Venus Pipes & Tubes Ltd (NSE: VENUSPIPES) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Arun Axaykumar Kothari — Executive Chairman & Managing Director
Dhruv Patel — Executive Director
Kunal Bubna — Chief Financial Officer
Analysts:
Unidentified Participant
Aasim Bharde — Analyst
Parth Bhavsar — Analyst
Sneha Talreja — Analyst
Dhruv Jain — Analyst
Shivkumar Prajapati — Analyst
Pritesh Chheda — Analyst
Pritesh Chheda — Analyst
Surya Nayak — Analyst
Tanmay Jhaveri — Analyst
Radha Agarwalla — Analyst
Richa Chowdhary — Analyst
Bhargav Buddhadev — Analyst
Devarsh Shah — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to Venus Pipes and Tubes Limited Q1FY26 earnings conference call hosted by DAM Capital Advisors Limited. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your Touchstone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Asim Bhade from Dam Capital Advisors. Thank you. And over to you sir.
Aasim Bharde — Analyst
Thank you. Thank you Nirav. Good evening. On behalf of Dam Capital, I welcome you all to the Q1 FY26 earnings conference call of Venus Pipes and Tubes Limited. We are happy to host the management team which is represented by Mr. Arun Kothari, Managing Director, Mr. Dhruv Patel, Whole Time Director and Mr. Kunal Bhubna, CFO. We will have the opening remarks from the management followed by a Q and A session. Thank you and over to you Mr. Arun.
Arun Axaykumar Kothari — Executive Chairman & Managing Director
Good evening and a warm welcome to everyone on the Q1FY26 earning call for winners Pipes and Tubes Ltd. I have been joined by Mr. Dhruv Patel, our director Mr. Kunal Bumna, our CFO SJ, our relationship advisor. We have uploaded our Q1FY26 investor presentation on stock exchanges and company’s website and I hope you had an opportunity to go through the same. I will begin with a brief update on the company then move to our company’s performance during the quarter. The global economy is facing several headwinds with uncertainties around tariffs and conflict like situation in many parts of the world.
The era of globalization is slowing down and many companies, especially in the Western world are focusing on becoming more self reliant rather than depending on other nations for their supply chain and manufacturing. However, we believe this ship has its own challenges. While indigenous can bring benefit in certain industries, the reality is that high labor costs, rising energy prices and the lack of skilled manpower make it difficult for the west to be fully reliant. The west will continue to lead in technology, but countries like India, China and others have the advantage of skill level at competitive cost.
India continue to hold a relatively strong stronger position compared to the many other economies. While we do feel some some effects of The Global Uncertainties India’s growth story remains strong. In fact it is expected to be fastest growing major economy in the world. Coming to the performance of the company, we delivered steady performance this quarter achieving our all time high revenue of Rupees 276.4 crore, a growth of 15% year on year for the quarter ended June 2025. Achieving this milestone despite a challenging global backdrop is a strong reflection of our enduring customer relationship, the trust in our product quality and the commitment of our entire team.
Let me now share a few key updates from our operation. During this quarter, export continued to be a major growth driver reaching rupees 103.1 crores, a remarkable growth of 69% compared to the same period last year. The performance comes despite geopolitical and economic challenges and it is a testament to the sustained demand for our products in the global market. While we continue to keep a close watch on the evolving global environment, we remain confident about our prospects thanks to our diversified presence across geographies and our strong long standing relationship with customers and dealers worldwide. On the domestic front, sales remained largely stable.
We recently secured a large order from one of India’s leading integrated power plant equipment manufacturers. Looking ahead, we see a strong growth potential in the domestic SS pipe and tubes market supported by the ongoing shift from the unorganized to organized sector and revival in capex by end user industries. The domestic demand outlook overall remains positive. On the order book side, our pipeline remains healthy at Rupees 560cr with a particularly particularly strong inquiry coming from the power sector, an area where we expect to see sustained momentum in the months ahead. On the CAPEX front, our project for ventilated fitting and seamless pipes and fumes are progressing as planned and we expect the new capacities to be commissioned in the second half of FY26.
