressive overall 18% growth in composite volumes. Notably, our profit after tax increased by 20% year on year. Underscoring our continued focus on the capacity utilization, prudent financial management particularly in controlling finance cost and continue process of automation and re engineering to reduce the cost and make available the product at a competitive price.
We are further encouraged by the sustained Demand for type 4 composite cylinder as evidenced by heritage order book for approximately 175cr. This positive trend is complemented by growing interest in our value added offering including lpg, cng Composite cylinder. Simultaneously our industrial packaging division continue to deliver steady performance. We are also pleased to announce a confirmed order pipeline of approximately for 125 crores in packaging solutions for the current calendar year covering both domestic and international markets. This result underscores the strength of our diversified business model and solid foundations and the risk distribution for the business across the 10 countries and if I count including India, it’s 11 countries.
We remain focused on the capturing emerging opportunities and accelerating our journey towards a sustainable environment responsible growth delivering long term value for all the stakeholders. With that now I invite you to join me to delve into the key highlights of our financial performance are presented in the result. We have in fact loaded on the BSE NSE our earning presentation also. But once again I am reading that during the Q1 FY26 on a consolidation basis compared to previous Same year of Q1 FY25 sales stood 1,354 crore sales against 1231 crore last year and EBITDA is 196 crores against 175 crores.
Profit after tax 95 against 79. In terms of the percentage which is represented by cell net cell revenue terms increased by 10% which includes India 8% overseas 14% volume growth 14% 12% India and overseas 17% EBITDA margin increased by 12% paid increased by 20% Q1FY26. Our EBITDA margin rose 14.5% to 30 basis point improvement from 14.2%. Our AUXi subsidiaries also delivered strong result in Q1 despite global uncertainties. This performance was driven by volume growth outpacing revenue growth supported by the lower raw material cost and corresponding price adjustment passed on to the customer. Because we have a relationship with the customer and we are directly having B2B business share of the business stabilized product versus value added product is increasing trend recorded a stern growth of 15% valued date products compared to previous year while our established product line grew 8.3%.
Notably the contribution of valued product to the total sale increased to 26% from 25% the previous year. Replector continues focus on the innovation and the higher margin offering. Now share of the Indian overseas business is 62 and 38% as against last year was 63 and 37 EBITDA margin. India and overseas almost on the same line which Is in India 14.7 overseas 14.1 respectively PAT margin in India and overseas 6.5% and overseas 7.9% respectively cash on up there is a positive net cash from the operating activities around 116 crores as company is focused for reduction of the debt for every quarter this quarter also debt reduced by 37 crores total capex in the first quarter is 43 crores which includes towards the regular maintenance capex expansion, automation reengineering 20 crores and 23 crores value added products that is called IBCN composite products I would like to draw your attention to a couple of the interesting development with the during the development which have been seen initially I am pleased to announce in the history of the company first time that bonus share is announced 35 years have been completed Operations of the company Board have recommended for the approval.
To. In the meeting held on 11th August yesterday and announced the bonus of one to one face value of rupees one fully paid of equity shares of the company held by the members of the company as on the date of the record dates this is subject to approval from the members at the ensuing 35th Annual General Meeting of the company which is scheduled on 11 September 2025 and other regulatory required approvals for issue of the bonus Another sale of the non core assets focus is still continuing if I recall my discussion two years back Company decided and identified non core assets worth of rupees 125 crores which is now reduced to 47 crores and this money realized and used for the capex and reduced the borrowings etc.
And this focus balance also will be targeting to complete in the next 12 months time now as again I am repeating the focus on improving the ROC is continue and ROC can be increased by increasing the productivity, increasing the margin, increasing the capacity utilization, reducing the working capital cycle time the focus will continue I recall in my discussion that we had said three years back ROC should be 14, 16, 18 and 24 years company admitted target achievement I am pleased to tell you last three years we have achieved the target what was capped by the company 14 achieved, 16 achieved and the 25, 18 achieved now targeting for ROC of 20% for the FY26 this will be again continued focus on the cost reduction through automation re engineering automations optimizations, working the cycle time strategy and development of the newer products which have a higher margin Consolidation of products and manufacturing unit is also continuing for the cost reductions and optimization of utilization considering the logistic cost from one unit to our customer because you know the India Road infrastructure is increasing so based on that our team is analysing how we can reduce the cost of the logistic and the variable cost logistic is cheaper than the running the separate unit so our team is regularly keeping focus on that and accordingly based on their decision we consolidating our operations of the units Then again I’m just repeating QIP approval which was taken last year still continue and it is valid till now by 2025 especially purpose was also mentioned at dime QIP is for reduction of the debt Then again for the automation the engineering capex plan for the value added products Then certain new product greenfield product which is taken by the company like for sustainability point of view for expansion as a company in the polymer packaging products where company need to do some statutory compliances we have to consume their packaging material buyback arrangement from the products which we are supplying after considering the exemption granted by the government notification the product which have been exported from India the product which is supplied for the pharma packaging food packaging that have been excluded so to have an statutory compliances because we are a law aboard company the company has undertaken project expansion for that the new company has already formed and we have intimated to the exchange regarding time Ecotech Private limited that will take project for the sustainability across the India in three locations three regions, western regions, eastern region and south regions.
