Venus Pipes & Tubes Ltd (NSE: VENUSPIPES) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Arun Kothari — Managing Director
Kunal Bubna — Chief Financial Officer
Analysts:
Aasim Bharde — Analyst
Dhruv Jain — Analyst
Romil Jain — Analyst
Pritesh Chheda — Analyst
Bhargav Buddhadev — Analyst
Pallav Agarwal — Analyst
Dhananjai Bagrodia — Analyst
Sonal Minhas — Analyst
Sahil Sanghvi — Analyst
Sneha Talreja — Analyst
Shubham Thorat — Analyst
Presentation:
operator
Sa. It. Ladies and Gentlemen, we welcome you all to the Q3 and 9 months FY26 earnings conference call of Venus Pipes and Tubes Limited hosted by DAM Capital. 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 the date of this call. These statements do not guarantee the future performance of the company and may involve risks and uncertainties that are difficult to predict. Now I hand over the conference to Mr. Asim Baharde from Dam Capital. Thank you and over to you sir.
Aasim Bharde — Analyst
Thank you and good evening. On behalf of Dam Capital, it’s a pleasure to have you all on Venus Pipe Centube’s Q3 FY26 post earnings call from the Venus team we have Mr. Arun Kothari, Managing Director, Mr. Dhruv Patel, whole time Director and Mr. Kunal Bubna, the Chief Financial Officer. We’ll have the opening comments of Mr. Kothari first followed by the Q and A. Thank you.
Arun Kothari — Managing Director
Good afternoon and warm welcome to everyone on the Q3 and 9 month FY26 earning call for Venus Pipes and Tubes Ltd. I have been joined by Mr. Dhruv Patel, our Director, Mr. Kunal Bhubna, our CFO and SGN our Investor Relations Advisor. We have uploaded our Q3 FY26 investor presentation on store exchanges and company’s website and I hope you had an opportunity to go through the same. I will give insight on performance of the economy followed by performance of the company. The Honorable FinANC Finance Minister recently presented her 9th Union Budget outlining the government’s economic plan with a clear focus on growth, investment and financial discipline.
The government focus continues to remain on growth led environment supported by a strong push towards public capital spending. Capital expenditure has been increased to rupees 12.2 lakh crore for FY26 and 27. Further, the recent FTI will also help domestic manufacturing sector underlines the government’s commitment to building better infrastructure and and supporting job creation and encouraging private investment. It also places strong emphasis on the power sector and semiconductor sectors both both of which present meaningful growth opportunity for the company in the years ahead. The budget along with recent GST rate rationalization measures is expected to further strong the economy overall.
The budget reflects the strong policy continuity and steady approach toward building a rebalanced stable economy. On the industry front, the stainless steel pipes and tube industry continues to gain importance compared to other type of steel and pipes driven by its superior quality, durability and long service life. As highlighted in our earlier calls, the while Industry demand is growing. A significant portion of of this demand had traditionally been met by the unorganized sector and import. With tighter regulations and customer placing greater emphasis on quality and long term reliability, we are seeing a steady shift away from unorganized players.
On the import side, anti dumping duty is also supporting domestic high quality manufacturing. Coming to Venus Pipes and Tube, your company has established itself as a trusted brand known for consistent quality across both domestic and international market. Over the years we have built meaningful scale and today stand among the leaders in installed capacity in the country. As we scale up, we also focus on moving up the value chain. By steadily expanding our product range, we have created our presence across several critical industries and improved our ability to serve more demanding applications. This approach has helped us build a deeper customer relationship and positions as well to capture long term growth opportunities.
Our product portfolio has continued to evolve in line with changing market needs and customer expectation. With our recent capacity expansion into value added products, we believe that company is entering a new phase of its growth journey. Going forward, growth will be driven by higher share of value added offerings and increased participation in critical end use sectors. These segments demand a strong technical expertise, consistent quality, product quality and proven execution track record capabilities that take years to develop. Our long operating history, strong customer trust and disciplined execution give us the confidence to scale successfully in this area, clearly differentiating winners, price and tubes and setting the foundation for a sustainable and higher quality growth path.
