Zuari Global Ltd (NSE: ZUARIGLOB) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Darshni Desai — Investor Relations
Athar Shahab — Managing Director
Aashutosh Aggarwal — Lead, Strategy and Growth
Nishant Dalal — Chief Financial Officer
Analysts:
Unidentified Participant
Saumil Shah — Analyst
Karan Rajpal — Analyst
Kartik Mehta — Analyst
Vivek Gupta — Analyst
Darshil Jain — Analyst
Varun Mishra — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1FY26 earnings conference call of Zuhari Industries. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference has been recorded. I now hand the conference over to Ms. Darshani Desai from MUFG in time investor relations. Thank you. Hand over to you ma.
Darshni Desai — Investor Relations
Thank you. Good afternoon everyone. And I extend a very warm welcome to all participants on Q1FY26 earnings conference call of Zuwari Industries Limited today. On this call we have Mr. Atar Shahab. Managing Director, Mr. Nishant Dalal. Chief Financial Officer and Company Secretary, Mr. Yadwinder Goyal. Before we begin this call, I would like to give a short disclaimer. This call may contain some forward looking statements which are completely based upon our beliefs, opinions and expectations. As of today, these statements are not guarantees of our future performance and involve unforeseen risks and uncertainties. With this, I hand over the call to Athar Sahab Ji.
Over to you, sir. Thank you.
Athar Shahab — Managing Director
Thank you, Darshani. Good afternoon everyone. On behalf of Zwar Industries Ltd. I warmly welcome all the participants to this call. I am joined today by our CFO Mr. Nishant Dalal and our company secretary Mr. Yadminder Goel and Mr. Amit Romta who is our Chief of Staff. I begin by giving you an overview of our operations and the Sugar Power and Ethanol division. We concluded our operations on the 29th of March this year. Last year we had concluded on the 17th of April. But even then for a financial year it was the highest ever crushing of sugarcane that we reported.
The sugar sales for the first quarter stood at 3.6 lakh quintals which is a little lower than 3.8 lakh quintels that we did last year primarily due to less quota allocation. Highly dominant, we made up for it by higher sugar realization which was up by 4% against 3,864 rupees per quintel that we sold last year. For the same quarter this year the figure was 4,036 crore. We have been showing consistent improvement in our distillery capacity utilizations. And the operations this year are likely to continue until the end of September. We had closed the distillery last year in August itself.
But we are consistently improving our performance. Not surprisingly, in the first quarter itself, the ethanol production is up by 12% against 8,956 kilolitres produced last year. We have gone to 10,019 kilolitres this year. The realization is also slightly up because of a different mix of ethanol and as we speak major RNM CAPEX work in sugar unit is in progress. As you know we are all in the off season and a number of annual maintenance activities are carried out during this period. Moving on, our biggest subsidiary Zuari Intra World is expanding its operations in Hyderabad, Kolkata and now even looking at Bangalore they have got a mandate of 2000 crore project, the DM mandate for a residential project in Kolkata.
This is a very significant development. As I apprised you last time, we are pursuing an asset light investment light model, the development management model where we manage the entire developmental activities for other developers for a fee. And I’m happy to tell you that in the first quarter we’ve got a large project in Kolkata as part of this strategy. Meanwhile, our own Zuari Garden City project phase four is running close to completion. Close to 100 plots out of 156 sold and 15 of them were sold in the first quarter itself. And our flagship project this center is Dubai project is progressing well ahead of schedule and we are targeting completion by February 2026.
In our engineering and construction company Simon India, we are constantly strengthening our execution capacity. I’m very happy to tell you that this company has landed orders of about 100 crores in the first quarter and it is moving towards a digital first EPC strategy. And in that sense it is planning to distinguish itself and all aspects of its project. Execution and project management will be done through the latest digital tools and techniques. Our ethanol joint venture Azwari NBN Bioenergy Private Limited is 88% complete and is on track for commissioning in Q2. As you are aware, we are setting up a 180 klpd grain based distillery in Lakhimpur in joint venture with our partners nbn.
As you are aware we continue to hold strategic investments in Chambal Fertilizers, Zuari Agrochemicals, Mangalore Chemicals and Fertilizers, TEX Macro Rail and engineering and Tex Macro infrastructure and holdings. The value of our listed strategic investments as on 30th of June was 5201 crore. You have probably taken note of the ongoing merger activities between NCFL and PPL which is in a fairly advanced stage. Once completed it will create a very important entity in the fertilizer sector with operations in three coast based locations namely Paradeep, Mangalore and Goa Excluding working capital, the external debt of the company and its subsidiaries was 1846 crore.
