Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Triveni Turbine Ltd (NSE: TRITURBINE) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Gavin D. — Investor Relations
Shreya Sharma — Head- Investor Relations
Nikhil Soni — Vice Chairman and Managing Director
S.N. Prasad — Chief Executive Officer
Manikantan Rajendran — Chief Marketing Officer
Sachin Parab — Chief Operating Officer
Analysts:
Ravi Swaminathan — Analyst
Nitin Arora — Analyst
Ganesh Ram — Analyst
Harshit Patel — Analyst
Amit Anwani — Analyst
Harshita — Analyst
Dolly Chaudhary — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The Triveni Turbine Q4FY26 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 completes. Should you need assistance during this conference call, please signal an operator by pressing star to zero on your Touchstone 4. I now hand the conference over to Mr. Gavin D. Sir from CDR India. Thank you. And over to you sir.
Gavin D. — Investor Relations
Thank you. Good day everyone and a warm welcome to all of you participating in the Q4 and FY26 earnings conference. Call Triviri Turbine Ltd. We have with us today on this call Mr. Nikhil Soni, Vice Chairman and Managing Director. Mr. S.N. Prasad, Chief Executive Officer. Mr. Sachin Parab, Chief Operating Officer. Mr. Lalit Agarwal, Chief Financial Officer. Mr. Manikantan Rajendran, Chief Marketing Officer and Mr. Shreya Sharma, Head of Investor Relations and Value Creation. I would like to emphasize that while this call is open to all investors, it may not be broadcast or reproduced in any form or manner.
We will start this call with opening remarks following which the management will be available for an interactive Q and A session. Before we commence, I’d like to hand over to Shreya Sharma who heads Investor Relations at Value Creation. Over to you, Shreya.
Shreya Sharma — Head- Investor Relations
Thank you, Gavin. Good day everyone and thank you for joining us for the company’s Q4 and FY26 earnings call. I hope you all have a chance to review the results and the accompanying presentation uploaded on the exchanges and on our website earlier. Our discussion on the call will follow that presentation. Before we begin, I would like to remind you all that some of the statements made today may be forward looking in nature and are covered by the disclaimer of the earnings presentation. Joining me on the call today is the senior leadership team who will take you through the key business developments and performance for this quarter and full year.
After the remarks, we will open the floor for the questions. With that, let me hand it over to our Vice Chairman and Managing Director Mr. Nikhil Suhani to take you through the highlights. Over to you, Mr. Suhani.
Nikhil Soni — Vice Chairman and Managing Director
Thank you, Shreya. Thank you, Gavin. Very good afternoon ladies and gentlemen and thank you for joining the Q4FY26 earnings call for Trivini Turbine Limited. Against the backdrop of multiple challenges including geopolitical disruptions, tariff related uncertainties and a volatile global environment, we delivered a a satisfactory performance for the financial year to 2026 Q4 FY26 contributed meaningfully to the full year performance and helped offset the relatively softer first half of the year.
As I’d said in our previous conference calls, we started off the year with the conflict between India and Pakistan, which had an impact not only in terms of order booking, some very large orders which we were anticipating in the API segment which could have been delivered during the year, and so the order booking also impacted revenue in Q1. Subsequent quarters had issues in terms of tariff related challenges with the United States in specific, which led to more muted order booking and the year ended with a conflict again in West Asia which also has impacted both revenue as well as order booking.
But despite all these challenges, I’m happy to report that the company did grow its top line by over 8% and its bottom line we saw a contraction, but I’ll go into some details on that a little bit later. The demand conditions across certain markets remained uneven during the first half of the year, as I’d said, and the performance during FY26 remained back ended, with the second half witnessing significantly improved execution momentum across businesses. H2 delivered a healthy growth of over 125% on a year on year basis.
However, supported by strong visibility from our healthy order backlog, robust inquiry pipeline and a resilient business model, we maintained steady business momentum. Our diversified presence across sectors and geographies, strong execution capabilities enabled us to effectively navigate market uncertainties and ensured growth. During FY26 we achieved our highest ever annual turnover of 21.81 billion rupees, registering a growth of 9% over FY25. Export revenue remained a key growth driver, increasing 30% year on year and contributing 58% of our overall revenue compared to 48% in the previous year.
At the same time, aftermarket as a percentage of sales did decline on a year on year basis and we can cover that in the Q and A. Operationally, we continue to maintain healthy profitability. During the year, EBITDA stood at 5.27 billion rupees with margins of 24.2%, while profit before tax before exceptional items stood at 4.9 billion rupees which remained broadly stable year on year with margins of 22.5%. Profit after tax registered a decline of 3%, primarily on account of an exceptional charge of 157 million rupees which is recognized towards employee benefit obligations under the new wage code.
Coming to the quarterly performance Q4FY26 was a strong quarter for the company, with record revenue and robust order booking momentum across businesses. We delivered our highest ever quarterly revenue of 6.8 reflecting a growth of 26% year on year and during the quarter the share of exports in the overall revenue increased to 60% registering a 46% growth year on year. While strong export performance supported overall revenue growth during the quarter, it was impacted by a segment mix of lower aftermarket, particularly spares execution as well as the execution of our strategic NTPC order during FY26.
We also had a mark to market loss given the high volatility of rupee during the end of the quarter, which also led to a recognition of over 8.5 crores as a loss on an M2M basis. This of course will be adjusted in quarters subsequent quarters, but the margin compression was principally due to a change in segmental mix which is driven by a greater share of of what I would call a strategic project as well as this mark to market loss and a lower percentage of aftermarket as a percentage of sales. But having said that for the full year as you can see we are largely in line with what our margin expectations have been and going forward we anticipate that we will continue on our long term growth margin, long term growth and long term margin rates that we have received that you have seen in the previous quarters and years.
Moving to the balance sheet, we continue to take a disciplined approach to capital deployment and liquidity management though receivables at the end of March 31, 2026 stood at 6.39 billion rupees, primarily reflecting the execution profile of certain large projects as well as the billing which was skewed towards the end of March which would be liquidated in the subsequent quarters as we speak. A significant amount of that has already been liquidated, but I would be happy to go through that in the question and answers.
The average trade receivable days stood at 84 days versus 49 days as of 31st March 2025. While we see that this receivable level is high and as I have commented we believe that this receivable level will significantly be diluted during the subsequent quarters given our profile of order booking and therefore execution, which will mean that FY27 will also be somewhat of a back ended year, our receivable at the end of March 31st of 2027 may be in a similar level just because of the execution profile of our order book.