First plant will be come out in the current financial year only and that will be in the western region in Gujarat the place is already identified Companies has entered into agreement for buying of the premises ready premises and I’m quite hopeful in the next three to four months that plant will be commissioned completely so QIP is the involvement of the various purpose as I mentioned to you so will be the right time considering the that and go for the QIB Then recently we have done certain development done in the R D Especially as you know that we are focusing on the development of the newer product which is a higher margin and high technology based product Especially we have signed we are doing in the composite cylinder, LPG applications, CNG applications, hydrogen application, gas applications Also the company technical team has made an agreement with the company called drone Start technology who is already existing manufacturers for the drone Presently all the drone special drone is manufactured by him by using the energy storage devices mainly called batteries but yes we have seen so we will do very close working sign the exclusive MoU with them for the three years for development of the hydrogen cylinder we have we have already approval for type 3 and type 4 the cylinder will be used for the drone applications so initially the drone applications will use hydrogen cylinder and give the performance and the best on that we will Able to supply by use of this technology for supply of the cylinder for the drone applications.
Because we all know that drone market is going to be various uses of the drones are there various sectors are using in surveillance, agriculture. Then this fire department so many other police department authorities all using the drone application is going to be increased. So we thought it’s a quality performance wise height wise is very good cylinders hydrogen cylinder which have a better performance. So we are going to develop this along with the drone manufacturer. Now our focus is continue for the green energy conversation of electrical unit by using the solar power. I have mentioned in my last call also again I am repeating we have around the 15 crores units requirement annualized in India and if at all all the states that units are available by solar then we can sign the contract.
But currently some of the states have that policy Like Karnataka, Uttarakhand, Maharasht, Gujarat and that is called Uttarakhand I told you then Gujarat, Maharashtra and Tamil Nadu five states have that policy. So we have already signed the contract. So this year half year we’ll get the benefit of the solar power where the saving working out around 3 rupees per unit. So in terms of the units I can say around 8 to 10 crores rupees company will able to save by producing the solar. But overall focus is continue wherever possible to buy the purchase power agreement by the solar.
I am once again clarifying you company is doing the equity investment for a longer period maybe 15 years or 20 years. Then the face value will be written back to the company. In addition to that company will get the committed units which have been signed and and will get the benefit for 10 years or 15 years as per the agreement value for the units for which the agreement have been signed. There is a quite substantial benefits can occurred in the period ahead. Then as we are in the energy storage devices the company in the last call also I have told that there were the two companies we were having earlier like NAND Energy Limited which was subsidiary of Time Technoplast.
The NED Energy was having step down subsidiary of power bid. So in the last four to five months the access was ongoing but the merger that merger process have been completed. Now the power bill batteries is directly owned by the time Technoplast Limited for the 97% equity is owned by the company. Now in that company has taken the project for development of the newer batteries which includes E rickshaw batteries low cost batteries and that quite results of the batteries is very good, very satisfactory. So company has submitted and extracting that approval from the government authorities.
In the next 30 to 45 days because sample already submitted it is under testing process with the government ECAT we call it the institution authorities in Delhi. So we have submitted 40 batteries for the approval another batteries for the power sector batteries and the power expansion in India is ongoing. That battery is also preparation is on. We will already in the process of submitting our sample for use of the batteries power the power system as per my technical team experts we are going to get that approval also in the next three months time the batteries which can be used for the power sectors also.
Now as I mentioned to you the new sustainability focus subsidiary Timetech Kotech Private Limited which is mainly for use of the quality recycled material which otherwise not available in India because company has various polymer products and this law has come out only for the packaging products where company need to have a system of collecting back for the approximately 30% of the packaging product after exemption which is supplied to the customer. So we have already in the process of appointing local agents to get the material back, reprocess, recycle and use as per the applications. We are till we start our own facility.
We have made arrangement with the local vendors development vendor and identified some agents who are supplying the material collecting back from the centers and getting reprocessed back so we can have extended process response responsibility can be complied then I have mentioned in this also I think nowadays everybody talks about the impact of the US Tariff which is ongoing. I can say the since April this some confusion is ongoing what is the tariff available applicable to Indian products which is exporting the U.S. i’m glad to tell you that your company is having manufacturing operations in US and the products which is manufacturing in US is for the local countries only not export to the other countries.
