Triveni Turbine Ltd (NSE: TRITURBINE) Q4 2025 Earnings Call dated May. 12, 2025
Corporate Participants:
Nikhil Sawhney — Vice Chairman and Managing Director
S Narayana Prasad — Chief Executive Officer
Sachin Parab — Chief Operating Officer and Head International Operations
Analysts:
Rishab Barar — Analyst
Ravi Swaminathan — Analyst
Amit Anwani — Analyst
Mohit Motwani — Analyst
Teena Virmani — Analyst
Mahesh Bendre — Analyst
Chirag Muchhala — Analyst
Amit Mahawar — Analyst
Sarang Joglekar — Analyst
Nidhi Shah — Analyst
Prolin Nandu — Analyst
Vimal Sampath — Individual Investor
Harsh Tewaney — Analyst
Presentation:
Operator
The conference is now being recorded ladies and gentlemen, good day and welcome to Triveni Turbine Limited Earnings Conference Call. 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 Start and zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Dishab from CDR India. Thank you, and over to you, Mr Brah.
Rishab Barar — Analyst
Thank you. Good day, everyone, and a warm welcome to all of you participating in the Q4 and FY ’25 earnings conference call of Turbine Limited. We have with us today on the call Mr Nikhil Soni, Vice-Chairman and Managing Director; Mr SM Prasad, Chief Executive Officer; Mr Sachin Parab, Chief Operating Officer; Mr Lalit Agarwal, Chief Financial Officer; and Ms Subi, Investor Relations and Value Creation. Before we begin, I would like to mention that some statements made in today’s discussion may be forward-looking in nature and a statement to this effect has been included in the invite which was made to everybody earlier. I would now like to emphasize that while this call is open to all invitees, it may not be broadcasted or reproduced in any form or manner. We will start this call with opening remarks from the management, following which we will have an interactive question-and-answer session. I now request Mr Nikhil Swani to share some perspectives with you with regard to the operations and outlook for the business. Over to you, Mr Swani.
Nikhil Sawhney — Vice Chairman and Managing Director
Thank you very much, Rishabh, and a very good afternoon, ladies and gentlemen. Thank you for joining the Q4 FY ’25 earnings call for Turbine Limited. At the outside, I’d like to welcome you to what has been another record quarter, the 17th in a year of 17th quarter of growth for the company. And this has been the highest-ever annual revenue, EBITDA PAT and order booking, along with the record closing order booking for the company in FY ’25. We had the highest-ever revenue of INR20.06 billion, an increase of 21%. We had the highest-ever EBITDA of INR5.18 billion, up 36% year-on-year with a margin of 25.8%, which is an increase of 280 basis-points year-over-year. We also had the highest-ever profit before-tax at INR4.89 billion, up 37% year-over-year with a margin of 24.3%, which is an increase of 2.270 basis-points year-over-year as well as the highest-ever profit-after-tax at INR3.59 billion, an increase of 33% year-over-year. All of this was done, of course, based on the order booking that we had not only during the year, but in FY ’24. And so again, we are very proud that we have had the highest-ever annual order booking of INR23.63 billion during FY ’25, an increase of 26% year-over-year. And this has left us with a record outstanding carryforward order book as of the 31st of March 2025 of INR19.09 billion, an increase of 23% year-over-year. Investments including cash stand at INR9.87 billion, an increase of 12% from, 31 March 2024. I’ll give you a little bit more of an out indication as to where our cash stands given the balance sheet and the execution that we had during the month of March. The Board has also recommended final payment dividend of 200%, which is INR2 per equity share for the financial year FY ’24-’25, which is subject to the approval by shareholders, but this is in addition to the interim dividend of again of 200%, which is also INR2 per equity share of INR1 each. Order booking for this financial — for this current year has grown very well, as I’ve already said by 26%, but the product order booking growth has grown by an impressive 38% to INR17.41 billion in FY ’25. The key drivers for growth in-product order booking were the finalizations of orders in the renewable energy sector, industrial clients for industrial power generation and heat, power producers and API turbines. Domestically, order booking was supported by the company’s strategic foray into the carbon dioxide energy storage solution, which I’ll give more indication about as we proceed. In the API segment, the inquiry base has expanded geographically, resulting in order finalizations for both drive and power turbines across the Middle-East, Southeast Asia, Central and South America and Europe. As a result, the company has achieved its highest-ever annual product order booking for the fourth consecutive year, representing a key milestone in its pursuit of sustainable innovative solutions. This also gives an impression of how we — the company is able to introduce new products and solutions to be able to withstand the volatility that exists in end fixed capital formation markets. The company continues to see a good international demand, which is reflected in the export order booking, which has grown by 23% year-over-year to INR12.59 billion during the year. This includes orders secured across broad power ranges from key regions, including the Middle-East, Europe, North-America, Southeast Asia and Africa. The total consolidated outstanding order book stood at a record INR19.1 billion, which was higher by 23% compared to the previous year. The domestic outstanding order book stood at INR8.2 billion, which grew by 9% as compared to the previous year and the export outstanding order book stood at a record INR10.9 billion, which is up 36% year-over-year and contributes to 57% of the closing order book. The inquiry pipeline for both product and aftermarket segments remains very robust and is globally diversified. In FY ’25, the international inquiry book has grown by over 30%, while the domestic inquiry book has grown by an even more impressive 120%, providing a strong visibility to the coming year. By diversifying across geographies, product market and aftermarket segments, we also aim to mitigate the risks associated with market volatility. While the inquiry book is extremely robust, the market in India has declined as we calculated for FY ’25 by 10%. This was — while we were anticipating Q4 to be more robust in terms of domestic order finalizations, the robust inquiry level of inquiries gives us good confidence that sectors will come back into the ordering a to our order book within the coming quarters. A lot of — a lot of our growth is also driven by research and development, which is a key focus area for the company. We continue to develop new turbines for our historic ranges of smaller turbines as well as for medium and larger range turbines, which are required for variety of different applications, including for API as well as for geothermal and other niche sectors. But at the same time, the higher megawatt categories also provide us with greater visibility into the broader market that we can get our products towards. We also continue to develop new and innovative solutions, utilizing carbon dioxide as a means for fluid transmission, which includes an order which we have received along with our Italian partner, Energy Dome with NTPC, which is for a INR290 crore order for 160 megawatt-hour long-duration energy storage project at NTPCs good super-critical thermal power plant. We’re extremely proud of this order as it not only allows a validation of our technology. We will of course need