Coming to our Q3 and 9 months FY26 operational performance of the company. Our growth journey is backed by numbers. We continue to report record quarterly performance with all time High revenue of Rupees 296.7 crores for Q3FY26 growing by 28.3% on a year on year basis. On 9 month basis as well, we have reached revenue of rupees at 64.7 crore in nine months FR26 which is already 90% of our FY 25% revenues. Our domestic performance improved significantly during the quarter with revenues growing 43% year on year to INR 203 crores and more than 15%. Sequencing the domestic demand environment improved meaningfully during the quarter as well as export continue to perform well contributing around 30.31.5% of revenues at INS 93.5 crores on a segment basis for nine months FY26 both seamless and welded pipe delivering strong performance resisting growth of over 27 and 22% respectively reflecting sustained demand and stronger execution across the businesses.
Our capacity utilization remains healthy with newly commissioned capacity ramping up well and contributing meaningfully to volumes supported by a strong order book of approximately INR470 crores. We remain confident of accreting the ramp up of these capacities and driving further growth in the coming quarters. On the CAPEX front, our new capacity for fitting as well as seamless pipe and tubes are progressing well and remain firmly on track. These facilities are expected to come on steel over the coming months and we will further able to cater the high, high value and critical application segments. Overall, we are excited about the year ahead and confident that 2026 will be a year of meaningful growth and driven by the commissioning of the new capacities and our continued expansion into a more value added product portfolio.
With this I I hand over to Mr. Kunal Bugnar, our CFO.
Kunal Bubna — Chief Financial Officer
Good afternoon everyone. We are pleased to share that our company has delivered a resilient performance in the third quarter and nine months. In the December 25 on revenue front, revenue from operation for Q3FY26 stood at rupees 296.7 crore as compared to rupees 231.3 crore during Q3FY25 achieving a growth of 28.3% year on year basis. Revenue for nine month FY26 stood at rupees 864.7 crore witnessing a strong growth of 23.5%. Revenue bifurcation for the quarter was 34% from welded, 60 from stimulus and 6 from from others. Growth in the similar segment was 43% on year on year basis.
In welded segment rested a growth of 13% for Q3FY26 on year on year basis. In terms of revenue, our export sales to robust at rupees 93.5 crore for the quarter compared to rupees 89.1 crore during the same period last year. A growth of 5% on year on year basis. On the EBITDA front our EBITDA for the quarter stood at rupees 48.8 crore as compared to rupees 37.2 crore. In Q3FY25 a growth of 31%. EBITDA margin for the quarter stood at 16.4% compared to 16.1% in the same period last year. On nine month FY26 basis EBITDA saw a growth of 12% standing at Rs.
141.1 crore with margin at 16.3%. On the pad. Fund pad for Q3FY26 is rupees 25.6 crore compared to rupees 18 crore in Q3FY25 a growth of 42% on a year. On year basis pat margin stood at 8.6% for the quarter. During the quarter and nine months we had a one time impact of approx. 6465 lakhs due to increase in gratuity and leave liability on account of changes in labor code. As we look ahead, we are optimistic about the opportunity before us. Backed by disciplined investment, consistent execution and well defined growth roadmap, we are focused on building a stronger Venus brand and raising the bar in the same pipes and tube industry.
With this I would like to open the floor for questions.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Dhruv Jain from Amrit Capital. Please go ahead.
Dhruv Jain — Analyst
Thanks for the opportunity sir. So just one question on the export front, right, so we’ve seen a bit of decline in momentum in terms of growth. So how should we think about exports going forward? And if you could also share, you know what is the split of the order book with respect to domestic and export. So any reason why the export growth is slowed and in the next year how should in your view exports growth come through? That’s my first question.
Arun Kothari — Managing Director
Primarily just to give on the front of order book it’s around more than 30% on the side of export and balance in domestic.
So if you see we had also been exporting to USA in the last quarter we did around more than 20% but this quarter it was around 12% sort of number of the total export. But we exported to USA. So again the percentage had been more than 30%. Yeah, definitely not. It was as in the last quarter passing. But again the order book is there from Middle East, Saudi and also from good order book also coming from Europe. So we seems more than 3035 should be export also going forward and going forward here also. Okay so and with the tariffs and just to.
And just to also mention key in case of USA the recent Terry fees which has been done because see in case of our product the section 232 duty of 50 was enormous same for every country exporting to. But there were a lot of apprehension because there was no predictability about the tariff. What would be the Tariff it can increase any time. So I think that is has been done in the recent two, three days back. So I think as a steel and tube perspective we, we should see order from USA also coming forward in coming quarters.