The company continues to maintain its its negative working capital on non balance sheet ending days which is March 31st and 30th of September given the way that it is conducting its business. On the order booking front, Q4FY26 recorded a 19% year on year growth with total order booking of 7.54 billion rupees which is underpinned by traction across both the domestic and international market and a favorable segment mix. Export orders booking touched a record high of 5.16 billion rupees during the quarter, registering a growth of 174% year over year and contributed 69% to total order booking.
Driven by demand across key markets including Europe, Turkey and Southeast Asia. The aftermarket business also witnessed strong momentum with order booking growing by 121% year over year and contributing to 50% to total order booking during the period. Overall, the strong order booking momentum in Q4FY26 contributed to an improvement in the closing order book for FY26 and our entry into the geothermal product segment is a key milestone for the company in our technically demanding segment and a segment which constitutes a growing part of our inquiry book, it foretells a good market segment and good entry for the company into an area which is growing.
The healthy order inflows across the key and high value segments during Q4FY26 resulted in our closing outstanding order book increasing by 8% year on year to 20.54 billion rupees. Our international expansion strategy coupled with continued innovation and entry into new product segment has yielded encouraging results with export orders contributing 51% to our closing order book. The overall order book mix also witnessed a meaningful improvement supported by a strong scale up of the aftermarket business which improved during the year.
We’re happy to talk about this subsequently in the Question and Answers. The performance underlies the agility of the company despite the problems that were faced in the geopolitical and international arena over the past year. While we anticipate certain conflicts to continue in our projections, we are confident that of growth in the business, confident in growth in our bottom line as well as the fact of the visibility that we have in the market which has grown and nearly doubled over the past year.
It allows us to have confidence and greater confidence in order booking going forward. Besides, this research and development continues to innovate and deliver new products to deliver new solutions to both our existing customers with steam turbine solutions as well as for newer rotating equipment solutions which includes our carbon dioxide based platform as well as the introduction of our organic Rankine cycle turbine which will be able to capture waste heat at lower temperatures and allows us to offer a very technically demanding solution to sophisticated customers.
This of course is our inquiry book and growth of inquiry book is geographically spread globally. Our new entry into the US market of course has led to an increase in the inquiry book from the US to be disproportionate from the rest of the world because of our lower visibility in previous years. But despite that, we have an enormous increase in the inquiry book from the Indian market which is driven by both the thermal power generating market segment as well as fixed capital formation demand from user industries across a wide ranging set of industries including paper, pulp, cement, steel and a variety of process co generation applications.
Southeast Asia and Europe continue to represent a growth in our inquiry book both in renewable energy based applications as well as in industrial capex. With that ladies and gentlemen, I’d like to turn it back to the moderator for question and answers.
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star then one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants, you are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue samples a reminder to all you may press Star and one to ask question. We will take the first question from the line of Ravi Swaminathan from Spark Capital.
Please go ahead.
Questions and Answers:
Ravi Swaminathan
Hi sir, thanks for taking my question. My first question is with respect to once again the enquiry book that you have mentioned that has almost doubled over the past one year. Can you you had given some details about it in the opening remark, but can you give a bifurcation or possible broad bifurcation as to how much of it has been contributed by the existing products, how much of it has been contributed by the new products, and also the how much of wind has been incrementally contributed by the foray into newer geographies like us etc.
Nikhil Soni
Okay Ravi. Actually because our CO2 products are newer, we don’t actually reflect that in any inquiry book because we still need to see the performance of the current installation before we actually determine what business model we will choose for that business segment. So actually our growth and inquiry book is only for steam turbine based applications, both for product as well as aftermarket. The aftermarket market segment both domestically and internationally has grown quite robust. To give you some numbers, we’ve seen I would say a near 1000% increase in our inquiry book in North America, but this is driven by the fact that we had very low visibility.
The inquiry generation in that Market is somewhere in the region of about 3 gigawatts odd, which is driven by not only investments into data centers, the initial investments into data centers, as you know, was more gas turbine based. But now we see certain demand coming from not only combined cycle based applications but also certain renewable based applications for geothermal, etc. We also see a robust inquiry pipeline on the aftermarket segment from the North American market. This is but the 3,003 gigawatts is in light of about an 18 gigawatt odd inquiry book that we have now for the product segment.
And that inquiry book for the product segment of 18 gigawatts is of course nearly double of what it was in FY25. The Indian market itself has also increased in its inquiry book by about 100% odd over this past year to about 7 odd gigawatts for us.
S.N. Prasad
The
Nikhil Soni
Rest of the markets have also exhibited growth. The only market for us which has declined a little bit in terms of visibility is Turkey. But actually every other market has shown a growth from not only fixed capital formation in industry, specifically in infrastructure based industries from cement and steel, but also process cogeneration. But there’s been a while and as well as while thermal power generation has increased in markets like India and the developing economy, renewable based applications have an equally large investment appetite.
So what we’re seeing is a cycle for investment into energy in general. Okay.
Ravi Swaminathan
And within the Indian market,
Nikhil Soni
Both on the power and heat side. So it’s both for power generation as well as for heat in industry.
Ravi Swaminathan
Understood. And within the Indian market it will be once again the steel and cement and oil and gas which will be driving the growth here or is there any other newer sectors which are also.
Nikhil Soni
No, it’s fully broad based because the heat requirement in segments like steel and cement is larger. Obviously they will be disproportionate in the amount that they contribute. Also the size of capex that is required is larger, but in general it is everywhere. But I’ll ask our CEO to comment on this as then he can ask Chief Marketing Officer Mani to also comment on it.
S.N. Prasad
Good afternoon. So coming to the Indian market, I think as Nikhil mentioned that across the segments the inquiry pipeline growth we are seeing because in a process cogeneration, either steel or cement or oil and gas. So these are positive traction. What we are seeing more or less similar segments even in international markets. Probably Mani can add some more color to this.
Manikantan Rajendran
Yeah, yeah, thank you. Nikhil and Prasad, this is Mani. Now in terms of the sector, as Nikhil said, steel and cement contribute the maximum in terms of the growth and the size of the enquiry base in these two sectors are the highest. But in terms of growth, as Prasad said, the growth has been across all the sectors be it be the process, CO generation, sugar, ipps. So the growth has been there across all sectors. However, the proportion of the enquiry base has been highest with respect to steel and cement.
Ravi Swaminathan
Got it. My second question is with respect to some of the new initiatives that we are taking like geothermal drive turbine for boiler feed pumps, MBR Compressors and the CO2 based applications, etc. What is the contribution, what would have been the contribution in FY26 of all these new initiatives that we would have seen and what is the near term target market size for each of these that will be there and how the contribution can increase over a 2, 3 year period of time?