And there is a clear roadmap in place for significant deleveraging in the next few quarters. Looking ahead, we expect sugar prices to remain steady supported by lower stock levels that are being projected by various organizations. We expect ethanol prices however, to increase. In view of ongoing demand from the ethanol blending program and the fact that they have not gone up for a significant amount of time. We expect continued momentum in the real estate markets of our interest. We continue to explore opportunities for inorganic expansion in sugar and ethanol. We are building a strong BD pipeline for DiEM mandates in real estate.
And we are trying to embed digital tools in all aspects of our operations across businesses. So I think that’s all from me for now. And I would now invite our CFO Mr. Nishant Dalal to present the financial results. And after that both Nishant and I would be available to take questions. Over to you, Nishant.
Nishant Dalal — Chief Financial Officer
Thank you, Mr. Shah and good afternoon everyone. I will begin by providing a few detailed review of Zwari Industries performance. The revenue from operations of the company was nearly 210.3 crore. Slightly lesser than 214.5 crore in previous year. Because of as already explained by Mr. Shah, lower sales quota which we got for sugar. However, the operating EBITDA for US was nearly 22.4 crore similar to 23.5 crore which we achieved in the previous year. The profit before tax and before exceptional item is at nearly 90 lakh rupees for the Q1FY26 against 1.14 crore in the previous year.
Finance cost of the company, if we talk about it has come by reduced by nearly 3.92 crore on a year on year basis. On a consolidated performance level our revenue from operation has improved significantly to 257.5 crore versus 225.7 crore in the previous year. And the profit before tax and before exceptional item stands at a loss of just 40 lakh rupees as compared to 34.3 crore loss in the Q1 of the previous year. Then on there are a few updates on our subsidiaries and joint ventures. ZWaring Forward India Ltd. Where the income has increased to 27.1 crore against 19.7 crore in the Q1 of previous year.
In Zwari Finsa, our income has grown by almost 20% to 5.9 crore as compared to 5 crore in the previous year. And EBITDA has also improved significantly to 2 crore in the Q1 of current year we saw a strong growth in the OM. Nearly 60% growth. Primarily it is coming from the SIPs. Then we also launched a standardized broking plan and we are building new digital platforms to expand products and strengthen the governance while staying focused on the customer. Then in Dubai Insurance and Brokers Ltd. Our income grew to 4.1 crore as compared to 3.2 crore in the previous year.
And EBITDA also improved from 2.4 crore to 3.2 crore in the current year. It is driven by strong our Q1 renewals. Then we have also leveraged strong digital tools in our insurance booking space also to enhance the client experience and tap into the group network to boost business and market presence. Diwari International Ltd. We have posted a revenue of nearly 54 crore which is up from 23.8 crore in the previous year. While EBITDA has come down to 6.8 crore as compared to 13.3 crore in the previous year. So this is the company where we are trying to venture into healthy snacking and we have introduced five new snack pure chip variants and we have also entered into group commerce platforms like Zepto and Swiggy Instamar with the refreshed packaging for Zari White and Pink salt.
Also the Simon India Ltd. The EPC arm of the company has presented a stupendous performance. So beyond the order book of 100 crore the income also of the company has risen sharply to 15.9 crore as compared to 1.5 crore in the previous year. And EBITDA improving to 1.4 crore as compared to 0.1 crore only in the previous year. In Zwari Management Services Ltd. We have reported stable income of 8.7 crore in line with our last year. And we are offering HR solutions like recruitment and payroll along with business advice services. Also in this company we it is also advancing our digital initiatives including real time tracking, VI dashboards, predictive analytics and integrated platforms to improve key business operations.
Then you have a joint venture with oil tanking joint venture with the Adani Ventures Private Limited Zwari Indian Oil Adani Ventures Private Limited the receipts grew 17% year on year and deliveries increased by 6% supported by robust petroleum product demand. This is all on the part of let’s say subsidiaries performance. We are open for any given day and we are happy to address the queries. Thank you.
Questions and Answers:
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 their touchstone telephone. If you wish to remove yourself from the question queue. You may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while a question queue assembles. We take the first question from the line of Somil Shah from Paris Investments. Please proceed.