to work with our partner here as well as with the client to ensure a seamless and smooth installation, which will then allow us to validate this in the Indian market so that we could operationalize this as a product segment going-forward. The company has also, as I’ve spoken and spoke about in our previous conference call, we’ll be investing into expansion of certain international subsidiaries into further investments into research and development and testing infrastructure, as well as adding a new bay in its Sonpura facility. The total capex forecast for this current FY ’26 is about INR1.65 billion, which includes a carry-forward of about INR4.4 — sorry, INR8.44 billion from the previous financial year, which is FY ’25. The capex will not only allow us to augment certain capacity in terms of our assembly as well as manufacturing expertise, but will significantly expand our research and development and testing infrastructure which is required. Apart from the routine capex, which is required for maintenance, the — there will be a further capex in our international subsidiaries to cater to what we foresee to be growth in those markets. People continues to remain the cornerstone of our organizational excellence and through a focused approach to internal talent development, external hiring as well as continuous learning, diversity as well as industry collaboration, we are building a future-ready workforce aligned with our customer-first mindset and innovation-driven agenda. In FY ’24-’25, Turbine successfully integrated its talent strategy with business priorities, strengthening capability, ensuring leadership continuity and setting a strong foundation for sustainable future growth. As a globally trusted energy innovator, Triveni Turbines is well-positioned to sustain healthy performance in the near-term after delivering a strong performance yet again in FY ’25. This outlook is supported by a robust order booking in API as well as the industrial power generation turbine segments, as well as the market expansion in high-potential regions such as the United States. A robust domestic supply-chain further enhances competitiveness and ensures business continuity. The aftermarket business also shows promising growth prospects bolstered by an expanding range of offerings, including spare parts, services and refurbishments, designed to cater to a broader customer-base of rotating equipment, encompassing steam turbines, gas turbines, utility turbines as well as geothermal turbines. The company’s expanding presence in the global market along with the increasing demand for renewable energy, energy efficiency, waste-to-energy and decentralized power generation solutions continues to present significant — significant and substantial growth opportunities for the company and we are confident in leveraging these opportunities, both domestically and internationally, which will enable us to maintain the growth and profitability in the coming years. To give you an idea on some of the ratios that the company achieved in the current year, the company achieved an EBITDA to sales of 21.8% without including cash. Our PAT to sales was at 17.9% and our return-on-equity annualized on-book equity was 33% and without investment in bank balances, return-on-equity was 235%. While the return on capital employed annualized was at 45% and without a return on invested capital without investment in bank balances was a very impressive 307%. Our asset turnover continued to be maintained at about 5.9% and a current ratio of about 2.2%. The balance sheet of the company remains robust. In the quarter-ending of Q4 FY ’25, we had certain backending of orders which happened in the month of March, which you’d see from a balance sheet where we have higher receivables as well as certain other current assets. Both of these are short-term in nature and would have already been reversed to a significant extent in the month of April to return to our low receivable metric. The company has grown very rapidly in the last three years. Between FY ’22 and FY ’25, the revenue of the company has grown by 2.36 times with a CAGR of 33% and in the same-period between FY ’22 and FY ’25, the PBT has grown by 2.82 times with a CAGR of 41%. Given our growth of order booking of 26% in FY ’25 as well as the ending order book, which is 23% higher, we are confident of growth in the coming year. As what happens with order booking and as well as turnover, some of this growth will be lumpy. But having said that, our inquiry book and our order book gives good visibility of growth for the coming year and our inquiry book gives a good visibility of growth for the coming future. This coupled with our innovations in new products — new product introductions and new technology introductions, which will happen in subsequent quarters and subsequent years, gives a good visibility of the company to sustain its remarkable growth in the coming years. Of course, maintaining these high-growth rates will be difficult, but we have full faith in the management who has performed exceedingly well and we are happy to take your questions now. Thank you.
Questions and Answers:
Operator
Thank you. We will 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. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Ravi with Avendus Spark. Please go-ahead.
Ravi Swaminathan
Good afternoon, sir. Congrats on a good set of numbers. My first question is with respect to the APA turbine market. So essentially, if you can talk about what is the size of the business right now, what is the size of the industry and what kind of scale-up in terms of business can happen over the next two to three years and how — and why it can happen?.
Nikhil Sawhney
Okay. Before I ask Prasad, our CEO to comment on this, we don’t give specific market numbers, Ravi, as you’re aware. But having said that, as we’ve talked about over the last several quarters, there are very distinct avenues for growth for the business, which is firstly to maintain its market-share in the smaller turbine market, which is below 30 megawatts, at the same time, increase market-share in the higher megawatt space, which is above 30 megawatts. And while a traditional growth segment of the business has been energy efficiency and renewable energy-based power generation, which continues to be the mainstay of the business, API as a market segment has increasingly become a key growth driver to the business, not only in FY ’25, but also it showed a little bit in FY ’24. Going-forward, we aim to increase our focus on this market segment because not only is it focused on customers who demand exceeding the high-quality, high-efficiency, high technologically a high-technology turbines, but also it is a market segment that provides a certain degree of reliable and routine investment. This is double down — this is also reinforced by the fact that we’ve seen a — while oil prices may have come down, the long-term investment both into oil diversification as well as into gas and methanol and other forms of downstream production for the oil integrated majors continues at a robust pace. And so the inquiry book also reflects that in terms of the growth, both domestically as well as internationally. If we look at the — if we look at — look at it from a perspective of what segments will continue to exhibit the most amount of growth as far as the growth in our order book goes, yes, you’re very right, API will be a market segment, which will drive growth in our opinion, more than a energy efficiency and renewable energy. But renewable energy will continue to maintain the largest segment of demand for the company’s products. Prasaj, would you like to comment on Ravi’s question?