Dhruv Jain — Analyst
Awesome. So my second question is on the fittings business. So you know, given your capacity comes on stream in the second half. I mean it’s come, it’s come on stream now in the second half. How should we think about it from next year growth perspective in the sense that what is the kind of contribution or any targeted revenue that you have in the fittings business and how should it ramp up in FY28 as well? So a two year ramp up plan in that regard would be very helpful.
Arun Kothari — Managing Director
See as we said you earlier, the investment is roughly in the range of 60 odd crore in our fitting business and we can see a asset turn of around, you can say 3, 3.5 times.
As you rightly said, the fitting business will be coming the end of this March 2026. So from the next year we will be getting the benefit. So in the first year maybe something around 50% of near to 50% of that should be contributing. And in the FY28, I think a substantial portion of the capacity should be utilized from the fitting business.
Dhruv Jain — Analyst
Okay, thank you so much and all the best.
operator
Thank you. Our next question comes from the line of Romil from Electrum pms. Please go ahead.
Romil Jain — Analyst
Yeah, thank you sir for the opportunity. Sir, just wanted to understand a little bit on the value added products. So obviously fittings and you know the other products going ahead will be value added. So can you give a percentage of the entire portfolio how much is now and in the next, let’s say two years how much that can become and hence what impact on the margins can come through at matured utilizations.
Arun Kothari — Managing Director
See, it’s around currently if you see those value added product, the contribution what is coming the business is around 15 to 20%. And going forward, given the expansion, what we are doing on the side of fitting and also on the side of C and other businesses, we believe it should be at least double of that what is currently being contributed.
And on the front of EBITDA it’s 16.4, 16.5 roughly for this current quarter. And we believe it can move from 16 to, it can go up to 18%.
Romil Jain — Analyst
Okay. Up to 18% it can go when, when, when this value it will come in faces.
Arun Kothari — Managing Director
Definitely.
Romil Jain — Analyst
Yeah, because so FY27 definitely improvement will be seen. And FY28 should be the year where the entire Improvement should come. Okay. Okay. And just one more thing. So I think US was a. Was a smaller proportion right now, you know of the overall revenue for us. But with this trade deal and all the.
Do you foresee that US can become a bigger growth driver and hence what are the segments that we will look at, you know in. In that market? So petrochemicals, power. Any. Any sense on that?
Arun Kothari — Managing Director
Yeah, absolutely. With this ease of value for definitely us because we have been exporting to you know USA and first quarter of FY26 was a good portion of our supply to USA and post that Q2 and Q3 number has been deflating. But with this is I. We definitely believe the US should be increasing and see the sector at risk again. We are selling to the.
We are not selling to the end customer there. But as you rightly said it will be mix of chemical and engineering and other sectors.
Romil Jain — Analyst
Okay. So basically this quarter the export growth was lower because U. S contributions came down in the last two quarters.
Arun Kothari — Managing Director
Is it?
Romil Jain — Analyst
Yes. Yes. Okay. Okay. And lastly do you. Can you share some order book details for this quarter? That’s around 470. Out of that more than 30% is export and balance is domestic. Okay. 30% is export. Okay. So domestic is picking up. Right. Any. Any sense on domestic water? How do you look at it the next two three years it’s going good from the perspective the order. The orders are being received and power and power sector, Oil and gas, engineering sector. Okay. Okay, got it. Okay. Thank you so much. I’ll get back in the queue for follow up.
operator
Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone. Our next question comes from the line of pritesh from Lucky investments. Please go ahead.
Pritesh Chheda — Analyst
Can you give the order inflow number for nine months versus nine months last year. Order inflow. Inflow. No, we are as such not a specific breakup. We are giving it. Okay. Total order. You only give order backlog then. Yes. Then how does this stack up vs last year is 470 crores vs last year what should be the number? It was a less than 350 crore. Okay. And my second question is your capacities which is to be commenced operation. It is fitting seamless pipe and condenser pipe or condenser pipe. As standard operations condition pipe started operation.
It will be fitting and seamlessly. What is the status on being order for the condenser pipe capacity? On a capacity perspective we are running around 25 to 30% currently and few of the few of the approvals had been received from power sector for condensity and a few more approvals we are working on and we believe key those approval as and when it is being received. It should expand the capacity utilization for condenser.