Along with seamless as announced previously, we will also be installing piercing line to ensure we remain fully backward integrated. In closing, this quarter has further strengthened our foundation. We have proved our ability to grow even in uncertain times, leveraging both our domestic and export strengths. With a good order book, demand outlook and strategic investment in place, we are entering the next phase of growth with optimism and confidence. Our focus will remain on delivering high quality projects, customer trust and creating long term values for all our stakeholders. I am confident that this is yet to come and together we will continue to raise the bar for performance to the performance in the industry.
Now call I hand over the call to Mr. Kunal Gurman, our CFO.
Kunal Bubna — Chief Financial Officer
We are pleased to share that our company has delivered a resident performance in the first quarter of FY26. On revenue front, revenue from operation for Q1 FY26 reached an all time high at rupees 276.4 crore compared to rupees 240.1 crore in Q1 FY25. Reflecting a healthy 15% year on year growth. The revenue mix for the quarter stood at 55% from singles 5 and 38 from builder 5. Seamless pipe registered a revenue growth of 13. Percentage building grow by 10% on the EBITDA front. EBITDA for Q1FY26 stood at rupees 44.9 crore compared to rupees 47.9 crore in Q1FY25.
EBITDA margin for the quarter was 16.2% profit after tax. Paired for Q1FY26 was rupees 24.8 crore compared to rupees 27.5 crore in Q1FY25 with a margin of 9%. In closing, we remain optimistic about the Jagni ahead. With a clear strategy, ongoing investment in product expansion and a sharp focus on operational excellence. We are confident in our ability to deliver sustainable and profitable growth. Our goal is to further strengthen the winners brand and set new benchmark in the stainless steel pipes industry.
With this I would like to open the floor for Q and A round.
Questions 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 and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles participants. You may press Star and one to ask a question. The first question is from the line of Parth Pav sir from Investech India. Please go ahead.
Parth Bhavsar
Yeah. Hi sir. So thank you for the opportunity. Sir, I have two questions. The first one like in terms of this project that we won for like supercritical thermal power. From the supercritical thermal power manufacturer of 190 crores. Have we started execution? And if yes then how much have we executed yet? Till now?
Kunal Bubna
No, it has not been started. But we are very soon we’ll be starting the same.
Parth Bhavsar
Okay. And this is like the execution period is 15 months. I guess right?
Kunal Bubna
Yes. Yes.
Parth Bhavsar
Okay answer. Any update on you know, orders from the likes of, you know, Aramco or ADNOC or any product approval that that is, you know, placed yet.
Kunal Bubna
See as a company on each quarter there are approvals being received from a few of the other companies. Other than what you mentioned, ADNOB is already, we are already approved for adnob. So we keep on getting those approval. And see we don’t categorically give the name of those approvals what are being received by the company. But again as we said out of the total order book of 560 there is a around 35% is from export side. So there is a healthy export order book also currently which is maturing which includes supply to Europe, usa, Middle East.
Parth Bhavsar
And sir, just pardon my ignoring that the order book was 560 crores.
Kunal Bubna
Right?
Parth Bhavsar
Okay, perfect. Those are my questions. Thank you.
operator
Thank you. Next question is from line of Sneha from Noama. Well, please go ahead.
Sneha Talreja
Hi sir, good evening and thanks a lot for the opportunity. There’s a couple of questions from my end. Firstly to start with, you know, what is the share of exports to the US market, any impact on the tariffs that we are seeing. Secondly if you could speak about, you know, you mentioned strong order book starting so would you be revising, you know, your guidance upwards or some flavor there and when can we see you know, stronger growth coming in from Q2 if you could just give some color on that would be helpful.
Kunal Bubna
See from the tariff perspective there had been changes in the Section 232 tariff which has been on our product which has made from 25 to 50% in the month of June only. But apart from that we have not seen much effect from that check. But as a company we are too cautious. We are also keeping a close watch on what will be going to happen. Out of the current order book of export we have around 15 to 20% from USA side the total order book out of the total export portion of order what we are currently carrying with us and currently we are also reviewing those situations and seeing a very close eye how it’s pan out in going forward and keeping the healthy order book. We definitely believe we have given a guidance of around 20% overall growth at the top line. We believe definitely we will be able to touch at least 25% growth in this financial year.
Sneha Talreja
So you are revising your guidance up from 20 to 25% for the volume anything on the margin front because you’ve given 16 to 18 range at this point of time you are closer.
Kunal Bubna
We maintain that. We maintain the same.