Nikhil Soni
Very, very good questions and very difficult questions. I have to confess that we don’t have that breakup right now in terms of how much they’ve contributed in the last year in growth of inquiries. But you listed let me take each individual segment. Geothermal is a key market for us because not only is it extremely demanding from a technical perspective of metallurgy as well as fluid dynamics, but also the reliability and robustness that has to be delivered to a client because it is IPP at the end of the day and of course non generation is just a pure loss for the developer.
So this is a market segment that we participated in both principally as aftermarket contributors to this, but we’ve also have provided and sold products into this market segment. We’re quite hopeful that this market segment will present us more opportunities in this current year coming from geographies including Southeast Asia and the United States, both for the aftermarket as well as new products. We also are hopeful for newer product introductions such as organic alkyne cycle which can take lower heat recovery which will also contribute into the geothermal market.
We’d like to target markets based on the industries. That they’re from rather than the products that fit into them. The products can fit into because it’s better to solve a customer solution problem. MVR again is a similar product which allows for distilleries and for others to generate to have a viable solution for them in their process. This is a much smaller market segment. It does not really conform to, it does not really form a significant part of our inquiry book, nor does it form a significant part of our order booking.
But having said that, what it does do is once we couple it with some of our other innovations, including heat pumps, et cetera, it can provide a very viable solution in an integrated manner. Going forward, we think the MVR and heat pump market will remain small as a contribution to Triveni Turbine, but it will increasingly allow us to penetrate into the customer and allow us to display our technical prowess to our customers, especially internationally. The CO2 products, especially in the, in the subcritical energy storage market, is something that we’re quite enthused about right now.
We would like to finish our current projects before we actually project out what our business plan will be for that. We’ll wait for the plant to stabilize, but we are quite optimistic that the company that is Riveni Turbine should come out with a solution around long term energy storage, given its products. So what that means I think we’ll have to articulate a little bit better once we have some findings from our, from our, from our current project. I think that covers most of your questions in terms of how they’ve contributed to the inquiry book.
I would say none of them are very meaningful at this current point in time. But when I look forward in terms of in the next couple of years or next three, four years, the geothermal market will be a large market for us. It will contribute very meaningfully. I think ORC market will also be large for us. We think that the CO2 market depends if we have a correct solution. It may be quite a large market for us. The MBR and heat pump market will be constant. It will be high profit, but it will remain smaller.
And the drive turbine
Ravi Swaminathan
Market. Drive turbine.
Nikhil Soni
The drive turbine market is cyclical, you know, to the extent that thermal power goes up and down, it will reflect that. Right now we’re in a market where thermal power generation is expanding. You have oil and gas expanding. You have everyone waiting to expand capacity. You’ve had a lot of disruption in the oil and gas both upstream and downstream over the course of the last two months. And actually already in Q1, we’re seeing good demand from the API segment globally.
Ravi Swaminathan
Got it, sir. Yeah, thanks a lot.
Nikhil Soni
Thank you.
Operator
Thank you. Before we take the next question, ladies and gentlemen, in order to ensure that the management will be able to address all the questions from the participants in the question queue. As we have a long Q today, we request you to kindly limit your questions to two per participant. If you have a follow up question, please rejoin the queue. Again, we will take the next question from the line of Nitin Arora from Axis Mutual Fund. Please go ahead.
Nitin Arora
Hi Nikhil. Just on this US Pipeline where you sounding very confident, can you throw some light? You know, where are the actual inquiries? Because you articulated two things, power and heat. What will be our role specific? I think you, if I’ve heard it correct, you said data center, some bids are coming for the combined cycle plant. If you can articulate in a better way, you know, just to understand, you know where the direction is going in us.
Nikhil Soni
Let me ask Prasad and Mani to answer that question though I have, though I have to give you a caution that, that the entire inquiry book is not something that gets converted and obviously it will not all get converted to us. While we’re very optimistic on the US market in terms of incremental growth in our order book, it doesn’t, it’s not as if it’s suddenly going to take on a very good share of our order booking. We’ll say where the demand is coming from.
S.N. Prasad
Yes. So especially in US demand is coming in addition to the combined cycle applications for the data centers where we are seeing a good traction is biomass plants is the one thing pulp and paper inquiries are picking up and geothermals. These are the four segments which today what we are seeing from the inquiry pipeline, especially from us what we have seen. Mani, any additions from your side?
Manikantan Rajendran
Yeah, Nitin, good afternoon. Now from the time what we were in FY25 now there has been a good amount of traction and we have been getting good number of enquiries in this FY26. The inquiry basis have increased. Now as Mr. Prasad said now many of these data centers are now converting from a gas turbine to a combined cycle. So there have been quite a few inquiries for those combined cycle steam turbines are there and we are also getting enquiries on the conventional items like IPP as well as for the sugar conventional ones, paper pulse.
So which is our conventional kind of a business. The inquiries have started flowing in. Plus we also see a good traction in geothermal and biomass phase as well. Yeah,
Nitin Arora
Couple
Manikantan Rajendran
Of inquiries from the small modular reactors. So that is also coming in.
Nitin Arora
Okay, just one clarification here. When a data center inquiry is coming for a combined cycle, barring only the gas turbine, the steam turbine, what data center ordering or doing this combined single to improve the efficiency part because we always thought that gas turbine itself is sufficient enough. So this combined cycle is happening just to improve more efficiency on on their angle.
Nikhil Soni
So so typically a gas turbine operates at about 30, 35% efficiency and when you take it to a combined cycle it goes up to about 50%. So I mean a combined cycle actually is just taking waste heat from the, from the exhaust of a gas turbine. The ratio in which it works is for Approximately rough. For 3 megawatts of a gas turbine, you would have 1 megawatt steam turbine on the waste heat side. And so this improves the efficiency. And very frankly, it can either be put in at the time of installation or could be put in later.
So simple cycle is being put up. A simple cycle means a gas turbine without combined cycle without a steam turbine, and combined cycle means a gas turbine with a steam turbine. And that can be put up later as well. Because you see, the permitting that is required for water is different than what is required for air. And those are different regulations in the United States and they take different time. So with speed, obviously gas gets set up first. The permitting for water takes longer.
Nitin Arora
But do you see this as a bigger TAM opportunity for you? I mean, just to put it in the perspective of, you know, sizes,
Nikhil Soni
It definitely expands the market quite significantly. I already gave you an indication that the US presents, I don’t know, what is it, nearly 15% plus number of in our inquiry book. So. And that’s come up from near 1% or 2%. So that’s a very large growth for us. To what extent will it be converted when not? We’re being cautious on a couple of things because we know that permitting in the US Takes a long time and getting water permissions will take time. So we don’t know how quickly these will convert into orders and whether they’ll convert in this current year.