Saumil Shah
Am I audible?
operator
Yes, we can hear you Soumil. Yeah.
Saumil Shah
Okay, so good afternoon. My question is on the debt side so we have about 2500 crores of. Debt on our books. So what’s the plan on that? And if I were to look at March 26 numbers how much it will be reduced from 2500 level.
Athar Shahab
Okay, so I will take it up. If we look at the overall debt of the company so the total debt of the company is somewhere around 2300 crore as on 30th June of which our external debt is nearly 1800 crore and we have nearly 244 crore of borrowings from our promoters plus rest is the working capital facility which varies along the year as the utilization changes. Now we are working to deleverage because such a kind of. We do understand such high level of debt will not be sustainable for quite long so we are working at certain monetization events and a few of those other products projects as we have conveyed to you Also our Dubai project is expected to be complete by the 20th of February 26th.
So we expect our returns to come from those projects which will help in leveraging deleveraging the balance sheet and repayment of these debts. Now exactly how much amount that would be will be not able to tell right now. Probably as we go along maybe a quarter down the line we’ll get some clarity and we’ll be able to give. You can say better answer or better numbers on that part. Hope it answers your.
Saumil Shah
So we are not getting the desired valuation because of the debt Only our market cap to debt is. I mean debt to market cap is very high as a shareholder so it is a request that we can reduce the debt and cs.
Athar Shahab
Yes and we are working on you can say that part of our balance sheets and we can assure you that we are very cognizant of it and these this is a topmost priority for the company also to do the delivery ASAP.
Saumil Shah
Okay so from the Dubai project how much revenue? 750 to 800 for this year.
Athar Shahab
See the Dubai project which we are doing in Dubai this is a revenue recognition will happen once the project gets completed but we can tell you that their sales value is. It’s a mega project for us. So and project is fully sold out with the you can say our sales realization in excess of almost 1300 million AEDs there. So that kind of numbers are there already.
Nishant Dalal
Let me just intervene at this point in time the Dubai project will have a top line of 1.3 billion AED.
Athar Shahab
Yes. So that’s a very significant number. And we will repatriate our share of the profits into India and that will, as Nishan said, will very significantly reduce our debt borrowings. Just bear in mind that the aggregate external debt as I mentioned in my speech stands at around 1800 odd crores. So. And the rest is actually working capital which goes up and down depending on the sugar season and taken care of when the sugar business. The third part is debt extended by promoter entities which is about 244 odd crores. So the external debt is really 1800 odd crores.
This will stand very significantly reduced when we repatriate the funds from Dubai. And the exact numbers I think will become clearer as we progress towards that deadline. As I mentioned there is a very clear roadmap to do deleveraging. I also mentioned to you just the value of liquid securities that we hold is in excess of 5200 crores. So I think investors should take heart from the fact that the company is doing very well as far as the operations are concerned. All the subsidiaries are moving forward in their growth plans and posting good results. The subsidiaries have done well and the investments have also done well.
And there is a very clear path for deleveraging now clearly visible in terms of timeline quantum of course. Hopefully by the time we connect with you next quarter we should be able to give you better visibility.
Saumil Shah
That’s very comforting to hear. So my final question, in Simon India we have booked orders worth hundred crores. So can you please give some details what are these orders and by when this will be executed?
Athar Shahab
So these are orders coming in From Paradi Phosphates Ltd. There the company is building the fifth evaporator project and then they have been given a contract to build a sulfur melting system, their TG4 project and a series of projects. I think the good news is that there is growing realization that this company can execute larger projects. It can deliver. Most of these projects have a short time frame for execution. So I expect everything, most of it to be done by the next March 27th itself. So that’s the kind of time frame they are not very long term projects.
And I expect, I think the going forward the pipeline to grow stronger for Simon India both from internal clients as well as external clients.
Saumil Shah
Okay, okay. And if I make squeezing One more question. So on our bio ethanol plant. I mean it would be operational by the second quarter and this quarter. And is it correct?
Athar Shahab
Yes. Yes, we are. We are racing ahead towards the last leg of completion activities. And you know, I think we should be ready and done in the next quarter.
Saumil Shah
Okay. So what sort of revenues can we expect in the first year of operations? And by when you think 180 CLPD will run full capacity.
Athar Shahab
Nishant, can you. Can you answer this question please?