S Narayana Prasad
Yes, sir. Yes. So good afternoon, Raveen. So in continuation to what VCMD shared that, yes, API inquiry pipeline is quite robust and we are quite bullish as we communicated in earlier conferences also. So we have been in the approved vendor list of major refineries, petrochemical complexes across the globe and even last year — last financial year, some more positive results we could able to gain in terms of getting into the approved vendor list, which has given a strong inquiry pipeline. We are quite bullish because we are there in the drive turbines as well as into the power application of the API machines. With that, it’s going to be a strong growth driver for us going-forward.
Ravi Swaminathan
Understood. My second question with respect to the CO2-based energy storage system. And so essentially, FY ’25, we had bought a single order from NTPC could be how replicable is such kind of orders? What is the visibility in terms of scale-up of this business? Can they — can this be replicated in more power plants, both NTPC and non-NTPC related business. And if you could talk more in terms of the profitability angle also because how much component value-add that we can do in that project and how much would be outwardly sourced from other external parties. So because of that how the profitability is likely to pan on, is it likely to be in-line with the overall company-level profitability, if you can talk about that?
Nikhil Sawhney
Yeah. To address it firstly on the margin front, well, firstly, this is a new sort of project for us in a sense. It’s a little bit more than just the product being sold, but the margin expectations are in-line with our domestic margins. Having said that, this is a developmental project, which we are working closely with our partner, a international partner along with the client and we would not be entering into this if we didn’t see the potential for this to scale as a business. This is a much more — the opportunity here is very solution-oriented to provide a solution for long-duration energy storage based on self-critical cycle of carbon dioxide. As you know, Ravi, we’ve been also developing transcritical as well as supercritical cycles. So the way as to what is replicable going-forward, we’ll have to see based on the economics and the reliability to customer. And so before I comment as to how scalable this will be a — for a revenue perspective for turbines, we’ll have to just wait-and-see a little bit. We’ll have to see certain factors in terms of how the economics work-out, how the reliability works out with the customer. We’re obviously very hopeful that this would be a great solution for our customers. But more than that because you see the current form of providing either chemical-based battery storage through lithium-ion or kinetic-based flow or pump storage hydro as energy storage options. Thermal storage is also extremely important. And so the cost parameters already make sense. We just have to see if the rest of it can also work-out. Principally, there’s no reason why there should not be an alternative in our basket for energy storage for the country as well as globally. But at the current point in time when we are forecasting and giving — giving a forecast for our inquiry growth, et-cetera, it does not include this as a market segment. Having said that, when you look at our INR290 crore order in this last — in this Q4 and you — if you say how much of that — how much of it was in the historic turbine segment versus the CO2, you also should keep in mind that we did take-out some orders because of the high order booking in this quarter, we’ve cleaned up our order booking by taking out approximately INR140 crores from our order book of slow-moving orders, which we have advances of. And we’re confident because we have advances that these will come back-in the medium-term. But from the near-term visibility we’ve taken it out of our order booking. So this again gives you an idea about the quality of our order book in terms of what can be executed. That coupled by our book-and-bill gives us good visibility for the year. In terms of what you said in CO2 value addition, the company’s scope is again in excess of 50% directly. And so we have good control on cost. Ultimately, we are also viewing this from a perspective of putting our best foot forward. So it’s a little premature for us to be able to tell you how scalable this will be as a business. I would imagine by Q3, Q4 of this year, we should be able to give you a little bit better idea as to where it stands. But needless to say, this has come quicker than we thought it would in terms of a market segment for turbine. And we are quite optimistic that in — that it will become a distinct market segment for growth in the very near-future?
Ravi Swaminathan
Understood. And my third question is with respect to the US for a given the tariff-related ups and downs which are being seen from that country, how do you think about the scaling up of business there, say, over the next two to three years, is it likely to be largely after-sales related work there and then we can think about the product exports, how to think about that?.
Nikhil Sawhney
So you know, Ravi, you become many different questions within that one question of yours. Let me say, as we currently stand firstly, as you’ve seen, I don’t think you have a detailed consolidated balance sheet with you as just as yet or it’s there, this would be said. But we had in excess of about a INR20 crore INR25 crore loss in that subsidiary. And so the results that you’re seeing are post that loss, which has been an investment into that enterprise. And we believe that enterprise will show good performance and this is backed by our belief of what we’re seeing from inquiry generation. Initially, we thought that we would use the US subsidiary to cater to our growth in the Americas, which is both North and South America. Given the current uncertainties, we are — and given the customer preferences, we are actually booking Canadian and other orders directly from India. But it — but the marketing efforts are still done from the US subsidiary. So looking at the US subsidiary performance directly is a little — it will take a little bit of time for it to show properly on the consolidated or the individual P&L of the subsidiary. But suffice to say that we believe that there will be going to be a good growth market both from the aftermarket refurbishment segment as well as a new product sales. We see the API market in the United States as well as distinct geothermal and industrial power generation, including energy efficiency as key growth drivers. The US itself has a $25 trillion economy with the capital base that it has presents many opportunities., do you want to give a comment on the US subsidiaries and how we see it? And maybe Sachin, you can also comment on the capacity augmentation in the US.
S Narayana Prasad
Yes, sir. So yes, as you mentioned, the pipeline is strong and people started accepting our brand there. And even recent uncertainties, otherwise by this time, we would have gotten a little more success from Canada and all on directly on our US entity, but those orders got directly on banks Bangalore because of those territory shows. Otherwise, we are quite bullish because the way how the inquiry pipeline for both refurb services, that is aftermarket as well as product getting built-up, especially from geothermal pulp and paper, which are the strong segments in that market. And the competition also basically for the same sort of segments, but they also have the same disadvantages of same sort of advantages when it comes to the tariff structure. So that way, we are not really concerned on that. We are quite bullish on that. Maybe at some point.
Sachin Parab
Good afternoon. As our Vice-Chairman has mentioned, we are going ahead with our expansion plans in the United States. The capex that we had planned, we are on-track. There is a little bit of a deferment just because of timing issues, but we are going ahead and we are creating the flexibility in our infrastructure there. So depending upon how the tariff structures take — take shape, we would have the flexibility to be able to even make the wise there. So relatively speaking, with our competition, we are well-poised to tackle the market. The potential is good, tackle the market the way the tariff structure shapes up and be able to go-ahead with our long-term plans. Because of these changes in the macroeconomic situation, yes, there might be a little bit of a delay in terms of expanding the way at the rate at which we want to. And as we mentioned already, the Carendian orders and some other orders, we have started taking on the Indian entity. But for sure, the US market itself for aftermarket and product is very promising for us. Thank you.