We don’t know if all of it will convert in this year. But what it does present is a large enough market for us to be interested to say that it presents us a growth opportunity for us to continue with our growth of order booking. This past year we had a growth in our closing order book of about 8%. Which gives you an idea in terms of the execution that we’ll have in this current year from a revenue perspective. But going forward, we will be much more hopeful in growth of our order booking and the US will have to play a role in that growth of order booking, which would be spread geographically for us.
Nitin Arora
Got it. Thank you very much for this. I’ll come back in the queue. Thank you.
Operator
Thank you. We will take the next question from the line of Chirag Muchla from Centrum Broken. Please go ahead, Chirag. You may proceed with your question. Give me a mutual line and proceed with your question. Due to no response, I will take the next participant. We have the next question from the line of Ganesh Ram from Unified Capital, Please go ahead.
Ganesh Ram
Thank you for taking my question. The first question is a clarification to what Ravi was asking. So when we look at the near doubling in the inquiry book and you’ve gone into quite some detail about it, just to be sure, this inquiry, are you only capturing the steam turbine opportunity or does it include inquiries from API for example?
Nikhil Soni
API to the extent that it requires a steam turbine is of course included.
Ganesh Ram
Okay, understood. And the second question is on the long duration energy storage itself. When we look at the commentary from your technology partner globally, they seem to have signed up a partnership with Google and with Onzi for offtake. They’re building in the US with Alliant Energy. So their messaging to me suggests more that the technology is validated and scaling globally. But your messaging is a bit more cautious on this front. So what is the question about? Do you feel it’s more about the adoption in the Indian market or is it about the technology itself?
Nikhil Soni
No, we’d like to see everything. The project by itself has multiple different components. I wouldn’t like to speak about for our technology partner, but I’ll just speak for ourselves, which is to say that is the execution possible within the timelines and the cost estimated, as you would have seen for this current quarter, we had a significant amount of billing on that project, which has already had some cost increases. But having absorbed those, the project is still marginally profitable. And so we need to see the cost, the cost, full cost of conversion for a project and then we have to assess the project from a technical performance and round trip efficiency perspective given not only Indian conditions, because actually temperature plays a very large role in terms of all of these cycles and the calculations.
So we have to see what Indian conditions, Indian operations mean for the project. We’re very hopeful for us to deliver the results. By the way, don’t get me wrong, I just like to comment on it once it’s up and running.
Ganesh Ram
Understood. And another clarification is just on the commodity environment. We’re seeing prices spike up quite significantly. So generally when you’re pricing, do you have pass throughs or do you have a certain portion that’s fixed?
Nikhil Soni
Yeah, largely. Largely. Each unique order when it’s taken, is taken either with inventory, in stock or with or with back to back orders to be placed. And we have rate contracts for all our large components. And so there has been movement in material prices. You’re very right. Everything from copper to aluminium to steel has actually increased in price. But we do not see that impacting both our supply chain procurement or therefore our margins. But let me ask Sachin, can you comment a little bit more on the costing of how you’re treating.
Sachin Parab
So we have diversified our supplier base and we are trying to mitigate those risks in terms of escalation of our cost also, as we have always maintained even in our previous calls, we have rate contracts which are long term. They also insulate us with some of those escalations. Besides, when we take particular orders which are of large magnitude, we are extra cautious in terms of negotiating very good supplier rates. So more or less we do not foresee too much of escalation of costs and we should be able to maintain our margins that we have been seeing now.
S.N. Prasad
Yeah. In addition to Sachin’s points, a couple of points wherever it is a must for us considering the current volatility from the supply chain. So some of those things we’ll be able to pass to the customers also because customers also equally sensitive to this data when it comes to commodity prices going up. So there will be some sort of small time lags will be there. But otherwise with our extended supply chain network spread across the globe, plus some of the customers to whom we’ll be able to pass, it will be able to maintain the bottom lines.
Ganesh Ram
Understood. So essentially you’re saying the margins are not as impacted by the raw materials. It’s largely a function of the product mix in this quarter.
Nikhil Soni
That’s exactly right. Actually we’ve always encouraged investors to look at our from on a year on year basis where we are very lumpy on a quarterly basis. You’ll get the wrong impression if you look at one quarter by itself. You have to look at it on a longer basis and longer trend. We’ve had big challenges in the year like I started off by saying, which led to both a lower order booking than we anticipated as well as lower revenue than we anticipated. And we think that there will be still disruptions in FY27.
But very frankly we are optimistic that we’ve streamlined certain processes to allow for us to go through those uncertainties.
Ganesh Ram
Understood. Thank you. Thank you very much.
Harshit Patel
Thank you. Next question is from the line of Harshit Patel from Equira Securities. Please go ahead.
Ganesh Ram
Hi sir, thank you very much for the opportunity. Sir, firstly on the Indian market, could you give us an idea on the size of FY26 addressable market in megawatt terms? Essentially the less than 100 megawatt market in India. And how do you expect this market to grow in the FY20?
Nikhil Soni
Oh, like I said, the inquiry book is up 100%. Now what will get converted is a function of multiple different factors. It is a question of liquidity, balance sheet, strength of those developers, etc. But having said that, there seems to be a very strong tailwind on very strong tailwind on the thermal power generation market. You have a huge amount of capacity addition which has to come on stream. You have a very strong tailwind also in the steel market. The cement market I think is reasonably consolidated.
But whatever gets announced from Capex in the cement market does come back, does actually get executed. The steel is a little bit not as reliable from an inquiry to conversion perspective. You also have renewed inquiries coming from ethanol as well as from certain agro based industries. At the same point in time. Efficiency remains an important factor and waste recovery, both from municipal solid waste incineration as well as from other applications within industry remain quite, quite large. But the market itself, I don’t have the number.
I mean maybe you’d be able to take it from Shreya later in terms of the growth of the domestic market overall. But we have seen a good growth in the market in this current year. We anticipate next year as well for it to have a good growth. Prasad, do you have any comment on that? Yeah,
S.N. Prasad
Yeah. Market wise, domestic market around 35% it has grown. That is one data point when it comes to domestic market, it’s about 3,400 odd
Nikhil Soni
Megawatts.
Ganesh Ram
Oh no,
Nikhil Soni
I think you take the number from sri. I think I’m giving you a wrong number right now.
Ganesh Ram
Sure sir, I will take it offline from. Thank you so much. Secondly, what is the size of API turbines in our revenues order and order backlog? Is this part of the business expected to grow faster than the overall business or it will be broadly in line. So is this business become sizable enough to call out or it is still not that large yet?