Sneha Talreja
Understood. Lastly on the Saudi Arabia market there was a, you know, news in between that you know, they put dumping duty on, you know, China and you know other markets. Any significant traction that you’re seeing or would you like to, you know highlight some new customer additions which are taking place from that particular market point of view?
Arun Axaykumar Kothari
Yes, definitely it will. It will give the good demand in welder side segment. We had already started to receive some of the order from Saudi market but it’s still we are pursuing with number of clients and discussion ongoing with number of clients. So we are expecting good demand from the Saudi market in the coming months.
Sneha Talreja
That was really helpful, sir. Lastly, on the capex front we are, you know, you know commissioning all the value added portions for things. Could you give some timeline so are they on track or when is the capacity expansion expected in these launch?
Kunal Bubna
Basically the backward integration expansion of seamless and fitting. These are the two, three projects which are currently underway. So they are all running on truck and we believe we completed by S2F second half of this year.
Sneha Talreja
Understood. Thanks. Thanks a lot.
operator
Thank you. Next question is from Nanav Dhruv Jain from Ambit Capital. Please go ahead.
Dhruv Jain
Thanks for the opportunity sir. So two questions. First is that on the new capacity addition that you’ve done and the incremental capacities that are going to come through in this year, how should we think about the capacity utilization for FY26 and FY27 broadly I’m just trying to link it to your upgraded guidance. So if the mix going to be. You know that the ramp up in the value market is going to be a lot more sharp like incremental demand that’s coming through.
Kunal Bubna
It will be mixed. If you take the capacity utilization where the capacity will be pending or keeping those under consideration. The blended utilization should be near to 80% what we believe and for the coming year FY27 it should be probably higher than that keeping as all the capacity would come by end of FY26 and again the blended utilization if you see the capacity of symbol and build it it will pan out and somewhere or other 60:40 ratio would be there probably sort of that this 18% capacity.
Dhruv Jain
Utilization blended you are talking about on 42,000.
Kunal Bubna
42,000 keeping just taking the condenser to plant which have come at a later.
Dhruv Jain
Date and the new plant a new plant volume. How should we think about it? The second fittings and the value added pipes that you know you mentioned it should.
Kunal Bubna
It should not be much for this year but again we are trying that in the last quarter we are able to start that but not much would be able to accrue in this year.
Dhruv Jain
Getting sir, in terms of the cost Ramp up. Right. So we’ve obviously seen a sharp jump up in employee cost and other expenses. Now it could be presumably going to exports and the CAPEX ramp up but incrementally on these numbers what kind of growth should we see or this number should now start to stabilize on a QOQ basis.
Kunal Bubna
See generally yes it should stabilize but again when the contribution of welded increase so generally RM consumption cost slightly increased and the other cost decreased to a certain extent. But as we believe it should definitely but start stabilizing in the going forward quarters.
Dhruv Jain
I’m just talking about it from an absolute number perspective. Basically.
Kunal Bubna
Absolute number three. Again it’s very hard tough to give an exact number but it should be near to this number. But I can see what happened is sometimes you have a different type of delivery. If your export increase further then this cost also changes. So there are too many promotions and combinations. Also when these factors are taken into consideration.
Dhruv Jain
And so on the domestic market. Right. So the revenue has dropped. Just want to understand if the yields have also considerably dropped. Right. So you know how should we think about the yield improvement in the domestic market and the volume growth improvement in the domestic market. I know you have that a new order being that should contribute. But in general apart from that demand environment. If you could just talk a little bit about that.
Kunal Bubna
Primarily the demand as you said it has been from our sector but other sector like not much is there. But again oil and gas chemical engineering are the other sector where we are looking into. So we believe going forward there should be also demand from this sector but not limited demands are there from the sector in quantum. But see power. But again power is a very huge amount of demand which is coming into the number of tenders being floated for power and all which is a new demand seems to be which was not there in the system in too much quantity. I think that should also help get the point answer.
Dhruv Jain
Just I know it’s slightly premature but in FY27 once all your capacity addition comes through what kind of growth should be assumed? Line perspective or from a volume perspective.
Kunal Bubna
That’s why 26 to 27 again as all the capacity would be there. So we believe at least on the top line level 20% growth should be there.
Dhruv Jain
Get the point. Thank you so much. And on.
operator
Thank you. Next question is from line of Shivk Prajapati from Ambit Investments. Please go ahead.