Nishant Dalal
Yes. So see as soon as when we expect to. You can say commercial operations should start A. As soon as let’s say start of Q3. Then it will take a quarter to two quarter of stabilized operations. So full capacity utilization should happen from let’s say first April of 26. So Q1 of Next Financial year should start. You can say plant should be operating at full load and everything.
Saumil Shah
Okay. And by when you think this 180klb will run at full capacity.
Nishant Dalal
I think this is what I exactly told you just now. Commercial operations should start from Q3. And maybe it will take a quarter to two quarter of stabilized operations. So 100 capacity utilization. It may start even from Q4 also. That depends on. But we are very confident at least next financial year the plant will operate at full capacity.
Saumil Shah
That’s it from my sir. Thank you. And all the best.
Athar Shahab
Thank you. Thank you.
operator
Thank you. We take the next question from the line of Karan Rajpal and investor. Please proceed.
Karan Rajpal
Thank you. Thank you for your answers on the Dubai project. I had two questions on that. One is we said the value is 1.3 billion AED. I’m assuming there’s a portion of that that accrues to Zwari Industries. So as part of the development agreement what is the actual revenue that we will accrue?
Athar Shahab
See, for reasons of confidentiality we are not able to disclose our profit share. Karan, I have shared with you the top line which is little in excess of 1.3 billion. Suffice it to say that we are expecting a very decent share of profit. Which we will repatriate. And as I said, I think be patient. I think by the next quarterly call that we have maybe we’ll be able to give a very clear number as to what that figure is. So we’ve been invested with the company for almost a decade now. So I think you know we’ve been very, very patient. You will appreciate, you know why we are a little anxious with these things. But fair enough. Another quarter after a decade is fine. The second question I had was on this MACDO segment. Now one of the main, you know, kind of concerns that have been there with the value unlocking of the company is the absolutely varied kind of businesses that we’ve had over the years. And one of the mandates the management came in with and the commentary that we got was we will essentially, you know, focus on things that make sense for the business.
Zuari Industries as a company and the overall Advent Scope has not really had, you know, a lot of large consumer brands that it has been able to build over the last many years. Even as our other B2B or you know, commodity businesses, we’ve shown extreme competence. Is there a specific reason why we are picking up this segment where I frankly don’t see a right to win and putting both management resources as well as budgets into this. I would like to hear any thoughts that the team can share.
Nishant Dalal
First of all, Karan, let me thank you for staying invested with us and for your patience and confidence in the company and the management. As you can see, I think structurally it’s a company that operates a sugar power and ethanol division. It has a whole bunch of subsidiaries which are primarily into real estate, engineering and construction, stockbroking, management services, etc. Etc. And there’s a ethanol joint venture that has come up. We also operate oil tankage facility at Guayin joint venture and apart from it we hold very significant investments in group companies which have shown remarkable performance.
So all this has improved quite a lot in the last couple of years. If you have been tracking the performance of the company and while I fully agree with, and first of all let me give you some more color on the Dubai project, I think we have been apprising investors repeatedly over the last couple of years about the progress that we are making and physically the structure is complete, the finishing works are going on. We are now planning for handovers and the number that I told you about sales is on the basis of the last units sold recently.
So there are real numbers, there’s a real project and there is real visibility on what is coming in from that project. As I mentioned in previous calls and my interaction with investors, we put the real estate business on the path of asset light investment, light model. We got a project in Hyderabad, we got a project in Kolkata. We are in discussions with several people and we hope that we will build a robust diem pipeline which is development management pipeline. As regards snackpure, I think it is just a small experiment at this point in time. We are already present as a retailer of sugar, particularly in North India.
Zuwari Sugar is A household name in North India and every hotel that you go you will probably find Zuwari sugar pouches. And I think at this point in time this snackpure is just riding on the back of the retail presence and there is no, I would say big corporate structure created or large amount of capital allocated etc. What we are trying to see is that on the back of the distribution network that is already in place, is there something that can be done? And I think as I mentioned earlier, and I repeat, we will do these experiments and if you find that traction is being built we will of course cull these kind of initiatives.
But for the time being I think we will pursue for the next couple of quarters and we’ll keep reporting to you how we are doing.
Karan Rajpal
Fair enough. In one of the previous investor presentations there was a map of the various locations where we have real estate projects that are ongoing. If I remember correctly, one of those locations was in Delhi. It was just notated by a number eight or something and we’ve not really seen, you know, any updates on, you know, what rights we have towards, you know, any property that’s in Delhi and what’s the monetizable value. I just want to be sure that I remember correctly and because that’s not there in the current investor presentation.