Ravi Swaminathan
Thank you. Thank you very much.
Operator
Thank you. MR., please rejoin the queue for more questions. A reminder to all the participants, please restrict yourself to two questions. Next question comes from the line of Amit Anwani with PL Capital. Please go-ahead.
Amit Anwani
Hi, sir, first of all, congratulations for the strong set of numbers. My first question on the international markets. You have highlighted in your opening remark about expanding in global markets and we have been seeing a very strong performance from exports and the inquiry pipeline is also very strong. Just wanted to understand, while expanding in-markets, what — what is our strategy? Are we — how are we dealing with the competition there or is it the market which is already very conducive for our products there and what sort of products are highly acceptable for Triveni in the global market. So we wanted to understand more color on expanding global markets and how we strategize that. Okay. Thank you.
Nikhil Sawhney
Good question. You see when a — what happens with — in a capital good space is the best branding that you have for from new order perspective is successful installations of orders by themselves. So as our installations grow internationally, that allows us to gain better customer acceptability and confidence on our product ranges. This stretches not only in our historic smaller ranges, but also in the higher megawatt ranges. And we believe, especially with the higher megawatt ranges and with specialized API or other applications as more insights are put up for our customers, we will gain better traction. That coupled with our initiative to be closer to customers through both our subsidiaries as well as a more focused sales and market initiative will also bear fruit in allowing us to capture greater global market-share. So this is something that we’re using as a cornerstone of our international expansion strategy. But expansion is not — these are not CapEx-related. It’s more a question of how can we be more relevant to our customers so that we have a higher chance of conversion of every inquiry into an order for us.
Amit Anwani
Yes, sir. Secondly, given the very strong inquiry growth, which we have seen in domestic and international and very strong top-line growth this year as well with good margins, can we expect similar to continue for FY ’26 given there is a good order book and inquiry as well. Just wanted to have some color on the growth trajectory since we are expanding still for the FY ’26 year.
Nikhil Sawhney
Yeah. Yeah. But actually if you look at it from a — our revenue grew by 21% year-over-year and our order booking has grown by 26% year-over-year with our ending order book at 23% higher. So it gives you an idea as to the growth that is possible for the coming year and we’re quite confident to be able to achieve that. What you do — what you — what I think you would also find in our balance sheet is that because a lot of the orders were back-ended, actually we have a lot of goods in-transit which were not able to-be-built directly in March itself, which will come in April. And so these are things that we already off to a decent start. Q1 will be a little volatile from the company’s perspective. There will be there will be growth inside market segments. But I have to say that when we look at the full-year and our current obligations to fulfill our customers’ expectations in delivery, we are confident of growth in revenue of a — of a good manner in FY ’26 as well.
Amit Anwani
Right. Lastly, amid all this geopolitical and tariff was going on, any challenges which you faced with can see like your commentary has been quite commandable and positive. So anything which was
Nikhil Sawhney
The fact is that as you can see that the domestic market has sort of declined year-over-year, even though inquiry levels remain robust. So the uncertainty is causing deferment of order placement, even though these orders do need to be based on either other CapEx or other commitments that have been taken, be it financial closure of projects, et-cetera. So I think what you can say is right now is that there has been a elongation of order finalization timelines. And that is something that is a concern. So — but we’ll have to wait-and-see if this is something that is a 1/4 thing or something that continues for multiple quarters.
Amit Anwani
Thank you so much for answering my question.
Nikhil Sawhney
Thanks. Thank you.
Operator
Thank you. Next question comes from the line of Mohit, Tara Capital. Please go-ahead.
Mohit Motwani
Hi, am I audible? Yes. Yeah. Thank you for the opportunity. My first question is on one of the charts in the presentation, which shows that how the zero to 100 megawattle steam turbine market declined from 8.7 gigawatts to 6.2 gigawatt — 6.9 gigawatts and we have grown our revenues by 21%. I understand this is a function of increase in wallet share, market-share. Can you give us some idea on how much has realized — how much has realizations improved on a year-on-year basis from FY ’24? If not in the company-level, at least an industry level, if you can give some sense on the per megawatt realization, how have has this?
S Narayana Prasad
The fact is we manufacture a customized products. So every order is distinct in both in pricing as well as cost. The features that a customer may require don’t allow — don’t — it doesn’t enable us to give a very generalized number. But having said that, over a period of time, you’ve seen base material prices rise as well as the fact of overhead costs. And so there has been an increase in costs in the market segment for us as well as our competitors. But as the market size grows, I mean, well, in — you’ve seen an expansion in margins. In the distinct market between FY ’24 and FY ’25 as you pointed out in terms of decline in-market, there’s a lot of nuance in that number. We give that number to give a broader indication of where the market sits. But having said that, we’re quite — if we take-out an eliminate markets in which we don’t participate directly, which is China and Japan, we think that the market is quite robust. Still, our inquiry levels are at record levels. And so we think that presents a distinct opportunity for us and this is despite the volatility that may have been there for the last three, four months anyway. So we’re quite optimistic, but the our gain in revenue despite the market decline is sort of contributed by the fact that we are approaching newer market segments in growth and achieving a higher market-share than we have in the past. And I think that’s the way that you look at it that we don’t capture double the entire market. And as we do more of that, the more macro number will be a little bit more meaningful for us.
Mohit Motwani
Sure. That’s helpful. And one more question was, when you said maintaining such high-growth rates could be difficult, is that baking in some conservatism on the export side given you have seen some moderation in the export orders in the last two quarters. I understand these are lumpy in nature. Just want to get your perspective on export orders because I think this was one of the big opportunities for us and have been rather if you can elaborate a bit on more on that?.