Nikhil Soni
No, no. It is a key growth driver and a key profit driver for the business. We were anticipating certain large orders at the beginning of FY26 which didn’t materialize. And so therefore API as a percentage percentage of both our order book as well as revenue is lower than our anticipation. But it is a key growth driver for the business and it is an area where we’re able to deliver very good products. So from a revenue perspective, API has a larger component share than in our order book. But we believe in the coming quarters and years it will revert to having a meaningful 10% plus number in our order booking as well as in revenue.
Ganesh Ram
Understood sir, thank you very Much and all the best.
Harshit Patel
Thank you. Thank
Nikhil Soni
You.
Harshit Patel
Next question is from the line of Amit Anwani from PL Capital. Please go ahead.
Amit Anwani
Hi. So thank you for taking the question. So question again on the US business. So you did alluded in terms of very strong inquiry which is, which has built up. Just wanted to understand what are the expectations in terms of conversions for F27 and are we more confident on the product side or the aftermarket side? Some color there would help. And amid all the global MNCs probably we are competing with in that market, you can give some colors in color in terms of the competitiveness of Trivini Turbine vis a vis other players and some expectations in F27 would help.
Nikhil Soni
Okay, you know I’m going to first I’m going to ask my colleague Sachin to come in and comment on the US market also. But before that let me give you my expectation that both, we expect both the aftermarket because see the aftermarket is driven by the installed base. The installed base and as you can imagine the fixed capital deployed in the US economy, given it’s a $27 trillion economy, is massive. So that presents an enormous opportunity for us to both refurbish, repair, modernize, upgrade current installations.
But at the same time there’s growth in the market from an energy production perspective. So both present equally large opportunities. Having said that, this Q4 was a profitable quarter for the US subsidiary though the full year itself as you will see from the annual report when it’s out and the subsidiary accounts still had a loss of about 8 odd crores in that subsidiary in the coming year. We anticipate not only for that to reverse but for it to be profitable, largely driven by greater execution.
But the order booking of the aftermarket order booking, while it may get executed within next year itself, the order booking on the product side may get executed in FY28. So but so we’re very optimistic in the short as well as medium term for the business. Sachin, can you provide some clarity more around the U.S. Operations?
Sachin Parab
Yeah. So we have been able to turn around orders fairly rapidly for the aftermarket business in the US So inquiry generation has been really better for the product business. But the aftermarket business, because it’s shorter turnaround, it reflects in the revenues much faster. So as Nikhil said, we are looking at aftermarkets contributing more to the revenue in FY27. Some of the product of orders might take some time to execute, but we are quite confident that the conversions will be good. It would not be possible to Estimate any percentages as such.
But as we are getting our brand more recognized in the US market that is reflecting in the inquiries going up and it is with the execution that we have done so far. The confidence of our customers customers is enabling good references for us to take more enquiries. So overall we are quite hopeful on the US market and we’d like to see how things pan out. And we are quite hopeful. Thank you. What
Nikhil Soni
Was the second question? Amit?
Amit Anwani
Yeah, so sir, just follow up on this. So this will like are we expecting data center to be a good contributor? And even the current order backlog in the U.S. Is there any notable conversion on data center piece even in the inquiry?
Nikhil Soni
No, a lot of it is driven around data center requirement which is both like Prasad mentioned earlier on the combined cycle operations as well as on the renewable applications. All the inquiries and orders that we may have even in the small modular reactor and micro reactor segments. And geothermal is ultimately to feed the power requirement for data centers. It’s not for the grid.
Amit Anwani
Understood. And then there’s industrial. Yeah.
Nikhil Soni
So
Amit Anwani
My second question was in terms of the current order books obviously last year we had a lot of lumpiness back ended revenue. So what should be the expectation this year in terms of growth and how much of the current order book has a lumpy orders currently? So just a sense on how the year will be in terms of the quarterly seasonality for F27. And
Nikhil Soni
That’s a good question. Last year was impacted by book and bill. So we rely on book and build not only in the product but also the aftermarket side. The aftermarket segment because of a lot of uncertainty led to lower lower order bookings especially on the spare side. In this current year we don’t think that the same degree of uncertainty should exist. That’s number one. Number two is that these large project based orders are not really in our order booking. Having said that because the way that the order book has come in, the way the orders have come into our order book means that again the revenue recognition and the way that the products that we dispatch will be back ended.
So you’d see from FY25 perspective you’d see a quarter on quarter growth in quarters. But if you look at historically it will again be a back ended H2 year for us.
Amit Anwani
Right. And can we expect double digit this year?
Nikhil Soni
Well you know we shy away from giving direct, we have given guidance but what we do have is a growth in the inquiry book order book by about a closing order book by about about 9% and so that gives you an indication of the minimum growth that we would like to anticipate.
Amit Anwani
Right. So finally on the overall export order inflows, which is about 1200 and we grown by almost 3, 4 years from the base of 450 odd crore. This was the first year when the order inflow from overseas export market was kind of flattish. So we understand you explained us. But is there a challenge in terms of inquiry conversions in the other markets? And that is
Nikhil Soni
Kind of in general, during the whole year there was, there was, there was constraints in terms of order, in terms of finalization. But I let Mani take this question on because as, because we’re already in Q1 and so let him answer as to how, how he’s seeing customer conversion in the export market.
Manikantan Rajendran
Yeah. Yes, Amit. Now with respect to the inquiry conversion, like during the year, with respect to the geopolitical issues which we faced, there has been delays in the order conversion which is what while the enquiries did, we did receive quite a number. But in terms of conversion we did have challenges because the finalizations got delayed. That is one of the reason why export you see flattish going forward in FY27. Now there have been quite a number of tractions and discussions happening in converting into those inquiries which we have conversions.
We are positive about it going forward. There have been good number of discussions having as we discussed. So, so we are hopeful that this situation would change and this year we believe exports would be more than the domestic.
Amit Anwani
Understood. So thank you so much sir. Thank you.
Operator
Thank you. We will take the next question from the line of Kunal from 361 capital market private Limited. Please go ahead.
Ganesh Ram
Yeah. Hi. Thank you for the opportunity. Well, most of my questions have been answered just two questions. First one on the aftermarket export, we have seen huge bump up there. So just wanted to check any bulky order that we have booked this quarter and what could be the sustainable run rate given that we have increased our offering in the aftermarket significantly.