Shivkumar Prajapati
Yeah. Hi sir. Good evening. Thanks for asking my question. My first question is on export front. If we exclude the US tariff impact then where do we stand on the Pricing and quality front in comparison to you know some South Korean or you say Chinese suppliers.
Kunal Bubna
See the Section 232 tariff that has been increasing the month of June. It is on all the entire country exporting to us. It is not standalone on India. So generally doesn’t have much effect on India or other countries.
Shivkumar Prajapati
Okay. And sir, since we are you know growing strongly in the export market say Europe, Middle east. So what percent of percentage of you know export revenue is recurring versus 1 of orders.
Kunal Bubna
See generally see recurring is there from USA recurring is there from Europe. A few reckons are also there from Middle East. And see we are also adding a customer in all these geographies. New customers are being added, new centers are distributors and traders are being added. So that is keep on continuing. And also approvals are being. We are working on approval. Approvals are being received and few more approvals are waited for which we are working towards that.
Shivkumar Prajapati
Okay sir, and my last question is a bookkeeping question. Maybe can you please give the volume growth for seamless and welded for the for this quarter. And did we book any inventory loss or gain during the
Kunal Bubna
Nothing. Nothing as such a quantity figure we are not giving.
Shivkumar Prajapati
Okay, okay. Thank you.
operator
Thank you. Next question is from nanopartesh from lucky investment managers. Please go ahead.
Pritesh Chheda
What explains the decline in domestic business still? So last year also you had a challenge first quarter you. I also have a challenge and the the profitability or let’s say the lower profitability which got set in from quarter two of last year because of lower realizations. So that still continues in the industry. And for you or there is any reversal in the incremental profitability on the orders that you are taking in seems less than valid.
Kunal Bubna
So from the domestic demand perspective there had been subdued domestic demand and also see our strategy but also was there to move more towards export to capture many of the country of the world to that we did last year and also in the last quarter. But again as we as we said we are seeing good amount of demand in the power sector. So we got an order from that and we going forward also we are will be building in few of the other contract related to power. And we believe those orders should be a few of them should also be won by us.
On the margin perspective. Definitely yes last quarter it was last year on year it was very high. But it has been deflecting because there are few reasons behind that. First there has been increase in capacity. Further in case of well did we were not supplying in export market like us and other country where we Penetrated very newly in the last year. So those were the reason that is taken down margin and also subdued domestic demand was also one of the reasons for a bit hitting margin. But going forward ERC we have we are trying to maintain the margin above 16 to between 16 to 18. There would be few more reason than that. More value added products are coming into play. So those would help us to improve the margin in the coming forward quarters to come.
Pritesh Chheda
So which means the industry profitability is not reversed still on the incremental orders, is that correct? So whatever drop came, the drop still persist in the industry and for your orders, correct?
Arun Axaykumar Kothari
Yeah. But now the. We had the as a winner spike. We had the different advantage. We had the combination of the various SS pipe in all the catalog SS pipe with all this combination. Or we are new to develop the conductor to pipe facility also which is the high end value report in the welded pipe or same way we are planning to go on the fitting plan also which will serve along with the pipe. We will able to supply the fitting also to our various client that will also operate in the this last quarter of financial year. So now all the product which were previously expanded that was all the basic product.
We are supplying to to every industry now in the for since last one year. What we are doing we in more valued product we are going forward or more value service we are going. So that will give the advantage in the coming years or coming quarters. After the complete capacity will be established in the new phase. A new capacity expansion. We have already commenced the condenser to plan One phase is already completed. Another phase will complete in the this quarter Q2 of this year. Another Q3 and Q4. By the Q4 all the work effects will be done. So that will give the value service advantage in the next F FY27.
Pritesh Chheda
So when do you start executing the condenser tube orders that you have got from bh?
Arun Axaykumar Kothari
Here we are no still we are not the order from DHL for condenser tube. We are already participating in the this tender or we are expecting this tender will open in the coming some coming next one or two weeks.
Pritesh Chheda
So the one yeah that that was.
Arun Axaykumar Kothari
For that was that was for similar side not conducted to plant. That was for boiler two for seamless out. So already will in this quarter will execute some almost 15 of the total quantity of the order this quarter. Next quarter we are expecting almost say 25 to 30% or in the by the March 2030. Remaining will be the first quarter of the FY27.