Nikhil Sawhney
No, I think the fact is that there is some base effect on some of these numbers as well. But — and of course, as you pointed out, these are lumpy. Exports will continue — it will continue to remain a mainstay for our growth because not only does it allow us to be relevant, it allows us to benchmark our competitiveness and the fact is ultimately, it’s a much higher-margin segment for us. And so we’re quite confident that the export market will continue to be a key driver of growth for us and it’s — it’s actually — we need the domestic market to revert. That’s — that would be a bigger thing for us. To just clarify your point that I think that you said that we may not be able to maintain the high-growth rates. The reason I said high-growth rates is because we’ve had a revenue growth of 33% CAGR over the last three years and profit growth of 41%. Now if you look at those numbers, yes, those are very-high numbers to achieve on a higher base. But having said that from — we have very-high expectations of growth of this — on our business, both in profitability as well as revenue, given the newer market segments that we’re entering into, given the fact that we already have a much a higher order booking levels as well as inquiry book level.
Mohit Motwani
Thank you.
Operator
Thank you. MR. Motwani, please rejoin the queue for more questions. Next question comes from the line of Tina Virmani with Motilal Oswal Financial Services Limited. Please go-ahead.
Teena Virmani
Hi, sir. Congrats for a decent set of numbers. My question is a follow-up question in-line with the previous participant on both domestic as well as on the export order inflows. So we’ve had a fairly decent inflow numbers on the domestic side. But if you move that one large order-based on CO2, overall domestic inflows have declined on a year-on-year basis. So when can we see the base orders for to start ramping-up because inquiry pipeline has been fairly strong. But what is stopping this inquiry pipeline to get translated into order inflows? And also which are the sectors and sub-sectors within this inquiry pipeline which would materialize first and then which would materialize later. That’s my first question, sir.
Nikhil Sawhney
Yeah. So to put it in perspective, in Q4, we did take-out about INR140 crores of orders as well. So if we look at that, actually, there’s been a growth in our order booking. Now having said that, you’re right, it’s not to our expectations. We did expect domestic orders to be higher than the current level. There is deferment of orders. I’ll ask to give you an indication as to where he sees orders coming in and which market segments on the domestic side as well as internationally. The — Prasad, do you want to comment on the inquiry levels and where we see
S Narayana Prasad
I will take it to add this. So domestic wise, yes, in Q4, what we expected not materialize because the last year overall domestic market is a muted market. We know that last year 3/4 — two quarters for a general election, then another major segment of disclory that is in Maharashtra. There is also election in the 3rd-quarter. But we expected Q4 will bounce-back. But even though finalization is not took place as we anticipated, but inquiry pipeline started building up. That’s why if you see, especially the inquiries from process cool generation is a strong pipeline about almost — it is a double compared to the last year. So following with steel, cement and followed with oil and gas. So that way, if you see more or less every industrial segment pipeline is quite bullish because last year, whatever orders not got finalized, majority of those things, we are hoping that will come for finalization pattern as the started building up. So we are quite confident. Jason, we are also carefully watching the scenario, the current tensions whatever there, hopefully things should improve apar.
Teena Virmani
Sure. So these process cogen steel cement, they are the — they can be the first one to respond once this macro uncertainty resolved?
Nikhil Sawhney
Each order is distinct by itself. So you know these — I don’t think you can generalize in terms of segments. What we saw because of the unviability of steel last year FY ’25, those orders were muted in Q3, Q4 with some safeguard duties coming back-in, those things — those segments will come back. So there’s a little bit of fluidity in individual segments based on their own economics. You will have a consistent demand, which happens from cement based on their capacity expansion for waste recovery as well as for brownfield greenfield expansion turbines. In other segments, be it in recycling, which is a growth market segment there both in paper and paper as well, plastic recycling is a consistent market segment. So is a — so is the food processing sector, which requires a different sector bank. The market segments like pharma and chemicals are a little more muted, but the distillery market seems to be back with some robust demand?
Teena Virmani
Got it, sir. And my second question is related to aftermarket related opportunities in your target geographies, be it be it Europe or US and where do you see this share of aftermarket as a percentage of revenue over next few years, it can be broadly in the same range of around 30%, 32% or can it move higher?.
Nikhil Sawhney
No, you see a — we had a very strong product sales growth and it’s because of that, that you have — that some of the growth in the aftermarket is getting overshadowed, but the aftermarket is growing in a very robust manner. As you can see, the growth in our EBITDA margins is given by the fact that we have a very-high — very-high margin aftermarket orders, both from the refurbishment as well as the spares and servicing segments. The refurbishment segment and specifically our contract in South Africa has moved up the value chain to a higher value-added a contract in which the revenue would be slightly lower. And so therefore, the margins — and the margins therefore higher. So while it may not contribute more on the revenue side and therefore percentage of aftermarket as a percentage of sales, but it is a higher-margin. And so now if you blend it all at the end-of-the day, we’re quite happy with the 33-odd percent aftermarket as a percentage of sales. Yes, we’d expect it to rise by a percent odd every year consistently so that — so that it’s contributing more because we believe that the refurbishment segment in specific has a very-high growth rate potential but we’re happy at the level that it’s at right now because ultimately, we don’t want to sell excessive spares to our customers also a — so because ultimately, we want them to be able to buy more products from us and return. And we have a very-high customer repeat customer-base. And so balancing that strategy is also very important.
Teena Virmani
Got it. Sir. Lastly, on this aftermarket for US geography, can your capacity expansion or the strategy for growing in US will be oriented more towards aftermarket or it will be more oriented towards our product sales given the current tariff-like situation.
Nikhil Sawhney
So the capacity is fungible as Sachin had said. So the fact is we are approaching both market segments equally vigorously and with as much focus.
Teena Virmani
Sure, sir. Thank you. I’ll come back-in the queue.
Nikhil Sawhney
Thank you. Thank you very much. Thank you.
Operator
Thank you. Next question comes from the line of Mahesh Bendray with LIC Mutual Funds. Please go-ahead.
Mahesh Bendre
Hi, sir. Thank you so much for the opportunity. Most of my questions have been answered. Sir, order inflow last year grew by 26%. So given the current inquiry flow, we’ll be able to maintain this kind of growth rate for this financial year.