Athar Shahab
Any thoughts now or if Karan, let me. Your memory is absolutely fantastic. That parcel of land actually is owned by our associate company, Texmaco Infrastructure Holdings Ltd. How much do we hold Jatin in Texmaco Infrastructure? In Texmaco Infrastructure Holdings Ltd. That company has ownership of valuable land parcels in Delhi. And the one that you saw There was about 9.8 acres of land in the heart of Delhi in Kamla Nagar. And I’m happy to share with you that on the 30th of June this year that company signed a joint development agreement with a consortium comprising Heinz India Real Estate and Conscient infrastructure for developing a fantastic ultra premium luxury property in Delhi.
And the company actually made announcements, it’s all there in the public domain being a listed entity. They also made announcements to the public at large through the exchanges and that project is now progressing well and my understanding is that they have been given time until 31st of March next year to complete all the formalities and the approvals and do the launch after receiving approvals from rera. So that’s very much on track. And I think that company will create a fantastic project in the heart of Delhi and being a shareholder, 30% of course the benefits would accrue to those who Are industries as well.
Karan Rajpal
Wonderful. Sir, my last question and then I’ll give a chance to the others. So we’ve been working towards consolidating, you know, how the group is structured. Since that is one of the big challenges for a value unlock. Over the past couple of years we’ve done, you know, the work on Paradeep and Bangalore. And after the Paradeep ipo, the plant in Goa was. The Zuari Agro plant in Goa was sold to Parabit. And now very recently, we’ve also sold the Mahat plant from Zuari Agro to Mangalore. After this. Given that, you know, most of the standalone operations are Zuhari Agro, perhaps leaving Zuhri about are out, could we look at a possibility where there’s some sort of a reverse merger or some amalgamation? Because from here on Zwariago will become majorly a holding company of our interests in Paradis.
Athar Shahab
See, I think. Karan, first of all, your observation is absolutely correct. And you are one of those astute investors who is keeping a track of the constant reorganization and restructuring that the company is doing to streamline its operations. All that I have to tell you that we are very cognizant of the need to simplify structures and unlock value. And I think at this stage I cannot provide any updates. We are all watching and waiting very eagerly for the MCFL ppl merger to be concluded, which is in fairly advanced stage. And I think that will really consolidate our fertilizer investments in one location.
But I think you should continue to interact with us through this forum and otherwise when we meet investors and rest assured, we are constantly looking at our group structures and trying to simplify things.
Karan Rajpal
Thank you so much for all your answers. All the best to all of you. Thank you.
Athar Shahab
Thank you, Karan. Thank you.
operator
Thank you. Before we proceed with the next question, a reminder to the participants. In order to ask a question, you may press star and one on your Touchstone telephone. The next question is from the line of Adria palace. An investor. Please proceed.
Unidentified Participant
Many of the listed holdings and the real estate that we the shareholders of Zuri Industries own is held within subsidiaries. So I want to know what is the tax consequence of profits generated by the subsidiaries, whether it’s patients or capital gains. To ask who.
Athar Shahab
Can you. Can you repeat the question? And Nishant, can you answer this please?
Unidentified Participant
Yeah. Infrastructure, 20% of it owned by you.
operator
Are not audible in between. Yeah.
Unidentified Participant
Are you able to hear me now?
operator
Yes.
Unidentified Participant
Yes. I repeat again. So, for example Tex Macro Infrastructure 21% is hept by Zuari Industries. But 10% is held by our subsidiary which is Worri International. Now I want to know if text micro infrastructure holdings is sold then what would be the tax consequence to the shareholders of Zuari Industries? Or rather simpler question is will there be a double taxation since it’s held by a subsidiary?
Nishant Dalal
I think it’s a very hypothetical question. We what will be the tax implication of this sale of tax macro holding in the hands of Zwari Industries Ltd. That’s what you are asking?
Unidentified Participant
Yes.
Nishant Dalal
If. Let’s say Zwari International. I don’t think any such thing is contemplated at all. That’s what I’m saying. It’s pretty hypothetical question. I don’t answer that question at all. Because there is nothing contemplated.