Pritesh Chheda
Which means that the Domestic gross decline which started last year will start reversing from quarter two.
Arun Axaykumar Kothari
Yes.
Pritesh Chheda
So we will start seeing domestic growth coming. Right. And the margin improvement will be a function of the product mix change not to do it.
Arun Axaykumar Kothari
Definitely. Definitely.
Pritesh Chheda
Right. It is a product mix change.
Arun Axaykumar Kothari
Okay. Yeah.
Pritesh Chheda
Now on the volume growth side, what mentioned of about Kunal mentioned about 2025 volume growth. Can you tell us what was the. Volume growth in quarter one and what. How much volumes in combined you did in quarter one?
Kunal Bubna
We are not giving such quantity figure for quarter.
Pritesh Chheda
This is but quarter volume growth you can share. If 15 was a revenue growth was the volume growth similar number?
Kunal Bubna
No, no, it was lesser than that.
Pritesh Chheda
Okay. Okay. Thank you. And all the best to you sir.
Kunal Bubna
Thank you. Thank you.
operator
Thank you. Participants, you may press star and one to ask the question. Next question is from Nano Surya Naik from Sunidi securities and Finance. Please go ahead.
Surya Nayak
Yeah. Thank you for giving him opportunities. So just as just to understand the fittings volume by way by weight. Suppose you know we can consider so what would it constitute for FY27 and 28. And I expect that not the volume, the value wise it will be more than the you know say the seamless. So if you can throw some light on that.
Kunal Bubna
Yeah, again you’re right. Quantity is very tough for fitting because those are sold in numbers and all. So basically in FY27 we believe the the capex would be in the range of 60 to 70 crore in fitting. And the top line which can come out of it can be around 3x or more than 3x. So a certain percentage of that will come in FY27 and beyond that in FY28. So.
Surya Nayak
So in terms of realization if you can give some color to that.
Kunal Bubna
Oh, it’s very tough to give. There are number of products and it’s all on number. As I said you there are no such specific realization which can I currently I can connect currently with you. Okay.
Surya Nayak
And sir, regarding the raw metal scenario. Are we seeing the raw metal scenario easing off or let’s say maybe it will be be for us for statement of the current position or it will be it is hardening.
Kunal Bubna
Can you repeat unable to get what.
Surya Nayak
Is the raw material scenario or pricing scenario?
Kunal Bubna
More or less. Not too much. It’s more or less stable currently.
Surya Nayak
Okay. Except in terms of industry applications. The our applications majorly is from the thermal power stations or any other sectors. We are actually getting measure what is the second, second and third contribution of the in terms of sectoral exposure?
Kunal Bubna
No, no. It’s A diversified industry based it’s engineering, power, chemical, food processing, pharmaceutical. It’s a mixed bag of industry which come into play. It is not a single industry we supply to.
Surya Nayak
But in the current order book it is majorly power thermal power station.
Kunal Bubna
See, one of the bigger order as we say is 20 to 200 crores is from power industry. You are right. But apart from that it also consists of export book. And apart from that the orders are from chemical engineering, oil and gas, power and other sectors.
Surya Nayak
Okay, and do you see any, any risk from the tariffs? Are we going to export to the US market or away from the US market to other areas?
Kunal Bubna
See, as a company our intent is to diversify across many geographies. We are supplying in Europe, usa, Middle East, Southeast Asia and African countries. But again in case of usa again the tariff is. Of course nobody knows what tariff will come tomorrow, today or some day after today. So those risks we see definitely from the US side. But I think if it is there for every company. So it should not be, it should not be much affected. But we are keeping a close eye on the scenario which is happening in usa.
Surya Nayak
So we will be given any demand coming from the U.S. we will be, I mean executing in orders despite lower realization due to the discounts. Those things have been related to the tariffs that can be demanded from the clients.
Kunal Bubna
No. Definitely see the intent will be. No. On a very first, nobody would like to supply on a lower price. But I can see everything has to be seen how the demand theory is evolving entire the entire country and those different additions to be taken on economical basis only.
Surya Nayak
Okay, thank you.
operator
Thank you. Next question is from Pinterest Capital. Please go ahead.
Tanmay Jhaveri
Thank you for the opportunity. Sir, I need a clarification. So in the presentation for the revenue mix, we have said 55% is from seamless, 35% is from welded and 7% is from others. So I guess that’s 3% which is unaccounted. So could you help me with this?