Nikhil Sawhney
So you’re putting sort of our ambition is, of course to exceed it, but we’ll have to wait-and-see how finalizations happen. I think that a growth of 26% given the fact that we have book-and-bill within the year, our spares and services have a — have a lead-time to execution of anywhere between two to four months. And so order booking for that segment can go all the way up to Q3 — end of Q3 for it to be billed within the same financial year. And for smaller rated turbines, even Q1 a part of Q2 order booking falls into the execution. So despite the book-and-bill overall order booking, we are — given the inquiry levels, we’re quite confident that we’ll be able to pick-up orders, which will give us good growth in the coming year, but also visibility for growth in FY ’27.
Mahesh Bendre
Sure. And so what will be our capacity utilization as of now? You know, we don’t really work on that number because we don’t have much capital employed. But having said that, we’re currently operating on a two-shift basis and we don’t see capacity as a real constraint. We are adding a bay, which is more from an assembly perspective and some manufacturing capacity, which is part of our capex plan for the current year, which may spill-over into FY ’27 a little bit also and which will augment all of this. So we don’t see that as a release — as the biggest issue.
Operator
Thank you. MR. Bendray, please rejoin the queue for more questions. Next question comes from the line of Chirag with Centrum Broking. Please go-ahead.
Chirag Muchhala
Yeah, hi, sir. So sir, the question is on the Europe market and more specifically UK since that has been historically one of our good markets and recently India and UK signed that FDA. So just wanted to know that you know, will this be — I mean, very hopeful for us in any way is currently whatever our market-share or competitive position is, are we relatively negatively impacted by some of the taxes which will go over? Just your thoughts on this, please.
Nikhil Sawhney
No, we’re not either negatively or positively impacted by it. To the extent that it builds more confidence in the British economy and allows them to have more capacity expansion and capex, that will benefit us. But I don’t know if it will. So I think it’s just neutral. Most of these FTAs are neutral to us because our product is not heavily taxed as a dutable item both ways. You know, imports into the country are pretty much at zero duty anyway. So it doesn’t help either way. We just need more demand to come into that market segment. The UK presents some distinct opportunities in the municipal solid waste incineration and energy efficiency green power market, that’s about it for right now.
Chirag Muchhala
Okay. And sir, second is on just a follow-up question on the capacity. So whatever capex that has been lined-up over the next two years, so in terms of turbines manufacturing both in India and possibly in US with — I mean, what would be the quantum of increase in our capacity that we are planning over the next two to three years maybe over a medium-term?
Nikhil Sawhney
So you know, actually the given a high asset turnover, return on capital, but like I said with the last question as well, we don’t have much — we don’t have much capacity employed. And so when you look at it in terms of how scalable the business can be given our current balance sheet of investment and what are we planning in terms of expansion in Bangalore as well as in the United States, what you have to view is the fact as to how many ships you’re working and how scalable is that. So this current point in time when we’re working a little bit less than two ships on operations, that has possibility of expansion by itself more than the fact that we have further utilization of assembly capacity. What we’re really trying to augment here is more testing ability assembly capacity. Now assembly capacity can be constrained at times, but at the current point, we are able to balance and manage in excess of 300 plus 350 odd turbines. Our endeavor to sort of give a little bit more capacity is so that we don’t end-up bottlenecking our operations, which happen at times like for example, in this March, you know, and so it’s worth not having those bottlenecks. And so capacity really isn’t a constraint on an annualized basis, but maybe on a monthly basis, there is some issues that we may need to streamline.
Operator
Thank you. MR., please rejoin the queue for more questions. Next question comes from the line of Amit Mahawar with UBS. Please go-ahead.
Amit Mahawar
Nikhil. Hi, congratulations on great results., my first question is, if you see fiscal ’25 was a year of great performance on product exports, whether it’s orders or P&L, but services, I’m not judging services, which is flat in orders this year, but we want to throw some light here on how will this grow in ’26 and ’27 because you are building a team even for the North American market? That’s my first question. Some color on after-sales.
Nikhil Sawhney
Yeah. No, after-sales is an extremely important part of our business for two reasons. One is that firstly, it’s a high-margin segment, but more than that is the fact that it enables customer satisfaction and allows us to provide the services that our customers need, which confidence is what leads to repeat orders. So it’s very, very important from a customer satisfaction perspective. Also, the — there are two segments to growth in the aftermarket. One is our spares and services, which will grow based on the installed-base growing. As our installed — and you sell spares really after some degree of operation of the turbine. So given the growth that we’ve had over the last several years, those products like maybe two, three years which have been commissioned two, three years ago will now start coming back and come into the ordering for spares. And so we believe that will continue, but that growth rate will be — as I say, it has to be done in a manner that we have to take the customer along with us. We can’t just be selling excess. The real growth rate for us, which has somewhat disappointed where we have much more potential to grow quicker is the refurbishment segment. And in segments like that, which we think can drive a lot of the quick revenue and quick wins for especially the US market. And so we’re still very hopeful this means expansion not only of our sales and marketing network to be able to cater to the varied requirements that may happen in the refurbishment segment, but also technologically, we need to be relevant and be able to provide the solution that customers want. So there’s investment in people that’s required to allow that market to grow. But we’re quite hopeful that that’s a — from a long-term and medium-term perspective, this is a market segment that we can quite confidently say will continue to grow for.
Amit Mahawar
Sure. So you’ve been very measured on your investments in very select markets, for example, SADCs where you had less than four years payback that gave you confidence to enter one of the world’s largest market in North-America. And again and maybe Prasadin can chip-in here if you — what is the size of API, services and large machines that we are targeting in ’26, ’27. What I mean is in your addressable market with changes now, talking about particularly one to two years, long-term, I understand it’s a very, very compelling market and there is a scope for consolidation, especially in services, right, in North-America, as you mentioned in the last calls. Particularly next one to two year, what kind of you know large machine orders can we expect in this new market and some color here on the services and I was asking more also about the number of the team size you’ve built-in North-America. Thank you.