Athar Shahab
Mr. Shah. Whether or not it’s contemplated is not the reason I’m asking the question. Because Zuari Industries is a holding company and therefore an investor has to value its holdings net of all applicable taxes. So I want to know whether it will be a double taxation event or a single taxation event. Please entertain my hypothesis.
Unidentified Speaker
Yeah. Hi Jatin. This side just to clear out. It will be a single taxation depending on the long term capital losses. If any Zuhri Industries is carrying on or otherwise. If there are no capital losses we will be paying the normal long term capital gain at the rate of 12%.
Unidentified Participant
Understood? Okay. Okay. Thank you very much.
Unidentified Participant
My second question. Does Zwari industries bear any contingent liabilities for the capital light project management businesses you’ve taken up in Hyderabad and Kolkata?
Athar Shahab
No, we are not taking any contingent liabilities for these asset light models.
Unidentified Participant
Understood. Thank you very much.
operator
Thank you. We take the next question from the line of Yartik Mehta from Versus associates. Please proceed.
Kartik Mehta
Thank you for the opportunity. Your plan to scale ethanol production to 1000 klpd is significant. So could you please share the expected timeline capex involved and whether this will be funded internally or through external sources.
Athar Shahab
Nishant, can you take this?
Nishant Dalal
Yeah, I will take it sir. So our we have set up a platform company called Zwari NVN Internet Bioenergy Private limited. Under which we are setting up our bioethanol fresh ventures. And the first project is 180k LPD distributions. Right now we are setting up and our idea is to scale this business, this platform to a thousand klpd. Now initially our idea was to scale this business within next four to five years. However, a lot of you can say investment in this space are dependent on the guidelines or the policy framework. How it is evolving as well as the macroeconomic environment of the company of the country.
So today if we talk about this is the only project which is under execution as of now. We are evaluating the new opportunities where we can take up the route through the organic manner and few options are in our hand. But when we are talking on the policy regulatory space, as you probably know that green based ethno prices have been revised since last at least two years. They are at the same level while the cost of raw material retirement prices are going up. So you can say as a result of which you can say, taking a long term view as of now on the fresh investment, we are still in the evaluation mode.
So we have not decided exactly when the next project will be taken up. We are awaiting, you can say more clarity from the government on the prices which they are setting up for the ethanol based or grain based distilleries and a long term view on the from the policy aspect perspective that will decide the. You can see the next timelines for our future projects.
Kartik Mehta
Okay, my second question is that you mentioned there is no land sale due to unfavorable macroeconomic environment. So what is the outlook for FY26 target for the landshields.
Nishant Dalal
In this FY26 as of today we are still only in the discussion mode. And you can say we don’t, we believe probably no land sales in FY26.
Kartik Mehta
Okay. So also you know the. How many total phases does Zuari Rainforest have right now? How many total phases does Zuari Rainforest have?
Nishant Dalal
So phase one is already done. Phase two is under evaluation which is on a second phase two.
Kartik Mehta
Okay. Are there any projects lined up after the completion of this projects?
Nishant Dalal
Not exactly.
Kartik Mehta
Okay. Okay, thank you.
operator
Thank you. Before we proceed with the next question, a reminder to the participants. In order to ask a question, you may press star and 1. The next question is from the line of Vivek Gupta from Star Investment. Please proceed. Hello. Yeah, please go ahead. Vivek.
Vivek Gupta
Yes. So my first question is like what is your anticipated share of supply under the national ethanol lending target over the next two, three years? And with 5200 crores in quoted investments, what is the threshold world or the, you know, trigger point for you to liquidate holdings for funding growth projects?
Athar Shahab
See, the way we see India is pretty much you can say on path of achieving the 20 mandate, which was for the FI for this season, 25 season. So we have achieved that part and the current capacities which are, you can say developing on the grain side because sugar, whatever we could do, I think country has already achieved the on the sugar part. The next wave of growth has to come from the green based distilleries and with the government getting to achieve 30 the next stage by 2030. So there is. You can see we see tremendous growth opportunities on the grain based side for the ethanol space.
Now a lot of this is as I just explained in the previous theory, a lot of this will be dependent on the clear policy guidelines more so on the pricing than how the government is probably taking care of the supply chain aspect as well as making you can say availability of the feed stocks at remunerative prices. So certain those policy guidelines clarity from the government decide you can say the next you can say achievement of maybe 30% of the blending. A lot will be dependent on that by when it will happen. It’s very difficult. I think I will not be able to.
Will not be able to comment on that.