So it’s because of the voluminous nature of the product is a voluminous product. So we are not much I can say the major effect regarding of the tariff of the US Operation very small items inputs which is exported from the other countries which is used in manufacturing in terms of the value it is hardly 3 to 4% of their inputs which they are importing from the other countries. Now I would like to open the floor to answer the specific questions if any which I have not covered in my speech.
Questions and Answers:
operator
Thank you very much, Vivian. Now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question Please note ladies and gentlemen this call has been scheduled for 60 minutes participants are requested to restrict their question to one per participant and come back for the follow up. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Shashi Ranjan from Anandhan Capital Please go ahead.
Shashi Ranjan
Hello, good afternoon thank you for the opportunity. Congratulations to the entire team for the first quarter Very good result that is usually not that good but this time it is quite good so just one question which after which I’ll come back in queue that it is about time. Ecotech Private Limited I understand that is a low margin business over the ones we have so why do the capex is being done there? It is because of only extended producer responsibility or and what is the revenue coming out of TEPL and there’s revenue from the power build in visibility on revenue visibility on that.
Thank you.
Bharat Vageria
Okay, yeah. Anything else or this is the one.
Shashi Ranjan
Question As I been told to ask only one question I’ll come back in.
Bharat Vageria
Yeah, yeah I think the question is one thing I’m telling you if any repur material it’s a. It’s a one thing, it’s a statutory compliance we have to fulfill that we have to fulfill second thing the material which is available recycled material because when the drums which as a company is selling I have to make the arrangement to buy back through the agents which I’m going to do that and that material is going to be used in the process back so there is no any cost increase will be there because as I am responsible my customers are also responsible so whatever cost will be there that will pass on to the customers only.
I’m just giving you one of the example in India we have to do it our own plant because we have a various product we want quality assurance Therefore companies doing our own plant and it’s a requirement and it is not going to affect the profitability of the company Cost of the product, cost of the item recycled material including cost of the capital investment Everything will be count when we worked out the cost of that raw material and it is not going to be cheaper Also it will be the price difference between the cost of the procurement of the drums back plus the reprocessed material equivalent to the virgin raw material which otherwise we are buying from the local manufacturer so company when considering this price there is no impact on the margin will be there and as far as financing parties concerns company has adequate internal appeals available and CAPEX plan for the normal CAPEX automation reengineering is Already there and this is in the period of two to three years.
The three reason will be covered this year. Only the one reason western region which has a very very high requirement is there and the availability of the recycled drums from the markets are available. So first one would be the western region. Next year we will see the northern region and then after the southern region. So it’s a three year plan. Compliance for the statutory compliance as well as margin will not be affected. While working out the cost of the product.
Shashi Ranjan
Sorry to interrupt. My question was on the revenue visibility for the TEPL and power belt. I understand that this is a 60,000 metric ton recycling plant. TEPL I’m talking about. So just help me with the mix up.
Bharat Vageria
I tell you Power build is a different power build with the energy storage devices. There is no any compliance any point of view. Power build is an energy storage devices which I mentioned to you. Two batteries is under process of approval. That is E batteries, another batteries power sector batteries. As far as this energy storage devices division is concerned our revenue is in the range of 125 crores and in which we are counting edicture batteries around 35 to 50 crores. We have taken into consideration now the time Ecotech Private limited which you are talking, right? You are talking the recycled material.
Yeah. So that is entirely different from the barbed. Now this is as I mentioned to you it’s the statutory requirement and no cost increase to the company. Company will able to maintain the EBITDA margin for overall the product packaging product intact. You, you have seen that company packaging product which constitute almost around 75% of the total revenue which includes 37% from overseas revenue. And I’m glad to tell you overseas unit already we are getting some quality of the recycled materials available and we are using our overseas plant. So we have no any means the new technology or something we are already experienced.
But in India that recycled quality material is not available. Therefore we are putting our own plant to to give the 100% guarantee. 100% product success for the finished products.
Shashi Ranjan
Right in the queue. Thank you. Yes sir. Thank you sir. I’ll get back in the queue.
Bharat Vageria
Yeah.
operator
Thank you. The next question is from the line of Jatine Damania from Swan in mind.
Jatin Damania
Good evening sir and thank you for the opportunity. Am I audible?
operator
There is background noise from your side. We would request you to ask question.
Bharat Vageria
Yeah, a lot of noise is coming right now.
Jatin Damania
It’s audible.
Bharat Vageria
Yeah, yeah.
Jatin Damania
So just wanted to understand now given the growth that we have seen in one Q coming from Cascade business with 18% volume growth. So how do we see our growth? Because now type three we have already got an approval. Type four we are about to commission and now with an MOU signing with a drone, how do we see a growth assumption for FY26 27 for the Cascade business and the revenue as a whole. And second part to the question on the cylinder front. We were also in touch with IOC for a couple of orders which are supposed to come in Q4 which was got delayed in Q1.