Nikhil Sawhney
Yeah. So I’ll let them comment on the team size and where they see the distinct. But services for API because the customers are extremely risk-averse especially on the large integrated oil and gas majors, they tend to favor going to OEMs. There are certain strategies that we’re trying to employ to be more relevant with them. At this point in time, I can’t disclose those, but we see a market — an opportunity for us to work directly with some of these majors to provide their services, specifically in certain regions. Those will be region-specific strategies. Having said that, we do anticipate larger megawatt turbine orders from the API market. We’ve had good success in FY ’25, which get executed in FY ’26. And we are hopeful in the coming quarters of redoubling those efforts and getting similar successes on that front. It’s a very competitive market. There’s no doubt about that. But we’re quite confident that given our newer entry into this space that we’ll be able to show some success., could you just talk a little bit about the API market and then Sachin a little bit on the US side specifically for API?
S Narayana Prasad
So APA market-wise, as we got ourselves approved on in all the refineries — majority of the refineries, refineries. The pipeline is building up. At the same time, this is a very, very competitive market and we are fighting with all the competitions across the globe in different territories. And we are very optimistic on API growth because the pipeline is there, acceptability there, technical acceptability also there in that. And second thing here, the differentiation what we bring there is a quick back-end support from India’s team across the globe for API. API business is — majority of the business is through EPCs and OEs. So when this sort of a business there, what they will be looking is a quick turnaround time on the inquiry to the proposal sort of I think these are the areas where we are working on that. So that will give us not really good results in the next two years what we are anticipating on that.
Sachin Parab
Coming to the US market, your query, we have not a very big team in the US, but it is very important to understand that in all markets that we operate in, we typically operate also through our network of agents for assisting us in sales and marketing. So while the strength of our team directly on our roles may be not very significant, but we have people working indirectly for us for the sales and marketing effort across the country through our extended agent network, also necessary to understand that some of the workshop-related activities that happen in the US are also subcontracted to the partners that we have developed. So team size is as per our plan, but we are looking at expanding it to almost twice the size that we had in the first year, in the second and third year.
S Narayana Prasad
And one more thing here I want to add, especially, we are very, very conscious on the cost. As you know, US is one of the expensive cost-oriented markets. So lot of support, back-end support, as Sachin mentioned, from our partners there as well as back-end teams from India also supports US team so that there is proper cost orientation is there on that. So other thing is some emerging markets like SMRs, what we are seeing that the small modular reactor market is one of the market which we are hopeful that traction whatever we are having that should give some positive results to us in North American market. So those are the new markets also. So we got access after having a facilities there in US.
Operator
Thank you. MR. Mahawal, please rejoin the queue for more questions. Next question comes from the line of Sarang with Capital. Please go-ahead.
Sarang Joglekar
Can you hear me? Yes, good afternoon, please. Yeah, thank you for the opportunity. So on the 30 megawatt plus segment, I wanted to understand, you said you were gaining market-share and you are already maintaining 50% plus in the sub 30 megawatt. So on a broader level, what are the key factors the customers look for when choosing a turbine? What are the options basically who are the competitors and why exactly do they go for prevailing?
Nikhil Sawhney
No, that’s a very complex question. Every customer has a different purchase ultimately I think confidence, if you have an installed-base in that market segment, in that industry within that geography, that tends to build customer confidence. And so our growth in-market share and in the higher megawatt segment will happen based on a more successful installations. And so that will feed on itself and it will — so the growth there will happen in a more linear manner, you shouldn’t expect it to be sort of exponential and we’re happy with that because ultimately we want to grow slowly and ensure that we have successful installation.
Sarang Joglekar
Got it. And in the API, same API in the as well, the other player will that —
Nikhil Sawhney
Sorry, I can’t hear you. You’re muffled.
Sarang Joglekar
Can you hear me?
Ravi Swaminathan
Yeah.
Sarang Joglekar
Same on the API side. How is the competition and who are the players if you could name of you?
Nikhil Sawhney
No, I think it’s not worth name competition, but I think you can Google who are the players in the market segment. Competition exists in all market segments. It’s not as it doesn’t exist and we have extremely well reputed global technology companies in this space. And so it exists. It’s a technical — but at end-of-the day, it’s a technological product, so the number of competition is limited and we don’t anticipate new competition coming into this market segment.
Operator
Thank you. MR., please rejoin the queue for more questions. Next question comes from the line of Shah with ICICI Securities. Please go-ahead.
Nidhi Shah
Thank you so much for taking my question. So my first question was on the margins. We’ve seen for the last nine quarters or so that margin inflation has happened continuously. I was basically wanting to understand what is it that is bringing us this margin despite the fluctuations in commodity prices and our input prices, that would be the first thing. Second is that you have — that we have spoken continuously about the inquiry pipeline. Would you like to quantify that inquiry pipeline in your — and in your opinion? Would that be more back-ended when these orders were finalized towards the — say it was the second-half, what is your opinion on that?
Nikhil Sawhney
It seems right now that it would be back-ended, but we are not — we unfortunately don’t give the absolute inquiry levels. You could have a discussion with Surbia, Investor Relations manager on this question. But what the first question was that? Margin accretion. Margin accretion has happened because of both the aftermarket as a percentage of revenue going up as well as the fact that we have a higher export as a percentage of sales. So both of these factors have contributed positively to the margin. In terms of volatility in raw-material pricing and increased overhead pricing, overhead cost, cost those are the — those were larger factors in FY ’22, ’23 post the real volatility that we saw post-COVID. I think right now, our normal supply-chain and pricing, which we have long-term rates with our vendors and with subcontractors, etc., continue. So it gives us good visibility. And so therefore, the pricing level that is taken by marketing and sales is knowing fully well what the cost would be going into any pricing discussion and negotiation. And so they have a fair idea of the margin level at the time of bidding for orders. So as we look-forward, I don’t think margins are a problem for. I don’t have always said that is an area which is because it’s a customized order — customized product, margins will differ order to order and quarter-to-quarter, but it so happens that we’re getting some operating leverage as well. The fact that we have good orders coming from the export market as well as a higher percentage of spares and service on revenue is all giving confidence that we have space.
Operator
Thank you. Mich Shah, please rejoin the queue for more questions. Next question comes from the line of Nandu with Edelweiss Public Alternatives. Please go-ahead.