Arun Kothari — Managing Director
Further to this. This conductive section is not able to produce only condenser tubes. We also supplied some grade in food process industry as well as in pharma industry also or some of the good tenders in the coming months is floating by the in some of the power sector in India. So we are hopeful. But there seems to be some echo in the background.
Pritesh Chheda — Analyst
Okay, sorry. Yeah, we are anticipating then. Sorry, one second. 1 hello. Now is okay? Yeah. Okay. Okay.
Arun Kothari — Managing Director
We are expecting some new tender which is fled by India power from the India power sector. So which will be open in next two to three months. So we are hopeful the cond capacity will improve in the coming quarter.
Pritesh Chheda — Analyst
Okay. What is the peak utilization number revenue number possible out of the condenser capacity that you put and the fittings capacity that you put?
Arun Kothari — Managing Director
Yeah, we are anticipating. See for condenser if I. If I take a full capacity runner for fitting and value added welded the better name would be better than condenser. It should be running around 350 odd karods. This is for the value added pipes and fittings welded and fittings taken together fittings and the new pipes. Okay. Okay. And how much of this 350crore do you think can come in FY27? In FY27C on the side of seamless we believe we more than 80% of it. But Sim days would be roughly between 2220 to 250 odd crores to which we believe he should be 80%.
And on the side of value added value tube which is 120140. In between that therein we believe it should be around 70% of it. So basically out of 350 crore you will be able to do 250 to 270. That’s how we should interpret. Yes. So then you know have a base product growth rate plus these two new product areas that are going to start larger operations next year. Is it fair to assume that the revenue growth will be much higher than what you know you would have achieved in the last years? Absolutely. So what kind of revenue growth should we look at in FY27? See again on a overall basis what we are currently guiding is at least more than 20% compared to FY26.
What 20%. So is this number only right? Your again this number 80%. And 70 are some on assumption. Definitely it should be higher than that. But what we are currently guiding is more than 20%. Okay. And my last question is why is it that the welded tubes is growing slightly slower. And second, what is the status of you know, capacities or competition in the seamless tube site? So two different questions. See on the side of welded last quarter it was fine. But again in this quarter there has been certain and it is majorly because of the decrease in the sale to usa.
But what we see going forward there should be an order from Saudi and Middle east on the side of building power sector also. So we will be able to ramp up that. And from the perspective of competition, seamless there has been a competition but keeping our keeping backward integration and also tubing business. And also we are coming up with this VA tube and value added tubing business which will cater to hydraulic instrument instrumentation, heat exchangers. So we are slightly better placed as compared to the new capacity or new competition coming in for single seven again along with requisite approval and again presence in Europe and many part of the world.
We seems to be least we should not be that much affected by this competition.
Pritesh Chheda — Analyst
Okay. Okay. I’ll come back if I have more questions. Yes.
operator
Thank you. Anyone who wishes to ask a question may press star and one on the touchstone telephone. Our next question comes from the line of Bhargav from Ambit Asset Management. Please go ahead.
Bhargav Buddhadev — Analyst
Yeah, good afternoon team and congrats on a good performance. My first question is that is it fair to say that the order which BATL is likely to announce in our sort of addressable market is closer to 3 to 4000 crores and of that just about 700 crores have been ordered so far.
Kunal Bubna — Chief Financial Officer
Hello. No still the for the pipe order in the estimated pipe segment order the not only 3,000 crore order is pending with the bell. What are the tender has been issued by the NTPC from NTPC or from Adani Group, the BHEL or other power company. So we are anticipating in the next four to five years almost more than 8,000 metric ton demand will come from the in power sector. So still there are a lot of tender is pending to become in the domestic market. So they will float the almost in every six months or every quarter they will flood the some new tender or this demand will completely maintain at least for 4 to 5 sector.
Further this demand will be also limited to very few players who who are approved in the either B MTPC or Adani Power.
Bhargav Buddhadev — Analyst
So s in rupees crores. How much does this translate? Into almost you can say more than.
Kunal Bubna — Chief Financial Officer
You can say it will be more than 6000cr near.
Bhargav Buddhadev — Analyst
Okay. And are market share as of now in the tenders which have already been ordered is how much sir, almost we.