So you can give an update on that before I come back in ask you for other questions.
Bharat Vageria
Yeah, yeah. I think you are talking composite cylinder. You recollect my transcription which I have said last time. As far as growth part is concerned for 2526 we are estimating 10 to 12% growth for the packaging product. Around 28 to 30% growth of the composite product which include LPG, CNG, hydrogen, other composite products all put together. So we are on that line only working out as far as. Because where you know that in composite product we are we have already developed Fire exchanger which is also under process of BIS approval by our one of the customer.
Another some kind of automotive sector composite product. We have developed that also we are regularly supplying like a receiver tank, fuel tanks etc. Then hydrogen cylinder. You are talking drone application. This R D MOU have been done. This is the future of the business. We type 3 and type 4 nothing to do type 3 because type 4 I don’t have a capacity currently the new capacity which you are aware that it is to be come out in the second half of this year and we are in the process of completing or all other formalities including the building completion in this first half of the year the work is on but there is a some delay because of the rainy season is continue and delay in getting the completion of the construction building.
So we are linking our import consignment directly considering the at the building complete we get the power connection. We get it I think transfer from the over this overseas supplier. So it is going to take in the second above this thing. Now another thing as far as LPG is concerned regular business with the existing customer IOCD is already there and you have seen BPCL FPCL also discussion is on and they have also utilized started to utilizing the LPG cylinders. So composite product all of the year. I think better clarity will come in the Q3 of this year.
But we are sure to achieve the growth of the in the range of 28 to 30% especially in the composite products.
Jatin Damania
And a follow up on this, on your value added products which is around 25 to 27% with the commission of type 3. What sorts of value added mix we can see by end of this year and probably in FY27.
Bharat Vageria
I tell you in three years as I mentioned to you. I can’t say the further because everything. But as far as we are not affected by the tariff or this thing. These are for the local consumption of the industry. So at least 2, 3 years feasibility as composite product after expansion. Also we are quite confident about to achieve the growth of 30%. As far as composite product is concerned. LPG, CNG, hydrogel, all automotive composite product, everything.
Jatin Damania
I have a couple of more questions but I’ll come back in a queue. Thank you.
Bharat Vageria
Yeah. Yeah. Okay.
Jatin Damania
Thank you.
operator
Thank you. As there is lot of background noise from the participants line we request participants to mute your line while the management is answering their question. Thank you. The next question is from the line of Deepak Podar from Sapphire Capital. Please go ahead.
Bharat Vageria
Yeah.
Deepak Poddar
Am I audible sir?
operator
Yes, you are.
Bharat Vageria
Yeah.
Deepak Poddar
So just a clarification. First time, I mean next three, four months we were talking about some plan being commissioned. So which plant we’re talking about here
Bharat Vageria
in fact because certain new plants which are coming up in India especially. But when the Jatin has asked me about the expansion plan of the composite heading the CNG especially in consolidation. Because currently we are manufacturing our CNG and hydrogen cylinder in the two places. Some part in Daman, some part in Silvasa. But we are linking because my existing capacity is equivalent to 30,000 cylinder we can produce which is going to be increased by another 36,000 cylinder.
And you know that one cascade need the 60 cylinder. So in the current in terms of the casket we can say 5, 480 cascade can be manufactured in a year as per the current capacity for last year company took the expansion by increasing the capacity from 480 to 1080600 new expansion means one Cascade 60 cylinder. So totally 36,000 cylinders in a month. So that’s expansion plan is coming nearby Wapi in the Gujarat only. So I am talking about that plant only. That is going to be start in the second half of this year.
Deepak Poddar
Okay, so the capacity will increase from 30,000.
Bharat Vageria
Yes, of course, of course. Capacity which is currently hardly 480 cascade which will generate the value of around 350 crores only. But after the expansion definitely which is coming for 300 cascade the total business can be generated around 700 crores. Which business can be generated from CNG and hydrogen together
Deepak Poddar
okay, and this 30000. Cylinder we’re talking about per month, right?
Bharat Vageria
30000 cylinder yearly. Yearly. I’m talking 1080 gaskets yearly.
Deepak Poddar
Okay, I got and, and just a. Question on the drone part. So what are the potential we can. See in that that particular I I.
Bharat Vageria
I We have not yet counted. But I’m telling you as I heard from the drone industry there is new. Many new companies are coming in India. We are not going to manufacture drone. I can tell you we are going to develop our hydrogen cylinder for drone applications. Because drone market as per the current what I heard it should be 75 billion by 2032. That is the estimation is given available in the public resources. So we thought the specific we can get a good realization good value and green energy. And it is really very very. We can have a mech in India and we can support to the drone industry.