Vivek Gupta
Okay. Okay. So I just wanted to know how do you plan to optimize sugar levels given the coated based allocation system and also do you expect any relaxations from the government in upcoming quarters?
Athar Shahab
In my opinion see the current quota system of the government that has been able to manage you can say considerable. You can price levels in the country as well as you can say it has been able to support the industry also by avoiding an egg glut of the sugar when the season is there and then you can say then shortage in the off season period and etc. And I think when with the diversion of the sugar which has now been allowed by the government towards the ethnol so the integrated sugar units they will be pretty much you can say able to make the best use of the controlled mechanism of co sales as well as diversion towards ethanol and they will be able to keep their revenue as well as their profitability in a better shape as compared to independent units.
I believe the on the government side if we see talk about given the current environment of the policy, we don’t foresee any change in the government policy of doing away with the quota system. We have not heard of anything the same system is expected to continue.
Vivek Gupta
Okay. Okay. So see. I see. What I see is there is growing criticism and concern being raised on social media platforms firms which is regarding the harmful effect of ethanol blended petrol on existing car models. So there was also clarification from the government. Yes, in the event, in the event concern. If that concern escalates and the blending program is rolled out slower than anticipated, how do you see that will affect the company?
Athar Shahab
See we provide a very modest level of supplies to the government. I think at 125klpd that we are supplying or even the 180klpd that we will do. That’s a very small, tiny fraction of the whole thing. I think broadly the plan is on track. The goals of the government are clear. There are clear savings that have been achieved by the government both in terms of cutting the GHG emissions as well as saving on forex output and increasing farmer incomes. If you see the whole thing is resting on three very important pillars. There is a need to communicate with the customers better.
And I think, I’m sure the kind of feedback that is coming in from people at large will help in generating a better environment of acceptability. And I see no reason why we should get concerned about the long term prospects of our ethanol business.
Vivek Gupta
Yeah. Okay, got it. Thank you sir.
Athar Shahab
Thank you.
operator
Thank you. The next question is from the land of Darshil Jain from RJ Investor . Please proceed.
Darshil Jain
Hello. Am I audible?
Athar Shahab
Yes, Darshan. Yeah, yeah.
Darshil Jain
Thank you for taking my question, sir. So I have a couple of questions. Firstly, the plan to scale ethanol production to 1000 klpd is significant. So could you share the expected timelines and capex involved and whether this will be funded internally or through any external forces?
Athar Shahab
And I think I just addressed this query in the previous session. I think I just address the same question from another participant. Let me just reiterate. We have a stated plan of going up to 1000klpd in our joint ventures, NVN Bioenergy Private Limited. As part of that plan we are setting up 180klpd facility. The idea was that we will generate the. In fact the time frame, the first question time frame is five years. The second thing you spoke about, about investment, all of it, whatever we need will come from internal generation from various other businesses. But the key point that Nishant mentioned is very important that there are things to to change in the regulatory environment.
First of all, the feedstock prices have significantly risen in the last couple of years and there is no commensurate increase in the price of ethanol, grain based ethanol. And I think from every forum the manufacturers are requesting the government to take a look and make the prices realistic. And I think we are very cognizant of that fact. So any substance sequent commitment of investments into this will depend on these couple of triggers. So when Nishant said that we are evaluating, he says of course we have a number of opportunities lined up. But the real investment decisions will come when we see some of these triggers coming in from the government side.
Darshil Jain
Understood, sir, understood. Secondly, the centric is Dubai now 79% complete and fully sold. Can you elaborate on the specific types of new premium project being evaluated in Dubai post completion?
Athar Shahab
Right now we are only looking at, you know, preliminary set of opportunities. But there’s nothing concrete that I can talk about. Our focus in the last few quarters has been in India. In the markets in. In Bangalore, Hyderabad and Kolkata. Where we have made some progress. As and when we do something in in Dubai, we’ll let you know.
Darshil Jain
Understood, sir. And we can see that DM revenues in Rowari Infrawar rose sharply on year. On year basis. What is your target pipeline size? Mainly in Bengaluru, Hyderabad, Kolkata for FY26. And how much of that is already contracted? If you could throw some light on that.
Athar Shahab
See, I think the Hyderabad project is worth about 2000 crore. Likewise the Kolkata project is also about 2000 crore. So 4000 crore worth of projects gross development value. And there is a percentage of DM fee that we will get. Have we disclosed that in the. So there is a percentage of the top line that we get. And someone asked a question about contingent liabilities. There are none. We only provide fee based services to our clients.