Kunal Bubna — Chief Financial Officer
Can say right now the water tender has been floated in last one year or market share is approximately 50 to near about 15 to 20%.
Bhargav Buddhadev — Analyst
15 to 20%. Okay. And can this market share increase or given the. Yeah, okay.
Kunal Bubna — Chief Financial Officer
Yes definitely it will increase since we developed the new plant the condenser power or we had not received and not much in the conducive power sector from the power sector which we are anticipating in the coming quarter. So our contribution definitely will improve.
Bhargav Buddhadev — Analyst
And how much of the pending order book of BH is remaining now? It’s around 60. Around 60. 65%. 60. 65% is unexecuted still. Yes, uneducated which should be executed in coming 2/4 to go substantial portion of it. Okay. Secondly sir, is it possible to highlight few key approvals which we might have received maybe in the Middle east or Russia. Any. Any clients which you may want to mention which can be potentially big clients going forward in terms of ordering.
Kunal Bubna — Chief Financial Officer
Yes, definitely in the last quarter we have received some new approval in the from overseas nuclear sector oversee domestic and overseas oil and gas sector and domestic food processing industry or for some more new GR in power sector domestically.
Bhargav Buddhadev — Analyst
And this is from which country? Sir, just I want to keep this secret. So this is primarily uae. That’s. That’s what you are highlighting. Not. Few of the companies are multinational also who are scattered around the world also. Okay sir, thank you very much for your replies and all the worries. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. Our next question comes from the line of Pallavagarwal from Antique Stockbroking Ltd. Please go ahead. Yeah.
Pallav Agarwal — Analyst
Good afternoon sir. So this question. What are the net debt levels at the end of the quarter? It was net debt was around 260.
Kunal Bubna — Chief Financial Officer
Okay.
Pallav Agarwal — Analyst
And do you expect that you know this should be the peak level or maybe because the capex and working capital this can increase slightly for. For the coming quarter. I believe the. We believe it should not increase much. 101020 crore from here. Okay. And any improvement in our working capital levels over the previous quarter? No similar to more or less similar. Okay. And sir, anything on the margin front? So you know we were at about 18% EBITDA margin and that has come down to about 16% level. So with the VAP going up can this go back to about 18% by FY28. Yes, that as we said with the start of this coming quarter this condenser well you added welded then fitting business then also on the side of seamless business wherein tubing and ba tubing business will be there. So definitely in the coming two years to go it should definitely improve from 16.4% to move to around 18%. Okay, yeah, thank you.
operator
Thank you. Anyone who wishes to ask a question may press star and one on the touch tone telephone. Our next question comes from the line of Dhananjay Bagrodia from Alchemy. Please go ahead.
Dhananjai Bagrodia — Analyst
Hello. Hello Mr. Yeah, I just wanted to ask you for the end market, how is the end market doing? Market share S Can you please repeat? So how is the end market growing and how are we taking market share from there? I mean in case of domestic predominantly the supply are mainly to the and market only. So we are definitely getting those shares on the front of export generally it is to the not to the end industry. It is to the distributor trader of those services. And we are seeing demand for power engineering, chemical, oil and gas.
So what I want to understand how much in your estimate would you think the end market is going? We’re just trying to understand and predominantly who will be taking.
Arun Kothari — Managing Director
Your voice seems to be very muffled.
Dhananjai Bagrodia — Analyst
Yeah, absolutely. Okay, can you hear me now?
Arun Kothari — Managing Director
Yes, yeah, comparatively better.
Dhananjai Bagrodia — Analyst
So what I ask you would how is the end market doing? And the company would be taking market share from who predominantly would it be from global players, Indian players who would be taking market share because considering the capacities are themselves only so small and stainless steel easy. The demand is there from power sector wherein the demand was very new which was not there in the system. So from from there we have been able to get an order apart from that again from the domestic players generally the demand admin shift from them from the smaller or unstructured player to two winners.
So these are generally happened in the domestic market. And how in your estimate how much would be the industry growing? It’s a very tough to say those number because the factors are being added. Generally we see a range of 8 to 10% but keeping this demand of power and new industries being added it will be definitely higher than that. Okay, fine. And so maybe I missed this but just in your revenue, in your revenues how much percent coming from volumes and how much would be coming from asp increase? Wrong. No, see volume numbers we are not currently giving.