And all the batteries are the Chinese batteries currently today. So at least we will replace it from the hydrogen cylinders which have a lightweight then they can can fly the more time they can fly on the higher height. There are the multiple advantages. So we thought let us first do R D. Let’s tie up with some of the drone manufacturers. So we have tie up with the existing experienced person who is specialized who has already experience of supplying 50 drones, 50 to 60 drones in India. So we thought it’s better to have a tie up with him.
So the our cylinders will be used there and then we will take the experiment of supplying the our battery, our cylinders for the drone manufacturer.
Deepak Poddar
Okay, I got it. That’s very helpful sir. That would.
Bharat Vageria
Yeah, yeah. Thank you.
Deepak Poddar
Thank you so much.
operator
Thank you. The next question is from the line of Deep Shop from New Venom Capital.
Bharat Vageria
Hello.
operator
Sir, we request you to please ask a question.
Bharat Vageria
Is it audible?
operator
As there is no response can be.
Bharat Vageria
Okay, fine, you can take the next one.
operator
Okay. The next question is from the line of Ankur Savaria and individual investor. Please go ahead.
Ankur Sawariya
Good evening, sir. Congratulations on a good set of numbers again, sir.
Bharat Vageria
Thank you. Thank you.
Ankur Sawariya
My question is regarding as you see that from last 2, 3/4 we have given very good results. But since that you have announced that you are willing to go for a qip, the share price is not going up. So are you comfortable in going for the QIP at these valuations after the company is doing so well for last one year, two years.
Bharat Vageria
I am telling you. In fact, you know that in the last translation also some investor asked me what will be the right time for the QIP. I told them there is no any right time QIP is only as per without QIP. Also I said very clearly in the next 18 months time company plan to have a debt free because company have adequate approvals, adequate earnings and company has a capability debt security ratio is also very low and company can borrow more which is priced in the range of around 9% per annum. But again, as you know very well I have discussed last time also.
But again there is a multiple object to of the QIP and therefore you know that already eight months passed. I can say after we not did because of the timing. You know very well last six to eight months It’s a very very uncertain global uncertainty was there so mean market growth was not visible what kind of the business. So we thought we should have a certain right because certain new policies which company has developed in the recent year and which have a very very high potential. Especially we have told about the composite products which includes cng, hydrogen and lpg.
Very large potential market is very big in terms of the LPG cylinder in the 50 crore cylinders are in population 32.68 crores active connections are there. And every year government need which is currently totally sourced on the metal cylinder except the small quantity. In the last three years we have supplied to the government companies where the every year the requirement of the cylinder LPG cylinder itself is a 3 crore cylinder as against V and supreme together have a capacity of hardly 1.7 or 8 million cylinder which is hardly 7 to 8% of the requirement of the government.
But at the same time we were working hard for development and doing the development as per the under consultations with the government agencies we should have a 14.2kg cylinders for which development is ongoing. So it can be at par with the metal cylinder which is currently in the use. So very large potential we are expecting. So we ourselves keeping ourselves ready for the fast moving to capture the market cap and timely supply of the composite as well as LPG and CNG cylinder. Now composite product. Also if you see the government policy the total market size is more than 28,000 crores.
We are projecting business of 2,500 crores in a period of five years. But considering the consideration timeline of the equipment supply considering the because most of the equipments are imported and very very highly imported from the overseas market. And it is a time taking process of 12 to 18 months delivery equipment time so and further companies as developing the hydrogen cylinder already approval in hand. So many other new plants are coming biogas plant and the hydrogen cylinders requirement is increasing in the Drone other applications are in development. So we thought we should keep ourselves ready for the QIP because at the same time company management is also directing to maintain the depth at this level.
And if we are going for the QIP then why we should not become the debt free as early as possible and do the expansion need based expansion which to capture the market available market in India so that for reason last year we got the approval so we will see the right timing, right investment procurement, right investment because companies also exploring companies for organic as well as non organic growth also there because one thing is very clear as for the direction received and as per the management need and to grow in the double digit growth and that is possible by organic and non organic growth and to capture the market which is governed by the company for which company has made an investment time to time where the market is very big.
So we know very well packaging business which we are there for more than 35 years but we can grow that is in the pace of I can say 10 to 12%. But when company need to grow over 15% it is possible only from the other where the market are there especially composite products. So therefore we keeping ourselves ready for that nothing to do that we have to do today or tomorrow. We are keeping ourselves ready to capture the growth in the period ahead when the internationally also I I’m glad to tell you my capacity utilization internationally and India all put together is around 80%.
Even international is 85%. But internationally we do only the packaging business. And when my international team certain expansion is in end in the Saudi in US where to capture the local demand growth that all covers under my CAPEX plan of the normal capex which normally 175 to 200 crores but when the major demand comes so we thought we should keep ourselves ready to capture the growth.