Prolin Nandu
Yeah. Hi, Nikhil. Thank you for taking my questions. Two questions from my side. The first one is, while you alluded to some qualitative color on your foray into 3,200 megawatt segment. But can you just draw slightly longer-term picture in terms of it’s been now four years since we are going solo in this segment, not with our JV partner. So let’s say, in next five to seven years, what is our aspiration in terms of market-share? Can we replicate our market-share that we have in zero to 30 in about 30 megawatt category as well. Can you give some color and some texture and what are your targets and what are your aspirations for this particular segment?
Nikhil Sawhney
It’s a very complex question you’ve asked, but so in the higher megawatt category, which is one of the largest market segments is a combined-cycle a market segment, which is — as a — where the steam turbine is used as a bottoming cycle for a combined-cycle operation. The typical lead for a combined-cycle sale is done by the gas turbine manufacturer. And so that’s a little bit more difficult for us to-market segment to enter just from a sales perspective because the lead is always taken by the gas turbine manufacturer along with the client. Now if you exclude that, which is by far the largest segment, yes, our ambition is to be — to achieve the same success that we have in the smaller range and we’re quite confident that we’ll be able to get there. We find that even in the other market segment, we will make foray, but it’s very difficult to see how that will actually happen. We make efforts, but a market-share gain in this — in like I said, in the above 30 megawatt category, we should assume to be a little linear in terms of growth of market-share. In the API market segment, it will be a little bit more lumpy because we’re able to get bigger orders and take market-share because we have the references in-place. So now if you combine both of those because a lot of the API market API orders are also in the higher megawatt categories, we think that we could show good growth in this market segment of above 30 megawatts.
Operator
Thank you. Next question comes from the line of Naman with. Please go-ahead. MR. Naman, please go-ahead with your question next question comes from the line of Bimal, an Individual investor. Please go-ahead.
Vimal Sampath
Yeah, good afternoon, Nikhil. Just yeah, so just Nikhil and team just wanted to understand, I mean, what is our plan B? I know we are growing very well, but to maintain this 30% around growth rate, I mean, earlier we were talking of getting into this rotating equipments and all that. So what is our plan B to maintain our 30% — around 30% growth rate over the next three, four years? Or is there no necessary — I mean no necessity for that.
Nikhil Sawhney
No, no. No, there is a very strong need for us to continue with our research and development, which is to not only to ensure that our current product range not only is relevant and expanding in its niche applications, but equally to introduce new technology and new products such as what we tried to do with our carbon dioxide-based systems. So those research continue, those continue into other rotating equipments. At this current point in time, given the growth in our inquiry book, we find it’s not relevant for us to focus our discussions right now because it won’t be material in some of these developments in the short-term. But needless to say that it is a concern for the Board as well as the management to ensure that we have a steady stream of products, which will allow us to expand our entire market size that we cater to on a continuous basis.
Operator
Thank you. Next question comes from the line of Harsh Tiwani with Ashmore Group. Please go-ahead.
Harsh Tewaney
Hi, sir, am I audible? Yes. Good afternoon. Good afternoon, sir. So basically, I had a couple of bookkeeping questions from my side. So I was — I noticed that the debtors for us have gone up like they’ve almost doubled Y-o-Y, even though revenue has only increased 21%. So is there some payment delay that we are facing or how should we read this?
Nikhil Sawhney
Can you answer your second question as well and then I’ll answer both together.
Harsh Tewaney
The second question was pertaining to the other financial assets line, which again has grown-up exponentially. So anything that we should read to this?
Nikhil Sawhney
Thank you. Okay. So on the debtors, you’ll see two things. One is the receivables have gone up as well as the fact of other target assets. Both I’m trying to address in my opening remarks to say that because of some of dispatches that were bunched up in March, these are — these are orders which have not really come due for payment by customers because we tend to pay on LC at dispatch and obviously, it’s within a period of time that the LC has to be in cashed. But we’ve said that in the month of April, May that has largely been reversed back to our normal stance of low receivables. Other financial assets are higher because the reflection of FDAs which are over 12 months are reflected as other financial assets, but this is all part of cash.
Operator
Thank you. Next question comes from the line of Prolin Nandu with Edelweiss Public Alternatives. Please go-ahead.
Prolin Nandu
Yeah. Thank you, Nikhil, for giving me the opportunity again. You know, in one of the comments on API market, also said that maybe in the future, we will also have a play on SMR, the small — modular reactors. Can you touch base as to what are the — I mean, product synergies between API and SMR can you give us some context because my understanding was that probably in nuclear reactors, the play for turbine is not that large. So can you just help us understand, is it different in SMR?
Nikhil Sawhney
No, you see, we provide a product that utilizes the heat generated from whichever source, we’re agnostic to how the heat is generated. Is it generated through a bottoming cycle of a gas turbine is generated through energy efficiency of a cement kiln in terms of waste-heat recovery or through the waste generate — or the heat generated from a small modular reactor. The concept is the same. The fact that we utilize that to provide either heat requirement for processes or to drive a generator to produce power. So this segment is similar in the sense that is for power generation. The specifications of what sal meant is that the specification of quality are equally, if not more stringent. And it comes — that is a bigger constraint in terms of manufacturing technologies, which has to be deployed to ensure that the customer is satisfied. For example, the vibration levels in the API market for a turbine are one-tenth of what it would be in the industrial market. This has a very — this has a different quantation and implication on how the product is configured. So it is with that regard. In terms of the SMR market in specific, we provide a little bit more clarity in the coming quarter in terms of how we’re approaching that directly as well as the orders.
Prolin Nandu
Thank you, Nikin. Thank you so much.
Nikhil Sawhney
Thank you. Thank you. Great.
Operator
Thank you. Ladies and gentlemen, we have reached the end of question-and-answer session. I would now like to hand the conference over to the management for closing comments.
Nikhil Sawhney
Thank you. Thank you very much, ladies and gentlemen, for joining our Q4 FY ’25 results for Threni Turbines. As I said, this was a record quarter, the 17th quarter of growth for the company. We look-forward to — for you to join us in the FY ’26 Q1 earnings call. Some of the results may be a little lumpy in the quarters in the current — in the coming year. But needless to say that we are anticipating another record year for turbines in FY ’26. Thank you again. Goodbye.
Operator
Thank you. Thank. On behalf of Turbine Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.