No, no, not don’t give any numbers. I’m missing broadly from a revenue Growth percentage wise, how much percent would be from revenue and how much would be from esp. Increase from volume growth? It should be at least you can say from quarter in quarter more than 15% and year on year it will be again same sort of number. Okay, so then would it be fair we’ve taken price hike as we move up the chain. So price hikes have been taken or in terms of realization has been improving because of a segment mix change. Not much on the change of segment.
Currently it is again the great mix which we point which also altered the prices of the good. Okay, so then sir, and so then predominantly it would just be we’ve been able to increase revenue of particular items. Would that be fair? Revenue up? Yeah, definitely. The contribution for Seamless had increased. That is Increase the revenue. That is also helping. Okay, fine, understood. Thank you so much.
operator
Thank you. Our next question comes from the line of Sonal Minas from Prescient Capital Investment Advices llp. Please go ahead.
Sonal Minhas — Analyst
Hi sir, this is Sonal Minas. I hope I’m audible. Yes, yes sir. I had two questions. First question was regarding the MAHIL order and the backlog you were talking about and you mentioned to the previous person who’s asking the question, you have around 15% market share. Just wanted to understand like who were the other two, three noteworthy players who basically backed these orders. If you could share one or two names just for understanding the industry and competitive nature that that will be helpful.
Arun Kothari — Managing Director
Giving the name of other pair would not be right. But again generally just to mention you for this forward bidding of BL and all, generally five to seven players are approved currently in the country out of this, we are amongst them.
Sonal Minhas — Analyst
Okay, so isn’t this public knowledge like that who gets what? I don’t see. No, they don’t. It can be available through mail, but not on public. Okay, understand that second question, sir, was with regard to the price realization and the volume growth you were just talking about to the previous gentleman, the kind of realization growth that we’ve seen right now in this particular quarter should essentially materialize into little higher gross margins, little higher EBITDA margins. So directionally are we heading toward let’s say 18% kind of EBITDA margins in FY27, 28 or that’s still a little far off.
Arun Kothari — Managing Director
No, no, no, not, not absolutely far away. You rightly said by FY28 definitely 27 would be here where you definitely be seeing the. For the nine month basis, 16.32 EBITDA margin, it will definitely be improving from here. And by FY28 definitely the target is to reach by around 18%.
Sonal Minhas — Analyst
Got it sir. So just squeezing in a third question. You mentioned about getting approvals in the international market some in Middle East. So wanted to understand what is the lead time of getting these approvals with a particular. Let’s say consultant or let’s a refinery or somebody who’s a client there.
What is the lead time to get in the approval?
Sonal Minhas — Analyst
Again it’s again depend on its client client basis and their comfort level. So sometime it can take you three to five years also sometime keeping your credential and all you can get in less than two years also. But generally the lead times are generally high for getting these approval from these multinational companies. And is it higher in let’s say oil and gas than compared to power? Just for our understanding it’s a more.
Arun Kothari — Managing Director
Time in the nuclear sector. Nuclear sector takes up more time then oil and gas and power. Or normally especially in the case of lead time. Lead time must have normally vary depends on the plan. Normally lead time only the approval submission of the approved paper doesn’t. But the we can consider the lead time on the plan front as well. Your. Your past tech execution and the plan capability. All these things does matter.
Sonal Minhas — Analyst
Sure sir. Got it. Thank you sir. Thanks for answering my questions. Thank you.
operator
Thank you. My next question comes from the line of Sahil Sangvi from Monarch Network Capital Ltd. Please go ahead.
Sahil Sanghvi — Analyst
Yeah. Hi. Thank you for the opportunity. Congratulations for a very good summer. The first question was with respect to cbam. So what we are hearing is that there are already benchmarks in place and there are third party evaluators also. So have we done that evaluation and where do we stand on the liabilities that could come? I understand we don’t have to pay this year but any sense on that front and could that really impact our margins?
Kunal Bubna — Chief Financial Officer
See at the end of December they have come up with a revised calculation and formulas and C4s also we have to take those numbers from our.
Because precursor emission is also need to be considered while calculating the cement value. So we have also taken up with our suppliers. So see each one in the system is working because you say the formula calculation had been revised at the end of this month. So everybody is working and as and when it comes up then we can be able to. But again we are also taking guidance from the entire team is working for that. And what will be our current split as in percentage basis if you can been given the export. I mean how much goes to Europe and how much US and how much middle east see on a nice basis if you see it was more than Europe was around 60, 65% and US was around 20, 25%.