Ankur Sawariya
So the point is well taken. And we have also seen that time and again the motors have also bought at the grades. So why are you not considering something like say right issues? Why are we only why do you want to go for a qip? Even the shareholders present shareholders will benefit from something like.
Bharat Vageria
One thing I’m telling you to give the benefit of the investor and two existing promoters Also we have already announced the bonus because in the last 35 years we not award given any award by bonus we thought promotes also banning it company will also benefit and the widely investor can get the opportunities. Therefore companies announce the bonus when this to one in the history of the 35 years. Now you are asking the right issue. You know very well the promoter have no any other business opportunity. Promoter don’t have a fund to put again in the right issue money.
Because promoter around 51.7% all the promoters are having full time deductions for the company and they have a business of time technoblast only. So to avoid that when the direct institutions small investor are showing their interest because they are not getting their required value of the investment which they like to have in the company and they would like to have a participate in the growth of the company Considering India and overseas operations. Therefore we thought okay, we have been suggested by the merchant banker There is the right instead of going the right issue you should go for the QIP or the preferential issue for that.
Ankur Sawariya
You will see that right from 2020 the number of shareholders has increased from 30,000 to 1,000 approximately 1 lakh 40,000. So the retailer retail shareholders are showing a lot of interest and the their share in the shareholding has already increased so much that you know the pressure of the rates share price is always there when the QIP is announced. That was.
Bharat Vageria
I tell you I am not looking company manager not looking that UIP should be the higher price or something. It will be a reasonable price following the SEBI norms at all. If you recollect the three years back what were the prices we don’t control on the prices is again market circumstances demand supply gap international. We don’t see prices every day and we are not our work is very clear. We should deliver what we are promising to the investor. We should deliver and we should go ahead for the direction of where we would like to have today.
Ankur Sawariya
Thank you Lord sir for answering my question. All the best.
Bharat Vageria
Yeah, thank you.
operator
Thank you. The next question is from the line of Saloni Jain from Nirbalbam Security. Please go ahead.
Saloni Jain
Hi sir. Am I audible?
Bharat Vageria
Yes, yes, yes sir.
Saloni Jain
Two questions. First on the composite lender piece of tendering so earlier we had seen a slower patient entering from IGL and IPCL but recently supreme also signed in or signed one of 2 lakh 10 kg LPG lenders which is small. But what is your take on the pace of ordering going forward now? Or is it the same?
Bharat Vageria
I tell you as existing users are also there and as I mentioned in my last call also we are continuing export to the various 48 countries. We have a good order book for supply. So as far as this order is concerned BPCL order was there which is. Which is because some of the locations which is required by the BPCLB are not nearby and that is very near to the supreme location. So we in fact our prices were little higher than them considering the it’s a delivered prices. So we have left that order and we are continuing to capture the other geographical there we are getting good realization is very on the commercial sense point of view.
You’re not participated in that and we have provided our higher prices compared to them.
Saloni Jain
Right. And so respect to our composite cylinder facility, what would be the utilization and how much utilization are we expecting to ramp up after expansion?
Bharat Vageria
I tell you, as far as I recollect my discussion last time, we have a current capacity of 1.4 median cylinder. Depending on the different sizes, we can produce up to 1.2 million cylinder. Because various sizes depending on the requirement of each country. We do manufacturer 2kg, 5kg, 10kg, 20kg. The different countries are there. So in terms of the revenue, I can say we can generate the revenue maximum of 240 to 250 crores from this L2G business based on my current capacity. So utilization you are asking, asking me it is in the range of 85%. It is there considering the working days of the working days and efficiency of the equipments depending on the sizes of the cylinder.
But again expansion. Yes, we do the expansion at the right time. After getting the finalization of 14.2kg cylinders which will be the similar to the current metal cylinder. And when all the gas distribution company like iocl, bpcl, HBCL on the same page and same line for the same size then we will put up the plant for expansion. And we are very clear considering our experience in this business, we the normal expansion time will take four to six months time in a capacity expansion in the gradual way we can do that.
Saloni Jain
Right sir? And so my second question is on the new MOA MOU that we had signed for hydrogen cylinders. Can you talk a little bit about this customer of ours or drone stock? What is the size of the company, how much, how many drones drone capacity they have? And do they have the to integrate hydrogen blenders with the drones or that is still developing?
Bharat Vageria
No, no. I tell you we have signed the MoU for hydrogen cylinder will be developed by SAS. Not. Not there. There is no any know how is required from the drone stock company. They are manufacturers of the drone. They have their own team. They are drone. They have a more than three years experience. More than 50 drones they have supplied in India to the government authorities. Government companies in the various states now. And currently they are using the batteries. So we have very clear understanding. We will do the development of the hydrogen cylinders type 3 or type 4 and that will be used for the drone applications.