Darshil Jain
Understood, sir. And lastly with Keynes, with gains due fully cleared by me. How is the cost of raw material procurement trending this season compared to the last year?
Athar Shahab
Nishant, can you take this please?
Nishant Dalal
Yeah. So your theory is on. Can you repeat the question please? Can you repeat the question?
Darshil Jain
Yeah. Yeah. So actually it was about the change due which was fully cleared by me. So how is the cost of raw material procurement trending this season? When we compare to the last year.
Nishant Dalal
We have not done any procurement ourselves. You are talking about cane procurement. Yeah. Okay. Procurement cost has remained same, almost same. There is, you can say fewer change. Which comes only primarily on account of cane development activities which the company takes. Otherwise, cane prices are fixed by the government, state government. And they have remains at same level of 370 rupees per twinter for last year as well as for current season.
Darshil Jain
Understood, sir. Thank you. That’s all from my side. And thank you for clarifying the first question. I’ll join the queue later. Thank you for the quarter.
operator
Thank you. The next question is from the line of Varun Mishra from SK Associates. Please proceed.
Varun Mishra
Hi. I had a couple of questions. So like. So what is the outlook on the power generation days like in terms of the upcoming quarter. It mentions the lower operation days like which cause a lower sales output overall. So what’s your outlook on that?
Athar Shahab
Well, you. We are discussing about the power export. Right. Lower power export See, in sugar we run the integrated operations and power is a kind of byproduct. So co generation happens and we export the surplus power. Since my sugar operations in currency sugar season which is in 2425 it ended on 29th of March. So my exportable power also again was not that they available that much as compared to previous year when the sugar mill was running till 17th of April. So we could generate more power also and export the power. In the Q1 of previous year as compared to this year it has been much lesser.
So that is the only reason it’s all driven by you can say the sugar season period, how many days we are operating.
Varun Mishra
All right sir. And so like given the zero gain crushing and subsequently like no sugar production for this quarter as you mentioned. So like what is the pending stock. Of sugar which we have like as of now and with the crushing operations coming like in Q2 about like how would like if you could quantify that?
Athar Shahab
So we have enough sugar stock available and based on the sugar stock the government allocates the quota also. So we sell it and the next sugar season should start at towards. You can say probably by mid of. Towards end of October for us. So when again the sugar production start? Want to know exact sugar Stock as on 30 June?
Varun Mishra
Yes, so that would be great. I think we’ll come back on that. Okay, I’ll have it. Also like this one last question of mine. So you received something. I tell you that the Stock as on the 30th of June is around 6 lakh 1 those. Okay. All right. And so this is the last question from mine. So like can you please provide some. Color on like what’s the like on higher, higher EBITDA lodges in the real estate division. Like were there any one off expenses or like was it like what is it? Is the spillover from the previous quarter anything like that?
Athar Shahab
I am on losses. Higher losses in. The real estate division. The higher EBITDA losses is if I tell you it is basically because of the reasons that they are having exchange losses. Exchange losses. They have some IGDs that they have given to their group, our group companies, foreign companies. So they have recognized some exchange losses resulting in their EBITDA is down. However, on an operational fund they are on a higher side because they have recognized DMPs in this current quarter. All right. This is just a temporary. Because of the exchange, no investment that has been made into in Dubai entities is in the form of debt and that investment is denominated in foreign currency. So as and when the currency changes the value, you will see some impact coming in the P and L. That’s what he’s referring to. In the past, I’m sure you have shown significant gains as well on that item.
Varun Mishra
All right, that’s all from my answer. Thank you. And all the best, sir.
Athar Shahab
Thank you.
operator
Thank you. Ladies and gentlemen, due to time constraints, we take that as the last question and would now like to hand the conference over to the management for closing comments.
Athar Shahab
Okay, thank you, everyone, for joining this call. We appreciate your participation. If you have any questions, please feel free to reach out to us and our investor relation advisor, MUFG ir. Thank you, everyone. Thank you. I would like to add that we thank all the investors analysts who joined this call today and we will continue to. I assure you that we’ll continue to engage you every quarter and try to improve both the quantum and the quality of information that is shared with you. Thank you very much for being with us today.
operator
Thank you. On behalf of Zuhari Industries. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.