Middle East, UAE and Saudi around 10 to 10, 12% and balance to other countries. Right, right, right, right, right. And any, any kind of benefits that we are getting from the EU trade deal? I mean because from 1st of July there was this quota reduction so there’s. Is there anything in the EU trade deal for us? No, from pipeline to SS we have not seen that. But again this quota reduction is to every country is who are exporting to EU it’s not standalone to India only applicable to everything. Okay, okay, okay. And on a y basis this quarter was there a price improvement or a price reduction sort of improvement only.
Sahil Sanghvi — Analyst
Okay, okay, sure. Thank you. Thank you and all the best.
operator
Thank you. Our next question comes from the line of Sneha Talreja from Nuvama, please go ahead.
Sneha Talreja — Analyst
Hi team, congratulations on great set of numbers. So just couple of questions from my end. Given the US tariff, you know, you know just got finalized. How do we see the opportunities in the US market shaping up even in last couple of years they’ve done so much work especially in Europe, Middle East. So where do you see opportunities for the US market? That’s first
Arun Kothari — Managing Director
see absolutely the opportunity should be there because see as you rightly said we have work on U. S part and that was a time where to get those benefits. But this covering of diabetes has come but with this clear cut ease of terrorists currently and see as I said you are there also section 232 is similar for all the country exporting to USA but as there was no clarity on the side of tariffs that’s why the volume or demand the order was not coming in quantum.
So definitely we believe it should be a better opportunity going forward from USA could touch upon the working capital requirement, how different it is from domestic versus exports market and more in terms of margins. Given that we’ve recently seen repeat depreciation, working capital is more or less similar. It’s not that much changing between domestic and export. But again margin perspective generally when you are establishing this European USA market we generally drive a higher margin. But I said key coming forward quarters I think we should be able to do a better profiting export market as compared to domestic.
But again after you are set up in those market we generally get those benefits.
Sneha Talreja — Analyst
Understood. And lastly on your you know order books currently you’ve seen a great improvement on a quarter on quarter basis from 3.5 to 4.7 odd billion. The incremental order book would be coming in from which areas is it mostly domestic or exports? It’s from power sector and export. Thanks, thanks. Thanks a lot team and all the invest.
operator
Thank you. Our next question comes from the line of Romel from Electrum pms. Please go ahead.
Romil Jain — Analyst
Yeah, thank you for the follow up. So one clarification I just wanted so see we have got new qualifications from from the export market also. So our exports are also anticipated to grow in India also. I think domestic power and all is doing well. So new approvals received. So just want to understand so next year probably you said we’ll grow 20% plus kind of number but you know, beyond that so because next year you will have the seamless capacity also coming in but beyond that let’s say you know, 28, 29 goes towards there. Shouldn’t we face some capacity crunch if at all, you know the demand remains stronger and in context of that do you see the capacities which are coming up by the competition? Can they, you know, gain that market if we don’t have capacity, how does that stack up? If you can just throw some color.
Kunal Bubna — Chief Financial Officer
Yeah, definitely the new capacity after the new capacity expansion will able to do the 20% growth for the FY27 as well as FY28 or we always plan for the in advance for the we see the market. How is the market demand is going on. We are always open to do the capacity expansion but we are also focusing on our cash flow. We want. We don’t want to take the not much debt for the capacity expansion or we want to leverage our position but when it will be required we are open to do capacity expansion. You can see in the almost in last four years we have did the capacity expansion almost more than forex.
So whenever need will arise definitely we are open for that. We are more focused on the growth as well as the balance sheet balance sheet focus and the debt debt focus auto focus on the ROC and roe.
Arun Kothari — Managing Director
So and again to again to mention here see the demand new demand has come from this power center which was not there in the system as we rightly said also so that we also driving see the export geographies. We are trying to capture more. We are expanding our horizon to many part of the world that will also come into play. We are moving our supply towards food processing and other and again see we are also adding a product like shipping generally many of the competitors doesn’t have. We are also adding many of the value added product which generally not many players are there in those horizons.