Nikhil Soni
Yes. So you know. So our strategy in the aftermarket is well the three product segments, three segments within aftermarket, which is our spares and second is service and third is refurbishment. Our spares and services obviously driven around our own Triveni turbine installed base. And that will grow based on an installed base of maybe two, three years prior because it will take that much time for these sort of orders to come through. The real growth in the aftermarket segment comes from refurbishment which is based on our, on our capabilities on the ground in certain geographies to be able to convince customers of that capability.
And as we are getting more entrenched into the African continent, we see good orders coming from that market. These include both lower value added, higher value addition based projects which not only have overhaul as part of the contract, but also repair parts manufacturing and we’ll provide more clarity around our African operations in Mexico subsequent quarters. But it presents a sustainable growth because we’ve been able to show value to our customers and the confidence that comes from it allows us to see a more sustainable revenue from these markets.
Ganesh Ram
Nikhil, my second question is around kind of focus on innovation that we’ve shown is showing up in the number of products that we are, you know, offered in terms of new products over the last few years. So I just wanted to check at the board level, is there a number that you guys work with in terms of, you know, share of, you know, revenue that has to come from new products? Is that how you think or it’s on a best effort basis?
Nikhil Soni
Well, it’s a difficult question because while we have long term innovation programs, when certain opportunities arise, there is a certain degree of priority that is placed within R and D towards quicker commercialization based on opportunistic requirement. So there’s not a straight requirement that direction that is given from the board. But what we do have is over seven and a half percent of our workforce which is in R and D. In specific we have another 8 plus percent,
Amit Anwani
8 plus
Nikhil Soni
Percent in engineering. And so we do have a very strong technical bench strength. That coupled with over 35% number of people that we have in servicing, which is more from a customer satisfaction perspective, gives you an idea as to the priorities of the business. Innovation is important because not only are we developing new products within the steam turbine range for applications such as geothermal, etc. But we also then have new technology innovation and new technology introductions which allow us to provide a longer term growth path for the company.
These newer innovations and new technology introductions, while it may, we may get one order here and two orders here, these represent longer term growth opportunities once we’re able to stabilize technologies and establish our name. But we’re still pretty much a steam turbine company at this point in time. And especially when you look at us in the short term, you should evaluate us that way in the medium term and longer term, yes, we will be a multi product and a solution oriented company.
Nitin Arora
Thank you so much and best of luck for the future.
Nikhil Soni
Thank you.
Operator
Thank you. We will take the next question from the line of Chirag Muchana from Centrum Broken. Please go ahead
Ganesh Ram
Yeah. Am I audible?
Operator
Yes, please go ahead.
Ganesh Ram
First is on this NTPC battery energy storage order that you had mentioned in your opening remarks as an strategic order. So just wanted to get more update on how much part of that order has been executed and the margin profile on the same.
Nikhil Soni
Yeah, I think we’ve whatever the increase in cost in this order we’ve already taken. This order is probably at a PBT level of about 3 odd percent so. And we’ve taken over 2/3 of the order already into revenue.
Ganesh Ram
Okay. So 2/3 of the order has already been booked as an FY26. Basically
S.N. Prasad
Yes.
Ganesh Ram
Okay. Also in the light of this currency depreciation, also wanted to have your views on the competitive position that we will have as far as you know, bidding against the global competitors are concerned since you know, majority of our peers are all from.
Nikhil Soni
It’s a good question but the fact is actually we don’t lose orders based on price in the international market. So actually margin and price is not the question. In fact, if you win an order all you could say that we may have had the luxury of a higher margin, but we don’t, we don’t lose orders based on price and it’s not as if we discount that way. So I see this as only a margin expansion for us. But at the same time there has been commodity price increases and different countries offer different margin structures.
So we don’t see this as we don’t see the competitive intensity either increasing or declining. Based on this. You do have the Japanese who also had a currency decline. You have some other countries which have faced the same situation, maybe not as much as India. But having said that, our competitiveness still remains very high. This is a largely oligopolistic market. Globally. It is a question to be able to provide the right value proposition to customers rather than be cheapest, you know, you have to be reliable and robust technically be able to provide the service where the customer needs it, be able to understand his requirement and deliver it in time and in the performance that he requires.
So you know, those are more. What’s more important than the pricing.
Ganesh Ram
Okay, sir. And lastly, considering this Middle east conflict outlook on the EPI turbine business, specifically from the Middle Eastern customers for FY27.
Nikhil Soni
Yeah. Right now we’re not entered. We’ve not taken it as part of any of our projections for UP because well, obviously if the war ends soon there will be a lot of repair and maintenance and refurbishment requirement and new orders from that market. Right now we’re not taking any anything in our projections but globally, because of higher oil prices, we’ve seen a resurgence in inquiries as well as order finalizations in the API segment globally for both upstream and downstream. We largely participate in the downstream market.
Ganesh Ram
Okay. Sir, we are getting orders from multiple locations globally or it is largely India and Middle east centric API inflows currently?
Nikhil Soni
No. Well, obviously the Middle east had a larger part of our inquiry book and order booking in the last two years. We believe that this requirement is at this point in time it’s more global, including Africa and the United States and India.
Amit Anwani
Okay. Okay. So thanks. Thanks.
Nikhil Soni
Thank you.
Operator
Thank you. We will take the next question from the line of Mohit Surana from Monarch Network Capital Ltd. Please go ahead.
Ganesh Ram
Thank you for the opportunity. So my question is more with respect to understanding the trajectory of the EBITDA margin, as I understand for the full year we have achieved a level in the project execution of the project based orders. I mean as you mentioned, already booked. So going forward with more aftermarket services component in our order book, do you expect the margins to improve further from here? Have you already bottomed out or. We can see more stress because of the Middle east crisis in the near term.
Nikhil Soni
So you know, actually for us as a company, I think it’s better to view us from a turnover perspective because actually our margins are reasonably stable on a year on year basis. They will change based on product mix. If you have more export as a percentage of sales, your margins are a little bit higher. More aftermarket, as a percentage of sales, your margins are higher. More spares as a percentage of aftermarket, your margins are higher and you’d understand that. So for us largely we don’t see any change in margins.
Our margins are not a problem as I’ve been suggesting. I think what you should rather focus on is order booking and the quality of our order booking and, and the revenue recognition of that. But so because our products are. Because each order has a different margin structure, so each. It’s difficult to answer your question about have your margins bottomed out. I tried to give you an explanation as to what were the factors that impacted margins in this current year, which included an exceptional item which we talked about, which included certain mark to market losses.
But these mark to market losses may be a recurring thing which happen every year because of currency volatility and our hedging policy. We had a certain strategic order which had lower margins. But in general we don’t see margins as structure going forward. Exports will be a larger percentage of our execution, so that’s even less of a risk. That we have in margins. You have large aftermarket and so that’s less of a. So I don’t think what you’re asking is really too much of an issue for the company.