Kunal Bubna
Hello.
Tanmay Jhaveri
Hello.
Arun Axaykumar Kothari
Can you repeat
Tanmay Jhaveri
for the revenue mix in the presentation we have shared 55% from seamless, 35. From 50
Kunal Bubna
it will be 55, 38 and 7 will be 38. Yeah.
Tanmay Jhaveri
Okay. And so the second question is industry specific. So across the stainless steel pipe. So are we seeing any structural demand shift? All right. How do you expect industry pricing and margins in near terms?
Kunal Bubna
See the shift is the shift is definitely there towards stainless steel because of the quality we should carry. See the industry. If you see many of the industry in the country, all are moving towards higher grades of 5, higher quality of pipe which can resist cores in and etc. So now that is the very good change happening in the entire geography. So that is the thing. I think it will help as a company who are there in assays in going forward here because of this quality and the correlation nature with what can withstand it will help us in going forward also. And my last question is regarding the capex. So when we say that we have new projects coming up so could you just give guidance on what will be the capacity of the new projects. See again it’s slightly from the perspective because many of the tenders are floated. Those are those sometimes take time to finalize and all so given a specific number is very tough from us from the side of company but again from the power power generation side we are seeing a good amount of demand in going forward quarter also.
Tanmay Jhaveri
Thank you so much sir. All the best.
operator
Thank you. Next question is from line of Radha from BNK securities. Please go ahead.
Radha Agarwalla
Hello. Thank you for the opportunity. So like to mention the domestic demand has been subdued and exports also there is serious uncertainty from oil and gas perspective also the CAPEX is not so strong and still date oil and gas remains one of the key user industry for stainless steel. So while you’re booking new orders or while bidding are you witnessing any pressure in terms of realizations in both seamless and welded pipes.
Kunal Bubna
Not much on the side of Ciblis we are able to get the order as per the rates we are generally trying to get on the side of building there is a bit pressure but again see we’re trying to add value added and trying to expand few geography and sector which would take care of that in going forward quarters to come.
Radha Agarwalla
Okay. And so in terms of power bidding. So like you mentioned that you’re expecting some orders to come from the power segment in the coming months. So what is the market share for Venus in terms of the the bidding or the the order order win in.
Kunal Bubna
Terms of those bidding they’re very can’t be very specific to that. But again there are very few company which bid for many of this order. So generally the probability of you getting an order becoming good. But again see we already have a good amount of our order book so definitely it will not in the similar quantum each time we build. But again they generally have a criteria where they give orders to 1, 2 and 3. Basically the highest 1 and 2nd and 3rd also is some portion of it. So generally they try to give the kitty to many of them that how everybody get a part part share of those Owners on those tenders.
Radha Agarwalla
Yes, I just wanted to understand. Suppose you’re bidding. If you’re bidding for let’s say 100 worth of projects then in terms of those power bidding would. Is it fair to assume that at least 20 of the bids would be won by winners?
Kunal Bubna
Again it can’t be. I can’t give you any suspicion but it depends scenario. It can be, it can’t be, it can be more than that. Also it’s already gone on many of the pricing and other factors.
Radha Agarwalla
And so the SS5 market demand of 3 lakh tonnes for India, you mentioned that you’re expecting the shift from unorganized to organized. So what percentage of the market is unorganized as of now? And how do you see the mix going forward?
Kunal Bubna
See we believe again because the absolute data of stainless steel is not easy to get from the Indian market because it’s. Those are generally hypothetical example but we again briefed at least more than 20% should be on organized market at least. And we believe out of that definitely shifts have been started and it will keep on shifting toward this organized market.
Radha Agarwalla
Thank you sir, I’ll come.
operator
Thank you. Next question is from Nana Fricha Chaudhary from Electrum pms. Please go ahead.
Richa Chowdhary
Hi sir, thank you for the opportunity. I just wanted, I just want one clarification. Out of the 175 crore capex, how much did you mention for the fittings part and exactly when do we see it commissioning? Is it second half or is it quarter four of this year?
Kunal Bubna
Quarter four of this year.
Richa Chowdhary
And how much would be the capex amount out of 175?
Kunal Bubna
Sort of. Sort of more than 60 crores.
Richa Chowdhary
Okay, thank you.
operator
Thank you. Next question is from line of Bargo from Ambit Asset Management. Please go ahead.