I Think keeping all the mixed bag, we believe as a company we will able to take it forward also. Okay, so to summarize on this point, probably we are saying that with the capacity coming in and the utilizations are moving up for 27 and 28 probably we should grow at around you know, 20 odd with margins improving plus fittings revenue coming in. And post that if we need capacity we will plan by 27 or 28. So that’s the right understanding. Right. But new capacity. See the company keep on planning that. But if something comes up earlier also we’ll definitely update you.
Correct. Got it. And sir, just one thing on the export side. So obviously in the last one year or two years we have done phenomenal on the export front going ahead. What kind of growth rate can we expect on a normalized basis considering you are getting approvals and all those things? And is export a higher margin business versus domestic? See, it’s not. If you see the current year export it’s not nominal. We will able to go ramp up and further. See again the percentage of the total revenue should be more than 30%. The intent is that currently.
So we are trying that again it’s again depend if there are good margin order equity next four days it can go higher than that also. But the intent is currently at least above 30%. And see when you’re established in this market definitely you earn a better margin as compared to the domestic. Okay, okay. All right. So this year, this quarter, how much OCF we would have generated? If you can give that number currently I’m not having. Okay, okay. Okay sir. Yeah. Thank you so much. Thanks.
operator
Thank you. Our next question comes from the line of Shubham Thorat from Perpetual Capital Advisors. Please go ahead.
Shubham Thorat — Analyst
Thank you for the opportunity. Am I audible? Yes. Yeah. Thank you sir. I recently tracking the company so kindly bear with me. Firstly I wanted to know what is the current capacity utilization in in less and welded segment
Arun Kothari — Managing Director
in case of singles it’s more than 90% and on the side of welded it is more than 60% side.
Shubham Thorat — Analyst
Okay. Secondly I just miss your comments on what how much capex are we currently doing on the fitting and seamless side and what kind of asset turn are we targeting there? And just wanted to ask when this capacity is going to be live.
Arun Kothari — Managing Director
See the capacity of fitting and seamless pipe. A portion of seamless has come but major capacity will be. We are targeting by end of this financial year. So primarily what the capacity we will be live in the coming financial year. That is 26, 27. You mentioned by end of next financial year. Right end of this March 26th. By March 26th and how much capex are we incurring for that and what kind of asset turn are we expecting? See these all capex are on the side of seamless. It is on the side of fittings on the side of condenser.
So absolutely those should be at least more than three three time assertions will be there. Three times. Three times. Yeah. Okay, next you mentioned that our current order book size is around 470 curves and incrementally we expect orders from the power sector and export demand. So I just wanted to ask what is the execution timeline for this current order book size and what is the application of our products in the power sector? See the order size should be typically be between, you can say less than 67 months resolution time for this order book and see the application in power is varied.
These are used for boiler also. These are also used for condenser or power plant. So it’s a mix of using power industry. Okay, okay. And any broad comments on demand situation. And I want to get a general sense on what kind of issues we faced in the last nine months or the past quarter that we are expecting to be relieved upon while going forward. You see a few of the geopolitical issues have been there but with the recent ease of tariff on India by US I think it’s a good sign. Again the EU deal was not directly impacting us but again it’s a sentimental improvement is also there.
So we believe. And also with the demand from power and other sector in the Indian market also keeping all this perspective going forward it seems to be quite positive from here from now onward. Got this final question. I just wanted to. I mean I missed your comments on the countrywide geography mixed that you mentioned in the exports. Could you please repeat that? We said see it was around 60 65% on Europe and 20 25% on the side of US and balance to other countries including Saudi and UAE. How much in Europe? 60, 65%.
Shubham Thorat — Analyst
Okay, thank you so much.
That’s it from my guys.
operator
Thank you. Our next question comes on the line of Pallavagarwal from Antique Stockbroking Ltd. Please go ahead.
Pallav Agarwal — Analyst
Yeah, actually my questions have been answered. Thank you.
operator
Thank you ladies and gentlemen. Due to time constraints that was the last question. I would now like to hand the conference over to the management for closing comments.
Arun Kothari — Managing Director
Thank you all for joining us today. I hope we have addressed all your questions. We remain committed to keeping the investment community informed with regular update on any development in the company. For any further information or queries, please feel free to reach out to us or our investor relations advisor. Thanks, everyone.
operator
Thank you. On behalf of Dam Capital Advices Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.