And after successful trial after getting the pungence result we will offer this hydrogen cylinder to various non manufacturer. That is not a restriction that the we will do the only for the to to this will be the one of the supplier. Not that we can supply to any drone manufacturers. We are open for that. But that is only for the exclusively sign as far as development of the hydrogen cylinder for drawn applications. Because all other infrastructure is available with them. As far as cylinder manufacturers come cylinder manufacturing capacity is come that technology behind have already.
And we have already in hand approval for hydrogen cylinder of type three and type four. That’s we have.
Saloni Jain
And so if I. If you allow me just one more question. If you could give us just a ballpark timeline of when do we expect to monetize from this technology of hydrogen cylinders that we have.
Bharat Vageria
I can say next financial year you will able to hear something because the six month I am keeping ourselves my expansion is coming from where we are. We do manufacture. We will do manufacturing some hydrogen cylinder. But commercialization point of view. These six months time we. In fact I tell you in the last time also again I am mentioning you and last time mentioned that we are going to have our own one drone. I tell you the drone cost I understood from these people. The drone available in the market from 10 lakhs to 50 lakhs rupees for the various applications.
So. So we are going to have our own one drawn as a child purpose which will be available to our plant. So we can show to the potential customer. These are the drawn available. This how the battery, how the cylinder can be used, how it is flying like that. So we are doing that. I think next financial year will have some commercial value. As far as how much cylinders we are supplying the whole market is taking up.
Saloni Jain
Thank you sir.
operator
Yeah, thank you. The next question is from the line of Rohit from Samadwa Investments. Please go ahead.
Rohit
Good evening sir. Thank you for the opportunity. I had just one question on the. IBC segment and in the domestic market. As for my understanding last one and a half year there has been some pricing pressure overall in the market. With some new competitor coming in and an existing competitor expanding its capacity. I just wanted to know how is. The market in terms of pricing and in terms of the potential volume growth that you see in this segment in the domestic market for the next, you know, one or two years maybe.
Bharat Vageria
You’re talking about the ibc, right?
Rohit
Yes.
Bharat Vageria
It’s called intermediate bulk container, right?
Rohit
Yes. Yes.
Unidentified Speaker
So as far as the IBC is. Concerned, let me just clarify to you. It’s mostly a packaging which is basically used for export of the chemicals etc, you know, so the user base is varying from chemical industries varying manufacturing various kinds of chemicals etc they export it. When you are competing in the industry, the packaging, packaging gets identified. The brand that we manufacture today, GNS is a brand of IBC that we manufacture. It’s a multinational brand. Today I manufacture in all the 11 countries wherever we are present. As compared to that there are just two other, you know, global brands such as Schudz and Mouser.
So among these two, Schudz has just recently started a manufacturing unit somewhere in India. But other than that the local manufacturers are all basically a standalone local brand. They’re not really internationally recognizable. So whenever they have to be talking about an export of the chemicals and you know, packing it in a certain ibc the buyer at the other end would also like to ensure that he uses a right, you know, quality based packaging and which is on which he has a reliance on. So that is where they go for international names and that is how GNX has been able to really get the recognition.
We are able to get that differentiation in the market both in terms of the pricing and also in terms of the preference. Additionally we have multiple location units for IBC even in India because we are a geographically large country. So we have a couple of units in Daman, we have got one unit up north in, sorry in the west in Dhej, we have one unit running up in south also. We also stock and sell in Buj and Calcutta. So we have a fairly wide network to ensure that we are able to capitalize on the market demand and we stay very, very competitive.
So that’s the reason as to why we are able to ensure that the IBC will continue to have a positive. Growth as compared to the other industrial. Packaging products as well.
Rohit
So just has there been any pricing pressure overall in the industry because of just coming into the market or have you been able to retain prices?
Bharat Vageria
No, no, I am very clear. We are quality standard company. We have to maintain our quality standard and we are getting our pricing and remain able to maintain our required margin. Therefore it is counting under the value added product. You know, we have already said it come under the valued product where we have a required margin there. And as my colleague mentioned to you, the growth in the IBC as the export from India is increasing the percentage terms growth in the IBC we are also projecting in the range of 18 to 20% and we are maintaining that growth.
And I am glad to tell you one of my subsidiary company has put up the fully automatic plant in Dahed and where in another plant is also coming up in the Maharashtra also. So IBC business definitely it will there. And company is going to be focused for the export back in India. And that is growth compared to other packaging product. Its growth of 19 to 20% will continue. And in India and overseas put together. I tell you in all the overseas also we have a very good business. Majority of the business as far as IPG business is concerned in US and Southeast Asia and Middle east everywhere.
And as my colleague told me told you that brand with the DNAFT have been created with the hard working of more than 20 years in this product.