Bhargav Buddhadev
Yeah, good afternoon and thank you for the opportunity. Sir, my first question is that this new plant, the new capex that we are supposed to commission in the fourth quarter, was this a planned for exports or for the domestic market?
Kunal Bubna
No, it would be again it would be mix or both domestic and export.
Bhargav Buddhadev
Okay, and assuming that us also would have been part of this exports, is it fair to say that we can still continue to utilize it despite this tariff which has been announced?
Kunal Bubna
See the current, I think current dairy which had been increased on our product has not much affected. But again there is a lot of confusion about what will happen in the coming forward days or quarters to come. So that is creating a lot of anxiety among all the and the distributors and traders. So that is definitely a factor which need to be considered. But again we are exporting to many many other parts part of the world and we are trying to increase those share and that was the only intent had been always to export to many parts so that if the few of the countries are affected we as a company are not. So we are working on that and I think we’ll able to. We will try to see we are least affected by all these factors coming into being.
Bhargav Buddhadev
Secondly sir, this you mentioned about this new tender for condenser tubes which is likely to be opened up soon. Is it possible to share what could be the quantum of this tender.
Kunal Bubna
Specific out would not be because those are placed on many. There’s a scattered in many of the part. So giving a specific value will not be current. Correct. Currently.
Bhargav Buddhadev
Okay. And lastly sir, with this new facility getting commissioned is it fair to say that our scope in the domestic market especially for the power sector will sort of increase and that would increase our probability of winning more orders from the power sector?
Kunal Bubna
Definitely. See when you win a big order like that as we said we will be soon supplying the same those confidence are built up in the system. Many of the power power manufacturing interrupt you.
operator
Can you please mute your line from your side when you’re not talking? Lot of heavy breathing sound coming from your line sir. Sorry.
Kunal Bubna
Go. Yeah yeah. So when you supply to this definitely lot of confidence are built in the system to the many many other power manufacturing in the country. So I think definitely it should help us to be in more order on that side.
Bhargav Buddhadev
How was the payment schedule for this BACL order? I hope it’s not that working capital heavy.
Kunal Bubna
No, it’s not working capital heavy.
Bhargav Buddhadev
Okay, thank you very much and all the very best.
Dhruv Patel
Thank you.
operator
Thank you. Next question is from nine of the Shah from Sunnyd securities and Finance. Please go ahead.
Devarsh Shah
Hello sir. Thank you for the opportunity. So my first question was respect to the revenue growth. So is the growth mainly because of the volume growth or is it because of the price growth?
Kunal Bubna
No, it’s a volume growth. Okay. Volume growth for the annual what we are considering the knowledge based on the volume.
Devarsh Shah
Okay so just wanted to ask like what would be the price growth? Like will it revise from Q2 onward?
Kunal Bubna
I guess it’s this keep on changing and again the mix of many other things also play. But currently what we are seeing is more to an extent stable currently.
Devarsh Shah
Okay. And second question was like I wanted to get some clarification upon this list plan. So the new plant which is coming so will it be commissioned in Q4 of this year or will it be commissioned in next year?
Kunal Bubna
Q4 of FY26 the new project.
Devarsh Shah
Okay sir, thank you for the opportunity.
operator
Thank you. Next question is from line of Parth Bhav sir from Investec India. Please go ahead.
Parth Bhavsar
Hi sir, I just have one question. So I wanted to understand that you know gradually like you know as we move towards more value added products you know are there and which. Which means that you know you should be handling better grades of SS. So are there any limitations on the piercing side of things? And eventually you would have to move towards a hot extrusion. So basically just wanted to understand the capability of piercing versus hot extrusion in terms of handling higher grades as we move to more towards value added products.
Arun Axaykumar Kothari
Yeah, it’s a very debater matter about the extrusion and the piercing. But right now the lot of technology development has been happening in the piercing or now we are able to do lot of grades as required by the client but definitely some of the grade. Right now we are not to do exclusion facility but as the extra facility requires a very high capex or very high payback period. So once we have the capacity to establish for the high grade of product which will be capital to able to do the better utilization of the extrusion. So definitely they will plan. We are not denying, we will not plan. We may plan. It depends on the circumstances. And then in future capital of the winners if winners will able to develop the product which requires a higher grade or will we don’t able to serve with our existing pacing facility. So then we will plan definitely.