Ganesh Ram
Understood, sir. And sir, in terms of order intakes, is there a sustainable level of order intake we can expect every quarter? I mean, I understand it could be lumpy, but what’s the minimum?
Nikhil Soni
No, I think it will all depend on external situations. They will be as we get as we deliver larger and larger turbines and larger projects. The order booking will be lumpy. But the visibility that we have, which I’ve tried to provide you in our inquiry book, is that we’re quite confident of growth in our order booking. And I think Mani and Prasad alluded to the same, that we believe this would come from a wide diverse geographic spread as well as different industries. So as far as the number goes, like should it be higher than 700 crores or 500 crores?
Obviously we believe that it should be. The high number is what we aspire towards. But we’ll have to see that.
Ganesh Ram
Understood, sir. Thank you so much.
Nikhil Soni
Thank you.
Operator
Thank you. We will take the next question from the line of Ganesh Ram Rajkopalan from Unified Capital. Please go ahead.
Ganesh Ram
Thank you. I just wanted to focus a bit more on the traction that you’re seeing in the US You’ve addressed it in detail, so I just want to take it one step forward and understand the competitive landscape and how you’re positioning the product. And in terms of approvals, they tend to take some time. So exactly how are you placed in this market versus competition? What’s your sales pitch generally?
Nikhil Soni
Well, the first thing is that the permits is not our problem. It’s a developer’s problem. We sell to an integrator, EPC or a developer. So the permits is not our issue. The proposition is the same. To be able to sell and it’s consistent not only in the US but it’s consistent globally, is to be able to show a reliable, robust product and a value to the customer in terms of being able to provide uptime to him in situation and backup of service. So the messaging is quite uniform regardless of where we sell.
The difference is that we have on ground capabilities in the US which provide greater degree of confidence, especially in terms of repair and maintenance which may be required by customers. The ability to have on ground servicing personnel in the US you do have a diffused decision, diffused responsibility in terms of the procurement, it’s less entrepreneurially driven and more established supply chains. And so that presents a different value proposition that we have to sell where brand is, where we don’t have a brand.
And well, we have a significantly weaker brand than our global competitors. And so as to overcome the bias that may exist, we have to make it up in terms of other value, other attributes such as the broadness of our technical offering, how well it can deal with the different vagaries of operating conditions of our client, what is the speed by which we can execute and deliver the product, what are the guarantees that we take on reliability and robustness. But it’s broadly the same. There’s nothing too much different in the US market than what we try to sell in others.
Ganesh Ram
That’s very helpful. And generally, when it comes to converting this, what are the pushbacks you’re receiving from end customers?
Nikhil Soni
No, you see, the point is, like I said specifically in combined cycle, water and permit takes longer. The pushback is when we’re in front of a customer and the order is being closed. We have a very high percentage of winning. So we have. The issue is to be in front of the customer and for him to, for us to have visibility into those orders. So that’s why the growth in the inquiry book is a very strong foreteller of what may be potential demand from that economy.
Ganesh Ram
Understood, understood. And just one more question is, I think this has been touched upon, but on the margins front, you had alluded that a good mix of exports and aftermarket generally supports margins. And your export mix in terms of revenue recognition has been amongst the highest this quarter. When I look at the past eight quarters, aftermarket, not too much of a decline, but probably around 25%. So the drag is coming from the strategic order. Could you give us some clarity on what the nature of these orders are and what your thought process is in this segment?
Nikhil Soni
So, you know, so we had a line of technical development around subcritical carbon dioxide turbines and one of the applications for that was in energy storage. So the project was taken as a strategic developmental project to validate technology as well as our product. So that is something that is the reason why it was taken, we believe, like I already alluded to or actually said it to a previous participant, this NTPC project was a low margin order. Majority of it has already been built in the current financial year and especially in the previous quarter.
But in the quarter you had three things. One is the aftermarket as a percentage of sales was actually at 25%, which is lower than about 33% for the previous year. While exports was higher. The aftermarket has a Much higher profitability as you would imagine than export. Even that coupled with the fact that you have a large revenue that came from a low margin order is what impact impacted the profitability in Q4. But again I would encourage you to look at it on a year, on year basis. And that degree of volatility will always exist around sort of a mean 25% EBITDA level.
It will be higher in some quarters, it will be lower. I think we went up to 27, 28% also in this current year in some quarter.
Ganesh Ram
Understand we look at it from another point of view. Just helps to understand the movement. I think if
Nikhil Soni
You have to look at it, you look at us. If you, if you have to view us in any given quarter, look at it to the trailing 12 months of that quarter.
Ganesh Ram
Yeah, understood. Thank you. Thank you.
Operator
Thank you. We will take the next question from the line of Rajshah from Enam anc. Please go ahead.
Ganesh Ram
Yes, thank you. Sir, my question was relating to US operations. If you can highlight the update on any profitability, how confident we are of breaking even in F27 and to what extent. And secondly sir, in the, I think in the order order pipeline you mentioned that there is some order inquiry for small model reactors as well in the us. You can also throw some light on that.
Nikhil Soni
Yeah, I mean a small modular reactor like, like, like with any other heat prod, we operate as a normal steam turbine solution which actually quite low specifications that come out from the nuclear space. We’ve been a provider to the nuclear space for quite a while now. Actually as far as US subsidiary goes itself, like I alluded to, we’ve had a profitable quarter. But if you look at the full year FY20, 26, it was a loss in the US subsidiary. And like I said, we believe that this current year should be positive if not at worst break even.
So within those calculations we are optimistic that when we get into FY28 onwards that we’ll be able to deliver profitability from the US operations because of both size and scale, absorption of overhead as well as profitability of the orders themselves.
Amit Anwani
Thank you very much, sir.
Operator
Thank you. We will take the next question from the line of Harshita from ubs. Please go ahead.
Harshita
Yeah. Good afternoon sir. So my question was on the combined cycle product that we mentioned. So could you provide more clarity on the order visibility here and is this also accompanied by the servicing or AMC contracts that we see in general and along with that as we see pricing
Nikhil Soni
Missing a question. I say that again. Servicing of epc. What contracts?
Harshita
No for the combined cycle products that you mentioned for data centers. So are these also accompanied by servicing or AMC contracts here? And similar to the pricing tailwinds that we see for other hyperscaler or data center link products that are benefiting from strong pricing right margin expansion, is that also something we can expect from these kind of product orders here?