Rohit
Fair enough sir. Thank you so much for the elaborate answers. Wishing you all the best. Thank you.
operator
Thank you. The next question is from the line of Ganesh Kumar, an individual investor. Please go ahead.
Ganesh Kumar
Good afternoon sir. Can you hear me well?
Bharat Vageria
Yeah. Yes, Ganesh. Yes.
Ganesh Kumar
Thank you for the opportunity sir. Just have a couple of questions. So we had reports about the 14.2kg. IPG cylinder that we are working with another partner and with Indian oil and other PSUs. So any update on that? That is number one. And the growth percentage of CNG cascades. I think we just did a very. Big expansion completed it. But the growth percentage. I’m not talking about the growth number. The growth percentage seems to have leveled off. I think we have an order book of 150 crore. Just like last year, same time. Yeah. My third question is about what is. The total market value for the Ebixa batteries that we have planned.
Bharat Vageria
Okay, those are. I’m coming one by one. I think first you asked me the 14.2 kgs in India. You know currently we manufacture 2 kg. 6 kg, 10 kg and then 28 kg. Like various sizes are there for the requirement of each of country. 14.2 kg. The so currently in India most popular cylinder which government providing most of the home. You will see 5kg and 14.2kg. Now 14.2kg is the metal cylinder weight which is currently it is there and 14.2kg is the weight of the cylinder. Total put together is 29 kg. The current cylinder government gas distribution company like IOCL, BPCL, HPCL, the V& why I’m using word V because as a time techno and supreme both are supplying the 10 kg cylinder where the weight of the cylinder is around 6 kg and gas is the 10 kg.
So that and 5 kg also there. So two type of cylinder we are supplying now the 14.2 kg we are under development I mentioned in the last call also so where the D design should be the same process is the same so that all government3 companies can use the same and accuracy is there so that development is under the. I mean again I can say it is need six months time which includes the design approvals tool development Then finally materialize and do the expansion plan Expansion plan I mentioned just 10 minutes back to somebody that expansion plan we will decide after receiving receiving the large size of orders for the 14.2-kg cylinders but till in the intervening period we have given the assurance by continue to the buying of the 10kg cylinder which presently supply so that is as far as 14.2 wheel is concerned now I have not considered any capex plan for the 14.2 K syndrome only we have considered in our product development cost only we have included in our normal automation and re engineering expenses now you are asking me CNG I mentioned that CNG expansion yet to do capital expenditures amount including advances already remedied now the expansion will come complete in the I can say in the next 60 days time so it is made available for the commercial business in the second half of this year CNG market is big order booking I tell you we mentioned also the currently we are supplying that CNG cylinder Not only the cylinder we are supplying completely cascad of with the different sizes of a cylinder But CNG market you know automotive sector is a very big market is there? We have not yet explored that possibility we have already approval in hand for the 60 liters CNG cylinders for the automotive application that market also we will capture in the next fiscal year after completing the expansion now you are asking with the Eziksha business As I mentioned to you in our projections we have taken business of 35 to 50 crore in my total energy storage devices business of around 125 to 150 crores now Elixir batteries company has developed performance is very good we submitted our sample to the government nominated agency which is we are expecting that approval because testing There is a certain minimum time required for the testing in the government system so we’ll get that approval also in the next 30 to 40 wait a time approval in hand but again I am think one thing clarify certain in the secondary market we have already started seed marketing because they don’t need the government certificate approval they can use because it’s a very very good performance batteries and as I think we are supplying to the secondary market that these Rickshaw batteries in certain states we have started supply of this elixir batteries.
But yes market is very big. We have done this product development with a small investment of of around 4 crore rupees. And we did develop these products. This is the. So yes in the period ahead if you would like to expand in each batteries. I’m. I’m glad to tell you that this is. And they use in the rickshaw for four batteries is used and approximately one battery cost is in the range of 8,500 to 9,000. So total rickshaw one set of the batteries is 36,000 rupees. And that four batteries can run 120 kilometers in a day.
So wet is normally rickshaw runs in a day 120km. So that’s the way of the as far as e rickshaw is concerned. I hope I answered your queries.
Ganesh Kumar
Yes sir. Thank you. Thanks a lot. I’ll join the queue.
Bharat Vageria
Yeah. Thank you.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand over the conference to management for closing comments.
Bharat Vageria
Yeah. Thank you very much for having your patience and listening to the management commentary on the Q1FY26 result. Thank you to team of Motilal Oswal who has introduced us and arranging this conference call for update of the fy. And one thing I’m telling you. We are committed to create the value of the investor by maintaining the double disease growth and achieving the roce of around 20%. Thank you very much.
operator
Thank you. On behalf of Motilal Oshwal Financial Services limited concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Bharat Vageria
Yeah. Thank you very much. Thank you.