Parth Bhavsar
Fair enough sir. So that answers my question. Thank you.
operator
Thank you. Next question is from the line of Radha from BNK securities. Please go ahead.
Radha Agarwalla
So with regards to the power as per the current product FPUs that you have so what is the pipe demand in terms of metric 10 decrement supply per megawatt of power plant and is there a headroom to increase your product portfolio Increase the content of 5 megawatts of power plant.
Kunal Bubna
See again it’s a very. There are. Number of. There are variable some rule for that. But generally what we generally see it’s a. It’s primarily some rule of 1800 metric ton boiler tubing for 800 megawatt projects is generally what we heard. But again it varies from project to project. Again number of turns and number of other technical factors can also play. Okay and apart from that these are. And apart from that it’s a tubing boiler tubing demand. Apart from that there are demand for condenser Another set of the power plant also.
Radha Agarwalla
Yes sir.
Kunal Bubna
And Hadro. What? I didn’t get that question.
Radha Agarwalla
So I wanted to understand. You mentioned only 800 metric ton of boiler tubes. So including boiler tubes, condenser tubes and all other products portfolios that you have in your current SKUs, what would be this 1800 number look like?
Kunal Bubna
No, again it is not specific one but only what I’m trying to say for each megawatt the requirement what I have says. But again depending on my mix on the order and many other.
operator
Rather do you have any follow up question.
Radha Agarwalla
That was not complete? I just wanted to understand the content of pipe per megawatt of power plant that you can supply with the current product portfolio and with new product introduction. How much can you increase it with the piercing capacity?
Kunal Bubna
You see again it’s a mixtape. Entire condenser tube can go in power plant. My tubing capacity maximum. If I want to give, I can give to power plant. But again it’s all depends here what type I want to be taking an entire order from power plant. So I can give any specific capacity or number that I intend to give to power plant. It’s all depend on the pricing and many other sectors.
Radha Agarwalla
Okay. And in setting the EBITDA per metric ton will be pay in as seamless or can it be even higher.
Kunal Bubna
In case of fitting? Definitely in the year to start you would be requiring the requisite qualification from the customer end. But we generally have seen when you grow grow this business, this can be a slightly higher margin business as compared to the other business what we are currently doing. So those rooms are there because there are less number of fitting manufactured in the country. And again when you supply a product in the entire mix along with pipe and again you are supplying fitting together then you get a better opportunity to get a higher edge on the side of fitting. So definitely should be high as compared to the other after the approvals and all.
Radha Agarwalla
Lastly bookkeeping questions though. How much of the 175 crore capex have been completed till now? How much will you be spending?
Kunal Bubna
FY26 in the in this f entire area it will be standing spending around 120 orders.
Radha Agarwalla
Thank you sir and all the best.
Kunal Bubna
Thank you.
operator
Thank you very much. Next question is from line of Asean Parde from Dam Capital Advisors. Please go ahead.
Aasim Bharde
Yeah. Hi. So just. Just one question. On the US market now that everyone outside has a 50% duty to bring products into the US does that make any local producers in the US competitive? Just wanted to understand how would the landscape change for domestic players or would approvals remain the mainstay? So players like you or even your peers who have been in the US for long their markets technically won’t be affected any color on the US market post tariffs
Kunal Bubna
definitely yes those increased tariffs make the domestic one slightly more but again there are many sizes which goes from India to US are not being manufactured or those entire availability is not there in us. So again that’s why those supply will be keep on going towards us in coming forward quarter also. But again there are further more duties or more things happening that will create a choice and that need to be seen how it pan out.
Aasim Bharde
Would it be viable for us to you know like plan a future capacity in the US just to make us competitive vis a vis inputs in the US market
Kunal Bubna
See putting a facility in US or any other part of the world as a company See not only specific US the company keep on internally working but something comes up for any place in the entire world will definitely update you.
Aasim Bharde
Okay, sure. Thanks. That’s it from my side.
operator
Thank you very much. I now hand the conference over to the management for closing comments.
Arun Axaykumar Kothari
Yeah thanks everyone for attending this conference call. We hope that we are able to give the all the question answers of the all the participants. If any question further question you may contact to our SBA our investment for any further query. Thank you once again.
operator
Thank you very much on behalf of DAM Capital Advisors limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.