Nikhil Soni
For us, I think what’s more important is to get sustainable entry into the space. So we’re not looking at margin expansion or pricing increase disproportionate to what is available. There is certain supply constraint in terms of energy solutions globally in all forms, in all rotating equipments. For us, the data center as an end market contributes a significant portion of our inquiry book. So it will be well in excess of half of the inquiry book will be coming from that market segment. And as far as long term service contracts go, we always offer that to clients as a solution.
And when we do, when we do take it in our order book, we only take the near term visibility of that servicing contract and not the full duration of it. So whatever can be executed in one year is what will be taken.
Harshita
Okay, got it. Thank you.
Operator
Thank you. We will take the next question from the line of Raj Agarwal from C9 Family Office. Please go ahead.
Ganesh Ram
Hello. Thank you so much for the opportunity. Again I had a question on data center. You previously highlighted that in CCDT and geothermal, through this organic Rankine cycle we have an opportunity. So despite this economy, you know, we have not been able to identify many projects in US so far which are basically using this solution. So since this is an attractive solution, why is there a slow uptake in this globally, in this industry?
Nikhil Soni
Slow uptake of combined cycle,
Ganesh Ram
No solution. And this organic Rankine cycle like why is this solution not being used extensively in this industry?
Nikhil Soni
Organic Rankine is not for data centers. It will be more for geothermal and for low waste heat recovery which will include industrial processes. So that’s the wrong technology application there. This is a newer product introduction for us. And so this is something that we will, it will add on and something that we’re quite hopeful to get success on in this current year and will build onto a longer term pipeline. I didn’t understand your second question actually
Ganesh Ram
In the CCGT is this, does the steam turbine go inside the CCGT or basically it will be complemented by a different steam turbine with the CCG solution. You last, last call. You mentioned 3 megawatt plus 1 megawatt solution will be used.
Nikhil Soni
No, that’s just the calculation of the number the Fact is that it is for the developer to decide if he wants a combined cycle or if he wants a simple cycle operation. We can’t determine that.
Ganesh Ram
Okay, but.
Nikhil Soni
Yes.
Ganesh Ram
No, sorry, please go on.
Nikhil Soni
No, it is based on the customers constraints. Be it his permitting, his availability of funds, his speed of getting power online, whatever the. What are the other constraints are? We can’t actually influence that.
Ganesh Ram
But this large CCGT players like you know, Siemens and all, they would have their own steam turbine solution, right? That they will offer to the customers.
Nikhil Soni
Of course.
Ganesh Ram
So basically what Basically space is open for three winning to participate here because the CCGT players will have their own steam turbine solution to offer to the customer.
Nikhil Soni
You know, each customer or each client actually orders in a different manner. Sometimes they club the contracts and give it to the gas turbine lead only. Sometimes they break it up and give it to EPCs. Sometimes they order everything themselves. It all depends on size and scale of the developer, the majority of him, his technical availability and how he wishes to design the contract. So there’s no set format in this. Actually
Ganesh Ram
Whatever
Nikhil Soni
Visibility we see and whatever inquiries are shown, whatever are presented is what is available for us to bid on.
Ganesh Ram
Last question sir. On margins the mix is shifting on three fronts. Domestic to exports, OEMs to aftermarket and then you know, standalone turbines to now solutions. So how do we think of margin trajectory going forward? Since all these three will directionally benefit on the margin side, right?
Nikhil Soni
Actually I wouldn’t like to give. You see for us what I’m more concerned with is actually growing our top line rather than margin expansion. So the margin expansion, if it happens due to product mix change etc. Is beneficial to us. It’s not that there’s a constant strategy for us to discount and get market but it’s more important for us to actually look at top line growth. But I’m very comfortable with our margins of what is 25% plus EBITDA.
Ganesh Ram
And
Nikhil Soni
It will also. Sometimes we’ll go higher, sometimes it will go a little lower, but the trajectory will be there. And in general you’re right, the trajectory should be higher. But that’s just a consequence of our product mix and geographic mix.
Ganesh Ram
Got it sir. Thank you sir. Thank you.
Operator
Thank you. Are
Ganesh Ram
We done?
Operator
We will take the last question from the line of Dolly Chaudhary from Nivisha. Please go ahead.
Dolly Chaudhary
Hi sir. Thank you for the opportunity has been answered. I wanted to get a little your macro perspective on one thing that like this long duration storage are clearly seeing strong momentum in India. But if we see Bess and pump storage remain the dominant solution. So like according to where does this CO2 battery technology fit in the landscape? Like are there any discussions going forward for this technology in India?
Nikhil Soni
No, there are many discussions happening and many different technology choices. Long duration energy storage which where the CO2 comes in is evaluated in the same form like pumped hydro because of the availability and the costing of it is actually significantly higher than pumped hydro. The question is how you can scale to get the pricing down. Ultimately we are a very, we need to get the cost which is appropriate to the market. The Indian cost appetite is extremely low so we have to see what round trip efficiencies come to.
To be able to actually see if this is a long term solution. We have to be able to see what the final costing comes to on a per kilowatt hour basis, a megawatt hour basis. You have a variety of different solutions which are out there. You have different flow battery solutions which are also available. We have different research that we are doing in terms of both kinetic thermal based energy storage systems as well as flow based storage systems. But this is an interesting area for us to provide a solution and I think we will take some time to figure out where our space is because we want to be a value added player here rather than just a integrator of other people’s technologies.
Dolly Chaudhary
Got it sir. And like, if we say like this, like the thing goes well regarding the costing and we know that this is a relatively new technology. So like if you can quantify like how do customers typically validate the viability before placing a new order like for ntpc? I
Nikhil Soni
Don’t know actually, you know, very frankly we have not been marketing this at all. So I don’t know. You can tell us better. We have some discussions on in terms of what the parameters are, but as far as active discussions around the rfp. No,
Unidentified Participant
Got it, got it. That will be all sir. Thank you.
Nikhil Soni
Thank you very much. So thank you. Thank you very much ladies and gentlemen. Thank you for joining the Q4FY26 earnings call for Trivini Turbine. We look forward to speaking to you again with our Q1. We have a robust strategy in the company with continued focus on innovation and execution. Customer service and customer delight and satisfaction remain paramount in all the activities and endeavors that we do. We will be investing significantly more into the movement into AI. We think that we need to be technologically ready for any disruption that will occur both within industries, within companies as well as in the market in general.
And we will provide these updates in the coming quarters, as well as growth in our order book and inquiry books. Thank you again. Goodbye.
Operator
Thank you, members of the management. On behalf of Triveni Turbines Limited, we conclude this conference. Thank you all for joining us. And you may not disconnect your lines. Thank you.